Issue: 588

Charles Liu, Director, Information Division
Taipei Economic & Cultural Office (TECO) in Chicago 

Taiwan supports the U.S. campaign against terrorism
Charles Liu from TECO in Chicago lectured at the St. Louis Committee on Foreign Relations on November 19, 2001

Triangular Relations: Taiwan, the United States and China

by Charles Liu 

It's an honor and a pleasure to be here with you at the St. Louis Committee on Foreign Relations. I wish to thank Dr. Collester of Principia College School of Government for his kind invitation and his efforts to bring me here today. Iˇ¦m delighted to have this opportunity to talk to you about my country, the Republic of China on Taiwan. 

Taiwan: The Land, the People and the Government 

The Taiwan area includes Taiwan proper, Penghu, Kinmen, and Matsu. Taiwan's topography varies from volcanic mountains down to coastal plains. Although only 30% of the land is arable, Taiwan has two or three rice crops a year, lush vegetation, a diverse plant life with forest and bamboo groves, and many wonderful plants and vegetables. The flowers from Taiwan are famous for their beauty, especially the orchids, and have won many international awards. Seeing Taiwan, it is not difficult to imagine why the Portuguese named it Formosa, or "beautiful island".  There are also many animals unique to Taiwan, including 400 species of birds, and thousands of insects, particularly butterflies, to mention just a few. 

The 23 million people of Taiwan are mostly Han Chinese, and about 2%, or 300 thousand are aborigines divided into nine major tribes. Mandarin Chinese is the official language, but Southern Fukienese or Amoy dialect and Hakka dialects are used widely throughout the Taiwan area and the tribes of indigenous peoples speak their own different languages. English is widely spoken in metropolitan areas and is taught in school from the early grades, and many people still speak fluent Japanese held over from the days when Japan colonized the island until 1945. Culture and folk art from all traditions are strongly supported, and diversity is celebrated. 

Although Taiwan is only the 138th largest country in the world in terms of land area, and 46th largest in population, we are the world's 17th largest economy, 15th largest trading nation, eighth largest investor, fourth largest holder of foreign exchange, and the third largest exporter of information technology. We are pleased with our economic achievements, but we are even more proud of our political accomplishments. In just over fifty years, Taiwan has transformed itself from a closed and authoritarian society into an open, free and democratic country. Taiwan has 5 television networks, 66 cable TV systems, 146 radio stations, over 470 daily newspapers, more than 7, 000 periodicals, and countless Internet media. Virtually every level of public office is vigorously contested in

free and fair elections, with over 94 political parties fielding candidates. With the presidential election of early 2000, we saw, in five decades, the first peaceful transfer of political power from one party to another. At last count, Taiwan was a member of 16 International Governmental Organizations and 983 International Non-Governmental Organizations and plays host to foreign missions and representative offices from all over the world. As a matter of fact, the state of Missouri has its own representative office in Taiwan. Although Taiwan is still frozen out of the World Health Organization and the United Nations, we have just been accepted by the W.T.O. in early November, and we have maintained an active participation in international affairs. Taiwan has never sat idly by on the sidelines when there is work to be done on the world stage, and whatever challenges we face, that will not change now.

Taiwan and the United States: Cooperation and a Shared Vision 

Taiwan's dramatic success in economic and political development, in only 55 years since its release from Japanese control, makes Taiwan an important political and economic country in East Asia. Taiwan is the US's eighth largest trading partner. Last year bilateral trade between the US and Taiwan topped $64.8 billion. Taiwan's exports provide an important supply to the US in high-tech areas such as information technology, semi-conductors, and computers. Taiwanese-owned companies produce more than half the world's laptop computers and about a quarter of its desktop PCs. The growth of these sophisticated industries has created the demand for imports to the island not only of raw goods and materials, but a wide range of advanced equipment and new technologies. 

Taiwan's imports from the US last year totaled $24.3 billion. Imports from the state of Missouri alone totaled more than $154 million in the year 2000, including such products as leather, electronic and engineering equipment, chemical supplies and food products. Missouri's pig farmers will soon be sending their pork products to Taiwan, as well, and Missouri's continued growth in information technology may result in even more sales of precision instruments to Taiwan. 

In fact, Missouri has quite a history of strong cooperation with Taiwan. In July of 1980, Kansas City and Tainan became sister cities. Missouri Representative James Graham was a delegate for the American Council of Young Political Leaders in Taiwan in 1993. More recently, business groups from Taiwan traveled to Missouri for trade seminars and signed agreements of cooperation. In 1998, one of those groups was the Agricultural Goodwill Mission, a delegation of vegetable oil manufacturers from Taiwan who met with the American Soybean Association for the intention of purchasing soybeans. In May of 1999, the Import/Export Association of Taiwan came to Missouri for a trade seminar and also signed an agreement of cooperation. A delegation from Taiwan participated in the exhibition "Energizing Entrepreneurs 2000" presented by the Business Association of Kansas City, and a group from Missouri traveled to Taiwan in 2001 for the trade show "New Product USA 2001". One could say that the "Show me" state has asked Taiwan to "Show me the money," and we have responded, to our mutual benefit. 

