President Ma's May 20 Inaugural Address

On Tuesday, March 20, Taiwan's new President Ma Ying-jeou was sworn into office. The following is a transcripted of President Ma's inaugural address, as posted on the Taiwan GIO's website for the inauguration.

Taiwan's Renaissance
Ma Ying-jeou, President of the Republic of China (Taiwan)

Heads of State of Our Diplomatic Allies, Distinguished Guests, Overseas Compatriots, My Fellow
Taiwanese, and Dear Friends in front of a Television Set or Computer: Good Morning!

I. Historical Significance of the Second Turnover of Power

Earlier this year on March 22, through the presidential election of the Republic of China, the people changed the course of their future. Today we are here not to celebrate the victory of a particular party or individual, but to witness Taiwan pass a historic milestone.

Taiwan's democracy has been treading down a rocky road, but now it has finally won the chance to enter a smoother path. During that difficult time, political trust was low, political maneuvering was high, and economic security was gone. Support for Taiwan from abroad had suffered an all-time low. Fortunately, the growing pains of Taiwan's democracy did not last long compared to those of other young democracies. Through these growing pains, Taiwan's democracy matured as one can see by the clear choice the people made at this critical moment. The people have chosen clean politics, an open economy, ethnic harmony, and peaceful cross-strait relations to open their arms to the future.

Above all, the people have rediscovered Taiwan's traditional core values of benevolence, righteousness, diligence, honesty, generosity and industriousness. This remarkable experience has let Taiwan become "a beacon of democracy to Asia and the world." We, the people of Taiwan, should be proud of ourselves. The Republic of China is now a democracy respected by the international community.

Yet we are still not content. We must better Taiwan's democracy, enrich its substance, and make it more perfect. To accomplish this, we can rely on the Constitution to protect human rights, uphold law and order, make justice independent and impartial, and breathe new life into civil society. Taiwan's democracy should not be marred by illegal eavesdropping, arbitrary justice, and political interference in the media or electoral institutions. All of us share this vision for the next phase of political reform.

On the day of Taiwan's presidential election, hundreds of millions of ethnic Chinese worldwide watched the ballot count on TV and the Internet. Taiwan is the sole ethnic Chinese society to complete a second democratic turnover of power. Ethnic Chinese communities around the world have laid their hopes on this crucial political experiment. By succeeding, we can make unparalleled contributions to the democratic development of all ethnic Chinese communities. This responsibility is ours to fulfill.

II. Mission of the New Era

The new administration's most urgent task is to lead Taiwan through the daunting challenges from globalization. The world economy is changing profoundly, and newly emerging countries are arising rapidly. We must upgrade Taiwan's international competitiveness and recover lost opportunities. The uncertainty of the current global economy poses as the main challenge to the revitalization of Taiwan's economy. Yet, we firmly believe that, with right policies and steadfast determination, our goals are within our grasp.

Islands like Taiwan flourish in an open economy and wither in a closed one. This has been true throughout history. Therefore, we must open up and deregulate the economy to unleash the vitality of the private sector. This will strengthen Taiwan's comparative advantages. Taiwan's enterprises should be encouraged to establish themselves at home, network throughout the Asia-Pacific region, and position themselves globally. Taiwan's labor force must learn to adapt to rapid technological changes and industrial restructuring. Our youth must develop character, a sense of civic duty, global perspectives and lifelong learning capabilities. All forms of political interference in education must be eradicated. In this era of globalization, the government must satisfy the basic needs of the underprivileged and create opportunities for them to develop. While pursuing growth, we must seek environmental sustainability for Taiwan and the rest of the world.

The new administration must also restore political ethics to regain the people's trust in the government. We will endeavor to create an environment that is humane, rational and pluralistic-one that fosters political reconciliation and co-existence. We will promote harmony among sub-ethnic groups and between the old and new immigrants, encourage healthy competition in politics, and respect the media's monitoring of the government and freedom of the press.

The new administration will push for clean politics and set strict standards for the integrity and efficiency of officials. It also will provide a code for the interaction between the public and private sectors to prevent money politics. I hope every civil servant will keep in mind: "Power corrupts, and absolute power corrupts absolutely." The KMT will honor its sincere commitment to accountability in governance. The new government will be for all the people, remain non-partisan and uphold administrative neutrality. The government will not stand in the way of social progress, but rather serve as the engine that drives it.

As President of the Republic of China, my most solemn duty is to safeguard the Constitution. In a young democracy, respecting the Constitution is more important than amending it. My top priority is to affirm the authority of the Constitution and show the value of abiding by it. Serving by example, I will follow the letter and the spirit of the Constitution, especially the separation of powers. We must ensure that the government is based on the rule of law. The Executive Yuan must answer to the Legislative Yuan. The Judiciary must guarantee the rule of law and protect human rights. The Examination Yuan must make the civil service sound. The Control Yuan must redress mistakes by the government and censure malfeasance by civil servants. All told, we must take this opportunity to re-establish a robust constitutional tradition.

Taiwan has to be a respectable member of the global village. Dignity, autonomy, pragmatism and flexibility should be Taiwan's guiding principles when developing foreign relations. As a world citizen, the Republic of China will accept its responsibilities in promoting free trade, nonproliferation, anti-global warming measures, counter-terrorism, humanitarian aid, and other global commons. Taiwan must play a greater role in regional cooperation. By strengthening economic relations with its major trading partners, Taiwan can better integrate itself in East Asia and contribute more to the region's peace and prosperity.

We will strengthen bilateral relations with the United States, our foremost security ally and trading partner. Taiwan will continue to cherish its diplomatic allies and honor its commitments to them. We will expand cooperation with like-minded countries. On top of that, we will rationalize our defense budget and acquire necessary defensive weaponry to form a solid national defense force. At the same time, we are committed to cross-strait peace and regional stability. The Republic of China must restore its reputation in the international community as a peace-maker.

I sincerely hope that the two sides of the Taiwan Strait can seize this historic opportunity to achieve peace and co-prosperity. Under the principle of "no unification, no independence and no use of force," as Taiwan's mainstream public opinion holds it, and under the framework of the ROC Constitution, we will maintain the status quo in the Taiwan Strait. In 1992, the two sides reached a consensus on "one China, respective interpretations." Many rounds of negotiation were then completed, spurring the development of cross-strait relations. I want to reiterate that, based on the "1992 Consensus," negotiations should resume at the earliest time possible. As proposed in the Boao Forum on April 12 of this year, let's "face reality, pioneer a new future, shelve controversies and pursue a win-win solution." This will allow us to strike a balance as each pursues its own interests. The normalization of economic and cultural relations is the first step to a win-win solution. Accordingly, we are ready to resume consultations. It is our expectation that, with the start of direct charter flights on weekends and the arrival of mainland tourists in early July this year, we will launch a new era of cross-strait relations.

We will also enter consultations with mainland China over Taiwan's international space and a possible cross-strait peace accord. Taiwan doesn't just want security and prosperity. It wants dignity. Only when Taiwan is no longer being isolated in the international arena can cross-strait relations move forward with confidence. We have taken note that Mr. Hu Jintao has recently spoken on cross-strait relations three times: first, in a conversation of March 26 with US President George W. Bush on the "1992 Consensus"; second, in his proposed "four continuations" on April 12 at the Boao Forum; and third, on April 29 when he called for "building mutual trust, shelving controversies, finding commonalities despite differences, and creating together a win-win solution" across the Taiwan Strait. His views are very much in line with our own. Here I would like to call upon the two sides to pursue reconciliation and truce in both cross-strait and international arenas. We should help and respect each other in international organizations and activities. In light of our common Chinese heritage, people on both sides should do their utmost to jointly contribute to the international community without engaging in vicious competition and the waste of resources. I firmly believe that Taiwan and mainland China are open minded enough to find a way to attain peace and co-prosperity.

