Wednesday , September 21, 2011
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AmCham Taipei Marks ‘60 Years of Partnership’ President Ma and other VIP guests attend gala reception in historic venue BY DON SHAPIRO elebrating the 60th anniversary of its founding, the American Chamber of Commerce in Taipei held a festive cocktail reception on Sept. 14, attended by nearly 400 AmCham members and guests, including officials from the Taiwan government and the American Institute in Taiwan. In line with AmCham Taipei’s theme for this anniversary year of “60 Years of Partnership,” the Ministry of Foreign Affairs co-hosted the event, which also commemorated the 100th anniversary of the Republic of China. The reception took place at an appropriately historic location – the Taipei Guest House near the Presidential Office Building. Built in 1901, the structure was used as the official residence of the Governor-General during the Japanese colonial period and is now primarily a venue for governmental ceremonial events. President Ma Ying-jeou presented congratulatory remarks, as did Foreign Minister Timothy Yang and visiting U.S. Assistant Secretary of Commerce for Trade Promotion Suresh Kumar. Robert D. Hormats, Under Secretary of State for Economic, Energy and Agricultural Affairs, delivered a message by means of videotape, and AmCham Chairman Bill Wiseman spoke on behalf of the Chamber. Among the VIP guests in attendance were Secretary-General of the National Security Councl Victor Hu, Minister of State Ovid Tzeng, Minister of Finance Lee Sush-der, Minister of Environmental Protection Stephen Shen, and Minister of Public Construction Lee Hongyuan. Exemplifying the spirit of dedication of members of the AmCham leadership through the years, eight former chairmen of the organization now living abroad returned for the occasion. One of them, Robert P. Parker, was chairman-elect in December 1978 when U.S. President Jimmy Carter announced the break in diplomatic relations with Taiwan in order to recognize China. With the U.S. embassy about to close and AIT not yet established, AmCham under Parker’s leadership stepped into the vacuum to help assure that Taiwan’s security and stability were not jeopardized. Parker testified before committees of both houses of Congress, and a few months later many of the Chamber’s recommendations were incorporated in the U.S. legislation, the Taiwan Relations Act, that has formed the basis of America’s continued dealings with Taiwan ever since. “The Taiwan Relations Act, after 33 years of life, has proved to be a very effective means to maintain our partnership,” Ma said in his remarks. “Thank you, Amcham.” Following derecognition, AmCham was also influential in ensuring that institutions important to the expatriate community in Taipei – the Taipei American School, American Club, and an English-language radio station – were able to continue operating smoothly. The Chamber was particularly closely involved in the creation of the radio station, International Community Radio Taiwan (ICRT), which was able to take over the facilities being vacated by the U.S. military station, the Armed Forces Network Taiwan (AFNT). In an era before the Internet, cell phone, and other advanced forms of communication, the provision of news and information in English was vital to foreign residents, especially in times of emergency such as earthquakes and typhoons. With support from the Taiwan government, AmCham helped organize ICRT together with Jeffrey L.S. Koo of Chinatrust on behalf of the Taiwan business community. During the initial period, AmCham members held positions on the board of the foundation that operates the station. Access to English-language radio was also highly appreciated by the local community, as
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1. AmCham Taipei was honored to have high-ranking participation from the Taiwan and U.S. governments, as well as the American Institute in Taiwan, to help it celebrate its 60th anniversary with a gala reception. Above, raising a toast to salute the Republic of China on its 100th anniversary and AmCham Taipei on its 60th, were (left to right): AmCham President Andrea Wu, National Security Council Secretary-general Victor Hu, Minister of Foreign Affairs Timothy Yang, President of the Republic of China Ma Ying-jeou, AmCham Chairman Bill Wiseman, U.S. Assistant Secretary of Commerce Suresh Kumar, and AIT Director William Stanton. 2. Nearly 400 AmCham members and guests attended the event at the historic Taipei Guest House. 3. President Ma stopped to greet many old friends among the AmCham members and guests.
lations and best wishes to AmCham. “Over the last six decades, AmCham Taipei has been a devoted partner to Taiwan, helping promote Taiwan’s development as a leading hub of international trade and investment in Asia,” he said. “This effort began 60 years ago during the particularly challenging period following the end of World War II. Aid from the United States during those crucial years helped establish the foundation of the world-class economy Taiwan has become.” Noting that officials in Washington “value our relationship with the American Chamber here,” Assistant Secretary of Commerce Kumar said: “We have come to rely on you for your support to the businesses we want to promote and also in shaping economic policy. This is a vital role that we do not take lightly.”
