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The erosion of Taiwan's international position on Oct 10, 2004
US support weakening, confab told

ACTION NEEDED: The US talks about maintaining the cross-strait status quo but does nothing to stop the erosion of Taiwan's international position

CNA , WASHINGTON

US support for Taiwan has shown signs of weakening, several Taiwan and American scholars said at the opening of a seminar on US-Taiwan-China relations on Capitol Hill Friday.

Addressing the Symposium on Taiwan's Constitutional Reform and US-Taiwan-China Relations, Larry Niksch, a US congressional Asian affairs expert, said he has noticed that US support for Taiwan is gradually weakening.

If the US wants to maintain the Taiwan Strait status quo, Niksch said, it should prevent Beijing from continuously eroding Taiwan's international presence or "space", including luring away Taiwan's diplomatic allies.

Chen Wen-yen, chief executive of the US-based Formosan Association for Public Affairs, echoed Niksch's views, saying he has detected such a trend.

"Taiwan should keep vigilant against this trend and make every possible effort to keep the United States informed of Taiwan's latest situation in order to win more US support for its cause," Chen said.

As to what the Taiwan Strait status quo means, John Tkacik, a Heritage Foundation research fellow, said he once asked the US State Department about this question, but none of the State Department officials could give a clear definition.

To the best of his understanding, Tkacik said, the Taiwan Strait status quo can be described as "no unification, no independence and no war."

Chen Lung-chih, chairman of the New Century Culture and Education Foundation, said the "status quo" is dynamic and cannot remain unchanged forever.

James Kelly, assistant secretary of state for East Asian and Pacific Affairs, said during a congressional hearing in April this year that the US is opposed to either side of the Taiwan Strait unilaterally changing the status quo, adding that it's up to the US to define what the status quo means.

Speaking on the same occasion, Nat Belocchi, a former chairman of the American Institute in Taiwan, suggested that the US government set up a special cross-strait task force to review Taiwan-US-China relations regularly and to submit reports to the US president periodically. These reports should also be made available to Taiwan, he suggested.

The seminar was jointly organized by the Taipei-based Action for Constitution Taiwan, headed by former President Lee Teng-hui and the Washington-based Center for Taiwan International Relations.

Former President Lee delivered a speech in English via video link to the participants in the seminar held at the US Senate Hart Building. In the speech, Lee said he believes it is high time to "save Taiwan" by writing a new constitution that fits the island's present situation.

Tkacik said, however, that Taiwan must acquire credible defense capabilities before enacting a new constitution, otherwise it will be vulnerable to being overturned.

Tkacik said constitutional reforms are necessary in Taiwan for several reasons, including the fact that the existing ROC Constitution in Taiwan was enacted by the Chinese Nationalist Party in 1947 without any input from the people of Taiwan.

Nevertheless, Tkacik said, before putting a new constitution in place, the island must first acquire credible military capabilities to defend itself against possible mainland Chinese military attack. Otherwise, even if Taiwan succeeds in enacting a new constitution, it will be difficult to preserve, he said.

 

 

US officials give Koo ad covert support

LOBBYING TOUR: The presidential advisor said a number of officials and Republican Party leaders were supportive of his pro-Taiwan theme, but dared not say so publicly

By Charles Snyder
STAFF REPORTER IN WASHINGTON

Senior Presidential Advisor Koo Kwang-ming on Friday said that he had privately received positive responses from Bush administration officials in Washington over full-page ads he placed in newspapers on Monday calling on the US to abandon its "one China" policy.

A US China expert warned, however, that the Bush administration may be shifting its sympathies to Beijing.

Koo is in Washington lobbying for a new Taiwanese Constitution and independence.

On Friday Koo addressed a conference on constitutional reform sponsored by the Center for Taiwan International Relations and other Taiwanese organizations. It was held in a Senate office building.

In an interview during a break in the conference, which former president Lee Teng-hui had earlier addressed via videoconference, Koo told the Taipei Times that officials and Republican Party leaders he met had "personally" supported the message in the newspaper ads, but could not say so publicly because of pressure from China. Koo declined to say who he spoke with.

"Almost all of them said [the ad] was very good. But in consideration of the reaction from China, they cannot accept my opinion," he said.

Asked whether the officials he spoke with agreed with the ad, Koo said, "Yes, personally. Not all of them, but some of them."

The intent of the ads, Koo said, was to go over the heads of the administration and communicate directly with the American people, because talking to officials was "useless."

He told reporters that he was planning more ads to influence American public opinion.

