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The Transformation of the Sugar Industry and Land Use Policy in Taiwan

The Transformation of the Sugar Industry and Land Use Policy in Taiwan This paper examines the relationship between the sugar industry and land use patterns in Taiwan from an extended historical perspective (1624–2008), covering the colonial era, the period of industrial development, and the island's current status as a newly industrialized country. Description and analysis of historical factors are used to provide insight into how an agricultural society copes with the pressures of development, industrialization, and urbanization, as well as the key factors pertaining to land use conversion, the land crisis, and the overall condition of rural industry. This paper focuses on the development of the sugar industry and the sugarcane plantations, and also includes an examination of the relationship between the sugar industry and nation's land use policies. By analyzing the related materials, we hope to reappraise the sustainability of current land use practices, and offer insight on how appropriate land use policies can be used to promote a new vision of urban planning and industrial heritage reuse during the course of rural industry transformation. Keywords: sugar industry; land use policy; rural industry; colonialism; Taiwan 1. Introduction human and natural environment, keeping in mind that careful consideration of the land use policies relating W h i l e s o c i a l , p o l i t i c a l a n d e c o n o m i c c h a n g e s are occurring in a developing agricultural country, to rural industry is a long-term undertaking. A review and analysis of historical documents helps f a r m l a n d i s a f f e c t e d b y b o t h u r b a n i z a t i o n a n d industrialization. This process also gives rise to certain to determine the essential historical factors, making it possible to clearly map out the transformations c h a n g e s i n t h e h u m a n e n v i r o n m e n t a n d l e a d s t o changes in land use patterns that can result in overuse of the sugar industry and the sugarcane plantations; it also offers insight into the different effects the and natural environmental degradation. The history of the sugar industry in Taiwan over the past few centuries implementation of land use policies has had on the development of the sugar industry. With respect to provides a snapshot of the overall development of the island's agricultural society, and how the sugar the period of urbanization and industrialization, the changing relationship between the sugar industry and industry played a key role in the transition from a developing country to a newly industrialized country. land use policies can be divided into four transitional stages: the asset requisition and reconstruction period Previous research on Taiwan's sugar industry has focused on preserving certain vestiges of the industry (1945–1949); the farmland expansion and readjustment p e r i o d ( 1 9 5 0 – 1 9 8 9 ) ; t h e l a n d d i v e r s i f i c a t i o n f o r t h e d e v e l o p m e n t o f i n d u s t r i a l h e r i t a g e s i t e s (historical architecture, sugar industry rail lines, and a n d t r a n s f o r m a t i o n p e r i o d ( 1 9 9 0 – 1 9 9 9 ) ; a n d t h e multifaceted land use period (2000 to the present). related facilities). This study investigates the changing historical relationship between the sugar industry and Furthermore, this research seeks to elucidate how the rural industry land policies of a developing country land use in order to shed more light on the influence of government policies on rural industry and land use need to take into account the new vision of urban planning and industrial heritage reuse. patterns. Developing countries need to anticipate the influence that changes in land use will have on both the 2. Development of the Sugar Industry in Taiwan Sugar production in Taiwan began with the Dutch *Contact Author: Szu-Yin Yen, Ph.D. Student, occupation and colonization of Taiwan in the early Department of Architecture, National Taiwan University of 17th century, and was modernized at the beginning of Science and Technology, No.43, Sec.4, Keelung Rd., the 20th century under Japanese colonial rule. Thus Taipei, 106, Taiwan, R.O.C the early sugar industry in Taiwan was closely linked Tel: + 886-2-2730-1090 Fax: + 886-2-2737-6721 to its colonial history, and the industry's fortunes have E-mail: zoe27@ms17.hinet.net been closely linked to political and economic factors ( Received October 8, 2008 ; accepted January 27, 2009 ) related to the regime changes, which took place over Journal of Asian Architecture and Building Engineering/May 2009/48 41 four centuries. Japanese economist and educator Tadao increase sugar production, including the opening of Yanaihara (1893–1961) has written: "The history of the new agricultural lands, tax exemptions, the provision sugarcane industry is the history of colonialism," (Yang, o f l a n d a n d t o o l s t o f a r m e r s , t h e i m p o r t a t i o n o f Y.Q., 2001) making explicit the close relationship laborers from mainland China, and the introduction of between colonialism and sugar production in Taiwan. oxen and improved farming techniques from southern 2.1 Sugar production during the colonial period C h i n a . T h e s u g a r i n d u s t r y p o l i c i e s o f t h e D u t c h colonial era were characterized by the promotion of 2.1.1 The legacy of colonialism A colony's economic potential inevitably attracts increased sugarcane cultivation and the continued use of traditional sugar manufacturing techniques (Fig.1.). outside investors and settlers who, due to preferential treatment by the colonial authorities, easily gain an This was the formative period in the history of the sugar industry in Taiwan, setting the stage for much of upper hand in the colony's economic and political affairs. Over the past four centuries Taiwan's sugar the industry's later development. Ming dynasty rule of Taiwan lasted from 1661 to industry has been closely linked to both of its colonial periods, and the policies of the colonial administrators 1683. Following the fall of the Ming dynasty and the establishment of the Qing dynasty, the Ming loyalist of various periods have had a marked influence on the development of Taiwan's sugar industry. The Koxinga (1624-1662) expelled the Dutch from Taiwan, turning the island into his base of operations for results of these policies have included a large supply of inexpensive labor and mass production. Thus, retaking the mainland. In need of financial resources to carry out raids on his Qing dynasty enemies, Koxinga right from the start, unlike in other countries, the sugar industry in Taiwan has always been fueled by encouraged the expansion of agricultural land and the stockpiling of grains, and also had his soldiers economic speculation, with the planting of sugarcane and the production of sugar being determined by engage in agricultural work. Koxinga's administration implemented a government monopoly on sugar, which world markets. Furthermore, the majority of sugarcane g r o w e r s w e r e c o n t r a c t f a r m e r s w h o w o u l d p l a n t was sold to Japan in exchange for copper and lead needed for the manufacture of armaments, turning sugarcane or other crops, depending on the price of sugar. the sugar industry into a key strategic resource. But political instability and natural disasters resulted in a 20% drop in sugar production compared to the Dutch period. The Qing dynasty ruled Taiwan from 1683 to 1894. Although the Qing dynasty included Taiwan in its territory it had little interest in the island's economy. During this period Taiwan was largely isolated from the outside world, and the sugar export market was l i m i t e d t o J a p a n a n d n o r t h e r n C h i n a . T h e p e r i o d beginning with Qing rule up to the second half of the 19th century saw extreme fluctuations in sugar production. American and European competition for markets in the Far East at the beginning of the 19th century led the Qing government to open China to foreign trade around 1860, resulting in a rapid increase in Taiwan's sugar production. Afterwards, natural disasters and hostilities