| 
               Taiwan   
              Tati Cultural  
              And Educational Foundation  
                  
              B16F, No.3 Ta-tun 2nd St., Nan-tun Dist.  
                  
              Taichung 408, Taiwan, R.O.C  
                  
              September 25, 2001.    
        
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      Dear    
      Mr. Vice President Richard B.    
      Cheney,   
         
         
         
      
   
      We want to explain that why    
      former-President Lee need struggle for Taiwan’s democracy again.   
         
      
   
      Taiwan Solidarity Union Chairman    
      Huang Chu-wen said on Sept. 22, 2001 that former president Lee Teng-hui    
      has maintained a carefree attitude toward the Kuomintang’s decision to    
      revoke his membership and had urged people to devote themselves to the    
      typhoon relief works.   
         
      
   
      Hunag made his remarks to    
      reporters after he personally called on former President Lee Teng-hui,    
      whom the TSU regards as its “spiritual leader.”   
         
      
   
      Wearing his signature smile,    
      former President Lee Teng-hui did not seem to be bothered by the decision    
      made by the party that he lead for years. The 80-year-old former KMT    
      chairman, did not participate in any public functions but received his    
      guests at his official residence. Making no comments, Lee waved at the    
      reporters outside of his residence as he saw Chairman Huang off at the    
      door.   
        
        
      
  
      The KMT, for the first time in its   
      107-year history, on Friday, revoked the membership of its party chairman.   
      The move brought complete closure to the much-debated issue of whether Lee   
      had violated the party’s regulations when he publicly stumped for TSU   
      candidates at campaign rallies.  
        
      
  
      “Former President Lee’s   
      attitude remains carefree. What he concerns the most is that the KMT has   
      deviated from the path of ‘Taiwan first.’ Again, Lee requested that   
      all of us try our best to assist victims and families that suffered from   
      the typhoon and floods,” Huang told reporters during his visit with TSU   
      candidates to the typhoon-hit areas.  
        
        
        
      
  
      Huang also quoted Lee as saying   
      that in the meantime people are busy in rebuilding their homelands and   
      politicians should stop talking about politics. All TSU-nominated   
      candidates should suspend their campaign activities and focus on assisting   
      residents to returning to their normal lives” he quoted Lee as saying.  
        
      
  
      However, Huang reiterated   
      that “(the KMT’s move) to rescind former President Lee shows that the   
      KMT also rescinded localization which Lee symbolizes.  
        
        
        
      
  
      If there is one thing that Taiwan   
      can learn from the aftermath of the terrorist attacks on the US, it is how   
      Americans respond to a crisis. They are truly united behind the US. There   
      is no squabbling among politicians, no babbling from the media, and no   
      complaints from citizens. Everyone is united and has only one goal in   
      mind, ie, to seek justice and rebuild the country. This is the real   
      strength behind the mighty power of the US economy and its military. The   
      country is stable and moving forward like an unsinkable aircraft carrier.   
      By contrast, let’s reflect on what happened in the first year of   
      Taiwan’s first transfer of power.  
        
      
  
      First the opposition leaders   
      refused to show their support for Taiwan’s achievement by boycotting   
      President Chen’s inauguration. This in   
      effect set the tone for them to play the role of spoilers thereafter. The   
      opposition parties and major media tried their best to create havoc   
      against the government at every possible turn, hoping that instigating a   
      disastrous term for Chen would ensure their return to power. Now, the   
      cyclical world economy has reached its lowest point. There are rarely   
      complaints from the US media or public against the Bush administration.
  
      In Taiwan, however, the   
      media and opposition parties continue their campaign, blaming Chen’s   
      government for every possible problem. They    
      have undermined the people’s confidence in the government and linked    
      Taiwan’s economic downturn to the stalemate in cross-strait relations. In  
      effect, they have more respect for China, Taiwan’s hostile neighbor,  
      than for Taiwan itself. With opposition parties and a media like this, who  
      needs an enemy in China? Taiwan’s biggest problem lies not in the  
      economy or in China, but in the lack of national identity and solidarity  
      among its citizens. In the US, these days, it has become rather  
      difficult to purchase a national flag from a store. In Taiwan, I am sure  
      there are plenty, since the country is as divided as before. 
       
      
  
      Not long ago, Morris Chang,   
      chairman of Taiwan Semi-conductor Manufacturing Co (TSMC), the world's   
      largest contract chipmaker, gave a speech in which he said that the core   
      of the world's semiconductor industry will be moving to China in the next   
      10 years. He said that it is necessary for Taiwan to take part   
      aggressively in the development of China's semiconductor industry in view   
      of global industrial development and business cycles.  
        
