Betelnut wrote:Can you describe this mess the KMT made of the place?
No, I think that would require the talents and efforts of a professional scholar, and probably one who was willing to devote a quite a bit of time and hard work to the subject. But I think that by borrowing some of the writings of others, I can provide a few pencil strokes toward the beginnings of a rough sketch:
The destruction of the factories [by U. S. bombing] brought unemployment, unemployment to which the Chinese added by bringing over their own relatives and friends and by deporting 100,000 Formosans from overseas.
China was in the throes of a civil war and her economy was suffering accordingly. She therefore had no money to spare for rehabilitation and restoration - in fact she took so much money out of the Island that it looked as though she did not know the meaning of rehabilitation - and money that should have gone into restoring the industrial and economic life of the Island was taken to bolster the tottering economic system on the mainland. Furthermore, the Chinese let their hatred of everything Japanese go beyond the bounds of common sense and hastened to ship the Japanese population to Japan with all speed. This rebounded and caused them very great difficulties in industry.
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Allan J. Shackleton, Formosa CallingIn my first tour of the Island I came to the conclusion that by far the greatest difficulties of rehabilitation were those of finance. Time and again I was told that no money was available, and in such a highly productive Island as Formosa two questions arose. One was as to what had happened to the tangible assets of the various companies, particularly in the way of stocks, both of raw materials and finished products; and the other question concerned the proceeds from agricultural production, particularly of rice, which was undoubtedly a good source of external revenue, when it was remembered that the Island satisfied all its needs from one crop and the second crop produced in the year could be used for export. The answer in both cases was that every dollar that could be found was poured into the economic vacuum of the mainland. For example, of all old stock of sugar seven-eighths had to be handed over to the Executive Yuan and one-eighth remained with the companies.
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Shackleton, ibid.. . . at the end of the war, the price of rice was 30 dollars per catty; afterward, consumer prices began to rise, factories were shut down, and now the price of rice has jumped from 30 to 1,400 dollars per catty. Taiwan has been a rice-producing area; its rice has been exported after feeding its own population. But why, after only one year's rule [by the new government] is there not enough for ourselves?
--Huang Chih-Huei, "The Transformation of Taiwanese Attitudes Toward Japan in the Post-Colonial Period," in Li Narangoa and R. B. Cribb, Imperial Japan and National Identities in Asia, 1895-1945Looting was carried forward on three levels. From September, 1945, until the year's end the military scavengers were at work at the lowest level. Anything movable - anything lying loose and unguarded for a moment -- was fair prey for ragged and undisciplined soldiers. It was a first wave of petty theft, taking place in every city street and suburban village unfortunate enough to have Nationalist Army barracks or encampments nearby.
The second stage of looting was entered when the senior military men -- the officer ranks -- organized depots with forwarding agents at the ports through which they began to ship out military and civilian supplies. Next the Governor's own men developed a firm control of all industrial raw materials, agricultural stockpiles and confiscated real properties turned over to them by the vanquished Japanese. By the end of 1946 these huge reserves were fairly well exhausted. . . .
By the end of November looting had become well-organized and was on a massive scale. Foodstuffs, textiles, and scrap metals were at a premium. Officers worked in small gangs, with conscript help. By sharing a percentage with "higher authority" they could use confiscated Japanese military trucks to move loot to depots from which it was shipped on to Shanghai. The "Peace Preservation Corps" arriving in September had promptly commandeered all of Taipei's garbage trucks, for example, and by late November those that were still able to move were carrying loot to the ports.
The great Zuiho copper and gold mines near Keelung (Jilong) had at one time produced 20 percent of Japan's total copper ore, and the machinery at the mines was developed to match the wartime importance of such production. Solitary conscripts, on foot, first roamed about the silent unguarded premises, picking up supplies and tools from undamaged machine shops. Then the officer-gangs moved in with commandeered trucks. Soon they had ripped out the heavier machines, removed wiring and all metal fixtures, and shipped the whole off to the ports and on to Shanghai. When I visited the site not long after, I discovered that even the metal door-frames and sheet metal roofing had been carried off, leaving empty shells where important industrial installations had once stood.
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George H. Kerr, Formosa BetrayedIf a factory was not yielding commodities which could be sold promptly, the working assets were sold, beginning with the stockpiled raw materials and finished products, and then by dismantling the factories themselves. Units which could be sold piecemeal went first, then the very framework went, shipped off to Shanghai as scrap metal.
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The fate of the Tropical Chemical Industry Company near Jiayi was an example. Here cassava root from some eight hundred farms was processed at a factory employing more than one hundred workers. In the face of organized community protest the new management simply dismantled and sold the works as machine units and as scrap metal. The cassava farmers were without a market, and the factory workers without jobs. In a similar fashion the industrial alcohol plant near Jiayi (the largest of its kind in the Orient) was allowed to fall into complete disrepair and go out of production. From a maximum of 3200 employees the working staff was reduced to a skeleton maintenance crew of about 130 men. Much of the plant fabric was carted away as scrap metal.
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Kerr, ibid.