Thank you very much, President Mack.  Each time I’m asked to give a speech after dinner almost inevitably I think about what Winston Churchill said many years ago.  Churchill said, "A man should try to avoid doing three things:  Number one, try to avoid climbing a wall which is leaning toward him; number two, [avoid] trying to kiss a lady who’s leaning away from you; and number three, never try to give a speech after a good dinner."  I have hardly followed the advice of Sir Winston, and today is a very good example. 

I’m very happy to be back, back to this beautiful and dynamic city of Los Angeles.  As Curtis mentioned, this is the second time I have had the opportunity of addressing this very distinguished council and audience.  I want to thank you, President Mack, for your invitation.  Of course I would like to take this opportunity also to congratulate you and the council for fifty years of efforts in trying to promote better understanding between and among peoples and countries.  You can see the results of the efforts not only of the World Affairs Council here in L.A. but around this country. 

Before I begin I would like also to convey to the Council greetings from my president, President Chen Shui-bian.  He thanks the Council for its invitation last year, and again this year, for him to attend address this gathering.  Regrettably, for reasons known to all of us, he has not been able to accept the invitation.  Nevertheless, we hope, I sincerely hope, that one day the President of the Republic of China on Taiwan will be able to come in person and share his thoughts with the Council. 

Two days ago, on July 7, I celebrated the third anniversary of my being the Representative of the Republic of China on Taiwan.  In the past three years, much has happened in Taiwan, the United States and the world, and I think this is a good time for us to reflect upon this very interesting and particularly important to us, the relationship between Taiwan and the United States.  In the last few months I’ve come across a lot of friends and almost inevitably they raise four questions:  the questions are how? why? whether? and what?  How are relations between Taiwan and the United States?  Why, have Taiwan-U.S. relations evolved the way they evolved?  Whether improved U.S.-PRC relations since 9/11 have had any impact on Taiwan and U.S. ties?  And the last, but not the least, what can or should be done to further improve our two countries’ relationship? 

First, how are relations between Taiwan and the United States?  I have to say the relationship between Taiwan and the United States is solid, steady, substantial and strong.  Indeed, many people believe that relations between Taiwan and the United States are now better than they have been at any time since 1979, the year formal diplomatic ties were severed between the United States and Taiwan.  Let me provide you with some statistics on certain aspects of this multi-layered relationship.  For example, despite the lackluster global economy, bi-lateral trade between Taiwan and the United States topped $50 billion in the year 2002, which was equal to one-fifth of Taiwan’s total trade.  Taiwan is now the eighth largest trading partner of the United States.  Taiwan is also the fifth largest market of American agricultural products.  Total investment between the United States and Taiwan also has been gradually increasing.  For example, in the past two years alone, the investment between the two countries has reached $3 billion.  To help you visualize the extent of American investments in Taiwan, Taiwan’s landscape is dotted with 330 McDonalds and 111 Starbucks franchises.  I know that people may forget the trade figure, but they will remember these two figures. 

As for educational ties, approximately 40 percent of our students studying abroad are enrolled in American institutions of higher education or learning.  In fact, this year nearly 29,000 students from Taiwan are enrolled in a U.S. university or college.  In California alone we have 5,500 students from Taiwan studying in different universities and colleges. 

Another figure worth quoting is in the area of transportation.  You may or may not know, approximately 280 direct flights connect Taiwan to the United States every week, nearly half of them connecting Los Angeles with Taiwan.  Nearly half a million Taiwan travelers visited the United States last year.  These statistics, while impressive, do not tell the whole story. 

We have seen some very positive and concrete improvements in other crucial areas on the relationship between Taiwan and the United States, particularly since the arrival of George W. Bush’s administration.  For instance, in April 2001 the U.S. government approved a robust package of military sales to Taiwan including submarines, destroyers, P-3 anti-submarine aircraft and Apache helicopters.  Since then, the United States government has also allowed our president, President Chen and the other senior leaders to visit the United States with a much higher degree of dignity and respect. 

The U.S. government now also supports our meaningful participation in several important international organizations.  For example, Taiwan, with the help of the United States, acceded to the World Trade Organization on the first of January of last year, and we are grateful to the United States for publicly and more forcefully voicing support for our bid to participate as an observer in the World Health Organization.  We also note with thanks the recent U.S. practice of maintaining silence when the issue of our participation in the United Nations comes up.  You may ask me why keeping silent should be thanked.  Because in the last two years of Clinton’s administration the representative of the U.S. delegation to the United Nations always expressed the views of the United States government indicating more or less that Taiwan’s efforts to join the United Nations are not going to go anywhere. 

I’m particularly pleased to point out that Taiwan now enjoys much closer interaction and communication with the U.S. government at various levels.  As a matter of fact, the frequency, the depth and the levels we now are communicating with our counterparts in the United States government have never been higher.  In fact, we have encountered few difficulties in communicating on any of a number of issues.  For example, when President Chen made certain remarks on cross-Straits relations on August 3, 2002 various explanations ensued.  We were able to immediately enter into dialogue with our friends in the U.S. administration to clarify the meaning of President Chen’s remarks and thus avoid any misunderstanding.  In just the last few weeks, when our government raised the issue of referendum in Taiwan we also immediately communicated with the Bush administration to allay any concerns it might have.  I should add that the United States government also keeps me and my government closely informed of developments that may be of interest to Taiwan. 

