Taiwan's biggest trade fair was going strong through November. Low-priced, high-quality commodities, pretty girls, delicious Chinese food and exotic entertainment attracted hundreds of thousands of visitors.
Officially known as the 1964 Economic Development Exposition of the Republic of China, the fair showed economic progress in the 15 years since the Chinese government moved its seat to Taiwan. It also marked the beginning of a series of celebrations in observance of the 99th anniversary of the birth of Dr. Sun Yat-sen, father of the republic.
The Taiwan Visitors' Association has estimated that tourists will total 120,000 this year. In October and November alone, more than 50,000 were expected, many of them drawn to Asia by the Tokyo Olympics.
Big hotels are booked full into next January. Taipei's biggest hotels, the President and the Ambassador, opened in October and December to add 630 rooms to the rapidly increasing total.
The economic exposition was held on Tunhua Road, about a mile from the Taipei International Airport. With more than 1,000,000 square feet of exhibition space, the fair had 23 large pavilions and scores of retail booths. They showed progress in every aspect of economic life as well as the leading products of Taiwan manufacturers.
The economic information pavilion presented statistics about the economy. Three pavilions housed the products of public and private enterprises. An overseas Chinese investment displayed exhibits manufactured by investors from overseas, and a rural hall showed achievements in agriculture, forestry, fishery, and animal husbandry. Handicrafts and other industrial products were seen in a number of pavilions and booths.
Three enterprises had their own pavilions: the Hsinchu Glass Works, the China Man-Made Fiber Corporation, and the Lonte Industrial Company. Hsinchu is the largest glass maker in Taiwan, China Man-Made Fiber the largest producer of artificial fibers, and Lonte one of the largest machinery manufacturers.
People of Taiwan eat rice as their staple food. In recent years, however, there has been a movement to encourage the eating of flour foods so as to save rice for export. The United States has been supplying Taiwan with abundant wheat. At present the price of rice is higher than that of flour. In the economic exposition, there was a pavilion to promote consumption of flour foods.
The Chinese National Federation of Industries employed 32 pretty girls as hostesses. All spoke Mandarin, Amoy, English and some Japanese and French. Most were college graduates.
Retail booths totaled 641, selling Taiwan products ranging from shirts to scooters. Many of the products were exported.
Edibles came from the leading restaurants of Taiwan, and included cooking styles of Szechwan, Canton, Peiping, Shanghai, Hunan, and Mongolia.
Entertainment included acrobatic shows, Chinese opera performances, and folk dances. Programs were changed from time to time.
Through November, the Chinese government permitted five-day visits without a visa. Tourists traveling the Hongkong-Tokyo-Manila route pay no extra fare for a stopover in Taiwan.
Guam Market
An eight-member Chinese economic goodwill mission visited Guam September 18-22 at the invitation of the American government there. It was led by K. T. Li, vice chairman of the Council for International Economic Cooperation and Development, and composed of experts in engineering, fishery, agricultural processing, textiles, and other industries.
Li told the press the mission was to discuss economic cooperation projects with Guam authorities. He pointed out that Guam is a territory of the United States, but is 6,000 miles from the U.S. mainland and only 2,000 miles from Taiwan.
In addition, Guam is situated in the Pacific fishing area and is a good base for Taiwan ocean fishery. A technical cooperation project on fishery between Taiwan and Guam is practical, he added.
Li attended the U.S. national industrial conference at Honolulu September 23-26 after he left Guam. There he met a group of Chinese industrialists, including Leu Feng-jang, chairman of the China Man-Made Fiber Corporation.
Li then went to New York to take part in the conference sponsored by the Far East-American Council of Commerce and Industry September 28-29. An 11-member Chinese mission was also there, led by C. T. Chow, president of the Taiwan Chung Hsing Paper Corporation.
Ku Wen-kwei, a member of the Chinese mission to Guam, disclosed upon his return September 27 that the Guamian government is supporting a plan to establish a Taiwan products exhibition center in Guam and to negotiate a Taiwan-Guam fishery cooperation project.
Trade Diagram
To help foreign traders understand the process of doing business with Taiwan, the Foreign Exchange and Trade Commission has worked out a simple diagram to show the procedures.
It indicates that a foreign supplier may sell commodities through a trader here or directly to the end-user. He may also do this through an agent or his regional or branch office here. Government procurement agencies often import commodities through open tender.
FETC reports that Taiwan has some 2,000 private traders, each with a paid capital of at least US$5,000. There is no restriction on the amount of imports but the commodities must be on the permissible list. Financing of a transaction may be by letter of credit, or if the commodities are industrial raw materials, the transaction can be carried out on a D/P (document against payment) or consignment basis.
For selling directly to such end-users as industrial manufacturers, mines, fishery and agricultural enterprises, the commodities must be imported for their own use. Some controlled items may be imported if prior approval is obtained. The government allows end-users to import commodities on a credit basis or on installment payments in the case of machinery, equipment, and industrial raw materials.
Any local business firm, manufacturing enterprise or foreign concern is eligible to act as an agent in selling commodities in Taiwan provided he is registered with the government. Agents can promote sales for foreign suppliers and tender bids on their behalf. They are obliged to sell to government-appointed banks the foreign exchange they have earned as service income or commission.
