Republic of China retreat to Taiwan

Jadeite cabbage from Qing Dynasty, China

It is a widely held belief that the gold brought to Taiwan were used to lay foundations for the Taiwanese economy and government.[5] After six months of the gold operation by Chiang, the New Taiwanese dollar was launched, which replaced the old Taiwanese dollar at a ratio of one to 40,000. It is believed that 800,000 taels of gold were used to stabilize the economy which had been suffering from hyperinflation since 1945.

Three of the most famous artifacts taken by Chiang are the so-called Three Treasures of the National Palace Museum: the Meat-shaped Stone, the Jadeite Cabbage, and the Mao Gong Ding.

The Meat-shaped Stone is a piece of jasper, dyed and carved to make it look like Dong po-ruo（Chinese:东坡肉, a Chinese stewed pork belly.[6]

The second of the Three Treasures is the Jadeite Cabbage. It is carved out of a natural jade stone which was half green and half white. Its size is 9.1 centimeters (3.6 in), smaller than the average human hand. Since it was carved out of natural jade, it has a lot of flaws and cracks. This makes the sculpture seem more natural, for those cracks and flaws look like the cabbage's stem and leaves.

The Mao Gong Ding of the National Palace Museum, Taipei

The Mao Gong Ding is the third of the Three Treasures. It is a bronze tripod/cauldron. It has a height of 53.8 cm (21.2 in), width of 47.9 cm (18.9 in), and a weight of 34.7 kg (77 lb). It has an inscription of 497 characters arranged in 32 lines, the longest inscription among the Ancient Chinese bronze inscriptions. It is said to date back to the Ancient Zhou Era.[7]

Chiang Kai-shek, The Man who Lost China (1952)

The 1960s saw Mao Zedong's so-called "Great Leap Forward" in mainland China lead to catastrophic famines and millions of deaths, as well as progress by the PRC towards possible development of nuclear weapons. Thus, Chiang Kai-shek saw a crisis-opportunity to launch an attack to reclaim mainland China.

At this time, the U.S. was fighting the Vietnam War. For Project National Glory to be successful Chiang Kai-shek knew he needed US military assistance. Thus he offered to help the Americans fight the Vietnam War in exchange for U.S. support conducive to take back his lost territory. The U.S. opposed and refused Chiang's suggestions. This did not stop him. Rather, Chiang went ahead with the preparations and continued to further his plan to take back their lost territory.[11]

In 1965, Chiang's plans to strike were completed. His generals and admirals planned possible dates to deploy while soldiers and field officers prepared for battle, according to the government archives.

April 1, 1961: The year witnessed the advent of the Project National Glory. The office was built by the Republic of China Armed Forces together with the Ministry of National Defense in the town of Sanxia, Taipei County (now a district in New Taipei City). Army Lieutenant General Zhu Yuancong took the role of governor and officially launched the project to compose a prudent plan of operations to recover the lost territories in mainland China. At the same time, the establishment of Project Juguan came to light whereby military members began to work out a possible alliance with American troops to attack mainland China.

April 1964: During this year, Chiang Kai-shek arranged an ensemble of air-raid shelters and five military offices at Lake Cihu (Chinese: 慈湖), which served as a secret command centre. Following the establishment of Project National Glory, several sub-plans were put into place, such as the frontal area of the enemy, rear area special warfare, surprise attack, take advantage of the counterattack, and assistance against tyranny.

However, the United States Armed Forces and the U.S. Department of Defense, together with the State Department, strongly opposed Project National Glory; rejecting the KMT plan to retake mainland China. Thus, every week American troops checked the inventory of Republic of China Marine Corps amphibious landing vehicles used by ROC and ordered American military advisory group members to fly over the Project National Glory camp on scouting missions. These flyovers infuriated Chiang Kai-Shek.

June 17, 1965: Chiang Kai-shek visited the Republic of China Military Academy to convene with all mid level and higher officers to devise and launch the counterattack.

June 24, 1965: A multitude of soldiers died during a training drill to feign a Communist attack on major naval bases in southern Taiwan near Zuoying District. The deaths that occurred during the happening were the first but not the last in Project National Glory.[9]

August 6, 1965: A People's Liberation Army Navy torpedo boat ambushed and sunk 200 soldiers as the Zhangjiang naval warship carried out assignment Tsunami Number 1, in an attempt to transport special forces to the vicinity of the Eastern mainland Chinese coastal island of Dongshan to carry out an intelligence gathering operation.

November 1965: Chiang Kai-shek ordered two other naval vessels, the CNS Shan Hai and the CNS Lin Huai to pick up injured soldiers from Taiwan's offshore islands of Magong and Wuqiu. Nonetheless, the vessels were attacked by 12 PRC ships, the Lin Huai sunk, and roughly 90 soldiers and sailors were killed in action. Surprised by the heavy loss of life in the naval battle at Magong, Chiang gave up all hope for Project National Glory.

