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AUTHOR Reams, Joanne Reppert TITLE : Backgropnd ?kites Series. INSTITUTION Department of State, Washington, D.C. REPORT NO DOS-7791 PUB DATE Sep 83 NOTE 9p.; Maps may not reproduce clearlye AVAILABLE FROMSuperintendent of Documents, U.S. Government Printing Office, Washington, DC 20402 (Order, No. 7791, $2.00). PUB TYPE Reports Descriptive (141)

EDRS PRICE MF01/PC01 Plus Postage. DESCRIPTORS *Area Studios; Asian History; *Asian Studies; Comparative Education; *Cultural Awareness; Cultural Background; Economics; Educational Practices; Foreign Countries; GovernmAt (Administrative Body); International Relations; International Trade; National Defense; Physical Geography; Political Issues; Politics; Religion; Resource Materials; - Travel IDENTIFIERS *Taiwan; United States ABSTRACT Concise background information on Taiwan is provided. The publication begins with a profile of Taiwan, discussing the people, geography, political establishment, and economy. A map of the

country is provided. The bulk of the publication thenprovides more . detailed information on Taiwan's people, geography, history, administration, political conditions, economy, defense, and foreign relations, Relations between. Taiwan and the United Stites are discussed. Principal officials in the Taiwan government are listed, and travel notes, including a discussion of climate anticlothing, immigration, health, telecommunications, and transportation are provided. A bibliography of supplementary information is included. (RM)

*********************************************************************** * Reproductions supplied by EDRS are the best that can be made * * from the original document. * 9*t********************************************************************* a 4 r.

background BEST COPY AVAILABLE* 9 aiwan

United States Departmentof State ...September 1983 U.S. DE/ARMOR ORIDUCATION 7 Bureau of Public Affairs NATIONAL INSTITUTE OP EDUCATION EDUCATIONALRESOURCES INFORMATION CENTER (ERIC) This document has been rsiCsoduesdss received from the person Ot .organisation z originating it. Minor changes have been mu* to improve reproduction quality. .

t . Points of view or opinions stated In this docu mont do not necessarily represent officio! ME position or policy.

PROFILE Emblem: Red field with white sun in blue rectangle ip upperleftcorner., Red, white, Pik and blue symbolize sacrifice, justice; and , fest JAPAN People fraternitA . Piss Population (1981 est.):18million.Annual 4, 'S.. growth rate:1.92%.Ethnic groups:Han Economy Chinese 98%, less than 2% aborigines. Tolpsi Annual growth Gonfucianism, Buddhism,Taoism, GNP (1981): $46.2 billion. trs Religions: Per capita GNP OTIUWAN Christianity. Languages: MandarinChinese rate(1970-82 avg.): 7.5%. (CPI), (official). Principal dialectsTaiwanese, (1981): $2,570. Avg, inflation rate Hakka.gducation: Years compulsory-9. At- 1981: 10%. tendance-99.7%. Literacy-89.7%. Health:. Natural resources: Smalldeposits of and South China Infant mortality rate-11.01/1,000,Lf1P ex- coal, natural gas, limestone, marble, Sas PHILIPPINES pectancy-72.1yrs. (men 69.6, women74.5). asbestos. Agriculture (10.53% ofGNP): Prod- Work force(6,764,000):A griridre20 %. and commerce-41%. Seri,. uctesugarcane,lumber, sweet potatoes, Industry fruits, ices-32%. Civil administration-7%. rice, asparagus, mushrooms, citrus pineapples, banahas, peanuts, pears. Cultivatedland-25%. Geography Industry (35.02% of GNP):Textiles, fur- Area: 35,981 sq..km. (14,000 sq.mi.); about footwear, electronics, plastics, cement, niture-, other consumer goods, iron,steel, one-third the size of -Ohio. Cities: O (pop. 2.3 million).Other petrochemicals. CapitalTaipei Exports-:$22.6'billioneX- citiekL-(1.2 million), . Trade(1981): (606,734), (582,199), tiles; machinery, 'plastics, metal products:. : food. Major marketsUS (Jilong) '(343,000). Terrain: Largelymoun- plywood, canned (K2 billion), Japan ($2.5billion), Hong Kong tainous.Vimate: Maritime subtropical. ($1.9 billion).Imports$21.1billion: kik', raw materials,crude oil, chemicals, phar- Political Establishment nulceuticals, capital goods.-Majorsup- pliersJapan($5.9 billion), US (!.4.8 Type:One-party system, established in 1911 in , moved to Taiwan1949. Kuwait. ($2.2 billion). Official exchange rate:Floating; about Constitution:December 25, 1947. N9 40 new Taiwan dollars .US$1. Branches: President, vice-president. year premier (president of or Fiscal year: July 1 of preceding tabinet), , JudicialYuan, June 3'i of designated year. , Examination Yuan.Ad- ministrative subdivisions:Taiwan Province, , and Kii:Jimiung specialmunicipalities, 'In accordance with US Government prominent practice, individualand place names are certain offshore islands (the most given in romanization exceptin the of which are Quemoy and Mitsu)of Fujian case of thosespecifically related to Taiwan, (Fukien) Province. which follow preferred usage inTaiwan. Political party: (KMTNa tionalist Party).Suffrage:Universal over age 20. Centralbudget(1981): $23.2 billion. Defense(1981): 9% of GNP. 0