In resolving cross-strait issues, what matters is not sovereignty but core values and way of life. We care about the welfare of the 1.3 billion people of mainland China, and hope that mainland China will continue to move toward freedom, democracy and prosperity for all the people. This would pave the way for the long-term peaceful development of cross-strait relations.

The damage from the recent earthquake in Sichuan was shocking. All Taiwanese have expressed deep concern and offered immediate emergency assistance. We offer our deepest condolences to the earthquake victims and pay homage to the rescue workers. May the reconstruction of the affected area be completed at the earliest time possible!

III. Taiwan's Legacy and Vision

Upon being sworn in, I had an epiphany about the significance of accepting responsibility for the 23 million people of Taiwan. Although I have never felt so honored in my life, this is the heaviest responsibility that I have ever shouldered. Taiwan is not my birthplace, but it is where I was raised and the resting place of my family. I am forever grateful to society for accepting and nurturing this post-war immigrant. I will protect Taiwan with all my heart and resolutely move forward. I'll do my very best!

For over four centuries, this island of ours has welcomed waves of immigrants, nurturing and sheltering us all. It has provided us, our children and grandchildren, and the generations to come a safe haven. With its lofty mountains and vast oceans, Taiwan has invigorated us in mind and spirit. The cultural legacies we inherited over time not only survive on this land, but flourish and evolve, creating a pluralistic and vigorous human landscape.

The Republic of China was reborn on Taiwan. During my presidency, we will celebrate the 100th anniversary of the founding of the Republic of China. This democratic republic, the very first in Asia, spent a short 38 years on the Chinese mainland, but has spent nearly 60 years in Taiwan. During these last six decades, the destinies of the Republic of China and Taiwan have been closely intertwined. Together, the two have experienced times good and bad. On the jagged path toward democracy, the ROC has made great strides. Dr. Sun Yat-sen's dream for a constitutional democracy was not realized on the Chinese mainland, but today it has taken root, blossomed and borne fruit in Taiwan.

I am confident about Taiwan's future. Over the years, I have traveled to every corner of the island and talked with people from all walks of life. What impressed me most was that the traditional core values of benevolence, righteousness, diligence, honesty, generosity and industriousness could be seen everywhere in the words and deeds of the Taiwanese people regardless of their location and age. These values have long been ingrained in their character. This is the wellspring of our progress, also lauded as the "Taiwan Spirit."

One can see that Taiwan is blessed with an excellent geographic location, precious cultural assets, a maturing democracy, innovative entrepreneurship, a pluralistic society, active civic groups, patriotic overseas compatriots, and new immigrants from all over the world. We should couple the "Taiwan Spirit" with our comparative advantages and the principle of "putting Taiwan first for the benefit of the people." This way we can transform our homeland-Taiwan, Penghu, Kinmen and Matsu-the envy of the world.

To revive Taiwan requires the efforts of both the government and the people. We need the expertise of the private sector, cooperation among all political parties, and participation by all the people. My dear compatriots, from this moment on, we must roll up our sleeves to build up our homeland. Together, we can lay a solid foundation of peace and prosperity for our children, grandchildren and the generations to come. Let's work hand in hand for our future!

My dear compatriots, please join me:

Long live Taiwan's democracy!

Long live the Republic of China!

Thank you!

Things Can Happen Pretty Fast. . .

Anyone who's ever read this blog is, in all likelihood, already aware that the cross-Strait situation has been through a wave of news cycles and developments over the past few weeks. As news poured in, it was a monumental effort just to keep up and make sense of it all.

First there were reports released by the U.S. Departments of State and Defense on the P.R.C. Then the Olympic/human rights situation in China boiled over and took center stage in international news coverage as the Chinese government cracked down on political dissidents in Tibet and all over China. Those were followed by a rejuvenated call for boycotting the 2008 Beijing Olympics, a topic that any realist a month ago would have shrugged off as a hopeless fringe position.

Finally, this past weekend, the people of Taiwan elected a new president in their fourth direct presidential elections. President-elect Ma Ying-jeou of the KMT is set to be sworn into office on May 20.

Prior to all that, there had been a bit of a lull in cross-Strait relations developments. All parties involved had already voiced their positions and the news focused mainly on developments in Taiwan's domestic politics and the presidential race--crucial indeed, but not the central focus here at R.O.C. the Boat. Now, with Taiwan's next leader chosen and the many recent developments over the past week or so, we'll probably be playing a lot of blogger's catch-up as our head slowly stops spinning.

Your Taiwan Sports and Business Section

We felt like some light blogging to ease back into things after a long hiatus. Here is some Taiwan-related news we found interesting while trolling around the internet this morning:

Taiwan on the Olympic Home-stretch

Apparently Taiwan's national baseball team has an excellent shot at qualifying for the already semi-notorious Beijing '08 Summer Olympics. Perhaps adding to that notoriety is the fact that, in the event that they do qualify, Taiwan's world-class ball players will be forced to don "Chinese Taipei" uniforms in Beijing, as do all of their compatriots who compete in the Olympics. The good news for Taiwan baseball, however, is that Taiwan is making its Olympic bid on home turf. From Reuters:

Baseball-mad Taiwan is heading for the home plate in their quest for an Olympics berth after making a solid start to a qualification tournament being held in the centre of the island.

Taiwan, who have won three of their four games, will know by Friday whether the island's fans can watch their team at the Beijing Games in August.

. . . .

This week, Taiwan are facing off against seven countries for one of the three berths available at the International Baseball Federation's final Olympic qualifying tournament.

The hosts have beaten Germany, Italy and Mexico but lost to Canada in a volatile encounter that went to an extra inning and ended in a mass brawl.

Taiwan are next scheduled to play Australia on Wednesday, South Africa on Thursday and a strong South Korea, who are 4-0, on Friday.

Although local athletes are likely to qualify for other events, baseball is by far the most dominant and popular sport in Taiwan.

"Baseball is so important that if we're not in the Olympics, people will be very disappointed," said Richard Lin, secretary general of the island's Amateur Baseball Association.

"It's our national sport and this chance at the Olympics is hard to get."

Olympics hosts China will be joined in Beijing by the United States, Cuba, the Netherlands and Japan, as well as the three qualifiers from the Taiwan competition.

We're sure we don't have to go into detail on how incredible it would be for 'Chinese Taipei' to beat China's baseball team in the Beijing Olympics. We also wouldn't be surprised if, for just this reason, the organizers do their best to make the likelihood as small as possible of Taiwan's ball players facing China's in competition. Of course, we can't get ahead of ourselves--Taiwan needs to qualify first. We'll see what happens. . .


Business: Taiwan Semiconductor and other firms announced plan to pump $450 million U.S. into tech infrastructure

That's a big, honkin' investment by anyone's standards, and hopefully it will do much to maintain Taiwan's leading position as a leader in global IT manufacturing. From Bloomberg:

Taiwan Semiconductor Manufacturing Co., the world's largest custom-chip maker, and two other semiconductor producers will invest a combined NT$450 billion ($14.7 billion) in five new factories as the market expands.

Taiwan Semiconductor, Powerchip Semiconductor Corp. and Vanguard International Semiconductor Corp. will spend the money in the next two years to build the plants in Hsinchu Science Park, northern Taiwan, the park's management said in a statement distributed at a ground-breaking ceremony today.

Chipmakers in Taiwan are increasing capacity to gain market share from rivals including Korea's Samsung Electronics Co. as demand rises for semiconductors used in computers and electronics such as digital music players. Global chip shipments will probably climb 24 percent this year, Daiwa Institute of Research Ltd. said in a report in January.

``There will be a chip shortage from the fourth quarter of this year,'' Powerchip Chairman Frank Huang said at the ceremony.

Taiwan Semiconductor and Powerchip will construct two factories each, while Vanguard will build one, said Huang Der-ray, director-general of the Hsinchu Science Park Administration. The plants will cut semiconductors from silicon wafers measuring 12 inches in diameter. The investments will create 10,000 jobs in Taiwan, the statement said.

