1. 1 The Taiwan Issue and Its Implication for China-Latin American Relations Professor Jiang Shixue Chinese Academy of Social Sciences Vice President Chinese Association of Latin American Studies jiangsx@cass.org.cn

2. 2 Why is Taiwan an inalienable part of China? What is the origin of the Taiwan issue? What is the Chinese government's policy on Taiwan? What is Taiwan’s position? Why cannot Taiwan declare itself a state under the name of the "Republic of China“?

3. 3 How to understand “One-China Principle” in the international community? What is the situation of the Cross-Strait relations now? What is the implication of the Taiwan issue on China-Latin America relations?

4. 4 People’s Republic of China 34 administrative divisions at provincial level: 23 provinces (including Taiwan Province), 4 municipalities directly under the Central Government, 5 autonomous regions and 2 special administrative regions.

5. 5 Basics about Taiwan Population; 23 million GDP ： $430.6 billion (2010 est.) Per capita GDP: $18700 Capital: Taiwan Two major political parties: –Kuomintang (KMT) or Nationalist Party –Democratic Progressive Party

6. 6

7. 7

8. 8 1. Why is Taiwan an inalienable part of China? Taiwan was known as Yizhou or Liuqiu in ancient times. More than 1,700 years ago Shen Ying ( 沈莹 ) described the development of Taiwan by the Chinese people in Seaboard Geographic Gazetteer ( 《临海水土志》 ). This was the world's earliest written account of Taiwan.

9. 9 Since early 17th century the Chinese people began to step up the development of Taiwan. By 1893 (19th year of the reign of Qing Emperor Guangxu) their population exceeded 2.54 million people in 507,000 or more households.

10. 10 European invasions In 1624 Dutch colonialists invaded and occupied the southern part of Taiwan. Two years later Spanish colonialists seized the northern part of Taiwan. In 1642 the Dutch evicted the Spaniards and took over northern Taiwan.

11. 11 In 1661 General Zheng Chenggong led an expedition to Taiwan and expelled the Dutch colonialists from the island in the following year.

12. 12 Japanese invasion In April 1895, through a war of aggression against China, Japan forced the Qing government of China to sign the unequal Treaty of Shimonoseki, and forcibly occupied Taiwan.

13. 13 Signing the Treaty of Shimonoseki

14. 14 In July 1937, Japan launched an all-out war of aggression against China. In 1941, the Chinese government issued the Proclamation of China's Declaration of War Against Japan, announcing to the world that all treaties, agreements and contracts concerning Sino-Japanese relations, including the Treaty of Shimonoseki, had been abrogated, and that China would recover Taiwan.

15. 15 In December 1943, the Cairo Declaration was issued by the Chinese, U.S. and British governments, stipulating that Japan should return to China all the territories it had stolen from the Chinese, including Northeast China, Taiwan and the Penghu Archipelago.

16. 16 Franklin Roosevelt, Winston Churchill and Chiang Kai-shek

17. 17 The Potsdam Proclamation, or Proclamation Defining Terms for Japanese Surrender, a statement calling for the Surrender of Japan in World War II, signed by China, the United States and Britain in 1945 stipulated that "The terms of the Cairo Declaration shall be carried out."

18. 18 In August 1945, Japan surrendered and promised to faithfully fulfill the obligations laid down in the Potsdam Proclamation. On October 25, 1945, the Chinese government recovered Taiwan and the Penghu Archipelago, resuming the exercise of sovereignty over Taiwan.

19. 19 2. What is the origin of the Taiwan issue? The Chinese people, led by the Communist Party, founded the People‘s Republic of China (PRC) in 1949, replacing the government of the Republic of China (ROC) to become the only legal government of the whole of China and its sole legal representative in the international arena.

20. 20

21. 21 A group of military and political officials of the Kuomintang (KMT), or Chinese Nationalist Party, took refuge in Taiwan and, with the support of the U.S., created the division between the two sides of the Straits.

