In Matsu islands, Taiwan's outlying islands near the Chinese province Fujian, residents seem unfazed by Beijing's latest military drills around Taiwan. "Matsu is really small and I don't think China cares about it. We feel at ease and unfazed and there won't be any big impact on us," says Lin Ai-lan, a local tour guide. Taiwan kept control of Matsu and the nearby Kinmen islands -- both tucked close to China's southern coast -- after nationalist forces fled the mainland in 1949 following defeat in the Chinese civil war. The Matsus are the closest Taiwanese territory to the drills, but ferry services and commercial flights were still running, with soldiers mingling with civilians. IMAGES AND SOUNDBITES