Taiwan Today

Robert Ingersoll, U. S. assistant secretary of state for East Asian and Pacific affairs, paid a two-day visit to the Republic of China at the end of January.

In a departure statement, he said that he had exchanged views with Chinese government leaders on problems of mutual concern and political and economic problems in particular.

"For my part," Ingersoll said, "I noted the desire of the United States government to fully maintain our warm, and, I believe, mutually beneficial relationships."

Specifically, Ingersoll said, he listened with careful attention to the explanation by Chinese government leaders of Taipei's policies in political and economic areas.

"Our discussions were broad and quite wide ranging," Ingersoll said.

"We have some trade problems, and we discussed them frankly," Ingersoll said.

One such problem is a widening trade gap in favor of the Republic of China. It reached US$724.8 million last year.

Exports totaled US$1,6763 million and imports US$951.5 million.

Taipei and Washington have some difference of views in the international political area, Ingersoll said. "We also discussed these with the frankness and candor that is appropriate to friends," he added.

Ingersoll met with Vice President C.K. Yen, Premier Chiang Ching-kuo and Foreign Minister Shen Chang-huan.

Ingersoll said he was "very impressed" by the vigorous, growing economy, new construction evident everywhere and the quality of life.

During his discussions with Chinese leaders, he added, he was "impressed by their sure grasp of issues, both large and small, and by the evidences of vigor and decisiveness."

A few days before Ingersoll's arrival, Chinese Ambassador to the United States James Shen returned for home consultations.

Ambassador Shen was optimistic about the future of Taipei-Washington relations.

"Sino-American relations remain as close as ever and I am very optimistic about them," he said.

He said U.S. Secretary of State Henry Kissinger assured him that Washington would continue to maintain diplomatic relations with Taipei and honor its obligations under the 1954 Sino-American Mutual Defense Treaty.

Shen noted that Kissinger made the assurances immediately after the secretary of state returned from his sixth visit to Peiping.

However, the ambassador said, Washington's intention to "accelerate normalization of relations" with Peiping, as stipulated in the Kissinger-Chou En-lai Communique, is of great concern to the Republic of China.

He said contacts between Washington and Peiping would have an adverse effect on the ROC.

But, he said, "I don't see any indication that Washington has gone so far as to establish formal relations with the Chinese Communist regime."

The journalist-diplomat said the United State is a superpower and plays an important role in world affairs. Right now Washington is preoccupied with the Middle East conflict and the energy crisis, he added.

Testifying before a joint meeting of two Legislative Yuan committees, Shen said Washington had often reiterated its willingness to honor commitments to the Republic of China.

Many members of the U.S. Congress have reaffirmed their conviction that the United States should never abandon diplomatic relations with the Republic of China.

Headed by House Speaker Carl Albert (D. Okla.) and House Majority Leader Thomas O'Neill (D.-Mass.), they told Chinese Legislator Cheng Tsang-po that the U.S. Congress will continue to give moral support to the Republic of China.

Cheng called on Sen. John Sparkman (D.-Ala.) and Rep. O'Neill and had lunch with Speaker Albert and six other Congressmen.

Rep. O'Neill said he was still planning to lead a 24-man Congressional group to the Republic of China. The trip, scheduled for last November, was put off because of energy crisis.

O'Neill said a majority of House members, including both Democrats and Republicans, sup port continuing friendship and diplomatic relations with the Republic of China.

Albert and other Congressmen expressed similar sentiments.

Congressmen who had visited Taiwan recently praised economic progress and political stability in the Republic of China.

Free China will continue to cultivate "substantial relations" with countries with which its does not have diplomatic ties, the Executive Yuan (Cabinet) said.

Economic, cultural and technical cooperation were mentioned.

The Republic of China maintains trade relations with 128 nations and diplomatic relations with 37.

Under the administrative plan for fiscal 1975, the Republic of China will work together with free nations to maintain world peace and uphold international justice.

In defense, the ROC will continue to modernize its armed forces and step up combat readiness.

One of the most important tasks facing the nation is the achievement of price stability and sustained economic growth.

Emphasis will be placed on the development of heavy and petrochemical industries and the exploration of energy resources.

Foreign investment will be encouraged and trade increased.

Construction of nine basic economic development projects will be continued. These are Taichung Port, the North-South Freeway, railroad electrification, Suao Port, Suao-Hualien railroad, Taoyuan International Airport, an integrated steel mill, a giant shipyard and a number of petrochemical plants.