22. 22 Chiang Kai-shek (1887—1975)

23. 23 KMT has continued to use the designations "Republic of China" and "government of the Republic of China”. That’s the origin of the Taiwan issue.

24. 24 In October 1971, the United Nations General Assembly adopted at its 26th Session Resolution 2758, which expelled the representatives of the Taiwan authorities and restored the seat and all the lawful rights of the government of the PRC in the United Nations.

25. 25 Japan In 1972, China and Japan established diplomatic relations. Japan “recognizes the government of the PRC as the only legitimate government of China, fully understands and respects the Chinese government's position that Taiwan is an inalienable part of the territory of the PRC.”

26. 26 The United States In December 1978, China and the U.S. established diplomatic relations. The U.S. “recognizes the government of the People's Republic of China as the sole legal government of China" and "acknowledges the Chinese position that there is but one China and Taiwan is a part of China."

27. 27 Paul V. Kane “To Save Our Economy, Ditch Taiwan”, New York Times, Nov. 11, 2011. Obama should enter into closed-door negotiations with Chinese leaders to write off the $1.14 trillion of American debt currently held by China in exchange for a deal to end American military assistance and arms sales to Taiwan and terminate the current United States-Taiwan defense arrangement by 2015.

28. 28 3. What is the Chinese government's policy on Taiwan? In 1979 the Chinese government adjusted its policy towards Taiwan from “liberation” to “peaceful reunification”; and gradually the scientific concept of "one country, two systems" emerged.

29. 29

30. 30

31. 31 Key points of the policy 1 China will do its best to achieve peaceful reunification, but will not commit itself to rule out the use of force;

32. 32 Key points of the policy 2 China will actively promote people- to-people contacts and economic and cultural exchanges between the two sides of the Taiwan Straits, and start direct trade, postal, air and shipping services as soon as possible;

33. 33 Key points of the policy 3 China will achieve reunification through peaceful negotiations and, on the premise of the One-China Principle, any matter can be negotiated.

34. 34 After reunification 1 After reunification, the policy of "one country, two systems" will be practiced, with the main body of China (China mainland) continuing with its socialist system, and Taiwan maintaining its capitalist system for a long period of time to come.

35. 35 After reunification 2 After reunification, Taiwan will enjoy a high degree of autonomy, and the Central Government will not send troops or administrative personnel to be stationed in Taiwan.

36. 36 “Internal affairs” While carrying out the policy of peaceful reunification, the Chinese government always makes it clear that the means used to solve the Taiwan issue is a matter of China's internal affairs.

37. 37 “Use of force” 1 China is under no obligation to commit itself to rule out the use of force. This is by no means directed against Taiwanese people, but against the scheme to create an "independent Taiwan" and against the foreign forces interfering with the reunification of China.

38. 38 “Use of force” 2 It is intended as a necessary safeguard for the striving for peaceful reunification. Resort to force would only be the last choice made under compelled circumstances.

39. 39 “Use of force” 3 If Taiwan denies the One-China Principle and tries to separate Taiwan from the territory of China, the premise and basis for peaceful reunification will cease to exist.

40. 40 4. What is Taiwan’s position? In 1988, after Lee Teng-hui became the leader of the Taiwan authorities, he publicly stated time and again that the basic policy of the Taiwan authorities was that "there is only one China, not two," and "we have always maintained that China should be reunited, and we adhere to the principle of 'one China."

41. 41 However, starting from the early 1990s, Lee Teng-hui gradually deviated from the One- China Principle, trumpeting "two governments”, "two reciprocal political entities”. Lee Teng-hui: "Taiwan is already a state with independent sovereignty," and “at the present stage the Republic of China is on Taiwan and the People's Republic of China is on the mainland." Lee Teng-hui: “I have never said that there is only one China.”

42. 42 Lee Teng-hui and Chen Shui-bian

43. 43 Lee Teng-hui and Chen Shui-bian In foreign relations, to carry out the activities for "expanding the international space of survival". In military affairs, to buy large quantities of advanced weapons from foreign countries.