Manufacturers or exporters may have a branch in Taiwan to sell their merchandise or to buy Taiwan products. They may also have a regional office here but it is not permitted to engage in business transactions. A branch office is required to pay taxes but a regional office is not.
To sell commodities to Taiwan through government procurement, foreigners must watch for the notices issued by the procurement offices. There are two: the Central Trust of China and the Taiwan Supply Bureau.
In buying commodities from Taiwan, FETC says there are a number of channels. A foreign buyer may act through traders, directly from manufacturers, through trade promotion agencies, through manufacturers associations, or through government trading agencies. He may also invite a Taiwan supplier to participate in any worldwide tender.
Currencies that can be used for purchase include U.S. dollars, German marks, new francs, Italian lira, Hongkong dollars, and Straits dollars. Methods of payment include letters of credit and advance settlement of export exchange as in the case of T/T, D/D, and M/T. Transactions on a collection basis are permissible provided the time limit is not more than 180 days in case of buyers in Europe, America, and the Middle East. The period is 120 days for buyers in Japan, Okinawa, and Southeast Asia, and 90 days for Hongkong and Macao. For purchases of canned mushrooms, citronella oil, vegetables, livestock, and fresh fruits, no D/P or D/A transactions are permitted.
FETC has an "investigation and research department" to answer inquiries.
Radio, TV Parts
Taiwan is expected to import some US$16.5 million worth of radio and television components in the next five years, the Industrial Development and Investment Center estimates.
IDIC reported that at the end of April, 1964, Taiwan had 8 factories for making tube radios, 11 for transistor radios, and 8 for television sets.
Because some products are not up to international standard and prices are high, the Chinese government has imposed import controls for only a few items, IDIC says.
Based on a survey of the Taiwan Telecommunications Administration, Taiwan had 1,113,655 radio sets in use at the end of 1963, including 111,283 transistor radios, compared with 76,824 sets in 1953. This is an increase of more than 14 times in 10 years. The island had 2,116,281 families at the end of 1963. Thus every other family had a radio.
Radios with tubes now are made entirely of local components, but quality is not always high. Imports are still permitted except for cabinets, loudspeakers 5 to 8 inches in diameter, and paper and oil condensers.
The transistor radio industry has grown up since 1961. Local plants are engaged primarily in assembly—with most parts and accessories supplied by Japanese manufacturers. Exports have increased from 29,340 set in 1962 to 172,244 in 1963 and probably to nearly 1,000,000 in 1964.
Made locally are speakers, plastic containers, condensers, coils, wires, resistors, and controls. No government controls have been placed on imports.
Japanese manufacturers even supply the boxes for shipment. Most of the radios go to the United States. The Japanese are taking advantage of Taiwan's lower labor costs.
Taiwan has had commercial TV since 1962 and the audience so far is limited to the northern part of the island. According to the IDIC survey, Taiwan has some 25,000 television sets in use. When broadcasting is expanded to the southern part of the island next year, the number will increase rapidly.
All TV set makers in Taiwan have technical agreements with Japanese manufacturers. The Japanese supply about 30 per cent of the components. No TV sets are exported.
Bananas to Japan
Taiwan will sell 7,500,000 baskets (48 kilograms each) of bananas to Japan in the year beginning in October, the Foreign Exchange and Trade Commission has announced.
The quantity is more than triple the 1963-64 total of 2,200,000 baskets. Price will remain the same, US$8 per basket, CIF.
Taiwan thus should earn US$60 million from banana exports to Japan in 1964-65. In the 1963-64 period, earnings were US$20 million, and in 1962-63, only US$8 million.
Rapidly increased banana exports result from expanded production. Further expansion is planned.
FETC says shipments of bananas to Japan for 1964-65 will be: 700,000 baskets for January-March, 4,500,000 baskets for April-June, and 1,500,000 baskets for July-September.
Japanese buyers may send orders to organizations representing either exporters or producers, FETC says. Those having a record of business dealings with Communist China are not permitted to buy.
The All Japan Banana Association declared on September 14 that its 263 members have pledged not to buy from Communist China.
FETC reported in September that the U.S. Agricultural Department had approved a banana import application from Taiwan for a trial sale of 200 pounds. This is the first Taiwan effort to sell bananas to the United States. FETC did not say who submitted the application.
Aluminum Sales
Aluminum ingot and its processed manufactures enjoyed brisk foreign sales this year. For the first eight months, exports exceeded US$3.5 million. Sun Ching-hwa, president of the Taiwan Aluminum Corporation, reported.
Sun said the price of aluminum products in the international market has risen sharply. Ingot, previously sold at US21 cents per pound, has risen to US44 cents.
Because of higher foreign demand, Sun said, TAC is in full production. For the January-August period, he said, the company turned out 12,497 metric tons of ingot and 7,067 metric tons of processed items. Out of this amount, 5,152 metric tons of ingot and 1,960 metric tons of processed items were sold abroad for earnings of US$3,653,900. The amount tops 1963 sales, he added.
