[Congressional Record Volume 144, Number 34 (Tuesday, March 24, 1998)]
[Extensions of Remarks]
[Page E454]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      PRESIDENT LEE TENG-HUI LEADS TAIWAN THROUGH FINANCIAL STORM

                                 ______
                                 

                           HON. ROBERT SMITH

                               of oregon

                    in the house of representatives

                        Tuesday, March 24, 1998

  Mr. SMITH of Oregon. Mr. Speaker, Much has been written and reported 
about the Asian financial crisis, the worst in decades. But Taiwan, so 
far, has remained relatively unscathed. Its economy has been jolted but 
not sunk.
  Taiwan's financial stability is attributable to its careful banking 
practices, ceilings on foreign equity investment and high foreign 
reserves. With a healthy financial system, Taiwan is more immune to the 
monetary crisis affecting the region.
  The Taiwan economic miracle has time and again demonstrated its 
resilience and dynamism during the past year of regional and global 
slowdown. Taiwan's economic growth rate in 1997 reached 6.72 percent, 
the highest in five years. Foreign currency reserves stand at US$86 
billion, an indication that Taiwan's traders and manufacturers have 
maintained their competitive edge amid growing competition from their 
Asian neighbors.
  Taiwan's economic vitality is seen in its debt-free status. Its total 
foreign debt amounts to less than US$100 million, whereas its Asian 
neighbors such as Korea and Indonesia are reeling from foreign debts.
  Taiwan's latest financial strength has prompted the financial Times 
of London and the Asian Wall Street Journal to hail it as the 
``Switzerland of the Orient.'' Most economists believe that Taiwan has 
the full potential to become a full-fledged developed country by the 
turn of the century.
  Taiwan's economic dynamics has been unquestionably helped by its 
growth of democracy. Last November, Taiwan held successful elections 
for county chiefs and city mayors. In fact, opposition party candidates 
won a majority of the seats, marking a new milestone in the development 
of party politics and popular political participation in Taiwan.
  As the year of the Tiger on the Chinese lunar calender begins, I wish 
Taiwan well in maintaining its economic prosperity, in initiating 
further dialogue with the Chinese mainland on the issue of 
reunification, in strengthening its strong ties to the United States 
and in gaining more and better friends internationally.
  Last but not least, I wish to send my greetings to Taiwan's Foreign 
Minister Jason Hu, who was the former Taiwan representative in 
Washington. Minister Hu was a very able diplomat in Washington. My 
colleagues and I benefitted greatly from his insight on world affairs. 
Madam Jason Hu was a charming hostess. In the meantime, my colleagues 
and I are looking forward to working closely with Jason Hu's successor, 
Ambassador Stephen Chen. Ambassador Chen was a former deputy secretary-
general to President Lee Teng-hui of the Republic of China and has been 
in government service all his adult life.

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