The announcement came as President Chen Shui-bian cautioned against China's rapid military buildup and called for the purchase of more advanced weaponry from the United States, the island's leading arms supplier.

The planned manoeuvres codenamed "Han Kuang 23" (Han Glory) will be held between April and May, the ministry said.

Drills on the islands of Kinmen, Matsu and Penghu and in southern Pingtung county would aim to prevent enemy landings while exercises in the eastern county of Hualien would focus on defence of the airport there, it said.

"Hopefully this year's exercises could be done in a more practical way, like in a war," defense ministry spokesman Major General Wu Chi-fang said, adding that details have yet to be finalised.

China considers Taiwan a part of its territory and has repeatedly threatened to invade the island should it declare formal independence.

In a speech to the American Chamber of Commerce in Taiwan Tuesday, President Chen said China's military buildup posed a threat to Taiwan and the region.

"In the face of the fast military expansion of the authoritarian-ruled China... the arms buildup has exceeded its self-defence needs and seriously menaced the neighbouring countries," Chen said.

"As China is one-party ruled, and in order to divert its internal conflicts, it may launch an invasion. Such risk must not be ignored," he said.

China recently announced it would increase its military spending 17.8 percent to about 45 billion US dollars in 2007.

Chen assured that Taiwan would beef up its self-defence capability while renewing a pledge first made in 2000 that he would not declare independence, change Taiwan's official name as the Republic of China or seek a referendum on independence.

Defence Minister Lee Jye said last week the island needed to buy more advanced weaponry to counter the threat from China's rapid military buildup, which he said had seen Taiwan gradually lose its air and naval superiority.

Lee said China had stockpiled more than 900 ballistic and cruise missiles aimed at the island, with the number increasing at a rate of 75 to 100 a year.

Washington has expressed concern about China's hike in military spending, warning it was "inconsistent" with Beijing's policy of peaceful development.

Tensions between Taiwan and China have escalated since the independence-leaning Chen Shui-bian was elected president in 2000. He was narrowly re-elected in 2004.

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