Two projects were proposed to the newly inaugurated Asian Development Bank by the Republic of China last month. They are: establishment of an agricultural technical exchange center and creation of an Asian food and fertilizer bank.
The recommendations were made by P. Y. Hsu, governor of the Central Bank of China, at the inaugural meeting of ADB's board of governors. About 520 delegates of 32 nations attended the meeting in Tokyo November 24-27.
Hsu pointed out that developing countries of Asia want to industrialize. But he noted that the Republic of China's experience has shown that the first step toward industrialization is a strengthening of the agricultural base. Food is important to all countries, but especial1y so to low-income countries because proportionally their people spend much more on food.
Only when the people of the farming community have a surplus of food or other agricultural products will they come to be the market that industry must have, Hsu said.
"For this reason," Hsu continued, "we submit in its leading and promotional operations at the initial stage, the Asian Development Bank should place a high priority on agriculture."
"Especially," Hsu said, "I would like to draw attention to two projects of a regional character. One project calls for the setting up of an agricultural technical exchange center to provide machinery for the interflow of information on regional agricultural development, for the exchange of experts, and for agricultural research and training.
"The other is the regional food and fertilizer bank project. Briefly, the idea is to help adjust food supply between food surplus and food deficit countries and to harmonize regional fertilizer supply and demand.
"Implementation of this project will bring about much closer regional cooperation. Experience shows that external financing has not been very effective in terms of assistance to the agricultural sector because of its limited capacity to use foreign exchange. Such a bank or pool, however, would regulate the supply of food and fertilizer, and it should be of real help to a number of countries. "
Hsu pointed out that the idea of a food bank is far from new. "Some nine hundred years ago," he said, "the Chinese statesman and philosopher Wang An-shih advocated the establishment of a food bank to assure price stabilization in fat years and lean.
"Wang An-shih's idea of an 'ever-normal granary' was espoused some 30 years ago by the great American agriculturalist Henry Wallace, who later became vice president of his country.
"What is new in the present project is that it envisages a scope beyond national boundaries, and also combines food with chemical fertilizers, which were unknown during Wang An-shih's day in the 11th century."
Hsu said China is optimistic about the future of the Asian Development Bank. "We believe the institution will do great things to assist in the economic development of the member countries, and to cement further economic cooperation among countries in this region," he said.
The Asian Development Bank was formally established at Manila on December 19. It seeks to:
-Bring an Asian viewpoint to bear on regional problems.
-Provide an institution attuned to Asian economic needs.
-Provide the nucleus for economic cooperation.
-Bring together significant amounts of capital from Asian and other interested countries.
-Stimulate the flow of public and private capital into Asia from other areas.
-Provide a channel through which government can make funds available for special purposes or on special terms, including soft loans over long terms at low interest rates.
ADB has 18 regional members and 12 non-regional members including the United States, Britain, Canada and West Germany. Its capitalization is US$1 billion, of which the Republic of China bas pledged US$16 million.
Hsu went to Tokyo with Sung I-shuan, deputy assistant governor of the Central Bank of China. From Tokyo, Hsu proceeded to Bangkok for the China Day celebrations at the first Asian International Trade Fair. He visited Saigon before returning to Taipei.
In November, Chien Chang-tsu, vice chairman of the Foreign Exchange and Trade Commission, attended a trade promotion conference sponsored by the United Nations Economic Commission for Asia and the Far East, which also sponsors the Asian Development Bank. Chien emphasized that free trade is important to the economic development of Asia.
Pact With Thailand
The Republic of China and the Kingdom of Thailand signed a trade agreement in November. Signing at Bangkok were Chinese Ambassador Gen. Peng Meng-chi and Thai Minister of Foreign Affairs Nai Thanat Khoman.
Chinese Minister of Economic Affairs K. T. Li, who was in Bangkok at the time, said the pact would promote commerce between China and Thailand.
He said the agreement pledges effective measures to develop trade to the fullest extent possible. It also extends most favorable nation treatment on the part of both.
The agreement is effective for a year and will be extended automatically unless notice is given 90 days before expiration.
