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tied local businessmen to American industry and thus worked to the advantage of mainland Chinese, for these had contacts in the United States, whereas the Taiwan-Chinese had contacts only in Japan. 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. We can regard Taiwan from 1964 on as occupying the "takeoff" stage, to use Rostow's terminologyβ€”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. Electrification is essentially completed, and heavy industries, such as fertilizer and assembly plants and oil refineries, now exist.

This rapid industrialization was accompanied by an unusually fast development of agriculture. A land-reform program limited land ownership, reduced rents, and redistributed formerly Japanese-owned land. This was the program that the Nationalist government had attempted unsuccessfully to enforce in liberated China after the Pacific War. It is well known that the abolition of landlordism and the distribution of land to small farmers do not in themselves improve or enlarge production. The Joint Council on Rural Reconstruction, on which American advisers worked with Chinese specialists to devise a system comparable to American agricultural extension services but possessing added elements of community development, introduced better seeds, more and better fertilizers, and numerous other innovations which the farmers quickly adopted, with the result that the island became self-supporting, in spite of a steadily growing population (thirteen million in 1968).

At the same time, the government succeeded in stabilizing the currency and in eliminating corruption, thus re-establishing public confidence and security. Good incomes from farming as well as from industries were invested on the island instead of flowing into foreign banks. In addition, the population had enough surplus money to buy the products of the new domestic industries as these appeared. 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. Today, even lower middle-class families have television consoles which cost the equivalent of US $200; they own electric fans and radios; they are buying Taiwan-produced refrigerators and air conditioners; and more and more think of buying Taiwan-assembled cars. They encourage their children to finish high school and to attend college if at all possible; competition for admission is very strong in spite of the continuous building of new schools and universities. Education to the level of the B.A. is of good quality, but for most graduate study students are still sent abroad. 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. 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. This hope has changed from hope of victory in a civil war to hope of revolutionary developments within Communist China which might lead to the creation of a more liberal government in which men with KMT loyalties could find a place. 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. 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.

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. One of the main pre-conditions for quick development is that a large part of the population is inured to hard and repetitive work. The Chinese farmer was accustomed to such work; he put more time and energy into his land than any other farmer. He and his fellows were the industrial workers of the future: reliable, hard-working, tractable, intelligent. To train them was easy, and absenteeism was never a serious problem, as it is in other developing nations. Another pre-condition is the existence of sufficient trained people to manage industry. Forty years ago China had enough such men to start modernization; foreign assistance would have been necessary in some fields, but only briefly.

Another requirement (at least in the period before radio and television) is general literacy. Meaningful statistical data on literacy in China before 1937 are lacking. Some authors remark that before 1800 probably all upper-class sons and most daughters were educated, and that men in the middle and even in the lower classes often had some degree of literacy. In this context "educated" means that these persons could read classical poetry and essays written in literary Chinese, which was not the language of daily conversation. "Literacy," however, might mean only that a person could read and write some 600 characters, enough to conduct a business and to read simple stories. Although newspapers today have a stock of about 6,000 characters, only some 600 characters are commonly used, and a farmer or worker can manage well with a knowledge of about 100 characters. Statements to the effect that in 1935 some 70 per cent of all men and 95 per cent of all women were illiterate must include the last category in these figures. In any case, the literacy program of the Nationalist government had penetrated the countryside and had reached even outlying villages before the Pacific War.

The transportation system in China before the war was not highly developed, but numerous railroads connecting the main industrial centers did exist, and bus and truck services connected small towns with the larger centers. What were missing in the pre-war years were laws to protect the investor, efficient credit facilities, an insurance system supported by law, and a modern tax structure. In addition, the monetary system was inflation-prone. Although sufficient capital probably could have been mobilized within the country, the available resources either went into foreign banks or were invested in enterprises providing a quick return.

The failure to capitalize on existing means of development before the War resulted from the chronic unrest caused by warlordism, revolutionaries and foreign invaders, which occupied the energies of the Nationalist government from its establishment to its fall. Once a stable government free from internal troubles arose, national development, whether private or socialist, could proceed at a rapid pace.