Other features of the administrative plan include:

- Streamlining the taxation system and modernizing banking services.
- Promoting social welfare and better use of land.
- Developing science education and raising academic standards.
- Preventing crime, juvenile crime in particular.
- Assisting overseas Chinese youths to continue their education in the Republic of China.

Peiping has failed to isolate the Republic of China in Africa despite an aid program which has cost US$5.6 billion in the last decade, a government source said.

Twelve African countries still maintain diplomatic relations with the Republic of China:

Botswana, Central African Republic, Gabon, Gambia, Ivory Coast, Lesotho, Liberia Libya, Malawi, Niger, Republic of South Africa and Swaziland.

Many other African states maintain substantial relations with the Republic of China.

Nearly 30 Chinese farm demonstration and technical assistance missions are working in Africa.

Operation Friendship, launched in 1961, has helped frustrate Peiping's attempts to isolate the ROC in Africa.

Vice Foreign Minister H.K. Yang is the prime mover behind Operation Friendship, which is based on a grassroots approach. Chinese specialists work side by side with African farmers.

Trade with Africa has grown rapidly.

In 1971, two-way volume was only US$62.27 million with exports of US$48.5 million and imports of US$13.7 million.

Volume nearly doubled in 1972 with exports of US$70.7 million and imports of US$48.9 million. An increase of 35 per cent was registered last year. Exports were US$103.2 million and imports US$54.9 million.

Chinese experts will help Saudi Arabia build an oil refinery with capacity of 100,000 barrels a day.

Under a tentative agreement, the Chinese Petroleum Corporation will ship equipment to Saudi Arabia and help build the refinery within a year.

The project was proposed when Economic Vice Minister Chang Kwang-shih met Saudi Arabia officials during a visit to Riyadh.

Accompanying Chang were Jerome Hu, president of Chinese Petroleum Corporation, and T.L. Yu, deputy director of the Industrial Development Bureau, Ministry of Economic Affairs.

Taiwan imported 10,000,000 kiloliters of crude from the Middle East last year, half of it from Saudi Arabia. If the industrial growth is to be maintained at the current pace, Taiwan needs 2,000,000 to 3,000,000 more kiloliters of crude this year.

Saudi Arabia is also ready to accept more assistance in agricultural development. A five-man Chinese agricultural team may be enlarged by one or two additional experts.

Prospects for more trade are good. The two way volume was US$67,818,459 in 1973. Taiwan imported US$42,776,454 worth of crude oil, natural gas and petroleum products and exported US$25,042,005 worth of knitwear, wood products, bamboo and plastic products.

The Republic of China and Saudi Arabia also have decided to establish a joint fertilizer plant in the Middle Eastern country to make 500,000 metric tons of urea annually from natural gas.

On February 7, the government issued a strong protest to South Vietnam over its claims to the Spratly Islands (Nan Sha Archipelago) in the South China Sea. The protest lodged by the Ministry of Foreign Affairs said:

"The government of the Republic of Vietnam recently claimed sovereignty over the Nan Sha Archipelago (Spratly Islands).

"Against this claim, the government of the Republic of China has lodged a strong protest with the Vietnamese government, and reaffirmed its position to the effect that these islands are inherently part of the territories of the Republic of China and that the Republic of China's sovereignty over them is not to be doubted.

"These islands had been occupied by Japan during the Second World War. They were restored to the Republic of China, when, after the war, in December, 1946, the Chinese government dispatched a naval contingent to take them over from the Japanese.

"Since then, permanent Chinese garrison forces have been stationed thereon. Furthermore, on December 1, 1947, the government of the Republic of China announced to the world the standardized names of the various islands, islets, reefs and shoals in the archipelago.

"It is an indisputable fact that these islands constitute an integral part of the territories of the Republic of China. The government of the Republic of China hereby reaffirms emphatically its sovereignty over the Nan Sha Archipelago.

This position is not subject to change by whatever measures taken by any country."

The Chung Yang Jih Pao (Central Daily News) of Taipei traced the history of the Paracel islands north of the Spratlies.

The newspaper said the Paracels - Hsisha in Chinese - were taken over from Japan by the Republic of China government in November of 1946.

ROC troops later left the islands.

The newspaper said ROC forces also took over the Spratlies in 1945 following the Japanese surrender. Armed forces have been stationed on some of the islands ever since.

The Pratas - Tungsha - Islands had been visited by Chinese fishermen since ancient times, but they were taken over by Japanese in 1907, the paper said.

These islands lie at the southern end of Taiwan Straits. ROC troops occupy them.