Minister Li went to Bangkok to attend an Asian conference of Chinese chambers of commerce. He was accompanied by K. H. Wu, director of commerce of the Ministry of Economic Affairs.
The Asian conference of Chinese chambers has been held annually for several years. 1t emphasizes cooperation among Chinese businessmen in Asia and the Pacific. At Bangkok, a resolution was passed to boycott Chinese Communist commodities.
Attending were representatives from the Republic of China, Korea, Japan, the Ryukyus, Hongkong, Macao, Vietnam, Malaysia, the Philippines, Laos, Burma, Australia, Indonesia, New Zealand, the United States, Canada and Thailand. There were observers from Argentina, France, and the Malagasy Republic.
After visiting the first Asian international trade fair at Bangkok November 17, Minister Li said the exhibition was to the credit of Thailand and other Asian countries. The Republic of China displayed industrial manufactures and agricultural products.
Minister Li said Thailand had agreed on closer industrial and trade cooperation with the Republic of China.
"When Thailand receives an order which it cannot fill," Li said, "it will refer the order to Taiwan manufacturers. Taiwan will do the same. Orders for marble products provide an example. Thailand produces marble for decoration but Taiwan also has marble for construction. So if there is an order for both, we will fill it on a cooperative basis."
China and Thailand have increased trade in recent years. Major imports from Thailand are jute, beans, and leathers, while exports to that country are mostly chemicals, machinery, and textiles.
In November, the engineering corps of the Vocational Assistance Commission for Retired Servicemen won a Thai contract to build 80 kilometers of highway. Construction began in January and cost about US$5 million.
The BES Engineering Corporation, a government enterprise, already has built 98 kilometers of Thai highway: the Korat-Nongkai Highway sections from Korat to Banwat and from Muangphol to North Banphai.
Advertising Congress
Advertisers, advertising agencies, and communications media in this part of the world have decided to organize an Asian and Pacific Advertising Association with Mrs. Nancy Yu Huang, publisher of the English-language China Post of Taipei, as provisional chairman.
This was the most important decision of the fifth Asian Advertising Congress in Taipei November 4-9 with the participation of more than 500 delegates from 15 nations: Korea, Japan, Hongkong, the Philippines, Thailand, Malaysia, Singapore, India, Pakistan, Israel, Britain, the United States, Australia, New Zealand, and the Republic of China.
Sponsors of the congress were the Chinese Publishers Association, Chinese Association of Advertising Agencies, and Chinese Advertising Association. The Filipino delegation was the largest with 123 members, followed by the Japanese with 91. Many leading figures of Asian advertising agencies and communications media were present, including Tsuneji Hibino, president of Japan's Dentsu Advertising Ltd.; Aw Sian, manager director of Hongkong's Sin Poh H.K. Ltd.; and Adrian Zecha, publisher of Asia Magazine.
President Chiang Kai-shek sent a message to the congress expressing hope that a prosperous advertising business can promote the development of industry and trade and accelerate economic advance. He said he hoped the Asian advertising congress would help raise the living standards of the Asian people, increase cultural exchange within the region, and lead to better understanding among the people of Asia and closer cooperation among Asian nations.
Premier C. K. Yen pointed out that for both domestic and international purposes, quality is what really counts in the effectiveness of advertising. He said an advertisement should provide all necessary and relevant information. The ad also should be intelligent, and make sense to the end-users of the commodity or service. It should be interesting, too.
"However," he said, "by far the most important attribute of good and effective advertising, in my way of thinking, is honesty. We have in China a proverb to the effect that the name and the reality must tally. It is perfectly correct to make an advertisement as interesting and attractive as possible, but it must represent the true merits of the commodity or service advertised."
P. Y. Hsu, chairman of the Foreign Exchange and Trade Commission, reported that in the Chinese government's promotional efforts on trade, "we put every emphasis upon the maintenance of our commercial reputation. Our exports are carefully inspected to ensure uniform quality. We urge our traders to live up to their contractual stipulations. Banks arc most scrupulous in meeting all their external obligations, promptly and in full. "
K. T. Li, minister of economic affairs, told the congress that advertising has a very long history in China. In ancient times, he said, such slogans as "Genuine products, honest prices" and "We cheat neither children nor the aged" were widely used in business. Signboards and posters were common.
