UPDATE 1-China Mobile reiterates no plan to control Far EasTone

* China Mobile says no plan to control Far EasTone

* Will lobby with Far EasTone for stake approval

HONG KONG, June 18 (Reuters) - Dominant Chinese mobile carrier China Mobile (0941.HK) said it has no intention of seeking control of Far EasTone (4904.TW) and vowed to seek necessary approvals for its plan to buy 12 percent of the Taiwan company.

"China Mobile reiterates that when this investment is approved, after China Mobile becomes a Far EasTone stakeholder, we won't participate in the company's daily business administration, and won't pursue a controlling interest," China Mobile said in a statement released on Thursday.

"Industry watchers, the media and ordinary shareholders have all been very positive about China Mobile's move to buy a stake in Far EasTone," China Mobile said.

"We hope the relevant authorities will be able to introduce regulations that will allow for the deal to move forward smoothly."

Far EasTone had said on Wednesday it expects to complete the deal by early next year. [ID:nHKG33582]

The two companies announced their landmark tie-up in April, saying China Mobile would pay $529 million for the stake.

Since then, however, some industry executives and opposition lawmakers have warned against opening up the telecoms sector to Chinese investors since the industry is seen as a sensitive area.

Taiwan's telecom sector is not on the initial list of investments that is open to Chinese investors, and the island's cabinet may delay opening up the industry in the face of such opposition, casting doubt on the viability of the deal.

Taiwan under the year-old administration of President Ma Ying-jeou has been gradually opening up to investments from China as it seeks to revive its own economic prospects in the face of a global downturn.

Despite a recent correction, the island's benchmark TAIEX share index is still one of the world's best performers, largely as investors bet that Taiwan will be able to ride on China's rapid growth.

Far EasTone's shares closed the day down 0.39 percent, outperforming the main board's 0.83 decline. China Mobile was down 1.81 percent at lunch, lagging the Hang Seng's .HSI 1.97 percent fall. (Reporting by Doug Young; Editing by Ken Wills)