Chinese mainland has noticed reports about the "corruption" issue, Li told a Taiwan reporter at today's news conference. "The problem should be solved by Taiwan people."

Prosecutors in Taiwan said earlier that they could indict Taiwan leader Chen on charges of graft and forgery of documents in connection with the secret fund, but as he was immune from criminal charges and a formal indictment against him would have to wait until the end of his term in 2008.

Meanwhile, Chen's wife Wu Shu-chen was accused of taking 14.8 million New Taiwan dollars (US$450,000) from a special fund in 2002-06. Chen said in a televised prime-time speech that he is willing to resign before his term is up if Wu is convicted.

Li said: "The Chinese mainland will work hard to improve the cooperation and communication with Taiwan, promoting stable and peaceful relationship between the two sides."

Li reiterated that the mainland resolutely opposes activities that lead to Taiwan's independence and doesn't allow anyone to split Taiwan from China.