2011Vol.41No.9 by AmCham Taipei

September 2011

Vo l u m e 4 1 N u m b e r 9

w w w. a m c h a m . c o m . t w

Looking Back on Six Decades AmCham Taipei's 60th Anniversary Special Edition

NT$150 COVER SPONSOR

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750 18

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CONTENTS

SEpTEmbEr 2011

vO lumE 41, NumbEr 9

一○○年九月號

Publisher

Andrea Wu

A Special Issue of Taiwan business TOpICS for AmCham Taipei’s 60th Anniversary

6 Foreword AmCHAm THrOuGH THE DECADES

發行人

吳王小珍

Editor-in-Chief

總編輯

Don Shapiro

沙蕩美術主任 /

Art Director/ Production Coordinator

後製統籌

Katia Chen

陳國梅

Staff Writer

採訪編輯

Jane Rickards

The first U.S. serviceman wounded in the Quemoy Crisis shelling after being flown back to Taipei.

李可珍

Manager, Publications Sales & Marketing 廣告行銷經理

Irene Tsao

曹玉佳

Translation

Zep Hu, Chen Yi-chun

翻譯

7 1950s: Achieving Stabilization

胡立宗/陳宜君

1950年代：追求穩定

14 1960s: Welcoming Foreign Investment American Chamber of Commerce in Taipei

129 MinSheng East Road, Section 3, 7F, Suite 706, Taipei 10596, Taiwan P.O. Box 17-277, Taipei, 10419 Taiwan Tel: 2718-8226 Fax: 2718-8182 e-mail: amcham@amcham.com.tw website: http://www.amcham.com.tw

1960年代：歡迎外資

20 1970s: building the Infrastructure

1970年代：基礎建設

名稱：台北市美國商會工商雜誌發行所：台北市美國商會臺北市10596民生東路三段129號七樓706室電話：2718-8226 傳真：2718-8182 TOPICS is a publication of the American Chamber of Commerce in Taipei, ROC. Contents are independent of and do not necessarily reflect the views of the Officers, Board of Governors, Supervisors or members. © Copyright 2011 by the American Chamber of Commerce in Taipei, ROC. All rights reserved. Permission to reprint original material must be requested in writing from AmCham. Production done in-house, Printing by Farn Mei Printing Co., Ltd. 登記字號：台誌第一零九六九號印刷所：帆美印刷股份有限公司經銷商：台灣英文雜誌社台北市105敦化北路222巷19之1號1樓發行日期：中華民國一○○年九月中華郵政北台字第5000號執照登記為雜誌交寄 ISSN 1818-1961

OFFICERS: Chairman/ Bill Wiseman Vice Chairmen/ William E. Bryson / David Pacey Treasurer: Carl Wegner Secretary/ William J. Farrell 2010-2011 Governors: Michael Chu, Alan Eusden, Douglas R. Klein, Cindy Shueh Lin, David Pacey, Stephen Y. Tan, Lee Wood. 2011-2012 Governors: William E. Bryson, Alexander Duncan, Christopher Fay, William Farrell, Steven Lee, Neal Stovicek, Carl Wegner, Bill Wiseman. 2011 Supervisors: George Chao, Varaporn Dhamcharee, Jenny Lin, Ashvin Subramanyam, Ken Wu. COMMITTEES: Agro-Chemical/ Melody Wang; Asset Management/ Christine Jih, Winnie Yu; Banking/ Victor Kuan; Capital Markets/ William Bryson, Jane Hwang, Jimin Kao; Chemical Manufacturers/ David Price; CSR/ Lume Liao, Fupei Wang; Education & Training/ Robert Lin, William Zyzo; Greater China Business/ Helen Chou, Stephen Tan; Human Resources/ Richard Lin, Seraphim Mar, Ashvin Subramanyam; Infrastructure/ L.C. Chen, Paul Lee; Insurance/ Mark OÆDell, Dan Ting, Lee Wood; Intellectual Property & Licensing/ Jason Chen, Peter Dernbach, Jeffrey Harris, Scott Meikle; Manufacturing/ George Chao, Albert Li; Marketing & Distribution/ Christopher Fay, Wei Hsiang, Gordon Stewart; Medical Devices/ Nelson Hsu, Daniel Yu; Pharmaceutical/ David Lin, Edgard Olaizola, Jun Hong Park; Real Estate/ Peter Crowhurst, Kristy Hwang; Retail/ Prudence Jang, Douglas Klein; Sustainable Development/ Eng Leong Goh, Kenny Jeng; Tax/ Cheli Liaw, Jenny Lin, Josephine Peng; Technology/ Revital Golan, R.C. Liang, Jeanne Wang, Deborah Yen; Telecommunications & Media/ Thomas Ee, Jason Wang, Ken Wu; Transportation/ Michael Chu; Travel & Tourism/ Pauline Leung, David Pacey.

28 Helping Forge the Taiwan relations Act

促成台灣關係法

32 1979: maintaining a vibrant Expat Community

1979年：協助維持活躍的在台美僑社群

37 1980s: Gearing up for High Tech

1980年代：迎向高科技

42 1990s: Opening the market

1990年代：開放市場

47 2000s: Coming to Grips with China

2000年至今: 聚焦兩岸關係

W ri ters : D o n s h api ro an D J an e r i c k arD s , W i th aD D i ti o n al c o n tri b u ti o n fro m r i c k mo n Day

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s ep tembe r 2011 • Volume 41 n umbe r 9

COvEr SpONSOr

54 Economic Gains matched by political progress 57 The Taiwan White paper as Advocacy Instrument

台灣白皮書 – 彙整議題，提出建言

62 making AmCham’s voice Heard in Washington

向華府發聲

66 Taiwan business TOpICS : AmCham’s Communication Channel 68 An Eventful Six Decades of programs

Air products Delivers the Difference Air Products, a leading global supplier of atmospheric gases, process and specialty gases, performance materials, equipment and services, serves customers in industrial, energy, technology and healthcare markets worldwide. Recognized for its innovative culture, operational excellence and commitment to safety and the environment, the company brings solutions to some of the world’s most pressing energy, environmental and emerging market needs. Air Products’ people make the Air Products difference. They build lasting relationships with the customers and communities they serve based on their understanding, integrity and passion as well as in-depth applications expertise. It is the Air Products difference that enables the company to grow and build a better future together with its customers.

AmCHAm EvENTS

In Taiwan, Air Products has been operating through its subsidiary, Air Products San Fu, since 1987. Air Products San Fu, named one of “The Top 300 Companies” in Taiwan by The Commonwealth magazine, was the first gas company in Taiwan to be awarded ISO9002 , ISO14000 and RCMS (Responsible Care Management System) certifications, a testament to the company’s commitment to high environmental, health and safety standards. The company has over 750 employees at 18 locations capable of serving all regions of Taiwan. Some milestones in Air Products’ 70 years of growth: • Founded in Detroit, Michigan, USA in 1940 • Listed on New York Stock Exchange in 1962 • First Fortune 500 listing in 1978 • Strategic global expansion in Taiwan, China, Korea, Japan, Malaysia, Hong Kong, Thailand, and Mexico in 1980s • Leading position in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives in 2000s

70 AmCham Taipei marks “60 Years of partnership”

For more information, visit www.airproducts.com.

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foreword 前言 60 Years of Economic Development Partnership

夥伴關係一甲子

n Taiwan, the span of 60 years carries special significance – the completion of one large cycle on the Chinese calendar, consisting of the 12 animal years repeated through the five elements of metal, water, wood, fire, and earth. This year, the American Chamber of Commerce in Taipei is commemorating its founding in 1951, representing the culmination of our first 60-year cycle and the start of another. Looking back over the decades at the impressive economic, social, and political achievements of the Republic of China in Taiwan, AmCham and its member companies are proud to have been a major contributor to that development. At the time that the heads of five U.S. companies in Taipei joined together to form AmCham, just two years after the Nationalist regime was forced to withdraw from the China mainland, it was not at all clear that Taiwan would be able to avoid plunging into instability – let alone build itself into the technology powerhouse and dynamic trading economy it has since become. That success was brought about by the confluence of many factors, including the security umbrella and extensive economic aid program provided by the United States, wise policies adopted by the Taiwan government (including land reform and investments in education, infrastructure, and research institutions), the industrious nature of the labor force, and the presence of talented, ambitious entrepreneurs. But undeniably, one of the key factors was also the investment in Taiwan by multinational companies, whose operations brought access to overseas markets, management know-how,

technological expertise, and opportunities for training. A prime example is the role of U.S. companies in the 1960s and 1970s in laying the groundwork for Taiwan’s later attainments in the consumer electronics, computer, semiconductor, and flat panel display industries. Entry into the market by component-maker General Instrument in 1964 was soon followed by the establishment of plants by such leading black-and-white TV manufacturers of the time as RCA, Admiral, Zenith, and Philco-Ford. Many of the local managers and engineers they trained then went on to bring their experience and expertise to the top management of domestic electronics companies, often by starting their own businesses. In the financial services field, as another example, Citibank became the training ground for a whole generation of local banking executives. AmCham further nurtured Taiwan’s economic development through its steady provision of advice and encouragement to the authorities – sometimes formally as with the Taiwan White Paper, sometimes informally in friendly conversation – on how to make the business climate even more attractive. We are grateful to have operated in a society where those recommendations were welcomed and appreciated, and to have had the chance over the years to interact with a number of outstanding, even visionary, Taiwan government leaders. As AmCham marks this anniversary with a sense of achievement in reviewing the accomplishments of the past, it also rededicates itself to its mission of enhancing Taiwan’s business environment in expectation of continued progress in the future.

對的排列組合重頭開始，又如十二生肖搭配金、木、

台灣人而言，60年具有特別意義，代表天干、地支

識、技術專業與教育訓練。以科技產業為例，如果沒有美

水、火、土五行依序循環，稱為「一甲子」。

難躍居消費性電子產品、電腦、半導體、平面顯示器的產

商在1960與1970年代打下的良好基礎，台灣後來大概很

台北市美國商會今年已經60歲了。自1951年創立以

業龍頭。零件製造商通用器材1964年率先進駐台灣，黑白

來，商會經歷了一甲子的漫長歲月，正將邁入第二個甲

電視領導品牌美國無線電公司（RCA）、將軍、增你智、

子。回顧過去，中華民國在台灣經歷了令人動容的經濟、

飛歌福特不久也跟進設廠。美商訓練的主管與工程師其後

社會與政治轉變，而商會與其會員都很驕傲曾經做出重大

陸續「帶槍投靠」台灣電子廠商，而不少人也選擇自立門

貢獻。

戶。再看看金融服務業，第一代的國內銀行主管，幾乎個

五家美國企業的負責人籌組商會之際，國民政府才剛自

個都是花旗銀行的「退除役官兵」。

大陸撤退滿兩年；當時，沒有人能夠百分之百確定台灣能

商會的存在更進一步地強化了台灣的經濟發展，因為

否長治久安，更不可能有人能夠預見，台灣有一天能夠成

偶爾透過出版《台灣白皮書》的公開發表、有時透過不拘

為國際性的科技重鎮與經貿樞紐。台灣的成功來自於諸多

形式的善意溝通，商會在過去一甲子不斷提供建言、協助

要素的交互影響，包括美國提供的安全保障與經濟援助，

台灣改善經營環境。商會非常高興身處於一個歡迎且欣賞

台灣政府採取的明智決策（如土地改革、國民教育、基礎

良善建議的社會，更慶幸過去數十年間能有機會與許多傑

建設與研發獎勵），台灣人的勤奮天性，以及聰明積極的

出、甚至是眼光遠大的政府官員密切互動。

企業領袖。但不可忽略的另一個要素是，跨國企業長期的在地經營，不僅使台灣邁向國際市場，還引進更為先進的管理知 6

商會過去的成就，讓我們能以自豪的心情慶祝生日；放眼未來，商會仍將致力改善台灣的經營環境，期許台灣更上層樓。

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1950's: Achieving Stabilization BY DON SHAPIRO

he vigorous economic development over the past six decades that has brought Taiwan to today’s level of prosperity is easily taken for granted. But from the vantage point of 1951, no one was prescient enough to foresee the economic success the island would later enjoy. On the contrary, Taiwan’s prospects at that time seemed entirely uncertain. Only six years had passed since the Allied victory in the Pacific brought an end to the half-century Japanese colonial rule over Taiwan. Damage from U.S. air force bombing

was still being repaired. As recently as 1947, the February 28 Incident triggered severe communal strife between native Taiwanese and mainlanders; in its aftermath, many thousands of Taiwanese were killed, including much of the intellectual elite. Social cohesion was further strained in 1949 when the Communist victory on the mainland forced the Nationalist government, along with 1.5 million troops and civilians, to withdraw to Taiwan. Whether Taiwan itself could keep from falling to the Communists seemed in doubt until the outbreak of the Korean War in 1950, when Pres-

ident Truman ordered the Seventh Fleet into the Taiwan Strait. Although U.S. intervention brought a greater sense of security to the island, the population was still extremely poor (per capita income was only about US$200 a year), the economy was beset by runaway inflation and a shortage of capital, and the government was bereft of foreign exchange. Of Taiwan’s limited exports, most were agricultural goods. A Bank of Taiwan advertisement from the period stressed the island’s ability to produce sugar, rice, tea, citronella oil, pineapple, and camphor, as well as

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1950s: Achieving Stabilization

hat bodies, straw mats, and bamboo. That was the challenging atmosphere in 1951 when the heads of the Taipei offices of three U.S. trading companies – Robert B. Scanland of William Hunt & Co., Loris Craig of the Taiwan Trading Co., and Frank Smolkin of Pacific Commerce Co. – got together to discuss the difficulties they were facing. Existing U.S. regulations prohibited private companies from handling much of the equipment, raw materials, and commodities they hoped to import into Taiwan, reserving those transactions for government-to-government sales through

the General Services Administration (GSA) in Washington. They hit on the idea of establishing an American Chamber of Commerce to give them more leverage in lobbying Washington for a change in policy. Scanland was chosen as the first president (the office now called chairman), and before submitting an application to the Taipei city government to establish the organization, they recruited two more members – the oil companies Caltex and Standard Vacuum (the precursor of both Exxon and Mobil). Approval of the application came through on September 14. In a 1976 article in TOPICS on the occasion of AmCham’s 25th anniversary, Scanland recalled that as soon as the registration was completed “we printed some stationery and started writing letters to everyone we could think of in Washington,” with copies to appropriate Taiwan officials. “I am happy to say that our move was completely successful,” he continued, and

Taiwan’s procurement was opened to the U.S. private sector. AmCham’s first advocacy effort had achieved quick results. Although the business environment of 1951 was hardly promising, Taiwan possessed some significant advantages. One was the extensive infrastructure left by the Japanese colonial administrators, who had built railroads, ports, irrigation systems, power plants, schools up to the university level, and hospitals, as well as light industries such as sugar mills. Economists also credited the Japanese with leaving a legacy of hard work, discipline, and social order, as well as institutions such as farmers’ associations and credit unions that were conducive to economic development. Another advantage was the talented personnel, including entrepreneurs and government technocrats, among those who had come over with Chiang Kai-shek. And it gradually became apparent that the local population included a large number of smart, ambitious people with a knack for doing business if given the proper conditions.

Weighing a parcel of grain donated under the U.S. Economic Aid program. photo : gio

1950年代：追求穩定（摘要）台灣過去60年的經濟發展往往被視為理所當然。但回顧1951年的局勢，沒有任何人能料到，台灣能有如此繁榮的一天。當時看來，台灣的前途充滿變數。日本殖民統治結束剛滿六年，二次大戰美軍轟炸的傷害尚未復原；族群對立的228事件才過四年，而國民政府敗退台灣才兩年。直到韓戰1950年爆發，美國總統杜魯門下令第七艦隊協防台灣，台灣才算脫離風雨飄搖的局勢。雖然美國介入帶來安全保障，但台灣人民仍然貧困，經濟仍然受制於高度通膨與資本不足。台灣有限的外銷產品，幾乎全部都是未經太多加工的農產品。值此艱困環境，三家美國企業的負責人在1951年聚會討論所遭遇的難關。他們想要進口到台灣的商品，多數都遭美國禁止民間販運。他們因此決定成立台灣的美國商會，以有效說服華府改變政策。商會發起人印妥正式信箋，開始寫信給華府官員。倡議行動非常成功，美商終於可以將特定商品以私人

公司名義引進台灣。雖然1951年的經營環境稱不上優良，但台灣已經具備一些明顯優勢。其一是更為充份的基礎建設、勤奮自律的傳統，以及日治時期建立的社會制度。其二是隨著蔣介石政權轉往台灣的優秀企業家與技術官僚。而且，台籍人士不乏聰明、積極、又懂得作生意的人。經濟發展的另一個關鍵是美國政府決定提供台灣經濟援助。1951年至1965年間，美國提供價值15億美元的商品、機具、獎助與貸款，而台灣確實也物盡其用。台灣的經濟決策官員與美國國際發展署的代表雖然偶爾意見相左，但兩方都同意，台灣需要穩定經濟環境、鼓勵進口替代產業，以降低匯率壓力、增進農業產能。 1950年代最重要的成果之一是土地改革，使農業產能立即大幅提高。以國營企業股份補償地主損失，也使管理與創新人才由農業移往工業。顯例之一就是辜

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1951 April

First meeting of the not-yetregistered American Chamber of Commerce in Taipei (then Taipei American Chamber).

May

U.S. Major General William C. Chase arrives in Taipei as first chief of the Military Assistance Advisory Group in Taiwan.

July

One month after the outbreak of the Korean War, U.S. General Douglas MacArthur meets with President Chiang Kai-shek in Taiwan to discuss security issues.

September The Land Reform program carried out in the 1950s significantly increased agricultural production and rural income.

American Chamber of Commerce in Taipei registered with the Taipei City Government.

photo : gio

Providing U.S. economic aid A further major boost to the economy came from the U.S. government’s decision to include Taiwan within its Economic Aid program. Between 1951 and 1965, when Taiwan “graduated” from the program, the United States provided commodities, machinery, grants, and loans worth US$1.5 billion (an estimated US$10 billion in today’s money). The single largest project funded by U.S. AID was the Shih-

men Dam and Reservoir in Taoyuan County, completed in 1964 after 10 years of construction at a cost of nearly US$70 million. Unlike some other recipient countries, Taiwan used the funds efficiently and effectively. Commissioned to do a study of the program that led to a 1966 monograph entitled U.S. Aid to Taiwan, the dean of the UCLA Graduate School of Business Administration, Neal H. Jacoby, concluded that “the U.S. aid program for Taiwan will long stand as

Robert Scanland, first AmCham chairman, in a photo taken in the 1970s.

Looking Back On Six Decades - Amcham Taipei's 60th Anniversary

1950s: Achieving Stabilization

1952 April 振甫成功創辦台灣水泥。這段期間負責農業政策的是台、美官方聯合組成的「中國農村復興聯合委員會」。其他重要組織如經濟安定委員會與美援運用委員會，所受官僚傳統限制較少。基於美援的協助，上述組織得以提供較高薪水以吸引專才，包括後來被稱為台灣經濟推手的李國鼎。當時的制度是「計畫（市場）經濟」。政府以四年期的經濟建設計畫為經濟發展提供基本架構，但不會干預民間企業的產銷模式。不過，公營企業仍佔國內生產毛額（GDP）的絕大部分。經濟決策官員所面臨的核心挑戰在於，推動稅制改革以鼓勵儲蓄，促進市場自由化，建立一致與合理的外匯交易制度以及推動進口替代。進口替代的項目之一是聚氯乙烯（PVC），美國援助計畫原想找台灣業者，以67萬美元的貸款建廠。但許多企業都因為風險太高一口回絕，最後只有王永慶願意，其成果就是後來的台塑集團。其他頂尖的台灣企業也在此一時期誕生或重生，包括大同、遠東、新光與裕隆等集團。不過，國際投資仍然很少。為吸引外資，李國鼎力推「獎勵投資條例」，規劃五年期租稅減免並簡化投資申請程序。台灣經濟1960年代的快速成長，也印證政府決策的明智。

Treaty of Peace between Republic of China and Japan signed in Taipei.

1953 January

Legislative Yuan passes Land-to-theTiller Act.

September

Yue Loong (now Yulon) established as Taiwan’s first automobile company (first vehicle, a Jeep made under license from Willys, was produced in 1956).

1954 march

Formosa Plastics Corp. established with loan from U.S. economic aid program. National Assembly re-elects Chiang Kai-shek as president for a second six-year term.

dec.

U.S.-Taiwan Mutual Defense Treaty signed in Washington.

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1950s: Achieving Stabilization

one of the signal successes of international economic cooperation in the postwar era.” It became the responsibility of Taiwan’s economic planners, working closely with members of the U.S. AID Mission in Taipei, to come up with the right policy prescriptions to move the economy into high gear. Their interaction was sometimes contentious, especially when the American advisers pressed for a reduction in Taiwan’s military budget, which they regarded as a drag on the economy. But in general the two sides agreed on the direction Taiwan needed to take: stabilizing the economy, promoting import-substitution industries to lessen the foreign-exchange burden, and boosting the productivity of the agricultural sector. As of the late 1950s, agriculture accounted for a larger percentage of Taiwan’s GNP than industry – 31% to 24%. One of the most important achievements of the 1950s was the Land Reform program with the objective of providing “land to the tillers.” Previously farmers had to pay such high rents (in the form of a proportion of the harvest) to absentee landlords that they could only scratch out a subsistence living and had little incentive to try to increase productivity. The three-phase Land Reform first lowered the rents, then required land owners to sell the portion of their holdings exceeding three hectares to the government. After dividing the land into smaller parcels, the government sold the lots to the former tenants on 10-year installment terms. Land reform was something the Kuomintang was never able to carry out on the mainland, where it was politically indebted to the landlord class. But in Taiwan such reform would not only have economic benefits, but would also weaken an element of society suspected of having been too close to their previous Japanese colonial masters. The program had an immediate impact in boosting agricultural output. It also had another salutary effect. Part of the compensation the

President Eisenhower, during his 1960 visit to Taiwan, chats with Generalissimo Chiang Kai-shek while riding in a motorcade. photo : cna

landlords received for the land they relinquished was in shares in government-owned companies. That fostered development by transferring some managerial talent and creative energy from the farming to the industrial sector. A prime example was the success of C.F. Koo (Koo Chen-fu),, from a long-established landlord family in Changhua County, in building up the Taiwan Cement Corp. and eventually numerous affiliated enterprises. Overseeing agricultural policy during that period was a unique organization known as the Joint Commission on Rural Reconstruction (JCRR) that had been established in 1948 on the China mainland. Outside the regular government hierarchy, it was a combined undertaking of the Taiwan and U.S. governments, with English as its working language, and continued to exist until the break in diplomatic relations in 1979 when its functions were taken over by the Council of Agriculture. Other important organizations were the Economic Stabilization Board and the Council for U.S. Aid, which later became the Council for International Economic Aid and Development ( C I E C D ) a n d e v e n t u a l l y t o d a y ’s Council for Economic Planning and Development (CEPD). These agencies were also outside the government bureaucracy and, with support from

the U.S. AID Program, could offer higher pay to attract some outstanding talent, most prominently the future premier and president Yen Chia-kan (C.K. Yen); the most influential economic policymaker of that era, K.Y. Yin; and Yin’s protégé, Li Kwoh-ting (K.T. Li), who was later regarded as one of the chief architects of Taiwan’s economic development. K.Y. Yin championed a policy of pursuing a “planned market economy.” The government promulgated four-year plans to provide an overall strategy and framework for development, but refrained from giving orders to private companies as to what and how much to produce. Still, state-owned enterprises – both those transferred from the mainland and others taken over from the Japanese – accounted for such a large proportion of GDP that government control over the economy was considerable.

Tax and foreign-exchange Some of the crucial issues that the economic policymakers had to tackle were implementing tax reform to encourage savings, gradually reducing government intervention in the economy and promoting the free market, creating a uniform and rational system for foreign currency exchange (the rate was fixed

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at US$1:NT$40), and undertaking a policy of import substitution to reduce the foreign exchange burden. An American consulting firm, the J.G. White Engineering Corp., helped in identifying feasible industrial projects. One of the items chosen for encouragement of domestic production was PVC, and the U.S. Aid Program began to look for a suitable businessman willing to take a US$670,000 loan to establish a plant. After being rejected by numerous entrepreneurs who regarded the project as too risky, it finally turned to a successful timber trader named Wang Yung-ching (Y.C. Wang) who knew nothing about plastics but seized the opportunity. Formosa Plastics began operations in 1954, but nearly went under due to weak local demand. Wang’s answer was to create Nan Ya Plastics to become his own biggest customer, turning the PVC resin into finished and semi-finished products. Wang later became one of the world’s wealthiest individuals, and his Formosa Plastics Group one of Taiwan’s biggest conglomerates. Other leading Taiwan business groups also had their start, or restart, during that period. Although the Tatung Co. could trace its origins as far back as 1918 when its precursor was engaged in the construction business, it became a household name in the 1950s with the popularity of electric rice cookers and electric fans (a decade later, Tatung refrigerators were such a status symbol that families placed them in the living room rather than the kitchen). The forerunner to Far Eastern Textiles was established in Shanghai in the 1940s, but founder Hsu Yuziang moved the operation to Taiwan with the government in 1949. From cotton spinning, Hsu gradually branched out into such fields as synthetic fibers, department stores, cement, and shipping. The Far Eastern Group now is also involved in the hotel industry, telecommunications, and banking, and has funded a hospital and a university.

The Shinkong empire founded by Wu Ho-su, and now divided among his sons, also centered around textiles to start with, but later diversified into city gas, insurance and other financial institutions, department stores, and other ventures. Yue Loong Motor (now called Yulon) was begun in 1953 by T.L. Yen, a German-trained engineer who had run factories on the mainland and dreamed of becoming “the Henry Ford of China.” The company rolled out its first vehicle in 1956, a Jeep made under license from Willys Motors of Cleveland, Ohio, and the next year added “Datsun” sedans with technology from Nissan of Japan. Foreign investment was still a rarity, however (as of 1959, only two cases had been approved). Within the still tiny AmCham membership, one of the biggest contingents consisted of eight companies serving as distributors for U.S. motion picture studios. The Council for U.S. Aid created an Industrial Development and Investment Center, with K.T. Li as its chairman, and it conducted a survey to determine why Taiwan lagged so far behind Hong Kong in attracting foreign and Overseas Chinese investment. According to the book K.T. Li and the Taiwan Experience by Lutao Sophia Kang Wang, the study identified two main problems: the high taxation rate and the complicated, time-consuming application procedures. Li proposed enactment of a “Statute for Encouragement of Investment” that would offer investors a five-year tax holiday on business income and other tax breaks, as well as simplify the application process. The tax measures ran into strong opposition in some quarters in government, since Taiwan still had a huge budget deficit, but Li managed to convince his superiors that the Statute would help Taiwan enlarge the whole economic pie. The rapid pace of growth that followed in the 1960s confirmed the wisdom of the policy. I f Ta i w a n w a s s o m e t h i n g o f an economic backwater in the 1950s, it was also a quite pleasant

1955 January

U.S. House of Representatives approves resolution authorizing President Eisenhower to employ U.S. armed forces to defend Taiwan.

1956 June

Taipei American School (founded in 1949) graduates first class of 14 seniors.

1958 August October

China fires on Kinmen Islands (Quemoy), beginning the Battle of the Taiwan Strait. President Chiang and U.S. Secretary of State John Foster Dulles issue joint communiqué stating that the islands of Kinmen and Matsu are “closely related” to the defense of Taiwan.

1959 August

Nike-Hercules ground-to-air guided missiles arrive from the U.S. under a military aid program.

1960 May

National Assembly re-elects Chiang Kai-shek as president for a third term. Central Cross-Island Highway opened to traffic.

June

U.S. President Eisenhower arrives in Taipei for state visit, signs joint communiqué with President Chiang reaffirming commitments under Mutual Defense Treaty.

Statistical Snapshot

Population Ecnomic growth GDP Per capita GNP Unemployment Exports Imports Forex reserves Private cars Univ. students

1955 9 million 7.80% US$2 bn US$220 3.81% US$123 mn US$201 mn 0 4,000 18,000

1960 10.8 million 6.90% US$1.75 bn US$164 3.98% US$164 mn US$297 mn 0 6,400 35,000

sOURCES: CEPD

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Looking Back On Six Decades - Amcham Taipei's 60th Anniversary

1950s: Achieving Stabilization

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1950s: Achieving Stabilization

place to live. Hope Philips, a longtime Chamber member who came to Taiwan in 1955 and later became principal of the Taipei American School, described the Taipei of that era as “bucolic” in the special edition TOPICS published in 2001 for AmCham’s Golden Anniversary. “You could stand on any street in Taipei and look in any direction and see mountains,” she recalled. “It was so lovely.” The city area was much smaller than today, with much of what is now central Taipei still covered by rice paddy, and with no high-rises other than the Presidential Office Building. So few motor vehicles were on the road that only one traffic signal was needed, and the usual means of getting around town was by three-wheeled pedicab. IBM used oxcart to deliver its mainframe computers to customers, since they were too heavy for most local trucks to bear. The sole airline regularly connecting Taipei with the outside world was Civil Air Transport (CAT), originally co-founded by General Claire

Chennault of “Flying Tigers” fame. Most international travelers would stay at the Grand Hotel – not the 12-story wing that is most visible today (that wasn’t built until the early 1970s) but the low-lying pavilions in the back. Toward the end of the decade, tensions rose for a period during the “Quemoy Crisis” of 1958 when Communist Chinese artillery shelled the offshore island of Kinmen (Quemoy) for 44 straight days. U.S. forces helped resupply Taiwan’s troops to withstand the onslaught, and the crisis provided an occasion for American officials to reconfirm U.S. commitment to Taiwan’s security. In his last year in office, President Dwight D. Eisenhower became the only serving U.S. president to visit Taiwan. “Ike” conferred with Generalissimo Chiang Kaishek and members of his government on regional security affairs. The decade ended with peace r e s t o r e d , a n d Ta i w a n r e a d y t o accelerate the pace of economic development.

AmCham's first "office" was a desk in the Friends of China Club.

