Without precedents from international routine, the ROC and its partners are steadily improving their techniques for dealing with each other in the absence of formal diplomatic representation.
Recently, the Ministry of Foreign Affairs confirmed that the office of the Danish Trade Organization is to be inaugurated here next August. It will undoubtedly seek its own methodology, but to portray such offices' purposes, problems, and viewpoints in anticipation of the Danes' arrival, the Free China Review has conducted brief interviews with four such "unofficial" bodies here—the Japanese Interchange Association, the Netherlands Council for Trade Promotion, the Jordanian Commercial Office, and the American Chamber of Commerce.
Hara Fujio, director of the Japanese Interchange Association, was a minister with Japan's embassy to the Republic of China in 1968, a consul general in Hongkong in 1974, and was an Ambassador to Guatemala in 1977 and to Poland in 1980. An experienced diplomat, he answers questions smoothly.
Q. Mr. Hara, you were a minister with the Japanese Embassy to the Republic of China some years ago, and you were Ambassador to Poland before being assigned to your present position. What is the difference between an official representative and an unofficial one? Does it mean inconvenience in carrying out your job?
A. The difference is quite apparent, since I have already left the Ministry of Foreign Affairs and am here in a private capacity. Naturally, we are not accorded the privileges and immunities usually accorded to foreign diplomats or consular officers accredited here. But it does not mean inconveniences to the actual functioning of our office. Everything goes fairly well. I think this has a lot to do with the kind cooperation of our counterpart, the Far Eastern Relations Association, and concerned authorities here.
Q. Some scholars of international law suggest that Japan's severance of diplomatic relations with the ROC in 1972 and negotiation of unofficial arrangements to take their place was the pattern later copied by the United States. In other words, Japan created an international legal precedent. Do you agree?
A. In 1972, as Japan established diplomatic relations with the "PRC," we tried to maintain the commercial, cultural, and other ties among the people of Japan and Republic of China on a purely private basis. We have handled the matter pragmatically and not so much theoretically. I am not in the position to say whether Japan did act precedentially or not, but I repeat, with the kind cooperation of your people and authorities concerned, our office is running quite smoothly and effectively.
Q. Pan Am resumed its flights to Taipei this month, and now news has come out that Japan Air Lines would like to return to Taiwan too, in place of Japan Asia Airways. Since Japan Asia Airways is a Japan Air Lines subsidiary, why does JAL need to do this?
A. I heard indirectly that some people have commented that it is really artificial for JAL to fly to Peking while JAA flies to Taipei. However, I understand so far, the Japanese Government as well as JAL have not commented on this matter. At present, the air services between Japan and Taiwan seem to be operating without difficulties.
Musa Abu Taleb—A similar set of problems
Q. The unbalanced trade between Japan and the Republic of China has always been a major ROC concern. Would you tell us why it exists and what we can do about it?
A. I recognize that, although the trade relations between the ROC and Japan have deepened and been enlarged smoothly over past years, the trade imbalanced against the ROC is taken rather seriously by your people.
The enlargement of this trade imbalance is thought to be caused, to some extent, by the decrease of demand resulting from the present recession in Japan and the depreciation of Japanese currency—the "yen". Therefore, it is expected that the tendency toward imbalance should be remedied through the recovery of business activities and of the yen's value in Japan. In any case, it has been requested that Japanese importers endeavour to identify appropriate import items from the ROC, and the ROC to produce export items which are suitable for the Japanese market. At present, Japanese business circles sponsored by our Exchange Association are preparing to send an Import and Economic Relations Promotion Mission here this fall. I hope the mission will contribute to discovery of new import items as well as to improvement of our fundamental problems in the economic field.
Q. What is your opinion of the new large automobile plant to be set up as a cooperative venture of Toyota and the Republic of China?
A. The plant will contribute to strengthening economic ties between Japan and the ROC. I understand that Toyota is very sincere about this project, and with the cooperation of the Chinese side, it will and should be successful.
Wijncko Zwiers, representative of the Netherlands Council for Trade Promotion, has an international business background in the Far East and a background in Oriental philosophy. He discussed details of trade relations.
Q. What is the function of the Netherlands Council for Trade Promotion?
A. This office gives Dutch businessmen all assistance possible. For instance, we do market research and organize visiting programs for them; sometimes I accompany them to meet important officials here. I also provide information to Chinese businessmen who want to export goods to Holland.
