Exports surpassed imports by US$700.7 million in the first 11 months of 1973. US$4,041.9 million worth of commodities was exported, an increase of US$1,378 million or 51.7 percent over the corresponding period of 1972.
Imports totaled US$3,341.2 million, up by US$1,081.1 million or 47.8 percent.
Two-way volume hit US$7,383.1 million for growth of 49.9 percent.
Industrial commodities accounted for 84.1 percent of exports. Value was US$3,400.6 million.
Farm products worth US$314.8 million made up 7.8 percent of exports. Processed agricultural products totaling US$326.5 million made up the remaining 8.1 percent.
Raw materials worth US$2,014.8 million constituted 60.3 percent of imports. Capital ranked second at US$1,133.2 million (33.9 percent) and consumer goods third at US$193.2 million (5.8 percent).
Exports of manufactures showed an increase of 79.1 percent. Major items were textiles, electrical apparatus and plywood.
The United States remained Taiwan's biggest customer, buying US$1,518.1 million worth of commodities (37.6 percent).
Japan followed with purchases totaling US$749.6 million (18.6 percent).
Exports to Hong Kong totaled US$266.6 million (6.6 percent).
Imports from Japan totaled US$1,278.5 million (38.3 percent). The United States ranked second with US$813.7 million (24.4 percent), followed by West Germany with US$175.5 million (5.3 percent).
Tariffs reduced on consumer goods
Tariffs for 36 categories of food and other consumer goods were cut by 25 to 50 percent to facilitate their imports and help combat the rising cost of living.
The lower rates will remain in force until December 6.
Cut by 50 percent were duties on meat broth, chopped meat, pasta, tomatoes, cabbage, pickled vegetables and toothpaste.
These were other reductions:
- Mutton: From 30 to 20 percent.
- Fish (dried, smoked and salted): 65 to 46 percent.
- Shellfish: 78 to 46 percent.
- Potato meal: 65 to 33 percent.
- Edible oil: 39 to 26 percent.
- Seasonings: 104 to 60 percent.
- Soap: 65 to 50 percent.
- Detergents: 65 to 33 percent.
- Plastic tubes, rods and plates: 46 to 33 percent.
- Toilet paper: 65 to 50 percent.
- Cotton knitwear: 72 to 55 percent.
- Synthetic fiber underwear: 104 to 75 percent.
- Bed sheets, towels and tablecloths: 72 to 55 percent.
A total of 69 hectares of land was reclaimed in the expansion of Kaohsiung harbor more than seven years ago. An economic experiment undertaken on the site has succeeded beyond expectations.
Processing Zone experiment pays off
The Kaohsiung Export Processing Zone is operating at full capacity and has earned at least US$200 million for the Republic of China.
A combination of free trade zone and industrial park, KEPZ facilitates investment by providing developed plant sites and tax incentives, promotes the processing of imported raw materials for export, creates employment opportunities and introduces new production techniques together with the inflow of overseas capital.
On its seventh anniversary in December, KEPZ had 160 plants with US$48.4 million invested. Production was under way at 153 factories.
Employment at KEPZ totaled 55,000. Exports were US$815 million in the seven years.
Two other zones were opened in 1969.
With area of 122 hectares, the Nantz Export Processing Zone is 11 miles north of Kaohsiung.
When in full operation, NEPZ will have 200 factories and at least US$30 million in investment. NEPZ began accepting applications May 1, 1970.
Twenty-seven enterprises with projected investment of US$11.9 million have been approved. Employees number 15,000.
The Taichung Export Processing Zone near Taichung in central Taiwan has an area of 23 hectares and will accommodate only 50 factories. Preference is given to precision industries. TEPZ will attract US$7 million in investment and at present employs 8,000.
Employment of the three zones will exceed 100,000 when all are in full operation.
The three EPZs have 218 factories in production and 55 preparing to get started. Combined investment is US$113.55 million and combined exports have reached US$932 million with US$400 million in 1972.
Funds earmarked for infrastructure
The Republic of China will invest more than NT$81,355,000,000 (US$2.14 billion) to expand its infrastructure and bring industrial development to a higher plane in the next five years.
The money will come from the government budget, foreign loans and private investment.
Premier Chiang Ching-kuo has declared the government will strive to complete nine big projects by the end of 1978: Taichung Port, Taoyuan International Airport, Suao-Hualien Railway, petrochemical complex in southern Taiwan, North-South Freeway, Suao Port, rail electrification, integrated steel mill and shipyard in southern Taiwan.
"The figure (US$2.14 billion) is only a tentative estimate," a government source said. "Financing is a major problem because the projects are being undertaken at the same time."
The government's budgetary surplus is about to be eaten up by price subsidies for soybeans, petroleum, steel and other items.
When fiscal 1973 ended June 30, the government books were NT$7 billion in the black. There may be no surplus in the 1974 fiscal year ending next June 30.
