Targets listed for new 4-year plan
The Republic of China begins its Fifth Four-Year Economic Development Plan in 1969. Investment of US$4.5 billion is expected to assure economic growth of at least 7 per cent annually.
The plan will enlarge the infrastructure and promote industrial sophistication.
By 1972, the last year of the new plan, per capita income is expected to reach US$257, an increase of 23 per cent over 1967.
The gross national product is expected to hit NT$191 billion (US$4.8 billion), as compared with NT$136 billion (US$3.4 billion) in 1967.
Economic growth is likely to exceed the 7 per cent target. The rate of growth was 10.5 per cent annually during the fourth plan.
Taiwan's economic growth rate has averaged 9 per cent during the last decade, second highest in the world after Japan's 9.9 per cent. The growth rates of other countries for the same period were: Thailand, 7.1 per cent; South Korea, 6.6 per cent; West Germany, 4.6 per cent; France, 4.8 per cent; United States, 4 per cent; India, 3.7 per cent; Great Britain, 2.9 per cent.
Industrial growth rate for the next four years is set at 12.5 per cent, compared with actual growth of 16.7 per cent during the last four years. Industrial production in 1972 is estimated at NT$125 billion (US$3.1 billion) compared with NT$79.3 billion (US$2 billion) in 1968.
The targets in major industrial sectors of the fifth four-year plan are: 10.9 per cent for electrical power (14,126 million kwh in 1972),72.2 per cent for petroleum refining (440,000 kiloliters in 1972), 9.2 per cent for mining, 4.6 per cent for food processing, 10.2 per cent for textiles, 7.5 per .cent for handicrafts, 16 per cent for chemicals and 19.5 per cent for metals and machinery.
The growth rate of agriculture in the 1969-72 period is set at 4.45 per cent, a little higher than the 4.1 per cent target of the fourth four-year plan. Production of crops, fisheries, forestry and livestock will reach NT$38.1 billion (US$950 million) in 1972 as compared with the NT$32 billion (US$800 million) in 1968. Investment in agriculture during the period will be US$450 million.
Capital to finance the new plan will come from the government budget and foreign investment and loans. Of the US$4.5 billion total, US$500 million will come from foreign banks and US$200 million from foreign private investment.
In 1952, agriculture's share of the net domestic product was 35 per cent compared with industry's 19 per cent. In 1968, industry provided 29.24 per cent and agriculture 23.23 per cent. Industry has replaced agriculture as the backbone of Taiwan's economy.
Aware that an island economy cannot survive without exports, the Chinese government has spared no effort to increase trade. Two-way trade is expected to top US$1.8 billion this year, of which US$870,000,000 will be exports.
According to the fifth four-year plan, foreign trade volume will reach US$2.8 billion in 1972.
Minister of Economic Affairs K. T. Li said the government will seek new outlets for Chinese products in anticipation of a protectionist trend among free nations.
Foreign investment reached US$350 million in the last decade and US$200 million more is expected during the 1969-72 period.
Processed goods continue to climb
Export of processed goods amounted to US$350 million from January to November last year, an increase of 37 per cent over the corresponding period of 1967, the Foreign Exchange and Trade Commission (FETC) reported.
Textile products continued to top the list at US$131,751,796. Chemicals ranked second with US$55,281,306. Electrical appliances were up by 76 per cent. Paper and pulp as well as iron and machinery were down.
The breakdown is as follows:
- Textiles, US$131,751,796, up 29 per cent.
- Chemicals, US$55,281,306, up 68 per cent.
- Timber and wood products, US$50,910,072, up 45 per cent.
- Products processed under contract with foreign countries, US$49,337,504, up 69 per cent.
- Iron and machinery, US$34,669,364, down 3 per cent.
- Paper and pulp, US$5,810,072, down 25 per cent.
- Others, US$4,232,017, up 33 per cent.
Per capita income reaches US$237
Per capita income reached a record US$237 last year.