between China and France resulted in a decrease in the price of sugar and an unprecedented drop in sugar production. During this 200-year period, despite intense fluctuations in sugar production due to political instability, the sugar industry continued to develop. Moreover, during this Fig.1. Relief Showing Traditional Sugarcane Juice Extraction period of reduced political and economic regulation, Taiwan's sugar industry became free from government 2.1.2 Political changes and sugar industry policies monopoly for the first time, resulting in a liberalized i) The first colonial period era in which sugarcane farmers set up individual or Following the Dutch colonial period, Taiwan came cooperative sugar houses (tangbu) (Fig.2.). According under the control of the Ming dynasty and then the t o t h e r e c o r d s , t h e r e w e r e 1 , 2 7 5 s u g a r h o u s e s i n Qing dynasty, the respective sugar industry policies Taiwan at the time. During the Japanese colonial of which will now be described in brief. Eager for period the sugar houses were amalgamated into private increased trade with the Orient, the Dutch established a commercial enterprises, and could thus be said to be branch of the Dutch East India Company (Vereenigde the predecessors of the Taiwan Sugar Corporation Oost-Indische Compagnie) in Taiwan. The Dutch (Taisugar). colonial period lasted from 1624 to 1661, during which ii) The second colonial period time rock sugar soon became Holland's main source The Japanese colonial era lasted for exactly half of income. The Company took a range of measures to 42 JAABE vol.8 no.1 May 2009 Chih-Ming Shih a century (1895–1945). The colonial, industrial and These measures were highly successful in encouraging commercial relationship between Taiwan and Japan was a large number of sugar merchants to invest in the largely based on political factors, and less on economic modernized sugar industry, at the same time playing factors, with the Japanese government playing the a key role in the transformation of Taiwan's sugar leading role from start to finish. At first Japan's guiding industry from rural, locally managed undertakings to principle towards its colonial possession was "industry large-scale capitalist enterprises. In order to increase for Japan, agriculture for Taiwan." During the 1930s, the quantity of sugar exports, Japan introduced the however, due to the exigencies of World War Two, latest industrial technology from the West. 1910 was this changed to "industry for Taiwan, agriculture for the beginning of the golden era for Taiwan's sugar Southeast Asia." refining factories, and by 1912 there were 29 newly- At the beginning of this period, Taiwan's sugar established factories using state-of-the-art technology industry was mostly controlled by foreign business (Fig.3.). concerns, but by the time Kodama Gentarô (1852– Taiwanese and Japanese sugar companies underwent 1906) was appointed as governor-general in 1898, a series of mergers, and in 1943 the entire sugar the development of the sugar industry was poised industry in Taiwan was in the hands of three Japanese to become a key element in Japan's plan to expand consortiums: Dainihon, Mitsui, and Mitsubishi. Further Taiwan's industrial and economic output. The colonial mergers led to Taiwan's sugar refining industry coming government used its powerful position to help Japanese under the control of four joint-stock corporations: capitalists expand the sugar industry, and following a Japan Sugar Enterprises, Taiwan, Meiji, and Yanshui Japanese victory in the Russo-Japanese war in 1905 Harbor. With the end of the Japanese colonial period many Japanese sugar manufacturing companies sprung these four companies were merged into the Taiwan up in Taiwan and were nurtured by the protection of Sugar Corporation. the colonial administration. 2.2 Development of the Taiwan Sugar Corporation O n e o f t h e f i r s t a c t s o f t h e J a p a n e s e c o l o n i a l In 1945 the ROC (Republic of China) confiscated administration was to establish the Provisional Taiwan a l l o f t h e a s s e t s o f t h e f o u r J a p a n e s e j o i n t - s t o c k Sugar Board. In 1901 agricultural economist Nitobe corporations controlling the sugar industry in Taiwan, Inazô's (1862–1933) "Suggestions for Improvements to including 42 sugar refining factories, nearly 120,000 the Sugar Industry" (Sugar Industry Corporate Society h e c t a r e s o f s u g a r c a n e f i e l d s ( F i g . 4 . ) , o v e r 3 , 0 0 0 (Japan) editor, 1962) set the pace for the reform and kilometers of railways, and 300 million Japanese yen in modernization of sugarcane farming and sugar refining capital. In 1948 the government officially reorganized in Taiwan. In the following year the Japanese colonial these assets into the Taiwan Sugar Corporation. administration began to take concrete steps to carry out Taisugar is a major state-run enterprise, and there its agricultural policies, announcing its Sugar Industry has always been a close relationship between its Incentive Regulations, which included subsidies for overall development and the political, economic and the opening of new lands for agriculture, and also social changes taking place in Taiwan. There has for making improvements to farming and production been a close relationship between the rise and fall of techniques, organizational structure, and marketing. Taiwan's sugar industry and the island's transformation The three main elements of this policy were capital from a developing country to a developed country. assistance; designating the districts from which raw The fortunes of the sugar industry have largely been materials could be obtained; and market protection. determined by two factors: international fluctuations Fig.2. Traditional Sugar House; Extracting Sugar Juice Inside the Sugar House; and Condensing Sugar Fig.3. Modern Sugar Refinery; Conveying Sugarcane by Train; and Facilities for Heating Sugarcane Juice JAABE vol.8 no.1 May 2009 Chih-Ming Shih 43 to be exported to Japan and mainland China. With greater political stability after 1950, and following several personnel reorganizations, in order to deal with fluctuations in the international sugar market, Taisugar entered the International Sugar Organization and began to actively strive for a share of the international sugar market. In 1966 Taisugar was faced with another drop in the international price of sugar, as well as the effects Huwei S. F. of industrialization and urbanization. Yet, due to the reorganization of its sugar refining factories, Taisugar continued to expand its operations. As a result, when international sugar prices surged in 1977 Taisugar's sugar production reached an all-time high of 1,069,547 metric tons. Afterwards, as the international price of sugar steadily dropped, the cost of domestic sugar Nanjing S. F. production began to exceed the international price Science Park of sugar, resulting in a greater emphasis on domestic Zongye S. F. Sugar Factory sugar sales and less emphasis on sugar exports. In 1985 sugar production was only 662,030 metric tons, Shanhua S. F. leading Taisugar to begin to pay more attention to the Sugar industry development and sales of related food products such as processed sweets. Fig.4. Distribution of Taiwan's Sugar Industry in 1937, and ii) Urbanization and industrialization Location of Three Remaining Refineries at the Present The 1990s constitute the third period of Taisugar, when Taiwan's sugar industry reached an all-time of the price of sugar; and domestic industrialization l o w. B y t h i s t i m e , t h e t r a n s f o r m a t i o n o f Ta i w a n and urbanization. The over 60 years of development of f r o m an ag ricu ltu r al to an in du s tr ial s ociety w as Taisugar can be divided into four transitional periods, largely complete. In the newly liberalized economic as shown in Table 1. The changes which took place environment, workers and farmers had much more during these four periods are closely related to the latitude to choose their occupations, and the decreasing development and use of agricultural land. price of sugar made sugarcane farming an increasingly i) International fluctuations of the price of sugar unattractive option. Add to this the