Taiwan Semiconductor climbed 2 percent to NT$62.4 in Taipei trading today, while the benchmark Taiex index gained 1 percent. Powerchip shares fell 1.2 percent and Vanguard added 0.5 percent.

If you jump over to the story on its original page at Bloomberg's site, they have a breakdown of the planned spending. Nothing like some good financial news to brighten your day. So there you have it, some warm and fuzzy news today as Taiwan keeps it competitive in business and baseball.

More on Trade

Courtesy of Taiwan Image.

We assume that, by now, every English-language Taiwan blog out there has the scoop on R.O.C. the Boat when it comes to American Enterprise Institute and Armitage International's much welcome report released last week, by Dan Blumenthal and Randall Shriver. The report is a product of the work of the Taiwan Policy Working Group, which a joint project by the two Washington foreign policy organizations. The report makes many solid recommendations for ways in which the Taiwan-U.S. relationship can be strengthened for the good of their alliance as well as for the health and stability of cross-Strait relations in general. Not surprisingly, trade was part of the recommended agenda:

The United States and Taiwan can strengthen their economic ties to the benefit of both economies. The two economies already share a strong partnership, but as Taiwan's leadership in computer components and next-generation telecommunications technology indicates, there is much room for further growth.
. . . .

A U.S. Taiwan FTA would have bilateral economic and strategic benefits, and it could also provide economic benefits to the region by fostering inter-Asian trade liberalization. U.S. action could have a positive domino effect on other countries, such as Japan, that do not want to see Taiwan excluded from the Asian economic arrangements for both economic and political reasons.

Just a brief excerpt from the good deal that the report had to say about the benefits of trade between Taiwan and the U.S. and the greater benefits a bilateral free trade agreement would bring.

Taiwan's Chief Negotiator, Mr. John Deng from the Office of Trade Negotiations in the Ministry of Economic Affairs (MOEA), is ready to talk turkey with the office of the USTR to get an agreement hammered out. Unfortunately, there are three other bilateral FTAs pending in Congress and public sentiment towards free trade is beginning to cool (to use a gentle term). In the following short piece by Chief Negotiator Deng, "Looking Forward to a U.S.-Taiwan FTA," provided by the MOEA's office in Washington, D.C., Mr. Deng concisely lays out the case for such a trade agreement and calls on American voters to voice their support for a Senate Concurrent Resolution designed to nudge the process along:

Looking Toward a U.S.-Taiwan FTA
Mr. John Chen-Chung Deng
Chief Negotiator, Office of Trade Relations
Ministry of Economic Affairs, Republic of China

In late December, Senators Max Baucus (D-MT) and Jon Kyl (R-AZ) introduced Senate Concurrent Resolution 60, thereby demonstrating continued support in the U.S. Congress for the negotiation of a Free Trade Agreement (FTA) between the United States and Taiwan. Taiwan is grateful to these Senators for their action, and for the longstanding support and friendship of the United States. A U.S.-Taiwan FTA would ensure continued prosperity for Taiwan, and would bring with it many economic benefits for U.S. exporters as well.

Taiwan and U.S. Trade

In recent years, Taiwan has worked with the United States and the World Trade Organization to develop world-class labor standards, environmental safeguards and strong protections for intellectual property rights. Trading with Taiwan means supporting the values of a responsible member of the world community.

Despite a comparatively large level of trade, the U.S. and Taiwan feature different and largely complementary manufacturing bases. For instance, Taiwan produces almost three-quarters of the world’s laptop computers and LCD monitors, as well as four-fifths of the world’s PDAs, often incorporating U.S. technology and design specifications. Taiwan is also a major customer for U.S. exporters and is the largest per capita buyer of several important U.S. farm products including corn, soybeans, meat and wheat. A recent study shows that the FTA would increase U.S.
exports to Taiwan by an estimated $ 6.6 billion annually.

A U.S.-Taiwan FTA, however, would enhance economic opportunities far beyond our
two economies alone. With the strong American business presence in Taiwan, the FTA would encourage U.S. businesses to use Taiwan as a base of operations in Asia, and establish bilateral alliances with Taiwan’s entrepreneurs to explore business opportunities in third markets. Such trends would help to enhance U.S. trade relations with other Asian economies, while also ensuring a strong U.S. economic presence in the region.

Why a U.S.-Taiwan Free Trade Agreement?

Competition among Asian economies is fierce. In order to stay competitive, Asian nations are pursuing FTAs with their key trading partners. These FTAs are often sought not only for their economic benefit, but also for their political and security
significance. Taiwan, however, continues to be excluded from these FTAs as a result of China’s intention to isolate Taiwan from the global trade community. With both the U.S. and Taiwan being members of the World Trade Organization, the reality is that no impediment exists to their establishing closer economic relations through a mutually beneficial trade agreement.

The U.S. and Taiwan have a longstanding friendship stretching back over 60 years. As a result of U.S. engagement and influence, Taiwan was able to emerge as a democracy late last century. Democracy, however, requires economic prosperity. An FTA with the United States would ensure that Taiwan continues to remain prosperous, and that its democracy remains healthy. With this in mind, I wish to call on our friends in the U.S. to support the Concurrent Resolution as introduced by Senators Max Baucus (D-MT) and Jon Kyl (R-AZ).

2008 White House budget proposal: new digs for AIT?

Word on the street is that the White House's proposed budget for next fiscal year will be picked apart by Congress and that the end product will ultimately be a very different tome from the e-document released on Monday. One thing that employees of the American Institute in Taiwan will undoubtedly be keeping their fingers crossed for during this process is the $60 million allocated to them in the proposed budget for the purposes of building a new headquarters in Taipei. The Taipei Times reports:

When added to money previously raised, the funds will provide a total US$171.6 million for the new office complex, the department said. After the lease was signed, the cost estimate for the complex was US$160 million.

The money will come from the State Department's Strategic Capital program, which covers projects needed for "strategic, policy or political considerations," it said.

Also, mirroring persistent complaints by AIT staff about the condition of the dilapidated AIT building on Xinyi Road, the money for the new complex is part of a program "designed to meet the demands of a critical gap in the overseas real property portfolio," the department said.

In the new budget, the Bush administration also proposed an increase of nearly 4 percent in AIT's budget for next year, the second consecutive annual increase.

So that's one thing to root for in the budget process. Although happy representatives do not necessarily equal happy bilateral relations, it can't hurt! In other FY 2009 U.S. budget news, Ruth Marcus of the Washington Post wrote an entertaining/intriguing op-ed piece featured today about the White House's move from a printed budget to a paperless, digital one--and why she wishes they would go back to the 2,200-page "dead-tree set" of old:

"Honestly, I am still using the paper books, as is most of my staff," Tom Kahn, the staff director of the House Budget Committee, told me by e-mail. "Online is much harder to use. It makes the information less accessible and harder to ferret out.

Frankly, it is no fun staring for hours at a computer screen to find obscure spend-out rates. You can't underline, can't make a note on a page, and who wants to read a computer in bed?"

Washington is a place where, as the economists say, a non-trivial number of people read budget documents in bed. But you don't have to be one of them to crave the comforting certainty of ink on paper or to wonder about the consequences of having so much of the information we digest migrate from paper to screen.

Because as wondrous as the Internet is as a means for discovering and obtaining information, as useful as the personal computer is as a mechanism for inputting and manipulating data, paper remains -- for many of us, anyway -- the format most conducive to clear-headed analysis.

The Nussles of the world ignore the human urge to underline, to scrawl in the margins, an instinct that traces its first manifestations to cave paintings. There is a clarifying immediacy to holding the document itself, not settling for its online representation.

