Senator Richard Stone, who played a major role in pas sage of legislation ensuring American support of the Republic of China in the face of recognition of Red China, said the U.S. government and people intend to see that the Republic of China develops a free and prosperous life.
The Florida senator was a principal speaker at a two-day meeting of 650 top corporate executives, including 240 from the business and government sectors of Taiwan, in Los Angeles.
Other addresses were made by K.T. Li, minister of state for the Republic of China; David Dean, managing director of the American Institute in Taiwan; T.K. Chang, chairman of the ROC-USA Economic Council; and Konsin C. Shah, the Washington representative for the Coordination Council on North American Affairs.
It was the first major meeting between representatives of the ROC and U.S. business communities since President Carter signed the Taiwan Relations Act.
Senator Stone said the United States and the people of China were entering a new era of their relationship.
"I do not dismiss as insignificant the doubts and fears which accompanied recognition of the 'Peking government' when I say that we enter a new period in our relationship on an even more firm footing than in the past," Stone said.
"Despite initial jitters early this year, the American people through their representatives in the Congress have spoken and spoken with clarity and effective ness. With the help of our council, my colleagues and I have drawn up - by statute as well as by expression of sentiment - a new and solidly - based relationship between the Republic of China and the U.S. There can no longer be any ambiguity about where the American people, the Congress and the government of the U.S. stand on this issue.
"We intend to see that the people of Taiwan have our continued support in their effort to develop a free and prosperous life. We also see them as the custodians of the long and honored traditions of Chinese civilization."
ROC - U.S. trade continuing to rise
Minister of Economic Affairs Chang Kuang-shih said in New York that in six years between 1980 and 1985, the volume of U.S.-ROC trade may aggregate more than US$100 billion.
Addressing a luncheon of the Far East-America Council of Commerce and Industry, Chang told some 200 American and Asian businessmen that trade between the two countries has been growing by leaps and bounds. He expects two-way trade this year to top US$9 billion and to reach US$12 billion in 1981.
Minister Chang said the ROC is confident economically and noted growth rates of 11.5 per cent, 8.5 per cent and 12.8 per cent in the last three years.
He said the ROC's targeted growth rate of 8.5 per cent annually from 1979 to 1981 can be attained without difficulty.
Chang attributed the ROC's success in economic development to its sound planning and balanced development.
Free China is trading with 146 nations and ranks 20th in terms of volume and 16th in terms of exports. The United States absorbs 30 per cent of the ROC's exports.
Chang said the Chinese government is lowering tariff barriers, encouraging transfer of U.S. technology to Taiwan and permitting 100 per cent ownership of enterprises established by foreign in vestment.
Capital-intensive industries favored
Major American companies have started investing in sophisticated capital-intensive industries in the Republic of China, Chang said, and American banks are continuing to extend long-term loans to Taiwan.
"The change in relations between the ROC and the U.S. has not yet produced adverse effects on our economic development," he told the Central Standing Committee of the Kuomintang.
Goals such as 8.5 per cent economic growth and US$27 billion in trade are likely to be surpassed this year, Chang said. Foreign and overseas Chinese in vestment may reach US$300 million, an increase of 50 per cent over 1978.
Industrial output continues to climb
Industrial production in the first five months of 1979 registered an increase of 13.4 per cent over the same period of 1978, the Industrial Development Bureau said.
An official of the bureau attributed the slower growth rate to oil price hikes and the energy shortage.
A breakdown of growth showed:
- Mining: an increase of 9.3 per cent over the January-May period of 1978.
- Manufacturing: up 12.7 per cent.
A. Heavy industry: up 17.7 per cent.
B. Light industry: up 6.6 per cent.
- Construction: up 23.7 per cent.
- Public utilities: up 15.9 per cent.
These were production figures of major industries in the five month period:
- Coal: 1,101,000 metric tons, down 7.2 per cent.
- Electrolytic copper: 6,172 tons, up 6.3 per cent.
- Sugar: 680,000 tons, up 10.4 per cent.
- Canned mushrooms, asparagus and pineapples: 4,845 standard cases, up 10.9 per cent.
-Cotton yarn: 60,310 tons, up 14.5 per cent.
