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exile by the Com–
munists in 1949.
When diplomatic
relations are estab–
lished, the Nation–
a lists will lose their
last major ally and
only real protector,
the United States.
They would then
stand alone should
the Comm unists
ever decide to im–
plement a "final so–
lution " to the
China problem.
How do the lead–
ers of the free Re–
pu blic of China
feel about the im–
pending shift in
America's role in
NATIONALIST OUTPOST
on Quemoy island affords view ot Communist main–
land. Atong with Matsu, Ouemoy was heavily bombarded trom the mainland in
1958, and still remains a bone ot contention between Peking and Taipei.
impress i ve eco–
nomic miracle of
its own. Since 1953,
Taiwan's gross na–
tional product (af–
ter adjusting for
infiation) has been
growing at an aver–
age rate of more
than eight percent
a year. Per capita
income reached
$809 in 1976, up by
over nine percent
from the previous
year and second
highest in Asia af–
ter Japan. By 1982,
it is expected lo top
$1300.
this strategic part of the world? We
went to Taiwan to find out.
Dr. Tsai Talks
Seated next to us in the spacious
conference room of Taiwan's Insti–
tute of lnternational Relations, Dr.
Tsai Wei-ping, director of the 16-
year-old think tank located just out–
side Taipei, reviewed for us the dif–
ficuJt times on Taiwan in the years
immediately following the Commu–
nist takeover of the Chinese main–
land by Mao Tse-tung in 1949.
We had traveled out to the Insti–
tute to tour its facilities and elicit
the views of its staff of able scholars
on a wide range of topics of concern
throughout Asia today. The Insti–
tute, a quasi-official organization, is
one of the world's principal centers
for the study of communism.
It
is
visited by scholars from around the
world for purposes of study and re–
search. lts massive archives contain
every issue of Peking's official
People's Daily
published since 1953.
The lnstitute also monitors and
transcribes all major Communist
Chinese radio broadcasts.
Dr. Tsai told us that even by
1955- six years after retreating Na–
tionalist Chinese forces under Gen–
eralissimo Chiang Kai-shek had
relocated on the mountainous 200-
mile-long island- the average coolie
(laborer) on Taiwan had no shoes.
His shirts were cut from coarse gun–
nysacks. Poverty was the rule rather
than the exception.
8
But in the more than 20 years
since that time, Dr. Tsai observed.
the bardworking, energetic Chinese
on Taiwan bave literally "changed
hell into heaven."
We had already seen evidence of
Taiwan's amazing transformation
the day before, beginning with our
arrival at Taipei's nearby Sungshan
airport.
A traffic-choked metropolis of two
million people, booming Taipei has
one of the fastest changing skylines
in Asia. High-rise office buildings,
banks, hotels, department stores,
apartments and condominiums are
springing up everywhere. The
people walking on Taipei's broad
boulevards appear to be about as
well dressed as the prosperous Japa–
nese. The gunnysacks of years past
have been replaced by clothing not
unlike that which can be seen on
any contemporary American street.
This should come as no surprise,
since much of the clothing worn by
Americans these days is made in
Taiwan.
"Japanese-style" Growth
Often overshadowed by the public–
ity given to Japan's phenomenal
postwar recovery, Taiwan boasts an
The authors recently returned
Jrom a three-week, six-nation
Jact-finding trip through Asia.
This is the third in their series
ofreports.
The annual in-
crease in industrial
output, which has averaged over 14
percent since 1953, jumped by 24
percent in 1976. Total trade in the
same year reached $16 billion. Tai–
wan's two-way trade with the
United States bit nearly $5 billion–
twelve times larger than U.S. trade
with mainland China. On a per cap–
ita basis, Taiwan's total trade ex–
ceeds that of Communist China 65
times! Even in absolute terms. Tai–
wan's trade volume still tops that of
the mainland. (Communist China,
with an area of 3.7 million square
miles, has a population of about 850
million. Taiwan, with an arca of
only 14,000 square miles, has barely
over 16 million people.)
lnterestingly, of aiJ countries that
have received U.S. economic aid ,
the Republic of China has been one
of the few success stories. In 1965,
Dr. Tsai pointed out to us, Taiwan
became the first such country to be
judged capable of guiding its own
economic future, and U.S. assis–
tance was terminated. Economists
have often pointed to Taiwan's ex–
ampie as a model for developing
countries.
Diplomatic Cloud
But now, all this hard-won prosper–
ity has come under the shadow of
an ominous diplomatic cloud. As in
the case of South Korea
(The Plain
Truth,
December 1977), Taiwan's
economic success has been made
possible in large measure by a U.S.
guarantee of military protection.
The
PLAIN TRUTH February 1978