Economic Affairs Minister K. T. Li told the Cabinet per capita income has been increasing by 5.1 per cent annually.
Industrial growth was 18.9 per cent last year, the highest in recent years. Construction was the leader, followed by manufacturing, public utilities and mining. Power production was up by 16.5 per cent.
Agriculture grew by 6 per cent last year, including a gain of 4 per cent in rice output.
Land transportation showed an increase of 10.4 per cent for passengers and cargo moved. Shipping had a gain of 29.7 per cent. Chinese carriers did 8.8 per ·cent more business. Loadings and unloading increased by 17.2 per cent.
The wholesale commodity index rose by 1.99 per cent in 1968. City inflation was 6.27 per cent but the spiral was under control by the end of 1968.
Overseas capital now US$344 million
Foreigners and overseas Chinese invested US$344 million in 1,093 projects during the last 15 years, according to the Ministry of Economic Affairs.
The average annual total was only US$4.5 million in the period from 1952 to 1960. This jumped to US$37 million in 1962 and to a record of US$104 million in 1968.
Favored industries were textiles, chemicals, metals, electronics and electrical appliances. Half of the output was exported.
Electronics has had the fastest growth among foreign-invested industries. The first American plant was established four years ago with 400 employees. Now it has more than 7,000 workers.
Export of electronics products was US$28 million in 1967 and US$60 million in 1968.
Sugar recovering its export position
Sugar exports are expected to reach 700,000 metric tons, worth US$70 million, in 1969.
The five-year agreement reached in Geneva last October by 10 leading sugar-producing countries became effective January 1. The export quota of the Republic of China was set at 630,000 metric tons, third after Cuba's 2.15 million metric tons and Australia's 1.1 million metric tons.
The international price was set at a minimum of US$0.0325 a pound and a maximum of US$0.525 a pound.
The Taiwan Sugar Corporation plans to produce 880,000 metric tons in 1969. In addition to the 630,000 metric tons to be exported under the Geneva agreement, 70,000 metric tons will be sold to the United States and 180,000 metric tons retained for local consumption.
Sugar exports totaled 646,000 metric tons in 1968 at an average price of US$64.60 per metric ton. Major buyers were Korea, 168,000 metric tons; Japan, 167,400; United States, 74,000; South Vietnam, 19,000; and other Southeast Asian ·countries, 127,000 metric tons.
The Republic of China is helping Rwanda establish a sugar refinery that will start production this month. An agricultural mission from Taiwan is helping to grow the cane.
Nearly 350,000 tourists in 1968
A total of 347,557 tourists came to Taiwan and spent US$64.72 million in 1968, according to the Tourism Council of the Communications Ministry.
Included were 54,787 American servicemen, mostly from Vietnam, Who came to Taiwan on rest and recuperation leaves. Of the 301,770 others, overseas Chinese accounted for 51,171.
The 301,770 non-U.S. military tourists represented an increase of 48,522 over 1967. Each stayed an average of 5.59 days and spent about US$31.58 a day for a total of US$53.27 million. The remaining US$I1.45 million was spent by American servicemen.
Japanese led the list of foreign civilians with 103,229 Americans were second with 76,118.
A Chinese delegation attended the 18th annual conference of the Pacific Area Travel Association in Thailand January 23-31. Last year's meeting was held in Taipei.
Headquarters of the Pacific Area Travel Association is in San Francisco. The 787 members include: 33 in government, 32 airline officials, 11 in shipping, 465 travel agents, 148 hotel officials, 40 news and magazine members and 58 others.
Work starting on new export zone
A sugar cane plantation of 115 hectares will become Taiwan's second export processing zone at Kaohsiung. This is 40 per cent larger than the first Kaohsiung zone. Factory premises will occupy 88 hectares and the rest of the space will be used for housing.
Construction of public facilities will start this month. The US$10 million cost will come from the Sino-American Fund for Economic and Social Development. Construction of factory buildings will begin in early 1970.