mass migration During the colonial era Taiwan's sugar industry from the countryside to the cities, and it's not surprising was developed by outsiders. This had the advantage that the amount of land under sugarcane cultivation of greater access to foreign markets, and the industry was quite small by this time (Fig.6.). Faced with such c o n t i n u e d t o d e v e l o p d e s p i t e s e v e r a l p e r i o d s o f an operating crisis, Taisugar had little option but to find political instability, as shown in Fig.5. Following new ways to use its vast land holdings. Thus Taisugar restoration (the return of Taiwan to Chinese rule gradually began to close its sugar refining factories following World War Two), in response to international around the island, and today there are only three fluctuations of the price of sugar, Taisugar reorganized factories still in operation, located in Huwei, Nanjing, its production process several times and developed new and Shanhua (Fig.4.), all of which refine sugar and also products related to sugar refining. During the post-war carry out research and development. period (1945-1949) sugar factories that were damaged In 2004 Taisugar began to carry out organizational or destroyed during the war were repaired and again restructuring, resulting in the implementation of a began producing sugar, and in 1947 sugar began Fig.5. 1895–2008 Sugar Production Statistics 44 JAABE vol.8 no.1 May 2009 Chih-Ming Shih divisional organization and the establishment of eight main divisions, eight administrative departments, and three main centers. 3. Development of the Taiwan Sugar Industry Land 3.1 The Taisugar land acquisition process T h e s u g a r i n d u s t r y m o d e r n i z a t i o n c a r r i e d o u t d u r i n g t h e J a p a n e s e c o l o n i a l p e r i o d r e s u l t e d i n increased productivity, making it necessary to bring more land under sugarcane cultivation. This, in turn, raised the question of how to select and develop new land. Following restoration, the sugar industry was nationalized virtually overnight, making the lands Fig.6. 1945–2008 Area Planted with Sugarcane held by the sugar industry the largest part of state- of farmland, and also by purchasing the land of the owned lands. The income generated by Taisugar was sugar houses and sugar merchants. The result of this used to stimulate national economic development, process was that the four large sugar industry joint- and as Taiwan was striding headlong in the direction stock corporations succeeded in gaining possession of industrialization and urbanization, Taisugar lands of the lion's share of sugar industry lands. Thus the played a key role in the implementation of an array of colonial administration made use of land surveys to national construction projects. While the sugar industry acquire and develop public lands, measures which had lands underwent various transformations during the a far-reaching effect on the future direction of Taiwan's 20th century, what sort of relationship developed sugar industry lands. between the sugar industry lands and what it was iii) Conversion to public land producing? Following restoration in 1945, all of the assets of the i) Defining public lands four Japanese sugar-producing joint-stock corporations At the beginning of the Japanese colonial period the were nationalized, including 118,206 hectares of Japanese colonial government implemented a measure sugarcane fields. Afterwards, the new government of known as the Land Survey, one result of which was Taiwan carried out three land surveys. The 1960s and the abrogation of a long-standing phenomenon that 1970s were the peak years for the sugar industry, and began during the Qing dynasty known as "one field, up until the 1980s Taisugar continued to expand its two owners." (Yang, Y.Q., 2001). The results of the agricultural landholdings by bringing more land under Land Survey provided a basis for the expansion of cultivation and carrying out mergers. When the sugar public lands, and this had a major influence on the factories began to close in the 1990s, this agricultural ability of Japanese entrepreneurs to gain hegemony in land became Taisugar's most important usable asset, Taiwan's sugar industry. In 1898 Taiwan's governor- much of which was used by the government to carry general announced the Taiwan Cadastral Regulations out its national development plans. Faced with the and later in the same year established the Provisional steady decline of the sugar industry, and in accordance Taiwan Land Survey Department, which systematically with national policy, Taisugar's farmland began to be carried out surveys and mapping over a period of seven converted from agriculture to construction. years. Promulgated in 1904, the Large Tenant Rights 3.2 Changing uses of sugarcane plantations Arrangement resulted in the purchase of all tenant I n a c c o r d a n c e w i t h Ta i s u g a r p o l i c y c h a n g e s rights, compensating large tenants with government regarding land use and development, the post-war b o n d s . A f t e r w a r d s , i n o r d e r t o e l i m i n a t e f a l l o w period can be divided into four transitional stages: farmland and the "one field, two owners" system, land the asset requisition and reconstruction period (1945 ownership rights were simplified, and land surveys –1949); the farmland expansion and readjustment were used to acquire large tracts of state-owned land p e r i o d ( 1 9 5 0 – 1 9 8 9 ) ; t h e l a n d d i v e r s i f i c a t i o n for the purpose of development. a n d t r a n s f o r m a t i o n p e r i o d ( 1 9 9 0 – 1 9 9 9 ) ; a n d t h e ii) The expansion of privately owned sugar multifaceted land use period (2000 to the present). industry land During the first three periods there was a very close I n 1 9 0 2 t h e J a p a n e s e c o l o n i a l a d m i n i s t r a t i o n relationship between Taisugar's land use policy and a n n o u n c e d i t s Ta i w a n S u g a r I n d u s t r y I n c e n t i v e s the volume of sugar production, but in the fourth Regulations. These Regulations also allowed for the period Taisugar's land use and new undertakings transfer to Japanese sugar enterprises of land partially have been increasingly influenced by the larger social owned by government, including the land on which environment. The land area, sugar production volume, sugar factories were located, sugar company farms, business activities, and land use types of each period and villages in which Japanese immigrants resided. In appear in Table 1., and are described in the following order to carry out its plans for the modernization of the section. sugar industry, the Japanese colonial administration Period I: the asset requisition and had to first secure sufficient land for growing sugarcane reconstruction period (1945–1949) and refining sugar. At that time large Japanese sugar Many sugarcane plantations fell into disuse during companies acquired huge tracts of land, mostly due Wo r l d Wa r Tw o w h e n t h e s u g a r r e f i n e r i e s w h i c h to generous government subsidies for the expansion JAABE vol.8 no.1 May 2009 Chih-Ming Shih 45 m a n a g e d t h e m w e r e s e v e r e l y d a m a g e d b y A l l i e d and 1980, during the same period, in order to maintain bombing raids. Thus in 1946 and 1947 there were only enough sugarcane fields for sugar production, it also 32,937 hectares of sugarcane fields under cultivation, expropriated land at no cost and brought unused land and only 30,883 metric tons of sugar were produced. under cultivation. Besides, in response to numerous Accordingly, during the first few years foll owing fluctuations in the international price of sugar, Taisugar retrocession, the ROC government made a concerted began to diversify by deveolping some of its land into effort to rehabilitate sugar industry facilities, at the completely self-managed livestock farms, marking a same time conducting a cadastral survey. significant change in the company's management style. Period II: the farmland expansion and Taisugar benefitted from land use and development readjustment period (1950–1989) in two main ways. Firstly, the government's urban land During this key period of far-reaching social change readjustment policies