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Aiding Taiwan’s development As several of the speakers noted, AmCham was founded in 1951 in the difficult, even inauspicious, climate that followed the withdrawal of the Republic of China government to Taiwan two years before. The Korean War had just broken out, and the stability of the region was in doubt. The three U.S. firms behind the drive to start an American Chamber were trading companies chiefly representing U.S. manufacturers of machinery, and their main goal was to lobby Washington to relax regulations restricting the private-sector export of equipment to this area. Before the organization’s official registration with the Taipei city government, two oil companies were enlisted as additional charter members – and eight motion picture distributors joined soon afterward. The group started writing letters “to everyone we could think of in Washington,” the first chairman, Robert Scanland later recalled, and its efforts were successful in bringing about a liberalization of U.S. policy. — Continued on page 11
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President Ma noted in his remarks. He recalled how much he and his contemporaries enjoyed listening to rock music on AFNT as they were growing up, and he even sang a few bars of “Puff the Magic Dragon” to prove his point. In his speech, Foreign Minister Yang noted that “AmCham has grown extensively since its establishment” in 1951, when it was started by just five companies (the membership now consists of more than 900 members representing nearly 500 companies). He also emphasized the major part it has played in Taiwan’s national development. “Especially in the early years, when Taiwan's economy was just budding, AmCham was a source of precious capital and technology, as well as training and job opportunities. Even now, it is continuing to facilitate a wide array of exchanges between Taiwan and the United States.” “AmCham has also encouraged us to further open our market and make our legal regime more comprehensive,” said Minister Yang. “In its annual White Paper, AmCham has constantly provided many valuable suggestions for enhancing Taiwan’s global competitiveness.” “We cherish our partnership with AmCham not only because it has been a promoter of our economic and trade development, but also because it has been an active partner that helps strengthen U.S.-Taiwan relations” in many ways, the minister continued. He cited AmCham’s annual “Doorknock” trip to Washington, D.C., to call on various government agencies, Congressional offices, think tanks, and others to discuss ways of bolstering the bilateral economic relationship. In addition, he mentioned the Chamber’s positions in favor of the resumption of trade talks between Taiwan and the United States, inclusion of Taiwan in the U.S. visa-waiver program, and the regular dispatch of Cabinet-level U.S. officials to visit Taiwan to further trade and investment opportunities. Speaking on a pre-recorded video, Under Secretary Hormats also extended his congratu-
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Wednesday , September 21, 2011
— Continued from page 10
By the 1960s, the economy had not only stabilized, but was ready for the take-off period of rapid growth. American-invested companies played a key role during these years. Among the largest players were manufacturers and exporters of black-and-white television sets, including such famous brands at the time as RCA, Admiral, and Zenith, as well as makers of components such as General Instrument. By introducing modern production and management methods and by training both technicians and executives, their presence laid the groundwork for Taiwan’s later successful development of an indigenous electronics, and eventually computer, industry. Two investments by U.S. companies in that era became case studies for how foreign companies can help contribute to industrial modernization. One was Singer’s establishment in 1963 of a plant to make sewing machines. The existing domestic sewing machine manufacturers feared the competition and had asked the government not to approve the investment application, but the authorities hoped Singer’s entry would help raise the technological level of the entire industry. That is precisely what occurred. Previously the industry did not have standardized parts, and often parts had to be filed down manually to allow them to fit. Singer provided blueprints to the parts makers and insisted that specifications be met. The local
sewing machine manufacturers also began to benefit from the quality improvement of the parts, and eventually the domestic industry association wrote a letter of commendation to Singer. The other case was a US$6 million investment from the National Distillers and Chemical Co. to create a wholly owned subsidiary, USI Far East (USI) Corp. to make polyethylene – the only PE production facility in all of Southeast Asia. Whereas Singer worked to raise the quality of its parts suppliers, USI dispatched engineers to the plants of its customers to help them elevate the quality of the packaging materials and other products made from PE. It also established a processing laboratory equipped with various kinds of molding machines that customers could use for developing new products. Starting in the 1970s, with the creation of the Industrial Technology Research Institute and the Hsinchu Science Park, Taiwan moved into the high-tech area. Again, U.S.-invested operations were instrumental in spurring this growth, as companies such as IBM and Hewlett-Packard sourced ever greater quantities of Taiwan-made components and finished products.