      
  
      On Sept. 5, however, Vice Minister    
      of Economic Affairs Yin Chi-ming said that Taiwan would remain a leader of    
      the semiconductor industry for the next five years, as China couldn't    
      possibly catch up with us in a mere five years. He also said that no one    
      knows what the situation will be in 10 years' time. Yin's statement was an    
      indirect rebuttal to Chang's speech.    
         
      
   
      Yin also said that Taiwan's IC    
      manufacturers have invested as much as NT$1.4583 trillion here, while the    
      industry is upgrading its foundry technology to produce wafers with    
      advanced 0.15-, or even 0.13-micron technology.   
         
      
   
      In China, however, the industry is    
      only able to produce wafers with 0.35-micron technology.   
         
      
   
      The views of both men are valid.    
      Yin made his prediction on the basis of the fact that no Taiwanese company    
      had built wafer plants in China over the past five years.   
         
      
   
      If talented local people, capital    
      and the leading foundry technology from the nation's semiconductor    
      industry do not relocate en masse to China -- as traditional industry and    
      IC suppliers did in the 1990s -- it is widely believed that China will be    
      unable to shake Taiwan from its leading role in the semiconductor industry    
      within five or even 10 years.   
         
      
   
      In fact, the Chinese government    
      has tried its best to promote its IC industry since the early 1990s.    
      Although it specified the industry as a priority in both the "8th    
      Five-year Plan" (1990 to 1995) and the "9th Five-year Plan"    
      (1996 to 2000), its efforts failed due to Taiwan's ban on cross-strait    
      investments by local chipmakers.   
        
        
      
  
      Major chipmakers have therefore   
      concentrated on Taiwan and striven to upgrade their technologies here. In   
      other words, China's semiconductor industry cannot take off if Taiwanese   
      businesspeople do not swarm across the Taiwan Strait.  
        
      
  
      The Chinese government has   
      succeeded in attracting investments from NEC Corporation and Motorola Ltd;   
      but US and Japanese companies are not as generous as Taiwanese   
      companies and will not easily give away their technologies, capital or   
      market.  
        
      
  
      This is not to say that China is    
      unable to develop its economy without Taiwanese investment. But the lack    
      of such investment will obviously slow down the speed of its development.    
      This being the case, Yin's statement is quite right.   
        
        
      
  
      The situation began to change    
      after Winston Wang, son of Formosa Plastics Group   
      Chairman Wang Yung-ching,    
      established a semiconductor-manufacturing joint venture in Shanghai last    
      November with Jiang Nianheng, the son of Chinese President Jiang Zemin.    
      Wang even took a group of wafer technicians and managers with him, openly    
      challenging the authority of the Taiwan government.   
         
      
   
      Since Wang's Shanghai Hong Li    
      Semiconductor Manufacturing Corp and other Taiwanese    
      semiconductor-manufacturing companies were established in China, they have    
      given great impetus to the semiconductor industry there. Their plants have    
      also caught the eye of leading IC manufacturers around the world.   
         
      
   
      Meanwhile, in Taiwan, repeated    
      calls for relaxing restrictions on chipmakers' investments in China have    
      been heard since the Economic Development Advisory Conference demanded the    
      "no haste, be patient" policy be replaced with "active    
      opening, effective management".   
         
         
      
   
      If local chipmakers are allowed to    
      invest across the Strait, Beijing's favorable policies will inevitably    
      trigger a "China fever." The world's leading IC    
      manufacturers will also invest in China. Such developments will give    
      Beijing the bargaining chips it needs to demand greater and faster    
      technology transfers. Its goal of becoming the world center for    
      semiconductor manufacturing would follow rapidly.   
         
      
   
      If that happens, then Chang's    
      statement would also be right.   
         
      
   
      But what about Taiwan? The    
      nation's semiconductor industry and other high-tech industries may suffer    
      from insufficient capital and lack of research and development. Under    
      pressure from China these companies may quickly disappear.   
         
      
   
      Although Taiwanese chipmakers will    
      continue their businesses in China, in the end they will be defined as    
      "Chinese companies," leaving Taiwan's financial sector burdened    
      by trillions of dollars in loans and debts. They will also leave many    
      unemployed people in Taiwan for the government and society to worry about    
      and deal with.    
         
      
   
      In the long run, the nation will    
      not prosper but perish along with its high-tech industry.   
         
      
   
      Since both Chang and Yin's views    
      are valid, which one is more likely to come true?   
         