- Man-made fibers: 248,300 tons, up 18.9 per cent.
- Plywood: 192.3 million square meters, up 15 A per cent.
- PVC: 178,000 tons, up 9.4 per cent.
- VCM: 148,200 tons, up 12 per cent.
- Chemical fertilizers: 587, 000 tons, up 11.6 per cent.
- Cement: 4,837,000 tons, up 6.4 per cent.
- Automobiles: 40,140 units, up 46.2 per cent.
- Power generation: 14,844 million kilowatt-hours, up 16.4 per cent.
- Steel bars and structural steel: 1,331,000 tons, up 36.2 per cent.
- TV sets: 2,166,000 sets, down 11.8 per cent.
- Electronic calculators: 2, 437,000 sets, up 8.6 per cent.
- Shipbuilding: 172,200 gross tons, down 20.4 per cent.
Petrochemical plant begins production
The China American Petrochemical Company Limited, a joint venture of three big companies, was opened in Taipei. With its plant at the Lin Yuan Petrochemical Industrial Complex in Kaohsiung, the company is planning to produce 150,000 MT of purified terephthalic acid annually.
Investors are the Chinese Petroleum Corporation, Amoco Chemicals Corporation of Indiana and the Central Investment Holding Company Ltd. Capital is NT$1,345,500,000 (about US$370,375,000). Plant construction began in April,1977.
A spokesman said:
"Since the annual production of polyester fiber in this country has grown rapidly to 330,000 metric tons, some 280,000 tons of PTA, the major raw material for the production of polyester fiber, is required. CAPCO plans to produce sufficient PTA so that the international shortages, high price and political influence will not affect domestic consumption."
CAPCO has invested heavily in pollution control. A thermal oxidizer, water scrubber and two absorber towers remove pollutants.
Investment record in sight this year
Foreign and overseas Chinese investment chalked up a whop ping increase during the first five months of this year, according to the Investment Commission of the Ministry of Economic Affairs.
Approvals of foreign and over seas Chinese investment projects amounted to US$145,951,000 for a gain of 136.64 per cent com pared with the same period of last year.
Foreign nationals supplied US$64,762,000 and overseas Chinese US$81,189,999. The increase of foreign investment was 109.64 per cent and that of overseas Chinese 163.34 per cent.
Investments in services led the way with a total of US$64.48 million. Then came electronics and electric appliances at nearly US$28 million, basic metals at US$11 million, chemicals at US$11 million, chemicals at US$9.98 million and foods and beverages at US$6.6 million.
There were 54 technical co operation agreements between lo cal and foreign investors during the period.
Investments by domestic companies in the first five months of the year totaled NT$67 billion (about US$1,861 million), an increase of 38 per cent over the same period in 1978.
The number of newly established companies and companies making reinvestments was 11,843, an increase of 35 per cent.
Big investors were:
- Business establishments NT$17 billion (about US$472 million).
- Manufacturing: NT$24 billion (about US$667 million).
- Public utilities: NT$7 billion (about US$194 million).
Airport provides trade show space
The China External Trade Development Council is opening a trade promotion center on the second floor of the Sungshan Airport.
K.H. Wu, secretary general of CETDC, said the "Trade Mart" will have an area of 60,000 square meters and house 144 exhibitions.
The Trade Mart is a scaled down model of the future Taiwan World Trade Center, Wu said.
CETDC will move its Export Products Display Center to the second floor of the airport terminal.
With a display area of 122,400 square meters, the center will have 1,188 booths, twice as many as at the former site.
CETDC's Exhibition Center will be moved to the first floor of the airport terminal. CETDC will sponsor several large-scale trade fairs in the area of 198,000 square meters.
Automakers show confidence in Taiwan
Taiwan's five automakers are undertaking big expansion projects.
They will invest NT$2.8 billion (about US$78 million) this year to boost combined capacity to 160,000 cars annually.
Another NT$2.4 billion (about US$67 million) will be invested next year to increase capacity to 240,000 cars.
The five are Yue Loong Motor Company, Ford Lio Ho Motor Company, San Fu Motor Industrial Company, Sanyang Industry Company and China Motor Company.