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3 2 A o - "15. . The most commonl used Chine:..i. dynasties. In the collection are brorizes romanization on Taivan is the Wade'' and jades, painting andcalligraphy, porcelains, carvings, and tapestry.The of 18million, Giles systeni. fr.iwanhas a population museum also has arare-book library and including about 120.000.on the , has preserved thousandsof centurks-old. Islands. 4 .. 1 Religions official docitnients. The Museumof The native Taiwanese, who number History% gatherings, some ofwhich are more thathl 5millieui. are descendants hi predyminant religion iy a Aimbina. lion of Buddhism iitai Taoism, brought prehistoric, include bronzeimplements, Chinese iivli tido:deli from the sculpture, pottery, crowded, coastal mainland ateas of Fel. to Taiwan centuries agoby the original coins, stone carvings, furniture, costumes, andtablet rubbings. jian (Fukien) and Guangdong Chinese settlers of the island. The 61onfucian ethical code; with its In addition to preservingarticles of (Kwangtung) Provinces, primarily in the historical value, the museum promotes' IStli and 19th cenlugies. The 2 million ancient rites and ceremonies, has long been ctinidere41 the ':religion" of Chinese international understanding of Chinese "mainlandelzrs," who arrived on Taiwanin f 1949 and thereafter, came' fromall parts literati and is considered by some to be culture. Taiwan's culturalaffairs bureauhas of China. About 250,000 aborigines in- the "official religion"' of Taiwan today. A few Chinese Muslin's came to laidout an ambitiousplan to establish habiting the mountainous central and centers through- / 'astern parts of the island arebelieved Tai 11 wish other refugeesfrom the more than 60 cultural in out the island. The projectinvolves con- 0 be ofMalayo-Polynesian origin. mainland alter the communist victory 1949. Christian missionaries havekeen struction of concert halls, libraries, . active on Taiwan. for ninny years, and theaters, and auditoriums in several ma- Education today the island has more than 600000 jor cities. Also on the agenda areplans Christians, a majority or v.honi are Prot- for marine, natural science,andscience More than 4.6 million people(about 25% Along with This estaiit. and technology museums. of the population) attend sehnol. these new additions, existingfacilities reflects Oat relative youthfulness ofthe J such as the Science EducationalHail population:'bout 43% under Cultural Background and Cathay Art Museumwill be im- age 20. Since. 1968. a9-ear..free Mum tinnal system has been in effect. :+ix TaiVan's culture is a blend of its distinc- proved. years of elementarpschooland 3 years tive Chinese beriticand Western in- - if junior high sehoa.areo compulsoryfor fluences, 14h in ti-t and echniquo. Sipe aft childri,n. About 00 of juniorhigh arts, folk tradiions, andpopular vulture GEOGRAPHY and cmbody traditional and modern, Asian school graduates pass examinations Although continuing its claimof entei. 3-year senior high and vocational and Western motifs. Interest inclassical Chinese calligraphy and wexxiblocks re- sovereignty over all ofChinain the schools. mains great, while. 'estern sculpture name of the "Republicof China," Taipei Taiwan has an extensive system of exercises control only over theisland of colleges, and junior and painting arc incrcasiogly popular. and Taiwan, the Penghu Islands loges. Other institutions of: higher.. Dance includei-; court, aboriginal, folk dances, as well as some finemodern (Pescadores), and about 20 verysmall ing currently enroll almost 300,000 "offshore islands," most near the undergraduate and graduate students troupes. One of the leadingmodern (lance societies is the Cloud Gate.'Dance Chinese mainland. Taiwan lies 130-200 through competitive examinations. kilometers (80-125 mi.) off the In college level fields of studyin Ensemble, the dancers of which are engineering attracted the largest trained in ballet. Chinese opera, and southeastern coast of the Chinese mainland. Taiwan's two major cities; number or students-110,000followed modern techniques. Exemplary of the new styli' combiningChinese and Taipei and Kaohsiung, areadministered by ,racial sciences %vith 106.00( and municipalities, The humanities with 29.000.Other popular Western forms and ideas, 'the troupe's as provincial-level and repertoire ranges from adaptationsof rest of Taiwan and\the Penghuislands i; ids were medical science (2.000) administered together as education (19,20w). Each year, more' Peking opera to avant-garde works. to the west are the Theater, which includes concern, the Province of Taiwan. than 5,000 Taiwan students come to by I'nitetl States for allvanced education. porary drama, traditionalPpking opera, The offshore islands administered and the popular Taiwanese folk opera, the Taiwan authorities areconsidered by combines music'. dance, mime, costume, them to be a subdivision ofthe Mainland lInguages _and acrobatics with nearly allother Proyince of Fujian (Fukien).They con- variant dramatic t4Ms.These presentations are sist of two principal iv Most native Taiwanese speak a r»oy) Bay and southern Fujian performed on stage and broadcast on (Quemoy) in Xiamen(A of the dialect of mi.) oft' the (Fukien). The tlnkka dialect isspoken in radio and television. Matsu, 19 kilometers (12 !knll', and Miaoh, the' twonorth- Taiwan Hong Kong in making mainland port city of Fuzhou enclaves Chinese motion pictures, producingb (Foochow)plus a few adjacent minor wcAern count les, and in small also oc- in die southern and eastern districts.As tween 150 and 201) filmseach year. Most islands. The Taiwan authorities novels and ltu Aba Islands in a result of ahalf century orJapanese screenplays are based on popular cupy Pratas Reef 1(E South China Sea. r many Taiwaneseolder than age 50 and are distributed in Hong Kong,. for a few Southeast Asia, Europe, and theUnited The island of Taiwan is about-365 !.,o speak Japanese. Except 100-145 speak States. kilometers (245 mi.) long and oLler people in Taiwan, all now lOometers (60-00 mi.) wide. Anorth- ''landarin, the official Chinese diale,.t, One el Taiwan's great cultural Museum, home forms the back- Minch has been the mediunrnfinstruc- treasures is the Palace south mountain range tion in the!, setup( for three decades. , of one of ti e world's largest collections of Chinese art objects. The artifacts depict a civilization ,that spans more than 4,001) years, with some pieces dated as'early as the Shang andZhou