The net result of such closer contact and communication has been better understanding and greater mutual trust between our two countries.   The most important, I think, is the very positive improvement in the overall atmosphere and tenor of Taiwan and U.S. ties.  As President Chen has said "our relationship with the United States has always been the most important cornerstone of Taiwan’s diplomacy.  For many years, Taiwan-U.S. relations have been growing steadily.  Since my inauguration, I’ve been touched by the support and courage that Americans of all political stripes and walks of life have extended to my administration and the people of Taiwan." 

American leaders have expressed similar sentiments.  For example, President Bush made a number of positive statements on Taiwan.  Shortly after taking office he said in an interview, "I am candid in my support of the Taiwan Relations Act [it] is the very foundation upon which we continue the relationship between [Taiwan] and the United States."  The president said that the United States would help Taiwan defend itself.  "I would do what it takes to help Taiwan defend herself and the Chinese," meaning the PRC, "must understand that." 

Last June, Secretary of State Colin Powell said, "Some people refer to Taiwan as the Taiwan problem.  I call Taiwan, not a problem but a success story."  Taiwan has become a resilient economy, a vibrant democracy and a generous contributor to the international community.  More recently National Security Advisor, Condi Rice said that, "countries like Taiwan show that freedom manifests itself differently around the globe and that new liberties can find an honored place amidst ancient traditions." 

These few selected remarks reflect the depth and vigor of U.S.-Taiwan relations.  We treat each other as friends who are willing to help each other in times of need.  Of course, I have to be honest, our relationship is not free from difficulties.  The most obvious ones are related to trade and investment.  As a matter of fact, if you read today’s Chinese newspapers, they are extensively [reporting on] intellectual property rights, a rise in exports from the United States to Taiwan, pharmaceutical validation and telecommunication licensing all current issues existing between Taiwan and the United States.  But the existence of such issues is only natural between free and democratic countries.  They can and will be dealt with in good faith and should not affect the good overall relationship between our two countries. 

This brings me to my second question.  Why have the United States-Taiwan relations evolved the way they have?  We all know that each country pursues it own national interests in the international community.  Therefore, it is only natural that one of the most important reasons for better relations between Taiwan and the United States is the increasing awareness that they have many important common interests and shared values.  The fact that Taiwan has become an affluent society with a vibrant democracy located at a strategically important area has provided, and will continue to serve, as a solid foundation for Taiwan and U.S. relations. 

There have been many other significant developments in the last three years which have also, I believe, contributed to the further improvement of this relationship.  I want to mention a few of the more important ones.  First, the direct election of President Chen Shui-bian and the first transfer of power in Taiwan in the year 2000 convinced many people in the world, particularly in the United States, that genuine democracy had arrived in Taiwan and that Taiwan deserves even more recognition and respect. 

Second, President Chen’s policies have facilitated the growth of unobstructed interaction and trust between Taiwan and the United States.  President Chen fully realizes the importance of this relationship.  From the very beginning, his government has established an excellent working relationship with U.S. administration and dispelled some lingering concerns.  Here, I give a very good example.  In his inaugural address three years ago, President Chen Shui-bian declared that so long as Beijing has no intention of using military force against Taiwan he would not declare Taiwan independence, change our national title, push for the inclusion of the state-to-state formulation in our constitution or promote a referendum on the question of independence or unification.  He also said that the abolition of the national unification council would not be an issue.  This policy, which was quickly referred to as the "four nos and one without" remains unchanged.  Most recently on the 4 of July, your national holiday, President Chen reiterated his commitment for the four nos and the one without.  Such policy pronouncements, I believe, not only fully demonstrate our sincere goodwill and pragmatic approach to cross-straits relations but also help reinforce the mutual trust between Taiwan and the United States. 

The third reason, George W. Bush as president and the U.S. administration and its high ranking officials, have a better appreciation for the importance of Taiwan’s continued role in the promotion of peace, prosperity and democracy in the international community and have thus taken a clearer, firmer and more forthright stance on Taiwan. 

Fourth, a broader range of people from all walks of life in both our two countries have become more aware of the significance of the better Taiwan-U.S. relationship and have contributed enormously to the strengthening of our ties.  I should also mention that my colleagues and I are constantly working to cultivate close relations with the U.S. Congress, local governments, various civic groups, think tanks, social institutions, media and even individuals on the grass roots level and, of course, we have also tried to foster better relations with the Taiwanese-American or Chinese-American communities here in the United States.

