officially recognizing China in 1979. Today the Obama administration faced criticism

from both parties over its Taiwan policy, including arms sales to Taiwan and the country's

participation in free trade talks. From the house foreign affairs committee, this is an

hour and 20 minutes.

>>This hearing will come to order. I'm going to ask all members take their seats. This

hearing on the promise of the Taiwan relations act let me just say it's been 35 years and

for that period of time, the Taiwan Relations Act has served as the legal framework governing

the important relationship between the United States of America and the Republic of China

Taiwan. Since the Act came into force in 1979, there have been few other pieces of foreign

policy legislation as consequential as the TRA. Indeed, it is the steadfast support of

the United States Congress that has helped Taiwan become what it is today: a thriving

modern society that strongly support human rights, strongly support the rule of law,

and free markets. The purpose of today's hearing is to consider

whether the Administration is doing enough to fulfill the larger promise of the Taiwan

Relations Act. America's support for Taiwan is now more important than ever, and it is

vital that we speak with one voice when it comes to our support for Taiwan.

Strengthening the U.S. relationship with Taiwan is one of the Committee's top legislative

priorities. In fact, I have led two bipartisan delegations to Taipei in the past 13 months.

Last year, our delegation's trip included a visit to Taiwan's World War II-era submarines

based near Kaoshiung. And just last month, the Committee delegation of eight members

of congress travelled to Tainan to see firsthand the fleet of fighter jets that serves as the

backbone of the Taiwanese air force. The fact that the first batch of these jets entered

into service in 1965 is a stark reminder that Taiwan needs continuous U.S. support in order

to maintain a credible deterrence across the Taiwan Strait.

On this front, I reluctantly submit that we are not doing enough to meet the spirit of

the Taiwan Relations Act. We need to do more here in the United States.

Just as necessary as defense sales are to Taiwan, it is equally important that the U.S.

actively support Taiwan's efforts to maintain and expand its diplomatic space. When it comes

to matters of public safety or public health, the U.S. must do its utmost to ensure that

Taiwan has a seat at the table. For this reason, I authored legislation that was signed into

law to help Taiwan participate at the International Civil Aviation Organization last year. Taiwan's

absence from ICAO prevents it from obtaining air safety information in real-time. The recent

disappearance of the Malaysians aircraft highlights the importance of cooperation in the aviation

field. As a result of my legislation, Taiwan was finally able to have a seat at ICAO for

the first time since 1976. Taiwan's participation in the Trans-Pacific

Partnership free trade agreement is an important opportunity that we must not overlook. By

working to include Taiwan in a high-quality, multilateral trade agreement, the U.S. would

be helping to preserve Taiwan's ability to do business internationally. The events

unfolding in the Ukraine reminds us of the strategic weakness of relying on one major

trading partner. I understand that the Government of Taiwan

will soon announce its intention to seek membership in TPP. As Chairman of this Committee, I strongly

urge the Administration to support Taiwan's inclusion in TPP. American consumers and exporters

would benefit. The story of Taiwan is really a story about

transformation -- from the grinding poverty of the postwar era to a military dictatorship

to a thriving multiparty democracy. The investment that the American people made in Taiwan has

more than paid off. Today, Taiwan is a beacon of democracy in a region of the world that

still yearns for freedom. The good people of Taiwan have also been a part of America's

own success story with many Taiwanese Americans participating as leaders in business, government,

and in their own communities. As we acknowledge the 35th Anniversary of

the Taiwan Relations Act, let us come together to support and strengthen the U.S.-Taiwan

relationship. Our actions will directly impact the future of Taiwan, and our strategic and

economic standing in the critical Asia-Pacific region. Let me turn to Mr. Elliott Engle of

New York for his opening remarks our ranking member the committee.

>>Chairman Royce thank you for calling this hearing on the Taiwan relations act I am a

big supporter of Taiwan I have traveled there many times most recently with you last year

on your first co-deal as Chairman. I want to agree with everything you just said about

Taiwan and next month marks the 35th anniversary of the Taiwan relations act. The act passed

in 1979 is the cornerstone of the relationship between our two nations is been instrumental

in maintaining peace and security across the Taiwan Straits and East Asia and serves as

the official basis for friendship and cooperation between United States and Taiwan. I'm proud

to be a lead sponsor with you Mr. Chairman, on HRS- 494, which reaffirms the importance

and relevance of the Taiwan relations act three decades after the adoption. Taiwan is

a flourishing multiparty democracy of over 20 million people with a vibrant free market

economy is a leading trade partner of the United States alongside much bigger countries

like Brazil and India over the past 60 years the US Taiwan relationship has undergone dramatic

changes for Taiwan's development into a robust and lively democracy underpins the strong