The government has been relying heavily on U.S. Export-Import Bank loans. Borrowings total US$1 billion.
Henry Kearns has retired as president of the Exim Bank. It remains to be seen whether his policy of "unreserved support" of ROC loans will continue to apply.
Following is a resume of the nine projects:
- Taichung Port to be completed by October, 1976, will cost NT$ 7.9 billion.
- Taoyuan Airport, which will be ready for use in 1977, will cost NT$5,745,400,000 in the first phase.
- Suao-Hualien Railway, expected to open to traffic at the end of 1977, will cost NT$2.7 billion.
- Petrochemical projects include second and third naphtha cracking plants and a DMT plant. These are expected to be completed in 1977 at a cost of NT$3.8 billion.
- North-South Freeway first and second stages will cost NT$6,301,770,000 and NT$10,728,820,000, respectively, with completion in 1977.
- Suao Port will cost NT$4 billion and relieve congestion at Keelung and Kaohsiung by 1978. Completion is set for 1981.
- Railway electrification will be completed in May of 1977 at a cost of NT$10 billion.
- The steel mill will be built with the assistance of the U.S. Steel Corporation, biggest steel maker in the world. Completion is set for late 1977 at a cost of more than US$300,000,000.
- The China Shipbuilding Corporation, a joint venture of the ROC, United States and Liberia, has capital of US$27.5 million. The new shipyard at Kaohsiung will be in business by December of 1976.
Industry to grow despite shortages
Industry will grow by 22.7 percent this year, down slightly from the 24 percent of 1973, the Industrial Development Bureau predicted.
An IDB official attributed the slowdown to the reduced supply of raw materials.
"Raw materials are hard to get now and there is no sign that the problem will be solved soon," he said.
Taiwan relies heavily on imports for raw materials.
About 85 percent of Taiwan exports are industrial products.
This is the breakdown of projected industrial growth.
- Mining: 4.5 percent.
- Manufacturing: 24 percent including:
a. Heavy industries: 30.6 percent (chemicals, 21.5 percent; petroleum, 25.6 percent; basic metals, 19.7 percent; machinery, 59.3 percent; electrical machinery, 38.4 percent; transportation equipment, 20.1 percent).
b. Light industries: 20.4 percent (textiles, 28.6 percent; food processing, 3.2 percent; timber products, 24.8 percent; and non-metal manufacturing, 5 percent.)
- Construction: 33.9 percent.
- Public utilities: 15.5 percent.
Refinery capacity will be increased
The Chinese Petroleum Corporation will have a refining capacity of 500,000 barrels of oil a day by 1977. CPC capacity is 200,000 barrels from seven plants.
An eighth refinery complex with daily capacity of 100,000 barrels will become operational in June. It is located at Kaohsiung.
A ninth refinery in northern Taiwan will be producing 100,000 barrels daily in 1975.
Another complex with daily capacity of 100,000 barrels will be in operation near the Talin thermal power station in southern Taiwan by the end of 1975.
CPC's domestic sales in the 1973 fiscal year totaled NT$15,640 million (US$411 million), an increase of 25.9 percent. "Exports" totaled US$45.45 million, mostly to aircraft and ships visiting Taiwan.
A 13 percent increase was registered in sales of natural gas. Volume was 1,321,737,000 cubic meters.
Fuel and oil sales totaled 10,615,000 kiloliters in fiscal 1973, an increase of 30.2 percent. A total of 127,000 metric tons of petrochemicals was sold, up by 30.3 percent.
100 million tons of coal can be mined
Coal reserves total 240 million tons but only 100 million tons can be commercially exploited, according to estimate of the National Science Council. The present rate of production is 3.5 million tons annually.
As of the end of 1971, there were 180 coal mines. They produced 4.1 million tons.
The 1973 output was 3.3 million tons, a drop of 300,000 tons from 1972.
Seams are running out and costs are rising.
To encourage the industry in the face of the energy shortage, the government will spend NT$100 million (US$2.63 million) to tap reserves under the sea.
Taiwan hopes to mine 3.5 million tons of coal annually by 1975.
Before 1965, coal was a major source of energy in Taiwan. Between 1965 and 1968, an average of 5 million metric tons was mined annually.
Five petrochemical plants to be built
Five petrochemical plants will be built in southern Taiwan with US$29.9 million in foreign capital.
They will be served by the third naphtha cracking plant, which will begin producing 400,000 metric tons of ethylene annually in 1975. The cracker is at Pingtung, 12 miles west of Kaohsiung, where the Chinese Petroleum Corporation has two other naphtha cracking plants.
Hercules BV of Holland is involved in two investment cases. Hercules will invest US$5.4 mil lion in a DMT factory. Local partners will include CPC and Taiwan textile companies.