44. 44 In ideology and culture, to destroy the Chinese awareness of Taiwanese and their identification with the motherland.

45. 45 5. Why cannot Taiwan declare itself a state under the name of the “Republic of China”? First, state sovereignty is inseparable. Second, the international community recognizes that there is only one China, that Taiwan is a part of China, and that the government of the PRC is the sole legal government of China.

46. 46 Third, the reason that the Taiwan question has not been settled for such a long period of time is mainly due to the intervention of foreign forces and the obstruction of the separatist forces in Taiwan.

47. 47 “Two German states formula" Why cannot the "two German states formula" be applied to the settlement of the Taiwan issue? First, the German question arose entirely from external factors, while the Taiwan issue, left over by China's civil war, is a matter of China's internal affairs.

48. 48 Second, Germany was divided according to a series of international treaties during and after the Second World War, while the Taiwan question involves provisions of the Cairo Declaration, the Potsdam Proclamation and other international treaties, stating that Japan must return Taiwan.

49. 49 Third, the two German states had foreign troops stationing in their territories and so were compelled to recognize each other and co-exist in the international community; the Chinese government has always persisted in the principle of one China.

50. 50 “Controversy about democracy and system" The different social systems across the Straits should not constitute any barrier to peaceful reunification. The Chinese government acknowledges the differences between Taiwan on the one hand and Hong Kong and Macao on the other; so it is prepared to apply a looser form of the "one country, two systems" policy in Taiwan than in Hong Kong and Macao.

51. 51 6. How to understand “One-China Principle” in the International Community? 1) Relations between Taiwan and those countries maintaining diplomatic relations with the mainland of China: no official ties, only non- governmental economic or cultural exchanges. As a part of China, Taiwan has no right to represent China in the international community, nor can it establish diplomatic ties or enter into relations of an official nature with foreign countries.

52. 52 2) Relations between international organizations and Taiwan: (a) Only under the principle of one China and in the light of the nature and statutes of the international organizations concerned as well as the specific circumstances, can the Chinese Government consider the question of Taiwan's participation in the activities of such organizations.

53. 53 (b) All the specialized agencies and organizations of the United Nations system are intergovernmental organizations composed of sovereign states, and Taiwan's re-entry into the UN is out of the question.

54. 54 (c) Aviation services: State-run airlines of countries having diplomatic relations with China certainly must not operate air services to Taiwan. Privately-operated airlines must seek China's consent.

55. 55 (d) Arms sales to Taiwan by countries having diplomatic relations with China: No - Chinese ambassador to the United States Zhang Yesui: “China strongly urges the United States to be fully aware of the high sensitivity and serious harm of the issue, seriously treat the solemn stance of China, honor its commitment and immediately cancel the wrong decision.”

56. 56 7. What is the situation of the Cross-Strait relations now? Ma Ying-jeou was sworn into office on May 20, 2008. The Economic Cooperation Framework Agreement (ECFA) is a preferential trade agreement between the governments of the mainland of China and Taiwan, signed on June 29, 2010, in Chongqing. Cross-Strait economic relations are booming.

57. 57 Three links Direct postal, direct transportation and direct trade were officially restored on 15 December 2008.

58. 58 WHO After 12 failed attempts since 1997 to join the United Nations’ World Health Organization (WHO) as an observer, Taiwan has been invited to take part in the WHO’s World Health Assembly in Geneva in May 2009.

59. 59 Diplomatic truce It was reported that Ma Ying-jeou put forward the notion of diplomatic truce after he came to power. Ma Ying-jeou told The Economist in June 2009 that he believes China has even adopted the surprising policy of refusing requests from countries that recognize Taiwan to switch their diplomatic ties to China instead.

