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DATE=12/14/1999
TYPE=BACKGROUND REPORT
TITLE=YEARENDER: TAIWAN
NUMBER=5-44982
BYLINE=STEPHANIE MANN
DATELINE=WASHINGTON
INTERNET=YES
CONTENT=
VOICED AT:
INTRO:  Taiwan President Lee Teng-hui is sticking by 
his position that any dealings between Taipei and 
Mainland China should be on a state-to-state basis.  
That assertion -- first made in July and repeated as 
recently as this month (mid-December) -- is one of the 
most significant events affecting Taiwan during 1999.  
Correspondent Stephanie Mann reports another event 
that greatly marked Taiwan's year was the devastating 
earthquake in September.
TEXT:  An estimated 24-hundred people died when the 
earthquake struck central Taiwan on September 21st.  
The quake measured seven-point-six on the Richter 
scale and caused about 14-billion-dollars in losses. 
Taiwan specialist Bruce Dickson says the size of the 
earthquake and the scope of its devastation had a 
serious psychological impact on the people of Taiwan. 
            // DICKSON ACT ONE // 
      It also revealed the rather slipshod building 
      practices that had gone on.  A lot of the 
      devastation and the deaths and casualties that 
      resulted were the consequence of improper 
      building practices and not going by building 
      code.  This has had a continuing political 
      impact as the various political parties have 
      been criticized for allowing this type of 
      construction to go on.
            // END ACT //
Professor Dickson, the Director of the Sigur Center 
for Asian Studies at George Washington University, 
says the earthquake's full impact on the economy has 
yet to be seen.
            // DICKSON ACT TWO // 
      It is expected that the overall growth of 
      Taiwan's economy will be reduced to some extent 
      because of the earthquake.  A lot of the key 
      industries, such as the computer industry and 
      other high-tech areas were affected, and these 
      are some of the areas where Taiwan's key exports 
      are located.  So, that will indeed have at least 
      a short-term impact on Taiwan's economic growth.
            // END ACT //
Taiwan and China policy analyst Robert Downen says 
newly released statistics show Taiwan's economic 
growth declined in the third quarter of the year 
because of the earthquake.  But Mr. Downen says 
fourth-quarter figures are expected to improve, and he 
does not expect the earthquake to have a lasting 
effect on Taiwan's economy. 
            // DOWNEN ACT ONE //
      I have just recently seen statistics that, 
      despite the earthquake, they are forecasting 
      that the growth rate for this year, 1999, will 
      still end up at five-and-a-half-percent, which 
      is pretty remarkable, particularly when you 
      consider the East Asia economic slump of the 
      last couple of years. 
            // END ACT // 
Mr. Downen, who was a U-S State Department officer in 
the 1980's, says the earthquake was a major tragedy 
for Taiwan, but he says Taiwan and its people are 
remarkably resilient.  He expects them to recover from 
the earthquake just as they have managed to cope as 
Taiwan continued to lose its diplomatic status during 
the past 25-years. 
Analysts say a desire to strengthen Taiwan's 
international position is partly what prompted 
President Lee Teng-hui to make his call for equal 
state-to-state treatment with mainland China.
Professor Dickson says President Lee's comment 
prompted a firestorm of negative reaction in 
Washington, Beijing, and many other capitals, but the 
reaction in Taiwan was mostly positive.
            // DICKSON ACT THREE//
      It responds to the public's desire to have a 
      more prominent role in international affairs, a 
      status that is more in keeping with its record 
      of economic and political progress.  Over the 
      years, Taiwan has been either expelled or 
      excluded from virtually all of the key 
      international organizations.  Its diplomatic 
      ties have dwindled to less than 30-countries, 
      mostly small Latin American and African 
      countries.
            // END ACT //
And Mr. Dickson says many people feel that Taiwan 
deserves more respect than it is given. 
The most prominent event facing the people of Taiwan 
as they enter the year 2000 is a presidential election 
in March.  It will be Taiwan's second direct popular 
election for president. 
Robert Downen says the election campaign shows how 
Taiwan has opened its political system and made more 
progress in democratizing than many other Asian 
countries.
            // DOWNEN ACT TWO //
      The fact that there has been such an open multi-
      party system in evidence this year, and even 
      challenges within parties, that it really 
      demonstrates that at long last Taiwan, the 
      Republic of China, has really got a very healthy 
      and vigorous political system.  And it really 
      sets a good example, I think, for the rest of 
      East Asia.
            // END ACT //
The so-called "China issue" - that is, the threat 
posed by China, and whether and how to reunite with 
the mainland - has always been part of Taiwan 
politics.  But analysts say now that the ruling party 
says China should treat Taiwan on an equal state-to-
state basis, the positions of the various political 
parties have moved closer together.  So, they say 
voters are not likely to cast their ballots solely on 
the basis of a candidate's position on the question of 
unification or independence.
            // REST OPT // 
Among a field of several candidates, there are three 
major contenders.  Vice President Lien Chan is running 
as the candidate of the ruling Nationalist Party, 
called Kuomintang.  A veteran Kuomintang member, James 
Soong, split from the party to launch an independent 
bid for president.  And the candidate of the main 
opposition party, the Democratic Progressive Party, is 
Chen Shui-bian.  
Bruce Dickson says the future of the Kuomintang is in 
doubt if either of the leading opponents -- Mr. Soong 
or Mr. Chen -- win the election.  The Kuomintang has 
ruled Taiwan since 1949, when the nationalists fled 
the mainland as the communists came to power.   
(SIGNED)
NEB/SMN/RAE
14-Dec-1999 11:12 AM EDT (14-Dec-1999 1612 UTC)
NNNN
Source: Voice of America
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