gave Taisugar the opportunity to and rapid economic development, the substantial allot land for construction purposes. Secondly, under wealth of Taisugar became a financial basis for the the expansion of land area measures, Taisugar obtained government to carry out its development policies. Due unused land free of charge, while the government to an increasingly close relationship between land, c o n t i n u e d t o r e g a r d Ta i s u g a r a s a n a g r i c u l t u r a l on the one hand, and social change and government concern. Moreover, the favorable measures which policy, on the other, and in view of the fact Taisugar allowed the use of land adjacent to farms to carry out l a n d s w e r e t h e l a rg e s t a m o n g s t a l l t h e s t a t e - r u n sales expanded the area and facilities of Taisugar's self- industries, Taisugar was required to relinquish large managed farms. Finally, the comprehensive farmland amounts of land in accordance with government policy. surveys carried out between 1986 and 1989 were of Even though Taisugar lost much land between 1960 major importance to the transition to the following Table 1. Taisugar's Four Transitional Stages Statistics Transformation Planned Sugar Business Land Use Year Area Production Activity Policy (hectares) (metric tons) 78,489 86,074 1.Expropriation of Japanese assets, including 42 1. Nationalization of Japanese sugar industry land 32,937 30,883 sugar refining factories 2. Implementation of cadastral surveys 2.Four Japanese sugar joint-stock corporations 3. Expansion of area under sugarcane cultivation 1945–49 85,055 263,597 merged to create the state-run Taiwan Sugar 120,289 631,346 Corporation 118,452 612,332 78,812 350,761 1.Organizational restructuring 1.Comprehensive land surveys carried out in 1953, 1966, 2.Entry into the International Sugar Organization and 1986–1989 108,522 882,141 3 . C l o s u r e o f n i n e u n p r o f i t a b l e s u g a r r e f i n i n g 2.Transfer of 60,000 ha. between 1953 and 1973 in 1950s 76,312 733,160 factories accordance with government policy 94,110 832,749 4. Sugar factory enlargement and consolidation 3.Self-administered land readjustment: 96,242 939,862 5 . D e v e l o p m e n t o f s u b s i d i a r y p r o d u c t s a n d a) 1963–1968: government coordinated farmland enterprises readjustment 97,245 924,313 1 . O rg a n i z a t i o n a l r e s t r u c t u r i n g a n d p e r s o n n e l b) 1960 onwards: government coordinated urban land downsizing readjustment 90,799 752,342 2.Closure of 3 unprofitable sugar refineries 4 . U r b a n f a c t o r y s i t e l a n d r e a d j u s t m e n t : f r o m 1 9 7 6 106,452 1,005,547 1960s 3.Sugar refinery expansion and consolidation onwards, self-construction and sales of high-density 86,791 751,720 4 . D e v e l o p m e n t o f s u b s i d i a r y p r o d u c t s a n d housing units 90,295 735,642 enterprises 5 . 1 9 6 0 s t o 1 9 8 0 s : f a r m e x p a n s i o n a n d r e c l a m a t i o n 5.Increasing production by self-managed farm plan amounts to 8,412 ha. (including over 3,000 ha. acquired without consideration, and 4,071 ha. of farmland 86,817 797,141 1.Merger of sugar refineries and dealing with idle purchased) 95,227 744,824 assets 6.1985: measures enacted for the sale of land owned by 2.Increasing sugar quality 1970s 96.041 715,823 state-run agricultural units 3.Expansion of pig farms and pork exports 113,455 1,069,547 7.1986: Taisugar is allowed to develop land for tourism 4.Adjusting processed food subsidiaries 102,626 845,138 and provide land for construction in accordance with 1.Streamlining of sugar refinery organizational urban planning structure 8.1989: approbation of state-run enterprise land for 100,756 727,716 2.Closure of 2 sugar refineries construction 86,030 621,048 3.Reduction of agricultural subsidiaries and animal 1980s 9.1989: approbation of state-run enterprise land for sale 80,827 662,030 husbandry in accordance with national development plan 62,536 479,200 4.Development and marketing of processed sweets 66,034 617,573 5.Development of flower and vegetable farms 1.Establishment of the Land Development Agency 1 . P r o v i s i o n o f l a rg e t r a c t s o f l a n d f o r g o v e r n m e n t 2.12 sugar refineries closed construction projects, including transportation facilities, 3.Addition of enterprises unrelated to sugar or city parks, industrial parks, new cities and towns, new agriculture (construction, industry, commerce, residential areas, zone expropriation, and workers 59,715 409,093 and tourism) dormitories. 61,632 476,891 2.1985-1995: Land sales (425 ha.) and expropriation (2,398 ha.) 59,967 398,990 3.Government requests comprehensive plan for sugar 59,823 467,783 1990s factory land; in 1995 the land of closed factories begins 57,809 408,093 to be used for other purposes 4.1996: 10,400 ha. of land made available for public 51,951 391,544 investment 47,497 347,683 5.1991: 6-year national construction plan uses zone expropriation to convert farmland into construction 44,413 311,699 land 39,605 276,409 6.1993: government sets in motion its new development program, including leasing land held by state-run 36,350 250,824 industries and the establishment of the Superficies Act 1.Closure of 7 sugar refineries, leaving only 3 sugar 1.Land development: refineries in operation s e l f - c o n s t r u c t i o n , j o i n t c o n s t r u c t i o n , c o n t r a c t 31,516 189,095 2.organizational restructuring into eight divisions: development, factory site development, and student 23,022 151,043 2000–08 granulated sugar, hypermarkets, biotechnology, dormitories 10,858 75,439 specialty crops, animal husbandry, oil products, 2.Farmland management: 9,941 63,142 recreation, and merchandising. sugarcane tracts, high-value crop tracts, sightseeing forests, flatland reforestation 9,966 58,858 3.Industrial heritage redevelopment and preservation 46 JAABE vol.8 no.1 May 2009 Chih-Ming Shih Period IV Period III Period II Period I (2000- 2007) (1990- 1999) (1950-1989) (1945-1949) period of multifaceted management. to the changing fortunes of the sugar industry. Greater Period III: The land diversification and awareness of environmental issues and the importance transformation period (1990–1999) of preserving industrial heritage sites make it clear The 1990s were a period of gradual decline for the that any plans for the future of the sugar industry land Taiwan sugar industry. In the past, however, Taisugar must take into consideration the interrelated factors of land was regarded as primarily agricultural, and despite economic production, social needs, and ecology. The the land sales and uses of the previous period, Taisugar four main themes which emerge from the research on was still bound to the land use regulations of state-run the relevant historical documents are as follows: enterprises which stipulated that its land continued to i) The influence of national policy on rural industry be used primarily for agriculture. Still, in accordance Many of the features of the history of the Taiwan with its goal of land use diversification, the government s u g a r i n d u s t r y a r e h e l d i n c o m m o n w i t h o t h e r s u c c e s s i v e l y a m e n d e d i t s r e g u l a t i o n s r e g a r d i n g developing agricultural countries, largely because state-run enterprise land use and sales, prompting i n t h e p r o c e s s o f d e v e l o p m e n t a n d u r b a n i z a t i o n Taisugar to officially establish its Land Development they inevitably face the issues of the decline of rural Department in 1990 and to begin to actively expand its industry and land use and redevelopment. Over the land development activities. past decade, even though the price of Taisugar land Much of the Taisugar farmland that was used for has been set at the market value for rural land in g o v e r n m e n t c o n s t r u c t i o n p r o j e c t s w a s g r a d u a l l y accordance with government large-scale construction converted into non-agricultural land, in line with policy, foreign investors have been interested in the Taisugar's land diversification plan. Thus, over a period land for development opportunities. It's important to of ten years, as its sugar refining factories across the recognize