In 1995, the mainland side, under various pretexts, delayed the Second Koo-Wang Talks, resulting in a three-year break in exchanges and negotiations between the Straits Exchange Foundation (SEF) and Association for Relations Across the Taiwan Straits (ARATS). After a sustained effort by the Taiwan side, SEF-ARATS contacts were finally reestablished in early 1998. Chairman Koo Chen-fu led an SEF delegation to visit the mainland on October 14 that year. The visit produced a consensus on four items, including an invitation for ARATS Chairman Wang Daohan to visit Taiwan. The SEF promptly began making preparations for Chairman Wang's visit.

　　On March 17, 1999, ARATS Deputy Secretary-general Li Yafei led a delegation with Zhou Ning to visit Taiwan for talks with the SEF on Chairman Wang's Taiwan visit.

　　During talks between the two sides on March 18, SEF Deputy Secretary-general Jan Jyh-horng presented specific ideas on Chairman Wang's visit. However, the mainland side made no response, though it proposed that the SEF and ARATS jointly hold a "forum" or "symposium." After the consultations, the two sides simply agreed that Mr. Wang's visit would be scheduled for fall that year. During a meeting with Secretary-general Li and other ARATS representatives that afternoon, Vice Chairman Shi Hwei-you emphasized that in order to strengthen dialogue, the SEF and ARATS should carry out dual-track negotiations, and that talks at the department head level could be held in April on repatriating illegal immigrants and other issues.

　　After the March 18 SEF-ARATS preparatory meeting, the SEF sent a letter to ARATS on April 2 informing that it would send personnel to the mainland at the end of April for dual-track talks. However, since Zhu Rongji was visiting the US over NATO's accidental bombing of the PRC embassy, ARATS delayed sending the invitation until May 26. After several telex exchanges, arrangements were made for Deputy Secretary-general Jan to lead a delegation to the mainland on June 27.

　　Discussions began on June 28. The two sides reached consensus on the Chairman Wang's entry to and exit from Taiwan, land route visits, and arrangements for the Second Koo-Wang Meeting. However, it was left to the SEF and ARATS chairmen to decide on the specific time, itinerary and persons involved in the meetings. Regarding exchange groups, the two sides agreed to promote exchange visits by a Taiwan legal group and agricultural group in July and August. Deputy Secretary-general Jan also formally invited ARATS Secretary-general Zhang Jincheng to lead a delegation to Taiwan.

　　While the SEF was preparing for SEF-ARATS exchanges based on the aforementioned consensus, the mainland side declared that there was no longer any basis for SEF-ARATS exchanges following President Le Teng-hui's statement in a July 9 interview with a German newspaper that the two sides of the Taiwan Strait have "special state-to-state relations." The mainland side then unilaterally broke off exchanges and contacts between the SEF and ARATS and refused to further discuss arrangements for Chairman Wang to visit Taiwan.

　　As the mainland side ignored the historical and legal issues of political separation across the Taiwan Strait, the SEF continued to appeal to the mainland side to face up to the objective cross-strait status quo with pragmatism and mutual respect. It also stated its position to continue constructive dialogue on creating the basic conditions for Chairman Wang's visit to Taiwan. It urged the mainland side to not let its hegemonic attitude affect benign cross-strait interactions. Under the principle of mutual benefit and protecting the dignity of the Taiwan side, the SEF also would continue to promote arrangements for Chairman Wang's visit so as to encourage benign cross-strait interactions and exchanges.