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After the termination of American economic aid, Taiwanese trade with Japan, the Philippines, and Korea grew in importance and with it the economic strength of Taiwan-Chinese businessmen. After 1964, Taiwan became a strong competitor of Hong Kong and Japan in some export industries, such as electronics and textiles.

In Lebanon, Taiwan, and Berlin our stand has been dear, right, and expressive of the determined will of a united people. Acting with other free nations we have undertaken the solemn obligation to defend the people of free Berlin against any effort to destroy their freedom.

Eventually, there were on Taiwan about two million of these "mainlanders," as they have sometimes been called. When the Chinese Nationalists took over from the Japanese, they assumed all the leading positions in the government. The Taiwanese nationals who had opposed the Japanese were disappointed; for their part, the Nationalists felt threatened because of their minority position.

The government's aim was to make Mandarin Chinese the language of all Chinese in Taiwan, as it had been in mainland China long before the War, and to weaken the Taiwanese dialects. In the beginning few Taiwanese qualified as teachers because, under Japanese rule, Japanese had been the medium of instruction.

3 Communist China Both Taiwan and mainland China have developed extremely quickly. The reasons do not seem to lie solely in the form of government, for the pre-conditions for a "takeoff" existed in China as early as the 1920's, if not earlier. That is, the quick development of China could have started forty years ago but was prevented, primarily for political reasons.

But as we meet each test with courage and unity, we contribute to the safety and the honor of our beloved land and to the cause of a just and lasting peace. President Eisenhower's Letter to Premier Khrushchev, September 13, 1958 DEAR MR. CHAIRMAN: I have your letter of September 7. I agree with you that a dangerous situation exists in the Taiwan area.

In Lebanon, Taiwan, and Berlin our stand has been dear, right, and expressive of the determined will of a united people. Acting with other free nations we have undertaken the solemn obligation to defend the people of free Berlin against any effort to destroy their freedom.

Taiwan complains about the "brain drain," as about 93 per cent of its students who go overseas do not return, but in many fields it has sufficient trained manpower to continue its development, and in any case there would not be enough jobs available if all the students returned.

By the end of 1948, most of mainland China was in the hands of the communists, who established their new capital in Peking. 2 Nationalist China in Taiwan The Nationalist government retreated to Taiwan with those soldiers who remained loyal. This island was returned to China after the defeat of Japan, though final disposition of its status had not yet been determined.

During the Second World War, the island suffered from air attacks and from the inability of the Japanese to protect its industries. After Chiang Kai-shek and the remainder of his army and of his government officials arrived in Taiwan, they were followed by others fleeing from the communist regime, mainly from Chekiang, Kiangsu, and the northern provinces of the mainland.