eTeng-hui The Road to Democracy Taiwan's Pursuit of Identity If Taiwan is not a sovereign state, what is it? 0 an island about the size of the state of West Virginia, Taiwan's people have built a modern industrial de mocracy. Over the past decade they have produced "twin miracles" of economic development and political reform under the leadership of the author, President Lee Teng-hui of the Republic of China (ROC). President Lee's July 9, 1999 statement on the "special state-to-state relationship" took the world by surprise. As The Road to Democracy: Taiwan's Pur suit of Identity makes clear, however, that pro nouncement in no way marked a sudden policy shift, much less a declaration of independence. The Nationalist government leader simply wanted to clarify the relationship and parity of the two sides ofTaiwan Strait so that Peking (Beijing) and Taipei can proceed with negotiations on an equal foot ing. In reality, the People's Republic of China (PRC) has never controlled Taiwan, while the ROC relin quished its authority in the mainland after mov ing its capital to Taipei in 1949. Taiwan has 22 million people with their own elected government. Its per capita national income of over US$12,000 makes it one of the wealthiest countries in Asia today. Taiwan's economic per formance consistently ranks among the top 10 per cent in the world in terms of economic growth rate, total GNP, per capital income, science and tech nology, foreign trade volume, foreign exchange reserves, and capital exports. Yet it is not recog nized as a sovereign state by most of the countries of the world, nor is it a member of the United Na tions. The major themes in The Road to Democracy are woven around two key terms: Taiwan's "exis tence" and its "experience." Unless the Republic M China on Taiwan remains in existence, its hard won democracy and economic prosperity could founder, with serious repercussions in Asia and the world. Hence the importance of its -�curity policy based on the three pillars of Arr • d n com mitment to Taiwan's defense, the r own mili- tary preparedness, and an efft e pragmatic diplomacy. (continued 011 back flap/ The Road to Democracy Taiwan's Pursuit of Identity Lee Teng-hui PUBLISHED BY PHP INSTITUTE, INC. Note: Romanization and name order in this book follow country practice. This book was originally published in Japanese under the title Taiwan no shucho, copyright© 1999 Teresa Chang. English translation copyright © 1999 by PHP Institute, Inc. Published by PHP Institute, Inc. Tokyo Head Office 3-10, Sanbancho, Chiyoda-ku, Tokyo 102 Japan; Kyoto Head Office 11 Kitanouchi-cho, Nishikujo, Minami-ku, Kyoto 601 Japan All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from the publisher. Printed and bound in Japan by Toppan Printing Co., Ltd. Typesetting by Asahi Media International Corporation. Jacket design by Michiyoshi Gow. Book design and layout by Taniguchi Koitsu. The main text is set in 12-point Palatino. First Edition, September 1999 ISBN4-569-60651-2 To the People of Taiwan