For Taiwan XI


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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.

                                             
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However, Huang reiterated that “(the KMT’s move) to rescind former President Lee shows that the KMT also rescinded localization which Lee symbolizes.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

   

 

 

 

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