Summary: An assessment of the successes and problems in the implementation of the Taiwan Relations Act was presented. Under the Taiwan Relations Act, the United States broke diplomatic relations with Taiwan but continued commercial, cultural, and other relations through nongovernmental means. An overall analysis showed that the Act is working. Although the form of U.S. relations with the people of Taiwan has changed, the substance has remained basically the same. No measurable adverse effect has been noted on commercial and cultural relations between the United States and the people of Taiwan. In fact, the Taiwan Relations Act may have actually removed much of the uncertainty that existed prior to normalization, resulting in an improved business environment and resumption of close and friendly cultural ties. However, despite these positive signs, two congressional concerns expressed during consideration of the Taiwan Relations Act remain valid. They are: (1) the degree to which the Peoples Republic of China's (PRC) reaction influences U.S. decisions; and (2) the degree of executive branch consultation with appropriate Members of Congress. Whether the executive branch is giving too much weight to the possible reaction from the PRC and the impact on future U.S.-PRC relations, is a matter of judgment. But uncertainty about the limits of PRC tolerance have contributed to the deliberateness of executive branch decisionmaking.