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1960s: Welcoming Foreign Investment BY DON SHAPIRO

he Sixties saw Taiwan reach the “take-off” stage of economic development characterized by rapid growth rates. After 1962, most years in that decade recorded GDP expansion of more than 8%, frequently with figures in double digits. By now, the Taiwan populace was feeling more confident and secure. Domestic consumption was rising, but the main engine for the boom was exports – though the volume seems tiny in retrospect. When Taiwan’s exports for 1969 passed the US$1 billion mark, it was celebrated as a major achievement. Today, it takes only a little over a day to ship out a billion dollars worth of goods. Foreign investment also began to pick up following the adoption of relevant incentives through the Statute for Encouragement of Investment enacted in 1960. To help identify which industries were the most promising for foreign participation, the Taiwan government contracted with the Stanford Research Institute in 1961 to carry out a six-month study. SRI’s seven-member team of economists and engineers came up with a list of 14 recommended sec-

Moses Shapiro (left) of General Instrument Corp. receives an award from Minister of Economic Affairs K.T. Li in 1968 in appreciation of GIC's contribution to Taiwan's electronic industry development. photo : cna

tors, and the Taiwan side then whittled it down further to four: petrochemicals, plastics and man-made fibers, electronics, and watches and clocks. The first major investment case, a US$22.5-million project for a urea fertilizer plant, was announced in mid1962. Two U.S. companies, Socony Mobil Oil and Allied Chemical, each

took a 35% stake in the venture, with the rest coming from the state-owned o i l c o m p a n y, C h i n e s e P e t r o l e u m . Unlike the fertilizer project, which targeted domestic demand, most of the later investment cases were manufacturing operations aimed primarily at the export market. Perhaps the single most consequential

1960年代：歡迎外資（摘要） 1960年代是台灣經濟快速成長的起飛期。1962年之後，多數年度的國內生產毛額（G D P）成長率都超過 8%，常常還能突破10%。在這十年間，台灣人民已更具信心與安全感。國內消費增加，但經濟主要動能來自出口。獎勵投資條例1960 年實施後，國際投資也開始增加。為了找出最能吸引國際投資的產業項目，台灣1961年委託史丹佛研究所進行為期半年的調查。報告結論鎖定四大領域：石化、塑膠與人造纖維、電子、鐘錶。第一宗大額投資是兩家美商1962年中合資2,250萬美元新建尿素肥料廠。但台灣歷史上最具影響力的投資個案，或許該說是通用器材1964年決定在台設立子公

司，專攻電子元件的策略最終引導台灣邁向高科技產業。其後，多家美商陸續跟進，包括美國無線電公司（RCA）、增你智（Zenith）、本狄克斯（Bendix）、將軍（Admiral）與台灣飛歌（Philco-Ford）。美商也陸續投入其他產業，包括乳品的福樂（Foremost），製藥的輝瑞（Pfizer）、必治妥施貴寶（Bristol Myers）、禮來（Eli Lilly）等，玩具的美泰兒（Mattel），化工的3M、陶氏化學（Dow）與杜邦（DuPont），以及電信的AT&T。花旗銀行（Citibank） 1965年成為第一家開設台灣分行的外商銀行，接著是美國銀行（BoA）、運通銀行（AEB）。美商在1960年代引進許多關鍵生產技術，也投入

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investment case in Taiwan’s history was the decision in 1964 by General Instrument to set up a subsidiary on the island to make various electronic components. That pioneering venture laid the groundwork for Taiwan’s entry into consumer electronics, which eventually led to production of computers, semiconductors, and flat panel displays. Establishment of the General Instrument Taiwan plant in an area surrounded by rice fields in Sindian (the neighborhood is now thoroughly urbanized) prompted other major U.S. electronics companies to follow suit. The story of how General Instrument came to Taiwan is related in K.T. Li and the Taiwan Experience, a 2006 book by Lutao Sophis Kang Wang. In May 1964, Moses Shapiro [no relation to this writer], the company’s chairman and CEO, came to see Li, who was then Minister of Economic Affairs. He told Li that in advance of the Olympic Games to be held in Tokyo that October, Japanese manufacturers had been ramping up their production to such an extent that “after the Games, Japanese consumer electronics would be dumped in the United States at a very low price.” To stay competitive, Shapiro to invest in Taiwan so as to reduce production costs.” But he had a condition. For his plan to work, he needed speedy approval of the investment application and permission to import key parts and materials. Li readily promised to mobilize the various

government agencies to expedite the process, as General Instrument was just the kind of company that Taiwan wished to attract. The application was submitted in July, and Li saw to it that approval came through the next month. Plant construction was completed by the end of October, ahead of schedule, and operations began in November. Shapiro was delighted, and talked up the virtues of Taiwan to his customers among the finished-product manufacturers. Over the next several years, such well-known brands at the time as RCA, Zenith, Bendix, Admiral, and Philco-Ford put up factories to assemble black-and-white TV sets and other products for shipment back to the U.S. market. They hired engineers and technicians, but most of all they needed lots of nimble fingers on the production line. That dexterity was supplied by countless girls from the countryside in their teens and twenties who lived in factory dormitories, often working days and studying in the evening. General Instrument grew into one of Taiwan’s biggest employers, and as production costs rose, it upgraded to making increasingly sophisticated, higher-value components. By 1980, it had 10,000 employees and was generating one-quarter of the parent company’s global revenue. The company is still represented in Taiwan, and in AmCham, through a successor enterprise, Vishay Semiconductor.

1961 May

1962 October

Taiwan’s first TV station, Taiwan Television (TTV), begins broadcasting islandwide.

1963 September

Council for International Economic Cooperation and Development (CIECD) inaugurated to replace the Council for U.S. Aid.

1964 General Instrument sets up plant in Taiwan, paving the way for numerous other U.S. electronics companies.

june

NT$3.2 billion Shihmen Reservoir is dedicated.

1965

First National City Bank (now Citibank) opens its first Taiwan branch in 1965. photo : cna

February June

大量時間精力訓練員工，甚至是經銷商或下游廠商，以提高品質與可靠度。技術轉移的例子中，最值得一提的是製造縫紉機的勝家（Singer），與生產聚乙烯塑膠（PE）的臺灣聚合化學品。此一時期的重要變革是設立加工出口區，最早成立的是1966年高雄加工出口區，接著是楠梓與台中加工出口區。加工出口區吸引投資、增加工作機會，刺激外銷出口，一度達台灣出口總值的8%。台北市美國商會也是在此時轉變為更積極與專業的組織：1969年創辦TOPICS雜誌，1970年除首度舉行謝年飯，也搬進更為寬敞的辦公室，並設置執行長一職。在那個年代，雖然企業主管常常抱怨官僚體系行政作業繁冗，但經營績效不錯，總公司對台灣的營運狀況大都感到滿意。

U.S. Vice President and Mrs. Lyndon B. Johnson visit Taiwan.

First National City Bank (now Citibank) opens first foreign bank branch in Taiwan. Taiwan “graduates” from U.S. Economic Aid program after receiving over US$1.4 billion in assistance.

1966 january march july

U.S. Vice President Hubert H. Humphrey arrives for talks with government leaders. National Assembly elects President Chiang Kai-shek to fourth six-year term. U.S. Secretary of State Dean Rusk arrives for discussions with government leaders.

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Looking Back On Six Decades - Amcham Taipei's 60th Anniversary

1960s: Welcoming Foreign Investment

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1960s: Welcoming Foreign Investment

Wide range of investment American companies in industries other than electronics were also starting to get active in Taiwan. Foremost Dairies originally came in to supply the U.S. military community, but found that Taiwanese consumers were gradually developing a taste for milk and ice cream. When the volume was high enough, it switched from selling milk reconstituted from powder to contracting with local farmers, boosting the domestic dairy industry. In pharmaceuticals, Pfizer, Cynamid (later acquired by American Home Products), Bristol Myers, Parke-Davis, and Eli Lilly were all early players in a market that had high demand for veterinary as well as human-health products. In line with Stanford Research Institute’s conclusion that watches would be a suitable industry, Timex established a sizeable operation.Taiwan was also home to the Barbie doll from 1967 to 1987, the years that Mattel Inc. ran a factory in Taishan, now best known as the location of a Freeway toll station. Also establishing themselves in Taiwan in the late Sixties were such prominent multinationals as 3M,

Dow Chemical, DuPont, and AT&T. First National City Bank (now Citibank) in 1965 became the first f o r e i g n b a n k t o o p e n a Ta i w a n branch, located on GuanQian Street in downtown Taipei in what was then the financial district. Bank of America opened a branch in the same year, and American Express Bank soon afterward. At a time when Taiwanese banks only made loans heavily secured against collateral, usually real estate, the foreign banks introduced the practice of lending based on cash flow and balance sheet analysis. Citibank also developed a reputation as the training ground for large numbers of executives who later served in other banks, both local and foreign, throughout the industry. An internal AmCham research report prepared in 1972 included a long list of production technologies that were unknown in Taiwan until introduced by American companies. A small sampling: color television sets (Admiral), double-sided printed circuit boards (Ampex), car radios (Bendix), b/w picture tubes (Clinton), high-precision plastic injection molding (Mattel), and integrated circuits (Texas Instruments). The report also emphasized the important role that foreign-invested firms played – through training of employees, vendors, and customers – in building up Taiwan’s manufacturing and managerial quality and reliability. It quoted a local elec-

tronics executive as saying: “In the Taiwan market, most of the suppliers tend to be careless about quality and delivery. But under pressure from our buyers, we have to be good. Our workers and engineers have improved greatly under that pressure. They have learned that everything must be perfect. If it isn’t perfect, it cannot be sent out. I think our standards now are close to those of American workers.” One of the most successful operations of the period was Singer Sewing Machine, which found a solid market for both industrial sewing machines for the garment industry and for home-use units at a time when many women bought fabric and patterns to stitch up garments to clothe their families. When Singer set up its plant in 1963, the existing local sewing machine manufacturers, fearful of the competition, complained to the government that the industry already faced excess capacity. But just a few years later, the Taiwan sewing machine manufacturers’ association issued a letter commending Singer for its contribution to enhancing both the size and quality level of the entire local industry. Before Singer’s arrival, there was no standardization of parts among the many factories supplying components to the sewing machine makers. Often parts had to be filed down by hand to make them fit. Singer provided the parts factories with blueprints and

Above, the TV assembly line at Philco-Ford, and right, a sewing operation using Singer sewing machines. photos: GIO

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1967 july

Taipei elevated to status of special municipality.

August

Compulsory education to be extended from six to nine years in 1968.

October

AmCham holds first formal breakfast meeting.

1968 August

Asia-Pacific Council of American Chambers (APCAC) founded, with AmCham Taipei as charter member.

1969 November

Milk production at Foremost, which helped build up the dairy industry in Taiwan.

AmCham begins publishing a bimonthly English magazine, Taipei American Chamber Topics (TACT). Central Cross-Island Highway opened to traffic.

photo : gio

insisted on precise specifications. It brought as many as 50 technicians to Taiwan each year to work with the vendors on improving quality. The Singer experience was one of two case studies that constituted the 1978 doctoral dissertation at Case Western Reserve University of a young economist named Schive Chi, now chairman of the Taiwan Stock Exchange Corp. “Taiwan Singer’s extensive and wide-ranging technical assistance advanced the technological standard of Taiwan’s entire sewing machine industry and thus contributed to its growth,” he wrote. Schive’s other example looked at technical assistance to customers rather than suppliers as in the Singer case. The subject was the USI Far East Corp., an investment of National Distillers and Chemical Corp. of the United States to make the plastic material polyethylene. When established in 1965 with equity of US$6 million, USI was one of the largest single instances of foreign direct investment in Taiwan up to that time. The company devoted substantial resources to providing technical assistance to customers in the packaging material industry and other sectors to help them raise quality and develop new products. It established a PE pro-

cessing laboratory equipped with a variety of molding machines and invited its customers to use the facility for trouble-shooting and product development. As the downstream business grew, so did USI’s. USI not only represented a case of technology transfer, but also of transfer of ownership from foreign to local hands, Schive noted. When raising funds for expansion, the company offered shares to the public, and by 1976 half the stock was domestically owned. Eventually National Distillers sold the remaining half on the local stock market, and USI became an entirely local operation. Other petrochemical companies of that era included China Gulf Plastics, a joint venture between Gulf Oil and local entrepreneur T.T. Chao to manufacture PVC, and Taita Chemical, another T.T. Chao joint venture, this time with Mobil Oil to make polystyrene resin.

Export processing zones Long before anyone in Taiwan had heard the term “science park,” the big thing on the island in the 1960s was the concept of an “export processing zone” or EPZ, another of K.T.

1970 January

AmCham holds first Hsieh Nien Fan banquet to thank government officials for their cooperation.

Statistical Snapshot

Population Ecnomic growth GDP Per capita GNP Unemployment Exports Imports Forex reserves Private cars Univ. students

1965 12.6 million 10.90% US$2.89 bn US$228 3.29% US$450 mn US$556 mn US$245 mn 9,000 85,000

1970 14.7 million 10.60% US$5.74 bn US$393 1.70% US$1.481 bn US$1.52 bn US$482 mn 29,000 203,000

sOURCES: CEPD

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Looking Back On Six Decades - Amcham Taipei's 60th Anniversary

1960s: Welcoming Foreign Investment

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1960s: Welcoming Foreign Investment

Li’s initiatives. Companies locating in the zone were required to produce entirely for export, but could enjoy duty-free import of machinery and raw materials, easy repatriation of capital, warehousing facilities, either rental of standard factory space or land to build their own facility, and reduced red tape through a centralized system for dealing with government agencies. The first such area, the Kaohsiung Export Processing Zone (KEPZ), was built on reclaimed land adjacent to Kaohsiung Harbor and opened in December 1966. In less than three years, it was fully occupied, with 164 factories in operation, and in 1971 it accounted for about 8% of the country’s entire export value. As a result of that success, additional EPZs were built in Nantze, also in the Kaohsiung area, and Taichung, with the three zones providing a total of 75,000 job opportunities by 1976. Media reports on Taiwan’s economic development frequently featured photos of masses of workers leaving the zone on bicycles at the end of a shift. Another measure of the EPZs success was the steady stream of officials from other governments who came to visit the zones with an eye to adopting a similar model. Said a January 1973 report in a Taiwan magazine: “Thus far, South Korea, the Philippines, and Mauritius have opened zones modeled significantly on Taiwan’s; South Vietnam, Cambodia, Thailand, Indonesia, and Senegal have been conducting studies preparatory to following suit.” The three EPZs are still in operation but have moved upmarket. “In the 1970s, typical EPZ products were hair dryers, fishing poles, and sewing machines,” noted a TOPICS article in 2010. “By the 1980s, factories in the zones were making cameras, microscopes, and golf clubs. Nowadays, semiconductor testing-and-packaging operations and LCD companies are mainstays.” The 1960s was also the time when AmCham began to become a more active and professional organization.

Busy hands at a plant in the Kaohsiung Export Processing Zone in the 1960s. photo : cna

When Robert Morehouse joined the Chamber in the middle of the decade, there were still only 60-some member companies. “Our ‘office,’ in the Friends of China Club on HuaiNing Street [across the plaza from the Presidential Office Building], was merely a beat-up wooden desk and a broken-down chair, and the staff was a woman who would come in on a very part-time basis to deal with mail and send out notices of meetings,” he recently recalled in an email. “Meeting minutes, and communication with members in general, were minimal.” That explains why no records remain from that period. From what we know, AmCham until the latter part of the Sixties was largely a social club – and a men’s club at that – with a focus on after-hours imbibing. Morehouse had been familiar with the AmCham in Tokyo before coming to Taipei to open the First National City Bank branch, and he realized what a properly organized chamber could accomplish. After being elected c h a i r m a n o f A m C h a m Ta i p e i i n 1966, he arranged for the head of the Tokyo chamber to come over to give a talk. Then he proposed a substantial increase in dues to provide funds to rent a real office and hire a small staff. Resistance was strong, but the motion carried by a small margin.

It took a few years, but AmCham Taipei moved in 1970 into the newly built Traders’ Building on NanJing East Road (it was billed as having the fastest elevators in the city at that time), and Guy Guh came aboard as the first Executive Director, the office now known as President. But even before then, AmCham was rapidly taking on a new, more dynamic approach. In October 1967, it held its first formal breakfast meeting; in August 1968, it became a founding member of the new Asia-Pacific Council of American Chambers (APCAC); in November 1969, the first issue was published of a bimonthly magazine, Taipei American Chamber Topics (TACT), and in January 1970 the first Hsieh Nien Fan banquet was organized. While he was AmCham chairman, Morehouse was interviewed by Look magazine, then one of the most popular U.S. publications. He noted that the “biggest and constant headache” for American business executives in Taiwan was “battling the bureaucracy” and red tape. But he also emphasized that all of the parent companies felt they had made the right decision in locating in Taiwan. Companies were making money in Taiwan and saw good potential for further growth.

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1970s: Building the Infrastructure BY DON SHAPIRO

conomic and political challenges in the Seventies tested Taiwan's determination and resilience, but by the end of the decade the society was even better prepared than before to move forward vigorously on the path of development. The 1970s opened with a one-two punch of setbacks in Taiwan’s international relations. In October 1971, the Republic of China lost the “China” seat it had occupied in both the United Nations General Assembly and Security Council (more accurately, it was “the representatives of Chiang Kai-shek” whom the body expelled). Just four months later, U.S. President Richard Nixon made his historic journey to China and signed the Shanghai Communique with PRC leaders, “acknowledging” that “all Chinese on either side of the Taiwan Strait maintain there is but one China and that Taiwan is a part of China.” In an atmosphere of confusion and uncertainty about the future of U.S.-Taiwan relations, the Taiwan government called on its citizens to exercise “calm and selfstrengthening.” No sooner had frazzled nerves begun

Premier Chiang Ching-kuo and two other officials inspect one of the 10 Big Construction Projects " – the integrated steel mill of China Steel in Kaohsiung. photo : cna

to relax than the jolt of the 1973 Oil Crisis – a quadrupling of petroleum prices due to an embargo imposed by the Arab oil-producing nations – hit the entire world economy. It was especially painful for a country like Taiwan with scant energy resources of its own and a heavy reliance on export markets,

where demand for consumer goods was now shrinking. After robust economic growth rates of 12.45% in 1971, 13.15% in 1972, and 11.83% in 1973, the domestic economy went into a tailspin, registering a mere 1.86% growth rate in 1974. Thanks to its then close ties with

1970年代：基礎建設（摘要）台灣的決心與毅力在1970年代遭逢連串政治與經濟的挑戰，但在70年代末已經掌握優於以往的條件，足以在經濟發展的道路上大步前進。 70年代一開始，台灣就接連遭受國際關係上的兩道重擊：被迫退出聯合國，以及美國總統尼克森訪問中國、簽訂《上海公報》。台灣才剛渡過政治危機，1973年就又面臨衝擊全球經濟的石油危機。原油價格暴漲四倍，各項商品價格水漲船高，原本一直維持兩位數成長的經濟，1974年的成長率僅1.86%。台灣在70年代也進入政治換軌，蔣家第二代的蔣經國逐步接手黨政軍系統。蔣經國在行政院長任內，決定推動十大建設，統整執行中與新創的基礎建設計畫。投資

經費達65億美元，主要來自貸款與公債。蔣經國的目標除了翻新台灣基礎建設，更希望建立務實的發展願景，以取代難如登天的反攻大陸。政府的財政與主計機關一開始雖然懷疑國家財政足以支撐十大建設，但最後轉為相信此一計畫除了有益民心士氣，更能有效刺激經濟成長。十大建設有六項與交通運輸有關：中山高速公路、桃園國際機場、鐵路電氣化、北迴鐵路、蘇澳港、台中港。三項與重工業有關的則為大煉鋼廠、大造船廠、石油化學工業。最後一項則是以核能發電廠滿足長期能源需求。十大建設的部分項目是美國工程公司與供應商積極爭取參與的計畫，特別是高速公路、機場、煉鋼廠與

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Saudi Arabia, Taiwan did not suffer severe oil shortages, but it had to reduce power consumption by 10%. According to a magazine report of the time: “Taiwan ‘rolls up the sidewalks’ each night earlier than before; advertising signs go black, bars close, and TV stations sign off sooner than was customary. Daylight-saving time will also be instituted April 1 for the first time in years.” Due to the impact of the oil crisis, Taiwan found itself paying more for a whole range of imported commodities. For months, the government provided subsidies to hold down the prices of crucial items such as soybeans, steel, and petroleum, but eventually the program proved too costly. Four days into the new lunar year in 1974, the authorities allowed a one-time price adjustment that caused the cost of many everyday items to shoot up. During this and the Second Oil Crisis that hit in 1979, most employers resisted the “un-Chinese” step of laying off workers, but some found that they had little choice. In a society where many of the factory personnel had only recently migrated from the countryside to the cities, however, the temporary loss of a job turned out not to be a drastic problem. People simply returned to live on the family farm for the duration. The 1970s was a time of generational change in the political

leadership. Before his death in 1975, President Chiang Kai-shek, aged and in frail health, had been giving increasing responsibility to his son Chiang Ching-kuo. The younger Chiang became Premier in 1972. To provide the country with a sense of a national goal, Pre mier Chiang came up with a plan to bundle several infrastructure projects already underway together with a number of new ones. Dubbed the “10 Big Construction Projects,” the package involved total investment of US$6.5 billion, to be financed mainly through loans and the issuance of bonds. There was no doubt about the need to modernize the island’s infrastructure. For years, little new investment had gone into public transportation and basic industrial facilities, both because the government in the 1950s was badly strapped for cash and because, politically, it was long seen as defeatism to allow the policy focus to stray from “the national mission of recovery of the mainland.” By the 1970s, however, Double Ten national day speeches might still call for a return to the mainland, but the Kuomintang realized that it was far more important for its political future to keep Taiwan prosperous. The government rallied public support by labeling the projects as the building blocks necessary to propel Taiwan from a developing economy to developed status.

1971 March August October

Ground broken for construction of the Sun Yat-sen Freeway. United Nations admits People’s Republic of China and expels “representatives of Chiang Kai-shek.”

1972 February March

U.S. President Richard Nixon visits China and signs Shanghai Communique. National Assembly re-elects President Chiang Kai-shek to fifth six-year term.

May

Vice Premier Chiang Ching-kuo is appointed Premier.

Sept.

Diplomatic relations severed with Japan.

1973 July

Industrial Technology Research Institute (ITRI) established. AmCham moves to Chia Hsin Building on ZhongShan North Road.

October Dec.

Construction completed of Zengwen Dam and Reservoir, the largest in Taiwan. Construction of the Suao-Hualien railroad is launched.

1974 october

The first F5E Freedom jet fighter, co-produced with Northrup, rolls off the assembly line.

1975 feb.

april 核電廠。十大建設之外，美商也積極投入其他產業，如康寧設立太平洋玻璃，生產電視陰極射線管；福特與六和結盟生產汽車；美國國際集團（AIG）併購南山人壽。美國無線電公司（RCA）在1976年做出關鍵決定，以授權而非合資的方式，提供互補式金氧半導體（CMOS）的技術給工業技術研究院的電子研發部門。工研院因此掌握半導體產業的入場券，最後成功扶植晶圓產業的兩大龍頭：台灣積體電路與聯華電子。 70年代後期，石油危機再度上演，不過衝擊較小。台灣同時經歷嚴重政治衝擊，因為美國轉而承認中華人民共和國（詳見本期的「促成台灣關係法」）。但十大建設已經建立堅實基礎，使得經濟發展動能足以維繫持續成長，台灣人民因而能以自信態度渡過難關。

AmCham moves to new office in Traders’ Building on NanJing East Road

China Steel Corp. signs US$200million loan agreement with Continental Illinois National Bank to help finance construction of a steel mill in Kaohsiung. President Chiang Kai-shek dies and is succeeded by Vice President Yen Chia-kan.

1976 october

Acer (originally named Muiltitech) established. ITRI obtains CMOS technology from RCA, basis for developing semiconductor industry.

1977 june

China Shipbuilding Corp. launches 445,000-ton tanker Burmah Endeavour, the world’s third-largest vessel, built for U.S. Gatx Oswego.

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Looking Back On Six Decades - Amcham Taipei's 60th Anniversary

1970s: Building the Infrastructure

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1970s: Building the Infrastructure

Initially the financial specialists in government were concerned about the huge cost of the program, but in the end they saw that the ambitious initiative not only boosted public morale but also served the purpose of providing needed economic stimulus.

A look at the projects Of the 10 projects, six dealt with transportation: • Constructing Taiwan’s first international-standard highway, t h e S u n Ya t - s e n F r e e w a y stretching from Keelung to Kaohsiung and reducing driving time by half. Without such a motorway, Taiwan’s economic development would have been severely constrained. • Building an entirely new international airport in Taoyuan to replace the cramped and outmoded Songshan Airport in the middle of Taipei. • Electrifying the main trunk railway line to cut the running time by one-third while tripling capacity. • Creating a railway link tunneling through the mountains to connect Suao and Hualien, bringing greater convenience to the people of eastern Taiwan. • Developing a new commercial port at Suao to relieve some of the congestion at Keelung. • Constructing a new, totally man-made harbor near Taichung to serve central Taiwan. Three projects were aimed at providing a stronger foundation in heavy industry to support future development: • Taiwan’s first integrated steel mill, to be operated by a newly established state enterprise, the China Steel Corp. • A massive shipyard in Kaohsiung, boasting the world’s second largest drydock, for operation by another government corporation, China Shipbuilding. One of its first orders was for a 445,000-ton oil

The passenger terminal of the Chiang Kai-shek (now Taoyuan) International Airport, another of the “10 Big Construction Projects,” soon after its inauguration. photo : cna

tanker, the Burmah Endeavour, for Gatx Oswego of the United States. When launched, it was the world’s third-largest vessel. • A petrochemical complex in Linyuan, near Kaohsiung, utilizing feedstock from the stateowned Chinese Petroleum Corp. (CPC). The goal was to make Taiwan self-sufficient in key intermediate materials for the plastics, synthetic rubber, and artificial fiber industries. The final item was to ensure a sufficient long-term energy supply by developing a series of nuclear power plants for operation by the stateowned Taiwan Power Co. (Taipower). Several of the projects represented major business opportunities for U.S. engineering companies and suppliers. For the freeway, the first road in Taiwan built to American highway specifications, the U.S. engineering firm DeLeuw, Cather partnered with Taiwan’s CECI to conduct the feasibility study for the project, design several sections, and provide construction engineering and inspection for the northern portion. The project manager for the airport terminal was another U.S. engineering company, Parsons. When the new airport opened in 1979, it was greeted as a great

improvement by travelers as well as by international airlines serving Taipei, including United, Northwest (now merged with Delta), and Cathay Pacific. The steel mill project was originally announced as a joint venture with investment by Voest of Austria, but the deal later fell through. After failing to find enough domestic private investors to take over the project, the Taiwan government created a new state enterprise, China Steel, to own and operate the mill. Previously, Taiwan made only lesser quality steel by melting down scrap iron – much of it obtained by dismantling ships at the large “shipbreaking” yard in Kaohsiung. It had no experts with experience running a blast furnace. To head China Steel, President Chiang Kai-shek reportedly personally picked William Y.T. Chao, an M.I.T.-trained engineer who over a long career had overseen the construction of many factories of various kinds in Southeast Asia. The energetic Chao put together and trained a team of enthusiastic young engineers who made steelmaking their mission in life. Output from the plant later proved a boon to many downstream industries in Taiwan, from hand tools to automobiles, while also directly contributing to export totals.

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1978 march

Premier Chiang Ching-kuo is elected President by the National Assembly. First unit of Taiwan’s first nuclear power plant begins operations in Chinshan.

october

377-kilometer Sun Yat-sen Freeway is opened.

dec.

President Carter announces that U.S. will terminate diplomatic relations with the ROC on Jan. 1, 1979.

1979 February

At a 1972 press conference in Taipei, Ford Motor Chairman Henry Ford II, center, speaks about the company's plans in Taiwan. At right is Raymond Chen, the Ford representative in Taiwan, who served as AmCham Chairman in 1975. photo : cna

USS Engineers and Consultants, a subsidiary of U.S. Steel Corp., conducted the feasibility study for the plant and served as the consulting engineer from the design phase through construction. It also helped with procurement and training. Numerous American companies were involved with equipment supply, including Mesta Machine, General Electric (GE), Westinghouse, and Combustion Engineering. Continental Illinois National Bank provided China Steel with a US$200-million loan to help finance the construction. At the petrochemical complex, the foreign investors included Amoco Chemical (later acquired by BP), which joined with CPC and another investor to form the China American Petrochemical Co. (CAPCO), Taiwan’s largest producer of Purified Terephthalic Acid (PTA), the raw material for polyester fiber and chips.

Nuclear controversies Taiwan’s entrance into the nuclear power field led to major contracts for such companies as GE and Westinghouse. GE supplied the reactors and Westinghouse the turbine generators for the first two plants, in Chinshan and Kuosheng in the north, while the two companies’ roles were

reversed for the third plant in Maanshan in the south. Bechtel established a Taipei subsidiary, Pacific Engineers & Consultants Ltd. (PECL), with the original intention of specializing in engineering for nuclear power plants. When public concerns about nuclear safety later caused the government to drastically pare down its plans to build more than 20 nuclear plants, PECL diversified to other areas of the engineering business. But for a time, it shared the nuclear engineering market with another U.S. company, Ebasco. Today, Chinshan, Kuosheng, and Maanshan are still the only nuclear plants in operation. Construction at a fourth site at Longmen in New Taipei City began in 1997, was halted after the Democratic Progressive Party came to power in 2000, and was resumed after a ruling by the Constitutional Court. But progress has been slow, and the future of nuclear power after the Fukushima nuclear disaster in Japan remains very much in doubt. Not all the U.S. investment in the 1970s was related to the 10 Big Projects. In electronics, the supply chain for the cluster of TV manufacturers in Taiwan was strengthened when the Pacific Glass Corp. was established in Taoyuan in 1972. The operation, with shares held 60% by Corning Inc., 30% by Asahi Glass,

AmCham Chairman Robert Parker testifies before Congressional committees on need for continued U.S. security commitment to Taiwan. Chiang Kai-shek (now Taoyuan) International Airport opens.

march

U.S. embassy closes, to be succeeded by American Institute in Taiwan. Taiwan opens Washington office of Coordination Council for North American Affairs.

april

Taiwan Relations Act becomes law, forming basis for substantive but unofficial relations between U.S. and Taiwan. ICRT goes on the air, replacing Armed Forces Network Taiwan. First 7-Eleven opens in Taipei.

july

Legislation passed to establish Hsinchu Science-based Industrial Park. Electrification of 1,153-kilometer westcoast trunk line railway completed. Kaohsiung becomes special municipality.

dec.

