Lien Chan, honorary chairman of the Chinese Kuomintang Party (KMT), is preparing for establishing a Cross-Straits Peace Foundation, some Taiwan-based media reported Monday.

Chang Jung-kung, deputy executive officer of the Kuomintang Central Policy coordination Committee, was quoted as saying that Lien has handed over his application to the Taiwan Authorities.

The fund-raising is quite smooth for Lien, thanks to the assistance by Lien's friends and individuals who are devoted topeace across the Taiwan Straits, Chang said.

The foundation will be a new channel of fund-raising for the money-tight Kuomintang, who is now spending lots of money in promoting exchanges with the Communist Party of China, according to Chang. The foundation is expected to help the KMT and its brain tank to boost cross-straits peace, he noted.

KMT Chairman Ma Ying-jeou spoke positively about Lien's efforts to build up a Cross-Straits Peace Foundation. Ma said thefoundation is a good thing that it could help promote peace across the straits.