Taiwan's markets are open not only to US imports, but to cooperative or multinational ventures as well. Missouri, especially the cities of St. Louis, Kansas City and Clayton, provides the site of offices for international companies from Taiwan employing American workers in such diverse industries as computer screens, ocean-going containers and noodles. Because of Taiwan's transparent economy and the common use of English, keeping an office in Taiwan provides many American businesses with a presence in Asia that allows them to pursue more markets in the region.

Of course, Taiwan's government also encourages foreign investment in Taiwan's own industries, especially in selected emerging industries, such as telecommunications and aerospace, and key technologies, such as optical electronics and biotechnology. Technical cooperation, representative offices distributorships, and joint ventures are encouraged as well, in keeping with a policy of maintaining an open economy. 

Cooperation in the arts and sciences is also common between our two countries, and academic exchanges are strongly encouraged. In the field of science and technology, the US and Taiwan have signed 124 agreements covering cooperation on everything from meteorology to biomedicine. In the arts, the collaboration between an American scriptwriter and a Taiwanese director resulted in four Oscars for "Crouching Tiger, Hidden Dragon" and there are many more shows, competitions and exchanges in which artists are participating. Last year, nearly 30,000 students from Taiwan were enrolled in US colleges or graduate schools. In fact, half the members of our Cabinet and over half the leaders in our Who's Who have been educated or trained in the US. Last year, 570 students from Taiwan were enrolled in an institution of higher learning in the state of Missouri, and that number continues to grow each year. 

Taiwan and America share a joint vision. Indeed, Taiwan shares America's values in every fundamental aspect - democratic principles and political institutions, free-market economics and business management, human rights and religious freedom, free press and free speech, and the strategic goals of peace and prosperity.  Add to that the genuine feelings of warm friendship which the people of Taiwan have for the US, and it is clear that the relationship between the US and Taiwan is much closer than just "someone you can do business with". 

When the Chinese nationalists fled to Taiwan in 1949, the US still recognized the ROC on Taiwan diplomatically, but in the 70's switched their recognition to the PRC. In 1979, the Taiwan Relations Act became public law in the United States, spelling out the legal relations and obligations between Taiwan and the United States. It does much more than commit the United States to offer the sale of defensive weapons to Taiwan. Through the TRA, Congress created the American Institute in Taiwan and, through the Institute, established methods by which the ROC could continue relations with the US in the same manner as a separate governmental entity despite the absence of diplomatic relations and recognition. Significantly, the TRA set forth as United States policy the intention to continue friendly commercial, cultural and other relations with Taiwan. It stated that US interests were served by the preservation of peace and stability in the Taiwan Strait region and that the future of Taiwan must be determined through peaceful means. 

As part of the policy set forth in the TRA, the United States has made a commitment to assist Taiwan in its self-defense. Not only have there been annual arms sales, but several precedents have been set with various administrations. Most recently, President George W. Bush clearly stated the US support for Taiwan if it were attacked and approved the sale of an arms package last April. Assistant Secretary of State for East Asian and Pacific Affairs Jim Kelly defended President Bush's approval of the arms sales in his testimony last June to the House Committee on Foreign Relations. Noting that the PRC continues to deploy forces across the Taiwan Strait specifically aimed at Taiwan, he said that the defensive systems provided to Taiwan make the peaceful resolution of Cross-Strait issues more likely, rather than less. He further defended the TRA and the US commitments contained in it. The TRA remains a vital agreement between our two peoples.

Cross-Strait Relations: Past and Present

Last August, the Economic Development Advisory Conference chaired by President Chen reached a consensus on mainland relations that the "no haste, be patient" policy should be replaced by a policy of "aggressive opening and effective management". Both Taiwan and mainland China were admitted to the World Trade Organization earlier this month, and the opportunities for mutual economic benefit from peaceful and cooperative ventures are greater than ever. Our government is reviewing the possibility of allowing mainland investment in Taiwan, is making it possible for Taiwan-based banks to set up branch offices on the mainland, and has asked that Beijing negotiate the establishment of direct transportation, postal and communication links. Cultural exchanges between the mainland and Taiwan continue to grow.  Even so, the careful dance of relations between Beijing and Taipei is still fraught with difficulties. The Beijing leadership continues to attempt to undermine Taiwan's standing in international organizations. 