the way in which rural industry is affected by island began to close, Taisugar's profit base gradually changes in the social and economic structure, and what shifted from the export of granulated sugar to the sort of industrial and land policies can be implemented development of non-agricultural land. Afterwards, to curb the decline of rural industry. The diversification Taisugar made a concerted effort to find ways to turn of national land development policies is a crucial its land assets into its main source of income and basis factor. In light of the particular history of Taisugar and for transformation. the sustainable development trend, the Taisugar land Period IV: the multifaceted land use period should be used not only for new construction projects, (2000 to the present) but also in a way which gives due consideration to At the turn of the century, Taisugar was still in the the revitalization of rural industry and culture. The midst the changes brought on by factory closures promotion of specialty crops, organic farming and a and land diversification. By the time market reforms variety of leisure farms will all help to invigorate rural r e l a t e d t o Ta i w a n ' s e n t r y i n t o t h e W TO a l l o w e d industry and agricultural villages. the importation of granulated sugar, Taisugar was ii) Sustainable productivity of industry land compelled to face three major global issues of the 21st T h e s u g a r i n d u s t r y h a s p l a y e d a n e x t r e m e l y century: industrial heritage preservation, agricultural important role in Taiwan's development, and Taisugar's diversification, and ecological protection. l a n d h o l d i n g s c o n t i n u e t o e x e r t a n i n f l u e n c e o n Despite its exit from the international sugar export the nation's future. The present challenge for the m a r k e t , d u e t o i t s p o s s e s s i o n o f a r i c h a r r a y o f government is how to break free from its traditional historical and cultural assets left behind by the previous reliance on the wealth of the sugar industry, and instead century of sugar production in Taiwan, Taisugar is in begin to promote the sustainable production capacity an ideal position to enter the new world-wide trend of sugar industry assets. of industrial heritage preservation. Moreover, global T h e S h a n h u a S u g a r F a c t o r y i n Ta i n a n C o u n t y agricultural development policies are shifting towards can be taken as an example (Fig.4.). One of the last the promotion of diversity and specialty agriculture, three sugar refineries still in operation in Taiwan, it is and environmental and agricultural sustainability. As situated near farmland, several small towns, and idle a result, and since its three main industries—sugar, sugar-production facilities. In accordance with the animal husbandry, and processed foods—were already government's six-year development policy, beginning in a state of decline, Taisugar has begun to consider the i n t h e 1 9 9 0 s t h i s i d l e f a r m l a n d h a s b e e n u s e d t o potential of specialty agriculture. Thus in recent years, develop a new science park, creating a high-tech hub apart from 15,000 hectares under sugarcane cultivation, situated in between the stagnating villages of Southern all of Taisugar's arable land has been converted to Taiwan and the already-developed modern cities. At high-value commercial crops, nurseries open to the the same time, due to the increasing influence of the public, and reforestation land in accordance with a culture and creativity industry over the last decade, flatland afforestation project expanded by the Ministry the nearby sugar industry relics are being transformed of Agriculture 1996. into cultural heritage sites. One such site is the Zongye Sugar Refinery. Established in 1911, this factory was 4. Discussion formerly the general headquarters of the Meiji period From the foregoing it can clearly be seen that during sugar-refining joint-stock corporation to which the the 400-year history of sugar production in Taiwan, the Shanhua Sugar Refinery belonged. Its Japanese-style value of the sugar industry land has been closely tied architecture has already been designated as having JAABE vol.8 no.1 May 2009 Chih-Ming Shih 47 historic value and is currently undergoing restoration. conversion. The results of this research show that the Seeking to implement a concrete example of how transformations of rural industry and land use are long- to create an industrial heritage site, in recent years term phenomena. the government's cultural department and a nearby In the past, the land use policies of Taiwan's sugar university of the arts have been actively promoting the industry were based on the vicissitudes and exigencies revitalization of neglected farming villages through of the sugar market. A reorientation of the value of a combination of art events and community building. the sugar industry land based on the considerations By making use of the methods of the culture and of culture, history, and ecology needs to take into creative industry, the industrial heritage of this site has account the following three factors: 1) Social life. been transformed in such a way to provide historical Revitalization of farming villages can be carried out retrospect and promote the sustainable production through the construction of new residential areas and capacity of the sugar industry land. the redevelopment of traditional villages. Historical iii) Ecological sustainability industrial architecture needs to be preserved to bear During the course of its development, Taiwan's sugar witness to history, and can also be used as a place for industry has repeatedly felt the impact of political art and cultural activities. 2) Economic productivity. changes and fluctuations in the international price of Idle land can be developed into ecological science sugar. Yet it's important not to overlook the vitality of parks, and monoculture farms can be transformed the island's natural environment. The 400-year history into organic farms cultivating a variety of crops. 3) of Taiwan's sugar industry demonstrates that the growth Ecology. Many of the vast land holdings of Taisugar capacity of the land has given rise to various regional can be converted into ecology parks to promote the political and economic effects. While mass production rejuvenation of Taiwan's endangered wildlife. Based has brought certain benefits to society, it is also clear on ecological awareness, productivity can be brought that the excessive exploitation of natural resources into a sustainable relationship with all aspects of life. which comes with mass production is exacting a severe toll on the natural environment, making many people Acknowledgments reevaluate land use and development policies. The authors express their appreciation to the Taiwan The preservation and reuse of industrial heritage Sugar Research Institute for providing documents and sites creates a cultural space where urban and rural photos. Ta i w a n e s e c a n i n t e r a c t . T h e 4 0 0 - y e a r c u l t u r a l landscape provided by Taiwan's sugar industry creates References 1) Chang, C.Y. and Chiou, S.C. (2007) Environmental Sustainability a fertile environment for the integration of ecology and and the Rebirth of a Cultural Heritage: A Case Study of the Old art. The future development of the Taisugar land is not Neihu Quarry in Taipei, Taiwan. Journal of Asian Architectural merely a matter of economics, agricultural productivity, and Building Engineering 6 (1), pp.17-24. or the market value of land. Rather, what needs to be 2) Chen, Min-Yen (2007) The Taiwan Sugar Industry. Taipei: Walkers adopted is a more holistic view which includes the Publishing. 3) Chen, Y.F. (1994) Nanying Industry, Tainan County: Tainan long-term quality of life, as well as productive and County Culture Center, pp.285-315. ecological sustainability. 4) Information Department Taiwan Sugar Corporation (2001) T.S.C iv) Industrial heritage and urban planning Sugar Statistics: Corp. Records of Cane and Sugar in 2000-2001, Based on the Land Survey of the Japanese colonial No. 53, pp.19/135. 