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on.the mainland -beforewithdraOhl liighest peak;economy. Theconstraetion of a modern bone of the island with the trenspirtation net turk and aseries of Taiwan. The governm('uts or Taiwan , Yu Shan, rising to 3,997 ratter;,(1:i..11(1 ' hydrneleetrie 4trui thermal i uwer r.tnts Province and the' specialmunicipalities ft.) alineas vel. The eastern Slope' of of Taipei and -Kaohsiung are separately but the %vas the beginning nl aneennaniqoin. this range is .-teep ;aid erag.).,ry, foundation constituted local bodies distinct fromthe westn hall' of the islandslopes gentl frastrueture that hecame the -for Taiwan's later industrial develop- central administrative bodies. 1.4) the sea and is fertile willhig+ly mnt. l!nder Japaneserule, an advanced Under the-1.947 constitution, the cultivated. and gave sovereignty of the people is exercisedby The Trnpic of Cancerbis'ect`faiwan school system spread literary body was Taiwan an educated labor fume. the National Assembly, This slightly smith nf its midpoint.Taiwan's 1947 gps, At the end of World War IIin 1945i,- formed through elections in climate is semitropical. with June- throughout China to fill its,3,045 seats Taiwan reverted to Chinese rule.During August the 'wettest period andJane- twctipainnal basis. lies in the immediate postwar period, the on a territorial and Septernber the hottest. The island Thp National Asi,embly currentlyhas hells and Nationalist Chinese administrationn the earthquake and typhoon fewer than 1,400 members,including suffers petiodic damage. Taiwan was repressive and corrupt. These (conditions led to extreme those added when new seats were newly. created for Taiwan Provinv., Taktanese discontent with the occupational groups arrivea authorities from the Chinese City, and various HISTORY and when, in mainland, and antimainlanderviolence and women's organizations 1980, 99 new seats werecrehtol. All Aennimg to ChineSe sources,('hinese flared on February 28, 1947:The representatives elected in the 1947-48 .February uprising was swiftlyand; migratinn Taiwan hvgan as earl, as "indefinitely," in bruudly suppressed I,y Nationalist period hold their seam A.1), Tun.van seems to have been or holding new Chinese troops. AlthoughTaiwanese and view of the impossibility known, albeit ..aguelv. to Sungdynasty. general elections for assemblymembers historians as early' as the lothcentury. mainlanders have learned to live mainland. In together amicablyaml prosperously over from constituencies on the' Hutch traders first claimedthe i:-1;1»d in the president anal the ensuing three and onehalfdecades, addition to electing 1024 as at base for Dutch caml-re%tali Assembly a lingering distrustremains beneath the vice preside'rit, the National Japan and the China coast.iiiitch has the power to amend theconstitution (mists administered the islandand its surface. and the powers,as yetunexercised, predominantly aborigine imputationuntil Toward the end of the civil war on the Chinese mainland, some2 million initiative and referendum. 11161. The first major influxof migrants The president stands abovethe five during tired( animl*. military,bureaucrat, and from the Chinese. mainland came and, admin;stratke branches titian):Execu uteli period, sparked by the business refugees fled to Taiwan; the Chiang tive, Legislative, Control, Judicial,and political and economic chaos onthe after the communist victory, Examination Yuan. The presidentis Chinese trust during the twilightof the Kai-shek established his"provisional" President,( 1949. assisted by the Office of the Nling- dynasty alai at the timeof the capital in Taipei in December With the In early 1949. the Nationalist headed by a secretary general. Manchu invasion, Yuan, the authorities started implementing afar- consent of the Legislative In 1004, at Chinese fleetled hthe president appoints the "premier." or reahing and highly successfulland- Ming loyalist Zheng Chenggong(known "president," of the. Executive Yuan, reform program. Theredistribution of in the West as "Koxinga")retreated tiPCahinet and is land among small farnit?rs wasfollowed which constitutes from the mainland and occupiedTaiwan. responsible for policy and administra estab- by a sigilifiant increase infarm produc- Zheng expelled the Dutch and the tion. dished Taiwan as a base in hisattfirriipt totion. In the land-reform program, Nationalist authorities compensated The main lawmakilig !wily. the restore the Mingdynasty. Zheng died originally large landowners with commodities cer- Les.,rislative Yuan (). shortly thereafter, and in168.3 Zheng's light had 773 seats,: With Taiwan'spapilla tam Manchu'control. tificates and stock in--state-owned successors submitted to industries.Although some landowners .growing, the nut horities ordered sup China ruled Taiwan as a plementary elections in 1969 0.add 11 declared a were leftimpoverished by the compensa- frontier until it was theirs into new members. In1972, trinnial der- separate Chinese provimpin 1880. Dor tion, others were able to turn capital with which to start new, non- Oats were inaugurated to fill the sup- th and 19th centuries,migra- 97 ne%% ing the I industrial plementary seats. awl in 1980, nun front China's coastalprnvincertof agricultural commercial and death or enterprises. These new 4.ntreNvneurs seats ever added. With the Gluing-dung (- hOultl(Fillilet) and became Taiwan's first industrial CilpaCitaii(111 at Many ()bier (1