The AmCham Taipei “Doorknock” delegation in Washington, D.C. in September 2010.
In the late 1960s and early 1970s, AmCham Taipei started to take on the characteristics of the organization as it is known today. Instead of a desk in borrowed quarters, with a part-time secretary, it hired full-time staff and moved to its own space in a prominent office building. AmCham began publishing a bimonthly English magazine, Taipei American Chamber Topics (TACT), in 1970, and in the same year it held its first Hsieh Nien Fan annual banquet to thank government officials for their cooperation (the keynote speakers over the years have been Taiwan cabinet ministers, premiers, and – in recent years – the President of the Republic of China). The Christmas Parties that AmCham staged during the same period have evolved into the American Ball now held every fall. Taiwan’s emergence starting in the 1980s as a major semiconductor manufacturing site had its origins in a pilot project at the Industrial Technology Research Institute using technology supplied by RCA. The highly successful chip foundries, Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. (UMC) were later spun off from ITRI, and their customers included many of the leading U.S. electronics and computer brands.
During the 1980s and 1990s, as Taiwan flourished as a major trading economy and one of the dynamic “Asian Tigers,” AmCham Taipei lobbied strenuously in support of Taiwan’s efforts to join the GATT and then its successor body, the World Trade Organization (WTO). AmCham urged the Taiwan government to liberalize its trade policies even before entering the world trade body. When WTO accession finally occurred in 2002, the transition was eased because Taiwan had already adopted tariff reductions, removed many non-tariff barriers, and taken other market-opening measures. Since joining the WTO, Taiwan has continued to prosper, and multinational companies have found many opportunities in this market – not only in manufacturing, but increasingly in financial services and other aspects of the service sector. With the signing of ECFA and the government’s relentless efforts to attract foreign investment, the future holds great promise for Taiwan. AmCham stands ready to help promote Taiwan’s development as a center for trade and investment in the region. It will continue to be a key partner as the government takes on the many challenges of talent recruitment and regulatory reform. On the lobbying side, AmCham began con-
ducting its Washington Doorknocks in 1994 and issued its first Taiwan White Paper in 1996. During the 1990s, the Chamber was active in promoting Taiwan’s application for membership in the General Agreement on Tariffs and Trade and later GATT’s successor, the World Trade Organization (WTO). Taiwan finally acceded to the WTO in 2002. During the past decade, the LCD flat-panel display industry grew into another major pillar of the economy, and Corning from the United States invested more than US$2 billion to build plants in both the Southern and Central Science Parks to support the local industry with hightech glass substrates. Also in recent years, Citibank was among the leading multinational financial institutions that expanded heavily in the Taiwan market by acquiring a local bank and vastly enlarging its branch network. “This year has been a great opportunity to review our history and take pride in the many things AmCham has accomplished over the decades,” said Andrea Wu, the Chamber’s president. “But even more, it is an occasion to look ahead and rededicate ourselves to the tasks of creating an even better investment climate in Taiwan and forging an ever-stronger U.S.-Taiwan economic relationship.” ■ Edited by Dimitri Bruyas
SPECIAL SUPPLEMENT Photos: Courtesy of American Chamber of Commerce in Taipei
Chairman Bill Wiseman (left) greets visiting U.S. Assistant Secretary of Commerce Suresh Kumar.
Chairman Bill Wiseman presented the 2011 Taiwan White Paper to Minister Christina Liu of the Council for Economic Planning and Development in June.