5) Information Department Taiwan Sugar Corporation (2002) T.S.C period, the Japanese applied the community design Sugar Statistics: Corp. Records of Cane and Sugar in 2001-2002, concept to carry out a comprehensive plan for the No. 54, pp.11/135. sugar factory lands. The abundant resources of the 6) Information Department Taiwan Sugar Corporation (2000) T.S.C s u g a r i n d u s t r y e s t a t e s p r o v i d e d t h e b a s i s f o r t h e Sugar Statistics: Corp. Records of Cane and Sugar in 1999-2000, establishment of new towns in the adjoining areas, as No. 52, pp.11/135. 7) Sugar Corporation (2006) Celebrating Sixty years of Taisugar. well as the increased prosperity of the nearby farming 8) Sugar Industry Corporate Society (Japan) editor, (1962), translated villages. by Culture Association of Taiwan Sugar Industry, (2007). A An example of a successful industrial heritage reuse History of the Sugar Industry in Modern Japan. Kaohsiung: The is the Ruhrgebiet Industrial Heritage Trail in Germany. Society of Sugar Cane Technologists of The Republic of China. In Taiwan the sugar industry has a long history, covers 9) Taiwan Sugar Corporation (1986) Forty years of Taisugar. 10) Taiwan Sugar Corporation (1996) Fifty years of Taisugar. a vast area, and has been highly influential. Moreover, 11) Taiwan Sugar Corporation (1991) The Early Years of the Taiwan the sugar industry estates are a treasure store of culture, Sugar Industry: A History. historical architecture, industrial heritage, and natural 12) Taiwan Sugar Corporation (1958) Taiwan Sugar Statistics, landscapes. Thus the challenge for Taisugar is how to pp.9/61/99. make optimal use of the industrial heritage potential of 13) Taiwan Sugar Corporation (1969) Taiwan Sugar Statistics, pp.9/65. 14) Taiwan Sugar Corporation (1979) Taiwan Sugar Statistics, pp.9/51. its vast land holdings to create a new model for urban 15) Taiwan Sugar Corporation (1989-99) Taiwan Sugar Statistics, planning. pp.9/55. 16) Tu, S.C. (1997). Sugar Production in Yanshui. Tainan County: 5. Conclusion Tainan County Culture Center. This research has taken a long-range historical 17) Yang, Y.Q. (2001) Story of Taiwan Cane Sugar. Taipei: Owl Books 18) You, Q.Z. (2005) Research on the Development of Taiwan's approach to examine the use and development of Industry and Foreign Trade (1897~1942). Taipei: Daoxiang Publishing. sugar industry land during the process of industrial 48 JAABE vol.8 no.1 May 2009 Chih-Ming Shih http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Asian Architecture and Building Engineering Taylor & Francis

The Transformation of the Sugar Industry and Land Use Policy in Taiwan

The Transformation of the Sugar Industry and Land Use Policy in Taiwan

Abstract

AbstractThis paper examines the relationship between the sugar industry and land use patterns in Taiwan from an extended historical perspective (1624–2008), covering the colonial era, the period of industrial development, and the island's current status as a newly industrialized country. Description and analysis of historical factors are used to provide insight into how an agricultural society copes with the pressures of development, industrialization, and urbanization, as well as...
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Taylor & Francis
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© 2018 Architectural Institute of Japan
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1347-2852
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1346-7581
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10.3130/jaabe.8.41
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Abstract

This paper examines the relationship between the sugar industry and land use patterns in Taiwan from an extended historical perspective (1624–2008), covering the colonial era, the period of industrial development, and the island's current status as a newly industrialized country. Description and analysis of historical factors are used to provide insight into how an agricultural society copes with the pressures of development, industrialization, and urbanization, as well as the key factors pertaining to land use conversion, the land crisis, and the overall condition of rural industry. This paper focuses on the development of the sugar industry and the sugarcane plantations, and also includes an examination of the relationship between the sugar industry and nation's land use policies. By analyzing the related materials, we hope to reappraise the sustainability of current land use practices, and offer insight on how appropriate land use policies can be used to promote a new vision of urban planning and industrial heritage reuse during the course of rural industry transformation. Keywords: sugar industry; land use policy; rural industry; colonialism; Taiwan 1. Introduction human and natural environment, keeping in mind that careful consideration of the land use policies relating W h i l e s o c i a l , p o l i t i c a l a n d e c o n o m i c c h a n g e s are occurring in a developing agricultural country, to rural industry is a long-term undertaking. A review and analysis of historical documents helps f a r m l a n d i s a f f e c t e d b y b o t h u r b a n i z a t i o n a n d industrialization. This process also gives rise to certain to determine the essential historical factors, making it possible to clearly map out the transformations c h a n g e s i n t h e h u m a n e n v i r o n m e n t a n d l e a d s t o changes in land use patterns that can result in overuse of the sugar industry and the sugarcane plantations; it also offers insight into the different effects the and natural environmental degradation. The history of the sugar industry in Taiwan over the past few centuries implementation of land use policies has had on the development of the sugar industry. With respect to provides a snapshot of the overall development of the island's agricultural society, and how the sugar the period of urbanization and industrialization, the changing relationship between the sugar industry and industry played a key role in the transition from a developing country to a newly industrialized country. land use policies can be divided into four transitional stages: the asset requisition and reconstruction period Previous research on Taiwan's sugar industry has focused on preserving certain vestiges of the industry (1945–1949); the farmland expansion and readjustment p e r i o d ( 1 9 5 0 – 1 9 8 9 ) ; t h e l a n d d i v e r s i f i c a t i o n f o r t h e d e v e l o p m e n t o f i n d u s t r i a l h e r i t a g e s i t e s (historical architecture, sugar industry rail lines, and a n d t r a n s f o r m a t i o n p e r i o d ( 1 9 9 0 – 1 9 9 9 ) ; a n d t h e multifaceted land use period (2000 to the present). related facilities). This study investigates the changing historical relationship between the sugar industry and Furthermore, this research seeks to elucidate how the rural industry land policies of a developing country land use in order to shed more light on the influence of government policies on rural industry and land use need to take into account the new vision of urban planning and industrial heritage reuse. patterns. Developing countries need to anticipate the influence that changes in land use will have on both the 2. Development of the Sugar Industry in Taiwan Sugar production in Taiwan began with the Dutch *Contact Author: Szu-Yin Yen, Ph.D. Student, occupation and colonization of Taiwan in the early Department of Architecture, National Taiwan University of 17th century, and was modernized at the beginning of Science and Technology, No.43, Sec.4, Keelung Rd., the 20th century under Japanese colonial rule. Thus Taipei, 106, Taiwan, R.O.C the early sugar industry in Taiwan was closely linked Tel: + 886-2-2730-1090 Fax: + 886-2-2737-6721 to its colonial history, and the industry's fortunes have E-mail: zoe27@ms17.hinet.net been closely linked to political and economic factors ( Received October 8, 2008 ; accepted January 27, 2009 ) related to the regime changes, which took place over Journal of Asian Architecture and Building Engineering/May 2009/48 41 four centuries. Japanese economist and educator Tadao increase sugar production, including the opening of Yanaihara (1893–1961) has written: "The history of the new agricultural lands, tax