By John Yemma, Globe Staff

CAMBRIDGE, 11/02/97 (Boston Globe) - In one of the biggest demonstrations in this city since the Vietnam era, thousands of people rallied on the streets outside Harvard University yesterday, shouting insults at Chinese President Jiang Zemin and urging democracy for China and independence for Tibet and Taiwan.

But thousands of Jiang partisans filled the streets as well, waving red flags and cheering for him.

In an extraordinary mixing of opposite sides, protesters and supporters stood shoulder to shoulder in most locations. This led to hundreds of small debates and shouting matches, especially between Tibetans and Chinese nationals.

At one spot, human rights activists and Tibetan exiles shouted, "Free Tibet, free Taiwan" while standing next to a vociferous group of mainland Chinese who sang their national anthem and shouted back "One China, only one China."

While some exchanges became heated, none turned violent. The crowd, estimated by Cambridge police at around 5,000, remained peaceful.

Police with riot helmets hanging from their belts, backed by State Police on horseback, formed a stern-faced line on the streets.

The only demonstrators allowed beyond police barricades were friendly, a group of children from the Chinese School of Cambridge. They had gathered in the cafeteria of Gund Hall, across Quincy Street from Sanders Theatre, and emerged dressed in traditional Chinese costumes and carrying bouquets just before Jiang's motorcade appeared. As the motorcade approached, they danced and waved their bouquets.

Anti-Jiang groups, led by the 20-member Coalition for Democracy and Human Rights in Asia, occupied an area in front of the Swedenborg Chapel on Quincy Street. Protest organizers had set up a powerful public-address system, which they cranked up to full volume as the motorcade arrived.

"Jiang go home," they screamed as he drove past.

While Jiang was addressing a crowd of ticket-holders and invited guests inside Sanders Theatre, a series of speakers outside decried repression and torture in China and Tibet.

Harry Wu, a leading democracy campaigner, said Jiang had come to Harvard "to deliver the message - not about how his government is changing - rather that those who cooperate with the Chinese Communists will be rewarded."

"Harvard needs to remember that they are entertaining a man who is head of a government that tortures men, women, and children," said Dr. Allen S. Keller, a member of the Boston-based Physicians for Human Rights, which on Friday released a report detailing widespread torture in Tibet.

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