There has long been problems in relations across the Taiwan Strait. This can be viewed from the various responses to President Lee Teng-hui's declaration that cross-Strait relations should be handled on a "special state-to-state" basis. The possibility is low for the two sides to improve their relations if they do not take into consideration a number of facts. First, cross-Strait relations are not to be decided by any side but by the development of the two sides as well as the world as a whole. Second, the failure in setting a relatively acceptable position in mutual relations has created many complex problems. As the two sides respectively have their own realms of jurisdiction, Taiwan and mainland China should try to devise a workable method to handle matters through negotiations. Third, interaction between the two sides should follow new rules of the game given the changing international situation. Fourth, military confrontation between the two sides is likely to continue before both sides can build up mutual confidence. Therefore, Taiwan and mainland should refrain from entering into conflict with each other, but rather seek to create more opportunities for mutual cooperation. Finally, while reconstructing their relations at the turn of the new century, the two sides should work for a common goal in line with global developments.