We hear a lot about the male heroes of the frontline in World War I, but less has been written about the women who also served during that war. Women were involved in a wide number of organizations that were essential to the war effort. And in this article, we tell the story of organizations and people from Britain who played essential roles both on and near the frontline. 

World War I heroine Edith Cavell

World War I heroine Edith Cavell

 

It emerged within the first few weeks of the outbreak of war that there was a great shortage of qualified nurses and others who could support with medical assistance in places such as field hospitals. Voluntary Aid Detachment (VAD) nurses were then sent from Britain to France but had to be over the age of 23. Many lied about their age so they could set out on an ‘adventure’ which proved to be a naïve mistake. Often, many women who ventured across the English Channel returned home as injured and broken as the men who were fighting at the Front.

When the nurses arrived in France life was far from enjoyable. After a long and grueling journey, they found old dwellings, a shortage of food, and uncomfortable surroundings.

Meanwhile, back in Britain many hospitals were set up in country estates; the most famous of these was probably the estate of the Duchess of Rutland and her daughter, socialite Lady Diana Cooper. Lady Cooper was a VAD nurse - when it suited her - if you believe reports from the time. However, this was not a unique case as many privileged and wealthy girls would volunteer for these services and many accounts have been told about how they would spend the day serving tea to the wounded and recuperating soldiers only to return home and have their own tea poured out by the parlor maid!

This was an experience that gave these privileged women a new outlook on life; it brought a whole new meaning to life as they realized that there was a freedom beyond the restrictions of an aristocratic existence. For many this sparked a turnaround in their lives and gave them a new found ambition to do something with their lives – one of the many turning points for the aristocracy during this period in time.

The same would be applied to the less privileged as they realized that they could play roles other than working in factories.

Alongside the VADs, there was another important organization called the First Aid Nursing Yeomanry (FANY). Members of the FANY would go to the Front and set up soup kitchens, drive ambulances, and work in field hospitals. Like the VADs, members of the FANY had to be at least 23. There were no formal regulations that they had to follow but they would salute an officer of rank just out of respect, although this was an optional formality.

Meanwhile, VADs were only human and made mistakes like the rest of us. Many unused to household chores didn’t know how to mop a floor properly, let alone make tea; however, they did more than act as nurses. Some went beyond the call of duty by composing letters home for the injured men. Many soldiers could not read or write so this provided a valuable service on what could always be their final contact with home.

Somebody who went even further beyond the call of duty was Edith Cavell. An experienced British nurse, she travelled to Belgium and whilst tending to the wounded, she also helped Allied servicemen escape to freedom from German-occupied Belgium. She was eventually caught doing this and was court martialed for her actions. Fondly remembered as a patriotic, brave woman, she famously said ‘I can’t stop while there are lives to be saved.’ Edith Cavell never received any formal decoration for her efforts before she was executed by a firing squad.

She was just one of the many brave heroines who strived to change lives in whatever small way they could.

 

By Ruth Roberts

 

You can read another article on World War I by clicking here. It’s about the secret underground battle of tunnel warfare.

Have you heard?

Our interactive digital magazine for the iPad and iPhone, History is Now, has arrived! We love it and we're sure you will too.

Click here for more information! 

 

So what is the magazine about? Here is what our editor says…

History continues to define and transform our world. Events in 1940s China continue to causes tensions between China an America. The legacy of Communism and Colonialism continue to cause stability and instability, problems and agreements the world over. In short, history is so very important. The lessons you can learn from it, the events that happened, the differences between different ages and countries. Understanding where we as human beings have come from.

So that’s why we’ve decided to start History is Now, the global modern history magazine. Much like our other productions, the focus of the magazine will be on the 19th century, 20th century, Communism, civil war, and Colonialism. That said, from time-to-time we may be tempted to veer slightly off that course. Our articles will come from a variety of sources. We will be providing you with articles from some of our favorite history writers, while at other times we shall be trawling the archives of some of the best sites online to hand-pick the very best pieces just for you. You see, very often the best history has already been written – it’s just finding it that’s almost impossible. And as some of you will know, before our horizons expanded, we were making history podcasts - so in each magazine we will be telling you a bit more about one of our podcasts and inserting it in the magazine.

Click here for more information

 

The USA, China, the USSR and the nearly-nuclear Taiwan Straits Crisis is the main article! But what else is there in issue 1?