0 for POLITICAL CONDITIONS Taiwan !s political system is effective- IIn supplemental Int ;fibers alerted ly one party. Two 'minor political par- 6-year terms beginning in 1972..The tiesthe Democratic Socialist Party and -number of elective Control Yuan seatsin When President Chiang Kai-sirdk died. on April 5,-1975, he wassucceeded by the Young China Partyare formally 1980 increased by 22, and another -10 organized but have tv. significant in appointees from Vice Presidentlen Chia -kan, who had seats were treated for fluence or following. among overseasChinese communities. been elected along with Chiang by the National Assembly to a 6-year term jn Candidates opposing theKMT run The includes a . of "nonpartisans," and 17rflomber Cwancil of Grand Justices 1972. Chiang Ching-kuo, elder son as independents or inter- Chiang Kai-shek, was elected in March even though the greatmajority of 'can- that, like the U.S. Supreme Court, Mates elected are from the Nationalist prets the constitution. Its jurisdictionin- 1978 by the National Assembly to a 6-year terms pfesident, replacingMr: Party, the independents have been in- cludes civil, criminal, and administrative creasingly successful at the polls: After disciplinary Yen. The younger Chiang was premier cases and cases cqpcerning the Legislative Yuan elections in measures against publicfunctionaries. from 1972 until his inauguration as election president on May 20, 1978. December 1980, "nonpartisan" /egis- The Judicial Yuan also handles lators'coalesced into efrective informal suits. As the highest judicial organ,it is' President Chiang Ching-kuo is also caucuses that, throughskillful manage- concerned only with final judicialdeci- chairman of the ruling Kuomintang (KMT -- Nationalist Party). He had ment of parliamentary procedure,have sions. The Executive Yuan administers given the non-KMT politicians a measure the lower courts. assumed most of the day-to-day respon- The Examination Yuan functions as sibility for governing long beforehis of influence in central policymakitig. his Tegether' with moderate Nationalist Par- a civiservicecommission. It comprise~ father's death, and his'succession to ty legislators, these "nonpartisans" pre- . two ministries: the Ministryof Examina- father's position as the most important sent a political force that basthe men- tion, re.sponsible for recruitingpublic political figure in Taiwan was expected.. and uneventful. As premier and presi- functionaries through competitive ex- a amination, arid the Ministry of Person- dent, Chiang China kuo has been cogni- nel, in charge of the registration of zantof the plura;istic nature of Taiwan's public functionaries, transfers, promo- society and has sought to open up the tins, and commendations. political process to more Taiwanese par- Travel Notes The top local administrative organs ticipation whilttstill maintaining effec- Climate and clothing: Taiwn is hot and are the Taiwan ProvincialGovernment tive KNIT control. The KNIT organization closely humid in summer and chilly and damp in (located in central Taiwan at (:hung- winter. The climate in the northern halfof king New Village, near Taiehung).- parallels the administrative structure at central_ all levels..Mostof the top officials,in- the island resembles that of the south - Taipei municipality, and Kaohsiung .US; the southernpart is similar toFlorida. In Municiciality. The governor of Taiwan cluding cabinet members and the gover- of winter, light jackets and sweaters are recom- Province and the mayors of Tajpei and noraif Taiwan Prcwince, are members mended; in summer, lightweight garments Kaohsiung are appointed by thecentral its Central Standing committee.The are essential. An umbrellais useful all year. .' authorities. The elected Provincial ,Standing Committee is elected annually by the Central Committee of the KMT Immigratioa: For a stay of .less than 2 Assembly and city councils have limited weeks, a transit visa and confirmed onward authority over local affairs. Manyposi- from nominees proposed by the party's passage are required: for a stayof less than 2 tions at subordinate levels are filledby chairman. At lower levels, KNIT commit- months, a tourist visa, valid for 1month and provincial, coun- local elections. tees are organizod on a extendable for another month, is required. ty, and district basis andin various Those coming from or passing through vocational ,-roupings. disease-infected areas should have inocu)a. Principal Officialsc Party funds are derived from dues -tions as appropriate. Health requirements change; check latest information. PresidentChiang Ching-kuo and contributions paid by membersand Vice PresidentHsieh Tungmin from the proceeds of party-operated Health: Epidemics and serious diseases are PremierSun Yurftsuan businesses. The KMT has more than 2 infrequent in Taiwan. High pollen