In the ads, Koo berated the Bush administration for opposing Taiwan's election-day referendum and pressuring President Chen Shui-bian to not replace the Constitution. The ads were placed in the Taipei Times, the New York Times, the Washington Post and other publications.

Koo warned of eventual conflict between the US and Taiwan if Washington did not change its "one China" policy.

"Sooner or later, I believe that the policy will be changed. Democracy in Taiwan is reaching higher and higher, while the United States still keeps the same position as 30 years ago. So there is a gap growing day by day," Koo said.

"Eventually the gap will be very clear and we will have a very serious conflict between the United States and Taiwan [if US policy does not change]. That is a very miserable situation that we are going to have," he said.

He said that Taiwan "must fight against the United States, because the United States says, `you must not do this, you must not do that,' just like China tries to exert the same pressure on Taiwan."

Koo also took heart from the fact that the State Department "criticized" the ads, saying that this meant the "the ads have had some influence on the department. That's good."

During the conference, a senior US Congress researcher said that the Bush administration would never support an independent Taiwan, short of an unprovoked Chinese military attack.

The researcher, Larry Niksch, the top China expert at the Congressional Research Service, warned that the administration might put Taiwan under pressure to negotiate with China and "accept some part of the one-China principle" as Washington's relations with China improve. He said there would be more such pressure "sooner rather than later."

China's importance to the administration is growing, Niksch said, noting that since January the administration had softened its position on Chinese interference in Hong Kong.

He also said that the force of the "six assurances" which former US president Ronald Reagan gave to Taiwan in 1982, including a pledge not to pressure Taiwan into talks with China, could be weakened by the administration.

As a counter to any attempt to impose a "one country, two systems" solution on Taiwan, Niksch urged Taiwan to float an alternative solution internationally as soon as possible -- based perhaps on the EU or the British Commonwealth.

 

 

`Taiwan' debuts in diplomat-speak

By Joy Su
STAFF REPORTER , WITH CNA

The "Republic of China (Taiwan)" will be used in diplomatic documents from now on, Minister of Foreign Affairs Mark Chen said yesterday.

He made the remark after signing the first official document to bear the new title: a joint statement with Chadian Foreign Affairs Minister Nagoum Yamassoum. The statement reaffirmed both parties' commitment to promoting bilateral cooperation.

"Our country has been referred to as the `Republic of China (Taiwan)' for the first time in a diplomatic document," Chen said.

The statement was in Chinese and French, with the French version referring to "Republique de Chine (Taiwan)."

Chen told reporters yesterday that the Executive Yuan had already reached a consensus on the change for all diplomatic documents, including internally circulated paperwork.

Chen said that "Republic of China (Taiwan)" would be used to avoid unnecessary trouble and confusion.

"`Republic of China' continues to be the nation's official title and we will continue to use `Republic of China' on documents. We are merely adding Taiwan in parenthesis next to the title to clarify the matter," foreign ministry spokesman Michel Lu said, adding that the international community often confuses Taiwan with China.

 

 

What are we celebrating?

By Shao-Huei-lin

As today is Double Ten National Day, one must ask what exactly we are celebrating. According to the Taipei Economic and Cultural Office in the US, "the events of Oct. 10, 1911 are considered to be the catalyst that brought down the Qing Dynasty and led to the establishment of the Republic of China. Oct. 10 commemorates the Wuchang Uprising, which showed the Chinese people were fed up with the Qing court."

So let's examine a couple of facts here. First, Taiwan was under Japanese rule in 1911 and second, the ROC has no legitimate authority over Taiwan. It is time for us to assess the transgression which hangs over Double Ten National Day.

 

 

Snotty collaborators

On the issue of Foreign Affairs Minister Mark Chen's reference to Singapore as a small piece of snot and embracing China's balls, the media attacks against him that followed grossly violated basic human rights.

When his counterpart, Singapore Foreign Minister George Yeo made an offensive speech at the UN which undermined the security of Taiwan, hardly a word was said about it.

We wish to protest the following things; first, the pan-blue media's collaboration with the Singaporean foreign minister in order to appease China's communist regime, which seeks to suppress the democratically-elected government of Taiwan.

Second, the fact that the pan-blue media have never denounced the Singaporean official's remarks, which interfere with Taiwan's internal affairs. Instead, they call Chen's words an abuse of the freedom of speech.

Third, the pan-blue media's denunciation of the Taiwanese language is tasteless and disgraceful. We protest the legitimacy of KMT's history of colonial rule over Taiwan. The Taiwanese language has been suppressed for half a century by the KMT-controlled media.

