The Republic of China received an object lesson in the unreliability of international friendship just after midnight of December 16, 1978, when President Jimmy Carter dropped his bomb of recognizing the Chinese Communists and derecognizing this country. There had been no warning. To the contrary, throughout their flirtation with the Chinese Communists, Presidents Nixon, Ford and Carter had repeatedly pledged that there would be no punishment of old Chinese friends in order to make new ones. Free Chinese survival has not been served by that promise.
It was people-to-people friendship rather than that of the governmental level which assured the ongoing U.S.-ROC relationship under the terms of the Taiwan Relations Act. This legislation was demanded in consequence of the long-established friendship of the American people for those of the Republic of China and implemented by friendly individual members of the U.S. Congress. Only a few votes were cast against the act, and those came principally from Congressmen who felt that the Republic of China had been betrayed and that the Taiwan Relations Act didn't go nearly far enough to make amends. President Carter, who was not in favor of many provisions of the legislation, had no alternative except to sign it. Otherwise he would have faced the prospect of legislation even less to his liking.
If the friendship of governments cannot be relied upon, that of their peoples usually can. That at least is the experience of the Republic of China, which has enjoyed the friendship of peoples all over the world regardless of the attitude of their governments. These friends have continued trade and visitation in the absence of diplomatic relations. They have come to Taiwan when they could and welcomed Free China's people to their shores. They have engaged in cultural exchanges and recently have influenced their governments to reopen ROC relations just short of officiality, The Chinese Communist regime may have formal establishments all over the world but its representatives have not made friends, nor are they allowed to. In these same communities the Chinese remaining loyal to the Republic of China have even more friends than when an embassy of the Republic of China was to be found nearby.
People's friendship for the Republic of China and its citizens is exhibited in many ways. One of the most moving was that shown by the servicemen of the United States in the early months of 1979. They knew that they would soon be leaving, that the mutual security treaty had been scuttled by President Carter and that all military forces had to be withdrawn under the terms of the American chief executive's agreement with the Chinese Communists. Almost without exception, members of the U.S. military and their families sought out friends and even acquaintances in Taiwan to say how sorry they were to be departing and how much their tours in the Republic of China had meant to them.
Although most of the American servicemen knew little of international politics and were loyal to their commander in chief, they were nearly unanimous in expressing the opinion that a mistake had somehow been made. Over and over again the question was asked: What did the Republic of China do wrong? It was in fact the same question that Chinese friends of the United States and of the American people were asking—a question which has never been satisfactorily answered. The Americans in Taiwan—civilians as well as military—didn't so much question the new relationship with the Chinese Communists as they did the scrapping of the old one with the Republic of China. They couldn't understand how their great and strong country was unable to preserve one Chinese relationship while entering into another. The same question was asked many times in the course of debate over the Taiwan Relations Act but without any acceptable position statement from the Carter administration.
In the weeks just after the Carter announcement, thousands of volunteer workers canvassed the cities and towns of Taiwan to collect money for a people's defense fund. As they pinned small ROC flags on contributors, they were often approached by Americans who asked to contribute. Americans did so and wore the flag proudly. It wasn't that they were ashamed of being American's but that they regretted what their government had done to a friend. They wished to show their sympathy and provide some small measure of support to their friends of Taiwan.
In the months and years since, expressions of the American peoples' friendship have been continued and even expanded. Americans still make up the single biggest component of foreigners resident in the Republic of China. The embassy and U.S. military organizations are gone. Everything else remains—American clubs and organizations, American schools and churches, American businesses and an American Chamber of Commerce that ranks among the biggest and most active abroad. The military radio station vanished but was succeeded by an international network which addresses itself to all foreigners but in the American idiom and with the backing of the Chinese government. American goods dominate the imports on sale in department stores and supermarkets. American movies are most frequently shown at cinemas. Of the foreign shows offered on television, almost all are American.