Rally organized by Formosa magazine leads to clash with police, followed by arrest, trial, and conviction of opposition leaders, including future Vice President Annette Lu.

Statistical Snapshot

Population Ecnomic growth GDP Per capita GNP Unemployment Exports Imports Forex reserves Private cars Univ. students

1975 16.2 million 5.40% US$15.73 bn US$973 2.40% US$5.35 bn US$5.962 bn US$1.07 bn 104,000 290,000

1980 17.8 million 7.30% US$42.2 bn US$2,381 1.23% US$19.88 bn US$19.76 bn US$2.21 bn 358,000 343,000

sOURCES: CEPD

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1970s: Building the Infrastructure

The AmCham office was located briefly in the Trader's Building on NanJing East Road, left, before moving into the rear wing of the Chia Hsin Building on ZhongShan North Road in 1973. It was to remain Amcham’s home for over three decades. photos: Importers and Exporters Association of Taipei; Chia Hsin Bldg

and 10% by the local China Development Corp., involved some US$2 million in investment to make glass bulbs for black-and-white picture tubes. “The significance for both the Taiwan economy and the electronics industry was that this completed the three-legged stool of the TV industry – the glass bulb, the cathode ray tube, and the TV set – now all produced in Taiwan,” Marinus van Gessel, who later headed the operation, explained in an email. In the auto industry, the big news was the creation in 1972 of the Ford Lio Ho Motor Co., a joint venture between Ford – entering a market long dominated by Japanese technology – and the Lio Ho Group that had formerly teamed up with Toyota. Henry Ford II, the company chairman and son of the founder, firmed up the investment plans (which called for Ford to take a controlling 70% stake) while on a visit to Taiwan. Just six months after the joint-venture agreement was signed, the first vehicle, a Cortina sedan, rolled off the factory assembly line. Years before the insurance industry in Taiwan was opened in general to foreign investment, the American International Group (AIG) managed to assume a majority interest in Nan Shan Life in 1970. Nan Shan had been in difficult straits, and the government welcomed the AIG take-

over as a way not only of rescuing the company but also of introducing modern record-keeping, planning, and sales practices as a model for the rest of the industry. Nan Shan went on to become – until AIG’s financial difficulties of a few years ago – one of the most successful life insurance companies in Taiwan. In a licensing rather than investment agreement, RCA played a pivotal role in 1976 when it agreed to supply CMOS technology to the electronics laboratory of the Industrial Technology Research Institute. That provided ITRI with its first experience with semiconductors, leading to the later spin-offs of what are now giants in the industry: Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. (UMC). During the Seventies, the most popular business hotels were the President on TehHui Street, now long gone, and the Ambassador on ZhongShan North Road, still there after many renovations. Both were opened in the mid-Sixties, and their lobbies and coffee shops were meeting places for streams of visiting buyers looking for suppliers of a broad range of products, including umbrellas, handbags, garments, and Christmas lights. Toward the end of the decade, TV games and electronic calculators were added to the mix. Quite often the buyers’ contacts

were not the manufacturers, whose English and marketing skills were limited, but representatives from the proliferation of trading companies in Taipei – some of them one-man operations but others quite substantial. At AmCham, the office moved again in 1973, into the Chia Hsin Building on Zhongshan North Road, and was to remain there for more than three decades. The long-serving Executive Director (the office now called President) in the 1970s and 1980s was a retired military man named Herbert Gale Peabody, often referred to as “The Colonel,” who had earned a number of medals while serving on General McArthur’s staff. While still in uniform, Peabody had trained and won the respect of many ROC servicement who had become high-ranking officers. The resulting guanxi helped AmCham on numerous occasions gain access to key figures in government. Toward the end of the Seventies, the world economy was buffeted by a second, though somewhat smaller oil crisis. And Taiwan reeled under the impact of U.S. derecognition as noted elsewhere in this issue. But the feeling that Taiwan had the economic momentum to ensure its continued prosperity – a momentum furthered by the strong infrastructure foundation built up through the Ten Big Projects – helped see the people of Taiwan through difficult times.

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20 Years of Legend Continues....

Diplomacy

Derecognition

Helping Forge the Taiwan Relations Act 促成台灣關係法 BY DON SHAPIRO

t was December 15, 1978, the evening of AmCham Taipei’s annual Christmas Ball, held at the U.S. military’s Officers’ Club. U.S. Ambassador Leonard Unger was on the dance floor when an aide tapped him on the shoulder and told him he had an urgent phone call. Taking the call in the club office, the ambassador found that the State Department was on the line, advising him that President Jimmy Carter would be announcing – later that same day, Washington time – the U.S. decision to sever diplomatic relations with Taiwan in order to recognize the PRC. After a tense 45 minutes on the phone, Unger excused himself to guests at the head table and quietly left the gathering with his wife. Several

1978

hours after midnight, after requesting that President Chiang Ching-kuo be awakened, Unger arrived at the presidential residence to personally break the news to Chiang before it became public information. Residents of Taiwan awoke the next morning to what most of them regarded as the shocking news of the shift in American policy. In one sense, the U.S. “derecognition” of Taiwan was indeed a sudden development. The Carter Administration had taken pains not to tip off the media or Taiwan officials for fear that Taiwan would rally its supporters in Congress to oppose the move. And the ROC government, for its part, had sought to maintain public confidence by downplaying any suspi-

年12月15日，台北市美國商會當晚在美軍軍官俱樂部舉行一年一度的耶誕舞會。美國大使安克志正在跳舞之際，一位助理上前拍了拍他的肩，告訴他有通緊急電話。安克志在俱樂部辦公室接聽電話，發現國務院的訓令是，卡特總統當天稍晚將宣布美國將與台灣斷交、正式承認中華人民共和國。經過45分鐘的密集溝通後，安克志決定向主桌的客人告辭，然後與妻子悄悄地離開會場。午夜過後數小時，安克志請求叫醒蔣經國總統後抵達總統官邸，親自告知即將公開的斷交決定。台灣民眾隔天一早都得知美國斷交這項令多數人震驚的新聞。在某一層面上，美國決定斷交是個突然的大轉變。卡特政府保密到家，始終瞞住新聞界或台灣官員，以免台灣動員美國國會的支持者介入反制。同一時期，中華民國政府則努力維持民眾信心，平息對台灣可能失去最重要外交盟邦的任何風聲。然而，卡特的正式宣布，不過是卡特訪中與1972年簽

撰文／沙蕩

cions that Taiwan might lose its most important diplomatic ally. At the same time, however, the Carter announcement came as the longanticipated consequence of President Nixon’s trip to China and the signing of the Shanghai Communique in 1972. In fact, “normalization” of relations with the PRC would undoubtedly have occurred much sooner if Nixon had not become embroiled in the Watergate affair and forced to resign. But during that long period of “waiting for the other shoe to drop,” t h e U . S . g o v e r n m e n t h a d a p p a rently given only cursory consideration to what form the relationship with Taiwan should take after derecognition occurred. The U.S.-Taiwan Mutual

訂上海公報後，理所當然的結果。事實上，如果不是尼克森總統深陷水門風暴、被迫辭職，美中關係正常化的腳步還會更快。但在真正斷交之前，美國政府顯然並未深切思考，雙方斷交後將以何種方式繼續往來。美台協防條約勢必終止，美軍也需要撤出台灣，但美國是否還能繼續保護台灣安全？同時，欠缺正式外交關係，雙方政府將如何互動？不過，美國商會的領導階級已經仔細思考過上述問題，這主要得歸功於董事會成員溫嘉書。1975年抵台接掌康寧玻璃之前，曾任商務部副助理部長；他在政府任職期間，已經注意到許多官員都認為台灣是個待解的「問題」。現在，身為在台企業人士，溫嘉書希望就算美台外交關係改變，美商也能盡量避免可能遭受的衝擊。溫嘉書1976年首度當選商會會長後，商會的重要決策之一是，只要不傷害台灣，不會反對美中改善關係。

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Diplomacy

Defense Treaty would certainly need to be terminated and American armed forces withdrawn from the island, but could the United States still play a role in guaranteeing Taiwan’s security? Without embassies, how would the two governments interact? The AmCham Taipei leadership had already been devoting considerable thought to those subjects, however, thanks largely to the presence on the Board of Marinus “Dutch” van Gessel. Before coming to Taiwan in 1975 to head operations for Corning Glass, he had served as a U.S. Deputy Assistant Secretary of Commerce, and while in government, he had sensed that many in Washington viewed Taiwan mainly as a “problem” to be surmounted. Now, as a businessman in Taiwan, he wished to ensure that due consideration be given to the potential impact on U.S. business interests of any change in the bilateral relationship. During van Gessel’s first term as AmCham Chairman in 1976, the Chamber made the strategic decision not to oppose the improvement of U.S. relations with China – as long as it was not done at the expense of Taiwan. In an article they co-authored that appeared in the April 2009 issue of Taiwan Business TOPICS, van Gessel (AmCham chairman in 1976, 1977, and 1986) and Robert Parker (chairman in 1979 and 1980) explained: “That stance was more than simply resigning

Accompanied by U.S. Ambassador to the ROC Leonard Unger (left,) Deputy Secretary of State Warren Christopher (center) calls on Taiwan officials following President Carter's announcement of derecognition. photo : cna

ourselves to the inevitable, because the head offices of practically all of AmCham’s American members had by then awakened to commercial reasons for supporting improved relations with China. The practicality of AmCham’s position ultimately strengthened our credibility in Washington, of course, when ‘derecognition’ actually happened.” In line with that strategic decision, van Gessel wrote a paper in January 1977 entitled The U.S. and the ROC: A Businessman’s View – A Position Paper of the American Chamber of Commerce in the ROC. The document laid out many of the principles later incorporated in the Taiwan Relations Act, the

1976、1977、1986年三度擔任會長的溫嘉書與1979年、 1980年兩度擔任會長的羅伯．派克，兩人曾於2009年4 月在TOPICS雜誌中聯名發表文章。他們指出，「當時的表態並不只是屈服於現實，儘管幾乎所有商會會員的總部都已經認定，支持美中改善關係將有利於企業發展。當然，一旦美台斷交成為事實，商會的務實立場終究將能強化我們在華府政治圈內的可信度。」基於商會決策，溫嘉書1977年1月發表專文，題為「美國與中華民國：企業人士的觀點－台北市美僑商會的立場聲明」。聲明的許多原則最後都納入美國的《台灣關係法》－美國國會1980年通過該法，建立美台新關係的基本架構。溫嘉書除了1977年出席國會聽證，也發起投書運動以向美國國會議員及華府人士說明，美國對台灣安全的承諾不僅是軍事與外交議題，更攸關經營環境的穩定。卡特宣布斷交之際，派克已是商會會長的當選人，但要到次年元旦才會就任。然而，現任會長被母公司要

law passed by Congress in 1980 that has formed the basis of U.S. relations with Taiwan ever since. Van Gessel also testified before a Congressional committee in 1977, and he organized a letter-writing campaign to Congressional offices and others in Washington to argue that the U.S. commitment to Taiwan’s security was not only a military and diplomatic issue, but also crucial to the stability of the business environment. At the time of President Carter’s announcement, Rob Parker was AmCham’s chairman-elect, not scheduled to take office until January 1. But with the still-incumbent chairman ordered by his company to steer clear

求迴避政治問題，派克因而一肩扛起商會對外發言的工作，因此在其後數個月的時間內根本無法顧及法律事務所的原職。卡特的重要演說之後，當時的三家電視台隨即派人前往派克的辦公室；派克在首批訪問中重申商會立場，強調商會並不反對美國承認中華人民共和國，但強烈反對建交的條件，以及未事先告知台灣的無禮。對於斷交後的反應，溫嘉書與派克在TOPICS的文章中指出，「那個週末，原訂的電視與廣播節目全部取消，所有的內容只剩下卡特令人心寒的聲明、蔣經國的莊嚴回應、中華民國國歌，以及派克代表商會的聲明。台灣與其人民對美國政府的不滿與屈辱感，不言可喻」。「旅居台灣的美國人非常確定，美國政府的決定無法左右我們的想法，我們還是會與台灣朋友站在一起。情勢演變非常迅速，謠言到處都是，要連絡上商會會員也很困難。商會當時與美軍廣播電台並無往來，電台節目也不播報台灣新聞。電子郵件多年之後才問世，也沒有

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of anything political, Parker was thrust into the role of Chamber spokesman (and for the next several months barely had time to attend to his law practice). Within hours of the Carter speech, crews from the three Taiwan television networks had descended on Parker’s office, and in those first interviews he reiterated the position that AmCham did not object to U.S. recognition of the PRC per se, but strongly objected to the terms of the agreement and to the discourtesy of the lack of proper advance notice to Taiwan. The van Gessel-Parker article in Topics relates what happened next: “Regular television and radio programming was suspended throughout Taiwan that weekend, as President Carter’s grinning announcement, President Chiang’s dignified response, the ROC national anthem, and Parker’s statement on behalf of AmCham were played over and over. The hurt and indignation felt toward the U.S. government by Taiwan and its people were palpable. “We Americans in Taiwan were anything but sure that we had not been cast adrift by our own government, along with our Taiwan friends. New developments were happening at a fast clip, rumors abounded, and communicating with AmCham members wasn’t easy. The U.S. military radio station was off limits to the Chamber, and in any event it carried no local Taiwan news. Email was years in the future, and even fax

machines weren’t yet available. Thus, we called frequent meetings of the Board of Governors and Supervisors, often on short notice, and van Gessel and Parker met together on a daily basis to coordinate AmCham’s efforts. “Parker wrote a series of letter reports to the membership, updating them by mail once or twice a week. Despite their bitterness toward the Carter Administration, people throughout Taiwan seemed eager to view AmCham as symbolic proof that America’s longstanding affection for Taiwan was alive and well. Thanks to the power of television, they knew where AmCham stood. Americans were frequently stopped on the street in those days by local people they didn’t know, who wanted to exchange assurances that we would always be friends.

Testifying in Washington The U.S. Senate Foreign Relations Committee and House Foreign Affairs Committee invited AmCham to testify on the “Omnibus Legislation” that had been drafted by the State Department and proposed by the Carter Administration as the basis for future unofficial relations with “the people on Taiwan.” Representing AmCham in giving that testimony in February 1979, Parker stated: “We are an organization dedicated to the protection and advancement of American economic

傳真機可用。因此，我們常常緊急召開理監事會議，溫嘉書與派克也每天碰面以整合商會運作。」派克陸陸續續寫了很多進度報告給會員，大概一週郵寄一次或兩次。台灣人民雖然討厭卡特政府，但似乎把商會當成美台關係的指標，期盼美台長遠友誼仍能維繫。台灣人透過電視新聞瞭解了商會立場。美國人當時常常在街上被不認識的台灣人攔下，而對方只是希望知道美國與台灣是否還是朋友。」參眾兩院聽證會美國參眾兩院的外交委員會都邀請商會參加美台非官方關係綜合立法的聽證會；此一法案是由國務院起草、卡特政府提交，以界定美國與「台灣人民」的未來定位。派克1979年2月代表商會出席，他在聽證會上表示，「商會的宗旨乃是保護與推動美國在台的經濟利益。而商會參加聽政的目的乃在於闡明美中關係正常化

interests in Taiwan, and our purpose before this Committee is to point out how those interests have been jeopardized by ‘normalization’ and to offer specific proposals for correcting (1) the failure to provide adequately for the security of Taiwan against the threat of coercion from mainland China, be it military or economic, and (2) the failure to offer a clear and sufficient legal framework for the continuation of U.S.-Taiwan relationships adequate for the normal functionings of trade and investment.” On behalf of AmCham, he went on to urge Congress to enact legislation that would declare America’s strong commitment to Taiwan’s security, assure Taiwan’s continued ability to obtain defensive weaponry from the United States, and warn China that it would “lose everything it wants from the United States” if force is used against Taiwan. “Business thrives on certainty,” Parker testified, “and no element of certainty is more essential than a reasonable assurance of physical security.” Another section of Parker’s comments dealt with the numerous practical commercial questions raised by derecognition – and insufficiently answered in the proposed Omnibus Legislation. He outlined AmCham’s specific recommendations on how the bill should be revised, including provisions to assure the following: • Existing treaties and agreements

已經傷害相關利益，並希望具體建議下列兩項情勢的補救措施：其一，美國並未提供台灣足夠的安全保障，以制衡中國大陸的威逼，不論是政治或經濟手段；其二，美國並未建立清晰、足夠的法律架構以延續美台關係，使貿易與投資能夠正常運作。」基於商會立場，派克接著敦促國會立法，以宣告美國對台灣安全的承諾、以確保台灣得以持續自美國獲得防衛性武器、以警告中國「一旦對台動武，將失去美國先前所有承諾」。派克表明，「前景明確，商業才能發展，美方對台灣安全的合理保證，最能顯示台灣的前途安定明朗」。派克另一部分的證詞提出斷交所導致的具體經商挑戰，也指出行政部門的綜合立法草案並未提供適切回應。他接著說明商會對法案的具體建議，特別是下列項目：．除了協防條約，美國與台灣既有的條約與協定得維持其效力；．美國與台灣的協定得具有法律約束力；

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dations had been written into between the United States the law.” and Taiwan (other than Looking back on developthe defense treaty) would ments in that eventful year in remain in effect. a column in the November• Agreements between the December 1979 issue of United States and Taiwan TOPICS, Parker noted that would have the force of AmCham had been “involved law. in public policy aspects of the • Taiwan would have the U.S.-ROC relationship to an capacity to enter into conunprecedented degree – and tracts and sue in U.S. in some instances, this has courts. • U.S. courts would recogDutch van Gessel (left) and Robert Parker (center) from AmCham placed our Chamber in oppomeet with Premier Y.S. Sun on problems posed by the change in sition to policies of the U.S. nize and enforce laws and the U.S.-Taiwan relationship. State Department.” When that judgments of the R.O.C. photo : cna had occurred, he wrote, the “The prompt enactment reason was State Department insension the President to make no change in of legislation reflecting such terms tivity to the needs of American business the U.S.-R.O.C. Mutual Defense Treaty would not only be in the interest of in Taiwan due to preoccupation with without consulting them first. No such American business,” Parker testified, geopolitical factors (at that time chiefly consultation occurred, of course, and but “necessary to meet our country’s the desire to use China as a countermembers of both houses of Congress moral responsibilities to Taiwan and its weight against the Soviet Union). were angry. They were ready to enact a people.” But when AIT was established under strong reaffirmation of U.S. friendship Congress also heard a wide range the TRA, and a new chapter in ‘unoffiwith Taiwan, if shown the way. AmCham of other testimony from scholars, cial’ diplomatic relations began, those was more than willing to oblige. U.S. government officials, and other frictions were soon forgotten. “Fortu“The full testimony before the witnesses, including the USA-ROC Econately, the State Department sent one Senate Foreign Relations Committee nomic Council (now called the U.S.of its ablest diplomats, former U.S. was broadcast live in the United States Taiwan Business Council), which made Ambassador to Singapore Charles T. over PBS and rebroadcast in Taiwan suggestions on how to establish the Cross, to Taipei as the first Director of over all three local TV networks. Thus, American Institute in Taiwan (AIT) and AIT,” van Gessel and Parker recall in thanks again to the power of televimaintain a Taiwan representative office their 2009 article. “Meeting frequently sion, practically everyone in Taiwan in Washington. with AmCham’s officers, often inforknew the stand taken by AmCham. “Fortunately, Congress was in a mally at his home, Chuck Cross set the When the final version of the Taiwan mood to listen,” Van Gessel and Parker standard for excellent cooperation that Relations Act (TRA) was adopted [that wrote in TOPICS. “Taiwan had many has characterized AIT’s relationship April], they recognized that virtually friends on Capitol Hill, and the Senate with AmCham ever since.” all of AmCham’s principal recommenhad recently passed a resolution calling

．台灣應有法人地位，得簽訂合約、與在美國法院提起訴訟；．美國法院得承認與執行中華民國的法律與判決。派克表示，「包含上述條文的法律如能儘速落實，不僅符合美國業者的利益，也攸關美國對台灣及其人民的道德責任」。國會也聽取諸多學者、官員與其他證人的看法，包括當時的美中經濟協會（現更名為美台商業協會）。協會的建議包括，美國在台協會（AIT）的設立方式，與台灣應於華府保留代表處。溫嘉書與派克在TOPICS指出，「幸好國會還聽得進建議」，「台灣在國會山莊有許多朋友，而參院才剛通過決議，要求總統需與國會諮商後才能更動美台共同防禦條約。總統並未事先徵詢，當然會惹火參眾議員。所以，只要有人指路，議員都很樂意通過強硬法案，重申美台友誼。商會當然樂意引路。」他們回憶，「參院外委會的聽證過程，除了在美國

的公共電視網完整播出，稍後也在台灣的三台重播。因此，歸功於電視的力量，幾乎所有台灣人都知道商會的立場。因此當《台灣關係法》（在4月）拍板定案後，民眾都知道商會的主要建議幾乎全數納入法案。」回顧事端紛呈的一年，派克在1979年11至12月號的 TOPICS指出，「商會以史無前例的程度參與了美台關係的公共政策層面，而且在某些狀況下，這使得商會抵觸了國務院政策」。他說，此一狀況之所以發生，主因就是國務院偏執於地緣政治，（希望拉攏中國以抗衡蘇聯，）漠視美國在台企業的需要。然而，當AIT依《台灣關係法》成立，以及美台「非正式」外交關係跨入新頁，這些磨擦很快都被遺忘了。溫嘉書與派克在2009的文章中表示，「幸運的是，國務院派出一位頂級外交官擔任首任AIT台北辦事處處長，即前任駐新加坡大使葛樂士」，「葛樂士經常與商會代表見面，多半是在官邸的非正式談話。他的作法為AIT 與商會長期的極佳互動立下典範」。

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1979: Maintaining a Vibrant Expat Community 1979年：維持活躍的在台美僑社群

BY RICK MONDAY AND DON SHAPIRO

olitical/diplomatic ramifications aside, the U.S. announcement in December 1978 that it would switch diplomatic recognition from Taipei to Beijing also raised worrisome questions about the potential impact on the lives of American and other foreign residents in Taiwan. Would the Taipei American School (TAS), then the sole large-scale institution of international education on the island, be able to carry on as before? When the Armed F o r c e d N e t w o r k Ta i w a n ( A F N T )

除

stopped broadcasting, could another radio station take its place with English-language news, entertainment, and vital emergency information on typhoons and earthquakes? And with the departure of the U.S. military, which had sponsored social and recreational programs open to many U.S. civilian families, would there be sufficient facilities of that kind to meet the needs of the expatriate community? These were all issues that had received virtually no attention before

了政治／外交枝節，美國1978年12月宣布外交承認對象從台北轉換為北京，也引發可能衝擊在台美國和他國僑民生活的令人憂心問題。當時是台灣唯一大型國際教育機構的台北美國學校，能否持續運作下去？一旦駐台美軍廣播電台（AFNT）停止播送，其它廣播電台能否取而代之，提供英語新聞、娛樂，以及颱風和地震的重大急難事故訊息？曾贊助社交娛樂活動供許多美國公民眷屬參加的美軍離開後，是否有足夠的這類設施滿足僑社需求？在卡特總統宣布「終止承認」中華民國之前，這些議題幾乎未受到注意，美國駐台北大使館當時正準備結束業務，並無立場提供協助。在當時的重要關頭，台北市美國商會出面，擔任和台灣當局溝通的主要管道，以維護或建立必要的在台美僑組織。商會和台灣政府官員舉行無數會議，以找出滿足四大目標的方法：．成立台北國際社區廣播電台（ICRT），接替AFNT過

撰文／孟瑞克、沙蕩

President Carter’s “de-recognition” pronouncement, and the U.S. embassy in Taipei – which was preparing to wrap up its operations – was in little position to help. At that momentous juncture, AmCham stepped in to serve as the main conduit for communication with the Taiwan authorities to preserve or establish the needed community organizations. Countless meetings were held with government officials to work out ways to meet four objectives: • Establishing International Commu-

去擔任的角色。．確保台北美國學校的合法地位，並將之遷往不會淹水的新址。水患常令地勢低窪的該校士林校區停擺。．為美僑俱樂部安排較大的新址。．創立台北國際社區青年育樂活動中心基金會（TYPA），為居留台灣的年輕外僑提供休閒機會。當年的美國商會會長羅伯‧派克回憶說：「通過《台灣關係法》是商會在1979年的頭號要務，不過我們當時在台灣推動的計畫對會員也十分重要。」「出乎意料的是，唯一在商會理監事會遭到一些反對聲浪的是ICRT。反對者堅信，這個廣播電台計畫會失敗，並影響商會的其他優先要務。幸運的是，我能夠凝聚支持這項計畫的多數人，並徵召商會的主要理監事擔任『取代駐台美軍廣播電台委員會』成員。商會理監事會和台灣新聞局達成的一項關鍵性妥協，就是ICRT雖以商會計畫的方式成

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nity Radio Taiwan (ICRT) to take over the role previously served by AFNT. • Securing the legal status of TAS and moving it to a new site that would be free of the flooding that frequently disrupted the low-lying Shilin campus. • Arranging a new and larger location for the American Club in China (ACC). • Creating a Taipei Youth Program Association (TYPA) to provide recreational opportunities for expat youngsters. “Although passage of the Taiwan Relations Act was AmCham's top priority in 1979, our local projects were also vitally important to our members,” recalls Robert Parker, the AmCham chairman that year. “Surprisingly, the only one that encountered some resistance on AmCham's board was ICRT. The opponents were convinced that the radio station project would fail and undermine AmCham's other priorities. Fortunately, I was able to rally a majority in favor of the project and enlisted key board members to serve on the ‘Committee to Replace AFNT.’ A key concession on which AmCham's board and the Government Information Office (GIO) agreed was that ICRT, although created as an AmCham project, would not be an ‘AmCham station,’ but an independent entity.” “The circumstances of the time worked in favor of establishing ICRT,”

Parker says. “The Internet was years in the future, as was direct satellite TV. In 1979, Taiwan had no cable TV, and no other TV or radio in English. The International Herald-Tribune wasn't yet distributed in Taiwan, and the Asian Wall Street Journal had not started publishing. The U.S. military's AFNT was the only cultural lifeline for Englishspeaking expats, and it was about to disappear with the withdrawal of all U.S. troops. AmCham thus stepped into

For his efforts in 1979, Robert Parker was awarded the Order of the Brilliant Star by President Lee Teng-hui in May 2000.