Now, question three: whether improved U.S.-PRC relations since 9/11 have had any impact on Taiwan-U.S. ties.  My answer to this question is that the relationship between Taiwan and the United States has never been simply bi-lateral.  It has always been influenced by a number of factors such as domestic developments in Taiwan, China and the United States.  Also, it has been influenced by other bi-lateral relationships including cross-Strait relations, and changes in the international community.  However, we do not believe that improvement of relations between the United States and the People’s Republic of China will come at the expense of Taiwan-U.S. relations.  The U.S. government has repeatedly assured us that that will not happen.  More fundamentally, that would not be in the interests of the United States nor in keeping with its basic values and principles.  Yes, the United States may need PRC cooperation or assistance in dealing with a number of issues such as anti-terrorism, Afghanistan and Iraqi as well as North Korea, but let’s not forget that it is also in the PRC’s own self-interest to cooperate on these issues as well.  Remember there are, as I mentioned, fundamental differences and incompatibilities between the PRC and the United States in terms of national interests and basic values, which cannot be easily reconciled or compromised.  I would certainly love to see the PRC one day become a free, democratic and prosperous country and its people enjoy the freedom, human rights and quality of life that you and I enjoy in Taiwan and in the United States.  For when that day comes, we can lay down many of our concerns and worries.  Having said that, I would like to stress the position of my government, which is very clear.  We have no objections for a better relationship between the People’s Republic of China and the United States as long as it does not come at our expense.  If better ties between the PRC and U.S.A. would improve the livelihood of the people on the Chinese mainland and promote peace, stability, democracy and human rights in east Asia then we are all for it.  But in the meantime, we will continue to be vigilant.

Now, the fourth and final question: what can and should be done to further improve the relations between Taiwan and the United States? 

First, as far as Taiwan is concerned we must further develop our economy and upgrade our democracy.  Taiwan, in spite of its very limited resources, has become the 16^th largest economy in the world.  What does that mean?  It means Taiwan’s economy is bigger than Argentina’s, bigger than Belgium’s, bigger than Switzerland’s and Sweden’s, and even bigger than Russia’s.  And Taiwan, as you probably know, has been rated as totally free by the Freedom House since 1996, but I do believe we can and should do more.  A better economy means more trade and investment opportunities with the United States, while a better democracy will lead to more commonalities with the United States and great mutual appreciation. 

Second, I believe both sides should try to understand each other even more, especially at the time when the dynamics of our two countries have been evolving so rapidly.  For instance, Taiwan must fully appreciate the United States and its increasing role in the world and at the same time the United States must try to understand more about Taiwan, it’s democracy and the aspirations of its people.  As the only superpower with global responsibilities, the United States must deal with the People’s Republic of China on a number of the issues and for various reasons.  We have to understand that the United States relations with the People’s Republic of China are not necessarily mutually exclusive.  I should say we have to understand that the U.S. relations with the People’s Republic of China and its relations with the Republic of China are not necessarily mutually exclusive.  On the other hand, our American friends have to realize that people in democratic Taiwan want to decide their own future and feel that they deserve to be treated with dignity and respect by the international community.  People in Taiwan believe, just as Martin Luther King believed, that an injustice anywhere is a threat to justice everywhere, and our people also agree with what President Ronald Reagan said some time ago, that life and the preservation of freedom to live it in dignity is what we are on this earth to do. 

Third, we can certainly identify more areas of cooperation between Taiwan and the United States.  Over the last few decades we have been cooperating with each other in trade, investment, education, science, technology and security.  Following the tragic events of 9/11, we immediately pledged our strong support of the United States and its anti-terrorism efforts.  We were also on the side of the United States during its recent actions in Afghanistan and Iraq.  Taiwan has been providing humanitarian assistance to refugees in both war-torn countries, and we are doing what we can to help with their national reconstruction.  Similarly, when SARS spread to Taiwan recently, the United States was the very first country to come to our assistance, for which we are extremely grateful.  The U.S. Center for Disease Control and Prevention, CDC, were most helpful in our successful fight against the deadly infectious disease. 

These various forms of cooperation will, of course, continue to grow, but in the future Taiwan and the United States can also work in concert on other issues in other places.  We could, for example, work more closely together to fight AIDS in Africa, to boost economic developments in Central America and the Caribbean, to strengthen peace and stability in East Asia, and certainly to promote democracy around the world.  Both sides need to be forward-looking and innovative in finding ways to work together. 

Fourth, clearly we have to involve more of the efforts of private individuals in relations between Taiwan and the United States.  People, individuals, guided like many of you by their own opinions, values, ideals and even dreams are the engines of our two democracies, driving them onwards and upwards.  It is therefore only natural that the private citizens of our two countries will have to continue to provide the impetus for major improvements in our bi-lateral relationship. 

In conclusion, my friends, Taiwan and the United States are two countries bound by common allegiance to liberty, justice and human rights and human dignity.  Our close relations continually deepen through ties of family and friendship and exchanges of every sort.  We understand that the United States seeks to improve its relations with the People’s Republic of China and we ought not to feel this development necessarily threats the interests of Taiwan.  As Secretary of State Colin Powell put it: "If we weaken relationships with allies and friends," and Taiwan is considered a friend of the United States, "we weaken ourselves."  I have no doubt but that we can find many new and creative ways to further advance the shared interests and values that bring our two countries together.  At this time of global transition, we can strive to break new ground to address the problems of the day and to prevent the problems of tomorrow.  My colleagues many of them among the audience are proud and honored to represent [Taiwan] in the United States and we welcome the opportunity to work even more closely with our American friends.

 Thank you very much.