Fourth, the pan-blue media have arbitrarily selected a segment of Chen's remarks to exaggerate the issue. Attempts were made to downgrade the credibility of the Taiwanese official and existence of Taiwan as an independent and sovereign nation.

Fifth, the pan-blue camp and its media have no remorse over losing the ROC's UN seat in 1971.

Sixth, I denounce the pan-blue media's apparatus of appeasement of Beijing, which will inevitably lead to the erosion of human rights in Taiwan.

Patrick Tsay
President of the Formosan Association for Human Rights
Dallas, Texas

 

 

`ROC' sham holds back the nation

Today, the country celebrates Double Ten National Day, the birthday of the Republic of China (ROC). One cannot help but sense the irony in holding such a celebration, since more and more people are beginning to see for themselves what the "ROC" really is to Taiwan. Former President Lee Teng-hui's speech on Friday evening during a videoconference with US officials and academics in Washington, D.C. reflects the views of those here who have come to realize that the "ROC" -- far from being a blessing to Taiwan -- has become an obstacle.

Taiwan was not even part of the ROC when it first came into being almost 93 years ago. At the time, Taiwan was under Japanese rule. Moreover, the ROC was then the representative government of China. The association between China and Taiwan is at most historical and cultural, since the two have not been under the rule of the same government since Taiwan was ceded to Japan. In fact, for all practical purposes China was and continues to be an enemy state after the ROC lost power and the People's Republic of China took control of China. So it is a stretch to say that "China" is what ties the ROC with Taiwan.

The truth of the matter is that pretending the ROC is still alive and kicking has done nothing but hurt Taiwan. As pointed out by former president Lee, the use of the ROC Constitution and "ROC" name is creating both serious internal and external problems for the nation.

That Constitution, which was adopted in 1912 when Taiwan was neither under ROC rule nor part of China, was not tailored to meet the needs of this country. Despite repeated attempts to amend it, the Constitution's flaws are beyond repair. It continues to create serious crises for Taiwan and keeps the Chen Shui-bian government from engaging in needed political reforms. Not to mention the fact that, as stated by Lee, it is against fundamental democratic principles that the people of Taiwan must obey a Constitution adopted and written without their participation.

The absurdity of the situation is further highlighted by the fact that this ROC Constitution continues to declare that China and Mongolia -- two sovereign and independent countries -- are under its rule. Lee was right in pointing out that this encroaches on other countries' sovereignty, in violation of international law.

To make matters worse, Taiwan has been exiled from the international community as a result of the "ROC" name, Lee went on to say. With the exception of some 20 countries, the majority of the world's nations do not recognize the legitimacy of the "ROC" and therefore do not hold formal diplomatic relations with Taiwan. The country is banned from using the "ROC" name at most international events, even those that are non-political in nature such as the Olympics, for which Taiwan must use the name "Chinese Taipei."

It is high time for Taiwan to have a new constitution that fits its needs. Taiwan is also entitled to use a name that is truly representative of the country. Pretending that the ROC still exists and that Taiwan is part of it is holding the country back from continued growth as a democracy.

But in order to accomplish these goals, both people in Taiwan and members of the international community must first repudiate the "one China" ideology and policy. Lee's speech on Friday was merely the first step of a campaign to open the eyes of the international community to what the problems are. Sooner or latter, the world will have to accept that Lee's speech is representative of a new majority, and of the popular will in Taiwan.

 

 

Bring investment back to Taiwan

By the Liberty Times editorial

International prices for raw materials such as crude oil and steel are increasing steadily. Although many people worry about a return of inflation, quite a few Taiwanese businesspeople overseas have found that they are unable to pass their rising costs on to consumers. As a result, they are unable to maintain previous profits and order levels, and some have even been forced out of business. But these seemingly contradictory phenomena are in fact caused by the same factor -- globalization.

An incomplete understanding of globalization has caused large numbers of businesspeople to invest in China over the past few years. The negative long-term effects caused by this are now beginning to show. Unless Taiwanese businesspeople change their strategies, they may not be able to survive these problems.

Since the 1980s, large numbers of low-wage workers from developing countries have entered into international competition. This cheap labor has enticed manufacturers from Taiwan and other countries to invest in China and other developing countries. Some manufacturers have even increased production and profits as a result of this cheap labor.

In a climate of global free competition, however, someone is always prepared to start or increase production as soon as there are profits to be had. For many products, this will result in overproduction and falling prices.

