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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: cheryl williamson who wrote (59643)	3/20/2004 4:13:27 PM
From: QwikSand	Read Replies (1) \| Respond to of 64865

OT OT OT Re: China Yesterday I heard some Yale professor mention something interesting on the radio about America's commitment to the independence of Taiwan: we don't have any such commitment (I know that's not as credible as hearing Rush Limbaugh say it, but still...). Starting with Nixon/Kissinger and continuing on up through the present Commander In Chief, the U.S. officially embraces a "one China" policy, if you can believe that. We officially believe that it would be a good thing if Taiwan and Communist China made up and merged. The 1954 Dulles "mutual defense treaty" which provided that the U.S. will defend Taiwan against all enemies was nullified when Jimmy Carter, following up on Kissinger/Nixon's diplomatic initiatives, established relations with Beijing in January 1979. But that treaty was effectively replaced in April 1979 by the Taiwan Relations Act, still in effect, which obliges the U.S. to defend Taiwan specifically against the use of force by the PRC, even though our official policy stance is that Taiwan should allow itself to be taken over (stated in the TRA as "the future of Taiwan should be determined by peaceful means"). Wierd though it may seem, the distinction between the two positions is clear. Less clear is exactly how far things would go if the Communists started sabre-rattling in a genuinely threatening way if, for example, Taiwan amends its constitution to preclude ever becoming part of mainland China, as various Taiwanese factions want, and which would be a major slap to the face of the PRC. Any such development is a loser for the U.S. and the PRC, both of whom are naturally focused on a growing and hugely lucrative trade relationship, and neither of whom want that particular apple-cart upset by some runt island that just happens to have a democratically-elected government. There is no doubt whatever that Bush has guys over in both Chinas trying to keep a lid on it, but it might not be so easy. I hope no confrontation between the U.S. and the PRC develops, of course, but if it does, in my view it will be democratic Taiwan that gets hosed in the interest of keeping big-bucks trade between the two giants on an even keel. We'll see how committed we really are to the principles of democracy if a Sino-American showdown over Taiwan lurks behind door number 3. --QS Edit: Exclusively for the benefit of room222, Mainland China could become either a major producer, or a major consumer, or both, of SPARC chips, Opterons, SunRays, Java Rings, and Java Chopsticks. This is what will help Sun stock turn the corner. It's a Strong Buy.