countsand million paying members, about two- air pollution can cause discomfortto`people Vice PremierChiu Chuang-huan Drink- President, Control YuanYu thirds of whom are of 'Taiwanese(origin. who suffer from allergies or asthma. Most senior military officers andcivilian ing water served at Taipei's majorhotels is Chunhsien only officials are KMT members. safe, but when dining elsewhere, drink President. Examination YuanLiu hot. or bottled drinks. Chihung A revision of the constitution in President, Judicial YuanHuang 1948 granted virtually unliraited Telecommunications: Telephone and the president. telegraph services are modern and efficient Shaoku emergency powers to These powers remain in effect andare Bilingual assistance is available through most l'resident, Legislative YuanNi Wenya inex- the basis for strict security measuresad- hotel switchboards. Telephone rates are .tilirristyrx ministered under martial . Opposition pensive. Taipei is 13 hours ahead of eastern standard time. CommunicationLien Chan to basic policy (such asexpressing views Transportation: Car rentals are availablein Economic AffairsChao Yiustung contrary to the authorities'claim to represent all China, or supporting anin- Taiwan. Although Taipei has anextensive EducationChu Ilui-sen rely on dependent legal status for Taiwan) is bus system, foreign visitors tend to FinanceHAu Lite The considered seditious. and thus punishable the inexpensive taxis for transportation. Foreigm AffairsChu Fu-sang north-south freeway provides excellent links personal InteriorLin Yang-kang under martial law. Otherwise, by car tc the island's major cities.Currently, Legal AffairsLi Yuan-tsu freedoms are considerable. Growing however, travel around the islandby National DefenseSoong Chang-chip political liberty on local issues and Taiwan's comfortable passenger express gradual evolution toward a more open trains is recommended. Flights areavailable Af inisters Witiumt Purtfi)tio society are evident. from Taipei to Kaohsiung (30minutes), Taitung. Vvi Ilua, Chou Ilung-tao, Yu Kuo-hua. Hualien, Makung, Tainan, and Li Kieting, Chang Fenghsu, Kao Yushu, Lin Chin-sheng 6 5 w .,

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,The authorities encourageforeign in- ticatd heavy industryand technology- tint of changing representativepolitics in vestment to help financethe island's ef- inter've industry. from light, labor- Taiwan. In the 1977, 1980, and 1981 the gross forts to move away /Elections, "nonpartisan" candidates con- In the decade 1973-82, industry. to domestic product (GDP) roseat an an- 'intensive export-oriented Wstent ly captured about one-quarterof morecapital-intensive productionf6, ex- nual average of 9.5% -inreal terms. Dur- import substitu- the seats. In the most recentelections following the 1973 oil port and for secondary Novemher 1981), 60% of the 40 can- ing the recession tion. Based on Taiwkmstatistics, embargo, Taiwanmanaged to overcome projects ex- didates to whom the nonpartisans gave for its industrial approlvd foreign investment prioritysupport were elected tooffice, the slump in demand ceed $1.9 billion. In 1981,American exports by adopting asuccessful approval to invest and 4 ofthe 19 magistrates' seats,wide- Also, 10 companies obtained of- economic stabilization program. $200 million in Taiwan. vconsidered the most powerful Iheal projects were more than fices up for election, went tonon-KMT major infrastructure Textile production,although of launched to stimulateeconomic activity. candidates. Most independentpoliticians declining importance,remains Taiwan's Taiwan's economic plannershoped that hold moderate opinions and seetheir investment for the most importantindustrial sector. The primary purpose as implementing the sharp increase in electronics industry issecond in size and major projects, coupledwith revived gradual change and providing a system is the largest recipientof U.S. invest- demand for the island'sexports, would of checks and balances in thepolitical ment. Otherimportant export industries , establish the bases forcontinued pros structure. include plastici, toys,spOrting goods, ' Ali litnigh friction betweenmai '- perity. footwear, and furniture.Taiwan's in- holders and native Taiwaneseremains a dustrial structure is highlylabor inten- problem, it has abated with timeand the Major InfrastructureProjects sive, taking advantageof the island's gradual melding of the twoChinese com- skilled and moderatelysalaried labor Most of Taiwan's 10 majorinfrastruc- munities. In 1972, Chiang.Ching-kuo, ,complettd by the end force. began a ture projects were Taiwan's economiclutureis based who was premier at that time, comprised: conicertedetlfort to bring,Taiwaneseinto of 1978. They on a shift inindustrial structure toward, more senior positionsin the central ad- A north-southfreeway linking the one that is morecapital intensive and . ministative apparatus. Taiwanese now majoir cities of westernTaiwan: more energyefficient; Taiwan's hold 7 of 23 ministerial positionsin the A new internationalairport at economic policymakersaim for export cabinet and constitute aboutone-fifth of Taoyuan near Taipei; industries to account'for80%of the . the KMT Party CentralCommittee. Of Railway electrificatiqn; gross nationalproduct (GNP) by1989. the' some 2 million KMT members,63% Modernization of the island's Taiwan has indicated thatit wishes to U.S. and are Taiwanese.Taiwanese hold most of ports; reduce its reliance on the the