About 80 percent of annual output of 100,000 tons of DMT will be exported.
In the other case, Hercules will spend US$2 million and join local investors in building a polypropylene plant with annual capacity of 50,000 metric tons.
Of the US$29.9 million, US$4.5 million will come from Gulf Oil Corporation of the United States, which will join local entrepreneurs in building a low-density polyethylene plant. The local investors will put up another US$50 million for a plant with annual capacity of 100,000 metric tons. Over 25 percent of the products will be exported.
Another US$12 million was pledged by the USI Far East Corporation of the United States to expand its Taiwan polyethylene production by 110,000 metric tons annually.
Amoco International Ltd. of Bermuda will spend US$6 million and local investors US$56 million for a PTA plant. Of the annual capacity of 150,000 metric tons, 80 percent will be exported.
Manufacturing plants employ more girls
Manufacturing industry prefers girl workers.
The Taiwan Labor Supply Research Institute said the manufacturing sector needs 23,162 workers.
Employers have 5,641 places for men and 15,594 for women. Another 1,927 jobs are for either sex.
Openings numbering 11,163 are for workers with primary school educations, 10,939 for those with junior vocational school training and the rest for those with a higher level of education.
Manufacturing industry employed 998,803 as of July, an increase of 75,404 over the corresponding month of 1972.
The textile industry had the biggest payroll with 177,565 workers, or 17.79 per cent of the work force in manufacturing.
The electrical apparatus industry employs 154,398 and the food industry 133,555.
Other major employers are chemical and machinery industries.
Average pay in manufacturing was NT$2,606 per month in July, up by NT$135 in a year.
Work hours averaged 210 hours monthly plus 18 hours of overtime.
East coast port will be enlarged
The Taiwan Provincial Government will spend NT$870 mil lion (US$23 million) to enlarge Hualien Port in eastern Taiwan. Construction will start this year and be completed by the end of 1982.
The first stage will be completed in 1977 at a cost of NT$211.3 million. The second will be completed in 1979 and the third in 1982.
Work includes deep - water wharves, deepening of the en trance and the purchase of new facilities.
By 1982, Hualien will be able to handle more than 5,000,000 tons of cargo annually, an increase of five times.
Opened in 1973 as Taiwan's third international seaport, Hualien has wharves totaling 7,240 meters. In addition to three 10,000-ton berths, there is dock space for one 4,000-tonner and three 6,600-tonners.
The second biggest dry dock in the world will be built at Kaohsiung. The China Shipbuilding Corporation dock will be 950 meters long and 92 meters wide.
Construction will be in three sections. Ships can be built before the dock is completed. Ships with displacement of more than 500,000 tons will be handled.
CSC will produce 1,500,000 tons of ships annually upon completion of its new yard. Repair will be 2,500,000 tons.
Taiwan Shipbuilding Corporation at Keelung has a capacity of 300,000 tons annually.
One hundred and twenty-eight ships will be broken at Kaohsiung in southern Taiwan for scrap in the six months ending next May.
To avoid harbor congestion, ship breakers are building 20 special wharves.
Taiwan needs 1,800,000 tons of ferrous scrap a year.
Kaohsiung dismantled 1,261 ships with combined displacement of more than 9.4 million tons from 1962 to last September.
Agricultural output to be stepped up
The government will boost farm, fishery, forestry and live-stock production to help check the rising cost of living.
Rice production will rise 200,000 tons to more than 2,600,000 tons in 1974.
The plan also calls for the production of 3,605,000 tons of sweet potatoes, 80,000 tons of maize, 80,000 tons of soybeans and 1,600 tons of wheat.
Other production targets set for 1974 include:
- Tea: 27,600 tons.
- Cotton: 1,200 tons.
- Peanuts: 130,000 tons.
- Tobacco: 17,000 tons.
- Bananas: 450,000 tons.
- Pineapple: 360,000 tons.
- Oranges: 300,000 tons.
- Mushrooms: 84,240 tons.
- Asparagus: 114,912 tons.
- Fish: 774,000 tons.
- Cattle: 25,000 head.
- Hogs: 5,337,000 head.
- Timber: 1,489,000 cubic meters (excluding 250,000 tons for industrial use).
The two-year agricultural re construction program launched at the beginning of 1973 has been proceeding smoothly, the Taiwan Provincial Government said.
All major scheduled projects were completed by the end of the year. Second-stage projects were 21 percent complete.
The two-year program to cost NT$2 billion was initiated by Premier Chiang Ching-kuo to rejuvenate the sagging agricultural sector:
The government has also initiated an NT$1,800 million loan program to:
- Improve transportation and marketing.
- Increase investment in public facilities and rural community development.
- Promote advanced rice cultivation methods.
- Establish factories in rural areas to provide off-farm employment.
- Accelerate agricultural research and promotion.
- Reconstruct villages on the offshore isles.