US Taiwan friendship we enjoy today. Our relationship with Taiwan was initially defined by a shared

strategic purpose of stopping the spread of communism in Asia. With the end of the Cold

War, Taiwan's political revolution from authoritarianism to one of the strongest democratic systems

in Asia has transformed the US Taiwan relationship from one based solely on shared interests

to one based on shared values. One of the main obligations of United States under the

Taiwan relations act is to make available to Taiwan defensive arms, so Taiwan is able

to maintain a sufficient self-defence capability. Despite improvement on the political and economic

ties between Taiwan in Mainland China, Beijing's military buildup opposite Taiwan is continuing

in the balance of course great military forces continues to shift in China's favor. I encourage

the administration to work closely with Congress in meeting our obligations under the Taiwan

relations act and to provide Taiwan with the defensive weapons it requires. In that light

I'm very concerned about the decision of the U.S. Air Force not to fund the so called

Capes program in next year's budget. They would've upgraded the avionics system of F-16

fighter jets including about 150 of Taiwan's F-16s.

The Taiwan Defense Ministry now faces a tough decision on how to move forward with the upgrade

of its fighters at a reasonable cost, an upgraded it desperately needs. I hope all witness will

be able to shed light on this issue and on a way forward for Taiwan and the United States.

Taiwan's political economic and social transformation over the past 60 years has demonstrated that

a state can be modern, democratic, and thoroughly Chinese.

Taiwan's example is inspiration for other countries in Asia and throughout the world

that that linger under the control of one person or one party the fact that Taiwan has

now held 5 direct presidential elections is a clear sign of the political majority of

the Taiwanese people and frankly a signal to Beijing a change in relations between Taiwan

and China cannot be imposed by the mainland. For many years I've been a staunch supporter

of the people in Taiwan and I will continue to lead efforts here in Congress to demonstrate

continued US support for Taiwan I think it's a more obligation to the United States to

defend Taiwan and to be supportive of Taiwan and to stand with Taiwan so I look forward

to the testimony of our witness this morning, and hearing his view on how to further strengthen

ties between United States and Taiwan. Thank you Mr. Chairman.

>>Thank you Mr. Engle. We'll have 2 more opening statement. 2 minutes from Mr. Chabot

of Ohio, chairman of the Asia sub-committee. And 2 minutes from Mr. Brad Sherman of California.

>>Thank you Mr. Chairman for calling this important hearing. I was pleased to join you

and traveling to Taiwan just couple weeks ago and I think we have productive trip and

certainly have the opportunity meet with a host of top Taiwan officials especially President

Ma. I know my colleagues were very happy with our warm reception and the many courtesies

extended to us by our house we appreciate that. As one of the original founding co-chairs

of the congressional Taiwan caucus, I am, of course a strong supporter of the strong

US Taiwan alliance. Taiwan is democracy. It's a loyal friend and ally and it deserves to

be treated as such by the US government as we commemorate the 35th anniversary of the

Taiwan relations act this year. It's only appropriate that we strive to move even closer

to the policy objectives set out in that landmark piece of legislation, Chief among which is

the principle that our diplomatic relationship with the PRC the People's Republic of China

is premised on the expectation that the future of Taiwan will be determined by peaceful means.

For over three decades the Taiwan relations act has served as the cornerstone of US Taiwan

relations along with President Reagan six assurances in 1979. The Taiwan relations act

is played an indispensable role in the maintenance of peace and security in the East Asia Pacific

region. Taiwan is come a long way since 1979 is conducted direct presidential elections

something that would've been unthinkable back in 1979. This open and vigorously contested

electoral campaigns to the values of pluralism, transparency, and the rule of law shared by

our two nations and deeply rooted in Taiwanese society. At the same time, the threat of military

aggression posed by the PRC to Taiwan is grown exponentially over recent years when I first

came to Congress back in 1995, China had perhaps a couple of hundred missiles pointed at Taiwan.

Since then it grew to a hundreds of them and it is now 1,600 short mid-range ballistic

missiles. I look forward to hearing from our witness this morning and the continued relationship

between United States and Taiwan which is very important to both countries. Thank you.

>>Mr. Sherman.

>>Yes, I want to commend the chairman for putting together and leading an outstanding

codell to Asia particularly to Taiwan I see Mr. Weber, Mr. Messer, and of course, Mr.

Chabot was on that Codell and I remember Mr. Chabot leading us in our efforts to seek the

release on humanitarian parole of former Pres. Chen. I don't think we can conclude one way

or the other about the judicial determination there but certainly given his poor health

given his service to the country and given the unifying effect this would have, I would

hope that we would continue to press for a humanitarian treatment and release of Mr.

