TAIWAN: Absorbing the Painful Blow

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Rising confidence on an island republic

In a back alley in Taipei on April 16, a new era began in American diplomacy. Fifty former staffers of the U.S. embassy in Taipei quietly opened the American Institute in Taiwan, taking over quarters that had once been occupied by the U.S. military. In the Taiwan Relations Act, passed by Congress in March, the institute is described as "a nongovernmental entity incorporated under the laws of the District of Columbia." In fact, it carries out virtually all of the functions of the old U.S. embassy, which closed after Washington normalized relations with Peking and broke off diplomatic ties with the Republic of China.

The U.S. decision last December to recognize Peking was greeted with outrage and dismay in Taiwan. President Chiang Ching-kuo denounced the move as a betrayal, saying that never before had the U.S. severed diplomatic relations with an ally. Two weeks after the announcement, U.S. negotiators, led by Deputy Secretary of State Warren Christopher, arrived in Taipei to discuss a new relationship. Christopher and U.S. Ambassador Leonard Unger were slightly injured when their car was attacked by angry demonstrators and the windows shattered. Christopher promptly warned that the talks would be called off unless the government guaranteed the safety of his mission. Shocked by the unexpected violence, though his government had encouraged the demonstrations, Chiang agreed to ensure the safety of the delegation.

Five months after the painful break in relations, Taiwan not only seems to have absorbed the blow but to be more confident than ever of its future. Privately Taiwanese officials admit that the U.S. move has even had a number of unexpected benefits. The opening of the euphemistically named institute, for example, may encourage other nations that do not recognize the Republic of China to establish a quasi-diplomatic presence on the island in the hope of not unduly antagonizing Peking. Says one senior Taiwanese official: "There are a number of people in Taipei who feel the institute might be used as a blueprint for other important free nations that now have no relations with us."

Taiwanese officials note with satisfaction that no other nation followed the U.S. lead in breaking relations with the Taipei regime. They also allege that Washington encouraged South Korea to recognize Peking; instead, Seoul showed its commitment to Taiwan by sending its Foreign Minister to Taipei on an official visit. Only 21 countries, mostly Latin American and African, still have diplomatic relations with the Republic of China; they include such important trading partners as South Africa and oil-rich Saudi Arabia. Since the break in relations with the U.S., in fact, there has been only one major change on the Taipei diplomatic scene: Uruguay, formerly represented by a chargé d'affaires, now has an ambassador.