The first edition features articles on:

  • How the US, China and the USSR nearly became involved in a nuclear war over Taiwan
  • The story of the early stages of the brutal Italian colonization of Libya
  • Death in the Eastern Bloc - The harrowing tale of a freedom fighter in Communist Czechoslovakia
  • A number of bizarre tales involving lions in Western Europe
  • The life and times of the 'log cabin President' William Henry Harrison
  • Our first ever podcast!

With all that and more, come and join us inside…

 

Just click here for more information! Alternatively search for History is Now  on the app store.

 

George Levrier-Jones

Near the center of the town of Neuruppin, not far from Berlin, sits a large if unassuming house that once belonged to the local newspaper publisher. After the Second World War, it became the local Stasi headquarters. They adorned the brick façade and red tile roof with a myriad of surveillance equipment, antennas and satellite dishes.

The better to hear you with. Even today, some locals make a wide circle to avoid passing directly in front of it.

The Stasi, short for Ministerium für Staatssicherheit (Ministry for State Security) was the East German’s secret police, charged with protecting the state from enemies both foreign and domestic, real or imagined. Lesser known than their Soviet counterparts in the KGB, they were no less feared. It is not a coincidence that Stasi rhymes with Nazi. 

Erich Meilke, the man who led the Stasi for over 30 years, in 1958. He worked for DDR leader Walter Ulbricht for much of his tenure. Source: Bundesarchiv, Bild 183-60945-0005 / Ulmer, Rudi / CC-BY-SA

Erich Meilke, the man who led the Stasi for over 30 years, in 1958. He worked for DDR leader Walter Ulbricht for much of his tenure.

Source: Bundesarchiv, Bild 183-60945-0005 / Ulmer, Rudi / CC-BY-SA

 

The Stasi began operating in 1950. Its international exploits during the Cold War included training Castro’s secret police, running brothels in West Germany for the purpose of blackmailing West German politicians and businessmen, and funding Neo-Nazi groups in West Germany in order to discredit democracy. In the early 1970s, they even succeeded in having an agent appointed as an aide to the then West German Chancellor Willie Brandt.

But it was their work as an internal secret police that kept East Germans looking over their shoulders. Their network was extensive. Most apartment buildings, neighborhoods, factories and government agencies had at least one informant, spying on their neighbors and informing on them regarding the slightest infractions, which were then documented to the minutest detail. By the time the Berlin Wall fell in 1989, the Stasi employed some 91,000 agents and operatives, and had another 173,000 informal informers from whom they gathered information. As a point of comparison, Canada today has about 2,500 security agents for twice the population.

The Stasi compiled extensive files on much of the East German population. Olympian Katerina Witt had information collected on her going back to the age of six or seven, when she first began to show promise as a figure skater. The DDR was terrified she might defect to the West and that they would lose one of their crown jewels, so the Stasi kept track of almost everything she did and said. Friends, relatives and team-mates were either convinced or coerced into keeping tabs on her. Her home contained hidden microphones to record her conversations.

Surveillance wasn’t just done on the famous or important. Everyday people were spied on with regularity. Seemingly mundane transgressions were often considered crimes against the state. One woman had a file started on her because she bought a sweater from the West. She laughs about it now, but such activities, could have dire consequences. A neighbor and informant went through one man’s cupboards to find that he had some pudding from West Germany. Shortly after, he lost his job and was unable to find another. He and his family ended up destitute.

As the Cold War came to a close, the Stasi tried to destroy these files. But when people saw smoke rising up above the Stasi Headquarters in Berlin, they stormed the buildings and put an end to the destruction. While about 5 percent of the files were destroyed, most of them remained intact. Today, they take up over 100,000 kilometers of shelf space in the Stasi Museum, located in that former Berlin Headquarters. Under German law, former citizens of the DDR can request to see their files. Some 2.75 million people have done so since the law was passed in 1991. 