elective and appointivepositions at Construction of a new port near Japanese markets and tOcompete with becoming &ma- fliw provincial andlocal levels. Nonethe- Taichung; them increasingly, while ss. mainlanderscontinue to exercise A rail linkfroM" Suao to Mallen: jor trading partnerwith South America overwhelming control in the central The island's firstintegrated steel and Africa. The. planforecasts the in- increase governing bodies, mill; dustrial sector of the GDP to l'pon withdrawing fromthe main- .A major shipyard atKaohsiung; 10% annually, whileagriculture's share land to Taiwan in 1949,President Petrochemical plants; and will continue to decline. Chiang Kai-shek brought withhim a Additional power plants. Much of Taiwan'sindustrial produc- bureaucracy, tion takes place in exportprocessing .relatively sophisticated These improved facilitiesand 'continuing, Harbor, party organization,and military growth are zones (EPZs)in the Kaohsiung establishment designed on theScale of rapid, export-led industrial area, at Nantze nearKaohsiung, and at the main factors inthe.island's continu- China as a whole and muchlarger than Taichung. EPZs combinethe advantages ing evolution from anunderdeveloped and a free-trade required to rule Taiwan.Despite the industrial society. of an industrial zone placed on the society into a modern attracted considerable burden this bureaucracy projects were area and have it contributed Late in 1977, 12 new island's limited resources, complemen- foreign investment. -I ability to implement announced, most of them The focus of Taiwan'sthrust into to the authorities' 10 major construc- policies to which they had earlierbeen tary to the original high technology is theHsinchu science- tion projects. These includeconstructing committed but had beenunable to carry ',ased industrial park.Opened in Sep- addith,nal highways,completing a rail the park serves as a out while governingthe mainland. These finishing the tember1980, 11.S. aid in network around the island, Taiwan's in policies, aided by generous integrated-steel mill, catalystt restructuring hard work of the second phase of the dustry. Nineteen,ofthe 35 firms that the early years and the constructing the island's :ond and local population, greatlyfacilitated the have received permissionto join the third nuclear power plants,expanding operations, in- island's rapid modernization. new park halm commenced Taichung Harbor, constructing cluding Taiwan's first massproducers of improving irrigation towns and housing, integrated circuits andsilicon wafers. and flood control,financing farm is to attract ECONOMY The goal for the1980s mechanization, andconstructing-local $1 billion if foreignand domestic invest- cultural cWrtters. The projects are met- the :1st three decades,Taiwan has' ment from 200companies employing designed to ensure progressin transpor- changed fr ml an agriculturalto an in- 30,000-40,000' workers.To date, the tation, electric power, animproved in firm has been dustrializool economy. Foreigninvest- farm averag a investment per Chinese, the dustrial base, and accelerated $1.5 million. The parkseeks investment. ment, mo.aly from overseas modernization. The majorconstruction (hilted States, .Japan, andWestern in live broadsectors: modern, labor- period is 1979 -84,aimed at bringing :mope. helped introduce Taiwan into the ranksof the developed Electronics and information proc- itensiye technology tothe island in the 30% of the' emphasis is changing economies by 1989. About essing; 419los, but now the through foreign Precision instrumentsand from production of lightindustry" con - cost will be financed sophis- capital. machinery: `suuugoods for export to more High-technology materialsciences;

6 Enera sciences; Aeronautieal engineering; and Further Information Genetic engineering. general indica Lionberger, H.R. and H.C.Chang. Farm These titles are provided as a information for ModernizingAgriculture: Twenty-four of the 35 investment ap- tion of material _published onTaiwan. The plications approved so far havebeen in Department of Statedoes not endorse un- The Taiwan System. NewYork: Praeger. electronics and informationprocessing. :official publications. 1970. largely Mendel, D.H. Polities of Forrn3sanNational- Growth of the industry depends Old Prob- University, of Califoinia on the flow offoreign investment, and Barnett, A. Doak. China Policy: ism. Bericele, in- lems and New Changes. Washington, Press, 197^ the sciencepark offers incentivekto D.C.: Brookings Institution, 1977. Meskill, Johan . Chinese Pianeer vestors including tax holidays,lower- Publishing I rinceton University duty- China Yearbook. Taipei: China thanstandard company taxes, and Co., annual. Press,,19. free importation bf machinery,equip- Clough, Ralph. Island Chi, a,Cambridge: Sheridan, J.E. China inDisintegration: ment, and raw materials. Harvard University Press, 1978. The Republican Era, in ChineseHistory, In addition, improved portand har- Cohen, Myron L. House. United,House 1912-1949. New York: FreePress, 1975. with Divided: The Chinese Family inTaiwan. Sih, Paul R.T., ed. Taiwanin Modern Times. bor facilities have been keeping up Press, sharply rising demand, andinternational New York: Columbia UniversityPress, New York: St. John's kiniversity air-transport service is excellent.Taiwan 1976. 