Opened on the potentially rich east coast was the island's third international port. In other "firsts," Taiwan's biggest dam was completed and the largest investment project of the last 10 years was carried out. To share its experience with other countries, free China sent 27 technical missions to 32 nations to assist both agriculture and industry.
Achievements were so impressive that the United States was considering a phase-out of economic aid in from two to five years.
The land reform program was completed on May 1, 1963, when former tenant farmers paid final installments for land purchased a decade before. Thousands of them gathered in front of the Taipei Provincial Museum, sang songs, and engaged in traditional lion dances.
Taiwan is predominantly agricultural, although only a fourth of its rugged land area is arable. Forty-nine per cent of its people are farmers and their dependents. Before land reform began in 1949, 62 per cent of them were tenants.
At that time they paid 50 per cent or more of the annual crop yield to landlords. They also paid bonuses for the privilege of tenancy and other fees. Leases were good for only a year and renewal could be refused by the owner.
Tenants provided their own tools and fertilizer, and built their own houses. Lack of capital and incentive resulted in poor production records. Farmers were unable to accumulate the wherewithal to become owners.
Houses were shabby and life was primitive. Children of many farmers had little schooling and illiteracy was common. With little stake in their own communities, farmers were not interested in politics.
Inadequate education and illiteracy chained farm families to the soil and prevented the development of scientific, progressive agriculture. Landlords had little interest in spending money for farm improvement, and farmers had no reason to work harder.
First Step in 1949
In 1949, a total of 296,043 tenant farmers signed six-year contracts with their landlords in the first stage of land reform. The contracts provided for the reduction of farm rent to 37.5 per cent of the main crop yield.
Sugar export earnings for 1963 topped US$100 million. (File photo)
Second stage of land reform began in 1951. On five occasions, 96,004 hectares (238,000 acres) of public land was sold to 165,443 tenant farm families. The reasonable price was paid in installments over a 10-year period.
The third stage began in 1953. The government bought 139,249 hectares (343,450 acres) of land from private owners and sold it to 194,823 tenants. The price was 2.5 times the yield of the main crop, payable in 10 years.
Land reform increased the number of farm families owning all or a part of their fields from 61 to 86 per cent. Their land increased from 57 per cent to 90 per cent of the island's arable area.
Farmers' income has increased dramatically. With 1948 as the base year, income soared by 49 per cent in 1949, 90 per cent in 1953, and 156 per cent in 1960. Rural savings had reached U8$12.5 million by 1963 and were still rising.
Production Gain
Agricultural production has advanced just as fast. The output of brown rice was 1,037,647 metric tons in 1948. By 1962, this had doubled to 2,110,000 metric tons. There is enough rice to feed Taiwan and provide for exports.
Living conditions of farmers are vastly improved. New houses have been built and the old ones turned into sheds. Cement grounds have been constructed for drying grain. Farmers' associations are prospering and loans are easy to get.
Farm prosperity means many new comforts. Most households now have sewing machines, radios, electric fans, and bicycles. Water no longer is carried from canals. Wells have been drilled and pumps installed.
Taiwan's largest dam and first multipurpose water project began releasing water last August. (File photo)
Tractors and power tillers are taking over from water buffaloes. Small farm machines not only take care of plowing and other field chores, but provide transportation to market.
Food is better and more varied. Malnutrition has all but disappeared.
Illiteracy is disappearing. Ninety-six per cent of elementary-age children are in school, compared with 77 per cent before land reform.
Farmers have become active in community affairs and politics. During the last decade, 35,413 of them have been elected to public office. They control their own associations, which previously were controlled by landlords.
Land Consolidation
While land reform was still in progress, the government launched a land consolidation program. The aim was to create efficient rectangles from the scattered, irregular farm plots, and to utilize the land to the fullest extent.
In May, 1963, the Taiwan Provincial Government announced that as a result of the land consolidation program, per hectare yield had increased by more than 30 per cent. The project, started in 1958, benefited 300,000 hectares of land. According to TPG estimate, 86,000 metric tons of rice each year would be added to the island's production. The increase of agricultural production was attributed to these factors:
—Most farmers now have their land all in one accessible piece. They no longer have to walk from one plot to another.
