History, Time of Prosperity
Diplomatic relations, Asian economies, military aid, foreign trade, imports
During this time the United States also extended massive economic and military aid to Taiwan, enabling it to build its economy despite a great investment in military defense. By the mid-1960s, when such aid was ended, more than U.S.$4 billion had flowed into Taiwan’s economy. In that time industrial production was estimated to have risen by 300 percent; in addition, exports tripled and imports doubled. Of greater significance, however, was that the island had become a showcase of modern economic development, with a growth rate far above that of most other Asian economies.
Throughout the 1960s Taiwan experienced few changes in its international status or internal government. The National Assembly reelected Chiang Kai-shek president in 1960 and 1966, broadening his powers in 1966. Taiwan still enjoyed wide diplomatic recognition throughout the world, and its foreign trade boomed. Gradually, however, countries began shifting their formal relations to the People’s Republic of China on the mainland. Diplomatic relations with France, for example, broke off in 1964.
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