Except for the China Motor Company, which produces heavy and light trucks, the companies produce passenger cars and light trucks.
About 50,000 passenger cars were produced in 1978, up 56 per cent from 1977. Sales of passenger cars increased 58 per cent last year.
Production of light trucks was doubled to more than 20,000 units in 1978.
The Taiwan Machinery Manufacturing Corporation has signed an agreement with Chrysler Corporation of the U.S. to make large trucks and buses for domestic use and export.
Trade still gaining despite difficulties
Foreign trade in the rust five months of this year amounted to US$11,224.4 million, an increase of US$2,679.7 million or 31.4 per cent over the same period of 1978, according to Customs statistics.
Exports were valued at US$5,813.1 million, up 28.2 per cent over the like period a year earlier; imports totaled US$5,411.3 mil lion, up 35 per cent.
A favorable balance of US$401.8 million was registered. In May alone, the surplus was US$14.8 million in a two-way volume of US$2,399.8 million.
A breakdown of the trade structure showed:
1. Exports
- Agricultural goods: US$278.9 million, making up 4.8 per cent of the total.
- Processed agricultural goods: US$312 million or 5.4 per cent.
- Industrial products: US$5,222.2 million or 89.8 per cent.
2. Imports
- Capital goods: US$1,316.5 million, representing 24.3 per cent of the total.
- Raw materials: US$3,739.9 million or 69.1 per cent.
- Consumer goods: US$354.9 million or 6.6 per cent.
Japan was the No.1 supplier and the United States was the biggest market.
Exports to the United States amounted to US$2,0 12.5 million, accounting for 34.6 percent of the total. Exports to Japan stood at US$883.7 million or 15.2 per cent.
Imports from Japan reached US$1,765.4 million, making up 32.6 per cent of the total. Purchases from the United States were worth US$1,177.4 million or 21.8 per cent.
With trade volume of US$23,733 million, the ROC was the 21st biggest trading nation in the world last year, according to the International Monetary Fund.
IMF statistics showed that the United States led the world in trade with a two-way volume of US$326,796 million.
The Republic of China ranked 25th in 1977 and led the world in export growth last year at 35.7 per cent.
With exports of US$12,682 million, Free China was the 18th biggest exporting country in 1978. It ranked 25th in 1977.
Taiwan and Korea to be big markets
The Republic of China and the Republic of Korea will soon be reclassified as "mostly developed" nations and Japan will pass the United States in per capita income in the next five to ten years, Hennan Kahn says in his book World Economic Development.
Kahn says the Republics of China and Korea "should both be mass consumption nations" in 25 years.
"What has taken Japan 100 years to achieve - and other nations 200 - South Korea and the Republic of China are likely to achieve in 50," he adds.
Kahn is founder, director and chairman of the Hudson Institute. He believes the world is in the midst of a "great transition" lasting from 1800 to 2200.
Subtitled "1979 and Beyond," the book examines the prospects for world economic development, primarily in the period from 1978 to 2000.
Taiwan-made Peugeots go on sale soon
Sales of Peugeot 504 cars produced by the Yeu Tyan Machinery Manufacturing Company in Taiwan will begin soon.
A technician from the French automobile company is working at the plant in Yuanlin in central Taiwan. More French technicians will arrive soon.
Between now and the end of this year, Yeu Tyan hopes to turn out over 2,000 cars for local sale.
Already a leading manufacturer of Vespa and other motorbikes and machine tools, Yeu Tyan will increase production capacity to between 6,000 and 8,000 Peugeots next year.
In 1981, the company will boost production from 10,000 to 20,000 units. "We hope to turn out 100,000 cars in our fifth year of operation," an official said.
Yeu Tyan will produce only the Peugeot 504 in the rust year.
Whole plant sales show big increase
Taiwan exported 117 sets of plant equipment last year and earned US$28 million in foreign exchange for the Republic of China.
In 1977, Free China exported 79 plants worth US$23 million.
The average price was about US$240,000 per plant, compared with US$300,000 in 1978.
Developing nations in Southeast Asia, Latin America, the Middle East and Africa were the principal purchasers.
Included were machines for manufacturing cement, textile products, sugar, paper, processed foods and steel products.
