2008 Foreign Policy Report
Honorable Chair and Members of the Legislative Yuan’s Foreign and National Defense Committee: good morning!
About a month ago, following President Ma’s inauguration of May 20th, I was appointed Minister of Foreign Affairs. It is an honor for me to brief you today on our foreign policy.
The ultimate goal of a nation’s foreign policy is to ensure the country’s continuation and development. The history of the Republic of China records our strife for survival and growth. The adverse external environment our country faces is due to the globalization of such issues as security, energy, and the environment. In meeting these challenges, the nation has experienced a change in ruling political party twice. This shows that the people of Taiwan have high expectations of the government as it strives to overcome the trials of globalization, further develop the economy, and ensure the people’s security and prosperity.
When Premier Liu gave a briefing of his policy report to the Legislative Yuan on May 30th, he stated that the new cabinet will be one with the economy and investment as its priorities. As the cabinet pushes for economic development, it will also do its best to care for the underprivileged and protect the environment. As for foreign policy, our most important task is to create a favorable external environment for Taiwan’s economic development, as Taiwan works hand in hand yet competes with other countries in this era of globalization. By the same token, it must assist less-developed countries and, in particular, share its development experiences with its diplomatic allies. Under the challenges of globalization, we need to not only survive and develop, but also contribute to the sustainable development of the world. Therefore, the Republic of China needs to increase its overall economic power, while realizing its obligations as a global citizen.
Now I will brief you on Taiwan’s current foreign relations, policies and goals. Your comments would be very much appreciated.
I. Current International Political and Economic Situation
The international arena has seen two major developments in recent years: the increased speed of globalization and the rise of mainland China’s political and economic power. With globalization, international politics has gradually shifted from bi-polarization to counter-terrorism and global warming. In particular, international crude oil prices have skyrocketed, and the rise of China has further increased the price of commodities, thereby greatly affecting the entire world. All members of the global village have been paying more attention to these issues in hopes of finding viable solutions.
As for current international political and economic developments, three must receive our attention:
(1) Peace and development’s growing relationship
With globalization and increasing interdependence of nations, wars impact the world more now than ever before. As the cost of war increases, countries have to assess with great care whether and how to take action. Therefore, conflict prevention remains the optimal choice in crisis management. As the international community has become more convinced that peace and development are intertwined, it has encouraged the stable development of cross-strait relations.
(2) Rapid development of regional economic development and free trade agreements
The economic integration of regions and the signing of free trade agreements have gained momentum. Taking the European Union and NAFTA as role models, ASEAN has accelerated its pace of economic integration. To spur free trade, APEC continues to discuss issues related to economic integration of the region. Our government needs to prevent Taiwan’s exclusion from this process and play a greater role in the Asia-Pacific economy so as to safeguard and expand Taiwan’s economic interests.
(3) Increasing importance of transnational border issues
Countless trans-national border issues require bilateral and multilateral cooperation. These include the free economic order, nonproliferation of nuclear weapons, counter-terrorism, global warming, disaster relief, energy and food shortages, humanitarian aid and epidemics. No country can escape these matters or handle them alone. The Republic of China is no exception and needs to be further integrated into the international community to facilitate its participation in talks on these issues with other countries. In the meantime, it hopes to cultivate more specialists and professionals to let it contribute more to the international community.
II. New Paradigms of Flexible Diplomacy
As China enjoys rapid economic growth and exerts a larger impact on global and regional politics, Taiwan faces more difficulties in the international community, with its room to maneuver being constricted. For decades relations between the two sides have been marred by friction. In the pursuit of “change in the political status quo,” we cannot garner enough power at home and support abroad, thereby leading to unnecessary tension. On the other hand, if we choose to set aside political disputes and exercise our influence in the international community as the world’s 21st largest economy and major democratic member, we can open doors to Taiwan’s diplomatic efforts. The new administration’s “flexible diplomacy” upholds that both foreign and cross-strait policies play major roles. By increasing internal strengths and reducing fruitless external efforts, it is hoped that the Republic of China can produce more room in the international arena. In our foreign relations, we seek to operate under the principles of dignity, autonomy, pragmatism and flexibility. In this way, the two sides of the Taiwan Strait must acknowledge each other’s existence in the international community, show respect to the other and make their best endeavors to employ diplomatic resources to resolve problems faced by the international community.
Over the years, the international community has regarded the Taiwan Strait a volatile area. Due to instable cross-strait relations, Taiwan’s international competitiveness has been hurt. In various domestic polls, maintaining the status quo in the Taiwan Strait remains the most prevalent opinion.
As cross-strait economic cooperation increases, so will interdependence and the cost of hostility. If the two sides can agree to live in peace and pursue mutual existence and prosperity, both sides will benefit. The talks between the Straits Exchange Foundation (SEF) and the Association for Relations across the Taiwan Strait (ARATS) were resumed in June. Agreements concerning weekend charter flights and mainland tourists in Taiwan were reached at that time. They will be implemented soon, showing that both sides have taken steps forward to better relations. It is necessary to further find a concrete way to “find common ground despite differences” in the international arena so that the two sides can attain the goal of “mutual existence and prosperity.”