When President Carter's representative came to Taiwan in the aftermath of President Carter's announcement, he was correctly but not warmly received. At one time his car was blocked by throngs of demonstrators. Some fears of violence were expressed by members of his party. There was never the slightest danger that this high-ranking official American or any other American would be molested. Americans walk the streets of Taiwan by night and day without fear and without the slightest indication that their government is no longer recognized by the Republic of China. They are friends. Their "embassy in all but name," the American Institute in Taiwan, has been allowed to occupy old U.S. premises and function freely and with the full protection of the government. Publications of the United States, official and unofficial, enter the Republic of China freely and circulate without interference or question.
Despite protests of the Chinese Communists, the government and people of the Republic of China have enjoyed similar privileges in the United States. Americans appear to be more interested than ever in the Republic of China, its problems, its prospects and the reasons for differences with the Chinese Communists. People call at offices of the ROC in the United States to ask for information and materials. Visitors from Taiwan are much in demand as lecturers and TV and radio interview subjects. Young people write to the Republic of China for informational materials and enter essay contests sponsored by organizations interested in Sino-American friendship.
In April two winning speeches in the "I Speak for Freedom" contest sponsored by the U.S. Friends of Free China were inserted in the Congressional Record. Introducing one, Senator Harry F. Byrd Jr. of Virginia said: "Miss Jeanne Lindner of Charlottesville, Va., who attends Western Albemarle High School, has won a scholarship for her original speech in the 'I Speak for Freedom' contest sponsored nationally by Friends of Free China. I wish to call this speech to the attention of my colleagues because I think it represents some of the good things our young people are doing, and to congratulate Miss Lindner on her notable achievement. "
The text of the speech follows:
"The economy of the Republic of China on Taiwan has grown tremendously. What encouraged this growth? The government gave the economy freedom to develop, constantly changing but always progressing. Such economic freedom affected not only international relations, but also internal developments.
"First, let's look at international relations. We can divide this into four parts: foreign aid, private foreign investment, the exchange of technology and import-export opportunities.
"First, foreign aid. U.S. aid to Taiwan after World War II was important to Taiwan's initial economic development. According to Neil Jacoby in 'U.S. Aid to Taiwan,' foreign aid provided about one-third of the total developmental resources of Taiwan) but Taiwan's excellent economic policies determined the productivity of the aid. In fact, within 15 years after aid was begun, Taiwan's economy had developed enough to be self-supporting.
"U.S. aid stopped in 1964 [1965], but foreign money kept flowing into the economy. Why? Because Taiwan had adopted policies encouraging investment by private foreign sources. These policies, discussed in a booklet prepared by the Hsinchu Science-Based Industrial Park, included special tax exemptions and a guarantee against government requisition of privately owned enterprises.
"In addition to foreign money, foreign technology was also brought into the country. Taiwan adapted knowledge gained from other countries to its own situation to spur the economy's growth. Use of available knowledge enabled Taiwan's economy to develop more quickly than some other economies had been able to develop.
"One other factor important to Taiwan's development was its import-export opportunities. Taiwan had limited natural resources and has to import most of its raw materials. Consequently, it had to export a lot to maintain a healthy balance of payments. Thus, it needed both a large base from which to import its materials, and a large market to receive its exports. Taiwan's free economy encouraged good trade relationships with other countries and thus secured the needed sources and market.
"So we see that Taiwan's free economy promoted favorable foreign relations. But the government also influenced internal developments. For example, it encouraged private investments, stimulated free enterprise, and developed the infrastructure — Taiwan's system of transportation, communication, power and public works.
"How did it do this? Government policies encouraged private domestic investments just as they had encouraged private foreign investment. Private individuals were encouraged to take over business, industrial and agricultural projects that were once public concerns. The government further encouraged free enterprise through a land reform program, which in turn eliminated the exorbitant rents paid by farmers to wealthy land owners. Because the Chinese people are intelligent and highly motivated, with a willingness to work, the land reform program was an especially successful incentive to improve production.
"Taiwan's infrastructure also profited from economic freedom. Under Japanese rule a good infrastructural foundation had been established. Taiwan's free economy subsequently encouraged its continued development.
"We see, then, that Taiwan's economic freedom favorably affected internal developments just as it also affected international relations. But how much did Taiwan's free economy grow? By 1964 [1965], when the U.S. discontinued aid to Taiwan, Taiwan's economy ranked in the middle third of all nations' economies in terms of development. Compared solely with Asian countries Taiwan was relatively advanced, or well developed. And Taiwan's economy has continued to progress. Over the last 15 years it has had a growth rate of about 10 percent a year. Productivity rates have continued to improve; the per capita income and the gross national product have kept increasing. The Republic of China on Taiwan continues to show the world the progress to be had with a free economy."