exemptions, the provision sugarcane industry is the history of colonialism," (Yang, o f l a n d a n d t o o l s t o f a r m e r s , t h e i m p o r t a t i o n o f Y.Q., 2001) making explicit the close relationship laborers from mainland China, and the introduction of between colonialism and sugar production in Taiwan. oxen and improved farming techniques from southern 2.1 Sugar production during the colonial period C h i n a . T h e s u g a r i n d u s t r y p o l i c i e s o f t h e D u t c h colonial era were characterized by the promotion of 2.1.1 The legacy of colonialism A colony's economic potential inevitably attracts increased sugarcane cultivation and the continued use of traditional sugar manufacturing techniques (Fig.1.). outside investors and settlers who, due to preferential treatment by the colonial authorities, easily gain an This was the formative period in the history of the sugar industry in Taiwan, setting the stage for much of upper hand in the colony's economic and political affairs. Over the past four centuries Taiwan's sugar the industry's later development. Ming dynasty rule of Taiwan lasted from 1661 to industry has been closely linked to both of its colonial periods, and the policies of the colonial administrators 1683. Following the fall of the Ming dynasty and the establishment of the Qing dynasty, the Ming loyalist of various periods have had a marked influence on the development of Taiwan's sugar industry. The Koxinga (1624-1662) expelled the Dutch from Taiwan, turning the island into his base of operations for results of these policies have included a large supply of inexpensive labor and mass production. Thus, retaking the mainland. In need of financial resources to carry out raids on his Qing dynasty enemies, Koxinga right from the start, unlike in other countries, the sugar industry in Taiwan has always been fueled by encouraged the expansion of agricultural land and the stockpiling of grains, and also had his soldiers economic speculation, with the planting of sugarcane and the production of sugar being determined by engage in agricultural work. Koxinga's administration implemented a government monopoly on sugar, which world markets. Furthermore, the majority of sugarcane g r o w e r s w e r e c o n t r a c t f a r m e r s w h o w o u l d p l a n t was sold to Japan in exchange for copper and lead needed for the manufacture of armaments, turning sugarcane or other crops, depending on the price of sugar. the sugar industry into a key strategic resource. But political instability and natural disasters resulted in a 20% drop in sugar production compared to the Dutch period. The Qing dynasty ruled Taiwan from 1683 to 1894. Although the Qing dynasty included Taiwan in its territory it had little interest in the island's economy. During this period Taiwan was largely isolated from the outside world, and the sugar export market was l i m i t e d t o J a p a n a n d n o r t h e r n C h i n a . T h e p e r i o d beginning with Qing rule up to the second half of the 19th century saw extreme fluctuations in sugar production. American and European competition for markets in the Far East at the beginning of the 19th century led the Qing government to open China to foreign trade around 1860, resulting in a rapid increase in Taiwan's sugar production. Afterwards, natural disasters and hostilities between China and France resulted in a decrease in the price of sugar and an unprecedented drop in sugar production. During this 200-year period, despite intense fluctuations in sugar production due to political instability, the sugar industry continued to develop. Moreover, during this Fig.1. Relief Showing Traditional Sugarcane Juice Extraction period of reduced political and economic regulation, Taiwan's sugar industry became free from government 2.1.2 Political changes and sugar industry policies monopoly for the first time, resulting in a liberalized i) The first colonial period era in which sugarcane farmers set up individual or Following the Dutch colonial period, Taiwan came cooperative sugar houses (tangbu) (Fig.2.). According under the control of the Ming dynasty and then the t o t h e r e c o r d s , t h e r e w e r e 1 , 2 7 5 s u g a r h o u s e s i n Qing dynasty, the respective sugar industry policies Taiwan at the time. During the Japanese colonial of which will now be described in brief. Eager for period the sugar houses were amalgamated into private increased trade with the Orient, the Dutch established a commercial enterprises, and could thus be said to be branch of the Dutch East India Company (Vereenigde the predecessors of the Taiwan Sugar Corporation Oost-Indische Compagnie) in Taiwan. The Dutch (Taisugar). colonial period lasted from 1624 to 1661, during which ii) The second colonial period time rock sugar soon became Holland's main source The Japanese colonial era lasted for exactly half of income. The Company took a range of measures to 42 JAABE vol.8 no.1 May 2009 Chih-Ming Shih a century (1895–1945). The colonial, industrial and These measures were highly successful in encouraging commercial relationship between Taiwan and Japan was a large number of sugar merchants to invest in the largely based on political factors, and less on economic modernized sugar industry, at the same time playing factors, with the Japanese government playing the a key role in the transformation of Taiwan's sugar leading role from start to finish. At first Japan's guiding industry from rural, locally managed undertakings to principle towards its colonial possession was "industry large-scale capitalist enterprises. In order to increase for Japan, agriculture for Taiwan." During the 1930s, the quantity of sugar exports, Japan introduced the however, due to the exigencies of World War Two, latest industrial technology from the West. 1910 was this changed to "industry for Taiwan, agriculture for the beginning of the golden era for Taiwan's sugar Southeast Asia." refining factories, and by 1912 there were 29 newly- At the beginning of this period, Taiwan's sugar established factories using state-of-the-art technology industry was mostly controlled by foreign business (Fig.3.). concerns, but by the time Kodama Gentarô (1852– Taiwanese and Japanese sugar companies underwent 1906) was appointed as governor-general in 1898, a series of mergers, and in 1943 the entire sugar the development of the sugar industry was poised industry in Taiwan was in the hands of three Japanese to become a key element in Japan's plan to expand consortiums: Dainihon, Mitsui, and Mitsubishi. Further Taiwan's industrial and economic output. The colonial mergers led to Taiwan's sugar refining industry coming government used its powerful position to help Japanese under the control of four joint-stock corporations: capitalists expand the sugar industry, and following a Japan Sugar Enterprises, Taiwan, Meiji, and Yanshui Japanese victory in the Russo-Japanese war in 1905 Harbor. With the end of the Japanese colonial period many Japanese sugar manufacturing companies sprung these four companies were merged into the Taiwan up in Taiwan and were nurtured by the protection of Sugar Corporation. the colonial administration. 2.2 Development of the Taiwan Sugar Corporation O n e o f t h e f i r s t a c t s o f t h e J a p a n e s e c o l o n i a l In 1945 the ROC (Republic of China) confiscated administration was to establish the Provisional Taiwan a l l o f t h e a s s e t s o f t h e f o u r J a p a n e s e j o i n t - s t o c k Sugar Board. In 1901 agricultural economist Nitobe corporations controlling the sugar industry in Taiwan, Inazô's (1862–1933) "Suggestions for Improvements to including 42 sugar refining factories, nearly 120,000 the Sugar Industry" (Sugar Industry Corporate Society h e c t a r e s o f s u g a r c a n e f i e l d s ( F i g . 