Q. Why do we want to enter international organizations? What are the benefits and costs that come to us from being involved with them?
A. We are a newly-industrialized country. To say a "big country" would perhaps be an exaggeration, but last year our overall volume of import/ export trade ranked fifteenth in the world and we have foreign exchange reserves of more than US$70 billion--either number one or number two in the world. We are a country with economic strength that certainly has status in the world. So joining international trade organizations, apart from shouldering a part of the responsibility for international society, can open up more space for diplomacy and raise our international status.
Like when Economics Minister Siew wanted to invite the United States trade representative, Carla Hills, for a meal and he could only issue the invitation as a personal one; or when Defense Minister Chen wanted to go to Japan and the Japanese refused to issue a visa to placate the Chinese Communists. After such unreasonable occurrences are discussed openly and face-to-face within international organizations they can be improved upon. Such a breakthrough is very big.
As for the cost of joining international organizations, this amounts to taking on more of the responsibilities of international society. Above all, after we enter GATT, our remaining financial and economic measures that are not in accordance with the spirit of free trade must be corrected. Nevertheless, in the long term, the benefits of this for our economic development will outweigh the costs.
The greatest advantage of joining international organizations is that we can have direct contacts with the other members. When our ministers have face-to-face talks with their foreign counterparts and can see each other's facial expressions, then they will really understand what they want at heart. This is what we have been lacking most for a long time. When we are in international organizations and have established personal contacts then we can pick up the telephone and call direct to our counterpart's desk. This is all very interesting!
Trade Organizations the Priority
Q. There are so many international organizations. Which should we try to join first?
A. At present, we should still make trade organizations our priority. Before the Cold War had finished, the most important international concerns were political and military. But since then, practical economic problems have become central. Because of this every kind of international organization now takes the economic as the most important.
We already have delegates at the Asian Development Bank (ADB), the Pacific Basin Economic Community (PBEC) and the Pacific Economic Cooperation Council (PECC) and will soon also join the Asia-Pacific Economic Community (APEC) and GATT. The significance of all these organizations for us is very great.
Moreover, joining financial organizations will help us to become an international financial center and facilitates all kinds of trade activities with other countries. Because of this, we should next actively pursue entry to the International Monetary Fund (IMF), which regulates the international financial system, and the World Bank, which aids developing countries.
Apart from this, joining the Organization for Economic Cooperation and Development (OECD), which was set up by the industrialized nations, can supply us with economic information about many countries. This will be of great assistance for our economic development.
Q. Among these organizations we have already applied for entry to GATT and could soon become a member state. How should we prepare ourselves for this?
Political Significance Is Greatest?
A. Industries supported by the government will be influenced following our entry in GATT. I do not think that our government has really given out enough information about this yet.
The government has not explained clearly to everyone what joining GATT really means. What kind of influence will there be on every kind of industry? How will the government help the masses to improve and enable industries to adapt?
Q. Everybody seems to think that joining GATT is primarily of political importance.
A. No! No! Economics is more significant. Since we are talking about pragmatic diplomacy, why don't we pay attention to practical problems? I certainly want to ask the government to pay attention to this point. Entrepreneurs are also a bit numb, as though this is only the government's affair and not the same as what concerns us. This is not right! Joining APEC is the same. I recognize that the political significance is very great, that we can sit down peacefully with the Chinese Communists, but the economic significance is even greater. We should properly use this opportunity for open and equal talks with the other countries and completely get rid of trade barriers.
Q. What are the prospects for APEC?
A. APEC wants to become a single market like that of the European Community (EC) and there is still a long way to go. Since it was first advocated, in 1953, the EC has been in existence for more than thirty years. The Pacific Basin Economic Community (APEC's predecessor) has only been around for some twenty years, from 1969 to the present. We do not expect it to be as rigid as the EC, something which would not in fact be easy to achieve.
The Asian region is enormous and all the cultural and ethnic backgrounds are different. The degrees of economic development are also not the same. At present we only hope that APEC can have some ability in adjusting the trade policies of nations. Nobody wants to have unreasonable competition and there should be mutual help. First we must achieve this, then we can think again.
Some people say that the twenty-first century will be the "Pacific century." However, last year the development of the EC went very smoothly and it is now very strong, so next will come the "Atlantic century" and the "Pacific century" will come a bit later.
However, the Pacific countries are not lacking in the ability to overtake the EC. The reunification of the two Germanies and the reforms in Eastern Europe will all tie up the EC within its original area for some time. This is our opportunity.
Hopefully young People Will Take the Baton
Q. Can you please talk a bit about your personal experiences and feelings having taken part in so many international organizations?
A. There are many countries with which we do not have diplomatic relations, and in striving to join international organizations we must use the strengths of civil industry and business to influence representatives of each country and thus through them influence their governments. Just as with the United States, Japan, Korea, Europe, New Zealand, Australia and other countries . . . all the civil channels of communication have been laid down in this way.
When channels of communication have been established, then practical problems can be discussed. For example, when we discussed the visa problem with India, we told them, "Taiwan is a very good buyer. If you do not let us come to your country then whose loss is it in the end?" You should certainly talk about the profit of intercourse between the two countries. If you can tell them what is beneficial for them, then they will naturally welcome you.
I have been working hard in international conferences for decades and now I really want to pass on the baton to a younger person. Actually, I do not want to retire. I just want to write down the experiences of my life. They are all very interesting experiences and I want to pass them down for young people to consider.
Q. There is a lack of personnel with your enthusiastic international service and rich experience. How have you prepared to pass on the baton?
A. I am troubled about this! Young people are all very busy these days. The scope of Taiwan's businesses is also small and cannot raise a variety of professionals, so the desire of people to take part in international conferences cannot be very great.
At present the Chinese National Assoc. of Industry and Commerce has an "International Affairs Camp" to train young people to take part in international conferences, but not many people support it because, after all, there can be no quick results.
I often encourage the second generation of entrepreneurs to study more of the basics. Otherwise they will get cocky but their future will be limited and there will be endless problems later. This will not be of any advantage to them. The more young people understand, support and take part in international service--apart from getting to know people and understanding the tides of the world and being of great help to themselves--they will be helping our country to reach out and make contacts. This really is of the utmost significance.
[Picture Caption]
Koo Chen-fu, known as an "ambassador of trade," has forged many diplomatic channels for us as a representative of the private sector. (photo by Vincent Chang)
Koo Chen-fu relates his experiences in opening diplomatic space for our country's trade and business as he points at photos of himself at various of international conferences. (photo by Diago Chiu)
Koo Chen-fu relates his experiences in opening diplomatic space for our country's trade and business as he points at photos of himself at various of international conferences. (photo by Diago Chiu)