Men behind the Economic Scene

April 1983

中文

Right: Vice-Minister of Economic Affairs, Wang Chou-ming, is a great help to Minister Chao Yao-tung because of his many years of political and administrative experience.

During the cabinet shake-up of 1981, two men emerged as outstandingly talented officials in the Republic of China's financial and economic structure. They are Wang Chou-ming and J. K. Loh, Political Vice-Ministers respectively of Finance and Economic Affairs.

Wang and Loh have many things in common. Both are self-made men with wide administrative experience, which makes them invaluable to their ministers. Both are also close friends, and can often be found playing go or golf together.

Wang is known for his cool and firm manner. His background of 30 years in financial and political circles has been of considerable assistance to Minister of Economic Affairs Chao Yao-tung, who had never held public office before. Some people have likened Minister Chao to a car with a full tank of gas speeding ahead, and Vice Minister Wang as the brakes. The two work well together and complement each other.

Minister Chao believes in delegating responsibility and whenever an important decision has to be made seeks Wang's advice. Wang commented, "Minister Chao has an especially outstanding quality, he can accept totally opposing views. This suits my personality because I am the kind of person who must say what he thinks. Because the two of us see eye-to-eye on many issues, my ideas are often implemented by Minister Chao." Wang also pointed out that opinions should be put forward before decisions are made. It is his duty to implement the Minister's decisions.

Answering critics who say that his main task is to help the Minister read reports, Wang replies that a minister should be able to make decisions without becoming bogged down in paper work. Even vice ministers should not do too much paper work, Wang says, but explains that many other officials in the ministry are still not used to the system. As a result, Wang often makes decisions based on the reports on behalf of the minister. He is also kept busy holding discussions with officials and receiving visitors.

Wang is known as an excellent writer of reports himself. When former President C. K. Yen was Premier, he relied on Wang's writing abilities, and Wang continues to write a regular column for a local newspaper.

Despite his busy schedule, Wang finds time for many recreational activities. He is vice-president of the China Go Federation, practices calligraphy, and plays golf. On weekends, he plays either golf or go, depending on the weather. "Because my workload is heavy, these pastimes provide me with mental and physical relaxation. They will also give me something to do after I retire," Wang says.

One of Wang's toughest assignments is acting as ministry spokesman. He finds it difficult not to help people with a problem, including reporters doing research for a story. But when he is asked a question he does not want to answer, he apologizes for not being able to help. He will often anwser queries from reporters who call him at home, even late at night.

Wang said that one of the Ministry's current policies, to try to make state-run enterprises more efficient, is held back by legal regulations. Real improvements cannot be made until the laws are changed.

The Ministry is also helping the private sector to improve efficiency during a period of industrial transition. Last November it was decided to set up pilot projects in five areas: Automation, energy conservation, economic management computerization, foreign trade, and plastic processing. So far only the automation program has been established, but it has been successful and well received.

Wang said, however, that improving skills and equipment is easier than changing management techniques. He feels that the foreign trade program, now in the planning stage, will be much more difficult to implement, and have less obvious results.

When Political Vice Minister of Finance, J. K. Loh, was director of the National Tax Administration, he proposed allowing people to pay their taxes by check. He ran into a lot of opposition from many quarters, but he also received praise for his courage. He explains that his idea came from his legal background, which assures he has a grasp of a subject before he makes a decision.

"At first many opposed the concept mainly because they were afraid of checks not being honored. But I feel if a person wants to cheat on his taxes, he can simply avoid paying them altogether. With a bounced check at least there is a line to the taxpayer and a chance of legal redress. Over the past 10-years, I have never heard of a single dishonored check."

Vice Minister Loh graduated from the Soochow University Department of Law after a period of working and studying at night school.

Coming from a farm family, Loh as a youth used to work in the fields. After graduating from high school on the mainland he came to Taiwan to work in the Highway Bureau to see more of the world and expand his outlook.

Later, after he married, he began to move up the government ladder. But still he felt the urge to study more, since he was not satisfied with only a high school diploma.

In 1951, he began studying at Soochow University in Taipei after friends pointed out that his office was close to the school, and he had nothing to do at nights in any case. He was also inspired by a friend who traveled every night from Keelung to attend classes in Taipei. He explained that he chose to study law partly because the law department was the first to be established at Soochow, and partly because he felt it would help in his work as a public servant.

After graduating, he went to the U.S. to obtain a Master's degree in law. At the time he returned, he had barely enough money to buy gifts for his children. Things soon started to improve when he resumed his career in public service. Over the next few years, he held such important posts as secretary of the Executive Yuan, chairman of the Central Trust of China and several others in the Ministries of Finance and Economic Affairs.

"My friends say my 'stage career' is very broad, I can play many "roles." Actually they exaggerate. In fact, a minister's responsibilities are heavy, but a vice minister only has to put forward ideas. Minister Hsu and I have been good friends for many years. If he is happy, I am happy."

The biggest problem facing Loh is with the taxation system, which everyone criticizes. Some say it is unfair in general, while others point to the fact that often rich people pay nothing while the poor are penalized. Many criticize the recent extension of the tax to teachers and writers. Loh answers that these critics do not understand the problems involved. The taxation system is basically fair, since the rate for the highest tax bracket has been raised from 25 percent to 38 percent. The main problem is enforcement. One sees a person driving an expensive foreign car, but there are no records of his income. This is partly because all transactions are on a cash basis. In Japan or the U.S. on the other hand, most people use checks, and so there are records that can be traced. As far as teachers and writers are concerned, Loh feels they use public facilities and services, and so should pay for them.

[Picture Caption]

Right: Vice-Minister of Economic Affairs, Wang Chou-ming, is a great help to Minister Chao Yao-tung because of his many years of political and administrative experience. Left: Formerly Wang was a Vice-Minister in the Ministry of Finance. Here he is seen inspecting the information computor center in that capacity.

Top: Vice-Minister of Finance, J. K. Loh. Middle: Loh with his wife in front of the International Court of Justice in Denmark. Bottom: Wang and Loh concentrating during a game of go.

1. Vice-Minister Loh in conversation with foreign guests. 2. Loh (center) with the head of the China-Philippines Economic Association trade delegation (right). 3. Wang and Loh on the golf course with Minister of Finance, Hsu Li-teh (second from right). They can often be seen on the links together.