U.S. State of the Union, Congress and TUFTA

From our viewpoint, watching President Bush's final State of the Union address on Monday night, it seemed like the president had chosen a short list of priorities to focus on for his last year in the White House, one of which is to press for Congress to pass the United States' remaining outstanding negotated Free Trade Agreements. From the address (transcript here):

I thank the Congress for approving a good agreement with Peru. And now I ask you to approve agreements with Colombia and Panama and South Korea. (Applause.) Many products from these nations now enter America duty-free, yet many of our products face steep tariffs in their markets. These agreements will level the playing field. They will give us better access to nearly 100 million customers. They will support good jobs for the finest workers in the world: those whose products say "Made in the USA." (Applause.)

These agreements also promote America's strategic interests. The first agreement that will come before you is with Colombia, a friend of America that is confronting violence and terror, and fighting drug traffickers. If we fail to pass this agreement, we will embolden the purveyors of false populism in our hemisphere. So we must come together, pass this agreement, and show our neighbors in the region that democracy leads to a better life. (Applause.)

- President George W. Bush, 2008 State of the Union Address

With free trade seemingly high on the White House's priority list, there may be better prospects ahead over the next year for the passage of these outstanding agreements. Hence the prospects for a Taiwan-U.S. Free Trade Agreement (TUFTA), which has not been hammered out yet between the two allies, seems brighter as well. Reenforcing this logic are statements made recently by Senate Finance Committee chair Max Baucus (D) of Montana and committee member Jon Kyl (R) of Arizona, as reported in this article by the publication from the Economic Division of TECRO, TaiwanNow:

from TaiwanNow, January 2008 issue
"View from Taipei - Baucus: ‘Launch U.S.-Taiwan FTA Talks’"

Congress Looks Ahead to What’s Next and Needed After Pending Trade Agreements

In late December, Senate Finance Committee Chairman Max Baucus (D-MT) introduced a concurrent resolution calling on the United States to both “increase trade opportunities” with Taiwan and launch negotiations on a bilateral free trade agreement. Co-sponsored by Senator Jon Kyl (R-AZ), the resolution, S Con Res 60, comes at a time when trade has become an easy scapegoat for U.S. economic problems on the campaign trail and as an uncertain outlook for the global economy may push the U.S. and other nations to consider protectionist measures.

During this period of economic uncertainty, it takes bold leadership to look beyond what is politically popular in the short-term to embrace good policy in the long-term. Taiwan is both grateful to Senators Baucus and Kyl for their bipartisan vision and for the longstanding support and friendship of the United States. Negotiating trade agreements with commercially significant economies will help safeguard U.S. economic competitiveness in the years to come, and the case for a U.S.-Taiwan FTA has never been stronger.

As the Senators highlight in their resolution, Taiwan and the United States are among each other’s most important trading partners. U.S.-Taiwan bilateral trade in 2006 totaled $61.2 billion, and Taiwan ranks as the 9th largest U.S. trading partner, the 11th largest export market for U.S. goods; the 6th largest market for U.S. agricultural products and the “3rd, 4th, 5th and 6th” largest buyer of U.S. corn, soybeans, beef and wheat, respectively. Not surprisingly, studies show that both the U.S. and Taiwanese economies would experience significant gains from a bilateral trade agreement. According to the Peterson Institute of International Economics, a U.S.-Taiwan FTA would increase U.S. goods and services exports to Taiwan by up to $6.6 billion annually.

Senators Baucus and Kyl have long been supporters of a U.S.-Taiwan FTA. Baucus introduced the U.S.-Taiwan Free Trade Agreement Act of 2001, and he and Kyl, along with eight other senators, wrote to President Bush in 2003 urging him to launch talks on an agreement. There has also been similar support for a bilateral FTA in the House, with members introducing resolutions calling for the launch of a U.S.-Taiwan FTA in 2003, 2006 (signed by more than 66 representatives) and most recently H Con Res 137 in May 2007, a proposal co-sponsored by Congressional Taiwan Caucus co-chairs Shelley Berkley (D-NV), Steve Chabot (R-OH), Dana Rohrabacher (R-CA) and Bob Wexler (D-FL.) as well as Rep. Jim Ramstad (R-MN).

Which brings us back to 2008: We hope that members of Congress and the private sector will support an economically significant U.S.-Taiwan FTA and the resolutions introduced by Senators Baucus and Kyl and Reps. Berkley, Chabot, Rohrabacher, Wexler and Ramstad this year. The time for Taiwan is NOW.

Political Pand'-ering

Beijing attempts to spread its soft (and cuddly!) power to the island of Taiwan.

With the March presidential elections on Taiwan quickly approaching and a continued strong outlook for KMT candidate Ma Ying-jeou, China has relaunched an insidiously furry plan to win over the people of Taiwan with their most advanced PR weapon--the ultimate WMD of public diplomacy. . . that's right, pandas.

According to today's AP article, a pair of Chinese pandas were first offered to Taiwan in 2005 "to mark a landmark visit by the leader of Taiwan's Nationalist party." Beijing then acted shocked and appalled at Taiwan President Chen's refusal to admit the oversized raccoons for obvious political reasons, because, well, Taiwan obviously needs pandas—as do we all (please pause for a moment to note our thick tone of sarcasm).

Beijing, of course, didn't make the whole thing go over any easier with Taiwan's ruling party when, according to the AP, they subsequently named the lovable fuzzy-wuzzies: "'tuantuan' and 'yuanyuan' — words that together mean 'reunion' in Chinese."

Now that the KMT candidate is the pollster's favorite for the March election in Taiwan, Beijing has put Taipei on notice that the pandas are up for offer once again.

We see this as yet another example of Beijing's inability to refrain from tainting even the most trivial connection to Taiwan with nationalist overtones. It would have been much more subtle and effective to have simply offered the pandas to Taiwan with no strings attached. After all, its tough to demonize a country that lends you a pair of objectively cute panda bears and asks for nothing in return.

Taiwan's Titanic Tech Trade

We came across an article from last Friday on PC Magazine's website entitled, "China-Taiwan Showdown Involves Politics, PCs." Glenn Smith's article is an interesting look at the ways in which a serious turn for the worse in the relationship between Taiwan and China could pose a serious threat to the world's IT electronics market. At face value, Smith's thesis seems a bit obvious: Taiwan is the world's leading producer higher end electronic devices, and many of the components used to assemble these products are sourced from factories in China, so of course a serious confrontation across the Taiwan Strait would harm the industry. Yet the scope of the possible harm done can sometimes be easily overlooked.

According to Smith's article, "Taiwan is the world's number one volume supplier of motherboards, WLAN NIC cards, VoIP cards, VoIP routers, laptops [83%], DSL customer premises equipment, cable modems, IP phones, PDAs [73%], VoIP terminals, LCD monitors [70%], switches, WLAN access points, color tube monitors and large LCD panels." Not only does Taiwan lead in all of these categories, it commands over half the global market share's dollar value in each and every one of them. Taiwan's tech industry is truly a global juggernaut.

Although over the years an increasing share of this nominal output has been manufactured by Taiwanese-owned fabrication outfits in China, virtually all product design originates in Taiwan's venerable scientific industrial parks. Furthermore, TFT-LDC lens and semiconductor production still remains largely on Taiwan soil. From the article:

Tze-Chen Tu, general director of the Industrial Economics & Knowledge Center (IEK), at Taiwan's Industrial Technology Research Institute (ITRI), said that every country wants to keep its first-tier industries at home, and that technology transfers are banned if thought harmful to economic or national security.

"We don't like to see them go but even when Taiwan companies shift manufacturing to China, they come back for design and for critical components," said Tu.

The net result? According to Smith, whereas the production and export of existing electronics to the United States and other tech-consuming countries might be maintained during a crisis, "if things fall apart and a Tom Clancy scenario unfolds in the Taiwan Strait you can forget about upgrading your PC or laptop for a while. The hundred miles of shallow seas separating Taiwan and China happen to be the most important yet most precarious link in the global ICT [Information and Communications Technology] supply chain."