Q. What are the main products in the trade between the two countries?
A. Handbags, footware, canned fish, textiles, and some electronic components are exported to Holland. Dairy products, heavy industrial machines, petrochemicals, and electronic components—like those of Philips—are imported by the Republic of China. From January to May 1983, Taiwan has exported US$154.9 million worth of goods to Holland, though Holland has only exported US$73 million worth to Taiwan. One of my missions is to expand and balance the trade between our two countries.
Q. New flights between Amsterdam and Taipei were inaugurated in April. In retaliation, Peking unilaterally suspended emergency access to the Canton airport by KLM, the Dutch airline. How do the Dutch react to that situation?
A. As you know, every governmental decision is a gain to certain groups and a loss to other groups. The new flights to Taipei certainly upset some people, but pleased our business community. Personally, I think it is a correct decision. Our diplomatic recognition of the mainland does not mean we should give up our business opportunities in the Republic of China. The Dutch are just as pragmatic as any other people.
Q. Denmark is to open a trade office here in August. It seems the international community is very active, moving to deal with us through "unofficial" organs. As this trend develops, how will it affect the Republic of China's international status?
A. I think the present trend is to your benefit. Your substantive relations with the rest of the world are very strong. Not only is a Danish trade office coming, I also heard Canada is going to set up an office in Taipei. There are quite a lot of countries for you to count. I think in the next ten years, many things could happen. There will be a positive affect on Taiwan's future. Much also depends on what will happen to Hongkong.
Herbert Peabody—No formal relations, but a close relationship
Q. What are the difficulties in promoting Holland's business here?
A. I don't see any important barriers, but your government tends to a little bit of protectionism and favoritism. For example, Heineken is a Dutch beer known worldwide. You can not find it in the local market, though you can find American beer here. Many people hope that I can bring in Heineken beer. I have discussed it at the Ministry of Economic Affairs, but the Taiwan Tobacco and Wine Monopoly Bureau will make the final decision. In any case, I believe the trade between the Netherlands and the Republic of China will increase, and I think we have lots more to offer besides submarines (The Netherlands is building two submarines for the Republic of China, despite consequent threats from Communist China—Ed.).
Q. What is your general opinion of our country?
A. I like people here. They are great workers. I like their high motivation. Also, the Netherlands and Taiwan have so many things in common. We are about the same size and have similar populations. Both started out with agriculture and now strive for high technology. Both countries' exports constitute more than 50 percent of their GNPs. I think we can understand each other very well.
Musa Abu Taleb, the Director of the Jordanian Commercial Office, is a student of Sinology. Before being assigned to his present position, he twice participated in Chinese study seminars at National Chengchi University here. He is also a student of the Chinese language.
Q. Mr. Abu Taleb, what is the function of your office?
A. This office was established in 1978 to facilitate the trade between Taiwan and Jordan. For example, exports to Jordan must be verified by this office. They need my chop and signature.
The trade between the Republic of China and the Mideast is very heavy, but Saudi Arabia is the only Mideast country having diplomatic relations with your country, and Jordan is the only Mideast country with a special trade office here. So I also find myself taking care of business on behalf of other Mideast countries. Also, I look out for overseas Jordanians and Jordanian students here. Incidentally, two of our students have just received their Bachelors in civil engineering here.
Q. As you said, Jordan is the only Mideast country with a special trade office in the Republic of China. Would you explain why?
A. Two reasons. First, the Jordan market has become a very important one to Taiwan, and vice versa. Jordan is being used as a base for expansion of the trade between the Mideast and Republic of China. Second, we Jordanians and your countrymen have a long term friendship—especially, our King Hussein and crown prince. Although our official diplomatic relations ended in 1977, officials of high position of both countries have visited each other frequently. Special training programs for our people in various fields are taking place in the Republic of China.
A sign of service for American business
Q. How do you view the trade between Jordan and the Republic of China? Do you see any problems?
A. The Republic of China is a free market, featuring many small companies. Facing so much competition, some of these small companies sharply lower their prices to make a deal. Sometimes they make changes in quality to make room for profits. Too much competition and low prices weaken Taiwan's bargaining position, and shifting quality hurts your credit.
Some of our Jordanian businessmen do not have enough marketing knowledge or experience. Surprised by the low prices here, they overpurchased—stocked too much inventory.
