K. T. Li And The Taiwan Experience Contents Foreword Preface Acknowledgements Contents List of Charts ..................................................................................................................... ix Illustrations ........................................................................................................................ v Foreword by Ezra F. Vogel ............................................................................................... xxxix Preface ............................................................................................................................... xlv Acknowledgements ........................................................................................................... xlix Introduction ....................................................................................................................... 1 PART I   The Education of Taiwan's Godfather for the Development of Science and 　Technology .................................................................................................................. 27 CHAPTER I   Childhood in a Gentry-Merchant Family in Nanjing (1910-1926) ................................... 29 Li's Family and Education in Chinese Classics ................................................................ 30 The Experimental School of the Nanjing Senior Teachers' College - a 　Modern Deweyan Child-Centered Elementary School ................................................ 34 The Zhongying Middle School - the Cradle of a Young Mathematician ......................... 37 CHAPTER II   The Education of a Scientist in China and England (1926-1937) .................................... 41 From Southeast University to Central University, from Mathematics to Physics .......... 42 Teaching Physics and Mathematics at Ginling Women's University ............................. 49 The Examination for the Sino-British Indemnity Scholarship ........................................ 53 K. T. Li and the Cavendish Laboratory of Cambridge University .................................. 54 CHAPTER III   Making Science Serve China During the War (1937-1945) .......................................... 59 Could a Physicist Fight a War? ...................................................................................... 62 Observing the Full Eclipse of the Sun in Northwest ...................................................... 65 Li as a Manager of the Labor Department of the Ziyu Iron and Steel Mill .................... 66 The Iron and Steel Committee at the National Resources Commission ........................ 70 PART II   The Practical Training of a Technocrat .......................................................................... 73 CHAPTER IV   Ship-building in Shanghai and Taiwan (1945-1953) .................................................... 75 Maobo Zhou, K. T. Li and the Construction Office for the Central Ship-Building Corporation (1945-1948) .......................................................... 75 Taiwan Ship-building Corporation - From a Novice to an Innovator ........................... 79 CHAPTER V   Industrializing with Few Entrepreneurs - 　Industrial Development Commission (1953-1958) ................................................. 87 Taiwan's Economy and Economic Policy-makers in the 1950s ................................... 88 K. Y. Yin and his "Planned Market Economy" ........................................................... 97 K. Y. Yin, K. T. Li and the Industrial Development Commission .............................. 104 The Industrial Development Commission and the Foreign Exchange Reform ........... 112 The Beginning of Li's Career as an "Economic Diplomat" ......................................... 115 PART III   A Technocrat's Economic Policy ................................................................................ 123 CHAPTER VI   Liberalizing the Economy during the Period of Military 　Mobilization - the Council for US Aid (1958-1963) .............................................. 125 The Dissolution of the Economic Stabilization Board and the 　Reorganization of the Council for US Aid ............................................................. 127 The US's Taiwan Policy in the 1950s ......................................................................... 130 K. T. Li and "How to Make a Bigger Pie" .................................................................. 133 August 7th Flood in 1959 - How to Turn a Natural Disaster into a Blessing for Taiwan's Economic Development .......................................................... 137 The Formation of the 19-Point Program for Financial and Economic Reform ........... 139 The Statute for the Encouragement of Investment, 　its Formulation and Implementation ....................................................................... 143 A Sick Leave in the United States and an Appreciation of American Culture ............. 149 CHAPTER VII   Promoting Independent Economic Growth - Council for 　International Economic Cooperation and Development and 　Ministry of Economic Affairs (1963-1969) ........................................................... 153 How to Accelerate the Growth of Exports .................................................................. 154 How to Control Population Growth and Cultivate Human Resources ........................ 160 Studying the Principle of People's Livelihood as the Minister of Economic Affairs ... 162 Promoting International Economic Cooperation .......................................................... 167 Science and Technology Exchange between Taiwan and the US ................................. 171 Conversion to Christianity to Cleanse the Mind ........................................................... 177 CHAPTER VIII   Simultaneously Achieving Wealth, Equality and Stability - 　Ministry of Finance (1969-1976) ............................................................................. 181 Pluralization of Taiwan's Finance ................................................................................. 184 The Man Behind the Tax Reform ................................................................................. 186 The Reform of Tax Administration .............................................................................. 191 The Centralized Disbursing System ............................................................................. 192 Adjusting Interest Rates at the Opportune Time to Control Inflation ........................... 194 How to Manage the Oil Crisis under Chiang Ching-kuo's Iron Fist ............................ 195 CHAPTER IX   Making and Implementing an Appropriate Science and Technology Policy to 　Sustain Economic Growth, to Promote People's Livelihood, and 　to Achieve Self-Reliance in National Defense - 　Minister without Portfolio (1976-1988) ．.............................................................. 203 The National Conventions for the Development of Science and Technology and 　the Science and Technology Advising Group of the Executive Yuan ...................... 206 The Program to Cultivate and to Attract Science and Technology Manpower .............. 210 Strategic Industries and the Development of Information Industry .............................. 213 TSMC .......................................................................................................................... 202 CHAPTER X   The Taiwan Experience and Lesson ............................................................................. 225 The Taiwan Experience in Summary -- Appropriate Timing, Appropriate Policies .... 227 The Ethical Foundation of a Modern Society - the Sixth Relationship ......................... 228 Notes 233 Selected Bibliography 243 Index 247 Contents Foreword Preface Acknowledgements