Protests in Leipzig, East Germany, May 1990, demanding the opening up of the Stasi filesSource: Bundesarchiv, Bild 183-1990-0522-033 / Gahlbeck, Friedrich / CC-BY-SA 

Protests in Leipzig, East Germany, May 1990, demanding the opening up of the Stasi files

Source: Bundesarchiv, Bild 183-1990-0522-033 / Gahlbeck, Friedrich / CC-BY-SA 

The Stasi did more than just watch and listen and record. As with the man who was guilty of nothing more than having a taste for West German pudding, they acted against those they felt were a threat to the state. They had learned early on that the traditional methods of most secret police, torture and imprisonment, had a limited effect. The victims often became martyrs or heroes and it did little to discourage others. Nelson Mandela is but one prominent example of this. Instead, they employed much subtler methods, known as Zersetung (corrosion or undermining). They conducted smear campaigns to discredit people along with threats and intimidation to get what they wanted. Wiretapping and bugging were commonplace. Sometimes, they would move a person’s furniture or take a picture down from their walls - all to send the message that they were always there, always watching. Their victims were forever on edge, waiting for the next shoe to drop. Some even went insane.

Zersetung had the added advantage of deniability. With no one in prison, no one physically hurt, the Stasi could deny any involvement. This worked so well that by the year 2000, only 33 Stasi officers had been sentenced by German courts for their crimes, and of these, 28 were suspended.

When revelations about NSA surveillance surfaced earlier this year in the US, most Americans did not seem overly concerned. Germans, however, have been much more vocal in protesting what they see as an invasion of their privacy. There have been public protests, and it came up as an issue in the general election there. Learning how the East German people were intimidated into obedience by an ever watchful and secretive organization like the Stasi, it is easy to understand their reaction to what many see as an unfettered invasion of privacy. After all, the NSA data center is estimated to be able to save 5 billion terabytes of data - 1 billion times more than the Stasi kept in their notorious paper files.

That’s a lot of sweaters being bought from the West.

 

By Manfred Gabriel

Enjoy this article? Well, another East Germany related article from Manfred is here. It is about the story of how a Trabant car defined a nation. 

Posted
AuthorGeorge Levrier-Jones

Our image of the week this week comes from India. And we’re looking at a few images from Indian independence hero Mahatma Gandhi. Here we see images from Gandhi’s later life, in the years before his 1948 assassination. 

Here Gandhi is wearing a Noakhali hat whilst spinning at Birla House, New Delhi

Here Gandhi is wearing a Noakhali hat whilst spinning at Birla House, New Delhi

Here Gandhi is sharing some laughter with fellow independence movement leader Jawharlal Nehru, Mumbai, 1946

Here Gandhi is sharing some laughter with fellow independence movement leader Jawharlal Nehru, Mumbai, 1946

In this final image Gandhi is portrayed as the "lonely pilgrim of peace", a reference to his non-violent means for obtaining change. Alas, Gandhi was soon to suffer a violent death at the hands of Hindu Nationalist Nathuram Godse

In this final image Gandhi is portrayed as the "lonely pilgrim of peace", a reference to his non-violent means for obtaining change. Alas, Gandhi was soon to suffer a violent death at the hands of Hindu Nationalist Nathuram Godse

Gandhi did, though, see an independent India, as India became an independent country in August 1947. 

 

George Levrier-Jones

Missed last week’s image on the Austrian prince who ruled Mexico? It’s here.

 

Posted
AuthorGeorge Levrier-Jones

We thought that this review should be about something really special, and then somebody suggested this amazing film.

Alice Herz-Somme is the oldest Holocaust survivor and an amazing pianist. The film, The Lady in Number 6, tells her story. But here, we’ll briefly explain her life.

Having been born in Prague in the Austro-Hungarian Empire in 1903, Alice went on to live an inspiring life – but not before her troubles. In the years before World War II, she gained a reputation as being a world-class pianist, and played with the Czech Philharmonic Orchestra. And that helped to save her and her son when they were sent to the Theresienstadt Concentration Camp by the Nazis. Alice’s husband and mother were killed in Auschwitz; however, Alice’s music allowed her to play in concerts in the Concentration Camp.

After the war, Anna went back to a changed Prague. The Nazis had moved other people into her apartment and so she decided to move to the new country of Israel. She continued to play the piano, while her son became a cellist.

Later in life, at nearly 100, Alice moved to London in order to be close to her son. Alas tragedy struck again, but Alice has an incredible spirit. This film tells the story of her views on life, a woman that has suffered hardships that most of us can’t possibly imagine, but still has a very positive outlook. Here is an extended clip:

You can find out more about the film by clicking here.

 

And there is another of our reviews available here.  It's on Germany, Poland and the USSR.