Sun said most Taiwan aluminum products were sold to Europe and the United States. Other chief buyers included Korea and Vietnam.
The Taiwan Aluminum Corporation in September received an order from Brazil calling for 10,000 metric tons of ingot worth US$5 million.
The company is a state enterprise. To expand its sales, it is considering construction of a processing plant in Singapore.
Industrial District
Minister of Economic Affairs Yang Chi-tseng cut a ribbon for one new plant and broke ground for another in the Liutu Industrial District September 24. Fifteen other factories have been built there or are under construction.
He presided over ceremonies opening the Sincere Steel Sheet Corporation plant and starting construction of a factory for the Chuwa Wool Industry Co. (Taiwan) Ltd.
The Sincere Steel Sheet Corporation with capitalization of US$300,000 began construction of its plant in May, 1963. It will produce 24,000 metric tons of galvanized iron sheet annually.
Board chairman T. K. Chen reported the company has entered cooperation agreements with the Kawasaki Electric and Machine Company and the Kawasaki Steel Corporation of Japan. Equipment is automatic. Corrugated sheet also can be produced.
Taiwan formerly imported galvanized iron sheet. With completion of the Sincere plant, there will be a surplus for export. Chen said the company already has received orders from Vietnam, Hongkong, and Singapore.
The Chuwa Wool Industry Co. (Taiwan) Ltd. is the US$375,000 investment of L. S. Chen, a Chinese from Japan. Chen has a wool plant in Japan. He is represented in Taiwan by Chu Chien, president of the China Technical Consultants Inc.
The plant in Liutu will be built in six months and have capacity of 4,800,000 pounds of wool tops annually. Wool will be imported from Australia.
Another wool top company, the Reward Wool Industry Corporation, will build a plant in Liutu. Eng Chang-chi, former deputy general manager of the Bank of Taiwan, is board chairman. Capacity will be 3,000,000 pounds annually.
Taiwan imported 5,000,000 pounds of wool tops last year. When the two plants in Liutu are completed next year, the island will have surplus for export.
The Liutu Industrial District is China's first. With an area of 60 hectares, it is 8 kilometers from the port of Keelung and 20 kilometers from the capital city of Taipei. The Taipei-Keelung highway and railway run past the southern edge and the Keelung River borders the northern side.
Advantages of Liutu include low-priced land, and abundant power, water, and fuel. Banking, warehousing, and telecommunications facilities are available. Modern drainage system has been installed.
The industrial district is one of several being developed in Taiwan under the sponsorship of such government agencies as the Industrial Development and Investment Center. IDIC estimates theft when the more than 30 plants at Liutu are completed, investment will total US$7.5 million, production US$50 million annually, and jobs 6,000. Annual savings in foreign exchange from domestic production of new commodities are estimated at US$15 million and earnings from exports at US$17.5 million.
The government has earmarked 58 other areas for industrial development. A second industrial district is under way in the Kaohsiung harbor area. Three others, all in northern Taiwan, are in the planning stage.
Central America Trade
After a successful two-month tour of nine Latin American countries, the Chinese Goodwill and Economic Mission returned to Taipei November 14, bringing with them trade agreements as well as renewed cordial feelings from the Caribbean and Central America.
The six-member goodwill mission, led by P. Y. Hsu, governor of the Central Bank of China and concurrently chairman of the Foreign Exchange and Trade Commission, left Taipei September 14. They visited Mexico, Guatemala, Jamaica, the Dominican Republic, El Salvador, Panama, Nicaragua, Costa Rica and Honduras. Trade agreements were signed with all of these countries except Jamaica. With Jamaica a joint communique was issued pledging the strengthening of trade ties. The mission also made an unofficial visit to Trinidad.
Governor Hsu told a press conference November 17 that the future of trade relations between the Republic of China and Central America is "bright."
He predicted that the trade volume with Central American countries might reach US$50 million in the next three years. Hsu disclosed that the mission bought commodities valued at US$1,500,000. In addition, the Chinese government has completed trade deals amounting to US$3,400,000 with these countries and negotiations are under way for the procurement of US$2,000,000 more, he said.
Hsu said China's textiles, machines, electric appliances, fertilizers, and plywood can find ready markets in Central America. A Chinese products exhibition hall will be set up at Colon, free port of Panama, to promote sales. A trade fair is planned in Ecuador next year.
Hsu noted that Central American countries consider the economic growth in the Republic of China and Israel as the "best examples" for developing countries. They are willing to enter into technical cooperation agreements with China to develop their agriculture, and welcome Chinese establishment of textile mills, aluminum factories, and plywood plants.
Referring to the Chinese agricultural team in the Dominican Republic, Hsu said it has won high acclaim and will stay another year.
He reported that Trinidad has expressed desire to enter into technical cooperation with China for the development of its fishing industry. The mission also reached agreement with Guatemala on the promotion of citronella oil on the world market.
This was the second Chinese trade mission to Latin America in less than six months. In May and June, a team also led by Hsu visited nine countries in South America. It concluded trade pacts with four countries and issued joint trade promotion statements with four others.