"China has made it clear that it wants outsiders to leave this problem to Taiwanese and themselves," Lee told the Associated Press in an exclusive interview Jan 22. "They (China) have told us we are not family, so please stay out," Lee said.

Some speculated that Lee was carrying a special message from Chinese leaders when he visited Taiwan last September. But Taiwanese President Chen Shui-bian said after the visit that Lee was there to discuss trade and business alliances, and was not a "mediator" or "emissary."

Lee is credited with arranging a historic 1993 meeting between envoys from Taiwan and China in Singapore. The city-state has an ethnic Chinese majority and enjoys good relations with both Taiwan and China.

Taiwan and China split amid civil war in 1949. Beijing has in recent years stepped up its threats to use military force if Taiwan refuses to eventually reunite with China.

During his interview, Lee also said Singapore was "happy" with new US President George W. Bush "because he is for free trade." But he said that if Bush goes ahead with plans to build a national missile defense system, it could upset the balance of power in the Asia-Pacific region.