Beijing  - Chinese Premier Wen Jiabao on Thursday hailed "major breakthroughs" in dialogue with Taiwan and reaffirmed the ruling Communist Party's commitment to working for a peace agreement between the two sides.

"Positive changes occurred in the situation in Taiwan and major breakthroughs were made in cross-Strait relations," Wen said in his opening speech to the annual National People's Congress, the party's nominal parliament.

China is "ready to make fair and reasonable arrangements through consultation on the issue of Taiwan's participation in the activities of international organizations", he told some 3,000 NPC delegates.

"We are also ready to hold talks on cross-Strait political and military issues and create conditions for ending the state of hostility and concluding a peace agreement between the two sides," Wen said.

"We are convinced that, with the concerted efforts of the people on both sides of the Strait, we will achieve complete reunification of the motherland and the great rejuvenation of the Chinese nation," he said.

His remarks echo those of state president and party leader Hu Jintao in a new year message to Taiwan.

Hu made a six-point proposal including talks on a peace agreement, a military security mechanism, and flexibility on Taiwan's participation in international organizations "as long as this does not create a scenario of 'two Chinas' or 'one China, one Taiwan'."

Chinese analysts said last year's agreements with Taiwan on trade, tourism and direct flights, shipping and mail links were a small step on the path that the government hopes will lead to eventual unification with the island state.

Relations have improved since former president Chen Shui-bian of the Democratic Progressive Party left office and Ma Ying-jeou of the Kuomintang (KMT or Nationalist) party took power last March.

China has also toned down its rhetoric since Hu took over the leadership of the party in November 2002 and the state in March 2003.

In another sign of warming ties on Thursday, Wen again avoided mention of the threat of force against Taiwan.

The two sides split at the end of a civil war between Communist and Nationalist troops in 1949. (dpa)