Posted
AuthorGeorge Levrier-Jones

May 18th next year marks the 70th anniversary of the victory of the famous battle at the Monastery of Monte Cassino in Southern Italy in 1944. This highly significant battle was one of the most important Allied victories of the war, and had by then been raging for nearly six months. Its capture from the German Army had required four separate hard fought bloody battles involving Allied soldiers from Britain, America, Canada, France, Morocco, India, Poland, and New Zealand. However, its success and significance were largely overshadowed early the following month by the D-Day landings in Normandy which signaled the beginning of the end of WWII.

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Soldiers of the 2nd Polish Corps at the battle of Monte Cassino, May 1944     

 

For the Poles it represented the pinnacle of their wartime achievements. In the battle, members of the celebrated Polish 2nd Corps led the final successful assault and capture of the mountain top monastery. How proud it was for them - in the eyes of the world - to raise the red and white Polish flag above the captured ruins. For most of the Polish soldiers who participated it was their first combat involvement since their homeland was invaded by Germany nearly five years earlier on the first day of September 1939.

But who were those Polish soldiers at Monte Cassino? Why were they there in Southern Italy? Where had they come from? How had they arrived there? And most importantly, why were they even bothered about fighting at all? 

Polish Monte Cassino medal certificate

Polish Monte Cassino medal certificate

Most of the Poles there had originated from the eastern borderland region of Poland known as Kresy and theirs is the tragic and truly unbelievable story of the short lived 2nd Polish Army Corps.

Born in Russia's frozen steppes from the emaciated remnants of a Polish nation exiled to Stalin's labor camps in Siberia, who against all odds and despite unimaginable hardships, murder, intrigue, conspiracy, international betrayal, mystery and controversy, they developed into an elite fighting force in a hopeless struggle to liberate a homeland that would never be free. Theirs is a story that occurred during a largely unknown and poorly documented period of modern history that has been denied by successive Russian Administrations and overlooked by Western governments and media: a story hidden from most in the West.  But it is a story with long lasting ramifications - a story that continues to the present day.

Even before the victory at Monte Cassino, the allies, who had gone to war in Poland’s defense, had abandoned her to Stalin’s demands for the Kresy region to be permanently incorporated into the Soviet Union. For the disillusioned Polish soldiers there was no recognizable country of their own left that they felt able to accept. They knew that they could never return to their homes or the families they had left behind ever again.

For most of the Poles at the battle of Monte Cassino it was just the next phase in a long battle that had started in late 1939 at the start of the war. At that time, over a million Polish citizens were deported, not by German, but by advancing Russian troops. They had battled starvation and brutality just to stay alive, in prisons, in cramped cattle trucks, in the bowels of murderous ‘Slave ships’ and in Soviet hard labor camps: the dreaded Gulags. 

Ex 2nd Polish Corps combatant Jósef Królczyk

Ex 2nd Polish Corps combatant Jósef Królczyk

They received an unlikely “amnesty” in 1941 when Germany invaded Russia and Stalin was desperate for anybody to help him fight against Hitler’s mechanized war machine. On release they had to find their way to recruiting centers in an attempt to join a Polish Army being created by the charismatic General Wladyslaw Anders. They moved through Russia, Kazakhstan, Uzbekistan and Turkmenistan, and for those lucky enough, onto Iran, Iraq, Jordan, Palestine, Egypt, and eventually to Italy. Once there, loyal to the Polish Government-in-Exile in London, they fought without fear in battles against the German Army - hoping to in vain for the opportunity to liberate Poland.

Success on the battlefield was tempered by catastrophes on the political field. The already strained Polish relationship with Russia moved to breaking point in 1943 when the bodies of thousands of military officers, academics, politicians, and doctors murdered in 1940 were discovered at Katyn near Smolensk. General Sikorski, leader of the Polish Government-in-Exile, demanded an immediate independent investigation. Stalin was incensed and severed all diplomatic relations. Within weeks Sikorski had died in a mysterious plane crash and as Stalin’s Red Army grew stronger and pushed further west towards Berlin he demanded acknowledgement from the allies for his puppet Polish Government. The allies needed Stalin and distanced themselves from the Polish Government-in-Exile, and so the fate of the Polish 2nd Corps was sealed.