立，但並非『美國商會的電台』，未來將獨立運作。」派克表示：「當時環境有利於成立ICRT。網路在未來多年後才出現，衛星直播電視也是。1979年，台灣還沒有有線電視，也沒有其他英語電視台或廣播電台。《國際前鋒論壇報》尚未在台發行，《亞洲華爾街日報》還未開始出版。美國軍方的AFNT是使用英語外僑與自身文化聯繫的唯一管道，即將隨著美軍全部撤離而消失。美國商會因此介入這個缺口，提出成立ICRT 的計畫，並且獲得壓倒性的正面回應。」籌劃工作從設立台北國際社區文化基金會作為新電台的母體組織開始。根據中華民國法律，本地廣播電台須由中華民國公民出任董事長，基金會也一樣。派克指出：「美國商會和新聞局達成共識，辜濂松是領導ICRT和台北國際社區文化基金會的完美人選，因為他擁有企業家和民間外交家的國際地位、絕佳的英文能力，而且在中華民國政府和

photo : cna

the breach with our project to establish ICRT, and the response was overwhelmingly positive.” Planning began to set up a Taiwan International Community Cultural Foundation (TICCF) as the parent body for the new station. Under ROC law, local radio stations were required to have an ROC citizen as chairman, as were foundations. “AmCham and the GIO agreed that Jeffrey L. S. Koo was the perfect choice to head ICRT and TICCF because of his international stature as a businessman and private-sector diplomat, excellent command of English, and many friendships within the ROC government and the American business community,” notes Parker. Koo agreed to take on the challenge and asked Parker (who was not only AmCham chairman, but also the only member of the Chamber board with a radio background, having worked his way through college and law school as an announcer with stations in Texas) to serve as vice chairman. The initial foundation board consisted of 10 business executives, half Taiwanese and half foreigners. “ICRT could not have been established without the full cooperation of the ROC government,” adds Parker. “President Chiang Ching-kuo heard about the project when I was being interviewed on TV, and he realized that a successful transition from AFNT to ICRT could symbolize continuity in U.S.-Taiwan relations. He ordered the government to do ‘whatever it takes’

美國商界裡有許多人脈。」辜濂松同意接受這項挑戰，並要求派克（當時不只擔任美國商會會長，也是商會理監事會中唯一擁有廣播背景的成員，曾在德州的廣播電台擔任播音員，賺錢念完大學和法學院）出任副董事長。最初的基金會董事會由10位企業主管組成，其中半數是台籍，另一半為外國籍。派克補充說：「沒有中華民國政府全力配合，ICRT 就無法成立。我在電視上接受訪問時，蔣經國總統聽到這個計畫，他了解，從AFNT成功過渡到ICRT，可成為美台關係延續的象徵。他責成台灣政府『不計一切』幫助我們達成計畫，AFNT的最後訊號停止和ICRT開始播送訊號之間『毫無中斷』。」蔣經國命令的落實，當時的新聞局長宋楚瑜發揮了相當的作用。他常和派克等人見面—尤其是固特異的哈洛德．威爾遜，以及花旗銀行的華特．拉森。派克2004年接受台北市美國商會月刊《Taiwan Business TOPICS》訪問時，曾回憶說：「我們

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Superintendent Guy Lott addresses attendees at the dedication ceremony for the new TAS campus in 1989. photo : taipei american school

to help our project succeed, ‘without a minute of silence’ between the final sign-off of AFNT and the sign-on of ICRT.” James Soong, Director-General of the GIO at that time, was instrumental in implementing President Chiang's order. He met frequently with Parker and others – notably Harold Wilson of Goodyear and Walter Larsen of Citibank. “We ran up against many legal and bureaucratic obstacles, but I would go see James Soong, and he would tell me to come back the next

day and the problem would be solved,” Parker recalled in a 2004 interview with Taiwan Business TOPICS. Another challenge was financial. AmCham conducted a fundraising campaign among U.S. corporations in Taiwan, and GIO agreed to provide matching funds. “The sums weren't big by today's standards, but it was a lot of money at that time,” Parker told TOPICS. In addition, TICCF started negotiations with the U.S. military about buying the broadcasting

遇到許多法律和官僚障礙，不過我會去見宋楚瑜，他會要我第二天再來，問題就迎刃而解。」另一項挑戰是財務。台北市美國商會向在台的美國企業展開募款運動，新聞局同意提撥相等資金。派克接受《TOPICS》訪問時說：「以今日標準來看，總額並不多，但在當時是一大筆錢。」此外，台北國際社區文化基金會開始和美軍協商購買廣播設備。一份外聘顧問的評估報告顯示，將所有設備運回美國費用很高，因此美軍同意將這些設備以象徵性總額1美元賣給新電台。 ICRT在1979年4月16日開播時，大家聽到的第一個聲音就來自派克。基金會聘請一家夏威夷業者管理電台，並負責工作人員招聘。新電台播報的本地新聞遠多於AFNT。派克接受《TOPICS》訪問時表示：「在以前，聽眾可能會聽到許多來自堪薩斯州的最新報導—絕無跡象顯示聽眾是在台灣。不過我們從第一天開始，就提供本土消息和國際新聞，而且未經審查。」資深廣播人克雷格．奎克在1983年獲聘出任電台經

equipment. After seeing a consultant’s report showing the high cost of shipping everything back to the United States, the American military agreed to sell the equipment to the new operation for the token amount of US$1. The first voice heard on ICRT when it went on the air on April 16, 1979 was that of Rob Parker. The foundation hired a Hawaiibased company to manage and staff the station, which began to carry much m o r e l o c a l n e w s t h a n h a d A F N T. “Before, you could've been in the middle of Kansas – there was absolutely nothing to indicate that listeners were in Taiwan,” Parker said in the TOPICS interview. “But from day one, we provided local news content as well as world news, and it was uncensored.” Veteran radio programmer Craig Quick was hired as station manager in 1983. He brought in radio talent from the United States and transformed ICRT into a widely acclaimed station. The format he introduced, which included contests, community support, and requests for songs – concepts previously unknown in the Taiwan market – was later imitated by numerous local stations. ICRT also broke new ground with such programs as Nicholas Gould's “Issues and Opinions” in the mid-1980s, the first radio show to have representatives from both the ruling Kuomintang and the newly formed Democratic Pro-

理。他從美國引進廣播人才，讓ICRT轉型成廣獲好評的電台。他引入包括競賽、社區服務和點歌在內的節目安排，這些概念過去在台灣市場聞所未聞，後來被許多本地電台仿效。 ICRT也在1980年代中期突破創新，推出古力克的「話題與意見」等節目，這是首度有廣播節目同時邀請執政的國民黨和剛成立的民進黨代表，討論重大議題。派克指出：「ICRT率先在節目中探索環保和女性議題，也具有重大貢獻，驅使其他廣播電台仿效。」古力克仍住在台灣，但目前從商。他指出，ICRT的新聞部（1990年時有23人，其中一些人後來有不錯發展，任職於《時代雜誌》、《新聞周刊》和美國之音等機構）可能是全世界最大的獨立商業廣播新聞單位。「它的運作模式無法在任何其它地方複製，因為現在的經濟情勢和廣播市場根本不允許對新聞有這麼高度的投入。我覺得很幸運能參與其中，報導許多有關台灣及其政治逐漸轉為民主的新聞，它支持ICRT新聞部將近10年之久。」

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gressive Party discuss major issues. “ICRT also made a big contribution and inspired other radio stations to follow by being the first to explore such things as environmental and women's issues on the air,” noted Parker. Gould, still living in Taiwan but now doing business, notes that ICRT’s news department – which consisted of 23 people in 1990 (some of whom went on to distinguished careers with such organizations as Time, Newsweek, and Voice of America) – was perhaps the largest commercial, independent radio news operation in the world. “It certainly will never be replicated anywhere else, as the economy and radio market of today simply doesn’t allow for such a high level of commitment to the news. I feel lucky to have been a part of that effort, and it says a lot about Taiwan and its transition to democracy that for nearly 10 years it supported the ICRT news department.”

The school and the club With regard to solving the difficulties facing TAS and the ACC, AmCham played a less central – but still crucial – role. “The boards of TAS and the ACC did most of the work on their relocation projects,” says Parker, “but AmCham put the proposals before top levels of the ROC government, and when major problems arose with both

After the U.S. military departed, the China Seas Club became the new site of the American Club in China (ACC). photo : courtesy of acc

projects, it was AmCham that worked out the solutions.” Premier Y.S. Sun, a former Minister of Economic Affairs, recognized the importance to foreign investors of good schooling for their children and a comfortable living environment. Among the key officials in his administration who followed up in assuring that the break in formal diplomatic relations would not adversely impact the resident foreign community was Fredrick Chien, then Vice Foreign Minister. Chien recalls

美國學校和美僑俱樂部至於解決美國學校和美僑俱樂部面臨的難題，台北市美國商會扮演了較不重要（但仍具決定性）的角色。派克表示：「美國學校和美僑俱樂部的遷移計畫大多由他們各自的董事會完成，不過美國商會向中華民國政府高層提出提案，而且每當兩項計畫出現重大問題時，是由商會找出解決辦法。」曾任經濟部長，之後又擔任行政院長的孫運璿明白，讓小孩擁有良好教育和舒適生活環境對外國投資者很重要。在他的內閣中，負責後續追蹤並確定台美外交關係終止不會對外國僑社造成不利衝擊的數位關鍵官員，也包括當時擔任外交部次長的錢復。錢復回憶當時和擔心美國學校未來的美國商會代表團見面情況。他說：「他們希望獲得我們保證，美國學校能照常運作。」錢復表示，當時台灣政府不但同意這項請求，還幫助該校後來遷至目前的天母校址，而且能招收更多學生。（今日的美國學校擁有2160名學生和250位教職員。）

meeting with an AmCham delegation concerned about TAS’s future. “They wanted to get our assurance that TAS would be able to run as usual,” says Chien. “We not only complied with that request, but also facilitated the school’s later move to its current site in Tianmu, where it was able to accommodate a larger enrollment.” (Today, TAS has a population of 2,160 students and 250 faculty members). TA S h a d b e e n o p e r a t i n g s i n c e 1949, starting with eight students

台北美國學校自1949年開始運作，最早有8名學生，就在向長老教會學校借來的一間地下教室上課。該校一直維持小規模招生，直到美軍顧問團在1950年代中期成立，美軍家眷前來台灣為止。不過隨著美軍在1979年離台，美國學校面臨法律地位問題，因為該校一直以美國國防部簽約學校的形式運作，在《中美共同防禦條約》的架構下獲得承認。美國商會和台灣當局合作—尤其是當時任職外交部的蔣孝嚴，透過由新成立的美國在台協會和中華民國政府達成的協議，協助美國學校解決這個問題。當時擔任美國學校業務經理的魏士羅表示，隨著美國終止駐軍而來的學生人口組成改變，讓美國學校得以轉型，「從滿足一般性就學需求的綜合性學校，轉變成大學預備學校」。魏士羅後來在退休前，升任副總校長。他說：「美國學校在70年代是一所優良學校，這項傳統延續到今日，滿足組成結構已變化許多的學生人口需求。」拜會錢復的商會代表團還表達另一項關切：美軍軍官

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in a classroom in borrowed space in the basement of a Presbyterian seminary. The enrollment remained small until the arrival of U.S. military families after establishment of the Military Assistance Advisory Group (MAAG) in the mid-1950s. But with the departure of the military in 1979, TAS faced a problem with its legal status, since it had been operating as a contract school to the U.S. Department of Defense, recognized under the U.S.-ROC Mutual Defense Treaty. AmCham worked with the Taiwan authorities, especially John Chiang of the Ministry of Foreign Affairs, to help TAS resolve the issue through an agreement between the newly established American Institute in Taiwan and the ROC government. The change in the composition of the student population with the end of the military presence allowed TAS to transform itself “from a comprehensive school suited to meeting the needs of a general enrollment into a college preparatory school,” says Ira Weislow, then the TAS business manager and later deputy superintendent before his retirement. “TAS was an excellent school in the 70's and continues the tradition today as it meets the needs of a much different student body.” The AmCham delegation that called on Fredrick Chien also expressed another concern: the possible effect

on the quality of life for foreigners caused by the closing of the U.S. military’s Officers’ Club and the enlisted personnel facility known as the China Seas Club. Prior to 1979, many civilian expats – including some business leaders, diplomats, missionaries, and journalists – were given honorary memberships in the military clubs, and the Officers' Club was used for many AmCham functions during that period. The ACC was already in existence on ZhongShan North Road Section 3, but its capacity was quite limited. AmCham Chairman Marinus “Dutch” van Gessel chaired the ACC’s expansion committee overseeing the search for a new location. With the help of the central and Taipei city governments, it was arranged for the ACC to move to larger premises at its present site, a piece of city-owned land below the Grand Hotel that had formerly been occupied by the China Seas Club. The early ACC menu heavily featured American-style items such as pot roast, meat loaf, chicken pot pie, fried chicken, Waldorf salad, muffins, and U.S. coffee. The club now serves a membership of 1,378 and is currently undergoing a third-phase redesign and reconstruction project that gives it the most modern and complete club facilities in Taipei. In the case of TYPA, a new nonprofit foundation was set up by AmCham's Youth Activities Committee,

俱樂部和又稱為中國海俱樂部的美軍人員使用設施關閉，對外國人生活品質可能造成影響。在1979年前，許多平民美僑（包括商界領袖、外交官、傳教士和記者）都獲得這些美軍俱樂部的榮譽會員資格，美國商會在那段期間的許多盛大集會都在美軍軍官俱樂部舉行。美僑俱樂部早就存在於中山北路三段，不過其容納量相當有限。美國商會會長范嘉書出任美僑俱樂部監督尋覓新址的擴展委員會主席。在台灣中央政府及台北市政府協助下，美僑俱樂部被安排遷到位於現址的較大房舍。那是位於圓山飯店下方的一塊市府所有地，過去曾是中國海俱樂部所在地。美僑聚樂部早期菜單內容偏重美式食品，例如燉肉、碎肉卷、雞肉派、炸雞、華爾道夫沙拉、馬芬蛋糕和美式咖啡。這個聚樂部現在有1378 名會員，目前正進行第三階段的重新設計和改建計畫，讓它成為台北最現代、設施最齊備的俱樂部。至於台北國際社區青年育樂活動中心基金會（TYPA），是由當時的美國商會青年活動委員會設立的非營利新基金會，由花旗銀行的溫克．威雷特擔任主

chaired by Citibank's Wink Willett, to carry on programs such as baseball and soccer leagues, Boy Scouts, and Girl Scouts that had previously operated under U.S. military sponsorship. Today’s TYPA still offers those programs, plus much more: music, dance, art, gymnastics, martial arts, a variety of sports, and a teen club. Other than providing a few people to serve on the initial boards of ICRT and TYPA (and coordinating with TAS and ACC through AmCham governors who also served on their boards), AmCham purposely stepped back once the basic goals of each project had been established. Weislow of TAS, now retired, credits AmCham’s efforts in support of the foreign community. “The Chamber's role during that period of time is probably unique. A non-governmental, volunteer organization turned a rather desperate situation into a functioning and secure American presence in Taiwan, with institutions that continue to support the foreign community in Taiwan today.” “It was a tough period, but the Chamber made the transition much smoother than it would've otherwise been,” adds Fredrick Chien, speaking as a government participant in that effort. “And we, on our part, did our best to make it possible for American expatriates to live here comfortably after derecognition.”

席，以推行棒球與足球聯盟、童子軍，以及女童軍等過去在美軍贊助下運作的計畫。現在的TYPA仍舉辦相關活動，另有音樂、舞蹈、藝術、體操、武術、各類運動，以及青少年俱樂部等項目。除了推派一些人擔任ICRT和TYPA最初的董事（還有透過也擔任美國學校、美僑俱樂部董事的美國商會理監事與這兩個組織進行協調）外，一旦各項計畫的基本目標建立後，商會就會刻意放手。現已從美國學校退休的魏士羅，肯定美國商會支持在台美僑的努力。他說：「商會在那段期間的角色，可能是獨一無二。一個由自願出力的志工所組成的非政府組織，化解了相當險惡的情勢，確保美國民間機構在台灣持續運作，而各個機構現在仍然持續支持台灣的外國僑社。」錢復以曾經參與協助美國商會的台灣官員身分補充說：「那是一段艱困的時期，不過美國商會讓過渡變得順利許多。對我們來說，我們竭盡所能，讓美國僑民在美國終止承認台灣後，得以在台安居。」

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Looking Back On Six Decades - Amcham Taipei's 60th Anniversary

1980s: Gearing up for High Tech BY JANE RICKARDS

merica’s switch of diplomatic recognition from Taiwan to China in 1979 c a u s e d Ta i w a n t o b e g i n the 1980s on a pessimistic note – but the island was on the brink of one of its most profound economic transformations. In this decade, it was to start to evolve from an exporter of lowend items like shoes and toys to one of sophisticated high-tech products. Political gloom at the beginning of this decade dampened the economy. By 1980, Taiwan had lost its membership in all major international organizations, including the World Bank and International Monetary Fund. Pessimism over these diplomatic setbacks rose further with the U.S.-PRC Joint Communique of 1982 in which the United States said it would gradually reduce the level of arms sales to Taiwan, provided that China’s intentions were peaceful. An angry Ministry of Foreign Affairs said the communiqué contradicted “the letter and spirit of the Taiwan Relations Act.” The “six assurances” that followed from the Reagan administration, including promises not to recognize Chinese sovereignty over Taiwan or consult Beijing over decisions on arms sales to Taiwan, did little to relieve the nation’s uneasiness. In addition, the global economy was engulfed in recession set off by the second oil crisis. Although Taiwan’s annual GDP growth rate between 1950 and 1990 had generally been in double digits, the economy grew by only 3.5% in 1982 and 4.10% in 1985. Compounding these challenges – but also providing one of the main drivers for the coming major economic shift – was the extreme pressure Taiwan was under both to open its import markets more widely and to alleviate problems caused by declining industries. Per-

The Hsinchu Science Park in 1980, before its opening in December of that year. The Park boosted the transition in Taiwan’s industries from labor-intensive products to high-tech. photo : cna

sistent large trade surpluses with the United States were intensifying friction between the two trading partners and placing heavy upward pressure on the value of the Taiwan currency. The trade gap in Taiwan’s favor was US$2 billion in 1980, then US$3.4 billion in 1981, before rising to US$10 billion in 1985. To seek to remedy this imbalance, Taiwan sent at least eight “Buy American” missions to the United States between 1978 and 1984, without much effect. American businessmen complained in the early 1980s about Taiwan’s high tariff barriers and demanded that Taiwan let its currency appreciate. Taiwan also needed to jump to a higher level of economic development in the face of growing competition from countries such as Indonesia, India, and China. It remained an export-driven economy, with overseas sales equal to around 60% of GDP in 1980, but as living standards rose (per capita GNP

had shot up from US$50 in 1950 to US$2,278 in 1980), so did labor costs. Labor-intensive industries such as garments faced shrinking profit margins as well as increasingly restrictive textile quotas in major markets. Moving upscale into more sophisticated industries was the obvious solution. In a landmark event, Taiwan in 1980 opened its first science park, in Hsinchu, inspired by the Stanford Research Park that nurtured California’s Silicon Valley. The Hsinchu site was chosen because it is close to the Industrial Technology Research Institute (ITRI), National Tsing Hua University, and National C h i a o Tu n g U n i v e r s i t y, b r i n g i n g together institutions of higher learning, research organizations, and industry to create synergies fostering innovation. Early advertisements in TOPICS to attract foreign investors to the Hsinchu Science Park stressed such incentives as a five-year business-income tax holiday, plus exemption from import duties and

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commodity taxes on machinery and equipment. Another attraction was the availability of workers with technical skills for wages equal to one-third of American levels. Several early entrants to the park included such American companies as Texas Instruments, which was involved in a venture for software design, and Varian Associates (which has since split into three companies), one of the first high-tech companies in Silicon Valley. By 1990, 80 domestic and 36 foreign companies (mainly from the United States) were operating in the park. Today the Hsinchu Science Park covers an area of nearly 1,400 hectares, including auxiliary sites in Yilan and Longtan, and for the past five years the companies in the park have annually generated combined revenues of over US$40 billion. The park has helped foster the development of some renowned global companies such as Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chip maker, which was founded in 1987. ITRI, Taiwan’s largest applied technology R&D institution, though created in the 1970s, rose to prominence in this decade and was instrumental in propelling Taiwan to its status as one of the four Asian Tigers (along with Hong Kong, Singapore, and South Korea). Over the years, ITRI has accumulated over 10,000 patents and assisted in the creation of over 165 start-ups and spinoffs. Some 70,000 former employees have gone on to become company

CEOs, according to the ITRI website.

Reversing the brain drain For decades, one of the Taiwan government’s biggest concerns was the “brain drain” in which Taiwan’s brightest students went abroad for graduate study, mostly to the United States, and then stayed abroad due to the greater job opportunities and higher pay scales. But by the 1980s it became clear that these Taiwanese professionals, by now seasoned academics, industrial researchers, and business executives, were a valuable resource that Taiwan could tap. One of the strategies in building the Hsinchu Science Park was to lure some of these talented individuals

back by offering them the chance – with the assistance of government seed money – to start up their own enterprises. A number of the early investors in the park were returned Taiwanese with experience at places like Bell Labs and IBM. K.T. Li, at this stage a Minister without Portfolio with responsibility for science and technology, made it his mission to persuade this kind of outstanding human capital to return. Undoubtedly the most prominent example was TSMC’s chairman and founder Morris Chang, who actually had never lived in Taiwan. In the 1940s he had gone to the United States from the China mainland, earned degrees in electrical engineering at M.I.T., rose through

At the Information Month exhibition in 1985, visitors show keen interest in a display of computer products from Acer. photo : cna

1980年代：迎向高科技（摘要） 1980年代初期的一些政治發展（例如1982年美中聯合公報承諾美國會逐漸減少對台軍售），造成經濟前景堪慮的陰鬱氛圍。全球性衰退讓情況雪上加霜。不過台灣正要開始轉型。長久以來對美的龐大貿易順差讓台灣面臨進一步開放進口市場，並使之自由化的壓力，同時其它東南亞國家和中國的廉價勞力，也對台灣構成產業升級的壓力。1980年新竹科學園區啟用是劃時代事件，台灣政府說服許多在海外工作的人才為台灣效力，扭轉長年的「人才外流」現象。這些人士中最有名的是張忠謀，曾任德州儀器高階主管。他創辦台積電，貢獻自己的可觀才能，開拓台灣如今名聞

遐邇的半導體產業。政府的政策也推動增加研發支出，其在台灣國內生產毛額的占比，從1978年0.7%，增至1990年的將近 1.9%。在此期間，1985年爆發歷來最嚴重的金融醜聞——十信風暴，數千名存戶失去存在由國民黨立委蔡辰洲掌控的兩家信用合作社的所有積蓄，雙雙暴露出金融體系缺失和最高層官員的貪腐。這是導致台灣政府在1987年解除戒嚴的數項因素之一。此事件引發的民怨促使反對運動人士敢於在成立新政黨仍屬違法的1986年創建民進黨。賦予銀行業和證券業財務自由化的3項關鍵法律頒布後，促成外匯管控在1987年解

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1981 May August

Nobel Laureate in Economics Milton Friedman speaks at AmCham meeting. Former astronaut Senator John Glenn attends AmCham meeting.

1982 June

The third nuclear power plant at Maanshan in southern Taiwan, under construction in the early 1980s.

1983

photo : cna

January

the ranks at Texas Instruments to become Group Vice President responsible for the company’s worldwide semiconductor business, and then served as President and COO of General Instrument. Li induced Chang to take the job of president of ITRI, and while still at ITRI Chang pioneered the concept of a semiconductor foundry by taking the leadership of TSMC from the company’s inception and guiding it to become one of the world’s most profitable semiconductor companies. Throughout this decade, Original Equipment Manufacturing (OEM) – making products under contract to another company for marketing under the purchasing company's brand name – became the most common business model for many Taiwanese companies, especially in electronics. Most of these operations were small

and medium-sized enterprises (SMEs) that specialized in the speed and agility of their production lines. The government strived to promote industrial upgrading. In 1982, it adopted a strategic industrial policy that earmarked preferential incentives for high-tech sectors. The eighth Four-year Economic Plan (19821985) sought to encourage R&D expenditure in the private sector, and the Ten-year National Science and Technology Development Plan (1986-95) set a goal of increasing spending on R&D to 2% of GDP (later analysis showed that the rate did rise from the 0.7% of 1978 to nearly 1.9% by 1990). The government increasingly welcomed foreign investment as a means of promoting industrial upgrading, with the United States and Japan as major sources of the investment that poured in.

March

Senator and 1964 presidential candidate Barry Goldwater holds a breakfast meeting with AmCham to discuss the U.S. relationship with Communist China.

Legislative Yuan amends Trademark Act, authorizing imprisonment for trademark infringement. Former Senator and 1972 presidential candidate George McGovern attends AmCham meeting.

1984 January March July

McDonald’s opens first store on Taipei’s MinSheng East Road. National Assembly elects President Chiang Ching-kuo to second six-year term. Legislative Yuan passes Labor Standards Act.

Looking Back On Six Decades - Amcham Taipei's 60th Anniversary

1 9 8 0 s : G e a r i n g u p f o r H i gh T e c h

1986 september October

Opposition politicians establish Democratic Progressive Party despite new party ban under martial law. Lee Yuan-tseh, a member of Academia Sinica, wins the 1986 Nobel Prize in chemistry.

1987 February 除，以及國際信用卡在同年進入台灣市場。同樣發生在此期間的還有台北世貿中心成立，麥當勞在台灣開設首家餐廳門市，以及台北市政府設立捷運工程局，負責捷運系統興建工程，由美商組成的團隊擔任總顧問。台北市美國商會越來越關切智慧財產權保護，因而召開了呼籲各界注意盜版問題的記者會，引發不少議論。台灣的人均收入在1990年就已超過8000美元，比中國大陸高出25倍。人均國民生產毛額也有大幅增長，從1950年50美元，增至1980年2278美元。台灣外匯存底也從1981年80億美元，增至1990年超過730億美元。台灣的經濟奇蹟已然上演。

July August november

Taiwan Semiconductor Manufacturing Co. (TSMC) established. Martial law lifted, the National Security Act promulgated, and foreign exchange controls relaxed. Council of Labor Affairs established. Red Cross starts accepting applications for humanitarian visits to China mainland.

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1 9 8 0 s : G e a r i n g u p f o r H i gh T e c h

lawmaker, and three senior govOther measures were taken ernment auditors were dismissed to liberalize. Minister of Ecofor providing advance warnnomic Affairs William Y.T Chao, ings of official inspections. The the former head of China Steel, blow to the image of the ruling worked to rationalize stateparty emboldened opposition polrun enterprises in the early iticians to form the Democratic 1980s. When he took office in Progressive Party in 1986. In elec1981, there were 15 governtions at the end of that year, the ment-owned corporations under DPP won more than 25% of the MOEA, some of them notovote, gaining 12 out of 73 seats in rious for their red tape and lax the Legislative Yuan. management. Chao warned that Also during that period, troubled state-run enterprises Taiwan gradually began to benthat continued to operate inefefit from the strong economic ficiently would not be propped recovery that began in the United up with government loans. He States in 1983. By 1986, Taimerged several of these comwan’s GDP growth was back in panies (such as China Steel’s double digits at 11.6%. The pace takeover of Taiwan Aluminum) of trade reform and other liberand shut a few others down. He alization quickened after 1986, also put an end to the practice and three key financial laws were of treating the chairmanships of enacted in the final years of the these companies as sinecures for decade. The Statute for Adminisretired generals. tration of Foreign Exchange was Chao also overcame strong The opening ceremony for Taiwan's first McDonald’s was passed in 1987, lifting forresistance from local business restaurant on January 28, 1983. First-day sales set a eign-exchange controls on trade to permit McDonald’s to set up world record at the time for a McDonald’s outlet. transactions and enabling private the first international-brand fastphoto : mcdonald's citizens to use and hold forfood operation in Taiwan. He eign currencies, although some argued that U.S.-style fast food restrictions remained on the perwas also a form of “technology” missible amount of foreign-exchange that Taiwan could learn from, and same year as the opening across town remittances. The Securities Exchange that McDonald’s would help raise of another leading business hotel, the Act of 1988 gave new impetus to the standards throughout the society for Grand Formosa Regent), the 34-story stock market and the new Banking restaurant and supply-chain manInternational Trade Building in 1987, Law of 1989-90 removed all interestagement, sanitation, and customer and the International Convention rate restrictions on loans and deposits, service. The first McDonald’s outlet Center in 1988. opening the way for the granting of opened in early 1983 on MinSheng The Exhibition Hall became home new private bank licenses in the early East Road near DunHua North Road, to such trade shows as Computex, 1990s. In 1989, the first internaand for a time its opening day receipts which grew into Asia’s largest comtional credit cards entered the Taiwan held the world record for one-day puter trade fair and one of the largest market. sales at a McDonald’s store. in the world, and the Taipei Cycle Before his death in 1988, PresiShow that attracted buyers from dent Chiang Ching-kuo had initiated around the globe. Taipei World Trade Center a number of political reforms, and his The mid-1980s also saw one of the successor, Lee Teng-hui, continued island’s worst-ever financial scandals, Symbolizing the continuing imporin that direction. The moratorium the so-called Cathay Affair involving tance of trade to the island was the on issuing new newspaper licenses irregularities at the Cathay Investment Taipei World Trade Center complex was lifted, for example, leading to and Trust Co. and affiliated Taipei at the corner of XinYi and Keelung the flourishing of the media industry. Tenth Credit Cooperative. Thousands Roads. The first building – a sevenThe government also responded to of depositors lost their savings, totaling story Exhibition Hall – opened in rising public concern about the envimore than US$100 million. The December 1985 to enable Taiwan to ronment by introducing stricter laws scandals exposed weaknesses in the play host to large-scale trade fairs. to control pollution, and steps were financial regulatory system and also That was followed by completion of taken to improve infrastructure. revealed official corruption. Cathay the other buildings in the complex: The Taipei City Government estabwas controlled by a Kuomintang the Grand Hyatt Taipei in 1986 (the

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lished a Department of Rapid Transit Systems (DORTS) to assume responsibility for construction of a Mass Rapid Transit (MRT) system, which had been planned as far back as the 1970s. DORTS hired American Transit Consultants (ATCF), a consortium formed by Bechtel, Kaiser Engineers, and Parsons Brinkerhoff, to serve as the general consultants on the project, and in 1988 a French company, Matra, won the contract to build the Muzha line. By 1989, Taiwan was still running a sizeable trade surplus with the United States, but the amount had fallen to US$10.4 billion from the record US$16 billion in 1987. One reason was Taiwan’s efforts to reduce tariffs, which by the end of 1988 had declined to an average of 5.6% from a level of 14.4% earlier in the decade. Washington was also pleased with the lessened Central Bank intervention to control exchange-rate fluctuations. As a result, the New Taiwan dollar appreciated against the U.S. dollar from a rate of 40:1 in 1985 to 25.6:1 by the end of 1989, posing major challenges for exporters on how to remain competitive. The many longstanding trade issues settled during this period included market access for Ameri c a n b e e r, w i n e , c i g a r e t t e s a n d turkey, along with increased opportunities for American banks and insurance companies. Among the financial institutions that entered the market (many of them later merging or departing) were Aetna, Bankers Trust, Chemical Bank, Continental Illinois Bank, First National Bank of Boston, Irving Trust, Manufacturers Hanover, Marsh & McLennan, and Merrill Lynch. In the 1980s, Taiwan received frequent visits from prominent U.S. political figures, and many of them agreed to speak at AmCham luncheon meetings. The list of Senators includes Frank Church, John Glenn, Orrin Hatch, Richard Lugar, Frank Murkowski, Jay Rockefeller, and Strom Thurmond. Nobel Laureate economist Milton Friedman was

another speaker. Also noteworthy is that the first woman to serve on the AmCham Board, Dolly Lo of Baker & McKenzie, took her seat as a Governor in 1984. During this decade, protection of intellectual property rights was an increasing concern of AmCham members. Earlier problems with book pirating paled compared with the growing amount of commercial counterfeiting of products ranging from watches to name-brand garments. The Chamber decided to go public with its concerns by publishing a position paper and holding a press conference, but it was worried, in the words of former Chairman Robert Parker, that “our criticism of the ROC government’s enforcement of intellectual property rights would not be received in the constructive manner that we sought.” Parker sought out a high-ranking official to review the draft of the position paper over a private breakfast. “I asked with some trepidation what he thought,” Parker recalls. “To my surprise, he replied: ‘Could you be a little tougher on the judiciary?’ We revised the draft accordingly, of course, and I promised to keep his suggestion confidential.” The press conference was well attended by local media, and TV stations filmed a table where AmCham had lined up genuine products and locally made copies side by side. Some government officials were reportedly outraged by AmCham’s “troublemaking,” but Premier Y.S. Sun took to heart the Chamber’s advice that counterfeiting was a real problem that was damaging Taiwan’s international image. What followed were the first steps toward passing stricter laws and tightening IPR enforcement, though the issue persisted for decades. By 1990, per capita income had exceeded US$8,000, 25 times higher than mainland China’s. Taiwan’s foreign exchange reserves had increased from US$8 billion in 1981 to over US$73 billion in 1990. Taiwan’s economic miracle had taken place.

1988 January

President Chiang Ching-kuo dies and is succeeded by Vice President Lee Teng-hui. Ban on new publications lifted, leading to rapid increase in number of newspapers.