The paper suggested the government build harbors on the major islands of these groups "to improve exploration of potential. undersea resources and also defend the Republic of China's sovereignty.

There have been indications that the island groups lies atop substantial oil resources.

More than 15,000 people from all walks of life, including many foreign dignitaries, at tended a World Freedom Day rally in Taipei January 23.

Dr. Ku Cheng-kang, honorary president of the World Anti-Communist League, presided.

Dr. Ku said that the World Freedom Day "has spurred actions against tyranny among countless enslaved people behind the Iron Curtain."

"It has prompted people around the world to rise against Communist aggression and subversion," he added.

President Chiang Kai-shek said in a message:

"World events have shown that the confrontation between slavery under Communism and freedom under democracy can never be eased or eliminated through negotiation. On the contrary, appeasement, compromise and neutrality will only fuel Communist flames, lead to world chaos and bring greater calamity to mankind. On the other hand, the current world situation has led people everywhere to awaken to the menace of Communism and has aroused the courage of people behind Iron Curtain in opposing slavery and seeking freedom. Consequently, the rapid development of the World Freedom Day movement is a natural force rising with the tides of the times.

"Externally, the Maoist Communists seek to intensify world disorder. Internally, they seek to destroy Chinese history and culture in an all-out campaign of condemning Confucius and praising the despotic Ch'in Shih-huang (the first emperor of Ch'in). These outrageous actions have exposed their wicked character that is causing untold suffering to the peoples of the world. Our progress and accomplishments of democratic construction on Taiwan, Penghu, Kinmen and Matsu - our bastion for national recovery - have brought prosperity and happiness to this citadel of freedom. They also have made this bastion of ours a beacon of hope for our mainland compatriots in their struggle for freedom. We firmly believe that the glaring contrast between benevolence and despotism will give the sons and daughters of China greater confidence in our eventual triumph over Communism. This will also enable the peoples of the world to distinguish between the virtuous and the vicious, right and wrong, friend and foe."

Vice President C.K. Yen addressed the rally. He praised the courage of the 22,000 POWs who chose freedom at the end of the Korean War and to whom World Freedom Day is dedicated. The Vice President said:

"The cloud of appeasement has hung over the world in recent years. Several countries which have been obsessed by hopes of immediate profits have harbored the illusion of reconciliation and compromise with the Communist bloc. They sought favors with the Peiping regime and established diplomatic relations with it. Domestically, however, some of these countries are reluctant to abandon their precautionary measures against Communism. The anti-Communist position is particularly true of the peoples of these countries, who remain vigilant toward the Communists. This is evidence that our anti-Communist struggle is not isolated, and that international justice eventually will have its day.

"In this time of drastic international changes, we have suffered a series of blows from this adverse tide of appeasement. But we have never become discouraged. To the contrary, these blows have made us more courageous. Our economic development, social stability, and popular unity have impressed the international community. These achievements have prompted the world to make an objective reassessment of the importance and potential of the Republic of China. The answer is positive. While we are constructing and modernizing our country on the basis of the San Min Chu I (Dr. Sun Yat-sen's Three Principles of the People), we are not merely seeking to make this bastion of freedom prosperous and happy. We also want to assure our 700 million compatriots on the mainland that they will regain free dom. This bastion of national revival serves as a beacon of anti-Communist confidence of the free world, illuminating the people's hope for freedom. We are in a key position in the course of man's struggle against slavery and for freedom."

The sixth "Hsieh Nien Fan" party was held by the American Chamber of Commerce at the Grand Hotel.

The party has been organized annually by the Chamber since 1969 in appreciation of the support of both the Chinese government and American Embassy.

Vice President C.K. Yen was the speaker. He urged an accelerated search for new sources of energy.

U.S. Ambassador Walter P. McConaughy said the coming year would be a testing time for every one. He was confident that the challenge would be met by the Republic of China, although the nation is not blessed with natural resources. "It is blessed with manpower," said the ambassador.

He said the American Trade Center in Taipei, which is to be established in April, and American Expo 74 in Taipei would help to achieve a balance of trade between the countries.

"We don't want a favorable trade balance," he said, "but we do want clear and equal com petition. We don't want to see the Republic of China cut down its exports to the United States but hope more American products can be sold here. "

Alson A.M. Lee, president of the Chamber, presented gifts to President Chiang Kai-shek and Vice President C.K. Yen. The gifts, accepted by the Vice President, expressed appreciation f(lf the support of the people and government of the Republic of China.

