TAIPEI, TAIWAN, JULY 4 -- A conference of scholars and politicians from both the ruling party and the opposition has reached agreement on a range of proposals for making the Taiwanese government more democratic.

While there was a consensus that change was necessary in one of the most criticized aspects of the system of government -- that of choosing the president through an electoral college -- there was no agreement on how radical any change should be made. The electoral college has been attacked as concentrating too much power in the hands of its members, an aging group of legislators who fled mainland China at the time of the communist victory there in 1949.

But the agreements reached today would make it possible for the opposition to gain control of the legislature for the first time since it was established on Taiwan.

{President Lee Teng-hui told the 140 delegates to the National Affairs Conference that he would back their recommendations, the Associated Press reported.

{Opposition leader Chang Chung-hung said, "We have just had a peaceful revolution to gain democracy. We can now organize a new government governed by law rather than by a few people."}

The week-long conference, which ended today, comprised members of the ruling Kuomintang, or Nationalist Party, the opposition Democratic Progressive Party, political dissidents and former political prisoners.

Lee called the meeting last March after students and opposition groups charged that the elections that put him into office were fraudulent.

The protests focused public attention on Taiwan's unusually complex constitution and on a number of senior legislators who select the president yet have not faced election in more than four decades. A judicial ruling last month set the end of 1991 as the retirement date for these senior government officials.

This will mean that residents of Taiwan will choose the majority of representatives in the next election. The Nationalist government, saying it represents all Chinese, has not allowed native Taiwanese to vote for a majority of seats in the legislature and electoral college.

Despite endorsement by liberal Nationalist Party members, a proposal for the popular election of the president remains controversial. Senior Nationalist officials insist on retaining an electoral college system that constitutional scholars say would help protect the party against the unpredictable outcome of a direct, popular presidential election. Eighty-five percent of the island's population is native Taiwanese, but Chinese mainlanders continue to dominate the senior ranks of the Nationalist Party.

Besides registering widespread dissatisfaction with the presidential selection process, the conference members supported, in principle, the reorganization of the provincial government, the direct election of the provincial governor and reinstituting mayoral elections for the two largest cities, Taipei and Kaohsiung.

There was no consensus on the timing of national elections, nor on how to streamline the government under a substantially revised constitution.

The conference also failed to make much progress in discussions on relations with the Communist government in Beijing. The delegates, while urging more trade and cultural exchanges with the mainland, said China must end its policy of trying to isolate Taiwan diplomatically before reunification talks can be considered seriously. {Taiwan increases business investments throughout Asia. See Page D1.}

According to political scientist Kau Ying-mau, there was support at the meeting for Lee's proposal of "one country, two governments" as a framework for any future dialogue with Beijing. Kau said Chinese leader Deng Xiaoping's concept of "one country, two systems" required Taipei's conditional surrender to the mainland China authorities, whereas Lee's formula offered equality between the two rivals.