A look at the history of Cross-Strait Relations may provide some insight. In the year 2000, two very important events occurred: China issued a white paper entitled "The One China Principle and the Taiwan Issue" and Chen Shui-bian was elected President of Taiwan. How are these two events linked? President Chen Shui-bian is a member of the Democratic Progressive Party, a party which was very vocal in its pro-independence stance. The month before the election, China issued its white paper, repeatedly emphasizing the desire to resolve the Taiwan Strait issue by implementing its "One country, two systems" policy, as it had with Hong Kong.  The "One country, two systems" formula was developed 18 years ago, and Beijing

insistence that Taiwan accept the model fully ignores the fundamental differences between Taiwan and the mainland. Beijing refuses to take into account the democratic achievements of the Taiwanese people over the past 50 years. Moreover, the administration of Hong Kong was transferred directly from a British colonial government to Beijing. Taiwan, on the other hand, is a democracy with its own national defense and foreign relations. Therefore, any attempt to integrate the two sides must take into account the wishes of the Taiwanese people. These points have been central to the conflict for years. 

Chen's election clearly displeased Chinese leaders, and China has since taken steps to back up its words with an increased military budget, arms purchase from Russia, and the buildup of missiles at the edge of the Taiwan Strait.  President Chen has made great efforts to placate Beijing, making it clear that he would not declare Taiwan an independent republic, but also that Taiwan would not succumb to Chinese pressure. He has expressed time and again his willingness to meet with the Beijing leadership, but Beijing has stone-walled, insisting that any talks between Taipei and Beijing can only take place after Taiwan accepts their interpretation of the "One China principle".  From Taiwan's standpoint, acceptance of Beijing's definition of One China is as bad as conceding sovereignty to Beijing. The question of sovereignty is the question of existence. If Beijing does not acknowledge the existence of Taiwan, there is no point to talks. There can be no negotiation if one side does not exist in the eyes of the other side. We insist there should not be any preconditions before the talks begin, and the standoff is compounded by a lack of trust on both sides of the strait. 

Many Americans have asked about the dual nature of Cross-Strait relations, wondering how the two sides could have such profound difficulties politically, yet have such close ties economically. Defense ministers in Taipei, Washington and Beijing have been keeping a close count of the number of missiles deployed along the southeast coast of Mainland China, but perhaps the number of McDonald's outlets on both sides of the Strait also tells us something else. China has 326; Taiwan has 342, if you're interested. In fact, Taiwan now has the eighth highest number of McDonald's outlets worldwide. So, if New York Times columnist Thomas Friedman is right that countries with McDonald's don't fight each other, this could be significant, or at least a hopeful sign, because Mr. Friedman also made the point that prosperous democracies don't usually declare war on each other. 

Of course, Taiwan is a prosperous democracy, and as such, it seeks peaceful relations with all its neighbors, including mainland China. A majority of Taiwan's leaders describe their hopeful vision of the future of the Asia-Pacific region as a place where a democratic peace prevails. While recognizing the many obstacles on the way, it is still a goal worth striving for. We are committed to the continued development of our own democracy and seek to do whatever we can to help foster democracy in mainland China. 

One can only hope that the forces of democracy and prosperity can win out over the obsession with military might. If they do, perhaps Mr. Friedman's theory may be proven correct. So with or without Big Macs, Taiwanˇ¦s policies of engaging economic and cultural exchanges while repeatedly offering the leadership of Beijing opportunities for peaceful dialogue may yet benefit the people on both sides of the Strait, gradually eliminating distrust and hostility between the two. And the people of Taiwan are more confident than ever that we will eventually achieve that goal now that Beijing and Taipei were both accepted to the World Trade Organization a few weeks ago. 

Taiwan supports the U.S. campaign against terrorism 

Finally, a very important topic on everyone's minds today is the international community's anti-terrorism campaign. The government of Taiwan has not only strongly condemned the September 11 terrorist attacks but has also expressed strong support of the United States in its fight against international terrorism.

President Chen Shui-bian has stated that the Republic of China on Taiwan, as a member of the international community and a democratic ally, will support the United States in its actions against terrorist organizations and endorse various anti-terrorist conventions and resolutions proposed by the United Nations. We acknowledge the humanitarian efforts by the US to target terrorist organizations rather that the Afghan people. We have pledged to provide the US and its allies timely assistance in the use of Taiwan airspace, if necessary, and have expressed our concern about the future of Afghan refugees as well as our willingness to provide appropriate resettlement and relief assistance. 

Taiwan's government has also pledged protection for overseas citizens, foreign personnel, foreign missions and representative offices in Taiwan, and other important facilities, and special attention is being given to ensure safe travel and the effective delivery of imports and exports. We stand with all civilized countries of the world in our condemnation of terrorism, our extension of sympathy to all the victims of terrorism, and our resolve to do our part bring about the end of this scourge and foster the growth of peace throughout the world.