October

President Lee is guest speaker at joint Double Ten dinner of AmCham and American University Club.

1989 First international credit cards enter Taiwan market.

March july

President Lee makes four-day visit to Singapore. Direct telephone links with mainland China established.

1990 January

February March June

Stock market crashes after long period of frenzied speculation earned Taiwan the title of “Republic of Casino.” First DPP speaker addresses AmCham membership luncheon. National Assembly elects Lee Tenghui as eighth-term president of the Republic of China. Council of Grand Justices mandates that senior parliamentarians elected in the 1940s retire by Dec. 31, 1991. Reporters from mainland China permitted to visit Taiwan for newsgathering.

October

National Unification Council established.

Statistical Snapshot

Population Ecnomic growth GDP Per capita GNP Unemployment Exports Imports Forex reserves Private cars Univ. students

1985 19.3 million 4.10% US$63.1 bn US$3,352 2.91% US$30.82 bn US$20.14 bn US$22.56 bn 830,000 429,000

1990 20.4 million 6.90% US$103.3 bn US$8,339 1.67% US$67.43 bn US$54.79 bn US$72.44 bn 2.2 mn 577,000

sOURCES: CEPD

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Looking Back On Six Decades - Amcham Taipei's 60th Anniversary

1 9 8 0 s : G e a r i n g u p f o r H i gh T e c h

2011/9/30 7:10:10 AM

1990s: Opening the Market BY JANE RICKARDS

he 1990s witnessed a remarkable migration of Taiwanese companies overseas. Manufacturers of low-end items such as textiles, footwear, and simple electronics, lured by cheaper labor, started moving their production lines to Southeast Asia and China in the late 1980s. Meanwhile, Taiwan’s top-end tech firms expanded their global presence. Politically, Taiwan saw its first direct presidential election in 1996 amid a growing sense of a unique Taiwanese identity among voters. This trend was to complicate economic relations with China in the second half of this decade, as President Lee Teng-hui imposed a “Go Slow, Be Patient” policy banning investments in the mainland in key high-tech areas or any ventures exceeding US$50 million in value. By 1993, investment had increased dramatically in countries such as China, Malaysia, the Philippines, Thailand, Vietnam, and Indonesia, with around

China's Wang Daohan (left) and Taiwan's Koo Chen-fu shake hands before the start of their historic cross-Strait talks in Singapore in 1993. photo : cna

10,000 mainly small and medium enterprises relocating to Southeast Asia and China. Meanwhile the U.S share of the trade was declining. By 1991, the United States was taking up only 28.9% of Taiwan’s exports. Just a few

years before, the figure had been 48%. While the numbers of manufacturing jobs rose from 2.8 million in 1981 to 3.5 million in 2000, the sector’s share of total employment decreased in the same period from 42.4% to 37.2%.

1990年代：開放市場（摘要） 1990年代台灣企業大舉移往海外。受到廉價勞工吸引，紡織、鞋類和陽春型電子產品等低價品的製造業者在1980年代末期，開始將生產線遷往東南亞和中國。在此同時，對美貿易占台灣對外貿易的比重下滑。美國在 1991年只佔台灣出口的28.9%；不過就在數年前，這個數字曾達到48%。製造業工作機會也減少，同期間的服務業工作機會則增加。兩岸經濟關係的萌芽階段適逢兩岸貿易急遽成長，台灣政府所採取的回應，就是在1991年成立「行政院大陸委員會」，以及半官方談判機構「海峽交流基金會」。台北和北京的兩位首席談判代表—辜振甫和汪道涵， 1993年在新加坡舉行會談，雙方在通郵之類的實際議題上達成協議。台灣也在1991年成為「亞太經濟合作論壇」成員，和東南亞的貿易關係蓬勃成長，這是因為當時的總統李登輝推行「南進」政策。與美國的關係依然重要，美國仍是台灣的最大出口市場，台美在1994年簽署「貿易暨投資架構協定」，進一步拓展貿易，同時台

北市美國商會首度以單一團體（不與其他團體同行）的名義前往華府進行「叩門之旅」。此時國際貿易成了財經商業界的焦點，政治方面則有李登輝主導的務實外交政策，伴隨自1993年開始的重返聯合國行動。 1990年代的一個重大議題，就是台灣爭取「關稅暨貿易總協定」及其後繼的「世界貿易組織」會員資格。北京堅持中國應先加入，台灣等到2002年才獲准進入，不過台灣和其它WTO成員國的談判在1990年代就全部完成。台北市美國商會自1994年起，即將促成台灣加入 WTO列為優先要務，並在一年一度華府叩門之旅中代表台灣進行遊說，廣泛為台灣爭取WTO會員資格。1996 年，當時商會會長孟克文在美國眾議院歲入委員會的貿易小組委員會作證時，就表達了商會強烈支持台灣加入 WTO之意。由於轉向以服務業為主，台灣在整個1990年代都能達到國內生產毛額每年平均成長6.42%與低失業率。人均國民生產毛額在1995年就已超越1萬美元。這段期間的

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Low-end manufacturing decreased most dramatically; footwear exports, for example, dropped from US$3.9 billion in 1988 to US$400 million in 2000. At the same time, service jobs jumped from 2.6 million to 5.2 million between 1981 and 2000, while their share of total employment rose from 38.3% to 55%. Groundbreaking changes were taking place in the economic relationship with China. The Cabinetlevel Mainland Affairs Council was created in January 1991 to take charge of overall planning, coordination, and implementation of crossStrait policies. The Straits Exchange Foundation (SEF) was established months later with a semi-official status that allowed it to negotiate agreements and consult on technical and business matters with China while bypassing issues of sovereignty. Beijing soon afterward set up its counterpart Association for Relations Across the Taiwan Strait (ARATS), showing it was also open to the idea of interactions without getting into the thorny issue of Taiwan’s status. By 1992, Taiwanese were taking an average of 1 million trips to China each year. Following the formation of SEF and ARATS, talks between their two chief negotiators, Koo Chen-fu and Wang Daohan, were able to take

Statistical Snapshot

Population Ecnomic growth GDP Per capita GNP Unemployment Exports Imports Forex reserves Private cars Univ. students

1995 2000 21.3 million 22.2 million 6.40% 5.80% US$274.72 bn US$326.2 bn US$13,115 US$14,906 1.79% 2.99% US$113.34 bn US$151.95 bn US$104.01 bn US$140.73 bn US$90.31 bn US$106.74 bn 3.8 mn 4.6 mn 751,000 1 mn

1991 January

Mainland Affairs council created. Executive Yuan approves NT$8.2 trillion budget for Six-year National Development Plan.

March

Straits Exchange Foundation established to handle people-topeople contacts with China.

April

Following approval by National Assembly, President Lee abolishes “Temporary Provisions” effective “During the Period of Communist

sOURCES: CEPD

Rebellion,” restoring suspended portions of Constitution and paving

place in Singapore in 1993, where the two sides reached agreements on practical issues such as the exchange of mail. The Kuomintang maintains the two sides also reached an oral consensus that Taiwan and the mainland were part of a loose concept called “one China,” while agreeing to disagree on its precise definition. The DPP denies this consensus exists. Indirect trade with China, most of it through Hong Kong, was growing rapidly. By 1991, two-way trade with Hong Kong had reached US$5.8 billion, up 44% from the year before, and by 1993 the Hong Kong trade figure had surpassed US$20 billion. Most exports to China were supplies for Taiwan-invested plants on the mainland. Those operations began to

way for direct election of President.

June

15 banking licenses issued, ending moratorium on establishment of new banks.

november december

Taiwan joins Asia-Pacific Economic Cooperation (APEC) forum. “Senior” parliamentarians forced to retire from office.

1992 July

Legislative Yuan passes the Act Governing Relations Between Peoples of the Taiwan Area and the Mainland Area.

August

Taiwan Garrison Command, the chief internal security agency, disbanded.

november

U.S. approves sale of 150 F-16A/B jet fighters.

december

U.S. Trade Representative Carla Hills visits Taiwan.

Looking Back On Six Decades - Amcham Taipei's 60th Anniversary

1990s: Opening the Market

1993 重大國內經濟發展，包括1991年6月核發執照給15家新銀行，結束20年來暫停新銀行設立的禁令。行政院1991年通過「國家建設六年計畫」的新台幣8.2兆元預算，改善基礎設施，並提高對運輸、能源和電信的投資，贏得合約的部分包商是美國企業。1995年，行政院宣布發展台灣為亞太營運中心的計畫，由美國顧問公司麥肯錫提供第1份可行性研究報告。政治上，在選民的台灣主體意識不斷增強的氛圍下，1996年舉行首次總統直選。兩岸關係在1990年代後半段越來越緊張，最初是因李登輝1995年6月訪美時在母校康乃爾大學發表演說所引起。北京震怒，將海基、海協兩會談判延期，並朝台灣海域試射飛彈。中國在1996年台灣首次總統直選期間，再度試射飛彈。李登輝在這場選舉中贏得可觀的54%選票。兩岸談判代表辜振甫和汪道涵後來在1998年於上海見面，雙方討論並無明顯進展。李登輝在1999年將兩岸關係描述為「特殊國與國關係」，被激怒的北京再度延後兩會談判。1990年代後期較正面的發展是，台灣在相對毫髮無傷的情況下安然度過亞洲金融風暴，台北捷運系統開始營運，手機通訊市場開放遠傳、台灣大哥大等民間業者加入，結束中華電信在台灣電信服務業的獨占地位。

April

Koo-Wang Talks, high-level but unofficial cross-Strait negotiations, take place in Singapore.

1994 February september

AmCham relaunches TOPICS as glossy monthly magazine. Taiwan and U.S. sign Trade and Investment Framework Agreement (TIFA). AmCham Taipei holds first Doorknock to Washington.

december

Chen Shui-bian becomes first DPP candidate elected mayor of Taipei. U.S. Transportation Secretary Frederico Pena visits Taipei.

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1990s: Opening the Market

On a 1996 visit, Microsoft's Bill Gates (center) is met by Acer founder Stan Shih (left) and Economic Affairs Minister Chiang Pin-kung (right). photo : cna

include investments from some major Taiwanese companies. Chung Shing Textile took a US$2 million share in a garment plant in Shanghai in 1992, while President Enterprises that year announced plans for four food processing projects in China. Trade relations were also growing with Southeast Asia. In 1991, Taiwan became a member of the Asia Pacific Economic Cooperation forum (APEC), and trade with the ASEAN nations reached US$15.6 billion in 1993. ASEAN trade grew by double digits almost every year throughout the 1990s, culminating in record two-way shipments valued at US$39 billion in 2000. President Lee promoted a “Go South” policy to promote Taiwanese investment in Southeast Asia, and made several visits to the region. Throughout the 1990s, the United States remained Taiwan’s largest e x p o r t m a r k e t a n d m o s t i m p o rtant trading partner. Exports in 1993 had increased to US$23.5 billion, a nearly 14-fold increase from the US$1.7 billion of 1973. Imports had risen 16-fold, from US$1 billion to US$16.7 billion. The United States was also Taiwan’s second largest foreign investor next to Japan. The trade surplus in Taiwan’s favor, previously a source of contention, had diminished to US$6.7 billion by 1993, and in response to U.S. complaints,

Taiwan launched a major campaign in 1992 to curb IPR abuses. It concluded bilateral copyright agreements with the United States and enacted stiffer patent and trademark laws. In 1994, Taiwan and the United States signed the Trade and Investment Framework Agreement (TIFA) for further expanding trade, and AmCham held its first solo Doorknock trip to Washington.

Pragmatic diplomacy Complementing these trends was President Lee’s policy of pragmatic diplomacy. Taiwan ended its “Fight Communism and Resist Russia” policies, opening trade relations with five Eastern European countries and in September 1989 sending a major economic delegation to Siberia. Lee also sought to have Taiwan admitted in the United Nations in 1993, an annual but unsuccessful ritual that lasted until 2009. Taiwan’s status as a tech-exporting island continued to swell. In 1993, Taiwan’s ICT sales propelled Taiwan from seventh to fifth place among the world’s computer industries, jumping past France and Singapore. The nation at this time ranked no. 1 in the world for computer monitors and no. 3 for personal computers, just past the United States and Japan. Acer in 1991 was the world’s 13th

largest maker of PCs (today it is the second largest) and was a leader of the brand-promotion movement in Taiwan. More than half its PC systems sold in 1991 were under its own brand. Chairman Stan Shih championed the “globalization” of operations, setting up production units in the United States and the Netherlands, and maintaining 52 offices in 16 countries. A major issue during the 1990s was Taiwan’s efforts to gain membership in the General Agreement on Tariffs and Trade (GATT) and then its successor organization, the World Trade Organization (WTO). Although Beijing’s insistence that China enter first kept Taiwan waiting until 2002 to gain entry, its negotiations with WTO member countries were all completed during the 1990s. AmCham made Taiwan’s WTO entry a priority from 1994 and lobbied on Taiwan’s behalf during its annual Doorknock. In testimony before the Trade Subcommittee of the House of Representatives Ways and Means Committee in September 1996, AmCham chairman Christian Murck s a i d : “ A m c h a m Ta i p e i s t r o n g l y encourages U.S support for prompt and orderly accession of Taiwan to the WTO, as soon as the few remaining issues in the U.S.-Taiwan bilateral trade relationships are satisfactorily resolved.” Murck also noted that AmCham Ta i p e i h a d b e e n a n a c t i v e s u p porter of the U.S.-Taiwan bilateral negotiations on WTO accession, regularly providing input from over 20 industry committees to USTR, AIT, and the Taiwan government. He said the United States had requested and achieved commitments on thousands of tariff lines, and major improvements had been made regarding Ta i w a n ' s l e g a l f r a m e w o r k a n d enforcement of IPR. “The process of deregulating the telecommunications monopoly and opening the industry to foreign investment has begun,” he added. Murck urged the House committee not to allow Taiwan’s WTO entry to be politicized.

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1995 January

Executive Yuan approves plan to develop Taiwan into an Asia-Pacific Regional Operations Center (APROC).

March

National Health Insurance program inaugurated.

June

President Lee visits U.S. for reunion at alma mater, Cornell University.

1996 March

Vincent Siew, then chairman of the Council for Economic Planning and Development, on his way to an APEC leaders' forum in Seattle as President Lee Teng-hui's representative. photo : cna

In the run-up to WTO accession, Taiwan liberalized regulations in a number of other areas that had been trade irritants. For example, it privatized the tobacco and liquor monopoly, giving full access to foreign products, and eased restrictions on the ability of foreign lawyers to practice in Taiwan. Throughout the 1990s, Taiwan was still able to achieve average annual GDP growth of 6.42% and low unemployment due to the shift to services. By 1995, per capita GNP had surpassed US$10,000. The growing affluence encouraged investments in the retail sector. Costco, Wellcome, hypermarkets such as Carrefour from France, and several convenience-store chains expanded rapidly. Foreign food companies like Kraft, Pepsico, Coca-Cola, Mars, and Nestle enjoyed increasing acceptance among local consumers, as did cosmetics and consumer products companies such as Procter & Gamble, Gillette (now part of P&G), Johnson & Johnson, S.C. Johnson, and Colgate-Palmolive through its Hawley & Hazel joint venture. Major domestic developments in this period included the issuing of 15 new banking licenses in June 1991, ending a 20-year moratorium on new banks. Consumers felt the impact of better service, more flexible interest rates, and an overall expan-

sion of credit. By 1994, 39 foreign banks from 19 countries were on the island. Trading volume on the stock exchange in 1994, at US$715 billion, was the fourth highest in the world. On a good day, it exceeded Tokyo to rank temporarily in third place. The Executive Yuan approved a NT$8.2 trillion budget in 1991 for the Six-Year National Development Plan for improving infrastructure and increasing investment in transportation, energy, and telecommunications. Among the contracts to American companies were a US$123 million project awarded to Babcock and Wilson for desulfurization systems for thermal power plants and US$65 million to the General Railway System for signaling systems for the Nankang subway line.

SEPTEMBER DECEMBER

AmCham Taipei publishes first Taiwan White Paper. Philip Lader, head of U.S. Small Business Administration, visits Taiwan.

1997 SEPTEMBER October

AmCham Taipei publishes bilingual version of Taiwan White Paper. Steven Chu, member of Academia Sinica (and now U.S. Secretary of Energy) wins Nobel Prize in physics.

1998 Cellphone market opened to private carriers, ending Chunghua Telecom’s monopoly on telephone service.

October

Bill Richardson, U.S. Secretary of Energy, visits Taiwan.

1999 SEPTEMBER

Taiwan hit by most devastating earthquake in 60 years, taking over 2000 lives.

2000 March

APROC plan I n 1 9 9 5 , t h e E x e c u t i v e Yu a n announced plans to develop Taiwan into an Asia Pacific Regional Operations Center (APROC). Vincent Siew, chairman of the Mainland Affairs Council, discussed the idea in a speech to a joint conference of what is now the U.S-Taiwan Business Council and its counterpart, the ROC-USA Business Council. (Throughout the Nineties, these conferences served as an opportunity for high-level bilateral dialogue, often bringing U.S Cabinet

In atmosphere of Chinese military intimidation, Lee Teng-hui elected President with 54% of the vote in first direct presidential balloting.

May

DPP’s Chen Shui-bian elected president in Taiwan’s first transfer of political power from one party to another. Corning begins construction of glasssubstrate plant in Tainan to support Taiwan’s flat panel display industry. AmCham relaunches its website: www.amcham.com.tw

SEPTEMBER DECEMBER

AmCham celebrates its 50th anniversary U.S. Transportation Secretary Rodney Slater visits Taiwan.

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1990s: Opening the Market

officers to Taiwan). The U.S. consulting firm McKinsey and Co. was commissioned by the Council of Economic Planning and Development (CEPD) to do the first feasibility study on APROC. McKinsey concluded that Taiwan’s greatest potential as a regional operations center lay in the areas of highvalue-added manufacturing and R&D, and that the island could also become a regional hub for sea transportation and services. APROC was a constant theme in official speeches during this period, but it proved impossible to implement in the absence of direct transport links with China. The latter half of the decade saw increased tensions with China, first sparked by a June 1995 visit that the United States allowed President Lee to make to the United States to speak at his alma mater, Cornell University. Beijing was irate and punished Taiwan by postponing SEF-ARATS negotiations, and test-firing missiles into Taiwan’s waters, an action it was to repeat in 1996 in a serious military crisis during Taiwan’s first direct presidential election, which Lee won handsomely with 54% of the vote. Cross-Strait negotiators Koo and Wang finally met in Shanghai in 1998 with little discernible progress, and Beijing suspended talks again in 1999, infuriated at Lee’s 1999 characterization of cross-Strait relations as a “special state-to-state relationship.” One of Taiwan’s triumphs in this period was that it was one of the few Asian countries to emerge largely unscathed from the 1997-1998 Asian financial crisis, although its GDP growth did drop from 6.7% in 1997 to 4.6% in 1998 and its financial sector suffered a little. One reason why Taiwan was relatively well off was the government’s hands-off attitude toward banks; unlike some other countries in the region, Taiwanese banks did not make excessive loans to companies at the directive of government officials. Most Asian countries experienced heavy devaluation of their currencies and falling stock prices. South Korea and Thai-

The MRT's Muzha line went through a difficult start-up period before it went fully operational. photo : cna

land needed IMF help when they were unable to repay foreign debts. Domestic developments in the latter half of the decade included the opening of the cell phone market to private carriers such as Far EasTone and Taiwan Mobile, ending Chunghwa Telecom’s monopoly on Taiwan’s telephone services. The National Health Insurance program was launched in 1995, bringing universal coverage to Taiwan citizens and increasing business opportunities for the pharmaceutical and medical device sectors (though budget constraints in the following decade led to low reimbursement prices that discouraged the entry of innovative drugs and medical devices). T h e M u z h a M RT l i n e s t a r t e d running in 1996 after a three-year delay, followed by the Danshui line in 1997. Disputes between Matra, the French company responsible for the Muzha line core systems, and the Taipei City government over performance and payment issues went to arbitration and later to the courts and undermined international business confidence in Taiwan for a time. The city blamed Matra for the delay and withheld payment; Matra said late completion of civil engineering work by upstream contractors forced it to be behind schedule. An arbitration board and courts at all levels have since ruled in favor of Matra, with

the Supreme Court ruling in 2000 that the city should pay the company US$34 million. Early in the decade, the government approved plans to build a 345-kilometer-long High Speed Rail system. A tender invitation for private participation and construction of the US$18-billion system was won in 1997 by a local group, the Taiwan High Speed Rail Consortium. The decade ended on a tragic note with Taiwan’s worst-ever earthquake in September 1999, which killed over 2,000 people. When power was cut off at the Hsinchu Science Park, halting semiconductor production for several days, the impact was felt on the stock exchange in the United States – an indication of how dependent international companies had become on Taiwan as a source for key components. For companies like Intel, IBM, Hewlett-Packard, and Apple, Taiwan had become an indispensable part of their supply chain, and their annual procurement from the island could reach into the billions of dollars. At AmCham, Lynn Sien, the president from 1993 to 1999, created a separate membership services department, revamped the antiquated financial/accounting and administration systems, and began reaching out to young professionals. During her tenure, membership increased from 650 individuals to nearly 1,000.

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Looking Back On Six Decades - Amcham Taipei's 60th Anniversary

2000s: Coming to Grips with China BY JANE RICKARDS

n the first decade of the new millennium, Taiwan was affected by two deep-seated trends that pulled the island in diametrically opposite directions. Under the influence of the proindependence Democratic Progressive Party (DPP) administration that came to power in 2000, Taiwanese became increasingly conscious of having a cultural and political identity separate from that of the mainland. But at the same time, economic forces were bringing the two sides of the Taiwan Strait closer than they had been since the Kuomintang’s retreat from the mainland in 1949. The pro-independence stance of the DPP under President Chen Shui-bian elicited a strong reaction from Beijing and made for periods of high tension during the decade. After Chen won a second term in 2004 by a slim margin, Beijing enacted an Anti-secession Law in 2005, codifying its stance that a declaration of independence by Taiwan would be cause for war. But despite the frigid political relations, cross-Strait economic ties grew much closer after Chen replaced former President Lee’s “Go Slow, Be Patient” policy with one of “Active Opening, Effective Management.” That approach expanded the types of high-tech business permitted to operate in China to include production of notebooks and other personal computers. It also allowed listed companies to make investments in China of up to 40% of their net worth. A watershed was reached in 2002 when China took over from the United States as Taiwan’s top export market. And as the many Taiwanese-invested companies in China brought over more and more managers and technicians to work there, it was soon reported that an estimated one million Taiwanese

The Taiwan delegation to agricultural talks leading up to Taiwan's accession to the WTO. photo : cna

were living on the mainland. By 2005, a Lehman Brothers study found that two Taiwan companies – Hon Hai Precision Instruments (also known as Foxconn) and Quanta Computer – ranked as China’s largest and second largest exporters. Also in that year, China took almost 40% of Taiwan’s total exports. By 2007, Taiwan was believed to be the second-largest investor in China next to Hong Kong, and the mainland had become the island’s most important trading partner. By then, official accumulated investment approved since 1991 amounted to US$58 billion, but economists put the real figure at close to US$150 billion, since much of the investment was routed through third countries. Taiwanese companies at this time were said to be making around 70% of China’s ICT products. The U.S. market remained a key end destination, but instead of shipping as

much directly to the United States, Taiwanese companies were now sending components and materials to China for assembly into finished products, which were then exported from Chinese ports. The cross-Strait political tensions meant that it was still impossible to set up direct transport links, although the Chen administration managed to establish “mini links” from the offshore islands of Kinmen and Matsu in 2001 and later arranged for charter flights to bring Taiwanese businessmen back from China for the Lunar New Year and other holidays. Normally, however, travel from Taipei to Shanghai entailed changing planes in Hong Kong and took most of a day, and foreign and local business executives chafed at the waste of valuable time. The inability to move people and goods quickly across the Strait accelerated the exodus of production lines to China, exacerbating the

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hollowing-out effect in Taiwan. The stock market was also affected by the cross-Strait deadlock. Transactions on the Taiwan Stock Exchange in 2001 reached US$994 billion, double the level of Hong Kong and ten times that of Singapore; by the end of 2005, the figure was US$433 billion, less than half that of Hong Kong. This drop was partially due to the collapse of the tech bubble, but also because of political uncertainties. Around the middle of the decade, AmCham started lobbying strongly for direct cross-Strait transport links as a means of strengthening the Taiwan economy and preventing it from becoming marginalized within the region. Richard Vuylsteke, then the AmCham president, notes that the Chamber felt it had to tackle the issue despite its political sensitivity. “For many years, our top priority was to emphasize the importance of crossStrait links – an easy flow of people, goods, services, and investment – especially direct air routes,” he said.

Entering the WTO One development welcomed by both the KMT and DPP – and one that AmCham had lobbied hard for over the years – was Taiwan’s January 2002 accession to the World Trade Organization (WTO). Entry to

The pilot of the first cross-Strait chartered flight to land in Taiwan waves after arrival. photo : cna

the WTO, under the name of the Customs Territory of Taiwan, Penghu, Kinmen and Matsu, was finalized after the Legislative Yuan, at the stroke of midnight in the final session of 2001, passed the 14 remaining and often controversial bills (including a lawyer’s law and a construction law) needed to comply with WTO requirements. Among the results of Taiwan’s joining the WTO was the opening of the market to large-sized motorcycles, to the benefit of U.S. manufacturer Harley Davidson. Following the bursting of the

tech bubble in the United States, Taiwan’s economy went into recession, with 2001 GDP growth of -1.65%. In 2003, as the SARS virus broke out, the island also posted relatively slow growth of 3.67%. Losses of manufacturing jobs led to a rise in unemployment from 1.45% in 1993 to 5.17% in 2002. In addition, the divided government – with a DPP president frequently blocked by a KMT legislative majority – led to administrative gridlock. The most notable example was a US$6.5 billion U.S. arms sale offer in 2001 that did

2000年至今: 聚焦兩岸關係（摘要） 2000年，傾向台獨的陳水扁當選總統，強化台灣不同於中國的文化認同。兩岸間的政治緊張升高，但在陳水扁於2001年減少赴大陸投資的限制，並允許高科技業登陸後，經貿往來使兩岸關係遠比過去50年都更為緊密。最關鍵的時點出現在2002年，中國取代美國成為台灣最大出口市場。截至2007年，台灣在中國的投資額據信只輸給香港，計入第三地轉投資的金額後，台商總投資金額高達1500億美元。在此期間，兩岸的政治對立代表定期海空航運仍難以實現，交通運輸的瓶頸導致更多廠商移往對岸。2005年前後，台北市美國商會開始強力倡議兩岸直航，相信適足以強化台灣經濟、避免區域邊緣化。 2002年，台灣加入世界貿易組織（WTO）。同一時間，1990年代末期萌芽的TFT-LCD平面顯示產業也開始快速發展；2010年之前，台灣已經成為全球第二大的平面顯示器生產國。而美商康寧玻璃決定於台南

及台中設廠以就近供應台灣廠商，使總投資額突破20 億美元，康寧也成為對台單項投資金額最高的美商。陳水扁政府也推動金融改革以解決國內銀行家數過多的問題；2006年後，跨國銀行業者開始積極參與台灣市場，使得銀行業進一步整併、改善體質。2000年至 2009年間，多個政府機關掛牌運作，包括2004的金融監督管理委員會，2006年的國家通訊傳播委員會；另外，台北101大樓於2004年完工，國民年金制度2005年上路，台灣高鐵則在2007年營運。國民大會2005年廢除，立法院席次則在2008年減半至113席。2008年，時任國民黨主席的馬英九當選總統，國民黨也維持國會過半席次。馬政府的政策反映中國已經成為台灣最重要的經濟伙伴。兩岸定期航班在2008年底上路，來台中國觀光客人數2010年已達160萬人次，較2009年增加70%。2010年，兩岸正式簽署類似自由貿易協定的經濟合作架構協議（ECFA），而台灣在退出聯合

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not gain Taiwan legislative approval until 2008. Taiwan’s long delay in completing this deal damaged its credibility in Washington. Despite these obstacles, the Execu t i v e Yu a n i n 2 0 0 2 a p p r o v e d a Challenge 2008 National Development Plan that aimed to transform Taiwan into a “Green Silicon Island” and focused on building a knowledge economy with environmental sustainability. One element of this policy was establishment of the Central Taiwan Science Park in Taichung, which held its groundbreaking ceremony in 2003. By 2007, companies in the park had generated sales of US$8.62 billion. As of 2008, 91 companies and two research institutions had committed to locating there. The Southern Science Park in Tainan, established in 1996, also played a prominent role.

The TFT-LCD flat panel display industry, which started in the late 1990s, really took off in this decade. Revenues reached US$35 billion and Taiwan accounted for 45% of world capacity by 2007, according to DisplaySearch. Taiwanese companies such as AU Optronics, formed in 2001, became world players. In recognition of Taiwan’s strategic importance in this industry, Corning, a global leader in specialty glass, in 2000 began construction of a glass-substrate plant in the Tainan Science Park to supply the Taiwanese panel makers. A second Corning facility in the Central Taiwan Science Park had its grand opening in 2006. The investments of more than US$2 billion made Corning the largest single U.S. investor in Taiwan. The Chen administration also sought to consolidate the financial sector, long beset by the presence of too many banks. Among the major deals were Cathay Financial Holding’s acquisition of the United Wo r l d C h i n e s e C o m m e rcial Bank in 2003 and Fubon Financial Holding’s acquisition of the Taipei Bank in 2005.

2001 January

Construction of fourth nuclear power plant resumed after Council of Grand Justices finds administration’s halting of work on the plant to be unconstitutional.

2002 January

May

Taiwan enters World Trade Organization (WTO) as Customs Territory of Taiwan, Penghu, Kinmen and Matsu. The Executive Yuan approves Challenge 2008 National Development Plan,which aims to transform Taiwan into a “green silicon island.”

2003 April October

First outbreak of SARS in Taiwan reported. Soong Mayling (Madame Chiang Kaishek) dies in New York at the age of 106.

2004 January March

July

Second North-South freeway, the Formosa Freeway, opens to traffic. Chen Shui-bian and running mate Annette Liu elected to second term after controversial “bullet-gate” assassination attempt in Tainan. Cabinet-level Financial Supervisory Commission established.