It is this situation that, in the past few years, has led to global deflation, falling profits and an "era of minuscule profits." Due to increased production of many products and the great investments by some developing countries -- either to gain market share or initiate grandiose, impressive projects -- there has been a rapid increase in demand for many raw materials. This in turn has led to supply falling short of demand, and rapidly increasing prices for raw materials. If manufacturers try to pass this cost increase on to consumers, they can be easily undercut by competitors who keep their prices low. This would cause manufacturers with already razor-thin profit margins to be unable to stay in operation.

Simply put, these phenomena occur because global supply of raw materials and consumer demand cannot increase enough to keep pace with the massive increase in the intermediary processing industries. This is one of the results of globalization.

Although many businesses already are unable to make a profit, the situation may deteriorate further still. Even though the businesses engaging in manufacturing in these developing countries already are unable to turn a profit, some investors still believe that they are able to do so by taking a greater share of already existing markets. They therefore continue to invest regardless of whether there is a market glut.

Many developing countries in particular are able to gain market share because of high unemployment figures and low labor costs in many local regions. If financial controls are unsound, cheap capital will be available in these countries, capital that may not even have to be returned. As a result, investment continues to increase unchecked, causing further rises in the cost of raw materials and falling prices for many consumer goods.

Entrepreneurs should recognize this trend and refrain from doing all they can to invest in developing countries in blind pursuit of short-term profits. An example often used in economics textbooks says that if a person in a movie theater stands up, he will be able to see better, but if everyone in the theater stands up, they will not be able to see any better. The result of everyone taking advantage of low labor costs to increase production is falling prices on consumer goods, increased raw material prices and diminishing profits. A few manufacturers may be able to survive and even thrive, but the numbers of losers and the magnitude of their losses will be terrifying.

In the past, Taiwanese manufacturers have done everything they can to invest abroad in order to gain short-term profits. The successful few were then used as examples to conceal the losses of others and encourage more investment in China. The difficulty and danger of going down this road is now clear for all to see. It is to be hoped that businesspeople, politicians and academics will realize that they should stop blindly encouraging investment in China.

The current situation of rising material costs and falling retail prices makes it difficult for these developing nations to make a profit and continue to improve. Although production and market share for certain products may increase substantially, there are only a few products that will achieve substantial profits as a result.

Many products that were previously exported from Taiwan are now manufactured and exported from China, but the price they are fetching is not even one-third of their former price. This shows that conditions in recent years are far less favorable to the development of emerging nations than in the days of the "four little dragons" (Taiwan, South Korea, Hong Kong and Singapore).

Many people look with admiration at China's rapid growth over the last few years. But when compared to the pace of development experienced by the "four little dragons," we see that their growth exceeded China's by between 50 percent and 100 percent.

With more and more developing countries entering into global competition, the availability of materials will be restricted, making further growth for China and other emerging economies more difficult. Those who put their faith in the huge Chinese market and invest there are likely to suffer devastating losses.

International trends show that investing in countries like China to take advantage of low labor costs is far from the best way to develop a company or nation. In international economic competition marked by an overabundance of cheap labor and an insufficient supply of materials, we need to rely on superior technology to achieve victory.

We need to develop a knowledge economy to produce goods that cannot be made in developing countries and avoid competition based on low wages.

In we follow this policy and focus on creating a knowledge economy, there is no need to shift operations to developing nations to reduce production costs. We should instead invest more domestically. Japanese companies are now following such a strategy.

Take Canon. After many years of overseas investment, the company has decided to manufacture its high-end products domestically, aiming to keep 80 percent of its capital investment at home over the next three years. According to Canon's director, the company can no longer afford to compete on prices with developing nations. But if the competition is based on picture resolution, Japan will be the winner.

Canon wants to put its money into research and development, to rapidly develop a range of new products. The key is that the development team and the production team should be geographically close to each other, to ensure maximum opportunities for communication and exchange. Because of this, Canon has decided to repatriate production lines back to Japan.

This is one of the reasons many push to keep the manufacturing sector alive at home, and not send money abroad in search of cheaper labor. It is a pity that many of our business leaders, statesmen and academics cannot appreciate the wisdom of this long-term policy.

Products that embody new knowledge or technology have higher profit margins, because competition is not as intense. Since these products can be sold internationally and don't target a single national market, there is no need to move production to a specific location. If the product is unique, then there is also little reason to fear restrictions from other countries who want to protect their own industry.

If we had adopted this strategy earlier, Taiwanese businesspeople in China would not be facing their current difficulties -- nor would we have the problem of the image and technology of Taiwanese products gradually falling behind that of South Korea.

The situation is already clear. Taiwanese should wake up and shake off the dream of low-cost competition and the myth of the potential offered by the China market.

 

 

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