The newly appointed Minister of Economic Affairs, Chao Yao-tung, paid a surprise visit to his ministry and its branches Nov. 28, three days before he officially took office. Instead of going straight to the executive officer's quarters, he visited instead a number of staff offices, and encouraged personnel to perform their duties more assiduously so that the national economy can be further developed.

Minister Chao's unconventional method of starting his official duties raised a few eyebrows among government officials and the press, but it surprised no one who know him well. And it brought him wide support from the public.

Minister Chao, an engineer by training and an industrialist for 30 years, was taking up his first direct government post. He earned the nickname of "iron man" for his industrious and vigorous style in running many enterprises, including the government-owned China Steel Corp., of which he was board chairman before he took up his new post.

Although inexperienced in government administration, Minister Chao describes himself as a veteran organizer. "I have managed several plants in the past 30 years in Taiwan and in Singapore. Although trained as an engineer, only a small portion of my work since graduation has been involved in the technical sphere. I think it is important to understand people if you want to be a good manager. I also spend a lot of time reading books on management and administration."

As well as reading, Minister Chao has written many articles on management. In one, he compared the differences in management methods in China, America and Japan. Characterizing the management method in the U.S. as one of "mutual interest, and that in Japan as "group spirit," he emphasized the need to manage Chinese companies in the spirit of Confucius.

As the board chairman of China Steel, Chao implemented his own "family-style" management philosophy. He asked his colleagues to call him "Brother Chao," or "Uncle Chao" instead of "Chairman Chao," so they would feel closer to each other. While demanding hard work, he provided excellent welfare programs and training opportunities for young employees.

Chao has announced that he will study the wage structure in his new ministry, and plans to improve dining hall facilities. "The staff is definitely underpaid. Before I demand anything from them, I have to make sure they are properly taken care of." He said.

In the field of economic policies, the Minister has written on the ideals of achieving growth but not at the expense of stability. He said: "My hope is that we will not forget stability as we grow, and we will strive for stability in the midst of growth, instead of abandoning stability for the sake of growth."

Looking forward into the 1980's, Minister Chao admitted it will be difficult to maintain the 10 percent economic growth rate achieved in the 1970's. But he said the nation should strive to change its industrial structure from a light to a heavy base. He specifically directed that the information industry be regarded as an alternative to light industries. "The most needed investment in the information industry is brains. The Chinese have plentiful supplies of this resource," minister Chao said.

Turning to improvements, in the operations of government organizations, Minister Chao said: I support delegation of authority. To take the Industrial Development Bureau as an example, this organization is often blamed for being slow-moving and ineffectual. If this is the case, we will turn its authority over to the private sectors and let industries decide what to do themselves."

Ministry Chao favors better communications with the private sector in all aspects of the economy. "The time when the government could take the lead and order the business and industrial sectors around is gone. We need to have better communications with industry, business leaders and scholars."

[Picture Caption]

Minister and Mrs. Chao at a friend's wedding party

Minister Chao analyzes the current economic situation in the Republic of China.

Minister Chao says brains are an abundant resource among the Chinese.

"Iron Man" in the Ministry.

Minister and Mrs. Chao at a friend's wedding party.

Minister Chao analyzes the current economic situation in the Republic of China.

Minister Chao says brains are an abundant resource among the Chinese.