TEMPTED by the prize of a historic visit to China by Pope Benedict XVI, the nation’s leaders have authorised a renewed effort in confidential discussions with the Vatican to heal their rift and inaugurate diplomatic ties.

The talks have intensified over recent months, leading some diplomatic observers in Beijing to believe the Chinese may be seeking to announce a deal before the Olympic Games in August.

Liu Bainian, the de facto head of Beijing’s official Patriotic Church, has said on several occasions that he would like to welcome the Pope to China once an agreement has been reached.

While the Vatican says it has received no formal invitation, observers say Liu’s words would have been uttered only with approval from the highest levels.

The announcement of mutual recognition and a papal visit would be a propaganda coup for China. It would counter the negative publicity that has stunned Beijing recently, culminating in the decision by Steven Spiel-berg, the film director, to end his involvement with the Olympics over China’s policies in Sudan.

“The contacts are going ahead and we are somewhat optimistic,” a senior Vatican official said

http://www.timesonline.co.uk/tol/news/world/asia/article3382290.ece