1973. Davidson, Jame" W. Island of Formosa:Past Tuchman, t.W. Stilwell and theA;neriean has one of Asia's best internal transpor- and Present. Reprint of 1903 ed. New Experience in China, 1911-1945,New tation networks. AMS Press, Inc., 1977. York: Macmillan, 1970. Fairbank, J.K. The United Statesand China. Wilson, R.W. Lea"rhing To BeChinelle: The Children in Foreign Trade Rev. ed. Cambridge: HarvardUniversity Political .Socialization of Press, 1974. Taiwan. Cambridge: MITPress, 1970. Foreign trade has been amajor faCtor in Jacoby, Neil H. U.S. Aid to Taiwan.New Yang, Martin-M. Sorio-EconomicResults of Taiwan's rapid growth over the past30 yor)c: Praeger, 1967. Land Reform Taiwan. Honolulu: East- .years. The value oftrade roughly tripledKaplan, John. The Court-Martial ofthe West CenterTress, 1970. Kaohsiung Defendants. Berkeley: In- in each 5year period since 1955and in- Periodicals creased nearly four-fold between1975 stitute of East Asian Studies,University of California, 1981. Asian Survey. Berkeley:Ung,ersity of Cali- and 1980. Taiwan's exports have Kerr, George. Formosa Betrayed.New York: fornia, monthly. changed from predominantlyagricultural 1976. Contemporary Im- Da Capo Press, 1965, reprinted China Quarterly. London: commodities to 90% industrial goods. Kerr, G.H. Formosa: GummedRevolution China Institute, School ofOriental and ports are dominated by rawmaterials and the Home Rule Movement 1895-1945. African Studies. and capital goods, which accountfor Honolulu: University Press of Hawaii, 'Journal ofAsian Studies. AnnArbor: Uni- more than 90%of all imports. Taiwan 1974. versity of Michigan, quarterly. imports more than 75% of its energy Li, Victor H. De-RecognizingTaiwan: The needs. Legal Problem. Washington, D.C.: Carnegie Endowment for International The United Stktes is Taiwan's 0 largest trading partner. ApprovedU.S. Peace, 1977. private investment in Taiwan since1954 amounts to about $1 billion.In 1981, total two-way trade was approximately $13 billion, mainly in U.S. exportsof However, increases in agricultural pro- cipal export markets. Due to.the.recent farm products and machineryand U.S. than inworldwide recession, Taiwan's GNP In duction have been much slower imports of textiles and appliances. dustrial growth; in fact, in 1981 , . growth rate_during 1981 reatthed only 1981, Taiwan had a tradesurplus of $3.4agricultural production declined byabout5.5%, the lowest in the past 6 years.In However, the billion with the United States, 0.6%. 1982, real GNP gtowth was 3.76%, Taiwan's chronic trade deficit with Taiwan is self-sufficient in rice pro- lowest since 1974. Japan was almost equal to itstrade duction but imports large amountsof Nevertheless, Taiwan'seconomic surplus with the United States inthat other foodgrains, mostly from the performance is still positive byinterna- year, repeating a patternthat has oc- United States. Meat productionand con- tional standards: Its currenteconomic curred frequently in past years.The reflecting a indicators are low by Taiwanstandards for sumption are rising sharply, United States and Japan account rising standard of living.Taiwan exports only because of its remarkablerecord more than half of Taiwan'sforeign large amounts of frozenpork. Other over the past 25 years.Taiwan will en- trade. Other important trade partners agricultural exports include sugar, counter difficulties as itswitches to are Hong Kong,Kuwait,' Saudi Arabia, canned mushrooms, canned asparagus, more sophisticatedproducts of heavy in- the Federal Republic of Germany, bananas, pineapples, citrusfruits, fresh dustry and is forced to competefor ex- Australia. and Indonesia. The lackof port markets with moredeveloped, coun- all but avegetables, and tea. formal diplomatic relations with Taiwan has a large fishing fleetand tries. few of its trading partners has not is an important exporterof fisi.. hindered rapidly increacmg commerce. Taiwan's deepsea as well as inshore fisheries have increased steadilyeach DEFENSE year. Agriculture The maintenance of a largemilitary Taiwan's agricultural sector isextremely establishment, which absorbsabout 9% productive. Although only about one Economic Outlook of the gross national product(GNP) and quarter of the territory is arable,viz-7 With total two-way trade nearly50% of accounts for about40% of the central tually all farmland is intensively is extremely for itc GNP, Taiwan's economy cultivated, with some areas suitable vulnerable to developments in its prin- two and even three crops per year. 7 e

Future Was sales to Taiwan will ac- budget, places a substantial but- people of the United States will nufintahr" the cultural, commercial, and other unof- cord with the policies contained in manageable burden on Taiwah's expand- August 17, 1982 communique. In con- er ficial relationsswith the people of ing economy. The armed forces`number junction with the issuance of that corn- 500,000; two-thirds are ground Taiwan." Illabut (In April 100979, PresidentCarter munique, ptesident Reagan issued a forces, and the rest are split about even- statement that "regarding future U.S. in- signed into law the Taiwan Relatitins IF between air and naval personnel arms sales to Taiwan, ourpolicy, set cluding marines. The reserves 0.411 Act, PI, 96-8 (TRA), which created domestic legal authority for the conduct forth clearly in the communique,.isfully !