On 20 acres hard by the Taipei Municipal Stadium, and just five minutes or less from the international airport, is the biggest trade fair in the Republic of China's history. Sprawled across the mountain-girthed site are 23 modernistic buildings, replete with towers and domes and alive with color, a veritable Disneyland of commerce and industry.
Hundreds of thousands of visitors have streamed through the entrance gates since early October, and almost all—Chinese or foreign—have come away with one unanimous reaction: modern living has come to Taiwan, not as an imported alien commodity, but as a domestic product with a great big "Made in Taiwan" label attached.
No diesel locomotives or electron microscopes are on display, but just about everything else seems to be. There are automobiles and scooters; electrical appliance in almost every conceivable form, from egg boilers to television sets; air conditioners ranging up to giant industrial installations; textiles made of cotton, wool, and many of the newest synthetic fibers; construction materials that include the latest decorative and treated wood boards; newspaper presses and drill presses and lathes; pumps in a variety of shapes and sizes; processed foods that go out to the four corners of the world—land so on and on through 1,000 exhibits and 641 retail outlets selling the goods that are on view.
The fair, officially known as the Economic Development Exposition and sponsored by the Chinese National Federation of Industries, affords dramatic visual proof of how the Republic of China has provided one of Asia's highest standards of living for its 12 million people. And it also reveals the secret of the island's US$500 million level of exports and of a favorable balance of trade that is skyrocketing toward the US$100 million mark. Already it is so successful that the closing date may be extended beyond the scheduled November 30, and there is even talk of transforming it into a permanent exhibition.
Premier C. K. Yen (Center) cuts the ribbon to open the 1964 Economic Development Exposition while Vice President Chen Cheng (to the right) looks on. (File photo)
One of the 23 pavilions is sponsored by the government to give information about the country's economic development. Another is manned by the China Productivity and Trade Center to facilitate trade negotiations. Still another shows manufactures from plants built by overseas investors. One is even built in the manner of a farm house to indicate the living condition of about one-half of Taiwan's people.
Price tags are at a level which permit the people to buy television sets, refrigerators, and air conditioners as well as a great plenty of food and clothing. Such products are no longer considered as luxuries exclusively for the rich, or even as limited to the salaried sophisticates of the cities. Successful land reform and production increases in sugar, bananas and other cash crops have given farmers the money to buy large quantities of consumer goods. Five years ago they had radio sets, sewing machines, and bicycles. Now their eyes are on TV and powered transportation.
Canned food is coming into wide domestic use and production for export. Food processing is the largest industry. Sugar earns US$100 million a year. The island is the world's largest exporter of canned pineapple and the second largest of canned mushrooms.
The textile industry is only a decade old but is already highly developed and with a product high in both quality and design. Cotton and woolen materials 'have been sold all over the world. Man-made fibers are being added in profusion. A large pavilion displays suitings made entirely from such artificial fibers as rayon, dacron, and nylon, and others blended with cotton or wool.
Embroidery, a traditional Chinese art, is much in evidence in the making of garments. Women's sweaters are especially attractive. Brocades are colorful and decorative, many with a metallic sheen that makes them perfect for evening wear.
The little things that make life easier or more pleasant are also to be seen: plywood overlaid with polyester for easy-to-clean tables and counters that are impervious to burns or stains; plastics for window screens and a hundred and one other things; toilet paper in color.
No longer is Taiwan's industrial production limited to consumer goods. Manufacturers offer complete sets of machinery to process sugar and flour and to make paper. A rotary press offers color as well as black and white. Lathes, drill presses, shapers and molders are made and sold in Southeast Asia.
Taiwan began producing a few automobiles only a few years ago. Now it makes thousands of sedans, jeeps, trucks, and buses. Motor scooters are popular and sales to Southeast Asia are beginning. Some parts are imported but the percentage becomes smaller year by year.
These are achievements of the last 19 years, since China regained Taiwan from Japan, and especially since the Chinese government moved its seat to Taipei in 1949. Such progress has been made in the face of a number of difficulties.
For one thing, Taiwan is a small island with a large population. As fair exhibits show, the Island has only 13,885 square miles, of which one-fourth is arable. By the end of June, 1964, the island had a population of 12,090,422, larger than Australia, which is almost 200 times the size of Taiwan. Density came to nearly 870 per square mile, second highest in the world. Based on arable land, the density is the highest.
Taiwan has few natural resources and many materials for industrial production must be imported. The island bought US$170 million worth of agricultural and industrial raw materials in 1963, accounting for about half of the year's imports.
Tens of thousands of spectators stream in to see the exposition. (File photo)
Lying only 100 miles off the mainland, Taiwan faces the ceaseless threat of Communist aggression. About 80 per cent of the national budget must be spent for defense. Deducting other expenditures, only about 10 per cent is left for economic development.
