[Congressional Record Volume 144, Number 1 (Tuesday, January 27, 1998)]
[Extensions of Remarks]
[Page E11]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             TAIWAN STANDS TALL FINANCIALLY AND POLITICALLY

                                 ______
                                 

                        HON. GERALD B.H. SOLOMON

                              of new york

                    in the house of representatives

                       Tuesday, January 27, 1998

  Mr. SOLOMON. Mr. Speaker, during the January recess I had an 
opportunity to visit the Republic of China on Taiwan. I met with 
President Lee Teng-hui, Foreign Minister Jason Hu, and other leaders. 
We discussed a number of interesting issues.
  One issue was the current financial turmoil affecting Asia. It is 
interesting to note that Taiwan, so far, has remained relatively 
unscathed and has stood out as one of the few strong Asian economies. 
It has close to $90 billion of foreign currency deposits. Its banking 
sector is not as exposed as other economies to real estate and stock 
market speculation. Its currency has depreciated 20 percent against the 
dollar but will remain stable.
  The Taiwan economic miracle has shown resilience and dynamism during 
the past months of Asian meltdown. The economic growth rate for Taiwan 
in 1997 reached 6.72 percent, the highest in 5 years. Taiwan's economic 
vitality can also be seen in its low foreign debts. Its total foreign 
debt amounts to less than $100 million.
  Taiwan's economic stability stemmed mainly from sound planning for 
strong growth and development, financial reform, economic 
liberalization, and the acceleration of privatization.
  The Financial Times of London and the Asian Wall Street Journal 
recently described Taiwan as the ``Switzerland of the Orient.'' Such 
accolades about Taiwan speak volumes about the strength and vitality of 
Taiwan's economy and Taiwan's potential to become a full-fledged 
developed economy by the turn of the century.
  President Lee, Foreign Minister Hu and I also discussed Taiwan's 
relations with the mainland. Taipei has reiterated its ``three nos'' 
and ``three musts'' policies toward the Chinese mainland. The ``three 
nos'' refer to no Taiwan independence, no hasty unification and 
no confrontation. The ``three musts'' are the maintenance of peace, the 
continuation of exchanges and the search for a win-win situation that 
benefits both Taiwan and the mainland.

  Foreign Minister Hu told me that Taipei and Peking must learn to 
treat each other with respect and work toward collective cooperation. 
Taipei has always kept its door open for negotiating with Peking and 
that cross-strait talks should be resumed as soon as possible.
  Foreign Minister Hu, the former ROC representative in Washington, is 
young and energetic. During the last three months as his nation's top 
diplomat, he has traveled to Africa, consolidated friendship and 
relations for his country worldwide. In my conversations with him, he 
discussed the importance of Taiwan-US relations.
  Minister Hu reminded me that Taipei has no intention of interfering 
with the development of US-PRC relations and that Taipei hopes that the 
US will abide by the Taiwan Relations Act and its regulations regarding 
arms sales to Taipei. Moreover, he hopes that the US will not change 
its consistent position on the sovereignty of Taiwan, since the US has 
never recognized that the PRC enjoys sovereignty over Taiwan.
  Minister Hu also drew my attention to the trade relations between 
Taipei and the US. Citing Taiwan's purchase of American agricultural 
exports as one example of the strong trade relations between the two 
countries, he mentioned Taiwan is the fifth largest market for American 
agricultural exports. In 1996 Taiwan's imports of American agricultural 
products were US$2.9 billion; by contrast, the PRC is the seventh 
largest market for American agricultural exports. Taiwan, in fact, is 
one of the most important markets for US goods.
  Apart from strong trade relations between Taiwan and the US, Minister 
Hu stressed that the peoples of Taiwan and the United States share the 
same system of values. Taiwan's democratization has gained recognition 
from the American public and he hopes that the United States will 
continue to treat both Taiwan and the Chinese mainland fairly and make 
efforts for Taiwan and the mainland to settle the reunification issue 
peacefully.
  I was very impressed with Taiwan's financial and political 
development. And Mr. Speaker, a little history is in order as well. You 
know, Taiwan is one of the best friends America has ever had. Back 
during the Cold War, we in America really didn't have a more steadfast 
ally in our struggle against Communism than the people of Taiwan.
  They were integral in stopping the spread of that deadly system in 
Asia, and for that we owe them a debt of gratitude.
  And with the successive free elections over the past few years, the 
obvious respect for human rights that is evidenced there, and the good 
neighborly policy they follow in foreign affairs, it is obvious to all 
honest and well-meaning people that the Republic of China on Taiwan, 
and not the Communist dictatorship in Beijing, represents the correct 
model for the future of Chinese civilization. This will remain true no 
matter what kind of reforms the regime in Beijing attempts, and no 
matter what kind of policy the West pursues vis-a-vis that regime, as 
long as the Communists remain in power.
  Mr. Speaker, after my trip, I am more convinced than ever that Taiwan 
is one of the few true democracies in Asia worthy of our support.

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