Chen. I think that it's important that we provide Taiwan for the tools to defend itself.

But Taiwan needs to act as well. Taiwan spends less than $11 billion on its defense less

than 1/5 per capita what we in America do and God blessed us with the Pacific ocean

separating us from China. Taiwan has only the Taiwan Straits. On a percentage of GDP

basis Taiwan spends roughly half what we do so we should be willing to sell them the tools

and they should be willing to spend the money to buy those tools I'm also concerned with

the reduction in the reserve at requirements imposed on young people in Taiwan for military

service. Finally I do it disagree only slightly with the chairman I do want to see Taiwan

involved in the trade negotiations so long as America's out of those negotiation until

such time as we revamp our trade policy which has given us the largest trade deficit in

the history of life on the planet . This morning were pleased be joined by Mr.

Kin Moy, the deputy assistant secretary for East Asian and Pacific affairs a career member

of the senior foreign service Mr. Moy previously served as deputy executive secretary in the

office of Secretary of State Clinton, was director of the executive Secretariat staff

and deputy director of the office of Maritime Southeast Asia I were going to ask him to

summarize his prepared statement if you would and will remind members that you all have

five calendar days to submit statements or questions or any extraneous material you want

to put in the record for this hearing and so Mr. Moy.

>>Thank you so much Mr. Chairman and members of the committee. I am grateful to appear

today to share news about the strength substance and success of our unofficial US Taiwan relationship.

I would to thank you Mr. Chairman for your leadership and strong interest in regional

prosperity and stability you're coming and was evidenced by the large congressional delegation

you left last month to Taiwan Japan and South Korea. As you note earlier and your remarks

April 10th marks the 35th anniversary of the Taiwan relations Act. The resilience and development

of our robust relations at Taiwan over the past 35 years of been greatly fostered by

the framework the Congress established into TRA. The US Taiwan relationship is grounded

in history shared values and our common commitment to democracy and human rights maintaining

of deepening our strong relations with Taiwanese and important part of the US rebalanced to

the Asia-Pacific region .Through the American Institute in Taiwan we work closely with Taiwan

authorities on a wide range of issues. In security, maintenance of peace across the

Taiwan Strait is crucial to stability and prosperity throughout the Asia-Pacific you've

vomited ministration has notified Congress of over $12 billion worth of arms sales to

Taiwan. It's a tangible sign of the seriousness with which we regard Taiwan security we encouraged

Taiwan to adopt an innovative approaches to maintain a credible self-defense capacity

on an austere defense budget in order to effectively deter coercion or aggression. In a reason

that has experienced tensions United States appreciates Taiwan's cooperative efforts to

peacefully resolve disputes and share resources. In the area of the economy and economic engagement

in 2013 Taiwan is the 16th largest export market for US goods and eight largest export

market for US agriculture fish and forestry products. In 2012, direct investment from

Taiwan to United States stood at a approximately $7.9 billion. Our commercial relationship

with the people on Taiwanese is vibrant and continues to grow. Last year we were pleased

host 2 large delegations of Taiwan business leaders.

First, at the select USA summit at the end of October and again in mid-November. During

a visit of Taiwan's CEOs led by former Vice President Vincent Siew.

The Siew delegation brought news of over $2 billion in new or ongoing Taiwan manufacturing

investments in United States. In March 2013, we restarted our engagement with Taiwan under

our trade and investment framework agreement, otherwise known as TIFA.

After a six-year hiatus, we have taken note of Taiwan's intention of formulate new economic

reforms demonstrate its willingness and capability of joining in regional economic integration

initiatives. The United States will continue to encourage Taiwan to further liberalize

its trade and investment matters. And as you noted, Mr. Chairman, the area of concern also

to us is Taiwan's international space. It's a top twenty world economy and a full member

of the WTO and APEC. Taiwan plays a constructive role into the Asia-Pacific region and worldwide.

Taiwan participates in about sixty international organizations as well as hundreds of international

nongovernment organizations. United States supports Taiwan's membership in international

organizations that do not require state with membership and we support Taiwan's meaningful

participation and other international organizations we're pleased that is in 2009 Taiwan has

participated every year in the world health assembly as an observer.

We welcome Taiwan's participation at the international civil aviation organization otherwise known

as ICAO .That ICAO assembly in Montreal in 2013 as guests of the ICAO council president,

and we support Taiwan to expanded participation in the future. We also encourage the UN, UN

system agencies and other international orginazations to increase Taiwan participation in technical

expert meetings. Taiwan's role as a responsible player in the global community has been well

demonstrated by disaster relief efforts in the region.