Looking Back On Six Decades - Amcham Taipei's 60th Anniversary

2000s: Coming to Grips with China

2005 The High Speed Rail has greatly shortened north-south travel times on the island.

June

photo : cna

國後，首度有機會在2009年與2010年以觀察員身分出席世界衛生大會（WHA）。 2009年，多家跨國保險業者陸續決定退出台灣市場；同年，美國政府終於決定將台灣移出特別301觀察名單，顯示台北市美國商會常年的呼籲確有根據。商會另一項倡議也終於成真，即台灣加入世貿架構下的政府採購協定（GPA）。莫拉克風災造成近七百人死亡、數千人無家可歸，商會會員的捐款與物資達49億新台幣。2009年年底之前，政府宣布台灣已經成為資通訊（ICT）產業的全球第二大製造國；然而，雖然經濟動能仍強，但台灣的人口老化與出生率日降也是事實。為降低台灣對高科技產品出口的依賴，馬政府重點培植六大新興產業，即生技、醫療、觀光、文創、精緻農業及綠能。對台北市美國商會本身而言，辦公室在2007年由中山北路搬遷到民生東路。這10年間，魏理庭與吳王小珍先後擔任商會執行長；曾任記者與教職的魏理庭任期自1999年至2008年，吳王小珍接任前則以聯合航空台灣區總經理的身份，於2004年獲選為商會首位女性會長。

July October

National Assembly ratifies constitutional amendments abolishing itself, halving the number of seats in the Legislature from 225 to 113 and introducing the “singlemember-district, two-ballot” system for legislative elections. New national pension system goes into effect. Legislation passed to create National Communications Commission.

2006 June

Xueshan Tunnel, fifth-longest highway tunnel in the world, opens to traffic after almost 15 years of construction.

December

Taiwan High Speed Rail commences operations.

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Foreign banks played a major role in the banking consolidation and the upgrading of the banking sector. Standard Chartered led the charge in 2006 by buying the Hsinchu International Bank for NT$40.5 billion, the first such takeover by a foreign bank. Citigroup followed in 2007 by acquiring the Bank of Overseas Chinese for NT$14 billion, raising the number of its branches from 11 to 65. Another three foreign banks – HSBC, ABN Amro, and DBS – took over troubled local institutions through the resolution system run by the Central Deposit Insurance Corp. The Financial Supervisory Commission was established in 2004 to consolidate supervision of the banking, securities, and insurance sectors – functions previously exercised by separate departments in the Ministry of Finance. In another government reorganization reflecting the growing importance of digital convergence, the National Communications Commission was established in 2006, merging the functions of the Directorate General of Telecommunications and the Government Information Office’s broadcasting department. Some of the largest foreign-investment cases in this period were by private equity firms in the cable TV industry. With this financial support, the largest operators were able to digitalize their networks and improve customer service. In March 2005, a new national pension system went into effect, giving added impetus to the already booming business in offshore mutual funds being promoted by such companies as Alliance Bernstein, BlackRock, Fidelity, and Franklin Templeton. Taiwanese investors in this decade showed an avid interest in diversifying their portfolios to include more overseas investments. A major development during this period was the construction of Taipei 101, which opened on the New Year’s Eve of 2004, officially becoming the world’s tallest building. It lost this status with the 2010 opening of the Burj Khalifa in Dubai, but still retains

its position as the iconic image of modern Taipei. In a momentous step for Taiwan infrastructure, the US$18 billion 245-kilometer-long High Speed Rail system started operating in 2007, offering journey times from Taipei to Kaohsiung as short as 96 minutes and effectively turning the island into a single market.

Political developments Altering the political landscape, the National Assembly acted in 2005 to abolish itself, to halve the number of seats in the Legislative Yuan from 225 to 113, and to introduce a new voting system that greatly reduced the influence of fringe parties, in effect creating a two-party system dominated by the KMT and DPP. The 2008 election victory of President Ma Ying-jeou and Vice President Vincent Siew restored KMT control of the executive branch and represented Taiwan’s second transfer of political power. The party at the same time substantially increased its parliamentary majority. The policies pursued by the new administration reflected the fact that China had become Taiwan’s most significant economic partner. Agreements were quickly signed for weekend charter flights and the opening of tourism to Chinese visitors. Regularly scheduled direct flights were instituted at the end of 2008, and the number of Chinese tourists reached 1.6 million in 2010, up nearly 70% from 2009. Pouring an estimated US$3 billion into the economy, Chinese tourists have become a key economic driver and stimulant to Taiwan’s stagnating service sector. In 2010, Taipei and Beijing inked a watershed partial free trade pact known as the Economic Cooperation Framework Agreement (ECFA), outlining steps the two sides will take to liberalize trade over the next decade and offering “Early Harvest” tariff concessions to 267 Chinese and 539 Taiwanese products. Taiwan has also opened its economy to a small amount of Chinese investment and eased restrictions on its tech compa-

nies’ investments on the mainland. For example, it ended a ban on domestic companies building LCD factories in China and allowed chipmakers to invest there as long as they also increase their domestic investment and keep their best technology in Taiwan. Under the “1992 Consensus” – a loose arrangement, disputed by the DPP, in which Taiwan and China reportedly agreed that both are part of “One China” while agreeing to disagree on the precise definition – Beijing has tolerated some increased international space for Taiwan. Since 2009, for example, Taiwan has had observer status in the World Health Assembly under the name “Chinese Taipei.” This step is part of Ma’s “flexible diplomacy,” which also involves a diplomatic ceasefire with China, with both sides tacitly agreeing not to try to woo away the other's allies. For the life insurance industry, the past decade of low interest rates has been a difficult time, plagued by financial pressures due to old policies that guaranteed high returns. In that environment, a number of foreign insurers have pulled out of the market by selling their Taiwan operation to loc al c ompani es. In t he past two years, Taiwan’s China Life bought most of Prudential Plc’s insurance business and Dutch ING Groep sold its Taiwan unit to Fubon Financial for US$600 million. The Aegon Group also sold all its shares in Aegon (Taiwan) Life in that year, and the American Insurance Group has been attempting to sell off its Nan Shan unit. Meanwhile, intellectual property rights (IPR) protection, long one of AmCham’s top issues, improved substantially in recent years, in part because many of Taiwan’s tech companies now have their own proprietary technology to protect. In 2009, the U.S government removed Taiwan from its Special 301 Watch List of countries that are major IPR offenders, a move that AmCham supported. In another step long urged by AmCham, Taiwan in 2008 signed the Government Procurement Agreement

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Worldwide House on MinSheng East Rd., Section 3, AmCham's home since 2007.

(GPA) under the WTO. Under the provisions of the agreement, companies from other GPA countries such as the United States have “national treatment” access to most public tenders for construction projects or other procurement, while Taiwanese companies can more easily bid for government contracts in those other markets. In a tragic turn, deadly Typhoon Morakot killed almost 700 and left thousands more homeless in 2009. Seventy AmCham companies donated a total of NT$4.9 billion in cash and another NT$13.8 million in goods such as medicine and clothing. Other companies provided ongoing services to affected schools and homes, either as special projects or as part of their Corporate Social Responsibility activities. AmCham President Andrea Wu said at the time that foreign companies with longtime operations in Taiwan had become rooted in this society and would do everything they could to help alleviate suffering. By the end of 2009, the government said, Taiwan was the world’s second-largest producer of Information and Communications Technology (ICT) products, with Taiwanese companies making more than 80% of the world’s notebook computers. The island was also a major contract IC chip maker and was the second big-

gest producer of TFT-LCD flat panels. Another noteworthy player by 2010 was HTC, which had risen from being a virtually unknown OEM maker to a leading brand – the world’s fifth largest smartphone maker. By 2011, it was bigger than Nokia in terms of market capitalization. Socially and economically, Taiwan increasingly faces the challenge of an aging population. Its fertility rate declined to 0.9 births per person in 2010, one of the lowest rates in the world and far below the 1980 level of 2.5. The Ma government came into office with projections for high growth rates, but was quickly confronted with the impact of the global financial crisis, which caused Taiwan’s exports to plummet. In 2009, Taiwan posted a -1.9% GDP growth, but in a sharp rebound 2010 saw vigorous growth at 10.8%. Overall, Taiwan’s performance in exports, especially tech, has been stunning, but the island is looking for ways to reduce its reliance on exports. That motivation was behind the choice of some of the Six Emerging Industries that the government is promoting as excellent prospects for future development. These sectors are biotechnology, healthcare, tourism, cultural and creative industries, high-value agriculture, and green energy. For AmCham, the past decade brought a moved in 2007 to more modern quarters in the Worldwide House in the city’s financial district around DunHua North Road. Vuylsteke, who was president from 1999 to 2008 was something of a renaissance man, having been a Fulbright scholar in India in his youth, a University of Hawaii academic, and a journalist. Current President Andrea Wu was the first woman chairperson of AmCham Taipei in 2004 when she was General Manager-Taiwan for United Airlines.

2008 March

KMT returns to power with election of Ma Ying-jeou and Vincent Siew as President and Vice President.

June

Cross-Strait talks in Beijing pave way for increased Chinese tourism into Taiwan and start of direct flights on weekends.

October November December

Formosa Plastics founder Wang Yung-ching dies at the age of 91. Taiwan announces that it will join the WTO’s Government Procurement Agreement. Regularly scheduled cross-Strait direct air service begins.

2009 U.S. removes Taiwan from Special 301 Watch List of countries that are major IPR offenders.

January may

Cabinet approves plan to promote six emerging industries: green energy, biotechnology, tourism, health care, “sophisticated” agriculture, and cultural and creative industries. Taiwan delegation attends World Health Organization meeting in Geneva. 2009 World Games held in

july

Kaohsiung, with 103 countries and areas participating.

august

Devastating Typhoon Morakot hits southern Taiwan, killing 677 and leaving thousands homeless.

2011 September

AmCham Taipei observes its 60th anniversary.

Statistical Snapshot

Population Ecnomic growth GDP Per capita GNP Unemployment Exports Imports Forex reserves Private cars Univ. students

2005 22.7 million 4.70% US$364.83 bn US$16,449 4.13% US$198.43 bn US$182.61 bn US$253.29 bn 5.5 mn 1.29 mn

2010 23.2 million 10.88% US$430 bn US$19,155 5.20% US$274.6 bn US$251.2 bn US$382 bn 5.64 mn 1.34 mn

sOURCES: CEPD

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Looking Back On Six Decades - Amcham Taipei's 60th Anniversary

2000s: Coming to Grips with China

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Political development

Economic Gains Matched by Political Progress 政治與經濟並進向前 BY DON SHAPIRO

撰文／沙蕩

giving the ruling Kuomintang aiwan’s transforma (KMT) or Nationalist Party an tion over a few decades effective monopoly on political from an agricultural power, and it was also considsociety to a major trading ered a serious crime to travel to nation and technology powerthe China mainland. house has often been described The President was elected as an “economic miracle,” every six years, not by popbut equally miraculous was its ular vote but indirectly by later rapid transition – without the National Assembly, most bloodshed – from an authorof whose members had been itarian, one-party state to a elected in 1947 by constituenv i b r a n t d e m o c r a c y. To d a y cies on the China mainland. the citizens of the Republic The Legislative Yuan was simiof China on Taiwan choose larly composed mainly of aged their own leaders in free and President Chiang Ching-kuo on one of his frequent weekend visits to the countryside. mainlander lawmakers who fair elections, have access to photo : cna kept their seats indefinitely information provided by an due to a ruling by the Grand Justices tionally mandated freedoms of speech, unfettered media, and enjoy the benthat new elections would need to await press, and assembly had been susefits of rule of law and protection of the recovery of the mainland. A secrepended since 1949 under emergency human rights. tive military organization, the Taiwan provisions instated for the “period of Not that long ago, the situation Garrison Command, kept a tight lid Communist rebellion.” The formawas quite different. Before the ending on dissident opinion. Hundreds if not tion of new political parties was illegal, of martial law in 1987, the Constitu-

常

有人形容台灣在三、四十年內由農業為主轉型為貿易與科技大國是「經濟奇蹟」，但同樣了不起的是近三十年發生的政治轉變，自一黨獨大的威權體制和平演變為生氣蓬勃的民主政體。中華民國在台灣現在能以自由、公平的選舉產生領導人，也有獨立自主的媒體傳遞各種訊息，還有享有法治與人權保障。還是不久之前，整體環境並非如此。1949年宣布動員勘亂後，至1987年解除戒嚴為止，《中華民國憲法》對言論、新聞、集會自由的保障形同具文。加上禁止組黨，國民黨實質壟斷政治權力。同時，受限於台灣政府的嚴格規定，台灣人無法前往中國大陸。

戒嚴期間，總統六年一任，不是經由普選產生、而是國民大會間接選舉；然而，多數國大代表都是1947年以前在中國大陸當選。立法院多數委員也是由外省人擔任，而且因為大法官釋憲裁定，必須「光復大陸」後才能改選，因此立委形同終身職。由於警備總部高壓管制言論與異議份子，無數疑似親共份子與台獨人士在草率的軍法審判後，要不是隨即正法、就是被送往高度隔離的綠島等監獄。媒體軟弱無力，自我審查非常嚴重；外國書籍雜誌往往被海關事先審查，因此收到時要不是缺了幾頁，就是某些內容被黑筆抹消。如此嚴厲管制下，台灣社會是如何成為開放社會？在許多因素中，最重要的莫過於民眾的財富累積加、教育

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thousands of suspected Communist sympathizers and Taiwan independence advocates were convicted in perfunctory military-run trials and either executed or packed off to prisons such as the notorious penal facility on Green Island. The local press was tame, exercising strict self-censorship, and foreign publications often arrived with pages missing or sections obliterated with black crayons. How did the remarkable transformation from such tight control to an open society come about? Among the many factors at work, one of the most important was the rising affluence, educational level, and sophistication of the Taiwan public. “Widespread illiteracy was replaced by universal education, and isolation gave way to frequent interchange with the rest of the world,” said Kang Ning-hsiang, a onetime legislator and publisher who served as SecretaryGeneral of the National Security Council in the Chen Shui-bian administration, quoted in a 1999 article in Time. Thousands of Taiwanese students enrolled in U.S. universities, and returned with a taste for American-style freedoms. Taiwan’s businessmen traveled the globe to develop export markets and met frequently in Taiwan with foreign buyers. The presence of AmCham Taipei and the multinational companies that comprised its membership also spurred this process of familiarizing the people of Taiwan with Western ideas and practices. Taiwan’s need to demonstrate a sharp contrast with Communist rule on the mainland made it increasingly difficult to deny the appeals of its citizens for more participation in public life. Even during the period of relatively harsh repres-

sion during the 1950s and early 1960s, Taiwan liked to refer to itself as “Free China,” and it relied heavily on the support of staunchly anti-Communist political figures in the United States and elsewhere in the West. Then in the 1970s came the death of Mao Zedong, the end of the Cultural Revolution, and the rise to leadership in China of Deng Xiaoping and his policy of promoting economic development over ideological purity. That flexibility posed new challenges for Taiwan, as China’s booming market and “smiling diplomacy” caused more and more countries to switch diplomatic relations. Within Taiwan, the opposition politicians

提高與見識日增。曾任民代、出版家與陳水扁總統時代國安會秘書長的康寧祥，在1999年一篇《時代雜誌》文章中描述當時的轉變：「國民教育降低了文盲比例，與其他國家的經常往來突破了政府封鎖」。幾十萬青年學子赴美留學，回國時帶回美式自由的思維。台灣商人旅行全球以開拓外銷，也常常與外國買家在台會面。台北市美國商會與其會員企業也扮演一定角色，為台灣人引介西方思維與作法。因為必須展現與共產中國截然不同的形象，台灣政府越來越難排拒民眾參與公共事務的訴求。就算在1950與 1960年代初的白色恐怖時期，台灣也以「自由中國」身分對外發言，以爭取美國與西方國家反共勢力的支持。

Left, Lee Teng-hui's victory in 1996 in the first direct presidential election in Taiwan came despite China's attempts to increase tension and intimidate the voters; Right, Chen Shui-bian helped fund his campaign in 2000 by selling various paraphernalia. photo : cna

中國在70年代經歷巨變：精神領袖毛澤東病逝，文化大革命落幕，務實派的鄧小平終於掌權、並引導走向改革開放的經濟發展路線。中國的改變為台灣帶來新的外部威脅，因為快速發展的中國市場與溫和路線的微笑外交，使越來越多國家棄台灣而就中國。台灣內部同樣出現變局，異議份子逐漸形成鬆散的黨外運動，而且爭取民主自由的動作越來越大。黨外運動在 80年代遭逢嚴重打擊，許多領袖在美麗島事件後遭到逮捕、判刑。但美麗島律師團的組成，使新一代的領導人獲得表演舞台，其中包括陳水扁、謝長廷、蘇貞昌等人。 1986年9月，黨外人士甘冒戒嚴禁令，宣佈民主進步

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Political development

who had coalesced to form a loose coalition known as the dangwai – literally “outside the party” (the party being the KMT) – became increasingly aggressive in pushing for greater democratization. The dangwai suffered a setback in 1980 when a clash with police during a protest demonstration in Kaohsiung led to the arrest and conviction of much of the opposition leadership. But new leaders – including Chen Shui-bian, Frank Hsieh, and Su Tzeng-chang – emerged from among the team of defense lawyers at the military trial. In September 1986, the opposition mustered the courage to create a new political party, the Democratic Progressive Party (DPP), when that was still a violation of martial law. This time,

instead of cracking down, the government showed its tolerance, and in July of the following year President Chiang Ching-kuo took the major step of lifting martial law (as well as terminating most foreign exchange controls). He also opened the way for the first legalized cross-Strait travel since 1949. Initially such visits were allowed only for reunions by members of long-divided families, and travelers had to apply through the Red Cross, but soon such trips were being made by businessmen and tourists as well. Probably knowing that he did not have long to live, the ailing Chiang Ching-kuo moved to liberalize the political system during his last months (he died in January 1988). The pro-

Taiwan's Legislative Yuan became better known for its fisticuffs than for its lawmaking during the 1980s. photo : cna

黨正式成立。這一次，政府並未強力彈壓，而是選擇冷眼旁觀；隔年七月，蔣經國總統下令解嚴，同時解除外匯管制，以及開放大陸探親。兩岸旅行一開始只限探訪親人，且需由紅十字會代為申請，但商人與一般觀光客很快也獲准登陸。或許是知道來日無幾，蔣經國在1988年1月去世前幾個月開始加速政治改革，並由其繼任者、第一位台籍總統李登輝繼續推動。報禁解除後，新報紙陸續成立；兩岸電信也終於可以直接通話。大法官會議推翻50年代的判例後，40年代選出的「萬年國會」1991年底開始換血，國代與立委終於全面改選。之後數年，《動員勘亂時期臨時條款》的廢止，回復

cess continued under his successor, Lee Teng-hui, the first native Taiwanese to serve as President. Press controls were abolished, allowing new newspapers to start publication, and direct telephone links with mainland China were established. The Council of Grand Justices reversed its 1950s ruling to require the elderly legislators elected in the 1940s (the DPP referred to them as the “old thieves”) to retire by the end of 1991, permitting an entirely new Legislative Yuan to be elected. Over the next few years, full Constitutional rights were restored through abolition of the “Temporary Provisions Effective during the Period of Communist Rebellion,” the Taiwan Garrison Command was disbanded, and in 1996 Lee Teng-hui was re-elected President – but this time in a direct popular election. Four years later, the DPP’s Chen Shui-bian won the presidency, ushering in the first transfer of political power in Taiwan’s history. Taiwan’s march to democracy has won it widespread respect and good will around the world. At a time of a rising China, the achievement of broad political participation and human rights has provided impressive evidence for why Taiwan matters and deserves continuing support. More broadly, it has shown – for the first time in history – that Chinese people are capable of attaining democracy. In his 1996 inaugural address, Lee Teng-hui directly cited this role as a model for the mainland. “We believe that whatever is achieved by the Chinese in Taiwan,” he said, “can also be achieved by the Chinese in mainland China.”

憲法保障的基本人權，並終結白色恐怖的執行者警總。李登輝1996年連任總統，但這次是獲得581萬張選票的民意背書。四年之後，民進黨的陳水扁贏得總統大選，實現台灣歷史上首度的政黨輪替。台灣邁向實質民主的努力贏得全世界的尊敬與祝福。面對崛起中的中國，台灣的政治全面參與及人權普獲保障，是台灣地位特殊且值得國際奧援的明證。更深遠的意義是，台灣證明了華人文化也能孕育真正的民主。李登輝1996年就任總統時，即宣告台灣可作中國的發展指標，他說：「我們相信，同樣是中華民族的一份子，在台灣做得到的，在中國大陸也可以做到。」

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WWhhi ittee PPaa PP e r

The Taiwan White Paper as Advocacy Instrument 台灣白皮書 – 彙整議題，提出建言 BY DON SHAPIRO

hile serving as U.S. Under Secretary of Commerce during the George W. Bush administration, Frank Lavin made a habit of asking AmCham Taipei for an extra supply of its annual Taiwan White Paper. “I’d always keep some copies on my shelf,” he recently told an AmCham luncheon audience. “When American Chamber delegations from around the world would visit and ask my advice on how to best promote their policy agenda, I’d hand them a copy and say ‘this is what you should be doing.’” Now an executive with Edelman Public Relations, Lavin hailed the White Paper for presenting the Chamber’s issues in a clear, concise, comprehensive, and wellwritten manner.

曾

撰文／沙蕩

Similar praise for the White Paper has come from top-ranking Taiwan officials as well. President Ma Yingjeou, during his annual appearances at AmCham’s Hsieh Nien Fan banquet that began when he was mayor of Taipei, each time mentions that he has read the White Paper and thanks the Chamber for its recommendations on how to improve the business climate. Vice President Vincent Siew on numerous occasions has expressed his appreciation for the Chamber’s having pushed for greater market opening, noting that such liberalization invariably met with resistance from vested interests at the time, but later proved to be beneficial to the competitiveness of the Taiwan economy. During his pres-

在美國前總統小布希任內擔任多個重要職位的雷文凱，在商務部次長任內一直有個習慣，即要求台北市美國商會每年固定提供《台灣白皮書》。雷文凱最近暫時停留台北，在商會午餐會中表示，「我的書架上總擺著幾本白皮書」，「如果全球各地的美國商會前來拜會，問我什麼方法才能最有效推動他們的議程，我總會給他們一本白皮書，然後說『這就是你們該做的』。」現在任職於愛德曼公關顧問公司的雷文凱讚許，《台灣白皮書》總能清楚、扼要、全面、流暢地說明商會關切的議題。台灣高層官員對白皮書同樣讚譽有加。馬英九總統自台北市長任內開始，每年都會參加商會「謝年飯」；而他每次都會提到他已經詳讀過白皮書，也感謝商會對改善經營環境的建議。副總統蕭萬長也曾多次表明，商會推動市場開放的努力令人敬佩，因為自由化的過程往往

idency, Chen Shui-bian referred to the White Paper as a “mirror held up in front of the government to help us evaluate our effectiveness.” Paul Cassingham, who served two terms as AmCham chairman in 1999 and 2000, recalls a meeting with Chiang Pin-kung, now chairman of the Straits Exchange Foundation, when Chiang was Minister of Economic Affairs. “He had a copy of the White Paper on the table in front of him, and not only had he inserted tabs to mark certain pages, but we could see that he had circled certain passages and written notes in the margins. It was a very nice feeling to have our efforts get that kind of attention.” The first document entitled Taiwan

引發既得利益者的反彈，但真正貫徹後卻總是有利於台灣的競爭力。前總統陳水扁也曾在任內表示，白皮書就像政策的一面鏡子，幫助政府評估施政效能。曾於1999年及2000年兩度擔任商會會長的柯星漢回憶起他與前經濟部長江丙坤的某次會面。江丙坤現在已經是海基會董事長。柯星漢說：「江丙坤的書桌上就擺著一本白皮書，書上不只有標籤，還可以看到某些段落被圈起來，或是他自己在空白處加上的註解。我們的努力能獲得如此重視，感覺真的很不錯」。比起現在，商會1996年9月首度推出的《台灣白皮書》只能算是初具雛型。當年的白皮書基本上是1995年「台灣國情報告」的擴充版。台灣國情報告是TOPICS 雜誌1980年代後期推出的年度專題之一，負責撰稿的商會貿易與經濟事務委員會當時是由麥肯錫公司的藍威廉所率領。柯星漢說，「當時的想法是，讓外商企業的台

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W h i t e Pa P e r covered by Human Resources), Marketing and Distribution, Medical Devices, Pharmaceuticals, Telecommunications and Information Technology (now divided into Telecom & Media and Technology committees), and Transportation. The recommendations were still terse and to the point; one was just three words: “Privatize government-owned banks.”

Bilingual but controversial White Paper was published in September 1996 with relatively little fanfare. It was basically an expanded version of the Taiwan Country Paper that AmCham had been including in Topics magazine since the late 1980s. The TCP was prepared by the Chamber’s Trade and Economic Affairs Committee (TEAC) chaired by Bill Reinfeld of the McKinsey Co. “It was intended as something that Taiwan country managers could send back to their home offices along with their annual budget proposals – reporting on what had happened in Taiwan politically and economically in the past year,” explains Cassingham. The 1995 Taiwan Country Paper, at 13 pages, cited eight Priority Issues, including admission for Taiwan to the World Trade Organization (WTO) regardless of China’s insistence that it enter first, as well as the continuation

of U.S. Cabinet-level visits to Taiwan. There were also two pages of one-sentence Positions and Recommendations, plus reports on political, economic, and social trends in Taiwan, and a sectorby-sector rundown of Opportunities for American Businesses. Relabeling as the Taiwan White Paper the following year brought an expansion to 21 pages, but more importantly a greater emphasis on regulatory issues that AmCham had identified as “important to the U.S.’s present and future economic interests in Taiwan.” These were presented by 13 Committees: Agricultural Chemicals, Banking and Capital Markets (since split into two committees), Environmental Protection, Government Contracting (chiefly the current Infrastructure Committee), Independent Business (no longer in existence), Insurance, Intellectual Property, Labor Issues (now

灣區主管在提出年度預算需求時，能夠同時附上一份報告，說明台灣過去一年的政經情勢」。總共13頁的1995年度台灣國情報告包含八大議題，如呼籲台灣在中國堅持必須先加入世界貿易組織（WTO）的情況下仍應入會，以及呼籲美國持續派遣部長級官員訪台。同時，白皮書也包括兩頁的產業優先議題，以每項一句的方式簡述業界訴求。另外，還有台灣政治、經濟、社會趨勢的總體報告，以及美商在各產業的潛在商機。商會1996年決定正式定名為《台灣白皮書》，並將篇幅擴增至21頁，但最重要的變化是著重政策議題，亦即「攸關美國參與台灣市場、及其未來經濟利益的領域」。商會當時共有13個委員會，即農化、銀行與資本市場（現已改組為兩個獨立委員會）、環境保護、政府合約（多數議題轉移至基礎建設委員會）、創業者委員會（現已解散）、保險、智慧財產權、勞工（現為人力資源委員會）、市場與通路、醫療器材、製藥、電信與

The 1997 White Paper, enlarged to 40 pages, represented a major milestone in that it was fully bilingual. Chairman Jeffrey R. Williams had decided that if AmCham wanted the White Paper to get the attention of government officials, it should make the document easier for them to read by presenting it in Chinese as well as English. It was also more accessible to the local media, which led to the biggest controversy in the history of the White Paper to date. The nub was this paragraph: “Taiwan’s relationship with China will determine the island’s economic future, but the R.O.C. government appears not to recognize this reality. Government restrictions on cross-strait trade and investment are inhibiting the growth of local companies and the interest of multinationals in setting up a presence in Taiwan. Instead, the government has encouraged local businessmen to invest in South-East Asia.” The document

資源科技（現為電信與媒體、及科技委員會）、運輸。產業優先議題仍然簡明扼要，其中一項只有短短數字：公營行庫必須民營化。中英文併陳引發的爭議接著，《1997年度白皮書》除了再度擴增至40頁，更首度同時印行中、英文版本。當時的會長韋傑夫認為，如果要讓政府官員重視白皮書，就必須推出中文版以方便閱讀；同時，中文版也更容易引起台灣媒體注意。然而，新聞報導卻引發白皮書發布以來的最大風波。風波的起點是以下的陳述：「台灣和中國的關係牽連台灣未來的經濟發展。然而，中華民國政府似乎並未正視現實。政府限制兩岸的貿易投資，此舉不但阻礙了本地企業的發展，並抑制了跨國企業在台灣設點的意願。相反的，政府鼓勵台商投資東南亞。」白皮書的導言接著指出，政府雖然試圖將台灣打造為亞太營運中心，

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went on to refer to the government’s plan to turn the island into an AsiaPacific regional operations center, or APROC, as “mere wishful thinking without direct and easy access to China’s market and resources.” Both the “Go South” policy to encourage Southeast Asian investment and the APROC plan were pet projects of President Lee Teng-hui, and some government officials and journalists were aghast at the Chamber’s comments. “The difference between public policy recommendations and personal criticism was not yet sufficiently appreciated,” says Cassingham, and “the reaction in some circles was basically that AmCham leaders were guests in this country and should behave accordingly.” One local magazine even ran a report that featured a photo of Jeffrey Williams next to the headline: “AmCham Leaders Dare to Criticize Lee Teng-hui.” And when the AmCham team returned from their Doorknock visit to Washington, they were subjected to a dressing down by the Vice Premier. Premier Vincent Siew soon brushed the whole incident aside, however, encouraging AmCham to continue to make candid assessments and setting the cooperative tone for the years to follow. Ly n n S i e n , t h e A m C h a m p r e s i dent in the 1990s, notes that before the Chamber began issuing the White Paper, the various working committees had annually come out with well-pre-

pared position papers about their issues, but “regrettably, the audience was limited to just high-ranking government officials” – and since the public at large was not aware of the barriers to trade that U.S. businesses faced, “there was little impetus for the ROC to make substantive changes” in support of U.S. business interests. “Once we not only started publishing the White Paper in a Special Fall Edition of Topics magazine, and also ensured that it was translated into Chinese, coupled with holding a special news conference for the release of the White Paper, Amcham began seeing concrete results regarding our issues,” she recalls. “Indeed, coverage of the White Paper became a staple in the local English and Chinese press and was eagerly anticipated.” From the late 1990s, the White Paper continued to expand – to 56

「但如果台灣無法直接、容易地進入大陸市場且取得資源，…計畫無疑只是空想罷了。」鼓勵台商前往東南亞的「南向政策」，以及亞太營運中心計畫，都是前總統李登輝所拍版定案的關鍵政策，商會的直言不諱確實嚇到部分官員與記者。柯星漢說，「當時的台灣還不能接受對事不對人的概念」，「部分人士的反應是，商會成員身為客人，不宜反客為主，批判主人。」一份雜誌的報導甚至以「美國商會放肆批評李總統」為題，而且旁邊配上韋傑夫的大頭照。當商會「叩門之旅」代表團自美國華府返台後，毫無意外地被時任行政院副院長的蕭萬長訓了一頓。不過，蕭萬長很快就轉換話題，鼓勵商會繼續坦率建言，這也為商會與政府往後多年的合作關係打下基礎。商會1990年代的執行長須琳表示，《台灣白皮書》推出之前，雖然各委員會每年都會撰文詳細說明其所關切的議題，但「可惜的是，受眾僅限政府高層」；而且，既然多數民眾並不知道美商面臨的貿易障礙，「中華民

pages in 1998, 74 in 1999, and 87 in 2000. But it was revamped in 2001 to include much less background information on Taiwan’s political and economic conditions, and instead to concentrate more on specific sectoral concerns raised by the various committees. Still, each year it set a number of broadbased Priority Issues. Until Taiwan’s accession to the WTO in early 2002, the list was usually headed by an appeal for that organization to handle Taiwan’s application on its merits, instead of making it wait until after China’s admission. In 2002, the top Priority Issue was to urge the Taiwan government to comply with both the letter and spirit of its new WTO commitments. Over the following several years, the Priority Issues were largely the same set of six concerns, though often presented each year in a different order. The 2003 recommendations were typical:

國又何來足夠動能，以具體改革協助美商？」須琳指出，「商會每年秋季的TOPICS雜誌刊出白皮書，並將內容翻譯成中文，還為白皮書舉行特別記者會，這才開始見到商會關注的議題獲得具體改善」，「事實也是如此，台灣的中英文媒體開始大幅報導白皮書，而且每年都會事先探聽進度」。白皮書自1990年代後期持續擴充內容，1998年度為56 頁，1999年度為74頁，2000年度為87頁。但自2001年度開始，白皮書減少台灣政經情勢的背景說明，更加著重在各別委員會對相關產業的疑慮。但不變的是產業優先議題，每年依然提出許多宏觀建言。在台灣於2002年加入WTO前，商會都在呼籲WTO摒棄政治考量，不應硬讓台灣排在中國之後入會。2002年度白皮書的優先議題，焦點則在敦促台灣政府具體落實WTO入會承諾。其後數年的優先議題基本上不出下列的六大議題，雖然先後順序每年稍有出入。2003年度的建議就是其中代表：

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• Reduce Government Involvement in Business Hiring Decisions. “The overall regulatory environment retains the paternalistic orientation of a command economy instead of focusing on facilitating business.” • Build World-Class Infrastructure. “Terms and conditions and other bidding restrictions on infrastructure development prevent Taiwan from attracting internationally recognized firms to seek projects in Taiwan.” • Improve Taiwan’s Healthcare Environment. “Solve long-standing issues that deprive international firms of a level playing field in pharmaceuticals and medical devices.” • C o m p l e t e E s s e n t i a l F i n a n c i a l Reforms. “AmCham urges the government to continue cleaning up and restructuring the financial industry (and to stand firm on its stated targets and deadlines for reform

proposals). • Tighten Intellectual Property Protection. “Piracy, trade dress and patent violations, counterfeit materials, and illegal imports of patented products all remain serious problems in this country.” • Strengthen the Attack on Corruption. “AmCham commends the government on its continuing campaign against ‘black gold’ political corruption…and urges an expansion of this campaign to include corporate and social ‘black gold’ issues.”

