China's chief executive and the American foreign minister spent more than four hours discussing — as Secretary Rusk put it — "everything from A to Z". Informed observers suggested that the topics must have included:
* Purges of the "cultural revolution" on the Chinese Communist-held mainland, and their possible effect on the Mao Tse-tung hierarchy and its hold on power.
* Progress of the war in Vietnam and its possible relationship to the struggle between the Republic of China and the Chinese Communist rebels.
* China's position at the forthcoming session of the United Nations General Assembly. In the light of Peiping diplomatic and other failures of the last year, both Chinese and American observers have been suggesting that the ROC position is stronger than in 1965.
* Possible role of ASPAC (the new Asian and Pacific Council, of which China is a member) in the defense of the Far East against Communist aggression. ASPAC headquarters for the 1966-67 year is in Bangkok, and the 1967 conference will be held there. It is no coincidence that the danger of Communist aggression in Thailand is considered second only to that in South Vietnam.
* Economic, political, and social progress of the Republic of China. Rusk, who had visited Taiwan two years ago, commented on the clearly visible signs of this progress, and said it should be an "inspiration to — and a valuable lesson for — many countries".
The Secretary of State also had lengthy, far-reaching talks with Vice President and Premier Yen Chia-kan, new Foreign Minister Wei Tao-ming, Defense Minister Chiang Ching-kuo, and other top leaders. Important discussions also involved Secretary Rusk's principal aide, William P. Bundy, the Assistant Secretary of State for Far Eastern Affairs.
Upon arrival, Secretary Rusk said the United States was watching the mainland purges "with great interest" and that he hoped to learn more about them from free Chinese experts on Communist affairs. Unquestionably, he did so.
He reiterated firm U.S. support for the Republic of China as the sole government of China — "with all of the implications which go with that". He also pledged anew American backing of the Republic of China in the United Nations, and reaffirmed U.S. determination to stand behind the Sino-American mutual defense treaty.
If there were any differences of view between Secretary Rusk and high Chinese officials, they were not brought into the open. However, it is likely there was discussion of the U.S. so-called policy of "bridge-building" to the Chinese Communist regime.
The Republic of China has steadfastly opposed any increase in contacts between the United States and the Peiping regime at either official or unofficial levels. In the view of the Chinese government, the exchanges proposed by Washington would be ineffective and probably dangerous.
Also, as both Secretary Rusk and President Lyndon B. Johnson have found out the hard way, the Communists rebuff every friendly overture. With an intern at situation that is near the exploding point, they dare not do otherwise.
Rusk's visit was important in another way. He came just in time to help get a new American Ambassador, Walter P. McConaughy, off to a good start.
Ambassador McConaughy presented his credentials to President Chiang Kai-shek on June 28. The veteran foreign service officer, who has headed American embassies in Burma, Korea, and Pakistan — and who has served on the Chinese mainland — told President Chiang:
"No enemy, however he may try, can undermine our relationship. The constant reciprocation of this friendship and trust by Your Excellency's government is greatly valued by the American people." He added that the United States and China "shall go forward in the conduct of our common dedication to freedom and justice".
President Chiang took note of a century of Sino-American friendship, the alliance of the last 20 years, and mutual dedication to the freedom of mankind, and said:
"I am confident that if our two countries further promote their solidarity and cooperation, we will certainly realize our common goal — resistance to Communism, maintenance of freedom and justice, and consolidation of a lasting peace in Asia and the whole world."
A few days later, with Secretary Rusk in Taipei for the Fourth of July, Ambassador McConaughy made an Independence Day statement in which he said:
"In words which have stirred the world for generations, the Declaration of Independence boldly proclaimed that all men are created equal ... that they are endowed by their Creator with certain unalienable rights, including life, liberty, and the pursuit of happiness.
