USA Aid

"United States aid had been one of several important factors which have made possible the remarkable economic achievements of free China," said Dr. Lew.

Excluding military aid, the USA had provided roughly one-third of the capital investment for Taiwan's economic and social development.

Dr. Lew told the meeting that land reform was an indispensable pre-requisite to the economic development of Taiwan. The Land Reform Programme was carried out in three stages.

The first was to reduce the land rent (generally about 50 per cent) to a uniform rate of 37.5 per cent of the annual main crop. This increased earnings of tenant farmers, and at the same time made landmarks lords more willing to sell their land as its proportionate rent value fell.

The second stage was to sell cultivated public lands to tenants over a 10-vear investment plan. Over 120,000 tenant farmers bought 151,000 acres on this basis.

The third step was the redistribution of privately rented land by limiting the size of the land hold-lings. Some 340,000 acres of excess land were purchased by the Government at fair prices and resold to tenant families.

Some landlords invested the proceeds of their land sales in new industrial enterprises.