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Monograph No 35.Pmd TRANSFORMING INDIA-TAIWAN RELATIONS: NEW PERSPECTIVES | 1 IDSA Monograph Series No. 35 April 2014 Transforming India-Taiwan Relations New Perspectives Prashant Kumar Singh 2 | PRASHANT KUMAR SINGH Cover Photograph Courtesy : http://travelhdwallpapers.com/taipei-101- night-view/ Institute for Defence Studies and Analyses, New Delhi. All rights reserved. No part of this publication may be reproduced, sorted in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photo-copying, recording or otherwise, without the prior permission of the Institute for Defence Studies and Analyses (IDSA). ISBN: 978-93-82169-36-9 Disclaimer: It is certified that views expressed and suggestions made in this Monograph have been made by the author in his personal capacity and do not have any official endorsement. First Published: April 2014 Price: Rs. 225/- Published by: Institute for Defence Studies and Analyses No.1, Development Enclave, Rao Tula Ram Marg, Delhi Cantt., New Delhi - 110 010 Tel. (91-11) 2671-7983 Fax.(91-11) 2615 4191 E-mail: [email protected] Website: http://www.idsa.in Cover & Layout by: Geeta Kumari Printed at: M/S A. M. Offsetters A-57, Sector-10, Noida-201 301 (U.P.) Mob: 09810888667 E-mail: [email protected] TRANSFORMING INDIA-TAIWAN RELATIONS: NEW PERSPECTIVES | 3 Contents ABBREVIATIONS ................................................................................ 5 ACKNOWLEDGEMENTS ................................................................... 9 PREFACE ............................................................................................ 11 1. INTRODUCTION ................................................................................ 15 2. TAIWAN: AN INTRICATE PRESENT WITH A COMPLEX PAST ................................................................................ 21 3. JAWAHARLAL NEHRU AND THE ROC ......................................... 27 4. INDIA AND FORMOSA: LEGAL AND POLITICAL PERSPECTIVES ................................................................ 45 5. THE COLD WAR TRAJECTORIES OF THE ROC AND INDIA .................................................................... 61 6. REDEFINING INDIA'S LOOK EAST POLICY .................................. 69 7. TAIWAN'S PRAGMATIC DIPLOMACY ............................................. 77 8. CONTEMPORARY INDIA-TAIWAN RELATIONS .......................... 86 9. CONCLUSION ................................................................................... 120 10. THE ROADMAP FOR THE RELATIONSHIP: POLICY RECOMMENDATIONS ..................................................................... 122 TABLES ............................................................................................ 129 APPENDICES ................................................................................... 140 BIBLIOGRAPHY ..................................................................................149 4 | PRASHANT KUMAR SINGH TRANSFORMING INDIA-TAIWAN RELATIONS: NEW PERSPECTIVES | 5 ABBREVIATIONS ASEAN – Association of Southeast Nations BERI – Business Environment Risk Intelligence BIMSTEC – Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation BJP – Bharatiya Janta Party CBM – Confidence Building Measures CBSE – Central Board of Secondary Education CEC – Continental Engineering Corp CECA – Comprehensive Economic Cooperation Agreements CENTO – Central Treaty Organization CEO – Chief Executive Officer CEPA – Comprehensive Economic Partnership Agreements CIER – Chung-hua Institution of Economic Research CPC – Communist Party of China CPI – Communist Party of India CSC – China Steel Corporation DG – Director-General DPP – Democratic Progressive Party DPU – Democratic Pacific Union DST – Department of Science and Technology EAS – East Asia Summit 6 | PRASHANT KUMAR SINGH ECA – Economic Cooperation Agreement ECAFE – Economic Commission for Asia and the Far East ECFA – Economic Cooperation Framework Agreement EU – European Union FDI – Foreign Direct Investment FICCI – Federation of Indian Chambers of Commerce & Industry FTA – Free Trade Agreement GATT – General Agreement on Tariffs and Trade ICAO – International Civil Aviation Organisation ICCR – Indian Council for Cultural Relations ICRIER – Indian Council of Research on International Economic Relations ICSSR – Indian Council of Social Science Research ICT – Information and Communication Technology ICWA – Indian Council of World Affairs IDSA – Institute for Defence Studies and Analyses IFS – Indian Foreign Service IIC – India International Centre IIM – Indian Institute of Management IIT – Indian Institute of Technology IMD – Institute for Management Development IT – Information Technology ITA – India-Taipei Association TRANSFORMING INDIA-TAIWAN RELATIONS: NEW PERSPECTIVES | 7 JS – Jan Sangh JWG – Joint Working Group KMT – Kuomintang LEP – Look East Policy MEA – Ministry of External Affairs MOE – Ministry of Education MOE – Ministry of Education MOEA – Ministry of Economic Affairs MOFA – Ministry of Foreign Affairs MOU – Memorandum of Understanding MRA – Mutual Recognition Agreements NAM – Non-Aligned Movement NCCU – National Chengchi University NDA – National Democratic Alliance NDU – National Defence University NGO – Non-Governmental Organization NSB – National Security Bureau NSC – National Science Council NSC – National Security Council NTHU – National Tsing Hua University PLA – People’s Liberation Army PRC – People’s Republic of China PSP – Praja Socialist Party 8 | PRASHANT KUMAR SINGH RBI – Reserve Bank of India ROC – Republic of China SEZ – Special Economic Zone SP – Socialist Party SP – Swatantra Party TAITRA – Taiwan External Trade Development Council TCA – Taipei Computer Association TEC – Taiwan Education Centres TECC – Taipei Economic and Cultural Centre TEMA – Taiwan Electric and Mechanical Association TICC – Taiwan-India Cooperation Council TRA – Taiwan Relations Act UGC – University Grants Commission UK – United Kingdom UNESCO – United Nations Education, Scientific and Cultural Organisation UNSC – United Nations Security Council USA – United States of America USSR – Union of Soviet Socialist Republics VWP – Visa Waiver Programme WEF – World Economic Forum WHO – World Health Organization WTO – World Trade Organisation TRANSFORMING INDIA-TAIWAN RELATIONS: NEW PERSPECTIVES | 9 ACKNOWLEDGEMENTS I would like to extend my sincere thanks to Dr. Arvind Gupta, Director- General, IDSA, for encouraging me throughout this study. His support and guidance made the completion of this study easier. I also thank Brig. (Retd.) Rumel Dahiya, Deputy Director-General, for showing keen interest in the project. I would like to express my deepest gratitude to Shri N.S. Sisodia, former Director-General, IDSA, who gave me the opportunity to visit Taiwan from September 2011 to August 2012, for a Chinese language course. This was the period when I developed interest in India-Taiwan relations. My thanks are due to Brig. Mandip Singh, former coordinator, East Asia Centre, who actively supported the endeavour. I received valuable inputs from the two anonymous Referees, which greatly improved the final product. I thank the Indian Council of Social Science Research (ICSSR), New Delhi, and especially Prof. Sukhadeo Thorat, Chairman, for funding my field-trip to Taiwan in June-July 2013, which enriched this monograph. I thank Mr. Mahesh P. Madhukar, Assistant Director (International Collaboration), ICSSR for his cooperation while availing the field-trip grant. I would like to extend my thanks to the Taipei Economic and Cultural Centre (TECC) in India, New Delhi for facilitating some of the interactions during the field-trip. I would like to acknowledge the special contribution of my colleague M.S. Prathibha, whose careful reading improved the manuscript and convinced me to prepare it for publication. My academic pursuits would be impossible without the guidance of my teachers Prof. Madhu Bhalla and Prof. D. Varaprasad Sekhar. I am privileged to have received unstinted support from Dr. Ashok Tanwar since my student days. Mr. S.V. Ramani is my friend, philosopher and guide. I appreciate the valued comments offered by Dr. Namrata Goswami. I must thank Vivek Kaushik, Geeta and Vaijayanti Patankar for 10 | PRASHANT KUMAR SINGH facilitating the publication of this monograph. I also thank S. Suresh, Pitambar Datt, Mukesh Kumar Jha and Vikrant Kumar for their help in utilizing library resources. I thank Dr. Kiran Sahni and Dr. Preeti Singh for copy-editing the monograph. While I was writing this monograph, my teachers Wang Tsan-yu, Dong Xiu-Lin, Fan Jing-Hua, and friends Behram Irani, Chinchin Shih, Alton Ray Carlson II, Azeem and Nazar, were always in my thoughts. Kundan, Sona, Prabodhan, Ranjak, Ravikant Mishra and Vikas Pathak, provide me strength for my endeavours. I am deeply indebted to my parents, and wife Vijaya Laxmi, for my successes. My daughter Palak provided the much-needed distraction. Finally, I dedicate my monograph to my grandparents whose memories live on in my heart forever. Prashant Kumar Singh TRANSFORMING INDIA-TAIWAN RELATIONS: NEW PERSPECTIVES | 11 PREFACE Taiwan is a part of the geographical area of operation of India’s Look East Policy (LEP). Although India does not recognise Taiwan as a sovereign state, its functional and people-to-people contacts with Taiwan are explainable under the LEP. Besides, India’s economic activities are on the rise in the vicinity of Taiwan. Though commercial in nature, India’s presence in the South China Sea, along with improvement
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