"These are the rights that Americans have fought so fiercely to protect on countless battlefields; the rights we seek to preserve in scores of nations whose people share our dedication to liberty; the rights which have brought Americans firmly to the side of the Republic of China; and they are the rights for which Americans are dying not many miles from here, in Vietnam.
"On the Fourth of July, 1966 — friend and adversary alike should be reminded that America's dedication to freedom, and freedom's preservation, cannot and will not be diminished."
Vice President C.K. Yen also had something to say about the 190th anniversary of U.S. independence. Addressing an American University Club dinner on July 2, he said that in Lincoln's words, the world "cannot endure permanently half slave and half free".
"What the United States is doing now to help the people of Vietnam," he said, "is but a continuation and extension of her effort to maintain her great heritage."
He said the cooperation of all free nations is essential to defeat Communist aggression, and added that the Republic of China occupies a unique position because "in our struggle to recover the fatherland and to free our people, we are at the same time fighting the common enemy of mankind".
From the Sino-American contacts, discussions, and statements of late June and early July, one fact stood out above all others:
The United States and the Republic of China have never been closer friends nor more united, dedicated allies. Those in America who have insisted that Washington recognize Peiping in the name of "realism" have made no slightest progress in undermining a free Chinese-American relationship that is as important to the 650 million people of the mainland as to the 13 million of Taiwan.
Diplomatic activity involving the Republic of China was not confined to that with the United States.
Good news came from Africa. With the establishment of diplomatic relations with Malawi, the ROC moved ahead of the Chinese Communists in the recognition struggle on that continent. Malawi is the 16th country to recognize the Republic of China. The count for Peiping is 15.
The announcement was made by Malawi's President H. Kamuzu Banda after a meeting with Chinese Vice Minister of Foreign Affairs H. K. Yang, who attended President Banda's inauguration as the representative of President Chiang Kai-shek. Malawi became a republic July 6. Dr. Banda is the country's former prime minister.
The Chinese Foreign Ministry has announced that an ambassador soon will be dispatched to Malawi.
Another new Chinese embassy is in store for Male, the capital of the Maldive Islands, which gained its independence from Great Britain a year ago. Ambassador will be Sze Sung-hsi who has been serving in the West Asiatic Affairs Department of the Foreign Ministry.
The Maldives is a member of the United Nations, and last year abstained in voting on the China representation issue. Sino-Maldive recognition thus assures the ROC of another vote at the U.N. this fall.
Relations with the Vatican were drawn closer. The Holy See announced it will elevate its Apostolic Internunciature (legation) in Taipei to the level of Apostolic Nunciature (embassay) and an acting Nuncio (ambassador) will be appointed. The Apostolic Internunciature has been headed by Archbishop Giuseppe Caprio, who has returned to the Vatican for consultations.
The Republic of China has had an embassy at the Vatican since 1959. The present Ambassador, Sie Cheong-kang, 69, is retiring, and will be replaced by former Foreign Minister Shen Chang-huan, one of China's most distinguished statesmen-diplomats.
Although establishment of Sino-Malaysian diplomatic relations lies in the future, the Southeast Asian country is said to have decided to open a consulate in Taipei. The Republic of China has had a consulate in Kuala Lumpur for the last two years.
Prime Miniser Tunku Abdul Rahman was quoted as saying it would be a "good thing" to have a consulate on Taiwan be cause of "trade relations and the increasing number of Malaysians visiting Taiwan". In the last two or three years, the Republic of China has materially increased commercial intercourse with Malaysia, which long has had a large volume of trade — although no diplomatic relations — with the Chinese Communists.
In a final diplomatic note, the Foreign Ministry announced that its Latin American representation now totals 20 embassies. Several former legations have been elevated to embassy level in recent years.
One big factor in ROC successes in Africa has been the technical assistance provided there, especially in agriculture. Of the 16 African nations recognizing free China, 13 are being served by farm demonstration teams. Two other countries, Gambia and Senegal, have no diplomatic relations with Taipei but have asked for and received agricultural assistance.
