Taiwan says reaches agreement with China over fishermen's deaths

TAIPEI (Reuters) - Taiwan reached an agreement with China on Tuesday over the deaths of two Chinese fishermen in a maritime incident following months of negotiations, a move that could tone down tensions in the sensitive Taiwan Strait.

Taiwan's coast guard said a settlement had been reached for the families of the fishermen, who died while trying to flee after their boat entered prohibited waters.

"An agreement was reached during the negotiation today, thanks to continuous efforts made by both sides of the Strait," Taiwan Coast Guard Administration Deputy Director-General Hsieh Ching-chin told reporters in Kinmen.

"The both sides will actively implement the agreement as soon as possible," he said, adding there was "good atmosphere" at the meeting. Hsieh's comments were broadcast live.

China claims democratically governed Taiwan as its own territory, over the island's strong objections, and has stepped up military activities near it in recent years, with almost daily incursions into air defence identification zones.

China's coast guard began regular patrols around the Taiwan-controlled Kinmen islands close to its coast since February, after the death of the two Chinese fishermen.

Taiwan has in recent months driven away Chinese coast guard boats that repeatedly entered its prohibited waters. It says China has been using "grey zone" tactics that stop short of actual combat to test and pressure Taiwanese forces, including regular patrols near Kinmen.

In July, Chinese officials boarded and then seized a Taiwanese fishing boat operating near China's coast during China's no-fishing period, and took it to a Chinese port in a further escalation of tensions.

(Reporting By Yimou Lee and Jeanny Kao; editing by Miral Fahmy)