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I recall that in the extended negotiations which the representatives of the United States and Chinese Communist regime conducted at Geneva between 1955 and 1958, a sustained effort was made by the United States to secure, with particular reference to the Taiwan area, a declaration of mutual and reciprocal renunciation of force, except in self-defense, which, however, would be without prejudice to the pursuit of policies by peaceful means.

When Taiwan was ceded to Japan, it was still a colonial area with much lawlessness and disorder, but with a number of flourishing towns and a growing population.

There are, mainly in the United States and Japan, groups of Taiwan-Chinese who favour an independent Taiwan, which naturally would be close to Japan politically and economically. One may agree with their belief that Taiwan, now larger than many European countries, could exist and flourish as an independent country; yet few Chinese will wish to divorce themselves from the world's largest society.

We can regard Taiwan from 1964 on as occupying the "takeoff" stage, to use Rostow's terminology a stage of rapid development of new, principally light and consumer, industries. There has been a rapid rise of industrial towns around the major cities, and there are already many factories in the countryside, even in some villages.

If your letter to me is not merely a vehicle for one-sided denunciation of United States actions but is indeed intended to reflect a desire to find a common language for peace, I suggest you urge these leaders to discontinue their military operations and to turn to a policy of peaceful settlement of the Taiwan dispute.

I regret to say I do not see in your letter any effort to find that common language which could indeed facilitate the removal of the danger existing in the current situation in the Taiwan area. On the contrary, the description of this situation contained in your letter seems designed to serve the ambitions of international communism rather than to present the facts.

It appeared that a ship had come in but a short time previously, bringing important news, which her captain had just communicated to Ting, to the effect that the Japanese had resolved upon the seizure of the Chinese island of Taiwan, or Formosa, and that they intended to dispatch an expedition thither under General Oki, in two transports, each conveying twelve hundred men; and as the intended invasion of the island was believed by the Japanese to be a dead secret, it was proposed to send only one gunboat or small cruiser to convoy the transports.

I do not agree with you as to the source of danger in this situation. The present state of tension in the Taiwan area was created directly by Chinese Communist action, not by that of the Republic of China or by the United States.

The recent upheavals in the world financial markets were quelled by the immediate intervention of both international financial institutions such as the IMF and of domestic ones in the developed countries, such as the Federal Reserve in the USA. The danger seems to have passed, though recent tremors in South Korea, Brazil and Taiwan do not augur well.

Most of these expatriates would be available to develop mainland China, if conditions there were to change in a way that would make them compatible with the values with which these expatriates grew up on Taiwan, or with the Western democratic values which they absorbed abroad. Chiang Kai-shek's government still hopes that one day its people will return to the mainland.