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This paper examines recent modifications in American policy toward the Republic of China (ROC or Taiwan). It contends that, while the George W. Bush Administration may have carried out a significant readjustment of US policy, available evidence suggests that it will not endorse any major upgrades in ties with Taipei during the foreseeable future. Like previous administrations, the Bush Administration now recognizes the value of engaging the People's Republic of China (PRC). This development holds important implications for the future trajectory of America's relations with Taiwan and the PRC and for peace and stability in the Western Pacific. [ABSTRACT FROM AUTHOR]