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No upside down presentation such as contained in your letter can change this fact. The United States Government has welcomed the willingness of the Chinese Communists to resume the ambassadorial talks, which were begun three years ago in Geneva, for the purpose of finding a means of easing tensions in the Taiwan area.

The next years, especially up to 1952, were characterized by terror and bloodshed. Tensions persisted for many years, but have lessened since about 1960. The new government of Taiwan resembled China's pre-war government under Chiang Kai-shek.

The President discussed the Taiwan Straits situation with the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, and the Chairman of the Joint Chiefs of Staff members of the National Security Council.

Because they are Chinese, the present government and, it is believed, the majority of the people, consider themselves a part of China from which they are temporarily separated. Therefore they reject the idea, proposed by some American politicians, that Taiwan should become an independent state.

Thus, the industrialization of Taiwan may be called "industrialization without tears," without the suffering, that is, of proletarian masses who produce objects which they cannot afford for themselves.

And public opinion is still unimpressed by the achievements of Taiwan and has hardly begun to change its attitude toward the government of the "Republic of China." To the historian and the sociologist, the experience of Taiwan indicates that China, if left alone and freed from ideological pressures, could industrialize more quickly than any other presently underdeveloped nation.

The presence of Vice Premier Deng Xiaoping next week will help to inaugurate that new era. And with prompt congressional action on authorizing legislation, we will continue our commitment to a prosperous, peaceful, and secure life for the people of Taiwan. I'm grateful that in the past year, as in the year before, no American has died in combat anywhere in the world.

Immigration increased in the eighteenth and especially the nineteenth centuries. These Chinese immigrants and their descendants are the "Taiwanese," Taiwan's main population of about eight million people as of 1948. Taiwan was at first a part of the province of Fukien, whence most of its Chinese settlers came; there was also a minority of Hakka, Chinese from Kuangtung province.

Its termination slowed development briefly but was not disastrous. Russian assistance was a "shot in the arm," as stimulating and about as lasting as American aid to Taiwan or to European countries. The stress laid upon heavy industry, in imitation of Russia, increased China's military strength quickly, but the consumer had to wait for goods which would make his life more enjoyable.

In the past, the United States representative at these talks has tried by every reasonable means to persuade the Chinese Communist representative to reach agreement on mutual renunciation of force in the Taiwan area but the latter insistently refused to reach such agreement.