III. Bilateral Relations
The foreign relations of the Republic of China can be divided into two categories: bilateral relations with diplomatic and non-diplomatic allies, and multilateral relations via international organizations and conferences.
(1) Consolidating cooperation with diplomatic allies
Taiwan hopes to make more friends in the international community and enrich the nature of its substantive relations. The most important mission for this Ministry is to consolidate relations with our diplomatic allies.
The Republic of China has 23 diplomatic allies, which are mostly in Latin America, Africa and the South Pacific (with the sole exception of the Holy See, which is in Europe). This Ministry maintains close communication with the high-ranking officials of our allies and closely monitors our relations with these countries.
As mentioned previously, I received the heads of state and special envoys of our diplomatic allies on May 20, when they attended President Ma’s inauguration ceremony. The new administration announced its devotion to consolidating relations with its diplomatic allies. In the future, our cooperation projects will focus on assisting diplomatic allies improve the well-being of their people in areas such as poverty reduction, medical health, education and culture. Taiwan will introduce to its allies ways for developing their agricultural and fishery industries, while reducing their carbon imprint and energy consumption.
(2) Strengthening relations with the United States and Japan and enhancing substantive relations with non-diplomatic allies
Although the United States, Japan and the European Union lack formal diplomatic relations with Taiwan, they do maintain close substantive relations with us. Therefore, the strengthening and broadening of our relations with non-diplomatic allies are key goals in our foreign policy.
After the presidential election in March, our relations have been presented with many new opportunities. President Bush even called Taiwan “a beacon of democracy in Asia and the world” in his statement congratulating President Ma on being elected. Afterwards, he dispatched former White House Chief of Staff Andrew H. Card, Jr. to serve as a special envoy on his behalf.
In his inaugural address, President Ma stressed, “We will strengthen bilateral relations with the United States, our foremost security ally and trading partner.” Therefore, the Ministry is striving to
(1) enhance interaction with the US;
(2) urge the US to continue to sell Taiwan defensive arms as per the Taiwan Relations Act;
(3) promote bilateral economic and trade consultation to expand the current TIFA;
(4) sign a Taiwan-US FTA; and
(5) launch a Visa Waver Program (VWP) for our nationals traveling to the US.
Taiwan and Japan are close geographically and, therefore, share many interests. Our two peoples enjoy strong commercial, cultural and tourism ties, with Japan representing the second most common destination for our youths studying abroad. The major political figures of Japan frequently accept our invitations to visit Taiwan. In hopes of strengthening the global disease prevention network, Japan has staunchly supported our participation in the World Health Organization. These positive aspects testify to the long and solid friendship between our two countries. Our government cherishes its relations with Japan and hopes to continue strengthening them.
As for the sports fishing boat Lianhe that was involved in a collision and sank in the waters surrounding the Diaoyutai islands, this Ministry stood by its sovereignty over Diaoyutai and its position to request Japan to release the crew, apologize and compensate the victims. We are glad that Japan responded positively to our requests. On June 13, the captain of Lianhe was returned to Taiwan safe and sound. Japan also promised to provide compensation, acknowledged the mishap and expressed regret about the incident. Although their response did not fully meet our expectations, Japan indeed expressed sincerity and good will. After further negotiations with Japan, it did finally apologize. We believe that disputes between countries should be resolved in a peaceful manner. In the meantime, we have asked Japan to consider resuming a new round of fishery negotiations.
In addition, this Ministry’s goals for Japan include an economic partnership agreement, promotion of tourism, people-to-people exchanges (youth exchanges in particular), a working holiday agreement and environmental protection ventures.
The European Union and European Parliament keep a close eye on cross-strait relations, with their positions on peaceful solutions in cross-strait relations reflecting our own goals. Ample room for the development of Taiwan-Europe relations exists. In the future, closer substantive relations will be pursued, such as visa-exemption treatment for our people to Europe.
Southeast Asian countries are geographically close with Taiwan. In recent years, an increasing number of Taiwan’s enterprises have shifted their investment destinations to Southeast Asia due to China’s cancellation of preferential treatments and the increase of operating costs. The government attaches great importance to protecting the rights and interests of Taiwan’s businesses so as to enhance our interaction with Southeast Asian countries. As ASEAN regional integration is finally showing some momentum, Taiwan is actively pursuing opportunities to join the dialogue mechanism for ASEAN regional economic integration, while promoting pragmatic cooperation on disaster-prevention and counter-terrorism.
West Asia possesses abundant energy resources and plays an important role in our own economic development. Its industries highly complement Taiwan’s petrochemical, high-tech, information and medical industries. In the future, this Ministry will pay greater attention to the features of other countries to make better use of Taiwan’s advantages, thereby creating win-win situations for both of us.
(3) Increasing quality of foreign aid to reinforce Taiwan’s positive image
Advanced countries, such as the United States, Japan and those in Europe, regard foreign aid as one of the most important facets of a country’s foreign policy. Therefore, they establish agencies dedicated to international assistance affairs.