Monopoly products sold at low prices
Prices of state-run companies in this country are lower than those for the same products produced in Japan and South Korea, according to a survey conducted by the Ministry of Economic Affairs.
Products included gasoline, diesel fuel and oil produced by the Chinese Petroleum Corporation, electricity from the Tai wan Power Company, sugar from the Taiwan Sugar Corporation and urea and ammonium sulfate from the Taiwan Fertilizer Company.
A price comparison follows: - Premium gasoline: NT$15 per liter in Taiwan, lower than the equivalent of NT$20.26 per liter in South Korea and NT$24.6 in Japan.
- Regular gasoline: NT$14 per liter in Taiwan; NT$17.26 in South Korea and NT$21.92 in Japan.
- Premium diesel fuel: NT$7 per liter in Taiwan; NT$5.64 in South Korea and NT$12.48 in Japan.
- Fuel oil: NT$3,l00 per kiloliter in Taiwan; NT$4,317.77 in South Korea and NT$4,136.44 in Japan.
- Electricity for lighting: NT$1.48 per kilowatt-hour in Taiwan; NT$3.4 in South Korea and NT$3.8 in Japan.
- Power NT$1.19 per kilowatt-hour in Taiwan, NT$1.73 in South Korea and NT$2.4 in Japan.
- Best quality granulated sugar: NT$20 per kilogram in Taiwan; NT$34.1 in South Korea and NT$37.4 in Japan.
- Urea: NT$6,080 per metric ton in Taiwan; NT$9,680 in South Korea and NT$9,870 in Japan.
- Ammonium sulfate: NT$3,790 per metric ton in Taiwan; NT$5,552 in South Korea and NT$4,731 in Japan.
Foreign banks still welcomed
Because of political stability and economic prosperity, many foreign banks are planning to set up branches or representative offices in Taipei. Foreign banks meeting the following requirements are eligible:
- Foreign banks of doing business with local banks for more than 10 years and engaged in exchange transactions exceeding US$100 million in the year prior to application.
- Foreign banks from countries where the Republic of China has branches. Only one bank from each foreign country is authorized to set up a branch in Taipei.
- Foreign banks doing business with local banks for more than five years and engaged in exchange transactions exceeding US$50 million in the year before application.
Fifteen foreign banks have offices in Taiwan: American Express International Banking Corporation, Bank of America, Bangkok Bank Ltd., Chase Manhattan Bank, Chemical Bank, Citibank, Continental Bank, Dai Ichi Kangyo Bank Ltd., Inter national Bank of Singapore Ltd., Irving Trust Company, Metropolitan Bank and Trust Company, Seattle First National Bank, Security Pacific National Bank, Toronto Dominican Bank and United California Bank.
Yachts record brisk sales abroad
Taiwan-built yachts are enjoying brisk sales abroad.
Taiwan yachts are of good quality but reasonably priced. Builders have enough orders to keep them busy through 1979.
Exports of more than 2,000 yachts will earn US$78 million in foreign exchange this year, compared with 1,600 craft worth US$56 million last year.
There are 60 yacht makers. About 50 per cent of parts are made in Taiwan.
The United States is the major market, taking 70 per cent of the output.
Exports to Europe account for 15 per cent and another 10 per cent go to Australia and Canada. The rest are exported to countries in Asia.
Although Korean builders are trying to compete with Taiwan, wages in that country are much higher than those in Free China.
Kaohsiung cargo shows increase
Kaohsiung Port is handling more cargo this year. Ships calling at Taiwan's biggest harbor numbered 6,778 in the January May period, an increase of 778 vessels or 12.79 per cent over the same period in 1978.
The port handled 204,305 containers in the five months, up 121,508 or 62.4 per cent. - Cargo totaled 25.51 million metric tons, up 6.19 million tons or 32 per cent.
Kaohsiung is the island's center of heavy industry.
Maize purchased from Thailand
Thailand will sell 300,000 metric tons of maize to the Republic of China in 1979-80, according to a draft agreement signed in Taipei.
Shipments will begin in October and end in February. The price will be determined by bidding or subsequent negotiation.
The Republic of China is expected to import 3.2 million tons of maize this year. Major suppliers are the United States and South Africa.