Taiwan Today

A series of autumn meetings brings about increased understanding and closer cooperation between Tokyo and Taipei in economic, political and social activities

Relations between the Republic of China and Japan moved toward a new level of understanding and cooperation at several meetings in Tokyo and Taipei during late September and early October. Meeting in the Japanese capital was the sixth World Chinese Traders' Conference. Taipei was the site of the second Sino-Japanese Trade Promotion Association meeting and the 13th conference of the Committee for the Promotion of Sino-Japanese Cooperation.

Three hundred and fifty representatives from 37 countries attended the World Chinese Traders' Convention and made plans to promote trade between the Republic of China and their countries of residence. The 40-man delegation from Taiwan was one of the largest at the three-day meeting. This was the first session since the organization was raised from a regional to a world level. Future conferences will be held every two years; the next is scheduled for Taipei in 1970.

President Chiang Kai-shek's message to the traders stressed the necessity of building up the Chinese communities all over the world and stimulating cooperation between these communities and the government and people of the Republic of China. The President urged that:
-Traders help coordinate the economic development of Taiwan with that of their own communities and buy more from their homeland.
-Trade research and shipping be expanded and improved to serve the interests of free Chinese everywhere.
-Boycott of Chinese Communist goods be tightened throughout the world.
-Technical cooperation between the ROC and overseas communities be increased.
-Overseas investment in Taiwan be encouraged.

President Chiang said the diligence, the good neighborliness and the courage of the overseas Chinese are known throughout the world. He expressed confidence that the conference would lead to progress and prosperity for Taiwan and the overseas communities, and that this mutual effort will contribute importantly to the defeat of Chinese Communism.

Vice President/Prime Minister C.K. Yen's message urged the participants to unite in cooperation and display the "excellent endowments of the Chinese to the free world".

Heading the Taiwan delegation was Wan I-cha, chairman of the General Chamber of Commerce. Four high government officials attended: Minister of Economic Affairs K.T. Li; Kao Hsin, chairman of the Overseas Chinese Affairs Commission; Chien Chang-tsu, vice chairman of the Foreign Exchange and Trade Commission; and Ho Yi-wu, deputy chairman of the Overseas Chinese Affairs Commission.

Lin Yi-wen, president of the Federation of Chinese Overseas Associations in Japan, opened the conference in the flower-bedecked Prince Hotel. He observed that in all the world, the Chinese were the only people who could hold such a conference. The messages from President Chiang Kai-shek and Vice President C.K. Yen were read by Chinese Ambassador Chen Chih-mai. Ambassador Chen also spoke for himself, telling the traders that international commerce is one of the principal contributors to world peace and human welfare.

Minister Li emphasized the need for increased production to assure a higher level of international trade. He said that traders should give attention to:
-Sale of goods produced in Taiwan. Everyone of the more than 17 million overseas Chinese should be an effective salesman for the products of the homeland, he said.
-Participation in the economic development of Taiwan. He pointed out that investment procedures have been simplified; only 3 forms are now required versus the previous 33.
-Increased contribution to the development of economies in the countries of Chinese residence.

Upon his return to Taipei, Minister Li said the conference had been highly successful and should make an outstanding contribution to overseas Chinese development and trade with the Republic of China.

Many high-ranking officials were present to welcome the Chinese traders, including former Primer Minister Nobusuke Kishi.

Unanimously approved by the traders were plans to establish an overseas Chinese bank in Switzerland, Panama or Luxembourg. Initial capital of US$50 million has been subscribed and the institution is expected to be ready to make its first loans by September of 1969.

Tsai Ming-yu, a businessman who is president of the Ming-yu Real Estate Co., Japan Credit Guaranty Co. and Japan Pearls and Jewels Co. with capitalization of US$4.5 million, said subscribers' include Chinese bankers and businessmen from allover the world. The choice of a site will be based on freedom from exchange controls. Tsai said Panama is attractive because many Chinese shipping companies are based there.

The bank will not be exclusively Chinese. Leading bankers of many countries will be invited to become directors and service will be extended to banks and customers without regard to race or nationality. Instead of branches, the bank will operate through extant local banks. The principal objective is to provide new capital for investment and international trade.

Convened at the Taiwan Cement Corporation Building in Taipei was the second conference of the Sino-Japanese Trade Promotion Association, which was established in July of 1967 upon the recommendation of the Sino-Japanese Cooperation Promotion Committee. The first meeting was held in Tokyo.

Heading the Japanese delegation of six representatives was Teizo Horikoshi, vice president of the Japanese Economic Organizations Association. Former Prime Minister Nobusuki Kishi was adviser. The Chinese leader and co-chairman of the conference was Koo Chen-fu, president of the Chinese National Federation of Industry and Commerce. Other Chinese representatives included Lin Ting-sheng, president of the Taiwan Association of Industries; Wilfred F.P. Ling, deputy director of the Central Trust of China; Wu Dau-kung, president of the China Merchants Steam Navigation Company; Lo Chi-yuan, director of the Taiwan Agricultural Products Export Market Study Center; and Wang Yuan-heng, general manager of the China Trade and Development Corporation.

Koo Chen-fu proposed measures to correct a trade imbalance that favors Japan by almost 3 to 1. He suggested that the Japanese buy more of Taiwan's agricultural and light industrial products. "Only candid discussions at this meeting can really help promote trade between the two countries," he said. Japan should step up the volume of Taiwan investment, Koo said, and cited a favorable investment climate that includes government assistance, tax incentives, low wages and plentiful skilled labor.

Teizo Horikoshi, the Japanese leader, said his delegation hoped for government simplification of trade regulations and improved quality control and inspection of export commodities.