Participating in the dinner were government officials, business leaders, bankers and officials of the American Embassy. The hosts were 340 members of the Chamber.

Premier Chiang Ching-kuo met with the U.S. Seventh Fleet commander, Vice Admiral George P. Steele, at Kaohsiung.

The premier had breakfast with Admiral Steele. General Lai Ming-tang, chief of general staff; Admiral Sung Chang-chili, Navy commander-in chief; and Lt. Gen. Ho En-ting, Marine Corps commander, also attended.

This was Steele's first visit to Taiwan since taking command of the fleet July 28, 1973. He visited Chinese Army, Navy, and Marine Corps bases and had discussions with military leaders.

Taiwan had 657 foreign and overseas Chinese investments with capital of US$248,854,000 in 1973. The Investment Service Department of the Ministry of Economic Affairs disclosed these details:

Of the 657 cases, 303 were from overseas Chinese and the rest from foreigners.

There were 351 new investors, of whom 201 were overseas Chinese and 150 were foreigners.

Of investments, US$75,748,000 or 30.44 per cent was in the electronics and electrical apparatus industries.

Machinery and professional instruments ranked second at US$43,818,000 (17.61 per cent) and the chemical industry third with US$28,864,000 (11.6 per cent).

The 201 overseas Chinese, mostly from Hongkong, invested US$55,166,000.

Of the 150 foreign investors, who invested US$193,688,000, the U.S. ranked first with US$66,876,000. Japan with US$44,589,000 was second.

Exports of the three processing zones in Taiwan totaled US$404.68 million in 1973, according to statistics of the Ministry of Economic Affairs. This was up from US$240 million in 1972.

Exports since 1966 have amounted to US$1,015.45 million

The United States was the biggest market, buying US$207.97 million worth of EPZ goods in 1973.

Japan was second at US$40.47 million, Hongkong third at US$26.6 million and West Germany fourth at US$24.42 million.

The EPZs bought US$299.8 million worth of capital goods and raw materials at home and abroad.

Japan was the largest supplier, selling US$ 152.81 million worth of goods to the EPZs, which spent US$46.8 million in the domestic market, US$29.23 million on imports from Hongkong and US$26.03 million on imports from the United States.

The three are located in Kaohsiung, Nantze and Tantze. The Kaohsiung Export Processing Zone was established in 1966. Its success led to establishment of the other two.

There were 280 EPZ plants at the end of 1973 with combined investment of US$150 mil lion and 75,000 workers.

When fully developed by 1976, the zones will have more than 300 plants and employment in excess of 100,000.

EPZs combine advantages of a free trade zone industrial park. Plant sites and tax incentives and are provided.

Installed power capacity will be doubled when three nuclear stations are completed in the next few years.

Taipower had installed capacity of 4,124,261 kilowatts at the end of 1973.

The first nuclear power station will become operational by 1976. The two generating units will have capacity of 636,000 kilowatts each. The second unit will go on line in 1977.

The second nuclear station with installed capacity of 1,970,000 kilowatts will have two generating units of 985,000 kilowatts each to be completed in 1978 and 1979.

The first two plants will be in the north and the third in the south.

Each of generating units will have capacity of 1 million kilowatts. Completion dates are 1981 and 1982.

Taipower has purchased US$100 million worth of uranium to fuel its three nuclear power stations for a decade.

Chen Lan-kao, president of the company, was in Washington to negotiate financing with officials of the U.S. Export-Import Bank.

A loan of US$403 million is expected for the third nuclear plant with construction to start late this year or early in 1975.

Specialists of the Joint Commission on Rural Reconstruction and the Mineral Department of the Industrial Technology Institute are surveying the development of geothermal resources.

These experiments will be carried out:
- Construction of greenhouses to cultivate vegetables and flowers with the help of geothermal energy.
- Generation of electric power.
- Heating for fowl, turtles and crocodiles.
- Dry storage for timber and grain.

Geothermal resources are abundant in the Yangmingshan and Taipingshan areas. Experimental farming communities have been established in the Yangmingshan and Ilan districts.

The newly drilled Ilan Tuchang No.1 has shown good potential. Located on Chilan mountain, it is 161 meters deep and develops a temperature of 161 degrees Centigrade. Five tons of steam pours out every hour and can be used in power generation. Hot springs in these districts can be developed for tourism.

US$1,215 million will be spent in the next three years to develop the petrochemical industry, Jerome Hu, president of the Chinese Petroleum Corporation, said.

Hu told the Executive Yuan that 23 projects will be undertaken. Most of the funds will come from private sources.