—Irrigation canals feed the farmers' paddy directly. Previously the only water available often trickled in from neighbors' fields.
—With large rectangular fields, such improved technique as close planting can be adopted to boost the yield.
—Better drainage has lowered the underground water level and permitted inter-planting of wheat, sweet potatoes, rape seed, and legume crops.
Tidelands Program
To obtain more land to raise more food for an increasing population, still another program was undertaken-tidelands reclamation.
Established on May 3, 1963, a Tidal Land Development Committee will carry out the US$75 million plan in a series of stages. Dr. Fritz-Ferdinand Zitscher, a United Nations advisor, estimated Taiwan has 53,800 hectares (132,886 acres) of tidal land that can be reclaimed.
Tidelands will produce seafood, salt, rice, sugar, and timber. A livelihood will be provided for 100,000 persons.
Farmers in northern Taiwan rejoiced at 1963 completion of Shihmen dam, the island's largest. The multipurpose reservoir began releasing water August 12 to irrigate 58,000 hectares (142,860 acres) of farmland in the Taoyuan area.
Construction of the US$67 million dam began in 1956. In addition to boosting rice production by 70,000 metric tons, it will generate an annual 230,000,000 kwh. of electricity for industrial and domestic use.
Power Output
Island power generation had reached 4,150,000,000 kwh. annually even before the completion of Shihmen dam. In 1963, the Taiwan Power Company completed the third unit of the Nanpu thermal power plant and started building another unit at Shenao thermal station. Nanpu, one of the biggest thermal plants in Asia, covers an area of 10.1 hectares (25 acres) near Kaohsiung harbor in southern Taiwan. Shenao is in the north-eastern part of the island. Taipower owns and operates 32 plants, of which 24 are hydroelectric and 8 thermal.
The largest industrial project of the last decade, completed in 1963, is the US$22.5 million ammonia-urea plant built by the Sino-American Mobil China Allied Chemical Industrial Ltd. It began operations at Miaoli in northern Taiwan in December.
The plant also is the largest foreign investment project implemented since the government promulgated the Statute for Encouragement of Investment in 1960. It was financed by the Chinese Petroleum Corporation of the Republic of China and the Socony Mobil Oil Company and the Allied Chemical Corporation of the United States.
Using natural gas as raw material, the plant will produce 100,000 metric tons of urea and 45,000 metric tons of ammonia annually. Completed near by at the same time was a US$2 million plant built by the Chinese Petroleum Corporation to supply 400,000 cubic meters of natural gas a day.
The installations make Taiwan self-sufficient in nitrogenous fertilizer and save US$10 million in imports annually. Taiwan has eight fertilizer plants, seven owned by the Taiwan Fertilizer Company and one by the Kaohsiung Ammonium Sulphate Corporation.
Place to Invest
The completion of the urea plant points up Taiwan as a good place to invest. Other important investment projects completed in 1963 included a US$750,000 pharmaceutical plant by the Taiwan Pfizer, Ltd., in July.
K. T. Li, vice chairman of the Council for International Economic Cooperation and Development, declared in December that in the last decade, the Chinese people in Taiwan, with the aid of foreign investment, have built 12,000 factories to bring about a 300 per cent increase in industrial production.
He enumerated principal industries already established as power, petroleum, sugar, textiles, fertilizer, aluminum, automobiles, shipbuilding, machinery manufacturing, iron and steel, electrical appliances, pharmaceuticals, canned food, cement, paper and pulp, plastics, chlorine and alkalies, glass, rubber products, plywood and artificial board, monosodium glutamate, tea and camphor.
Large Industries
In an interview with a trade publication, he said the Chinese government hopes to interest overseas investors in such large industries as steel mills, petrochemical plants, manufacture of raw materials for plastics, synthetic fibers, electronics, opticals, small machinery, clocks and watches, and hand tools. The petrochemical industry, which uses natural gas as raw material is especially suitable for overseas investment, he said, because the foundation of the industry already has been laid by the Chinese Petroleum Corporation.
