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INFORMATION TO USERS The most advanced technology has been used to photo­ graph and reproduce this manuscript from the microfilm master. UMI films the original text directly from the copy submitted. Thus, some dissertation copies are in typewriter face, while others may be from a computer printer. In the unlikely event that the author did not send UMI a complete manuscript and there are missing pages, these will be noted. Also, if unauthorized copyrighted material had to be removed, a note will indicate the deletion. Oversize m aterials (e.g., maps, drawings, charts) are re­ produced by sectioning the original, beginning at the upper left-hand comer and continuing from left to right in equal sections with small overlaps. Each oversize page is available as one exposure on a standard 35 mm slide or as a 17" x 23" black and white photographic print for an additional charge. Photographs included in the original manuscript have been reproduced xerographically in this copy. 35 mm slides or 6" x 9" black and white photographic prints are available for any photographs or illustrations appearing in this copy for an additional charge. Contact UMI directly to order. A ccessing the World's Information sin ce 1938 300 North Zeeb Road. Ann Arbor. Ml 48106-1346 USA Order Number 8804054 T he political base of changing strategy toward private enterprise i n Taiwan, 1945-1955 Hsu, Chen-Kuo, Ph.D. The Ohio State University, 1987 Copyright ©1987 by Hsu, Chen-Kuo. All rights reserved. UMI 300 N. Zeeb Rd. Ann Arbor, MI 48106 oasaetssEBiS PLEASE NOTE: In all cases this material has been filmed in the best possible way from the available copy. Problems encountered with this docum ent have been identified here with a checkV mark . 1. Glossy photographsor p a g e______ s 2. Colored illustrations, paper or print_______ 3. Photographs with dark background______ 4. Illustrations are poor copy_______ 5. Pages with black marks, not original copy_______ 6. Print shows through as there is text on both sides of_______ page 7. Indistinct, broken or small print on several pages\/ 8. Print exceeds margin requirements_______ 9. Tightly bound copy with print lost in________ sp in e 10. Computer printout pages with indistinct_______ print 11. P ag e(s)____________ lacking when material received, and not available from school or author. 12. Page(s) 4 seem to be missing in numbering only as text follows. 13. Two pages numbered . Text follows. 14. Curling and wrinkled p a g______ e s 15. Dissertation contains pages with print at a slant, filmed as received_________ 16. O t h e r______________________________________________________________________ University Microfilms International THE POLITICAL BASE OF CHANGING STRATEGY TOWARD PRIVATE ENTERPRISE IN TAIWAN, 1945-1955 DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of the Ohio State University By Chen-kuo Hsu, B.A., M.A. * * * * * The Ohio State University 1987 Dissertation Committee: Approved by Dr. David M. Lampton Dr. R. William Liddle Adviser D r . Wen-lang Li Department of Political Science © Copyright by Chen-kuo Hsu 1987 To My Parents ACKNOWLEDGMENTS In tlie process of doing this dissertation reserach, I have incurred many debts. First of all, I wish to thank the members of my dissertation committee, David M. Lampton, R. William Liddle, and Li Wen-lang, for the enormous benefit of their advice and guidance. I also wish to thank Professor Bradley Rechardson for serving on the Committee for one year and offering valuable criticisms and suggestions. A special note of thanks must go to Ramon H. Myers, who had given a lot of support and encouragement while I did re­ search at the Hoover Institution. Also, he helped read many of my manuscripts and gave many valuable comments. I thank the Tunghai University where I have taught in Taiwan for granting me a total of six years of leave while I have studied abroad. I also appreciate the efforts of many students at Tunghai for helping collect data. Yin Li-ling and Chang Yu-chuang, especially, had provided sustaning help. I had left for Tunghai University to fulfill my teach­ ing responsibilities last summer and then returned to The Ohio State University this summer to complete the final defense. As a result, I had shifted my computer word pro­ cessing programs several times and had many troubles with adjustments. Ou-Yang Hsing-Yi and Ch'en Yuh-chia provided a lot of assistance in dealing with these difficulties. Hsing Yi's help was especially crucial as he enabled me to submit my final drafts on time. I wish to express my gratitude to these two friends. I owe deep debts to those sponsors who had provided fi­ nancial support for my study. These include Fulbright Scho­ larship, the ROC National Science Foundation, the Department of Political Science at The Ohio State University, The Re­ public of China Committee for Scientific and Scholarly Co­ operation with the United States, Academia Sinica, and the Asia-Pacific Educational Fund. Finally, I want to express my heartfelt thanks to my parents for their patience and unfailing support for my study and academic career. I appreciate all those people who have contributed to this dissertation. However, I alone am responsible for any shortcomings of this study. VITA January 29, 1944 ............ Born - Kiangsu, China June 1968 ................... B.A., Tunghai Univeristy, Taichung, Taiwan Major: Political Science June 1974 ................... M.A., Chengchi University, Taipei, Taiwan Major: Political Science AREAS OF SPECIALIZATION The Republic of China — Political Economy. Political Economy. Political Development. Political Methodology. RESEARCH EXPERIENCE September 1980 - September 1983: Taiwan, The Republic of China. Archival Research in Chinese language materials and interviewing. Conducted for purposes of dissertation re­ search. Topic: The Political Base of Changing Strategy Toward Private Enterprise in Taiwan, 1945-1955. June-December, 1984: Additional research in Hoover Institu­ tion's East Asian Collection at Stanford University, Cali­ fornia. Methods and topic name same as above. January-July, 1985: Research Assistant for Dr. R. William Liddle at The Ohio State University. Collecting research materials for the study of Indonesia. September 1985 - July 1986: Reserach Assistant for Dr. David M. Lampton at The Ohio State University. Studying Science and Technological Policies in The People's Republic of China, domestic politics in the Republic of China. TEACHING EXPERIENCE Tunghai University: 1969-1971 (Teaching Assistant) 1974-1977 (Instructor) 1980-1983 (Instructor) 1986-1987 (Instructor) Introduction to Politics Political Development Political Methodology HONORS AND AWARDS 1977-1980, Fulbright Scholarship 1983-1984, A Fellowship from The National Science Founda­ tion, The Republic of China. 1984, The Louise Loh Award, The Ohio State Univeristy. 1984, A Special Award from The Republic of China Committee for Scientific and Scholarly Cooperation with the United States, Academia Sinica. 1986, A Fellowship from Asia-Pacific Educational Fund. TABLE OF CONTENTS Page ACKNOWLEDGMENTS. .................................. VITA ............................................. LIST OF TABLES ................................... LIST OF FIGURES .................................. CHAPTER 1. INTRODUCTION ................................. 1 Research Question .......................... 1 The Nationalist Government-Business Relationship, 1927-1937 ................................. 3 Indigenous Political Base of Taiwan's Economic Development ............................... 10 Theoretical Framework ...................... 16 Research Scope and Method .................. 23 2. THE NATIONALIST ECONOMIC POLICY TRANSITION ON THE CHINESE MAINLAND PRIOR TO 1949 ......... .31 Introduction ................................. 31 The Syncretic Nature of Sun's Doctrine ...... 32 Toward a "Planned Economy" .................. 47 The New Concept of "Planned Free Economy" .... 53 Coping with the Economic Crisis of 1947 ..... 58 Conclusion ................................... 66 3. A FALTERING START IN TAIWAN .......... 74 Introduction ................................. 74 Private Enterprise under Japanese Rule ......... 77 The Take-Over Policy and the "Four Public Pillars" .................................... 83 Various Conflicts between the Government and Society ................................ 93 Tensions, Violence, and Reforms ................ 113 4. CREATING A NEW ECONOMIC SYSTEM AND STRENGTHENING ECONOMIC CONTROL ................................ 131 Establishing a New Politico-Economic System ... 131 Coping with Critical Issues and Strengthening Economic Control ............................. 137 The Role of Private Enterprise under Economic Control ....................................... 156 Conclusion ....................................... 169 5. THE EMERGING STATE-GUIDED, FREE ECONOMY ....... 179 Party Reform and Economic Policy Change ......... 180 Extending Land Reform and Selling Public Enterprises .................................... 184 Ideological Confrontation in the Legislature ... 196 Intellectual Reflection on "the Free Economy" .. S04 Debate on Government Economic Interference ...... 210 6. CRITICAL LEADERS AND ECONOMIC POLICY FORMATION ... 229 Chiang Kai-shek .................................. 230 Ch'en Ch'eng ..................................... 241 Yin Chung-jung and the New Economic Officials .• 262 7. CONCLUSION AND IMPLICATIONS........ 285 BIBLIOGRAPHY .......................
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