After several unsuccessful feigned invasions between August 1971 and June 1973, in the lead up to the main landings, the 1973 coup which witnessed Nie Rongzhen's rise to power in Beijing drove Chiang to call off all further false attacks and commence full landing operations. Having said this, according to Gen Huang Chih-chung, who was an army colonel at the time and part of the planning process, Chiang Kai-shek never completely gave up the desire to recapture China; "even when he died (in 1975), he was still hoping the international situation would change and that the Communists would be wiped out one day."[9]

The failure of Chiang's Project National Glory changed the course of Chinese and Taiwanese history, forever altering China-Taiwan relations. For example, the Taiwanese “shifted the focus to modernizing and defending Taiwan instead of preparing Taiwan to take back China,” stated Andrew Yang, a political scientist specializing in Taiwan-China relations at the Taipei-based Council of Advanced Policy Studies.[9] Chiang Kai-shek's son Chiang Ching-kuo, who later succeeded him as president, focused on maintaining peace between the mainland and Taiwan. Today, political relations between Taiwan and China have changed; "I hope it will develop peacefully... There's no need for war."[9]

In August 1950, the KMT held its first Central reform Committee meeting to launch the party's reforms. (1950)

In late 1949, having been almost destroyed by the Chinese Communists, the Kuomintang relocated to Taiwan and reinvented itself. Not only did the KMT leadership build a new party, but it built a new polity on Taiwan that created economic prosperity. From August 1950 to October 1952, more than four hundred working meetings were held almost four times a week to discuss how to build a new political party and implement Nationalist government policies. On August 5, 1950, Chiang chose the Central Reform Committee (CRC) to serve as the party's core leadership for planning and acting. The CRC members were on average young with an average age of 47 and all had college degrees.[12]

The new CRC had six goals.

1. Make the KMT a revolutionary democratic party.
2. Recruit peasants, workers, youth, intellectuals, and capitalists.
3. Adhere to democratic centralism.
4. Establish the work team as the basic organizational unit.
5. Maintain high standards of leadership and obey the party's decisions,
6. Adopt Dr. Sun Yat-sen’s Three Principles of the People as the KMT's ideology.

All CRC members took an oath to fulfill the party's ultimate goals which is to get rid of the Communists and recover the Chinese mainland.[13]

Having organized a cohesive, loyal party, Chiang Kai-shek wanted to extend its influence deep into Taiwan's society in order to broaden its social base. One way to do that was to select new members from different socioeconomic groups. Various party branch members were ordered to recruit new members, especially students and teachers. New members had to show loyalty to the KMT party, understand what the party represented, obey party principles, and perform services for the party. In return, the CRC promised to pay attention to society's needs, which helped the CRC define a clear political purpose. Party policy also targeted ways to improve ordinary people's living conditions. Having new party branches made up of people of similar social status was a strategy that improved relations with workers, business leaders, farmers, intellectuals.[14] With the new party branches promoting the various groups of people, the KMT was able slowly to extend its control and influence into Taiwan's villages. By October 1952, KMT membership had reached nearly 282,000, compared to the 50,000 members who had fled to Taiwan. More significant, more than half the party members were Taiwanese. By the late 1960s, this number had risen to nearly one million.[15]

CRC made its work teams responsible for enforcing party policies and informing members how to behave. They also prevented communist infiltration, and recruited new party members after investigating their backgrounds, in order to hold regular meetings to discuss party strategy. The new party, then, behaved very differently from the way it had before 1949, with its work teams having new managerial and training responsibilities. According to the KMT's new rules, all party members had to join a work team and attend its meetings so that the party leadership could discover who was loyal and active. According to one report, in the summer of 1952, the KMT's Taiwan provincial party headquarters had at least thirty thousand work-team units in the field, each unit having at least nine members who worked in various state agencies, areas of Taiwan, and occupations.[16] Gradually, the party expanded its influence in society and in the state.

An important KMT tactic was to promote limited, local-level political reforms to enhance the party's authority with the Taiwanese people. To legitimize the Republic of China (ROC) as the central government for all China, Taiwan's Nationalist government needed elected representatives for all China. Thus, in 1947 more than one thousand mainlanders in Nanking were elected by the Chinese people as members of the National Assembly, Legislative Yuan, and the Control Yuan. After coming to Taiwan, those representatives were permitted to hold their seats until the next ROC election could be held on the mainland, thus legitimizing the ROC's control of Taiwan.[17]

In this new political environment, the reformed KMT and the ROC government were able to propose their new power. Chiang Kai-shek believed that, in this authoritarian polity, local elections could promote Taiwan's eventual democracy. People did not believe that the KMT would ever not interfere with such elections. However, having so many local elections in a year, many voters became convinced that the KMT wanted to advance political pluralism. Party leaders tried to broaden their influence, while only slowly allowing opposing politicians to compete, by giving political lessons to teach voters how democracy should work.

In January 1951, the first elections for county and city council were held. In April, other elections followed for county and municipal offices. In December 1951, the Taiwan Provisional Provincial Assembly was organized. Its members were appointed by county and municipal assemblies.[18] Through martial law and the control of local election rules, the KMT won most of those local elections but claimed that free elections had been held. Chiang believed that enough liberty had been granted. Therefore, party leaders continued to emphasize that martial law was still necessary.