BRUSSELS, March 6 (Xinhua) -- The European Union (EU) said Thursday that the "referendum on UN membership" pursued by the Chen Shui-bian authorities in the Chinese province of Taiwan would foment cross-straits tension.

      "The EU has a significant stake in the maintenance of cross-strait peace and stability," a statement by the EU Presidency said, reiterating its one-China policy and the position that "the Taiwan question must be solved peacefully between the parties concerned."

      The statement added that there should be "no recourse to unilateral action, destabilizing initiatives or coercion by either side."

      The EU expressed its concern over the decision in Taiwan to proceed with "the proposed referendum on joining the UN in the name of Taiwan."

      "The proposed referendum would risk increasing cross-straits tension, to the potential detriment of all concerned, including the people of Taiwan," the statement said.

      "The EU continues to encourage both sides to work to promote dialogue, practical cooperation and confidence-building," it added.