Taiwan has purchased dozens of new jet fighters and all school children learn to fire an M16 as part of their curriculum. President Lee Teng Hui appears at the launch of non-government TV station Formosa. China accuses him of being a closet pro-independence man. Formosa boss Dr Chai is behind the anti-China movement which campaigns on Taipei's streets. Despite Taiwan's impressive weaponry, shots may never be fired in anger across the Taiwan Strait. Taiwan has one of the largest container ports anywhere and China may succeed in reclaiming the island through economics. China and Taiwan need each other for trade. Examines China's attempts to lure Taiwan with the power of the dollar.