` more than 2 million troops,Conscription . Taiwan. consistent with the Taiwan Relations iS universal for men over age'19., of unofficial relations with in- Act, Arms sales will cOntinue inacc,ird- Taiwan's armed forces are equipped American commercial and cultural tei:action with the people of Taiwan is ance with the act and with the full ex- o 'with weapons obtained primarily from facilitated through'theAmerican In- pectation that the approach of the the Unites, States, brat in recent years Chinese Government to the resolution of stress on military "self- reliance"has stitute of Taiwan(AIT),. anorfkovern- mental entity. The institute has itshead- the Taiwan issue will continue to be resulted in the growth of domestic peaceful The position of the U.S. military production in certain fields, quarters in Washington,D.C. and field AIT is Government- has always been clear and Taipei adheres to The nuclear non' . offices in Taipei and Kaohsiung. authorized to asset t. visa and passport consistent in this regard. The Taiwan proliferation treaty and has stated 'question is a matter for the Chinese peo- repeatedly that it does pot intend to pro- applications and to provide assistance,to U.S. citizens in Taiwan. A counterpart ple, on both sides of the Taiwan Strait, duce nuclear weapons.,. in this organization, the Coordination Council to resolve. We Will not interfere choice of, or for North Amer,ican Affairs (CCNAA), 'matter or prejudice the free put pressure on, the peopleof Taiwan in FOREIGN RELATIONS has been created by Taiwan. It has headquarters in Taipei and field offices i.his matter. At the same time,we have in Washington, D.C. and _nineother an interest and concern that any The People's Repuitlic of Chinareplaced resolution be peacur Taiwan at the United Nations in 1971. Z sties. U.S. commercial ties with Taiwan position, On January 1, I979,'at the time of. Since then, Taiwan's aiplomatic have been maintained and expanded has been, gradually eroded, as moreand derecogmition, the United States notified 'the Taiwan authorities of intent to ter- since derRcognitic n. Taiwan continues to more countries changedtheir official enjoy Export-Import Bank financing, Cur- pinate the 1954 MutualDeferiSe Treaty, recognition from Taipei to Beijing. OVerseas Private Investment Corpora- rently, Taiwan has formal diplomatic and thetermination took effectJanu- in its unilateral tion (OPIC) guarantees, most-favored- ties with 23 countries. ary 1, 1980. However, statement released on December 15, nation status, and ready access to U.S. Taiwan has cultivated informal ties markets. The U.S. Agency for Internal With many countries as a means tooff- 1978, concurrently with theJoint-Com- munique on the Establishment of tional Development (AID) Mission in set its diplomatic isolation and toexpand' Taiwan was closed in 196,5. More than its economic relations. A growing Diplomatic Relations Between the United States and the People'sRepublic $1.7 billion in U.S. economic aid 'had number of nations have found it useful been provided between 1949 and 1965. to of China, the United State declared to set up unofficial organiations in, 'Nortnalizing relations, with the carry out commercialand other unof- that it "continues to have an interest the peaceful resolution of theTaiwan P.R.C. has been'tecognized-to be in the ficial relations with Taiwan. These long-term interest of the United States organizations typically have representa- issue and expects that theTaiwan issue ... will be settled peacefully by theChinese by four consecutive administrations. The ,tives in Taipei, who provide services re United States is committed to this effort quired by business travelers and others themselves." Since derecogfiition, the United because it is importint for America's to or from their countries. A counter- global poition and for peace And atatgli- part organization is usuallyset,up'by States has continued the sale ofcareful- equipment ty in Asia. Taiwan in toose.coontries. ly. selected defensive military to Taiwan. The August 17, 1982 U.S.-China Joint Communique addressed Published by the United States Department this point. In that corriMunique, the Office THE UNITED STATES AND . of State Bureau of Public Affairs Editorial Divi- TAIWAN P.R.C. cited a "fundamental policy" of of Public CommUnication striving for peaceful reunification of sion Washington, D.C. September 19841 10n January 1, 1979, the United States Taiwan with mainland China and a Editor: Joanne,Reppert Reams peqyeful solution to the Taiwan question. switched its diplomatic recognitionfrom Department of State PublieNion 7791 R. Taipei to Beijing. In the U.S.-P.R.C. With that Chinese policy in mind, the Background Notes Series This material is Joint Communique that accompanied United States stated in the communique in the public domain and may be reproluced that action, the United States recog- thatit does not seek to carry out a without permission; citation of.this source nized the oernmenrof the People's long-term policy of arms sales to would be appreciated. Taiwan, that its arms sales to Taiwan Republic of China (P.R.C.) as the sole For sale by the Superintendent ofIlocu, legal government of China and will not exceed, either in qualitative or Office, of those ments, U.S. Government Printing aknowledg0 the Chinese positionthat in quantitative terms, the level Washington, D.C. 20402 there is hut. one China and Taiwan is supplied in recent :;.,ears since he part of China. The JointCommunique establishment of diplomatic relations also stated that "within this context,the between the United States and China, and that it intends to reduce gradually its sales of arms to Taiwan...."..

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