Sino-American investors put up US$22.5 million for fertilizer plant completed late in 1963. (File photo)
For overall economic development, Li said these are the guiding principles for the future:
—Development of basic industries. The government has increased the power supply and installed a well-organized transportation network. Emphasis will be placed on continuing development of power and transportation, and expansion of steel, coal, petroleum, cement, machinery, and chemical industries.
—Coordinating industry with agriculture. Farmers have been encouraged to grow sugar cane, pineapples, and mushrooms for export. Continuous expansion of the chemical fertilizer industry has assured an increased domestic supply.
—Full utilization of local natural resources. The cement industry has been developed by using the rich supply of limestone, the caustic soda industry by making use of the supply of salt, and the glass industry by using glass sand and dolomite. The abundant supply of natural gas is being used for development of the petrochemical industry.
—Developing labor-intensive production activities. The handicraft industry, for example, has provided jobs for more than 50,000 persons at 1,500 workshops. Emphasis will be placed on industries that can offer such large employment opportunities.
—Encouraging export processing industries. With low wage levels and sufficient skilled workers, Taiwan is a favorable place for developing such export processing industries as textiles and plywood with raw materials imported from abroad. Duty paid on raw materials for subsequent export is rebated in full.
—Promoting diversification of production and exports. Major industries, such as aluminum and petroleum, have been emphasizing diversification of their products. Also, the government has been encouraging expansion of exports to as many countries as possible.
Exports for 1963 reached US$360 million, breaking all records since the Chinese government moved its seat to Taiwan in 1949. The figure was a 50 per cent increase over the 1962 record of US$240 million and a 400 per cent jump over the US$93 million of 1950.
Industrial Gain
Imports for 1963 totaled US$330 million, including those made with government exchange and U.S. aid financing. The favorable balance, therefore, was US$30 million. It was the first such balance since 1945, when Japan returned Taiwan to China. In 1962, the deficit was US$85 million, counting U.S. aid as imports.
Industrialists were gratified to note that in 1963 the export of industrial products had increased to 40 per cent of the total. The rate in 1950 was only 7.3 per cent. Such traditional items as cotton textiles, timber manufactures, iron and steel products, chemicals, cement and paper led the way. But also on the list were such newer products as fuel oil, gasoline, urea, electrical appliances, and pharmaceuticals.
Before 1963, more than 50 per cent of Taiwan's exports went to Japan and the United States. Last year's trade record showed sales to 78 countries, seven of which bought more than US$10 million each. These were the United States, Japan, Hongkong, Vietnam, Korea, Singapore, and West Germany.
As trade grew, Taiwan built its third international port at Hualien, facing the Pacific. The two others are Keelung in the north and Kaohsiung in the south, both looking west toward the Taiwan Straits.
The new port was inaugurated on September 1, 1963, after three years of expansion. It is capable of accommodating ships of 10,000 tons. Waterways are 9 meters deep and 20 meters wide.
Sharing With Others
Hualien harbor is expected to boost the economic growth of the underdeveloped east coast. The island has an area of 13,885 square miles but more than 90 per cent of its population of more than 11,600,000 reside on the plains of the west coast.
Island's third international port was opened at Hualien on the east coast last year. (File photo)
East Taiwan is well-endowed with natural resources. They include timber, sugar cane, limestone, asbestos, gypsum, white marble, and other minerals.
As the people of free China made progress for themselves, they shared their experience with the people of other countries.
In 1963, the Republic of China sent 27 technical missions to 32 countries to offer farm and industrial assistance. The teams went to Africa, Latin America, and Southeast Asia. As 1964 began, several additional countries were expressing interest and old contracts were being renewed.
At home, the Republic of China conducted an agricultural seminar for 42 farm technicians from four Southeast Asian countries. Three such seminars had been held for more than 100 technicians from a score of African countries.
The good year of 1963 had closed. Now the challenge of 1964 was being faced, and confidently, despite the difficulty of continuing to set new records. Free China was confident the teamwork of free enterprise, democratic government, and a hard-working people would assure new achievements and uninterrupted progress.