A survey of Taiwan during 1962 serves to illustrate the tenacity with which the government has held to its oft-stated policy that either we exist to to the or we have no existence worth mentioning.1 In politics, the maintenance of this philosophy, although posing some problems, has been unequivocal. In economics, there are increasing indications of the strain involved in reconciling an ambitious program of economic development with the demands of the large military establishment implicit in the return to the mainland philosophy. The central fact of politics on Taiwan, the dominance of the Kuomintang Party, was not altered in 1962. Since the national legislators still purport to represent geographical areas on the mainland, new elections are not possible, and the national government has been frozen. Taiwan itself is ruled as a province. Encouragement of native Taiwanese participation in government has occurred, particularly at the local level, and when the individual is also a member of the KMT. Some non-K1\T assemblymen have been elected, but the top level of provincial control has remained firmly with the KMT. The most recent affirmation of this tie is found in the appointment of General Huang Chieh, formerly Taiwan Garrison Commander, to the influential post of Governor of Formosa. His selection may be viewed as a strengthening of KMT control, since the prior Governor, also a general, was often deemed too independent.2 While the KMT is the majority party in Taiwan, the Nationalist government does give limited encouragement and financial support to two minority parties, the Young China Party (YCP), and the Democratic Socialist Party (DSP). Members of these parties are represented in the Executive as well as the Legislative Yuan. Both parties. however, have been continually wracked by internal conflicts resulting, not only from lingering theoretical differences with the KMT, but also from attempts to control the KMT subsidies and from personality clashes among members. This dissension naturally limits what political efectiTeness these parties potentially have. In the past year the continued factionalism within thern served to justify postponement of the Third Yangminshan Forum. In 1961 the government held at Yang-minshan the first two of three projected meetings to bring about reforms and internal unity necessary to a successful campaign. Each meeting was intended to produce