Thus, the development of Communist China is not a miracle, possible only because of its form of government. What is unusual about Communist China is the fact that it is the only nation possessing a highly developed culture of its own to have jettisoned it in favour of a foreign one. What missionaries had dreamed of for centuries and knew they would never accomplish, Mao Tse-tung achieved; he imposed an ideology created by Europeans and understandable only in the context of Central Europe in the nineteenth century. How long his success will last is uncertain. One school of analysts believes that the friction between Soviet Russia and Communist China indicates that China's communism has become Chinese. These men point out that Communist Chinese practices are often direct continuations of earlier Chinese practices, customs, and attitudes. And they predict that this trend will continue, resulting in a form of socialism or communism distinctly different from that found in any other country. Another school, however, believes that communism precedes "Sinism," and that the regime will slowly eliminate traits which once were typical of China and replace them with institutions developed out of Marxist thinking. In any case, for the present, although the Communist government's aim is to impose communist thought and institutions in the country, typically Chinese traits are still omnipresent.

Soon after the establishment of the Peking regime, a pact of friendship and alliance with the Soviet Union was concluded (February 1950), and Soviet specialists and civil and military products poured into China to speed its development. China had to pay for this assistance as well as for the loans it received from Russia, but the application of Russian experience, often involving the duplication of whole factories, was successful. In a few years, China developed its heavy industry, just as Russia had done. It should not be forgotten that Manchuria, as well as other parts of China, had modern heavy industries long before 1949. The Manchurian factories ceased production because, when the Russians invaded Manchuria at the end of the war, they removed the machinery to Russia.

Russian aid to Communist China continued to 1960. 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. One cause of friction in China today concerns the relative desirability of heavy industry versus consumer industry, a problem which arose in Russia after the death of Stalin.

China's military strength was first demonstrated in the Korean War when Chinese armies entered Korea (October 1950). Their successes contributed to the prestige of the Peking regime at home and abroad, but they also foreshadowed a conflict with Soviet Russia, which regarded North Korea as lying within its own sphere of influence.

In the same year, China invaded and conquered Tibet. Tibet, under Manchu rule until 1911, had achieved a certain degree of independence thereafter: no republican Chinese regime ever ruled Lhasa. The military conquest of Tibet is regarded by many as an act of Chinese imperialism, or colonialism, as the Tibetans certainly did not want to belong to China or be forced to change their traditional form of government. Having regarded themselves as subjects of the Manchu but not of the Chinese, they rose against the communist rulers in March 1959, but without success.

Chinese control of Tibet, involving the construction of numerous roads, airstrips, and military installations, as well as differences concerning the international border, led in 1959 to conflicts with India, a country which had previously sided with the new China in international affairs. Indeed, the borders were uncertain and looked different depending on whether one used Manchu or Indian maps. China's other border problem was with Burma. Early in 1960 the two countries concluded a border agreement which ended disputes dating from British colonial times.

Very early in its existence Communist China assumed control of Sinkiang, Chinese Central Asia, a large area originally inhabited by Turkish and Mongolian tribes and states, later conquered by the Manchu, and then integrated into China in the early nineteenth century. The communist action was to be expected, although after the Revolution of 1911 Chinese rule over this area had been spotty, and during the Pacific War some Soviet-inspired hope had existed that Sinkiang might gain independence, following the example of Outer Mongolia, another country which had been attached to the Manchu until 1911 and which, with Russian assistance, had gained its independence from China. Sinkiang is of great importance to Communist China as the site of large sources of oil and of atomic industries and testing grounds. The government has stimulated and often forced Chinese immigration into Sinkiang, so that the erstwhile Turkish and Mongolian majorities have become minorities, envious of their ethnic brothers in Soviet Central Asia who enjoy a much higher standard of living and more freedom.

Inner Mongolia had a brief dream of independence under Japanese protection during the war. But the majority of the population were Chinese, and already before the Pacific War, the country had been divided into three Chinese provinces, of which the Chinese Communists gained control without delay.

In general, when the Chinese Communists discuss territorial claims, they appear to seek the restoration of borders that China claimed in the eighteenth century. Thus, they make occasional remarks about the Hi area and parts of Eastern Siberia, which the Manchu either lost to the Russians or claimed as their territory. North

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