Features
Taiwan: Will it retain independence or be taken over?
After the fall of Afghanistan to the Taliban, there continues over there a painful period of adjustment and as we hear, grave shortages of essentials to the general population. There also seem to be Afghans eligible to migrate to the US awaiting permission to go. The G7 has promised help and President Biden specifically stated much financial and other aid would come to the people of Afghanistan but through international aid agencies.
The current hot spot of probable conflict and growing tension is Taiwan, and yes, if inflamed, could be much worse than the Afghan conflagration. On October 10, President of Taiwan, Tsai Ing-wen, insisted in her speech at the National Day celebrations in Taipei, that Taiwan would not succumb to Chinese dominance nor join mainland China as a unified nation. Tsai emphasized “resilience, unity, diversity, competitiveness, and renewed confidence and pledged to defend Taiwan’s sovereignty and denounced unprecedented challenges brought by China’s recent military coercion.”
At the same time, China staged a massive show of force in celebration of the 110th anniversary of the revolution that established the first Chinese Republic. Chinese President Xi Jinping made it almost militantly clear that China calls for “Taiwan’s peaceful reconciliation with China in Taiwan’s best interests.” He urged the island state to “stand on the right side of history.” This statement was denounced by Taiwan’s President as a “distortion of history” and called on Beijing to stop threatening the island.
In The Island of October 13, Gwynne Dyer gives a fine analysis of the problem and says that China will baulk at the prospect of invading Taiwan because it will face blocking of all sea routes on which its trade is totally dependent. Western nations, Japan, Korea, even India will not stand by and merely watch a military invasion by Chinese forces of independent Taiwan.
Support for Taiwan
The G7 at the end of its meeting in Cornwall in June 2021, affirmed the “importance of peace and stability across the Taiwan Strait” and their strong opposition to any “unilateral attempts to change the status quo and increase tensions.” China immediately denounced G7 for interfering. “For the Chinese Communist Party, the status of Taiwan is a sensitive topic. Together with Tibet, and the massacre in Tiananmen Square in 1989, foreign visitors to China are routinely advised to avoid any discussion of it. To China’s leaders, Taiwan is an indivisible part of the ‘big Motherland’, a ‘renegade province’ that will eventually, by persuasion, coercion or force if necessary, be ‘reunited’ with mainland China. Alternative views are firmly suppressed.”
Taiwan, smaller in area than the Netherlands, is considered to be on par with Australia in its economy and population. “For a country that in 1950 was poor, overwhelmingly agricultural and exported labour to the Philippines, this has been a huge achievement and one that owes nothing to China.”
History
Reading about Taiwan was very interesting. That island was originally named Formosa, which dates from 1542 when Portuguese sailors sighted an uncharted island and named it ‘Ilha Formosa’ – beautiful island. In 1625, the Dutch East India Company established a base in Taiwan.
The Ming rulers in China were increasingly preoccupied with a growing threat from the Manchu, or Qing, to the north. In 1644, Beijing fell and the Ming dynasty ended, succeeded by the Qing who ruled Formosa too. In 1911, the Qing Dynasty collapsed and that date is when the Republic of China in the island was established.
In 1861, Great Britain opened the first consulate on the island and “early consular reports are peppered with frustration at the unwillingness or outright refusal of government representatives on the island to adhere to agreements set down in bilateral treaties.”
The Japanese had controlled Taiwan for 50 years (1895-1945) with Tokyo sending 19 governors general to rule Taiwan. Upon the defeat of Japan in August 1945, Chiang Kai-shek, who was head of China sent troops and administrators to take control of Taiwan. “The Taiwanese had been expecting liberation from Japanese rule to lead to self-government, not the imposition of another regime. The move was far from popular, dissatisfaction only compounded by Chiang’s handling of it. Corruption, nepotism and minor altercations grew, and hardly any locals spoke Mandarin, yet overnight this was imposed as the official language. Not surprisingly, resentment grew while the economy collapsed, culminating in major riots at the end of February 1947. These were brutally put down. By some estimates as many as 20,000 Taiwanese lost their lives.”
Beginnings of modern Taiwan
Chiang was an ally to the Brits and Americans, helping them to defeat Japan in WW II. Then came the civil war with the communists led by Mao Zedong and Chiang’s Nationalists were defeated in 1948. The next year his government and army retreated to Taiwan where he presided over a tumultuous period of martial law, social reforms and economic prosperity. He was President of the Republic of China for five six-year terms and also Director General of the Kuomintang until his death in 1975. It was a rival government to China and the world’s nations had to choose between the two. Most recognised mainland China. “Just 15 nations, most of them small island states in the Caribbean or Pacific, have diplomatic relations with Taiwan.” Between 1946 and 1949 an estimated one million mainland Chinese fled to Taiwan, whose own population in 1940 had been less than six million.
After Chiang died in 1975, his son and successor, Chiang Ching-kuo, sensing the changing tide of global opinion in favour of the People’s Republic of China, took the first steps towards the introduction of democratic government. Martial law was lifted in 1987 and in 1996 the Taiwanese were finally able to choose their own president through direct elections. Since then, democratic governance has taken firm root and the present President is the fourth and first woman to head the nation. Opinion polls show a growing majority consider themselves Taiwanese, not Chinese; proud of their country’s history and identity.
Mao Zedong, once he came into power, had aimed at bringing Taiwan under the party’s control as part of the ‘Motherland’. “Mao might have succeeded, too, had he not intervened in support of Kim Il-sung in the Korean War in 1950, prompting the US to move to support Chiang on Taiwan.”
The San Francisco Conference of 1951 was convened to conclude the peace agreement with Japan and agree on the post-war order in Asia. “Although Japan renounced its claim to Taiwan, with the US and UK recognising different Chinese governments, both of which were excluded from the conference, no agreement was reached and a decision on the status of Taiwan was shelved. As far as Britain was concerned, de jure sovereignty over Taiwan remained undetermined, while the US recognised Chiang’s Republic of China in Taipei as the legitimate Chinese government, a position that only changed in 1979.”
Taiwanese companies are among the biggest investors, exporters and employers in China. “The rapprochement reached its pinnacle in 2015 in Singapore, with the first ever meeting between the leaders of China and Taiwan. The move was widely interpreted in Taiwan as an attempt to boost the prospects of a ‘China-friendly’ president in the election due in early 2016; which misfired badly. After Tsai Ing-wen’s victory, China largely cut off official contact and stepped up its threats and intimidation against the island. In 2020 Tsai was re-elected in a landslide, her success widely attributed to Taiwanese reactions to China’s clampdown in Hong Kong in the preceding months.” And now unless mainland China, it is said, can bring itself to accept reality, the Taiwan Strait will remain one of the world’s potential flashpoints.
NOTE:
Facts given above are mainly from a long article by Michael Reilly, who is a non-resident Senior Fellow in the Taiwan Studies Programme at the University of Nottingham. From 2005-09, he was the British representative in Taiwan. He is the author of The Great Free Trade Myth: British Foreign Policy and East Asia Since 1980 (Palgrave Macmillan, 2020). The article I quote from is ‘Between China and a Hard Place’ in History Today, Vol 71:10, Oct 2021.
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
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