Yet these unfavorable conditions have not prevented rapid economic growth. The rate has averaged 7.4 per cent in recent years. Per capita income was NT$5,007 (US$125.17) at the end of 1963, more than double the estimate for the Communist Chinese mainland. Despite population growth of more than 3 per cent a year, the per capita gain is about 4 per cent a year in terms of added buying power.
Trade fair displays properly attribute the Taiwan success story to implementation of the teachings of Dr. Sun Yat-sen, father of the Republic of China. Dr. Sun was born on November 12, 1866, and died on March 12, 1925. By Chinese reckoning, he would be 100 years old this November 12. The Taipei fair thus commemorates his centenary.
Dr. Sun advocated free enterprise, and as China is predominantly an agricultural country, he advocated equalization of land ownership as the first step to improve the people's livelihood.
Land Reform
Land reform program is virtually complete on Taiwan. The most important aspect was limitation of land ownership to three hectares, or 7.4 acres. All excess land was sold to the government and resold to tenant farmers. Landlord were compensated in land bonds and stocks of government enterprises. Tenants paid for the land in 20 semi-annual installments plus 4 per cent intere3t per annum. The last payments were made in 1963. At present 87 per cent of Taiwan farmers own all or part of the land they till.
The land-to-the-tiller program has greatly increased agricultural production because farmers enjoy the full fruits of their labor. According to charts displayed at the fair, Taiwan rice output was almost doubled from 1,214,523 metric tons in 1949 to 2,109,037 metric tons in 1963. The current level is sufficient to feed more than 12 million people well and leaves a surplus for export.
For industrial development,. Dr. Sun taught that the people's livelihood must come first. And it does. To satisfy the basic needs of the people, Taiwan first developed industries to provide food, clothing, housing, transportation, education and entertainment.
This led to the rapid expansion of such enterprises as food processing, textiles, fertilizers, aluminum, glass, cement, machinery manufacturing, pharmaceuticals, transportation, paper land printing. In supporting roles, electric power was increased and petroleum production expanded.
Free Enterprise
As soon as the essential requirements of the people were satisfied, emphasis was shifted to production of more sophisticated products, including those for export. Among them are man-made fibers, electrical appliances, automobiles, and petro-chemicals.
In encouraging industry, government has stuck to the principles of free enterprise. It has stipulated that as far as possible, new investment projects must be undertaken by private enterprise. A number of government enterprises are scheduled for transfer to private ownership soon. For industries involving great risk and advanced technical skills, the government may take the initiative by sharing the risk in a minority participation that can be withdrawn at an appropriate time.
More than 80 per cent of Taiwan's factories are in private hands. In 1949, the private sector accounted for only 27.6 per cent.
The Chinese government has promulgated laws to encourage foreign investment and technical assistance. Five-year holidays are granted and tax reductions given after that.
By June 30, 1964, the government had approved 558 overseas investment projects with capitalization of more than US$161 million. In addition, 117 foreign manufacturers have entered into technical cooperation agreements.
Results are to be seen at the Taipei fair. With the shortage of natural resources, stress is being placed on the expansion of industries that process imported materials for export. This has helped transform the trade balance to the favorable column. Statistics show that as late as 1962, Taiwan had a trade deficit of US$85 million. In 1963, the trend was reversed with a favorable balance of US$20 million. For the first seven months of this year, the favorable balance amounted to US$92 million.
Exports are soaring while imports are up only slightly. Being sold abroad at the end of 1963 were 50 per cent of aluminum production, 85 per cent of sugar, 97 per cent of canned mushrooms, 95 per cent of canned pineapple, 47 per cent of glass, 56 per cent of cotton textiles, and 48 per cent of plastic manufactures.
The foreign exchange position is greatly improved. By the end of June, 1964, the government had a reserve of US$249 million in the Central Bank of China and the Bank of Taiwan. This has enabled the government to relax import controls for purchase of more equipment and materials to modernize, expand production, and build new plants.
The trade fair has many goals, including the 'promotion of trade with other countries for purpose of InternatIonal friendship as welt as mutual profit. A sign in the conference room at the fair reads: Chun Tse Ai Tsai, Chu Tse Yu Tao ( 君子愛財, 取之有道 ), meaning "A gentleman loves wealth but obtains it through proper means." Another sign reads: Chen Shing Hsiang Fu, Wu Wang Puh Li ( 誠信相孚, 無往不道 ), or "With sincerity and faith, no endeavor will fall short of success."
The Economic Development Exposition offers strong evidence of how well the Republic of China is succeeding in making a better life for its people in an environment of responsibility and freedom. In only two decades, Taiwan has been advanced from the "underdeveloped" category to a stage where economists are predicting an economic "take-off" reminiscent of those in Japan and Western Europe. The record shows what can be done when free enterprise operates under regulations that are fair, friendly and mildly restrictive only in the interest of the people.