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(Fixes name of HRW researcher Kine)

* State Department says activist, family en route to U.S.

* Dramatic escape, stay in U.S. embassy cause diplomatic

rift

* Relatives remain in northeastern Chinese village

By Maxim Duncan and Sui-Lee Wee

BEIJING, May 19 (Reuters) – China allowed a blind legal

activist, Chen Guangcheng, to leave a hospital in Beijing on

Saturday and board a plane bound for the United States, a move

that could signal the end of a diplomatic standoff between the

two countries.

Chen’s escape from house arrest in northeastern China last

month and subsequent stay in the U.S. embassy caused huge

embarrassment for China and led to a diplomatic rift while U.S.

Secretary of State Hillary Clinton was visiting Beijing for

talks to improve ties between the world’s two biggest economies.

The U.S. State Department said he was en route to the United

States, along with his wife and two children. He boarded a

United Airlines flight bound for Newark.

State news agency Xinhua said Chen had applied to study in

the United States under legal procedures, in the first official

account of Chen’s activities, but made no mention of whether he

had left the country. The Foreign Ministry said this month that

Chen could apply to study abroad, a move seen as a way of easing

Sino-U.S. tensions on human rights.

Chen’s friend, Jiang Tianyong, cited the activist, one of

China’s most prominent dissidents, as saying that he and his

family obtained their passports at the airport hours before he

was due to board a flight.

“I’m obviously very happy,” Jiang said. “When he boards the

plane, he can finally say: ‘I’m free’. At the same time, I feel

a sense of regret because such a large country like China can’t

even tolerate a citizen like him to exist here.”

There was no immediate indication where Chen might pursue

his studies, but New York University’s law school has previously

offered him a position as a “visiting scholar”.

A statement by State Department spokeswoman Victoria Nuland

struck a conciliatory note, saying Washington was “looking

forward” to Chen’s arrival.

“We also express our appreciation for the manner in which we

were able to resolve this matter and to support Mr. Chen’s

desire to study in the U.S. and pursue his goals,” it said.

Beijing has accused the United States of meddling in its

affairs in the Chen case.

Chen’s abrupt departure for the airport came about three

weeks after he arrived at the Chaoyang Hospital from the U.S.

embassy, where he had taken refuge after an escape from 19

months under house arrest in his home village.

Chen, 40, who taught himself law, was a leading advocate of

the rights defence movement. He gained prominence by campaigning

for farmers and disabled citizens and exposing forced abortions.

He was jailed for a little over four years from 2006 on what

he and his supporters say were trumped-up charges designed to

end his rights advocacy.

He had accused Shandong officials in 2005 of forcing women

to have late-term abortions and sterilisations to comply with

strict family-planning policies. Authorities moved against him

with charges of whipping up a crowd that disrupted traffic and

damaged property.

Formally released in 2010, he remained under house arrest in

his home village, which officials turned into a fortress of

walls, security cameras and guards in plain clothes.

POLICE AT THE AIRPORT

United Airlines flight UA 88 departed around 5.50 p.m. (0950

GMT), with police officers and plainclothes officers following

passengers down the mobile corridor leading to the plane’s door.

The cabin crew waited for passengers to take their seats

before closing the curtain to the front section, where the

business class seats were located, a Reuters witness said.

Chen had earlier told Reuters he was at the airport along

with his wife, two children and hospital staff and he believed

he would be put on a flight to the United States.

Two police cars were stationed below the walkway to the

plane, and about 10 security officials in plainclothes

circulated around the airport.

Passengers at the gate to Chen’s flight appeared not to know

that he would be on the same flight.

“If our country is a body, his plight is like a sickness

that in the future will help the body to protect and strengthen

itself,” said Xi Jingwen, who was awaiting to board a flight to

the United States, when asked about Chen Guangcheng.

Chen’s confinement, his escape and the furore that ensued

have made him part of China’s dissident folklore: a blind

prisoner outfoxing Communist Party controls in an echo of the

man who stood down an army tank near Tiananmen Square in 1989.

The Chen case comes at a tricky time for China, which is

engaged in a leadership change. The carefully choreographed

transition has already been knocked out of step by the downfall

of ambitious senior Communist Party official Bo Xilai in a

scandal linked to the apparent murder of a British businessman.

Chen’s supporters welcomed his departure, saying he had

indicated that he would like to return to China.

“I even told him…that he has to do a repeat of him scaling

walls. If not, we wouldn’t be able to believe it,” Nanjing-based

activist He Peirong said of her earlier conversation with Chen.

She was one of six activists who drove Chen from Shandong to

Beijing after his escape.

Phelim Kine, senior Asia researcher at New York-based Human

Rights Watch, said “getting Chen Guangcheng and his family on a

plane is the easiest part of this saga.

“The harder, longer term part is ensuring his right under

international law to return to China when he sees fit,” Kine

said in an emailed statement.

Kine urged Western countries to ensure that Chen’s

relatives, friends and supoorters secured due protection.

The U.S. embassy had earlier thought it had stuck a deal to

allow Chen to stay in China without retribution, but that fell

apart as Chen grew worried about his family’s safety. He changed

his mind about staying and asked to travel to the United States.

Human rights are a big factor in relations between China and

the United States, even though Washington needs China’s help on

issues such as Iran, North Korea, Sudan and the global economy.

The village of Dongshigu, where Chen’s mother and other

relatives remain, is still under lockdown.

Chen’s nephew, Chen Kegui, was denied his family’s choice of

lawyers on Friday to defend a charge of “intentional homicide”,

the latest in a series of moves to deny him legal

representation, and underscores the hardline stance taken

against the blind dissident’s family.

(Additional reporting by Chris Buckley and Michael Martina in

BEIJING and Arshad Mohammed in WASHINGTON,; Editing by Ron

Popeski)