In Taiwan, the seventh seminar for African agronomists came to an end this summer, and all 45 participants expressed their thanks to China before returning home to put their new knowledge to work. These are some sample testimonials:
"Knowledge of farming machines is very helpful ... Rice cultivation techniques we have learned will be most useful … We want more Chinese specialists to come to our countries ... Lessons about irrigation and fertilizer are valuable ... China's advanced farmer associations have much to teach us."
Conditions of Taiwan and many of the African countries are similar. Additionally, the labor-intensive farm approach of Taiwan is what the African countries need. They are not in a financial position to spend huge sums on the mechanization of agriculture.
Other testimonials to ROC farm progress came from 53 representatives of 7 Asian nations who gathered in Taipei for a 10-day seminar on agricultural development. Sponsors were the U.S. Agency for International Development and the Sino-American Joint Commission on Rural Reconstruction.
Agronomists from Korea, the Philippines, Vietnam, Thailand, Malaysia, and Turkey attributed Taiwan farm progress (production has been doubled in the last two decades) to advanced technology and well-organized farmers' associations. Singled out for special attention were improved irrigation practices, utilization of marginal land, intensive use of fertilizer, land consolidation, and land reform.
Addressing the closing session, Vice President C.K. Yen said that land reform had worked a miracle of productivity and that 365 associations were solving the problems of the island's 6 million farmers.
In trade, the Republic of China was well on its way to a second straight billion dollar year — with every expectation it will be in the black.
For the first six months, foreign trade totaled US$543 — US$271 in exports and US$272 in imports. Compared with 1965, exports were up US$10 million and imports were down US$1 million.
Chairman P. Y. Hsu of the Foreign Exchange and Trade Commission said the balance was actually favorable by US$40 million, because China does not have to pay in foreign exchange for U.S. farm imports under Public Law 480 and equipment imported by foreign and overseas Chinese industrial investors.
Sugar was down by US$18 million and rice by US$10 million, but other exports were up. Textiles stood at US$36 million. Then came bananas, sugar, wood products, metals and products, canned foods, chemicals, rice, cement, and canned pineapple in that order.
Among imports, raw materials made up 53 per cent, machinery 25 per cent, and consumer goods 22 per cent.
Other favorable economic notes included these:
— Bank deposits increased by 10.3 per cent (to US$655 million) from April of last year to April of 1966. Savings deposits were up by nearly 26 per cent. The currency issuance was down slightly and the commodity index dipped to 155.48 in April (1959=100).
— Tourists in May totaled 16,050 for an all-time one-month total. R&R servicemen from Vietnam were not included in the count. Tourist total for the first five months was 71,549, a gain of 37 per cent over 1965. Japanese topped the list of nationalities — 26,505 versus 22,428 Americans.
— Power rates have been reduced by 2.48 per cent as of July because Taiwan Power Company earnings exceeded 8 per cent last year. The cut will benefit industry, primarily. The new average of power rates is NT$0.5037 per kilowatt hour, the fourth lowest in the world (after Norway, Sweden, and Canada).
— China's flag is flown by more than 200 merchant ships totaling 2 million tons on routes that girdle the world. Chinese seamen aboard flag and foreign vessels exceed 15,000 and their earnings are nearly US$8 million annually.
— Self-sufficiency has been maintained in food supply despite the world's highest population density proportionate to arable land. At the end of 1965, Taiwan had 351 persons per square kilometer, and each square kilometer of arable land fed 1,383 persons. The birth rate has dropped from 3.67 to 2.722 per cent in the last 10 years.
Appointment of the month was Dr. Cha Liang-chien as President (Chief Justice) of the Supreme Court. President Chiang Kai-shek named Dr. Cha, 61, who holds a doctor's degree in juridical science from the University of Michigan and whose most recent post was vice minister of justice.
The New Chief Justice has represented the Republic of China at international conferences throughout the world and also is the author of several legal treatises. He is a member of the American Judicial Society.