For the first two days, the congress was divided into groups to discuss various subjects. James Peter Chin, vice president of Dunlop and Malaysian Advertising Association, discussed the role of the Asian advertiser and his functions, ethics, and obligations in contributing to the growth of the economy.
The Malaysian delegate suggested that to raise quality, "we should institute a training program, hold a number of seminars, establish, for instance, a journal on Asian advertising, above all, promote local and regional congresses similar to the one we are now attending. In some advance areas, the advertisers and the advertising agencies' associations have begun organizing schools of advertising as well as local seminars. But taking Asia as a whole, I venture to be provocative again by saying that in these salient matters, Asia is regretfully years behind her sister continents elsewhere."
Arthur W. Gough, advertising manager of the Straits Times Press (Malaya) Ltd., said that Asia as an area of development is experiencing now the same problems of ethics and good taste that have been experienced on a worldwide basis. He said that all advertising should be presented as an essential service to modern life.
Steuart Henderson Britt, professor of marketing and advertising at Northwestern University, said that some serious problems exist for Asian advertisers and advertising agencies.
He said the first and most basic problem is the lack of sufficient marketing data. Next, he said, too may advertising managers and agency men in Asia look to the United States for guidance in marketing, and especially in research.
The congress was held at Taipei's Ambassador Hotel. The next meeting will be at Kuala Lumpur in 1968.
Delegates were invited to see an exhibition of advertising design, and publications entered by Australia, the Philippines, Japan, Malaysia, Singapore, Britain, Hongkong, and the Republic of China.
To see that the delegates' wives had an interesting and pleasant stay in Taiwan, the International Taipei Zonta Club offered tours of shopping centers, the Chinese National Palace Museum, and the Taiwan Handicraft Promotion Center.
Delegates were invited to visit a plant of the Taiwan Fertilizer Company, the Liutu Industrial District, and the Taiwan Electronics Corporation.
No Red Goods
The Executive Yuan (Cabinet) announced measures last month to tighten controls barring Communist Chinese goods. Severe punishment will be meted out to smugglers.
The announcement said that except for Chinese herb medicine for which no substitute is available and which has received prior approval from the Foreign Exchange and Trade Commission, imports from Communist China are prohibited. Included are commodities produced, manufactured or processed by the Chinese Communists.
If the goods are brought in by foreign visitors or overseas Chinese, they will be held by customs until the owners leave Taiwan. Absence of labeling does not affect the prohibition.
The Taiwan Garrison Command will watch local markets to detect commodities from the mainland. Sellers or displayers will be required to reveal how and from whom they obtained such goods. Shipments from Hongkong and Macao will be closely screened.
The announcement said that the government will collect samples of Chinese Communist products in many places, including Hongkong and Macao, to help train inspectors. Any commodities found will be confiscated.
This is the latest announcement on the prohibition of Communist goods. Since the Chinese government moved its seat to Taiwan in 1949, it has not permitted imports from Red China or other Communist states. However, smuggling has been common, especially of foodstuffs.
The Chinese government has stipulated that to bar imports from Communist states in Eastern Europe, commodities from West Germany, Switzerland, Denmark, and other European countries must be accompanied by a certificate of origin. If goods arc transshipped in Hongkong, a certificate from the European country's Hongkong consulate also is required.
In recent years Taiwan has expanded exports to the United States, which also bans imports from Communist China. A certificate of origin system has grown up in this trade. At the request of the U.S. government, Taiwan products that also are produced in Communist China must be accompanied by a certificate issued by the Ministry of Economic Affairs.
Some Taiwan goods are purchased in Hongkong and Macao by American traders. So the government has stipulated that for shipments to the two colonies, products must be clearly labeled "Made in Taiwan, Republic of China" in both Chinese and and English. Local trade circles claim canned mushrooms from the mainland are given Taiwan labels and sent to Hongkong to be offered to American buyers.