Senator Strom Thurmond of South Caroline introduced the other speech in the Congressional Record. In his introductory remarks, he said: "I have learned that a young lady from my state, Miss Lisa Panosian, daughter of Dr. and Mrs. Edward Panosian of Greenville, has received a commendable award of at least a $1,000 scholarship through competition in the 'I Speak for Freedom' high school speech contest. I wish to bring this speech to the attention of my colleagues because of the splendid job Miss Panosian has done, and because I feel it is a prime example of what tomorrow's leaders are doing today to prepare themselves for the challenges ahead."
The text of Miss Panosian's speech on "How Economic Freedom Affects Progress:"
"The air was stifling one late afternoon when Fu Chong came home from his day's work in the collective rice paddies of the state. As he reflected on the events of the day, his mind then, as often before, ruled with a growing discontent for his situation in life. He was frustrated anew by the obvious futility of trying to improve the means of production in his rice paddies. Ah, but that was the problem: they were not his rice paddies. They belonged to the 'wise,' magnanimous state, whose chief concern was the best interests of her people.
"Was not each person who worked on her communal rice paddies laboring unselfishly for the good of society, and did not the unselfish concern for society as a whole prompt him to work diligently to increase and improve production? Did he need a personal profit motive to create in him an incentive to perform to the best of his ability? Fu Chong's answer to that question was a definite 'Yes!'
"He knew it to be so from his own experience. For he had often thought of changes and improvements he would make if those rice paddies were his, if he were to gain from their increased production, if he were able to enjoy the fruits of his labor. 'But no,' he would end resignedly, 'Why try? Who would indeed benefit from my efforts? The party officials?' And so, day after day, Fu Chong fulfilled his duty and no more in the collective rice paddies of the state and received wages equal to those of every other worker of his kind.
"Not very far away on the shores of the little island of Taiwan, Sun Fuchin made his way home along the path which led from his rice paddies. He was weary from the heat and toil of the day, for he had risen early that morning and it was now dusk. His back ached from hours of stooping over his work. But he was pleased; he was content with his labors, for he could see the profits coming in already. Since the land reform program had been established, enabling him to own the land on which he labored, his income had almost tripled. He had the freedom to produce on his land just as much as he chose. He could sell his crop to whomever he desired and at a price which he determined. He felt a sense of pride which comes with ownership. He knew the satisfaction which comes from a task well done. He was eager to experiment with the new ideas he had been developing to increase productivity even more. He had spent many evening hours working out possible improvements for it. And so, day after day, Sun Fuchin labored in his rice paddies, diligently cultivating his plants and using all his resources finding ways to better his crop. As reward for his efforts, he received the profits from the sale of his rice.
"In 1949 destitute Nationalist Chinese forces left mainland China and settled in Taiwan, then known as Formosa. Just sixteen years later in 1965 Formosa declared itself financially sound and no longer in need of U.S. economic aid. Today Taiwan holds the second-highest standard of living in all Asia. These facts are truly glowing tributes to the success of the free enterprise system.
"Progress in any society begins with the individual, for a society is made up of individuals. When a government encourages its people to make a profit, by not taxing them above what is needful, by not regulating their businesses beyond what is necessary, that government is encouraging progress. It is only natural for a man to work more diligently, more resourcefully if he sees that work as an opportunity for personal gain and advancement. When individuals in a society progress, that society as a whole will progress, but that progress can begin only when the individual is free."
The two speech contest winners and many others are friends of the Chinese people not merely because of things they have heard or read but because of awareness that they have a common faith in freedom. The GI who departed Taiwan in 1979 had been dispatched to the Republic of China to help defend freedom. He had found himself in a free society but suddenly found his country no longer wished to stand on the barricades with old friends.
ROC-U.S. friendship is as strong as ever at the people's level because of mutual belief in the principle of governments chosen by consent of the governed and obligated to preserve individual freedom and personal liberty.