Word: formosae
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During his 30,000-mile trip to Japan, Hawaii, Formosa, the Philippines, Hong Kong, the Republic of Indonesia and other Far Eastern points, Baker had extended conversations with U.S. diplomats, local government leaders and businessmen. In Japan, he is convinced that the economy is reviving strongly. TIME-LIFE International, which prints two-thirds of its Pacific edition in Tokyo, has switched from a dollar to a yen basis in carrying on its Japanese business; from now on it will be accepting Japanese currency instead of dollars in payment for our magazines...
What about Nationalist China? "I am for defending Formosa because it seems a clear case. We should tell the Communists to stay out and see that they do." Would he encourage Chiang Kai-shek to reconquer the mainland? He thought...
Dangling Bargain. Since the Korean war started, the U.S. State Department had been playing what it conceived to be a delicate game. By not quite closing the door to recognition of Communist China, by not quite guaranteeing Formosa, the State Department had deliberately encouraged Red China's hopes that, if it stayed out of the Korean war, the U.S. would go along with recognition and withdraw protection from Formosa. By sending his troops across the Yalu, China's Mao Tse-tung could be simply pressing for a bargain that had been dangled in front...
...weakness. From Chinese Communist Foreign Minister Chou En-lai came a stiff message refusing the U.N. invitation to send delegates to discuss Chinese intervention in Korea. But, in answer to a previous Security Council invitation, Chou agreed to send delegates to discuss what Chou called U.S. "aggression on Formosa." Besides discussing Formosa, Chou suggested, his delegates ought to be given a chance to accuse the U.S. of "armed intervention" in Korea...
...Asian employees of the State Department, Teodoro V. Madamba of the Philippines and Y. W. Jao of Formosa, spent a day looking over the University Tuesday, and were much impressed...