All these are very good economic reasons for the United States and most other countries to take a vested interest in maintaining peace and trade communications across the Taiwan Strait. Yet, in highlighting Taiwan's central role in this global industry, we are also shining light on the real benefits that could be reaped by businesses and consumers in both Taiwan and the United States from a free trade agreement between the two countries.

The electronic 'triangle trade' that currently exists between the U.S., Taiwan and China is formed as major American firms such as IBM, Intel and Apple look to Taiwan firms to design critical components for new products which are then manufactured and assembled in China and shipped to consumer outlets in the U.S. Due in large part to this dynamic, the United States is Taiwan's largest source of foreign direct investment and 3rd largest export market, while Taiwan, an island of 23 million, is the United States' 9th largest trading partner and 8th largest export market. Lowering trade barriers on any leg of the ICT trade flow would lower artificially imposed production costs and therefore equal higher company profits and lower price tags for consumers.

As mentioned in earlier posts on this site, there are of course other economic areas in which Taiwan and the United States, as close allies and trading partners, have formed strong ties. U.S. exports to Taiwan in 2006 amounted to $23 billion and Taiwan is a leading consumer of American meat and produce as well as cars and other industrial products. One 2002 study by the U.S. International Trade Commission (USITC) projected that a Taiwan-U.S. Free Trade Agreement (TUFTA) would double American exports to Taiwan in the agricultural and auto sectors while raising overall exports $3.4 billion or 16% (at the time) annually. In 2004 a study by the Institute for International Economics (IIE) raised the expectations for annual increases in exports to $6.6 billion. Clearly the potential for growth in American exports Taiwan is increasing in proportion to current trade volume and considerably outpacing the current level of growth.

As we have long been consistently advocating here at R.O.C. the Boat, a US-Taiwan Free Trade Agreement would bring tangible economic benefits two both the United States and Taiwan--two countries whose economies are enmeshed but to a large degree do not overlap. Furthermore, an FTA would grease the wheels of the Asia-Pacific tech trade and add to the stability of the region. Finally, according to the same 2004 IIE study mentioned above, TUFTA would create more economic gains for the U.S. than those of 10 other current or potential FTA partners, including Australia, Singapore, Chile and New Zealand. At a time when the U.S. economy seems to be hitting a rough spot at best and perhaps moving into recession at worst, pursuing a free trade agreement with Taiwan would certainly give several sectors of the American economy something sunny on the horizon to look forward to.

Chicago Tribune interview with President Chen

Yesterday in the Chicago Tribune there was an interview conducted by Dennis V. Hickey with the header, "Person of Interest: Taiwan President Chen Shui-bian." Mostly, the discussion centered on cross-Strait relations with China and the emptiness of Hu Jintao's recent overtures for peace negotiations. Among other things, there was this nice little zinger:

Q: Were you surprised by President Hu's call for peace?

A: No, it's just a strategy to deceive our people and foreign countries. . .If Hu Jintao abandons the one-China principle, I will be surprised. If China gives up its one-party dictatorship, renounces the use of force against Taiwan and removes the 988 [1,326?] missiles deployed opposite Taiwan, then I will be truly surprised.

Enjoy.

China: More guns, less butter.

Recently, two important numbers monitored here at R.O.C. the Boat underwent major revisions:

• The commonly accepted figure for the size of China's economy was reduced by 40 percent.

• The estimated number of ballistic missiles deployed against Taiwan by China has increased by 30 percent.

First, discrepancy in the size of China's economy seems to arise from the World Bank's use of way-outdated data sets (originally generated in the 1980s) to come up with the purchasing power parity (PPP) estimates that are crucial when estimating the size of an economy. PPP is a measurement obtained by weighing the relative values of currencies when those currencies are used to obtain identical goods in their domestic markets. Eduardo Porter, who wrote a great editorial for the New York Times on the 'downsizing' of China's economy almost a month ago, put it this way:

Take a 40 yuan serving of noodles at an eatery in Beijing. If the same dish cost $4 at a comparable restaurant in New York, the noodle P.P.P. would be 10 yuan to the dollar. Calculated using a large basket of goods and services, this ratio allows for a more consistent comparison of economies. . .

. . .It turns out that things in China are more expensive. It’s as though we discovered that the real price of the noodles in Beijing was 50 yuan, yielding a P.P.P. of 12.5 yuan to the dollar rather than 10. That means the Chinese are relatively poorer and China’s economy is smaller than everybody thought.

This is not a mere technicality. Suddenly the number of Chinese who live below the World Bank’s poverty line of a dollar a day jumped from about 100 million to 300 million, roughly the size of the United States population. And if you thought China’s energy consumption was dismally inefficient, consider that it still uses the same amount of energy to produce 40 percent less stuff.

As Porter puts it, with the release of the new World Bank figures, China's estimated economic output "lost a chunk roughly the size of Japan’s output." Maybe the World Bank will remember to update their purchasing power figures sooner next time?

The phenomenon of China's shrinking 'overnight' was also mentioned in today's Nelson Report, where the venerable Chris Nelson referred readers to a much more recent article in the LA Times entitled "The Great Fall of China". As China no longer seems like quite the economic juggernaut it has often been made out to be, perhaps the specter of 'antagonizing China' will no longer carry quite as much weight. To add a little more perspective, consider that the United States' economy is currently worth about $13 trillion. Economists previously thought the U.S. would be eclipsed by China's $11 trillion economy in 5 years. Not anymore: China's $11 trillion economy is now a $6 trillion economy.

Secondly, there's the small matter of the missiles China is piling up in its southeastern provinces, with a view toward threatening and forcibly coercing Taiwan. Throughout the second half of 2007, it was estimated that the number of short-range ballistic missiles the PLA had deployed against Taiwan was just shy of one thousand. However, during his final New Year's Day address, Taiwan's President Chen announced an updated study by Taiwan's Ministry of Defense boosts this number to 1,326. Just during President Chen's term alone, the number has increased by almost 700%. The jump in China's arsenal was reported in this article by the Epoch Times; an English-language transcription of President Chen's New Year's Day address can be read here.

These new figures will hopefully generate a more realistic public image of China's adopted role in the world economy and international relations. Combine China's increased poverty figures and drastically slashed economy size with continued missile proliferation and sales of weapons to governments like those of Myanmar and the Sudan, and one quickly realizes that China's role entails a lot more guns and a lot less butter than most of us previously thought.

What's bad for the Goose is bad for the Gander

There's a little old saying that goes, "What's good for the goose, is good for the gander," meaning that two things almost exactly alike will generally experience the same effects if the same thing happens to them. Conversely, if the proverbial goose is, say, Hong Kong, and the gander is Taiwan, then we could say that 'whats bad for the goose is bad for the gander.'

Indeed, China laid a big goose egg on Hong Kong when officials in Beijing pushed back by five years the planned date for direct elections in the special administrative region, saying the earliest possible year for such a vote is now 2017. There is no reason to believe that when the year 2013 rolls around, the vote will not be pushed back to 2022, and so on, and so forth, ad nauseam.

What does this mean for Taiwan? Well, what's bad for the goose. . .

After the unhappy decree was handed down from Beijing, Hong Kong's democratic leader Martin Lee came out to say that, "I do not see Hong Kong with genuine democracy in 10 years more or 20 years more. It is just a mirage," according to an AFP news story. At this point, it is indeed reasonable to expect that Hong Kong will not enjoy open democracy until, by dint of a miracle, all of China becomes democratic.

With the head of Hong Kong's democratic goose cleanly lopped off, for all to see and just in time for New Year's dinner (t-1:30 in Taipei ; t-14:30 in Washington), the brain in the head of Taiwan's democratic gander is wondering why anyone would expect Taiwan to willingly put its neck to the chopping block (hint: chopping block = unification). From the same AFP story:

A senior Taiwanese official said Beijing's move underlined why the island could not accept reunification [sic] with mainland China.