For most, like General Anders, the man who was arguably the savior of the exiled Poles and millions of other Poles around the world, the fight to see a free Poland has never been won. Many, including Anders, died in exile never returning to see the country of their birth. The Poland that they knew and fought so long and hard for would never return. Even now, with Poland fully integrated into the European Union, the pre-war Polish Kresy region, lost to the Russians in September 1939, is now part of Belarus and Ukraine.

Sanctuary was reluctantly offered by Britain and as the Polish 2nd Corps was disbanded the soldiers moved through the Polish Resettlement Corps to new lives in England, Canada, New Zealand, and Australia where known as Polonia they still maintain strong Polish communities. Even the memory of the Polish 2nd Corps is kept alive with active ex-combatants groups and the name of Anders and the Polish 2nd Corps, once ridiculed and denounced in Communist Poland, has at last been recognized and honored. It is now quite rightly remembered with pride for their place in modern Polish history.

 

By Frank Pleszak

The father of author Frank Pleszak was deported to Siberia aged 19 and Frank has had the story of his journey published by Amberley entitled “Two years in a Gulag”. Frank is also finalizing a book on the concise history of the Polish 2nd Corps for publication next year and is a contributor to the Kresy-Siberia Virtual Museum.

Polish 2nd Corps Facebook – Click here | Polish 2nd Corps Twitter­­ – Click hereKresy-Siberia Virtual Museum – Click here

 

And what happened once the Soviets dominated Eastern Europe? Click here to read about escaping Poland’s neighbor, Czechoslovakia, with the ‘freedom tank’. 

Posted
AuthorGeorge Levrier-Jones

This week’s image (or images) of the week looks at a few photos of people being transported to the Australian gold rush… Probably as you’ve never seen it before!

20131010 Image 1 488px-Cycling_goldminer_1895.jpg

The first image above shows a gold miner who cycled a round trip of 1,000 miles to a gold rush in Western Australia in 1895.

The image is in the public domain and available here.

The second image features a stage coach laden with luggage and many Chinese people en route to the gold fields. It is from the early 20th century.

This image is also in the public domain and available here.

20131010 Image 2 800px-Chinese_on_stagecoach_to_goldfields.jpg

George Levrier-Jones

Missed last week’s image of the week from New Orleans? Just click here!

Posted
AuthorGeorge Levrier-Jones

Our mental image of the First World War usually excludes the army of tunnellers who toiled beneath the trenches. We picture the war in grainy, treeless black and white landscapes or stern portraits of men in heavy uniforms. Mud, trenches, heavy artillery and rows of wooden crosses come to mind, overflown by fragile biplanes and the menace of Zeppelins.

The tunnellers are forgotten. That’s because there are so few photos of a dark, dangerous activity that most contemporary soldiers preferred to ignore.

A more common view of World War I - British soldiers in a German trench during the Battle of the Somme, July 1916

A more common view of World War I - British soldiers in a German trench during the Battle of the Somme, July 1916

The impact of tunnel warfare 

On June 7 1917 the British attack on the Messines ridge, in south Belgium, began with the detonation of nineteen huge underground explosions beneath the German trenches. Each one literally ripped a hole in the German defenses, making it easier for the advancing British to achieve their objectives.

Every explosion was caused by an underground mine, created by digging a tunnel and then filling it with explosives. When it was detonated, the mine destroyed everything above it.

Around 10,000 German soldiers were never accounted for after the battle of Messines and many of them were probably killed when the mines erupted. The explosions were so loud they could be heard in London, over 130 miles away.

Unexpected and devastating, mines were impossible for the individual soldier to defend against. Because of their work, tunnellers were both respected and reviled.

 

Lochnagar Crater in 2012 - Created by a British mine in 1916

Lochnagar Crater in 2012 - Created by a British mine in 1916

The difficulties of tunnel warfare

Much of the First World War involved fighting over a relatively narrow strip of land running from the Swiss border to the English Channel. Carved up into a web of trenches and dominated by machine guns, going underground was one of the few options for outflanking the enemy.

Both sides dug miles of tunnels. They started from behind their own lines, cut through the rock below no man’s land and ended, or even emerged, below or near the enemy trench.

Sometimes rival groups of tunnellers met, as their paths collided. Short, sharp encounters followed, out of sight, which usually ended in one side blowing up the tunnel. Some of those who fell remain entombed in the passages they helped construct.