      
   
      Obviously, the answer lies in    
      "effective management." If the government only knows about    
      "active opening," which can easily be implemented, and solely    
      follows market operations, Chang's prediction will come true, as China is    
      going to become a high-tech kingdom.   
        
        
      
  
      Market operations are only   
      concerned with commercial interests, but such interests do not necessarily   
      equate to social interests. In other words, after the government has   
      relaxed its regulations, local chipmakers will swarm to China where they   
      can enjoy red carpet treatment and low labor costs. The end result for   
      Taiwan, however, will be ruin.  
        
      
  
      If the government knows what the   
      problems are, it should effectively manage Taiwanese investments in China   
      according to the best interests of the public. If this happens, Taiwan   
      will continue to lead in terms of its economic development in the next   
      decade and its high-tech industry will continue to prosper.  
        
      
  
      Let's wait and see whether    
      Taiwan will be able to maintain its prosperity or  whether it will be    
      swallowed up by China.   
        
        
      
  
      In the aftermath of the terrorist   
      attacks on the US, President George W. Bush's administration has made an   
      admirable effort to confine the target of its counterattack to the   
      specific groups that perpetrated the attack. By severing association   
      between the attack and the Islamic world, the US demand for universal and   
      unconditional support gains legitimacy.  
        
      
  
      This unconditional support should   
      also be asked of China. Currently China has attempted to place conditions   
      on its backing of anti-terrorist activities in exchange for US support for   
      China's crackdown on "separatism."  
        
      
  
      The legitimacy of the US's   
      counterattack comes from the urgent need to put an end to international   
      terrorism so that innocent civilians will be able to live their lives   
      without fear. It is wrong to think the US is the lone target of terrorism.   
      Terrorism has already hit Europe, Africa, and of course the Middle East.   
      Even Taiwan was once pinpointed by Osama bin Laden as early as 1995 in a   
      protect titled "Project Bojinka" as a potential target for plane   
      hijacking. The international nature of this problem means the world -- and   
      China is no exception -- must give unconditional and unwavering support to   
      the war on terrorism.  
        
      
  
      To seek worldwide solidarity, the   
      Bush administration has made painstaking efforts to single out only those   
      directly and indirectly responsible. After several public reiterations   
      that only the terrorist groups, rather than the Islamic world, are the   
      target of the US counterattack, Bush repeated the message during his   
      speech to the US Congress on Friday. In fact, Bush has praised the Islamic   
      religion as a religion of peace both during his meeting with the leader of   
      the world's largest Islamic country, President Megawati Sukanoputri of   
      Indonesia, and during an Islamic mass. Even President Pervez Musharraf of   
      Pakistan, one of the only three countries in the world that recognizes the   
      Taliban government, has said that "nobody is talking about a war   
      against Islam or the people of Afghanistan." Therefore, virtually all   
      Islamic nations support action against the terrorists.  
        
      
  
      At a time when the world is   
      showing such unprecedented unity against terrorism, how ironic that China   
      should suggest that its backing has a price. Then again, no one   
      should be surprised by such extortion. After all, the world has witnessed   
      how China perfected this art by holding US scholars hostage in exchange   
      for US support for Beijing's hosting the Olympic Games and by holding   
      foreign firms such as Credit Suisse First Boston hostage to keep them from   
      having any contact with the Taiwan government. But then again, in view of   
      China's historical "friendship" and arms sales to Afghanistan   
      and terrorist groups, China must certainly feel reluctant about the war on   
      terrorism.  
        
      
  
      China's kind of blackmail has a   
      lot in common with terrorism in that, once the perpetrators' demands are   
      met, they do it again, realizing the effectiveness of their methods.   
      Having found how effective such tactics are, it is no surprise that China   
      is using them again and again. If the US wants to stop this it has firmly   
      to say no.  
        
      
  
      If the US caves in to China,   
      however, it may trigger an avalanche of demands from other countries   
      supporting its war on terrorism. How will it handle these demands and how   
      will it face true friends who ask for nothing in exchange?  
        
      
  
      To a certain extent, China's    
      kind of extortion is an evil no less than terrorism. It would truly be    
      ironic if the world refuses to give in to terrorism but gives in to    
      extortion.   
        
        
      
  
      So, Taiwan needs your support.
  
         
         
      
  
       
 
       
       
      
 
                                                                    
            
      Yours Sincerely,   
         
         
      
   
                                 
      
  
         
      
  
       
         
           
            |  
               Yang Hsu-Tung.  
              President  
              Taiwan Tati Cultural 
                               
              And Educational  
              Foundation  |  
          
 
        
 
        
        
        
      
  
        
      