Tung Chen-yuan, a deputy chief of Taiwan's China policy-making body, known as the Mainland Affairs Council, said the decision sent a clear signal "that the Chinese Communist Party does not allow genuine democracy.

Even the Foreign Ministry of Great Britain—which, as the port city's former colonial ruler, usually remains mute on all things Hong Kong—made a statement describing Beijing's latest anti-democratic antics "a disappointment."

Having flogged the 'goose and gander' analogy sufficiently for the entire year of 2007, we would simply like to wish all who read this a very happy New Year. See you in 2008!

More Food for Thought

Exerpt from 12/20 article, "Blind in Beijing" by Dan Blumenthal
published in The American, an AEI publication

If economic growth and “peace and development” are China’s main goals—as the Communist Party states, and as many Chinese surely desire—then why is China engaged in the most significant military buildup in the world? The PRC enjoys a secure external environment: East Asia is more stable today than it has been in decades. Chinese protestations that the military buildup is “all about Taiwan” are less than reassuring. For one thing, the very idea that China would prepare for war with a de facto sovereign nation over which it has had no official control since the late 1800s is totally inconsistent with modern notions of sovereignty. There are many English-speaking countries that are no longer part of the British Empire; nor are all German-speaking countries part of Germany. Both England and Germany are doing just fine without their former colonies. And should China’s intentions change as its strength increases, the same military capabilities that could be used against Taiwan could also be deployed against American forces in a range of scenarios.

UN for Taiwan 101

Experts assess national referendum at Heritage

We were at the Heritage Foundation Tuesday, where Taiwan's Representative to the United States, Dr. Jaushieh Joseph Wu, addressed policy experts, media and conference attendees during an event entitled, "Taiwan's UN Bid: Domestic Democracy or International Crisis?"

Representative Wu’s address covered the legal and practical arguments in support of Taiwan’s bid to become a UN member. He asserted that both Taiwan and the international community have a substantial interest in Taiwan’s full participation in the UN, reminding the audience of Taiwan’s status as the world’s eighteenth largest economy and its role as a regional “beacon of freedom,” due to its national journey from authoritarian rule under the old Chiang regime to today’s “active, vibrant democracy.” Wu noted that “despite its legal and substantive standing, Taiwan has been stifled by the People’s Republic of China in its attempts to join the United Nations and other international organizations.”

The ensuing panel discussions came together as a tour-de-force of the many factors enmeshed in the issue of Taiwan's proposed UN referendum. Thankfully, the dialogue seemed to be relatively balanced, although each speaker seemed more intent on listing what they saw as the key issues and possible consequences surrounding the controversy rather than explicitly weighing in on whether or not Taiwan should go ahead with the planned votes in March. One thing the panelists did agree on, is that at this point in time, the referendum seems likely to take place.

China expert Randy Shriver, former Deputy Assistant Secretary of State for East Asian and Pacific Affairs, listed the many facets of the political climate in Taiwan which have lead to the general need to hold a referendum, including a “genuine desire on the part of the people of Taiwan to be a part of the United Nations,” as well as a “desire to deepen and strengthen Taiwan’s democracy” and to “provide evidence to the world of differentiation between the PRC and Taiwan.” Mr. Shriver also listed “continuing efforts to define and express [Taiwan’s] national identity” and “political motivations” as contributing factors to Taiwan’s referendum drive.

David Brown, a professor at the Johns Hopkins University School of Advanced International Studies, struck a more precautionary tone. He stated that the planned referendum was part of a “vicious circle between Taiwan and the mainland,” in which military buildup and increased pressure from the mainland causes Taiwan to become increasingly assertive on behalf of its separate national entity, in response to which the government in Beijing becomes increasingly more belligerent. Unfortunately, Brown seemed to believe that the onus is on Taiwan to cease its efforts to gain international representation rather than on Beijing to halt and reduce its military buildup opposite Taiwan on China's southeastern coast.

Overall, the conference may be best described as a 'hung jury,' which in our view isn't necessarily a bad thing. Although it may be difficult separate the various contributing factors that make international and domestic politics on Taiwan such a perplexing milieu, it seemed clear to most or all present at Tuesday's event that the referenda are not solely the products of crass political maneuvering by political parties on Taiwan. If that were the case, the DPP and KMT would have never gained enough signatures to go ahead with the vote.

Note: You can see video of Tuesday's event on Heritage's website by clicking here.

Quick Jot: New PINR report on U.S.-PRC relations

Power and Interest News Report (PINR) released a rather detailed and insightful brief on Sino-U.S. relations and how they have been effected by the recent Kitty Hawk spat. Overall, the sense seems to be that, wheras in the short term there obviously seems to be no cataclysmic rupture in the U.S.-China relationship or the strategic landscape of the West Pacific Rim, several highly nuanced shifts in international power politics can be gleaned from this episode. Many of these shifts have an effect on Taiwan, and these relevancies are enumerated in the report.

Many thanks to the China Digital Times news update service for drawing our attention to this valuable report.

A gaffe-and-a-half: Kitty Hawk & minesweeper follow-up

The government of China and/or People's Liberation Army (somtimes its tough to figure out who's calling the shots) really shot themselves in the foot with this latest blunder concerning the refusal of American naval vessels seeking entry into Hong Kong harbor. Not only does this latest blunder add to what is becoming a rather long list of bones the American public has to pick with China these days, its effect is exacerbated by the pride the United States has for its blue-water navy, not to mention the belief that America's heavily maritime-influenced culture holds in an honor code on the high seas.

For an excellent example of how the PRC government is hurting China's image with irrational actions arising from equally irrational grievances—over the U.S. honoring the Dalai Lama, or selling Patriot missiles defense upgrades to its ally, Taiwan, etc.—read this editorial by Lorna Hahn, executive director of the Association on Third World Affairs in today's Washington Times:

China-Taiwan tensions

In violation of the long-established principle that all nations should assist ships at sea that are in distress, China recently refused to allow two American minesweepers threatened by a storm to enter Hong Kong harbor for safety and fuel ("China's action troubles admiral," Page 1, Wednesday). Shortly thereafter, it withdrew permission for an American aircraft carrier, carrying sailors planning to spend Thanksgiving with relatives, to enter Hong Kong.

The reason, according to U.S. officials, was the announcement on Nov. 9 that Washington would sell Taiwan $939 million worth of upgraded Patriot missile defense systems in order to "help improve the security of the recipient and assist in maintaining political stability, military balance and economic progress in the region."

If China would begin to dismantle its 900-some missiles aimed at Taiwan rather than continually increase their number, Taiwan would not need to increase its defenses against them. Furthermore, if Beijing's leaders would meet with Taiwan's President Chen Shui-bian, as he has suggested often, tensions in the Taiwan Strait, which often affect other countries, could be replaced by cooperation.

LORNA HAHN
Executive director
Association on Third World
Affairs
Washington

The open sea is perhaps the last place on earth that operates under what, for lack of a better phrase, can be referred to as a 'frontier-style' culture. Just like the fabled unwritten Code of the West in American frontier history, there are certain things on the high seas that—no matter who you are—you just don't do. One of those unwritten taboos is to bar entry into a harbor to any vessel threatened by stormy seas. As long as there's room in the harbor, there's room for more ships, especially when the seas are a-rockin'.

So really, does China's government exhibit the sense of maturity, much less the sense of humanity, to be allowed to recklessly manipulate the international community in the way that it does? Does it have any inherent right to lay claim to a democratic and self-sustaining island when it can't even responsibly attend to its own affairs? We'll leave you with that thought in this wrap-up of the recent PRC-USN SNAFU.

U.S.-Taiwan Free Trade Agreement Roundtable

Photo of the aircraft carrier U.S.S. Kitty Hawk, which became the centerpiece

of a Sino-U.S. diplomatic tussle when it was not allowed to carry out a planned

visit to the port of Hong Kong this past Thursday and was forced to return to its

home port in Japan. Many family members of the sailors had traveled to

Hong Kong, looking forward to celebrating Thanksgiving with the crew.