Q. How does Jordan, compared with the Republic of China, face problems in its approach to modernization?
A. On the way to modernization, we face the same problems. Both countries' economic development depends highly on exports; both lack natural resources. We both work hard to reach our goal—better life for tomorrow. Many Jordanian technicians, like your people, work overseas for Arabian countries and send back their checks. Actually, Jordan is the only Arabian country with no crude oil, but we enjoy the so-called petroleum money.
In terms of social disorders accompanying modernization, strong family ties and religious beliefs and consequent long term social stability make Jordan an area of very little crime in this world. I think we will maintain our luck.
Q. Islam is one of the major religions in the Republic of China. Do you see any differences between Islam as it is practiced here and in your country, since the Chinese have a historical tendency of shaping foreign religions into a Chinese way?
A. I am not quite sure that Chinese Moslems and Jordaman Moslems live exactly the same in every aspect, but I am very sure that the ritual conducted in the mosque which I attend every Friday is exactly the same as that in Jordan. Also I know that Chinese Moslems follow the rules during Ramadan. Chinese Moslems are like us.
Herbert Peabody, executive director of the American Chamber of Commerce in Taipei, was a military advisor with the former U.S. Military Assistance Advisory Group here. After living here for twelve years, he says he feels as if Taiwan is his second home.
Q. Mr. Peabody, why did you choose to live in the Republic of China?
A. I was here with the U.S. Army as a military advisor. When the time came for me to retire, I intended to go back to the United States. At that time, the Chamber wanted to hire an American to run the office. When I applied for the job, I was accepted. I like Taiwan and I like the people here.
Q. What is the origin and mission of the American Chamber of Commerce?
A. The Chamber was organized in 1951 by five American businessmen to help American businessmen in Taiwan. We do this in various ways.
First, we help by presenting their problems to the government of the Republic of China. In other words, we serve as spokesman for them in connection with problems involving all American companies here. Sometimes it is only a problem of misunderstanding regulations, and we arrange contact for them with the proper authority.
Second, we present our problems to the U.S. government, sometimes in the hope that a new law will be passed. For example, in connection with tax law and voting law—for a long time, you know, American overseas businessmen could not vote.
The president of the Chamber and I go back to Washington every year to meet people in Congress. We talk about Taiwan, bring it to their attention, and ask them not to let Taiwan down.
Third, we help our members fit into community life better. One of the things the Chamber helped with was in converting the former radio station of the American Forces Network here into International Community Radio Taipei. In that case, your Government Information Office has been a great help.
Q. How easy is the government of the Republic of China to get along with?
A. As I said, I go back to Washington in spring or early summer and attend meetings around Asia twice each year. I am always happy to tell people that we are the most fortunate Chamber of all. Your government is a very progressive government and we feel they are highly qualified and intelligent. They listen to what we say and even ask our opinions sometimes. We know they are not going to do what we ask on all occasions, but they are willing to listen. Taiwan is such a popular place for foreign investment, simply because foreign investors understand that the government of the Republic of China is interested in their problems and willing to help.
Q. How does the American Chamber of Commerce relate to the American Institute in Taiwan?
A. There are no formal relation between us, but we do work together closely. They have people on our committees as service members. When I receive questions from businessmen in the States, if I can not answer them, I pass them along to the trade center or to Mr. Lilley's (Director of AIT) economic section. If they have people coming with other types of questions, they pass them to me. We deal together frequently.
Q. Besides the approachability of our government, what are Taiwan's other attractions for foreign investment—the short-comings too?
A. I think the first magnet for investment here was the low labor price. But that is not as it used to be. There are other places where labor is cheaper. Now,he quality of labor here is high and their technical skills continually improving. That is a very important condition for any company with high technology. And your government wants to move up to higher levels of technology by bringing in companies with sophisticated know-how, such as ITT—and ATT is coming. But some companies have been reluctant to come to Taiwan because of product piracy (The legal penalties for product piracy have been increased sharply; in the most recent case, an E.T. pirate was sentenced to a stiff seven months.—Ed.).
Q. According to recent statistics and reports, the American economy is on its way to recovery. How will this affect the ROC's economy?
A. Because of the tremendous trade between our two countries, Taiwan's economic conditions go up and down with those in the United States. Now, everything shows that the American economy is getting better. Since Taiwan and the United States maintain such close economic ties, Taiwan's economy will be affected in a positive way. Your government is expanding its trade with European countries in order to reduce the influence of the American economy on your own. I think that is a very smart policy.