60. 60 8. What is the implication of the Taiwan issue on China-Latin America relations? Motivations behind China’s interest in LA Economic reasons: -Natural resources -Potential market for Chinese products Political reasons: - To build a harmonious world

61. 61 To learn some Latin American experiences and lessons in the process of promoting China’s own economic and social progress. To strengthen China’s soft power in an age of globalization. The Taiwan issue

62. 62 23 countries Today there are only 23 countries that maintain diplomatic relations with Taiwan. In Asia-Pacific: 6 Kiribati, the Marshall Islands, Nauru, Palau, Solomon Islands, Tuvalu.

63. 63 In Latin America 12 Central America: 6 Belize, Guatemala, Honduras, Nicaragua, Panama, El Salvador; Caribbean: 5 Dominican Republic, Haiti, Saint Christopher and Nevis, Saint Lucia, St. Vincent and the Grenadines; South America: Paraguay

64. 64 Africa: 4 Burkina Faso, Sao Tome and Principe, Swaziland, Gambia. Europe: 1 Vatican

65. 65 “Question of the representation of Taiwan in the UN” Taiwan’s move to apply for membership in the United Nations started in 1993. Since then it has been making great efforts to ask its allies, including the Central American and the Caribbean countries, to raise the so-called “question of the representation of Taiwan in the United Nations”.

66. 66 Money matters. Former Costa Rican President Miguel Angel Rodríguez (1998-2002) resigned from his new post as OAS chief in 2004 after Costa Rican newspaper La Nación reported that he got money from a French company and Taiwan. Many countries in Latin America get economic aid from mainland of China and Taiwan.

67. 67 Sir Garfield Sobers Gymnasium, Barbados The building of the Barbados government offices Barbados GDP per capita: 12 000US$;

68. 68 National Stadium of the Bahamas (Capacity: 30 000) China’s largest aid project in the Caribbean The Bahamas GDP Per capita: 24 000US$, total population: 307.000

69. 69 Saint Lucia The December 2006 general election resulted in defeat of the Labor Party by the United Workers Party. On April 30, 2007, Saint Lucia switched to Taiwan and China cut its relations on May 5. PRC is against “double recognition”. Saint Lucia established diplomatic ties with PRC on September 1, 1997.

70. 70 Trinidad Express Newspaper According to its article titled “Taiwan's 'dollar diplomacy' affecting St Lucia politics”, “Taiwan seems to be creating problems for some of the member states of Caricom as it continues its long, arduous battle for international recognition to secure membership of the United Nations as a sovereign state. ”

71. 71 Other switches Grenada: 1985/10/01 with PRC; 1989/07/19 with Taiwan, 2005/01/20 again with PRC; Nicaragua: 1985/12/07 with PRC, 1990/11/06 with Taiwan. Belize: 1987/02/06 with PRC, 1989/10/23 with Taiwan.

72. 72 Costa Rica On June 1, 2007, China made a historical breakthrough in its relations with Central America. According to Joint Communiqué, “The Costa Rican government recognizes that there is only one China in the world and the government of the People's Republic of China is the sole legitimate government representing the whole China. Taiwan is an inalienable part of the Chinese territory.”

73. 73 “Diplomatic truce” in LA Paraguayan President Lugo said in the election campaign that he would shift diplomatic stance to Beijing if he could win the presidency. According to Chiang H. John, the son of the former Taiwan leader Chiang Ching-kuo, Paraguay is the first successful example showing the effectiveness of the “diplomatic truce”.

74. 74 Ecuador After granting a contract of building a hydroelectric plant to the Chinese company Sinohydro in October 2009, Ecuador started to negotiate with the Export-Import Bank of China (Ex-im Bank) for a loan of $1.7 billion. The Ex-im would like to request the Central Bank of Ecuador to put up its own assets as collateral for the loan.

75. 75 President Correa: Ecuador could get the funds from another source by changing its international policy. The Ex-im Bank gave in, though Taiwan did not say that it would provide Ecuador with the loan.

76. 76 Who will win the 2012 election?

77. 77 Thank you.