As for foreign aid standards, OECD suggests that 0.33% of a country’s GDP be donated as foreign aid, while the UN suggests 0.7%. Presently, Taiwan only provides 0.14% of its GDP to international assistance. Regardless of whichever standard you chose, our percentage is much lower than that of other countries.
Since the suspension of the Doha round talks, the WTO has taken the position that developed countries should provide “trade assistance” to less advanced developed countries, including technical assistance (TA) and capacity building (CB) measures. Its newest initiative echoes our foreign aid goals as well.
As Taiwan ranks the 21st largest economic power in the world, its current foreign aid budget for assisting developing countries can consolidate Taiwan’s relations with them and satisfy its humanitarian spirit. In the past, cross-strait relations were tense, diplomatic confrontation fierce. Both factors provided other countries with opportunities to take advantage of the situation, making both sides waste even more resources. We believe that by strengthening our foreign aid policy, making better use of our limited resources and effectively implementing related measures, we can demonstrate willingness to shoulder our responsibilities as a member of the international community. In the end, we can elevate Taiwan’s image in the international community.
Next this Ministry will review the effects of its foreign aid policies in order to evaluate the grants, loans and technical assistance provided. This will help demonstrate the fruits of cooperation with diplomatic allies and our assistance to various nations. We hope to reinforce the image of the Republic of China as a country that likes helping others.
IV. Promoting Multilateral Relations Pragmatically
(1) Safeguarding our rights and interests, engaging in active participation and strengthening our role in the international governmental organizations that we have joined
To date, Taiwan has joined 48 international governmental organizations, including the World Trade Organization (WTO), World Organization for Animal Health (OIE), Afro-Asia Rural Development Organization, Food and Fertilizer Technology Center (FFTC), Egmont Group, and Commission for the Conservation of Southern Bluefin Tuna (CCSBT). This Ministry will strive to maintain our rights and interests in the various organizations in which we participate. We hope to strengthen coordination with Taiwan’s related agencies and encourage them to step up their participation in meetings and activities of intergovernmental governmental organization. This will help promote Taiwan’s substantive cooperation in international issues and strengthen its role in related organizations.
(2) Participating in international functional and professional organizations
The international community recognizes UN agencies and related organizations for their functionality and professionalism. However, due to China’s interference, Taiwan remains excluded from UN participation. Since the UN system is overly political in nature, Taiwan’s campaign requires very detailed planning. In hopes of attaining substantive participation, this Ministry’s will decide its steps and measures, while defending its equality and dignity. Based on functional and professional considerations, this Ministry will put top priority on gaining presence in the WHO, WB and IMF.
In view of mainland China’s clout in many international governmental organizations, our participation depends on its position. As cross-strait relations improve, our pursuit of international support will become easier.
Being a sovereign country, we have the right to participate in the United Nations. This Ministry will re-evaluate the results of previous bids to develop a proper strategy.
(3) Integrating into Asia-Pacific regional cooperation
Being an East Asian aviation hub, Taiwan’s bilateral trade with Asia Pacific countries has grown significantly over the years. Following the liberalization of the cross-strait economy, it is expected that capital and goods will flow more smoothly between the two sides. In addition to existing bilateral channels, APEC can also serve as a communication channel to facilitate our participation in cooperation projects of the Asia-Pacific region. We will further promote initiatives that are in our interests and foster regional development.
(4) Promoting technical cooperation in environmental protection, energy conservation and increasing food production
Climate change and skyrocketing food prices are global concerns, especially by our allies in the South Pacific, Latin America and Africa. As they need prompt assistance, this Ministry will promote cooperative projects to assist them better respond to these issues.
V. Promoting comprehensive diplomacy to spur interaction with the international community
Parliamentarian diplomacy, civil society participation and international NGO cooperation have gained momentum throughout the world. In the post-Cold War era, many issues need professional and expert advice in order to find a resolution. Taiwan has experienced various stages of democratization, with the different generations of immigrants creating a rich and pluralistic culture for it. As time goes by, resources and channels for the private sector to participate in international organizations have increased. The members of Taiwan’s Legislative Yuan and Control Yuan have played an increasingly important role in international exchange and cooperation as well. This Ministry will serve as a bridge for diplomatic endeavors in the areas of trade and investment, high-tech, culture, environmental protection and democracy. It also will provide humanitarian aid as a means to promote flexible diplomacy.
VI. Strengthening Personnel Training to Bolster Expertise
As the world is constantly undergoing change in this era of globalization, diplomats of the Republic of China need to hone their skills so they can adapt more readily to new developments and shoulder their responsibilities. Thus, the Ministry of Foreign Affairs will strengthen the training of its diplomats and increase the number of its middle and high-level managers. The appointment and promotion of diplomats will be based on their professionalism, experience and abilities.
VII. Conclusion
The world is rapidly evolving, yet change can lead to the outbreak of international conflicts and disputes. We need to be clever and patient when seeking solutions. I understand that each of you hold great expectations of this Ministry. I also know that the people of our country hope to elevate Taiwan’s status in the international community so as to foster national development. The staff of the Ministry of Foreign Affairs and I must accept this challenge and do our utmost to coordinate with other government agencies in realizing our foreign policy goals. Your support in our endeavors is very much appreciated! Thank you. (E)