Evolution of issues In 2004, the top of the list became Encourage Economic Ties with China: “The increased time and expense caused by the absence of direct cross-Strait transportation has already become a serious impediment to business and is

．降低政府對企業聘雇的干預：法規體系仍為家戶長心態，計畫經濟的管制仍凌駕經營環境的改善。．打造世界級的基礎建設：基礎建設招標的合約條款與其他限制，不利台灣引進跨國廠商參與。．改善台灣的醫療環境：製藥與醫療器材市場應有公平的遊戲規則，不應歧視跨國企業。．推動關鍵金融改革：商會呼籲政府持續整頓、重建金融產業，並展現政治決心以貫徹目標與時程。．強化智慧財產權保障：盜版、外觀與專利的侵權、偽劣商品，及專利商品的非法進口，仍是台灣市場的普遍現象。．繼續打擊貪腐：商會樂見政府持續打擊黑金貪瀆… 並希望擴及企業與社會的不法貪腐問題。議題的演變 2004年的《台灣白皮書》，焦點轉移至鼓勵兩岸經貿

forcing many multinational corporations to relocate executives for Greater China operations from Taipei to Hong Kong, Singapore, or Shanghai. More worrisomely, the issue has become a symbol of Taiwan’s self-isolation from Asia’s fastest growing market. Taiwan’s proximity to China must be embraced as an e c onomic s tr e n gt h, not j ust guarded against as a political risk.” The 2005 edition added concerns about the adequacy of the supply of “knowledge workers” to meet the demand of a more sophisticated economy. It also called for institutional development in government to improve the efficiency of the executive and legislative branches, and to strengthen the judiciary’s handling of IPR matters. The 2006 paper said Taiwan’s failure to make progress toward a Free Trade Agreement with the United States should be a wake-up call on the need for a “hardnosed approach to issues of economic restructuring.” Many AmCham members will remember the 2007 White Paper for its cartoon of a tiger getting a dental examination, with the caption “Hey Tiger – How’s that Bite?” The suggestion was that Taiwan had become less economically vigorous than its Asian competitors due to debilitating political infighting and a “regulatory morass” that too often ignored the need for transparency, consistency, and due process. Entitled “Getting Down to Busi-

往來：「兩岸遲遲無法直航所增加的時間與成本，已經成為商業發展的一大障礙，也迫使許多跨國企業將大中華區的主管由台北移往香港、新加坡或上海。更令人擔憂的是，此一趨勢已經成為台灣自外於中國市場的具體表徵。台灣與中國的鄰近性，應該成為台灣的經濟優勢，不能總以政治因素排拒」。商會在2005年首度呼籲，欠缺足夠的「知識工作者」將無法因應越來越趨複雜的經濟環境。當年的白皮書也呼籲政府推動制度改革，以增進行政與立法的效能，並強化司法對智財權的保障。2006年度的白皮書主張，台灣與美國的自由貿易協定（FTA）難有進展，正凸顯台灣需要大刀闊斧調整經濟結構。許多商會會員都對2007年的白皮書印象深刻，因為當期的封面是一隻老虎正在接受牙醫檢查，而標題是「亞洲之虎，依然生龍活虎？」隱含的意義是，台灣的政治惡鬥與法規紊亂，已經妨礙商業發展所必需的透明度、一致性與正當程序，更使台灣的經濟活力落後於其他亞

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ness,” the 2008 paper called on the newly elected Ma Administration to meet the high expectations for its performance through improved cross-Strait relations and rigorous deregulation. But the impact of the global financial crisis intervened, leading AmCham to call the 2009 paper “Getting Ready for Recovery.” The paper cited the need to rectify inefficiencies in the bureaucracy, and among “sources of frustration” particularly mentioned the unwillingness of the National Communications Commission to engage with industry and the difficulty faced by pharmaceutical and medical-device manufacturers in obtaining National Health Insurance reimbursement prices sufficient to enable them to launch innovative products in this market. The “Aspire to Greatness” paper of 2010 commended Taiwan for having created a good investment climate, but noted that merely “good” is no longer good enough. It urged Taiwan to embark on an ambitious quest to become one of the very best places for doing business. Entitled “Locking in the Future,” the 2011 document pointed out the need to make decisions today to enable Taiwan to meet longterm challenges – especially in assuring a sufficient supply of well-trained technical and managerial personnel, as well as adequate supplies of electrical power and water. By this time, the White Paper had grown to 112 pages

and carried position papers from 20 committees and two other member groups, incorporating a total of 92 different industry issues. Counting all of the committee activity, more than 100 people are annually involved in the White Paper’s preparation over a period of five months. During the past several years, the White Paper has also included a section directed at Washington, calling for more attention to Taiwan trade issues, the resumption of visits to Taiwan by cabinet-level U.S. officials, and the provision of visa-waiver treatment to Taiwanese travelers. Although issues such as Taiwan’s need for greater regulatory efficiency are still prominent themes in the White Paper, some other once-conspicuous topics have declined in relevance. Intellectual property rights at one time were among AmCham’s greatest concerns, but

洲對手。 2008年的白皮書以「馬上上路」為題，呼籲剛上台的馬英九政府回應民意的高度期待，改善兩岸關係及降低經貿障礙。但隨後出現的全球金融風暴，讓商會決定以「為經濟復甦做好準備」當做2009年白皮書的標題。報告除了呼籲政府著手提高行政效能，並表明在諸多疑慮中，不願與業界良性互動的國家通訊傳播委員會（NCC）特別令業者挫折，製藥與醫療器材業者也因無法獲得足夠全民健保給付，而難以積極引進新產品。 2010年的白皮書，標題為「邁向卓越的經濟」，企盼台灣持續改善投資環境，千萬不能以現狀為滿足。報告希望台灣能眼光遠大，努力成為全球最佳的經營地點。 2011年的白皮書以「把握當下，成就未來」為主軸，期待台灣做出關鍵抉擇以因應長期挑戰，特別是專精技術人員與管理人才是否足夠，以及水電供應是否充裕？最新一期的白皮書已經增加至112頁，包含20個委員會、2 個會員團體的92項產業優先議題。包括委員會的相關活

improvements in the relevant laws and enforcement have led to Taiwan being removed from the United States’ Special 301 Watch List of countries with poor records for IPR protection. AmCham was also pleased that Taiwan in 2009 signed the Government Procurement Agreement under the WTO to further open the local market to international players. The inconvenience of crossStrait travel cited frequently in previous White Papers is now also a thing of the past, following the opening and continued expansion of direct flights. “Of the many issues raised in the Taiwan White Paper in a given year, the number that can be quickly checked off as ‘solved’ is always very limited,” notes AmCham President Andrea Wu. “But the long-term trend has been quite positive. It’s gratifying that many of our biggest concerns in past years are no longer significant issues.”

動在內，每年已有百餘人參加白皮書的編纂，所需時間長達5個月。白皮書過去幾年也納入給美國政府的建議，議題包括更加重視美台經貿議題，恢復部長級官員訪台，以及免簽計畫（VWP）納入台灣。雖然行政效能仍是白皮書批評的焦點之一，但過去的一些問題已經出現進展。智財權保障曾是商會最擔憂的議題之一，但立法與執法的改善，已經使台灣自美國特別301觀察名單除名。商會同樣欣見台灣在2009年加入 WTO架構下的政府採購協定（GPA），對國際企業進一步開放市場。早些年的白皮書年年批評兩岸必須經第三地轉機的問題，但直航早已落實、而且還在不斷增班、擴點。商會執行長吳王小珍說，「白皮書每年提出的議題，雖然只有少部份能夠馬上獲得解決，但長期結果仍令人充滿希望，因為許多過去的頭痛問題，現在已經獲得明顯改善。」

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doorknock

Making AmCham’s Voice Heard in Washington 向華府發聲 BY DON SHAPIRO

ince 1994, it has been AmCham Taipei’s regular practice to follow up publication of the Taiwan White Paper by dispatching a delegation to Washington, D.C. for a week of meetings with Congressional offices, executive branch agencies dealing with international economic relations, think tanks, and others concerned with the U.S.-Taiwan bilateral relationship. The “Washington Doorknock” normally involves a hectic schedule of about 35 meetings over the course of five days – often starting with earlymorning sessions over breakfast and concluding with dinner meetings. The Doorknock is a chance to meet with U.S. government officials responsible for dealings with Taiwan at such agencies as the State Department, Office of

台

the U.S. Trade Representative (USTR), National Security Council, Commerce Department, and Treasury Department. Taiwan’s representative office in the U.S. capital and the Chamber of Commerce of the United States are also typically among the stops. “These face-to-face meetings make for much more effective two-way communication than we could ever have by letter or email,” says AmCham President Andrea Wu. “We brief them on our position on issues, and in return we hear their perspective. We always come away with a much better understanding of the economic and political environment in which U.S.-Taiwan relations are being played out.” It is also an unforgettable experience for those who have taken part.

北市美國商會自1994年起，固定在發表《台灣白皮書》後派團前往美國華府進行為期一周的訪問，對象包括國會議員與助理、國際經貿相關部會、智庫社團，以及關切美台關係的各方人士。「華府叩門之旅」以「鐵人行程」著稱，5天內大概會塞進35場會議，每天幾乎都是以早餐會開始、晚餐會收尾。叩門之旅的目的是直接接觸美國各部會的涉台官員，包括國務院、貿易代表署（USTR）、國安會、商務部、與財政部。台灣駐美代表處與美國全國商會也幾乎是必訪之地。商會執行長吳王小珍說：「面對面的雙向溝通，效果遠勝於信件或電郵」，「商會直接闡述立場，對方則回應以他們的觀點。經過叩門之旅，我們總是更瞭解左右美台關係的政經氛圍」。對代表團成員來說，叩門之旅也是難忘經驗。派可策略顧問公司總經理陳幼臻說：「叩門之旅是個絕佳的機會，可以將企業議題直接傳達給華府高階決策

撰文／沙蕩

“Doorknock is a great opportunity to bring your company's issues directly to senior-level decision makers in Washington,” says Anita Chen, who participated in five Doorknocks as AmCham’s Director of Government and Public Affairs and one in her current position as Managing Director of Park Strategies (Taiwan). “It is fascinating and extremely rewarding for anybody who is a policy wonk or a fan of The West Wing. After all, not everyone has a chance to see the room where U.S. Vice Presidents have been sworn in or to personally examine the desk where Nixon installed his tape recorder!” B e f o r e A m C h a m Ta i p e i b e g a n sending its own delegations to Washington, for many years it participated in the Doorknocks organized by the Asia-

官員」。曾經以台北市美國商會政府及公共事務部總監身份參與5次、以現職參與1次叩門之旅的她說：「對於熱衷政策研究或喜愛『白宮風雲』影集的人，叩門之旅絕對充滿吸引力與成就感。不是誰都有機會能參觀美國歷任副總統宣誓就職的房間，或是親身細看尼克森總統偷裝錄音機的書桌！」台北市美國商會派遣自己的華府訪問團之前，都是參與美國商會亞太理事會的叩門之旅。以1984年亞太理事會叩門之旅為例，35名成員中有5位台北市美國商會代表。然而，美國商會亞太理事會1993年決定刪減支出、減少活動，包括每年的叩門之旅。台北市美國商會前會長柯星漢表示，「當時的商會執行長須琳認為，我們自己也可以辦叩門之旅啊，而且還能更專注於台灣議題」。現為商會政府事務委員會主席的他說：「第一次專為台灣議題籌劃的叩門之旅的領隊是Bill Botwick，而且規模龐大，多達15人」。台北各界對商會代表團的一舉一動

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Pacific Council of American Chambers (APCAC). Of the 35 representatives in the Council’s 1984 mission to Washington, for example, five were from AmCham Taipei. In 1993, however, APCAC decided to reduce its budget and scale back its activities, including the trip to D.C. “Lynn Sien, our Executive Director [the office now called President], had the idea that we could do our own Doorknock, focusing on Taiwan issues,” recalls Paul Cassingham, a former AmCham chairman and currently chair of the Board’s Government Relations Committee. “The first dedicated Taiwan Doorknock in 1994 was led by Bill Botwick and it was huge – 15 people.” There was considerable interest in Taipei in following the group’s activities: “At the end of each day, we would draft press releases to send back to the Taiwan media, and we also did radio interviews with ICRT.” Cassingham, who holds the record for participation, having gone on 14 of the 17 AmCham Taipei Doorknocks

2007

2006

2005

doorknock

to date, recalls some of the high points over the years. One was the delegation’s ability for several years running to meet at USTR with the U.S. government’s chief negotiator with Taiwan over Taiwan’s application to join the General Agreement on Tariffs and Trade (GATT), the organization that became the World Trade Organization (WTO). “We had the chance to provide our input, point by point, on the content of the negotiations,” he says. Another memorable experience was a meeting with Senator Jay Rockefeller in the 1990s following distribution of a memo in which AmCham identified its Priority Issues as including 1) entry for Taiwan into the WTO “on the merits” – meaning without waiting for China's entry – and 2) the preservation of peace and stability in the Taiwan Strait. The Chamber delegation arrived at Rockefeller’s office to find that he had been called to the Senate floor for a vote, but an aide assured the group that “the Senator really wants to see you.” He guided the team through

都很有興趣，因此「我們每一天都會擬定新聞稿發給台灣媒體，還接受ICRT電台訪問」。柯星漢現在還是叩門之旅的紀錄保持者：總共17次出訪，他參加了14次。說起歷次訪問中的精彩之處，柯星漢認為，其中之一是：連續幾年，商會都在貿易代表署和負責台灣進入關貿總協定（GATT）相關談判的美方首席談判代表對話，「而且能對談判內容提供意見，說是『逐項評點』也不為過」。GATT最後演變為世界貿易組織（WTO）。另一個印象深刻的經驗，則與參議員洛克斐勒有關。商會1990年代曾經發送1份優先議題備忘錄，強調首要目標是「台灣加入世貿組織須根據經貿現實條件，而非政治考量，亦即不該強要台灣等待中國入會」，其次是「台海必須維持和平與穩定」。商會代表團抵達洛克斐勒的辦公室時，參議員已經前往議場投票，但助理鄭重告訴商會代表「參議員很想跟你們談談」。團員跟著助理穿過地下通道前往國會主樓，不久就見到洛克斐

underground tunnels to the Senate chambers in the Capitol building, and soon Rockefeller came bounding out, exclaiming “I’ve read your paper and it doesn’t make sense!” The two objectives stated by the Chamber were mutually exclusive, said Rockefeller, since China was adamantly opposed to WTO membership for Taiwan until after Beijing had first entered the trade body. “It was a vivid moment,” says Cassingham. “He had not only read what we had written, but had digested it and very much wanted to respond. That told us we were capable of getting our concerns across.”

High-water mark What Cassingham describes as the “high-water mark in terms of Doorknock successes” came in 2000 at a pivotal juncture in Taiwan’s efforts to accede to the WTO. By then it was clear that WTO admission for Taiwan would have to follow China’s, if only by a minute, and a potential obstacle

勒邊迎上來邊喊：「我讀過你們的備忘錄，邏輯根本不通！」洛克斐勒說，商會的兩大目標完全互斥，因為中國不可能接受台灣先行加入世貿組織。柯星漢說：「記憶猶新的是，洛克斐勒不只看了商會的備忘錄，還完全吸收瞭解，更想作出回應。我們這才發現，有人聽見商會的訴求」。光榮時刻柯星漢認為，叩門之旅的光榮時刻就在2000年。當年，台灣正處於是否能夠順利加入世貿組織的關鍵點上。所有人都知道，台灣非得讓中國先入會不可，就算是讓個一分一秒都好。但中國偏偏卡在能否獲得美國給予的永久正常貿易待遇（PNTR），亦即最惠國待遇（MFN）。美國國會雖然已經排定表決，以決定是否展延中國的永久正常貿易待遇，但眾議院的多數顯然反對

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for China’s entry was its lack of Permanent Normal Trade Relations (PNTR) – the status previously known as Most Favored Nation (MFN) – with the United States. A vote was coming up in Congress on whether to extend PNTR to Beijing, but it faced considerable opposition in the House of Representatives – some of it coming from strongly anti-Communist supporters of Taiwan. AmCham decided to send a special delegation to Washington to try to convince Congressmen that PNTR would actually be good for Taiwan – both because of the many Taiwaneseinvested companies operating in China and because it was necessary to clear the way for Taiwan to enter the WTO. “Shortly before departing, we had a meeting scheduled with President-elect Chen Shui-bian,” recalls Cassingham. “Hours before the meeting, it occurred to me that if the President-elect were to write a letter in support of PNTR for China, it could make a big difference. I banged out a draft and brought it along to the meeting. After we explained the

idea, Chen said he would consult with his advisers and let us know. Then, right after our arrival in Washington, we learned that he had signed the letter and sent it to the AmCham office. Suddenly we had some ammunition that we had never expected to receive – from the first DPP president, who was not even in office yet. The letter became our lead-off pitch.” In a fairly close vote, the measure passed. China got PNTR treatment, and Taiwan was admitted to the WTO immediately after China on January 1, 2002. In recent years, the Doorknock has focused largely on the following areas: • Suggestions to the U.S. government on what topics should be raised in the bilateral Trade and Investment Framework Agreement (TIFA) talks – and lately, when the TIFA talks have been suspended due to disputes about U.S. beef imports into Taiwan, the argument that such acrossthe-board negotiations should not

展延，而部分眾議員因強烈反共而表示反對。商會決定派出特別代表團前往華府，嘗試說服部分眾議員同意給予中國永久正常貿易待遇，因為如此才能強化台灣利益。不僅是因為許多台商已經進駐中國，也因為台灣非得等待中國入會才能加入世貿組織。柯星漢說：「出發之前，我們已跟總統當選人陳水扁排定會面時間；會面之前，我突然想到，如果陳水扁願意寫信支持中國取得永久正常貿易待遇，那應該足以扭轉局勢。我趕緊擬了草稿，然後帶到會面地點。我們解釋了背後邏輯，而陳水扁說他得先聽聽幕僚意見再做決定。我們剛剛抵達華府，台北就告訴我們，陳水扁已經簽署信函送到商會。突然間，我們有了重量級的背書，這可是民進黨的第一位總統，他甚至還沒就任。叩門之旅的會議就用這封信的內容來開場。」國會最後以差距極微的票數批准中國的永久正常貿易待遇。然後，台灣跟在中國之後，於2002年1月1日加入世貿組織。

2010

2009

2008

doorknock

be held up because of problems in a single sector. • The desirability of the United States and Taiwan negotiating bilateral agreements on investment, taxation, or other matters as building blocks for an eventual Free Trade Agreement. • T h e n e e d t o g i v e h i g h - l e v e l attention to bilateral economic relations through regular visits to Taiwan by U.S. Cabinet officials. • Encouragement to Washington to extend visa waiver treatment to Taiwan visitors to facilitate travel to the United States. • Requests for revision to U.S. income-tax policy on expatriates, which discourages companies from using American citizens overseas. This year’s Doorknock mission, led by AmCham Chairman Bill Wiseman, is scheduled to be in the U.S. capital from October 3 to 7. A report on the trip will appear in the October issue of Taiwan Business TOPICS.

近年的叩門之旅，專注於下列領域：．針對美台貿易暨投資架構協定（TIFA）下的定期談判，商會持續建議應該納入議程的項目；而在TIFA 談判因牛肉問題無限期擱置後，商會的主張轉變為，美台綜合性經貿談判不該受制於單一議題；．美國與台灣應該洽談在投資、稅務與其他經貿議題上的雙邊合作，作為將來達成自由貿易協定的基礎；．以更明確的行動強化美、台雙邊經貿關係，例如美國部長級官員定期訪問台灣；．鼓勵美國給予台灣免簽優惠，以方便民眾赴美；．呼籲美國修改對僑民的課稅規定，因為此一作法形同嚇阻企業雇用美僑。今年美國商會叩門之旅由會長魏世民率領，於10 月3 日至7日訪問華府。叩門之旅的總結報告將刊登在10 月號TOPICS雜誌。

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Taiwan Business TOPICS : AmCham’s Communication Channel BY JANE RICKARDS

rom a club magazine that reported on the results of committee meetings and golf tournaments, Taiwan Business TOPICS has evolved into a serious business publication that keeps AmCham Taipei and the broader international community informed about important issues and trends. Founded in late 1969 as a bimonthly English-language magazine n a m e d Ta i p e i A m e r i c a n C h a m b e r Topics (TACT) with a yearly subscription price of US$6 a year, the magazine from the beginning was the voice of AmCham. For the first few decades, however, the reportage was mainly from the perspective of the minutia of Chamber life, focusing on the personalities of leading AmCham members as much as it did the broader macroeconomic picture. Several pages of each issue of the magazine during this time were devoted to introducing new members of the Chamber, each with a mug shot and blurb. Some are familiar – but younger – faces of people still in the American expat community, such as TOPICS e d i t o r- i n - c h i e f D o n S h a p i r o , w h o joined AmCham in the 1980s as head of a publishing company called Trade Winds. Followers of Taiwan politics

would be interested to see opposition leader and presidential candidate Tsai Ing-wen as a very young new AmCham member in the August-September 1987 issue of TOPICS. She is introduced as a partner in the law firm of Huang and Partners. “Aside from her practice, she is also an associate professor of law at National Cheng-chi University,” the blurb notes. Social events also gained extensive photo coverage. In the August-September 1983 issue, for example, three colorful pages with numerous photos are devoted to July Fourth Festivities, along with a long list of July Fourth committee members. Hsieh Nien Fan was a regular fixture, receiving similar coverage. Local culture was frequently introduced as primarily mainland Chinese culture rather than Taiwanese culture as it is today, with writers referring back to 5,000 years of tradition. Among the feature stories, “How to Manage Your Stress” was a frequent topic – suggesting either that life back then was more stressful or that we now accept that we simply have to live with it. There were also many articles about sightseeing destinations around the island. A trip to Kinmen in December 1982 was made “under the gray flirtations of an ambiguous sky,” TOPICS wrote. (We hope

that TOPICS’ prose, along with its reportage, has since improved.) In 1994, under the leadership of Lynn Sien, then AmCham president and the publisher of TOPICS, the magazine was re-launched as a glossy monthly with some profound changes. The content took on more serious subjects requiring extensive research by the reporters, and the distribution was expanded to include all U.S. Congressmen and Senators, along with all of Taiwan’s major government institutions ranging from the Ministry of Education to the Central Bank. TOPICS was also distributed to members of the Legislative Yuan and various universities, and was made available to the public by selling it in well-established bookstores. The cover story, editorial, and other pertinent articles were translated into Chinese. These changes, says Sien, were meant “to ensure our message was accurately received by ROC officials.” Murray Rubinstein, professor emeritus of history at Baruch College of the City University of New York and an authority on Taiwan, discussed the relaunch in an unpublished paper about TOPICS that was delivered at a conference at Harvard. Referring to the magazine’s transformation, he says:

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“Here we see a very different, more outward looking, more polished and more influence-oriented publication, one that is aimed at both Taiwan’s American expatriate English-speaking community and also the Taiwanese guoyu-speaking business community that it has also begun to serve.” “It gives those on Taiwan, in Greater East Asia and in the larger world of the Pacific Rim and beyond a clear set of pictures of the evolving nature and scope of Taiwan’s socio-economic and political evolution,” Rubenstein added. M o s t i m p o r t a n t l y, s a y s S i e n , TOPICS became required reading in the Office of the United States Trade Representative (USTR), which perused it as much as it did the Taiwan White Paper, first published by the Chamber in 1996. Each month, Sien arranged for a contributor from Washington D.C. to write an editorial. These contributors included Senators and Congressmen, analysts at think tanks, and once a year the head of the Chamber of Commerce of the United States. Sien adds that TOPICS at that point also started its practice of publishing issues around a cover “theme,” such as banking consolidation or over-regulation of the pharmaceutical industry, to give the content more focus.

Under the leadership from1999 to 2008 of Amcham President Richard Vuylsteke, himself a former magazine editor, TOPICS received even more attention as an important communications vehicle for the Chamber. That approach has continued under incumbent President Andrea Wu. After the departure of talented editor Laurie Underwood at the end of 2001, and a brief stint by veteran journalist Anthony Lawrence who later went on to become managing editor of the South China Morning Post, Vuylsteke recruited Don Shapiro, a former Time magazine correspondent then working for the Government Information Office, to be editor-in-chief. After that, says Vuylsteke, the information in the cover stories was often well ahead of the local and foreign press, and the content was detailed and balanced compared with other local English-language media. “It built a reputation for reliability and relevance,” Vuylsteke says, adding that he was proud that the magazine had such a strong readership outside AmCham, including scholars of Asian studies in universities overseas. One noteworthy cover story in 2008, “High Speed, Low Returns,” gained considerable attention for disclosing

the extent of the financial difficulties the Taiwan High Speed Rail Corp., which then owed over US$12 billion in debt, months before the local or foreign media picked up the story. TOPICS, notes Vuylsteke, has also been an effective advocacy tool, and he says he especially took pride in its features on cultural preservation, conservation, and tourism. “These reflected AmCham members’ interest in Taiwan as a whole, as a community that needs to continue promoting quality of life as much as quality of business,” Vuylsteke says. Vu y l s t e k e , n o w p r e s i d e n t o f AmCham Hong Kong, increased TOPICS’ frequency in 2003 from 10 issues a year to 12 by adding special editions for Wine and Dine and Travel and Culture. He recalls the fun that many Chamber staff members had by writing pieces for these special issues. Under Vuylsteke, TOPICS articles also began to be available online on the AmCham website; the online archive reaches back as far as 2001. “TOPICS is a great branding tool for the Chamber,” Vu concludes. “It shows that AmCham considers itself an integral part of the Taiwan community, and that it takes its civic responsibilities seriously.”