To make the most effective use of land, all buildings will be six stories or higher. There will be room for some 180 factories.
The second is located on a trunk railroad and highway. Kaohsiung harbor is only 10 miles away.
Factory buildings will be built by the government Investors will be offered long-term loans.
Incentives include exemption of import duty and other taxes on machinery and equipment, absence of import restrictions on raw materials and components, low wages and in expensive electric power.
The first zone will have 125 factories. Seventy-four are already operating. Philco-Ford is spending US$3 million to expand its electronics plant.
Exports were US$25 million in 1968 and will be US$60 million in 1969 and US$100 million in 1970. Employment exceeds 15,000.
Tung line begins global service
Some 500 years ago in the Ming dynasty, the explorer Cheng Ho took a fleet of 62 junks manned by 28,000 to Singapore, India, Aden and the Persian Gulf. Today the Chinese Maritime Trust owned by C. Y. Tung has a fleet of 80 modern vessels totaling 2.5 million tons carrying cargo and passengers around the world.
The Maritime Trust has cargo and passenger ships, bulk carriers and huge tankers. It has ordered six new tankers of 2 t 2,000 tons each.
The company has risen from obscurity in barely 20 years. In 1948, its 11,000-ton cargo ship Tung Ping crossed the Pacific. Flying the "Blue Sky and White Sun" national flag of the Republic of China, it docked at many ports in the Americas. Overseas Chinese were pleasantly surprised. The 'Ship was the first Chinese-owned and Chinese-manned vessel flying the Chinese f1a,g to call at ports in Central and South America.
The company now has regular service to Japan, Korea, Southeast Asia and North and Central America. Its ships called at ports in Europe and Africa.
Membership in the tightly restricted Far Eastern European Freight Conference was won in 1967. Cargo-passenger sailings now connect Taiwan and Britain on a monthly basis.
To complete its network of routes, the company's Oriental Overseas Line began round-the-world voyages January 11 with the 18,000-ton Oriental Rio.
Ports of call for five ships on the global run will be Keelung, Kaohsiung, Hongkong, Yokohama, San Francisco, Los Angeles, San Diego, Acapulco (Mexico), Cristobol (Panama), San Juan (Puefoto Rico), La Guaira (Venezuela), Rio de Janeiro, Buenos Aires, Durban (South Africa), Mombasa (Kenya) and Singapore.
The Oriental Rio has cargo capacity of 600, 107 cubic feet and accommodates more than 200 passengers. It has a swimming pool, ballroom and library.
C. Y. Tung was host at a reception aboard the Oriental Rio the day before the ship sailed from South America. Government officials, business leaders and members of diplomatic corps attended.
The Chinese Maritime Trust has its head office in Taipei. There are branch offices in Tokyo, Hongkong, New York, San Francisco and London.
No change in U.S. economic interest
The Nixon administration will maintain close economic relations with the Republic of China, according to William N. Morell Jr., counselor for economic affairs of the American Embassy in Taipei.
He said the new U.S. administration can be expected to encourage investment in Taiwan industries.
"I have been very impressed with the tremendous pace and vitality of the economy," said Morell, who arrived last October. "I agree with Minister K. T. Li that most of the problems that arise from dynamic growth can be handled pragmatically as they arise; these are 'work-out' problems."
Morell is an economist specializing in international economic relations, U.S. trade policy and East-West trade. He was counselor for economic affairs at the American Embassy in Moscow in 1960-61 and was awarded a Medal of Merit for supervision of research in international economic relations.
Morell said Taiwan's progress is to be attributed to the "wise economic policies" of the ROC government and the energy and skill of the Chinese people.
The American official said, "The government of the Republic of China has provided an excellent example of the way in which a country which previously received U.S. economic assistance can continue rapid growth on its own, and at the same time can now play a role in assisting other less developed countries to become more self-reliant and independent. The economic contribution of the ROC will contribute to the stability and security of Asia and of less developed countries in other areas as well."