Yesterday at the Sigur Center, the Asian Studies center within the international affairs school at the George Washington University, a panel discussion was held that featured guests from the Taipei Economic and Cultural Representative Office (TECRO, Taiwan's officially 'unofficial' embassy in Washington) as well as the Heritage Foundation and the American Enterprise Institute for Public Policy Research, two eminent Washington policy think-tanks.

The issue of the day was whether the United States and Taiwan should enter into serious negotiations and eventually finalize and enact a free trade agreement. The event began with a rather informative presentation by the director of TECRO's economic division, Mr. Francis Liang, who highlighted the many reasons why a Taiwan-U.S. FTA would be beneficial to the economies and populations of both countries involved. Thanks to the provision of extra copies of this presentation in paper form for audience members at the event, we are able to forward some of the more interesting facts and figures to you:

• Taiwan has experienced an average annual growth in GDP of 7.8 % over the past half century, and currently engages in foreign trade to the tune of $437 billion U.S. dollars and is the second largest holder of Foreign Exchange Reserves in the world ($266 billion).


• Taiwan produces 72% of the world's laptops, 79% of PDAs and 68% of LCD monitors. In the cover article of a May 2005 issue of Business Week, Bruce Einhorn referred to Taiwan as "the hidden center of the global economy."
  
• In 2006, Taiwan was the United States' 9th largest trading partner, 11th largest export market, and the largest importer per capita of U.S. agricultural products. In the same year, the United States served as Taiwan's 3rd largest trading partner, second largest export market, and Taiwan's largest source of foreign direct investment. Taiwan-U.S. bilateral trade was worth $62 billion dollars last year.

In addition to hard facts and figures, Mr. Liang helped explain the current trade situation in the Pacific Rim and how this adds to the need for an FTA. Currently, major Pacific Rim players such as Japan, China, Korea, Singapore, and Australia are vigorously signing and seeking new free trade agreements in the region. If the United States doesn't work to improve its trade relations and hammer out agreements with its top East Asia/Pacific allies, it may get edged out of the trade game in the Pacific.

This is just a sampling of what Mr. Liang had to say. On the other hand, Philip Levy, a resident scholar at AEI, was rather hesitant about the prospects for TUFTA. Mr. Levy's major hang-up when it comes to this topic is the "China factor." To put it simply, he, like many other academics, government officials, and 'China hands' in the United States, is simply fraught with worry at the prospect of 'antagonizing' the government of China in any way whatsoever.

Levy argues that whatever benefit Taiwan gains by formalizing an FTA with the United States will be cancelled out by the drop in foreign investment that would presumably follow if the PRC government stepped up its threats, military activity, and the familiar sabre-rattling routine in general in response. According to his hypothesis, Taiwan would then be unable to reap the benefits of TUFTA and would only have caused greater threat to its very existence.

What we believe is overlooked in Levy's line of reasoning, is why the very idea of a Taiwan-U.S. Free Trade Agreement raises the hackles of any PRC government official or general in the PLA. By engaging in deeper trade relations with Taiwan, the United States would be affirming in a practical way its values-based alliance with Taiwan's government. Rather than increasing the likelihood of Chinese acts of aggression against Taiwan, this step would make it more difficult for China to recklessly threaten Taiwan without thereby antagonizing the United States!

Humanists and 'starry-eyed idealists' in the U.S. are already more likely to favor Taipei over Beijing due to our countries' common interests in democracy, human rights, civil freedom, etc. More cynical observers of American foreign policy on the other hand—who were probably thinking yadi-yadi-yada by the time they got to the end of the last sentence—would also be more unlikely to tolerate PRC aggression against Taiwan, as American economic interests would become increasingly tied to Taiwan's national interests.

Besides, as Mr. Tkacik touched upon in his usual fire-and-brimstone manner, what with all the recent news concerning ongoing Chinese involvement in human rights violations, faulty Chinese commercial imports and the snubbing of the United States Navy with the recent U.S.S. Kitty Hawk Thanksgiving Day incident (just to name a few), maybe its high time that the United States did engage in a little diplomatic antagonizing towards the PRC government.

Summarily, at the conclusion of a free trade agreement between Taiwan and the United States, American officials would perhaps reasonably be a bit on edge for fear of economic and political backlash from Beijing. More important however is that, from that point onward, every time officials in Beijing contemplated the forceful unification of Taiwan with China, they would worry more than ever about the prospects of antagonizing the country that represents China's largest export market and the world's sole remaining superpower.

It seems to us that, in terms of American foreign policy vis-a-vis Taiwan and the People's Republic of China, improving American trade relations with Taiwan using the vehicle of a Free Trade Agreement is one of the best moves that can be made within the even the most conservative definition of the status quo.

Some Helpful Articles:

Yesterday we saw two helpful and refreshingly fair articles on the internet.

The first is an editorial by the Houston Chronicle, entitled, "Their dilemma, and ours," in which the Chronicle underscorses the dark irony we have to live with when democratic Taiwan continues to get the international 'cold shoulder', while oppressive Beijing happily frolicks towards the 2008 Summer Olympics without the slightest reform to China's cruel and stifling political system. Some highlights:

Neither independent nor subjugated, commanding one of the world's largest economies but officially recognized by few nations, the island democracy of Taiwan endures a tenuous existence in a world that requires global access. If that weren't bad enough, it is menaced by a hostile neighbor that claims ownership.

and:

Taiwan's dilemma offers a similar set of difficulties for the United States. Taiwan's de facto U.S. ambassador, Joseph Wu, outlined for members of the Houston World Affairs Council the several bitter ironies of the situation. The United States must maintain workable relations with China and can't recognize Taiwan, even though:

• China menaces Taiwan with missiles and threats, while Taiwan poses a danger to no one.
• Taiwan is a major U.S. trading partner, importing many tons of agricultural products, including Texas beef, and exporting electronic equipment that meets high standards of quality and safety. China sends us tainted food and toxic toys.
• Taiwan has curbed its air and water pollution, but China's regime fears environmental activists more than environmental degradation.

Chinese leader Hu Jintao recently called for talks with Taipei officials to maintain peace in the region. China and Taiwan should "resume talks on an equal footing as soon as possible," Hu said before his recent summit with President Bush in Washington.

and:

As for the United States, the least it can do is grant Taiwan the same generous trading terms it recently gave South Korea, one of Taiwan's chief competitors. Washington should also champion Taiwan's desire to work with vital international institutions such as the United Nations' World Health Organization. To deny Taiwan access is to punish a peaceful, democratic ally while rewarding an oppressive competitor.

We couldn't have said it better ourselves. Pay particular attention to the call for increased trade (TUFTA?) and UN/WHO membership for Taiwan in the pentultimate sentence. These actions are the first solid step towards righting the wrongs collectively forced upon Taiwan over the many years that it has been a legitimate democracy.

The second article was by Simon Tisdall of the U.K. rag The Guardian. Entitled, "Taiwan squeezed as US and China negotiate," it highlights an unsettlying dynamic that was recently discussed during a panel discussion at the Heritage Foundation: the more the United States suffers from diplomatic tunnel vision dealing with the Middle East, the more it is forced to rely on major regional players like China to help maintain at least a semblance of order elsewhere in the world. In doing so however, the United States may end up bargaining away foreign affairs objectives it would never have conceded otherwise. One can easily see how this might apply to Taiwan:

According to Taiwan's president, Chen Shui-ban, China now has 988 missiles aimed at Taiwanese targets and is continually adding to its arsenal. Chen, who strongly opposes unification and the communists' "one China" mantra, recently described Beijing as a threat to regional peace and said it was preparing to take the island by force by 2015. Last month China said it had deployed a high-performance radar system designed to complement its surface-to-air missiles and jet fighter interceptors.

