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  • >>The United States has not had an official diplomatic relationship with Taiwan since

  • 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.

  • Taiwan was a quick and generous donor of supplies in funding after the 2011 triple disaster

  • in Japan and after last November's Typhoon Haiyan off the Philippines. In short Taiwan,

  • a stable incapable friend in the region contributes to peace and security. Finally, Mr. Chairman

  • members of the committee I thank you again for the opportunity to appear today to highlight

  • the strength and durability of ties between the people of United States in the people

  • Taiwan. and you underscore the substance success of our corporate efforts within the context

  • of unofficial relations. Taiwan has earned a respected place in the world every society

  • wishes dignity for itself and people on Taiwan are no exception. Thanks to the Taiwan Relations

  • Act, people of good will in the United States and on Taiwan have a firm foundation on which

  • to strengthen our further strengthen and our robust relationship. With that I thank you

  • so much and I look forward to answering your questions.

  • >>I thank you Mr. Moy. I have to tell you there's one really disappointing thing to

  • me. And that is I frequently speak to Assistant Secretary Daniel Russell on the phone about

  • different issues and I believe he intended to be here to testify. I believe I talk to

  • him twice about it but time after time this is something that the subcommittee on Asian-Pacific

  • has talk to me about. For whatever reason, the administration pulls the witnesses and

  • I know it isn't a lack of engagement on the part of Danny Russell's part because we've

  • talked him repeatedly about issues but there is something about the relationship here with

  • the State Department when Elliot Engle and I make these requests or subcommittee Chairman

  • Chabot on the Asian-Pacific subcommittee. for some reason the witnesses are always canceled

  • and what we want to talk about his Asia policy and as far as I know Danny Russell and I are

  • in concurrence on a lot of these issues but I don't know about further up in the administration.

  • So when I ask questions, for some reason the State Department I am going to ask you question