The tunnellers biggest enemy was carbon monoxide, the silent killer that also stalked the coal mines where so many had worked before military service. The canary is one of the least remembered of the animals that served the British army, but many died as a primitive, but effective, method of detecting gas.

 

One of the many tunnels under Vimy Ridge

One of the many tunnels under Vimy Ridge

The First World War tunnels today

Sections of tunnel are open to the public at Vimy Ridge in France, where the geology made tunneling easy and prolific. While many passages stretch out across the battlefield towards the enemy, they were also used as accommodation and storage, and some signs of these uses still remain.

In 2011 a major project began to excavate part of the Somme battlefield, at La Boisselle in France. This was one of the most tunneled areas during the First World War and the site is within a stone’s throw of Lochnagar Crater, a deep hole blown in the earth by a mine in 1916 and still very visible today.

The British created twenty-one mines at Messines in 1917 but only detonated nineteen, because the others were outside the area of battle. The locations of the remaining two mines were lost until, in 1955, one went off during a thunderstorm. Fortunately, no one was hurt. But one mine, with the power to gouge a hole in the Flanders countryside, remains undiscovered to this day.

 

By Andrew Knowles

This article originally appeared on Andrew’s site infamousarmy.com, an excellent personal research blog on British military history from 1789 to 1945. Click here to see the site.

 

For more updates on our articles on British and international history, why not like us on Facebook? Click here!

 

References:

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AuthorGeorge Levrier-Jones
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In the first of a regular series, we bring you the first of our images of the day – this beautiful painting! 

20130926 The_Hamareh_(Suk_Ali_Pasha),_Damascus._(1907)_-_TIMEA.jpg

This image is of Damascus, capital of Syria. It shows The Hamareh (Suk Ali Pasha)  bazaar in Damascus in 1907. In the image we can see the sunlight streaming into the bazaar, as well as a mixture of animals and people going about their daily business.

 

This image comes from the Travelers in the Middle East Archive (TIMEA).

The original source is Margoliouth, David Samuel. "Cairo, Jerusalem, & Damascus: three chief cities of the Egyptian Sultans". With illustrations in color by W.S.S. Tyrwhitt, and additional notes by Reginald Barratt. Chatto and Windus: London, 1907, p 230.

See image here.

 

Is there a history image that you love? Or a history image from your local area that you would like to share with us? If so, let us know! Click here.

 

George Levrier-Jones

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AuthorGeorge Levrier-Jones

In this article we look at the importance of countries such as the US in the growth of the Taiwanese economy in the 1960s, and consider the role of the electronic industry in those Cold War years. 

President Eisenhower's trip to Taiwan in 1960

President Eisenhower's trip to Taiwan in 1960

Taiwan’s entry into the global economy was facilitated by a relationship between the Nationalist military and the US.

Taiwan focused on direct exports, subcontracting, consignment work for foreign corporations, and joint ventures. These opportunities provided substantial employment opportunity in Taiwan where, by the mid-1960s, 150,000 additional jobs were needed each year to keep pace with population growth.

In 1966, 723 new factories were established in Taiwan by foreign private corporations, creating 30,000 new job openings annually, 20% of the annual deficit. Moreover, Taipei’s relatively large number of trained professional management and technical persons was a factor in attracting industry.

One corporate executive noted the large reservoir of local talent stating:

In Taiwan trained people work at lower levels than anywhere else. There were many trained engineers among the refugees from the mainland who were working as porters.

Most of the trained refugees had settled in Taipei. Consequently, few Americans were assigned as resident managers in Taipei and most jobs went to local residents, not American expatriates.

An in-depth look at the electronics industry will expand our understanding of the penetration of the local economy by the multinational firm and the associated impact on Taipei’s urban development.

 

The Electronics Industry

By 1968 the electrical and electronic goods industry was Taiwan’s second biggest exporter after textiles and by 1984 it overtook textiles. The two industries were quite different.

Unlike textiles, the electronics industry had no base in Taipei prior to the arrival of the multinational corporation in the 1960s. It was shaped by global forces from the very beginning. Most of its production was exported, chiefly to the United States. The industry was characterized by a few foreign-invested assemblers, most from the US, and many locally and privately owned suppliers of components to them. Thus, the industry was strongly associated with the emergence of SME’s (small and medium enterprises), which eventually became the core of Taipei’s export sector.