A resolution urging the Chinese and Japanese governments to take actions to improve trade relations was passed unanimously. The recommendations of both sides were referred to the governments for consideration and implementation.

Trade also was a principal topic of discussion at the 13th annual conference of the Committee for the Promotion of Sino-Japanese Cooperation. Some 120 Chinese and Japanese industrial, business and government leaders attended the three days of sessions at the Ambassador Hotel. The Japanese were guests at Double Tenth National Day ceremonies after conference adjournment.

Ku Cheng-kang, the Chinese chief delegate and meeting chairman, proposed increased efforts to balance trade and urged closer coordination in production and exports to avert harmful competition. Calling attention to the increasing Communist threat, he supported Sino-Japanese participation in a regional defense system.

Tadashi Adachi, the Japanese chief delegate, agreed that China and Japan should cooperate culturally and politically as well as economically. He expressed appreciation for the welcome extended to Japanese capital. Also addressing the opening session were Presidential Secretary-General Chang Chun, Foreign Minister Wei Tao-ming, former Japanese Prime Minister Kishi and Japanese Ambassador Hisanaga Shimadzu.

Discussed in depth and referred to the two governments were proposals for another US$150 million Japanese loan to the Republic of China. The first such loan was extended in 1965 and has not yet been exhausted. Funds have gone to dam and harbor construction, modernization of sugar equipment and for power facilities.

In trade, Japan was urged to buy more of Taiwan's low-cost textiles. The level of purchases is expected to be about US$5 million this year. Hope was expressed for Japanese assistance to Chinese shipping. Japanese asked for improvement in investment procedures and the simplification of entry and exit regulations.

Sadachika Nabeyama of Japan said Japan can be expected to increase purchase of Taiwan industrial products that can be made more economically in Chinese factories. In return, the Republic of China will buy Japanese heavy machinery. Nabeyama called this "a division of production according to productive efficiency". This view corresponded with reports from Tokyo that Japan will be buying more Taiwan manufactures because of rising Japanese costs.

The Chinese government has considered buying more from Western Europe, with which China's trade balance is favorable, in order to reduce the deficits in Japanese and American trade. Japanese trade soon will be affected by Taiwan's growing capacity to make goods that formerly were imported from Japan. An analysis by the Council for International Economic Cooperation and Development said that five categories of such goods involved US$80 million worth of imports from Japan last year. The goods are steel products, machinery, textiles, electrical products and watches and clocks.

Chinese shipping companies suggested that the government negotiate termination of a Japanese regulation prohibiting shipment of Japanese cargo in Chinese vessels built with loans from Japanese banks. They said Chinese shipping companies buying ships from Japan are compelled to enter into such an agreement. Construction of a 12,500-ton freighter by Mitsubishi Heavy Industries has been held up by reluctance of the China Merchants Steam Navigation Company to make such a commitment. Many ships are scheduled for construction in Japan under the Chinese government's program to modernize the merchant marine.

Bananas has been Japan's biggest import from Taiwan in recent years. The 12th Sino-Japanese Banana Trade Conference was held in Taipei in October and resulted in Japanese agreement to buy 1,680,000 baskets (of 100 pounds) in the last three months of the year. The original schedule had called for 1,550,000 baskets. For the first eight months of 1968, Japan bought 6,436,824 baskets worth US$45 million. This was 63.56 per cent of Japan's total banana imports.

Many differences and arguments have plagued the banana trade. Japan has maintained that quality is uneven, that volume is too low in winter and spring, that the spoilage rate is too high and that Taiwan has not established an effective sales system to promote free competition. The Republic of China has criticized delays in unloading and Japanese imports from Central America and Southeast Asia in efforts to lower the Taiwan price to an uneconomical level. Virtually all of Taiwan's export bananas go to Japan.

Some of Taiwan's bananas are now being shipping in cartons instead of baskets. Experiments have been conducted in the use of plastic packaging. New banana boats are being put into service. The Chinese government has ought to reduce dependence on traders and give the grower a larger voice and profit. One Tokyo report said the duty on bananas would be cut from 65 to 60 per cent next year, a step that would tend to spur Taiwan sales.

Presidential Secretary-General Chang Chun, a life-long friend of Japan, went to Tokyo in late October for memorial services marking the first anniversary of the death of Shigeru Yoshida, Japan's postwar prime minister. He met with Prime Minister Eisaku Sato and Foreign Minister Takeo Miki. The Chinese elder statesman proposed that China, Japan and Korea provide the nucleus for a regional system of collective security.

The United States is finding it difficult to maintain peace throughout the world, Dr. Chang said, and recalled the prediction of General Douglas MacArthur that the next 1,000 years will be known as the Asian era. He said that events in Japan during the next two years may decide the destiny of Asia for the next century. He also said he foresees drastic changes on the Chinese mainland during the same period.

The United States has contributed manpower and materials to the defense of free Asia, Dr. Chang told members of the Japanese Diet, but sometimes lacks a clear understanding of Asia and Asians - as shown by the wars in Korea and Vietnam. Asians should move toward solutions of their own problems, he continued, and Japan should play an important role in this process.

September-October developments were encouraging for the overall Sino-Japanese relationship. There were disagreements and differences as well as cooperation and like-mindedness. But the meetings and contacts were constructive and pointed to the solution of economic and political problems. Events in Taipei and Tokyo spoke much more eloquently than did the small Japanese leftist delegation that went to Peiping for October 1 ceremonies. So did the rising volume of Japanese trade with free China and the Japanese government's increasing awareness that its self-interest lies in closer ties with the Republic of China and not with the Chinese Communists.