Robert Gates, the US defence secretary, questioned the build-up during a visit to Beijing last week. The two sides agreed to create a military hotline to help defuse crises. But Gates' overriding stated priority was securing China's backing for steps to curb Iran's nuclear activities. On Taiwan, he merely reiterated Washington's formulaic support for maintaining the status quo.

. . .Taiwanese officials say China has become adept at manipulating the Bush administration. "They are under pressure from China. China is very clever. If they want to do something on Taiwan, they call the White House and tell the Americans that Taiwan is rocking the boat. Then the US government puts pressure on us," a senior official said. "Of course we are afraid about the growing cooperation between the US and China. It's a problem for us. It is definitely squeezing Taiwan."

Lost in the Mail: PRC fails to deliver vital health alerts to Taiwan

What do the government of China and the classic computer game "Oregon Trail" have in common?

They both will give you the occasional case of dysentery:

The government of China recently delayed relaying crucial information provided to it by the World Health Organization (WHO) to Taiwan for 10 days, an unnecessary decision that risked exposing thousands of Taiwanese to the deadly bacterial disease dysentery.

The news came from within the WHO that Thailand had recently exported several shipments of baby corn that were possibly contaminated with the pathogenic bacteria Shigella dysenteriae, which, when ingested, induces the deadliest form of the disease dysentery. Taiwan is barred from membership in the WHO as it is an organization under the umbrella of the United Nations. The government of the People's Republic of China, due to its consistently irrational bouts of paranoia regarding Taiwan's international status, has repeatedly pressured the WHO to sign memoranda of understanding (MOUs), some of which are classified, which more or less assure Beijing that the World Health Organization will continue to toe the China line.

Meanwhile, the 23 million citizens of Taiwan have been excluded from direct representation in the organization, an alarming fact that represents a gaping hole in the global health, disease control and response network the WHO was formed to maintain. Of course, the PRC claims that Taiwan is covered by the WHO, as the island is supposedly a province of China -- a dilusionary assertion that the international community is forced to accept.

The consequence of this policy of appeasement towards Beijing is that the global health network remains incomplete, at great risk not only to the 23 million people on Taiwan but indeed to people everywhere. Imagine what happens when the government of China decides to use the same stalling tactics if, say, they are informed that an airborne pathogen has possibly traveled to Taiwan. As a large shipping and commercial transportation hub, such a disease could easily leapfrog all over the planet using Taiwan as a departure point before Beijing decides it has the time of day to let the authorities on Taiwan know about it. Such a global risk taken for the sake of Beijing's hubris is unacceptable.

These recent developments provide a case in point. Beijing claims that Taiwan is a territory that falls under its jurisdiction, yet when the international community agrees to go along with this bogus idea, China's government consistently shirks all responsibilities regarding Taiwan. Not only does it consistently wave military threats under Taiwan's nose and take every measure to isolate Taiwan's people politically and economically, the PRC government also apparently finds it acceptable to wait ten whole days to inform the people of Taiwan that, sorry:

2007 Baseball World Cup opens in Taiwan

Baseball has become a truly international sport over the years, even if many in the United States may not be very aware of the increasing popularity of their favorite pastime. When Cuba won last year's World Cup over second place-winner the Netherlands, there were many American baseball fans who opened their paper to the sports page the next day, and then exclaimed to themeselves, "the Netherlands?"

[The International Baseball Federation, IBAF, notes on their website that the Netherlands has had a professional baseball league since 1922]

Alas, it is the fortunate truth: today baseball has a presence in countries all over the globe. This year's Baseball World Cup, which opened today after a day of rain delays on Taiwan, includes as diverse a set as you'll find anywhere. More diverse, in fact, than in the UN, as Taiwan's own national team is competing in the event, albeit under the name "Chinese Taipei." Just to give you an idea, todays matches were (winner w/ asterisk): Spain v. Panama*, South Africa v. Japan*, Mexico v. United States*, Cuba* v. Australia, Netherlands* v. Thailand, Korea v. Canada*, and Germany v. Venezuela*, with Taiwan v. Italy postponed due to rain.

In our opinion, anything international hosted in Taiwan, especially a sport as fun and accessible as baseball, is a win for the good guys when it comes to furthering Taiwan's status in the international community. We wish Taiwan's baseball team much luck and hope they progress far into the tournament. As for the Netherlands, we here at R.O.C. the Boat have a new-found respect for the Dutch when it comes to all things stickball.

Oh, and by the way:

Refocused: Beijing, Burma, and the UN

In his article, "Burmese Blood is the UN's Shame," Professor Hu Shaojiang of the University of Cambrige's China Research Center reminds us of the real "shame" when it comes to the UN: the organizational composition of the UN allows powerful-yet-irresponsible nations with permanent seats on the Security Council to hijack the entire international political process.

There was essentially only one moment during the six decade-long history of the United Nations, Hu reminds us, that the UN was able to take firm action in response to an international crisis. That was when the Soviet Union boycotted a session of the General Assembly back in the 1950s, unintentionally clearing the way for the Western powers to lock in a vote in favor of fighting North Korea at the outset of the Korean War.

Before and ever since, virtually every renegade dictator, every despotic and backwards government to arise during the history of the UN has been able to find at least one supporter among the five permanent members of the Security Council. In his commentary, Hu illustrates the repeated political hamstringing that has resulted from this dynamic, paired with the notoriously gratuitous veto power enshrined in the UN Charter:

It is the totalitarian Chinese government that is supporting its counterpart in Burma. In fact, back in January, several democratic countries submitted a proposal that the United Nations pressure the military government in Burma to stop political repression. However, China and Russia, as permanent members of the Security Council, vetoed the proposal.

On the eve of the crackdown against monks and civilians in September, a number of countries had proposed a U.N. resolution calling for restraint in Burma, to prevent a repeat of the brutal suppression that occurred in Burma 19 years ago. But again China's opposition put the proposal on the shelf. With the support of big brother China, the Burmese military leaders were especially violent in suppressing the protests.

The United Nations accomplished nothing toward protecting the legal rights of Burma's citizens, once again revealing its incapability in dealing with major international affairs. As a matter of fact, since the United Nations was founded it has almost never played a decisive role in major international issues.

The only exception was in the early 1950s when the United Nations discussed whether or not to fight against the North Korean regime led by Kim Il Sung, which had invaded South Korea. Because the former Soviet Union made a wrong decision and did not attend the meeting, the United Nations had a good opportunity to exercise justice.

During the Cold War period, there was no understanding and no forgiveness among the superpowers. The United Nations didn't have the chance to work even in a superficial function as a rubber stamp. This situation hasn't really improved substantially even now that the Cold War is over.

. . . and so on, and so forth.

It is this same veto power, of course, that has been the central factor in barring Taiwan's government from even observer status in the UN all these years since 1971. Yet political disenfranchisement pales in comparison to the horrendous atrocities that are allowed to run their course, as concerned nations with a respect for international law feel they must pass the buck to the UN for action, only to run into the recurring truth that the UN is inherently unable to act.

China's government repeatedly reminds us that an unrestricted veto is more power than any member of the United Nations is fit to singularly wield. As Hu states:

"Equality among countries" is not equivalent to "equality among governments." If we let totalitarian governments enjoy the same rights as democratic ones that are elected by their citizens' free choice, it is humiliating to people who are deprived of their rights under totalitarian governments. . . .if a country violently suppresses its people's right to participate in political affairs, that country's right to speak and participate in international affairs should be taken away.

Currently, each individual UN Resolution, no matter how token in nature, can be tossed out at the drop of a hat without the slightest need of justification. At the very least, it would seem reasonable for the individual veto power of the five permanent members of the Security Council to be replaced with, say, a single veto that can only be wielded by a 3-2 vote or with the unanimous consent of all five members.

Only when the world's majority of humanitarian, peaceful-minded nations are free to act in concert despite the dissent of a small minority of powerful despots will the UN be a politically relavent institution, and the reward for every nation will be a more peaceful and democratic globe.