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An Eventful Six Decades of Programs

BY DON SHAPIRO

m C h a m Ta i p e i ’s s i g n a t u r e events – particularly the Hsieh Nien Fan banquet to thank Taiwan government officials for their assistance in the previous year, the annual ball, and the U.S. Independence Day celebration – have been a cornerstone of the Chamber’s activities for most of its existence. But they have also gone through considerable evolution over the decades. The first Hsieh Nien Fan was held in January 1970. AmCham members in recent years have grown accustomed to having the President of the Republic of China as the keynote speaker, but in

the 1970s and early 1980s the honor usually went to a Cabinet minister and later to the Premier or Vice Premier. Y.S. Sun spoke at Hsieh Nien Fan a number of times, first when he was Minister of Economic Affairs and later as Premier. Other Premiers to give the keynote address included Yu Kuo-hwa, Hau Pei-tsun, and Vincent Siew. Lee Tenghui was the first President to address an AmCham gathering, and it was made a tradition by Chen Shui-bian, continued by Ma Ying-jeou (who had previously regularly attended Hsieh Nien Fan when he was Mayor of Taipei). For years the event was held at the

Grand Hotel, but more recently it has taken place in the ballroom of either the Grand Hyatt or Regent Taipei, the only hotels with facilities able to accommodate the 500-plus diners the event now attracts. Until 1989, the meal accompanying the Hsieh Nien Fan was a 12-course Chinese banquet, but the “American-style” dinner that year started a tradition of serving U.S. beef and wine. The emcee, Hugh “Bob” Bumpas, got everyone in the mood by wearing a cowboy hat and boots. The annual ball has been going on since at least the late 1960s. Originally named the Christmas Ball, it took on

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AmChAm ACtivities

the less sectarian name of Holiday Ball about a decade ago, before becoming the American Ball in 2008 when the American Institute in Taiwan joined AmCham as a co-sponsor. The event for many years was scheduled to follow the Chamber’s annual general meeting and was used as an occasion to introduce the newly elected Board of Governors and Supervisors to the membership. Instead of the professional dance troupe now hired to enliven the evening, the entertainment was provided by groups from the local community. In 1974, for example, the Rong Shing Children’s Chorus sang songs in both Chinese and English for the 250 assembled guests. Only in recent years was the ball organized around a particular theme, such as “Welcome to the South Pacific” in 2005 and “The Orient Express” in 2008. An exception was 1976, the U.S. bicentennial, when the event was labeled the American 200th Anniversary Gala Ball. According to a report i n T O P I C S , “ t h e t h e m e w a s c a rried throughout the ballroom with red, white, and blue balloons, massive Republic of China and American flags, stars & stripes tablecloths, Bicentennial seal candles, and a giant photo of the White House and a replica of the Liberty Bell on stage.” Dessert was red, white, and blue ice cream. Another special theme was 1989’s “Wassail Feast” featuring a main course of roast pheasant and a tankard of a spiced beer-wine punch at each place setting. Patriotic sentiments did not have to wait for bicentennials, however. Fourth of July celebrations on the grounds of the Taipei American School (first at the Shilin campus, later in Tienmu) were for a long time one of the Chamber’s major events of the year. The daylong affair involved games and sporting events for the whole family, with plenty of hot dogs, hamburgers, and other American fare to eat. But the highlight was the spectacular fireworks display soon after dark. Later, stricter municipal regulations on fireworks led to transformation of the event to its current format of a poolside buffet organized together with the American Club.

AmCham Taipei Chairmen Name

Company

Robert B. Scanland Loris Craig

William Hunt & Co. 1951, 1953 Taiwan Trading Corp. 1952, 1954 *** Northwest Airlines 1965 First National City Bank 1965 Getz Bros. & Co. 1966 General Instrument 1968-69 Gulf Oil 1971 First National City Bank 1971-72 Eli Lilly 1973, 1981 Singer Sewing Machines 1974 Ford Lio Ho 1975 Pacific Glass (Corning) 1976-77, 1986 Gulf Oil 1978 Russin & Vecchi 1979-1980 Chase Manhattan Bank 1982 General Instrument 1983-84, 1990 General Electric 1985 Taiwan Polypropylene 1985 Foremost Dairies 1987 RCA 1988 GTE 1989 Premier Chemical (Uniroyal) 1991-92 General Motors 1993-94 Chemical Bank 1995-96 American Express Bank 1997-98 Perkins Coie 1999-2000 Bank of America 2001 (half year) Texas Instruments 2001-2002 Russin & Vecchi 2002 (half year) Lockheed Martin 2003 United Airlines 2004 Air Products 2005-2006 State Street Bank 2007 Fidelity 2008 (half year) Saatchi 2008 (half year) Corning 2009-2010 McKinsey 2011

Robert O. Smith Robert H. Morehouse Hank Weiner Dave Jones Temple O. Looney Earl W. Glazier Howard R. Giddens Alson A.M. Lee Raymond C.F. Chen Marinus “Dutch” van Gessel James E. Smith Robert P. Parker Carter Booth James R. Klein Robert B. Hoffman Jerry Loupee James K.M. Wang Loren R. Wolter Joseph E. Coffman James O’Hearn William S. Botwick Christian Murck Jeffrey Williams Paul Cassingham Peter Banko Richard Henson Thomas McGowan Gus Sorenson Andrea Wu Tom Johnson Jane Hwang Tai-Chin Tung Christopher Fay Alan Eusden Bill Wiseman

Tenure

AmCham Presidents Name Guy Guh Herbert Gale Peabody Loren R. Wolter Winchell (Jock) Craig Lynn Murray Sien Richard R. Vuylsteke Andrea Wu

Tenure 1971-72 1972-88 1988-89 1990-93 1993-1999 1999-2008 2008-Present

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AmCham Taipei Marks “60 Years of Partnership”

o celebrating its 60th anniversary, AmCham Taipei held a festive cocktail reception on September 14, attended by nearly 400 Chamber 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 other VIP guests in attendance were Secretary General of the National Security Council 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 Hong-yuan. 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. Under Parker’s leadership, AmCham made recommendations to Congress that helped shape the Taiwan Relations Act enacted in 1979. “The Taiwan Relations Act, after 33 years of life, has proved to be a very effective means to maintain our

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anniversary sponsor

partnership,” said President Ma in his remarks. “Thank you, Amcham.” AmCham was also influential in ensuring that institutions important to the expatriate community in Taipei – the Taipei American School, American Club, and a private English-language radio station to replace the departing military network, AFNT– were able to continue operating smoothly. President Ma 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 emphasized the major part AmCham has played in Taiwan’s national development. “Especially in the early years, when Taiwan's economy was just budding,” AmCham member companies were a “source of precious capital and technology, as well as training and job opportunities,” he said. “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.” Speaking by video, Under Secretary Hormats also extended his congratulations 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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Far EasTone: Closing The Distance With its ongoing relentless pursuit of “innovation, service and growth,” Far EasTone is poised to enrich the mobile experiences of consumers with the launch of more integrated information and communications services, as well as technologically superior mobile equipment and quality customer service that will close distances in a mobile world.

Far EasTone to Strengthen the Island’s International Network Far EasTone will continue to build high quality networks throughout the island so as to accelerate 3G network upgrades and expansion of the WiMax network to cater to the ever increasing on-demand needs of users. In addition to building cross-Strait submarine cables, Far EasTone is also collaborating with other international telecommunications companies to enhance the synergistic benefits of an international network. Far EasTone Spares No Efforts on Enterprise Customers In response to the demand from enterprise customers, Far EasTone has launched the FET 8 Enterprise Intelligence services, orchestrating a move that not only perfectly combines cloud, technology and industry practices, but also brings together an alliance of technology vendors to develop a host of intelligent e services. In this way, it is leading the industry in the development of cloud and mobile applications, and opening a new chapter for enterprise users in ICT services. Through the ingenious integration of cloud and technology, the FET 8 Enterprise Intelligence services has successfully been adopted in the areas of medical service, transportation, environmental control, management, office, services, businesses and schools, giving these enterprises a customized competitive edge in information and communications. Far EasTone’s Four Asset Bases Lead Again in the NonVoice Market In addition to the provision of communications hardware, Far EasTone is also working on developing new blue ocean opportunities, and expanding its four main services – FET SMart, FET eBook Town, Omusic, and FET Video Store – so as to retain its non-voice market leadership.

FET SMart – the Benchmark for Quality Chinese Apps The launch of FET SMart in 2009 made history, as it was Taiwan’s first Chinese android market, and today it is still the market leader, regardless of quantity or type. Besides taking the domestic market by storm, Far EasTone expanded beyond the island by collaborating with China Mobile’s Mobile Market to launch store-in-store in November 2010, attracting an assortment of developers from China, Hong Kong, the

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United States, Korea and Japan. By setting the benchmark for quality Chinese apps, SMart has become the icon for ambitious cross-border collaboration among Chinese-language markets. With an eye on the Chinese consumer market, which holds great promises by virtue of its sheer size, Far EasTone is aggressively pursuing the strategy of “one service, two markets.” Through collaborative win-win ventures, Far EasTone is also helping Taiwanese companies who are eager to catch a piece of the action in China and be a beneficiary of the wireless market. Working with these domestic developers, Far EasTone hopes that Taiwanese apps can find their way into the international market arena. FET eBook Town – Revamping Traditional Reading Following the launch of SMart, Far EasTone launched eBook Town in July 2010, making its official foray into the digital book industry. In April 2011, Far EasTone and Taiwan’s largest publishing group, Cite Media, jointly announced the launch of creative cultural cooperation by combining the strengths of Cite Media’s rich content and network business with Far EasTone’s innovative digital expertise. Together, they launched a fashion magazine, Nong Nong, and a digital version of the application named “Bella Nong Nong,” thus providing an interactive experience for readers where text and images are no longer static and one-dimensional. To date, eBook Town has collaborated with 12 major publishing groups and more than 150 publishers, offering a selection of 13,000 books in a book-rental service that is a joint effort with Papyless, Japan’s largest on-line e-bookstore. The result is what has become Taiwan’s largest e-comic platform, with more than 1,000 copies of comics. At present, the number of downloads has reached 1.5 million and membership has exceeded 100,000 individuals.

promoting related Omusic services and in extending this brandnew digital content service to major Chinese-language markets across the world. With the help of this new digital music platform, Far EasTone’s revenue weightage of digital music content in value-added services is expected to exceed 30%. Far EasTone offers a lifestyle of mobility by closing distances and through quality services recognized both domestically and internationally Over the years, Far EasTone has received numerous awards for its dedication to providing high quality services. In June 2006, FarEasTone was named by Asian Mobile News Awards as “Mobile Operator of the Year, Taiwan” and “Most Innovative Mobile Service Campaign,” making Far EasTone the only telecommunications provider in Taiwan to receive two such awards simultaneously. In addition, the effectiveness of Far EasTone’s corporate governance has received repeated affirmation. In both 2007 and 2008, Far EasTone received the “Best Corporate Governance in Taiwan” award by FinanceAsia Magazine. Additionally, in 2009 Far EasTone was honored in the “Best Corporate Social Responsibility” and “Best Investor Relationship” categories in the magazine’s 9th annual survey of Top Asia Companies; in December 2010, Far EasTone became the only Taiwanese telecommunications service provider to be a recipient of the “Best Investor Relations in Asia” award by The Asset magazine; and in April 2011, Far EasTone was awarded the CG6006 premium certification of corporate governance.

Omusic – a digital music platform resulting from collaboration with nine of Taiwan’s major record labels In February 2011, Far EasTone officially launched the Omusic online music store with great fanfare. Many distinguished artistes were there to lend their support. Omusic, a collaboration with nine domestic record companies, provides Far EasTone subscribers with streaming and downloading services of Chinese-language digital music on all kinds of devices, including personal computers, notebooks, tablet PCs, and smartphones. Its unique features include one-stop service, digital single model, immediate use without need for installation, and great compatibility with various devices. FET Video Store to offer a brand new video entertainment experience In addition to SMart, eBook Town, and Omusic, Far EasTone is also extending its business line to include online video. Far EasTone once again collaborated with CatchPlay, Taiwan’s third largest movie rental company, to launch the FET Video Store. In the future, Far EasTone plans to invest heavily in

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Mercer: Global Leader in HR Consulting, Outsourcing, and Investment Services

he year was 1871. A spark in a Chicago barn turned into a raging inferno that burned for two days, destroying more than 17,500 buildings and resulting in damage totaling more than US$20 billion (in today’s money). With few properties insured and most insurers unable to meet their obligations, it was clear that a new type of agency was needed – one that stressed financial responsibility. Within weeks, the Dan H. Bomar Company opened its doors. In 1906, the company was renamed Marsh & McLennan. A publicly traded c o m p a n y o n t h e N e w Yo r k S t o c k Exchange and with headquarters in New York City, Marsh & McLennan Companies is now one of the world’s elite business enterprises – with a 140year history, clients in more than 100 countries, over 51,000 employees, and US$10.6 billion in revenue. It provides such professional services as:

• Risk and Insurance Services Marsh and Guy Carpenter • Consulting Services - Mercer and Oliver Wyman Mercer is a global leader in human resource consulting, outsourcing and investment services, with 65 years of history, offices in over 40 countries, more than 20,000 employees, and US$3.5 billion in revenue from eight lines of business. It ranks as: • #1 as a health & benefits consultant/broker • #1 as an investment consultant • A leader in retirement, risk and financial consulting • Mercer helps more than 27,000 clients with 110 million employees and 9 million benefit plan participants optimize the value of their human and financial resources

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Mercer Taiwan works together with our clients to solve the toughest business challenges by global reach and local expertise, offering the following services: • Retirement, risk and finance (RRF): providing advice and solutions for the full range of issues that affect companies’ retirement plans. We design defined benefit, defined contribution and hybrid plans, and help clients manage related financial and other risks. The work is performed in the context of our clients’ overall workforce planning strategies so that clients may reach their finan-

information capabilities to help improve our clients’ strategic decisions for their human capital assets. We provide best-in-class information, unsurpassed global reach, dedicated supported services, and innovative solutions to help clients optimize business performance. • Human capital (HC): helping organizations globally to optimize their performance by meeting their most critical needs around managing, rewarding, and engaging talent; achieving responsible executive remuneration; and enhancing HR effectiveness.

cial goals and that the value of employees’ retirement benefits is ensured. • Health & benefits (H&B): helping employers of all sizes meet their health and benefit program objectives while controlling costs. We help clients design, manage and administer their health care program, comply with local regulations, and secure coverage to promote the health, security and wellbeing of their employees. • Information product solutions (IPS): bringing together Mercer’s worldwide human resource

For further information, please contact Mercer (Taiwan) Ltd. 4F, 2 Minquan East Road, Sec. 3, Taipei 104, Taiwan. Tel: +886-2-2508 0188 Fax: +886-2-2504 7799 www.mercer.com

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Chunghwa Telecom steadfast to be global corporate citizen

hunghwa Telecom not only actively invests in telecommunications infrastructure and services, but also continues to develop innovative products and services designed to meet the needs of the society, in particularly the disadvantaged. Following Typhoon Morakot that hit southern Taiwan hard in 2009, CHT worked together with the Tzu Chi Foundation to provide community and social services to the affected residents. For the students in the affected areas, for example, CHT provided wellequipped personal computers through which they were provided various afterschool courses by professors from universities in Taipei. With regard to the broader issue of global warming, in 2009 CHT set new targets for energy conservation, with the goal to reduce electricity consumption by 12% by 2012 from 2007 (excluding new business growth related to next-generation Internet facilities).

Together with local vendors, CHT developed intelligent energy network (iEN) and intelligent transportation system services (ITS). The adoption of iEN within CHT proved so popular and efficient that the service was introduced to its corporate customers and overseas markets. Moreover, CHT join the Green Touch Initiative, and makes efforts with overseas operators to reduce energy used by telecommunications networks, which is a achievement of efficiency of its sustainability program. CHT's commitments to energy conservation is not just a corporate goal but also a mission to protect the earth, especially when the growth rates of global population and energy demand are rising. Last but not least, CHT persistently pursues better customer service, and these efforts have been recognized by global organizations. In June 2011, CHT received the 2010 Customer Relation-

ship Excellence Award by APCSC (Asia Pacific Customer Service Consortium), and it received ISO 9001 in 2008, ISO 10002 in 2011 and SGS Qualicert since 2007, and so on. (The ISO 10002 standard is a global standard designed to examine clients’ satisfaction with a firm's handling of complaints.) Other than the customer satisfaction-related awards, CHT also received the Reader’s Digest Trusted Brands Platinum Award for seven consecutive years since 2004. All these awards are proof that CHT is providing quality service to customers. While the telecom industry is competitive and rapidly changing, there’s one thing for sure – CHT will not rest on its laurels in its efforts to become a global corporate citizen. CHT will continue to be the most trusted brand as a telecom and ICT service provider in Taiwan and will commit itself to corporate social responsibility for the good of society.

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Taiwan’s market leader in mobile, broadband and fixed line services #1 brand with high quality service and network

Investment Thesis: Building Sustainable Value Differentiating Factors • Leading Position in Customer Access • Extensive Product Portfolio with High Quality Services • Branding & Scale Advantages • Advanced Network & Technology Capabilities • Financial Strengths

Create Long-term Sustainable Shareholder Value

GROW Differentiating Factors • Satisfy mobile customer demand for high-quality access and services for increasingly sophisticated usage needs • Invest in innovation to drive the next wave of broadband development and transformation from pure telecom operator • Step up commitment in preserving environment and social responsibilities

New Business Initiatives for Future Growth : Convergence Services Services launched: Music (hifree, KKBOX), Video (Sports, Movie), News,Micropayment , Weather, Surveillance, Multimedia Phone etc. Cloud-based multi-screen services available by 2011: Micropayment, Video (Movie), Weather, News, Music Corporate ICT Business Focus on ICT business line and government project: – ICT business line including ITS, iEN, information security, PBX, call center, billing VAS and IDC – Corporate ICT-related revenue: 15.4% yoy growth for 2010, expected to grow 23% for 2011 Cloud Computing Offer services to Public Cloud customers such as SME, public users and to Private Cloud customers including enterprises and government

Taiwan’s Telecom Leader – Solid Performance Integrated Services Provider with Dominant Market Positions 2010 Unaudited Consolidated Revenue: NT$202.49 bn

20%

Mobile VAS Revenue % 15.1%

15%

11.8% 9.7%

10%

7.0%

Internet 12.1%

Others 1.3%

2007

Mobile 44%

Domestic fixed 34.9%

Int’l Fixed 7.7%

Taiwan’s #1 Mobile Services Provider: • Maintain mobile leadership by acquiring customers, minimizing churn rate, and increasing user loyalties via compelling user experiences • Create value via smartphone and tablets services • Increase mobile VAS revenue by offering customized and integrated Hami VAS services with mobile Internet tariff plans over 3.5G+Wi-Fi networks • Provide alternative network by accumulating Wi-Fi APs totaled 10,000 by 2010, expect net add 10,000 by 2011 For more information visit: www.cht.com.tw/ir

2008

2009

2010

Taiwan’s #1 Broadband and Internet Service Provider: • Migrate ADSL subs to FTTx to offer services including HDTV, remote surveillance and cloud storage, etc. • Focusing on 50Mbps service in 2011 • Continue offering differentiated services such as hifree, MOD HD, cloudbox etc. Revenue of Fixed Line Broadband 6,000

ADSL

FTTx

5,000

52.4% 48.9% 46.1% 42.5% 40.0% 38.3% 4,000 3,000 2,000 1,000 47.6% 51.1% 53.9% 57.5% 60.0% 61.7% 0

3Q 09

4Q 09

1Q 10

2Q 10

3Q 10

Dr. Shyue-Ching Lu, Chairman & CEO “ We are pleased to report another year of solid performance. Total consolidated revenue for 2010 reached NT$202.5 billion, with the increase mainly driven by stronger mobile VAS, handset sales and internet services. We have several major achievements in 2010. The popularity of the smartphone and the economic recovery resulted in higher traffic volume, which in turn boosted the momentum of telecom industry growth. In addition to our traditional telecom service offering, we successfully launched selected Information and Communications Technology (ICT) services and were delighted to be awarded major contracts. We also introduced new initiatives relating to ICT and converged services, and were able to offer customers configured cloud computing and consolidated and repackaged solutions.”

4Q 10

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Celebrating The Past, Looking To The Future: The ROC Marks Its 100th Anniversary p ho t o s : Co urt es y o f rep uB li C o f Chi n a Cen t en ary fo un dat i o n

t o u r i s m B u r e a u , r e p. o f C h i n a

isitors to Taiwan, if they've been inside a post office or a bank, may have noticed something curious. Throughout the island it is not 2011, officially speaking, but rather the year 100. The Republic of China (ROC), the country that administers Taiwan plus outlying islands such as Kinmen and Matsu, is now exactly a century old. The events of late 1911 were a watershed. By consigning the ancient system of dynastic succession to the history books, the Xinhai Revolution set in motion a drive toward modernization that has not only brought economic success and prosperity to Taiwan, but in recent years has seen rapid economic growth on the other side of the Taiwan Strait as well. To celebrate this historical landmark and promote Taiwan around the world, commemorations are already underway. These events will reach a climax later this year. Rather than mark the anniversary with military parades and other demonstrations of state power, the centennial festivities have been designed to emphasize the core

values of modern ROC society – democracy, freedom, and creativity. The events also highlight Taiwan’s breathtaking natural scenery, sporting achievements, delectable cuisine, and vigorous cultures. After more than 200 years as a backwater of China's Qing Empire, Taiwan became a colony of Japan in 1895. Following Japan's surrender at the end of World War II, the island's status changed again, to that of a province of the ROC. It was then a largely agricultural island of six-and-a-half million people; there was just one university, and no proper road link between the western and eastern halves of the island. Four years later, in 1949, China's civil war forced the ROC government to relocate to Taipei. The almost two million mainland Chinese refugees who arrived around the same time added hugely to the diversity and skills base of Taiwanese society. Fast forward six decades, and Taiwan is a dynamic high-tech society of 23 million. Citizens choose their president, lawmakers, and mayors through free and fair elections. Visiting businesspeople and tour-

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ists zip from one corner of the island to another in just a few hours by freeway or high-speed train. Thousands of non-governmental organizations assist the less fortunate and campaign for reforms. As Taiwan grows in confidence, the ROC Tourism Bureau's efforts to attract foreign visitors have proved highly successful. This year, “The Heart of Asia” is expected to see a record 6.5 million arrivals, almost a million more than last year and a big leap from the 2009 total of 4.39 million. To celebrate the centennial and inspire potential visitors, the Tourism Bureau has devised 100 unique itineraries covering 10 themes. These include sports (especially cycling), nature and eco-tourism, shopping, hot springs (of which Taiwan has more than 120), aboriginal culture, and hiking in the high mountains. Other themes reflect the richness of Taiwan's Chinese culture, its lively festivals, and its vibrant blend of religions. For fans of Taiwan's singers and actors – much adored throughout the Chinesespeaking world – there's a celebritytracking itinerary. And no visitor to

Taiwan should leave without trying some of the island's fabulous snack foods or its world-class teas. The itineraries incorporate food, lodging, and transportation suggestions, and build on major events such as the Lantern Festival and the Taiwan Cup cycling competition. “One Hundred New Itineraries” for the country's 100th birthday is just one aspect of the Tourism Bureau's strategy. Another, “Experience Taiwan's Dynamic Flavors,” highlights the island's great diversity by promoting everything from its Japanese colonial heritage to honeymoon packages and water sports. The third, “Warm & Value-added Service,” aims to make traveling in Taiwan even more convenient by collecting and publishing GPS coordinates for sites of interest. Working with the Tourism Bureau and other government agencies, the official Republic of China Centenary Foundation has mapped out a full schedule of anniversary events. Several have already been completed. On January 1 this year, for instance, ROC President Ma Ying-jeou officiated over a mass wedding of 100 couples in

front of the Presidential Office. On July 26, the Ministry of Economic Affairs' Bureau of Foreign Trade and TAITRA (Taiwan External Trade Development Council) jointly announced a list of 100 brands that exemplify the ROC's strengths in design and manufacturing. Among them are high-tech enterprises well known in other countries, such as computer companies Acer and Asus, as well as HTC, one of the world's top five makers of smart phones. Foodie tourists will know two of the brands: Din Tai Fung, a noted dumpling restaurant, and Black Bridge, a delicatessen chain synonymous with sausages, dried meats, and other gourmet comestibles. Kinmen Kaoliang, the ROC's most famous alcoholic product and now in great demand on the Chinese mainland, is also featured. Prominent in a very different category is Buddhist Tzu Chi General Hospital, a renowned medical center that is positioning itself as one of the region's leading destination for healthcare tourists. Among the companies representing Taiwan's cultural and creative industries are animation specialists Digimax

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and the Eslite chain of bookstores, plus two glassware and crystal arts studios that souvenir buyers may well recognize: Tittot and Liuili Gongfang. On August 23, the inaugural tolling of the ROC Centennial Peace Bell was attended by local and international VIPs. At the same moment, bells in more than 200 schools, churches, and temples in Taiwan were rung in unison, as were bells as far afield as Japan, Korea, and Switzerland. A symbol of humanity's eternal desire for peace, the two-meter-high bell was designed by Kris Yao, a prizewinning Taiwanese architect. The word for “peace” in 111 different languages has been etched on the surface of the bell, which was cast from recycled artillery shells and shell cases. As every ROC citizen knows, August 23 is a date full of historical significance. On that day in 1958, Chinese Communist forces launched a ferocious bombardment of Kinmen, an ROC-controlled island group just a few kilometers from the coast of mainland China. A confrontation between Communist China and the United States looked likely until the ROC's unswerving defense of the islands led to an unofficial ceasefire following 44 days of shelling. Some centennial events are ongoing. A 100-city torch relay marking the 100th anniversary of the Wuchang Uprising, the rebellion that ignited the Xinhai Revolution, started on March

29 in Honolulu. The Hawaiian capital has a unique historical link with the Republic of China; it was here that ROC founding father Dr. Sun Yat-sen was educated between the ages of 13 and 17. The relay – organized by the Overseas Compatriot Affairs Commission, the branch of the ROC government that serves as a bridge between Taiwan and ethnic Chinese around the world – is now touring Taiwan. The final leg, scheduled for October 9, will feature runners from different generations carrying the torch from the National Sun Yat-sen Memorial Hall to Taipei Arena, where a variety show will be held. The next few months will see a blend of cultural spectacles and more somber events. October 10, often

called “Double Ten Day,” is a national holiday in the ROC because it is the anniversary of the start of the Wuchang Uprising. Local and overseas dignitaries will mark the day by raising the ROC flag and singing the national anthem. President Ma will address the nation, after which parades and performances will celebrate every aspect of Taiwanese society. After dusk, the traditional Double Ten Day fireworks display will light up the skies above Lugang in the central county of Changhua. Throughout October, the National Palace Museum – the world's leading collection of Chinese arts and antiques – will be the venue for celebrations relating to the grand opening of a new cultural landmark, the National Museum of Taiwan History. The latter will host displays detailing the influence foreign countries have had on Taiwan and how the island's various ethnic groups have interacted and melded. Located in Tainan, Taiwan's historic former capital, the new museum will also serve as a research base. On November 5, a record 10,500 people are expected to take part in the 2011 Taroko Gorge Marathon, arguably the world's most scenic longdistance race. The full 42.195-kilometer route will take runners through the gorge's most sublime spots, including the Swallows Grottos and the Tunnel of Nine Turns. Centennial events go beyond recalling the past and celebrating the present. The “Taiwan 2030 Project” is set to be

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a wide-ranging and thought-provoking discussion about how the nation can best develop over the next two decades. At the same time, the “Time Capsule of Taiwan’s Kids” activity will assemble a multimedia package of images, video, and sounds that is to be buried, then dug up in 20 years' time so those yet to be born can understand the values and traditions of young people today. Performing arts shows in honor of the ROC's birthday range from the high-brow to the unashamedly popular. Chosen to appeal to different age groups and to represent every segment of the country's ethnic and linguistic spectrum, they include Taiwanese and Chinese opera, comedy, and puppetry, as well as music and drama. Taichung, the largest city in central Taiwan, will mark October 10 with a “Birthday Party for One Hundred Years of Artistic Taiwan.” Anyone interested in seeing a modern aboriginal musical should go to the plaza between Taipei's National Theater and Concert Hall (NTCH) on October 1 or 2, where “You Do Not Respect Me” will be performed. On November 12, Kaohsiung will host a concert called “One Hundred Dream Songs for the Future.” On November 26, PiLi Puppet Troupe will perform in Kaohsiung's Weiwuying Arts and Culture Center, and admission will be free. PiLi is famous for a modernized and very exciting form of glove puppet theater (budaixi) which incorporates spectacular stage sets, pyrotechnics, dry ice, and innovative sound effects. The Hakka-language children's musical “Hey! A Brighter Summer

Day” will be performed on December 17 at the NTCH plaza. Again, admission will be free. A permanent reminder of the centennial celebrations will be erected in Taipei's Huashan 1914 Creative Park. A six-meter-tall stainless steel “tree” inscribed with the names of 1,500 non-Chinese who have made great contributions to Taiwan, it will honor the likes of George L. Mackay (18441901). A Canadian missionary who spent more than half his life on the island, Mackay is fondly remembered for his pioneering work in the fields of medical care and education. T h e “ G r a t i t u d e Tr e e ” w i l l b e unveiled on December 10, International Human Rights Day. The Foundation of Taiwan Organizations for Philanthropic

Education, the body in charge of the project, is currently sifting nominations in four categories: Medicine and public health, social welfare, education and culture, and democracy and human rights. The foundation is also planning to promote a website, TV programs, and books about the most influential foreigners in the country's history. Scheduled for the last day of 2011, the activity “Moving Taiwan towards the Future” fits perfectly in an era when social-networking sites are used to mobilize as well as inform and entertain. Using advanced technology and aiming to build environmental awareness, the organizers hope that more than a million people will be inspired to simultaneously move clockwise around the ROC coastline. Participants will start from thousands of different locations throughout the country, and supporters around the world will be able to track their progress via the Internet. This unique mass exercise will demonstrate the determination, unity, and healthy lifestyles of the people of Taiwan as they move toward the future. The organizers also hope it will qualify for the Guinness Book of World Records.

For full details of the Republic of China's centennial celebrations, visit the Republic of China Centenary Foundation's website (http://www.taiwanroc100.org.tw). For news and general information about the Republic of China on Taiwan, go to the websites of the Government Information Office (http://www.gio.gov.tw) or the Tourism Bureau (www.taiwan.net.tw). Alternatively, call the 24-hour tourist information hotline (0800-011-765, toll free within the ROC).

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