As previously mentioned, the electronics sector was targeted as desirable by the military which was deeply involved in efforts to solicit foreign investment, along with the assistance and advice of US AID. Their hard work brought in first General Instruments (1964) and then other companies which set up bonded export factories throughout the island.

 

Much of the US incentive came from a need to compete with the Japanese.

In 1953, a Taiwanese firm (Tatung) had signed the first ever technology agreement between a Taiwanese and a Japanese firm. The Japanese company agreed to take engineers from the Taiwan firm for training. The agreement was supported and even funded by US AID (formerly the Economic Cooperation Administration).

By the late 1950s, a number of Japanese firms began seeking local partners for electrical assembly in order to obtain lower labor costs. Seven joint ventures were formed by 1963.

In the next two years, 24 US firms entered into production agreements with the Taiwanese. In 1965, the first export-processing zone opened in Kaoshiung in the south of Taiwan. The bonded factories established by many US firms offered basically the same advantages — relatively unfettered conditions in return for exporting all of their production. The object was to cut costs by getting the labor-intensive part of semi-conductor manufacturing — connecting the wire leads and packaging — done more cheaply than was possible at home.

 

By 1966, the Taiwanese government had decided to make Taiwan into an “electronics industry center.’

A Working Group for Planning and Development of the Electronics Industry was established to assist in marketing, coordinating production with the demands of foreign buyers, procuring raw materials, training personnel, improving quality, and speeding up bureaucratic approval procedures.

In 1967 and 1968, major exhibitions were held to introduce local manufacturers and foreign investors to each other. The objective was to take what began in Taiwan as an enclave industry and use it to create an entirely new sector of parts and components makers and, eventually, assemblers of finished goods able to compete internationally. According to Thomas B. Gold:

The state was the contrapuntal partner to the market system, helping to insure that resources went into industries important for future growth and military strength — including import substitutes for use in export production, such as synthetic fibers and plastics, and new export sectors such as electronics. Multinational companies became important players in these developments, but only after the state had a well-established presence and leadership position from which it could channel their activities rather than be made subordinate to global profits.

The consumer electronics industry is a good example of a dynamic industry that the state helped initiate and guide, but otherwise did not invest in directly or tie to state enterprises. Transnational corporations (TNCs) performed this function. This is a significant departure from the state-led pattern of the 1950s and represents a clear commitment to the American promoted approach of granting increased scope for private capital, local and foreign.

In a related move, in 1965, the regime established a publicly owned China Data Processing Center to push the use of computers in local industry. In advanced electronics, public research organizations and public enterprise spinoffs were used to acquire and commercialize new technology, a strategy promoted by both the Taiwanese military and the US.

 

Taipei’s locally owned SMEs play an important role.

Electrical and electronics exports grew at a rate of 58% a year between 1966 and 1971. Foreign firms were quite important in this area.

By the 1970s, over half of foreign firms’ exports were in electronics and electrical appliances, with foreign firms accounting for 2/3 or more of total exports from this industry. It is important to note, though, that foreign-owned companies (companies where more than of the 50% equity is held by foreigners) were surprisingly small and in no way dominated the economy. In fact, they paved the way for a new cohort of entrepreneurs, mostly Taiwanese of a petit bourgeois background.

To underscore, despite the contribution of the American multinational enterprise to the birth and success of export oriented industry in Taiwan, it is important to emphasize the significance of Taipei’s locally owned SMEs. They were an integral part of the drive toward expanded export capability, becoming more crucial over the course of the 1960s.

SMEs were the essence of the new middle class in Taipei which was to become a strong force in the move toward a democratization of politics in a city where the scale of business had a large influence on party affiliation and competition.

Most of the leaders of Taipei’s largest conglomerates had strong ties with the KMT, while heads of small and medium sized businesses tended to support the opposition. This is also consistent with splits along ethnic lines, for owners of SMEs tended to be native Taiwanese rather than mainlanders.

 

By Lisa Reynolds Wolfe

 

Want to find out more about Cold War Taiwan? Well click here to the see the original article on Lisa’s Cold War Studies site and scroll down the page for a variety of other great Taiwan articles!

 

And there is even more on Taiwan by clicking here. In this article we look at the deadly Taiwan Straits Crisis.

Posted
AuthorGeorge Levrier-Jones