CPC, Taiwan's sole oil supplier, is a government enterprise.

Private enterprises, Hu said, will invest in "downstream" industries which are expected to produce petrochemical intermediates for plastics and textiles.

A petrochemical center will be established in the new Waterfront Industrial Park near the Kaohsiung Export Processing Zone.

CPC will build two naphtha cracking plants and a refinery to supply downstream industries with sufficient materials.

One of the naphtha cracking plants, located at Kaohsiung, will start operations before the end of the year. Capacity will be 230,000 metric tons of ethylene a year.

Located at Pingtung, 10 miles west of Kaohsiung, the second naphtha cracking plant will become operational in 1975, producing 230,000 metric tons of ethylene in the first year. Capacity will be increased to between 350,000 and 400,000 metric tons a year with an expansion in 1976.

Also scheduled to be completed by the end of 1976 is a refinery to process at least 100,000 barrels of crude daily.

A contract has been signed between a local company and an American company for a US$5 million plant to produce ethylene glycol, a raw material in the manufacture of fiber and filament.

Partners in the joint undertaking are the Oriental Chemical Fiber Corporation and American owned Union Carbide-China Taiwan Ltd.

The new company will be the Oriental Union Chemical Corporation. Oriental Chemical Fiber Corporation will put up US$4.5 million and Union Carbide US$500,000.

The location will be Linyuan about 10 miles from Kaohsiung.

Scheduled for completion in June of 1976, the plant will have initial capacity of 75,000 metric tons a year. This will be raised to 125,000 metric tons.

An American steel maker will undertake a US$3.75 million joint venture with the Tang Eng Iron Works in Kaohsiung to make sponge iron. The Midland-Ross Corporation of Toledo, Ohio, will begin construction of a mill with annual capacity of 1.5 million tons early next year.

Sponge iron is used in steelmaking in place of scrap.

Trains and buses sold more than 7,450,000 tickets during the five-day Lunar New Year season. This is nearly half the population and was an increase of 12 per cent over the corresponding period last year.

The railway system ferried 2,447,579 persons and carried 133,975 metric tons of goods during the five days. Highway buses transported 5,009, 920 persons.

The government is planning to spend US$ 526.31 million in the next five years to remove transportation bottlenecks.

The infrastructure has not kept pace with economic growth. Ports, highways and railroads are overtaxed.

US$192,111,000 will be spent on port improvement at Keelung in the north and Kaohsiung in the south.

Keelung will build four more deepwater wharves and add some other facilities. Part of the US$73.69 million will be used to construct a supplementary port at Shenao, 11 miles to the southeast.

Kaohsiung will add two container wharves and eight deepwater wharves in the next five years. Cost of improvements will be US$118.42 million.

US$215.78 million will be spent on railroads.

Electrification alone carries a price tag of US$78.95 million in local currency and US$126.3 million in foreign exchange.

Under a five-year plan scheduled to start shortly, some 1,000 kilometers (600 miles) of railroad along the west coast will be electrified.

US$10.4 million will be spent on locomotives and cars and other improvements before electrification is completed in 1978.

Highway improvement calls for expenditure of US$118.4 million.

Land requisition for the Taoyuan International Airport has been completed and construction is starting in March as scheduled.

Requisition of some 1,300 hectares of privately owned land was resolved at a meeting among officials of the Taoyuan County Government, members of the Taoyuan County Council and the landowners.

One of nine major projects to be completed in the next five years, the airport will be in service by 1977. It is a three-stage project extending over a period of three decades. The second and third stages will cost an estimated NT$15 billion (US$ 394.7 million).

The first stage of construction will include a 3,600-meter runway, two parking aprons capable of accommodating 22 big airliners, an access road connecting with the North-South Freeway, a terminal building with a floor space of more than 160,000 square meters and other facilities.

The airport ultimately will have three runways and three terminal buildings to take care of projected traffic for three decades.

Construction of Suao Port will get under way this summer. Suao, a fishing township in north eastern Taiwan, will be handling at least 6.5 million metric tons of cargo a year by the end of 1981.

In the south, the government in expanding Anping fishing port into a commercial harbor to accommodate ships of the 5,000-ton class.

The project calls for construction of a new harbor entrance 120 meters wide and 7 meters deep.

Construction started in January and will be completed in four years. Two breakwaters totaling 1520 meters will be built.

Warehouses, roads and other facilities are planned.

Anping is 20 miles north of Kaohsiung. Once an important port, it has been silted up.