4 . ) , o v e r 3 , 0 0 0 (Japan) editor, 1962) set the pace for the reform and kilometers of railways, and 300 million Japanese yen in modernization of sugarcane farming and sugar refining capital. In 1948 the government officially reorganized in Taiwan. In the following year the Japanese colonial these assets into the Taiwan Sugar Corporation. administration began to take concrete steps to carry out Taisugar is a major state-run enterprise, and there its agricultural policies, announcing its Sugar Industry has always been a close relationship between its Incentive Regulations, which included subsidies for overall development and the political, economic and the opening of new lands for agriculture, and also social changes taking place in Taiwan. There has for making improvements to farming and production been a close relationship between the rise and fall of techniques, organizational structure, and marketing. Taiwan's sugar industry and the island's transformation The three main elements of this policy were capital from a developing country to a developed country. assistance; designating the districts from which raw The fortunes of the sugar industry have largely been materials could be obtained; and market protection. determined by two factors: international fluctuations Fig.2. Traditional Sugar House; Extracting Sugar Juice Inside the Sugar House; and Condensing Sugar Fig.3. Modern Sugar Refinery; Conveying Sugarcane by Train; and Facilities for Heating Sugarcane Juice JAABE vol.8 no.1 May 2009 Chih-Ming Shih 43 to be exported to Japan and mainland China. With greater political stability after 1950, and following several personnel reorganizations, in order to deal with fluctuations in the international sugar market, Taisugar entered the International Sugar Organization and began to actively strive for a share of the international sugar market. In 1966 Taisugar was faced with another drop in the international price of sugar, as well as the effects Huwei S. F. of industrialization and urbanization. Yet, due to the reorganization of its sugar refining factories, Taisugar continued to expand its operations. As a result, when international sugar prices surged in 1977 Taisugar's sugar production reached an all-time high of 1,069,547 metric tons. Afterwards, as the international price of sugar steadily dropped, the cost of domestic sugar Nanjing S. F. production began to exceed the international price Science Park of sugar, resulting in a greater emphasis on domestic Zongye S. F. Sugar Factory sugar sales and less emphasis on sugar exports. In 1985 sugar production was only 662,030 metric tons, Shanhua S. F. leading Taisugar to begin to pay more attention to the Sugar industry development and sales of related food products such as processed sweets. Fig.4. Distribution of Taiwan's Sugar Industry in 1937, and ii) Urbanization and industrialization Location of Three Remaining Refineries at the Present The 1990s constitute the third period of Taisugar, when Taiwan's sugar industry reached an all-time of the price of sugar; and domestic industrialization l o w. B y t h i s t i m e , t h e t r a n s f o r m a t i o n o f Ta i w a n and urbanization. The over 60 years of development of f r o m an ag ricu ltu r al to an in du s tr ial s ociety w as Taisugar can be divided into four transitional periods, largely complete. In the newly liberalized economic as shown in Table 1. The changes which took place environment, workers and farmers had much more during these four periods are closely related to the latitude to choose their occupations, and the decreasing development and use of agricultural land. price of sugar made sugarcane farming an increasingly i) International fluctuations of the price of sugar unattractive option. Add to this the mass migration During the colonial era Taiwan's sugar industry from the countryside to the cities, and it's not surprising was developed by outsiders. This had the advantage that the amount of land under sugarcane cultivation of greater access to foreign markets, and the industry was quite small by this time (Fig.6.). Faced with such c o n t i n u e d t o d e v e l o p d e s p i t e s e v e r a l p e r i o d s o f an operating crisis, Taisugar had little option but to find political instability, as shown in Fig.5. Following new ways to use its vast land holdings. Thus Taisugar restoration (the return of Taiwan to Chinese rule gradually began to close its sugar refining factories following World War Two), in response to international around the island, and today there are only three fluctuations of the price of sugar, Taisugar reorganized factories still in operation, located in Huwei, Nanjing, its production process several times and developed new and Shanhua (Fig.4.), all of which refine sugar and also products related to sugar refining. During the post-war carry out research and development. period (1945-1949) sugar factories that were damaged In 2004 Taisugar began to carry out organizational or destroyed during the war were repaired and again restructuring, resulting in the implementation of a began producing sugar, and in 1947 sugar began Fig.5. 1895–2008 Sugar Production Statistics 44 JAABE vol.8 no.1 May 2009 Chih-Ming Shih divisional organization and the establishment of eight main divisions, eight administrative departments, and three main centers. 3. Development of the Taiwan Sugar Industry Land 3.1 The Taisugar land acquisition process T h e s u g a r i n d u s t r y m o d e r n i z a t i o n c a r r i e d o u t d u r i n g t h e J a p a n e s e c o l o n i a l p e r i o d r e s u l t e d i n increased productivity, making it necessary to bring more land under sugarcane cultivation. This, in turn, raised the question of how to select and develop new land. Following restoration, the sugar industry was nationalized virtually overnight, making the lands Fig.6. 1945–2008 Area Planted with Sugarcane held by the sugar industry the largest part of state- of farmland, and also by purchasing the land of the owned lands. The income generated by Taisugar was sugar houses and sugar merchants. The result of this used to stimulate national economic development, process was that the four large sugar industry joint- and as Taiwan was striding headlong in the direction stock corporations succeeded in gaining possession of industrialization and urbanization, Taisugar lands of the lion's share of sugar industry lands. Thus the played a key role in the implementation of an array of colonial administration made use of land surveys to national construction projects. While the sugar industry acquire and develop public lands, measures which had lands underwent various transformations during the a far-reaching effect on the future direction of Taiwan's 20th century, what sort of relationship developed sugar industry lands. between the sugar industry lands and what it was iii) Conversion to public land producing? Following restoration in 1945, all of the assets of the i) Defining public lands four Japanese sugar-producing joint-stock corporations At the beginning of the Japanese colonial period the were nationalized, including 118,206 hectares of Japanese colonial government implemented a measure sugarcane fields. Afterwards, the new government of known as the Land Survey, one result of which was Taiwan carried out three land surveys. The 1960s and the abrogation of a long-standing phenomenon that 1970s were the peak years for the sugar industry, and began during the Qing dynasty known as "one field, up until the 1980s Taisugar continued to expand its two owners." (Yang, Y.Q., 2001). The results of the agricultural landholdings by bringing more land under Land Survey provided a basis for the expansion of cultivation and carrying out mergers. When the sugar public lands, and this had a major influence on the factories began to close in the 1990s, this agricultural ability of Japanese entrepreneurs to gain hegemony in land became Taisugar's most important usable asset, Taiwan's sugar industry. In 1898 Taiwan's governor- much of which was used by the government to carry general announced the Taiwan Cadastral Regulations out its national development plans. Faced with the and later in the same year established the Provisional steady decline of the sugar industry, and in accordance Taiwan Land Survey Department, which systematically with national policy, Taisugar's farmland began to be carried out surveys and mapping over a period of seven converted from agriculture to construction. years. Promulgated in 1904, the Large Tenant Rights 3.2 Changing uses of sugarcane plantations Arrangement resulted in the purchase of all tenant I n a c c o r d a n c e w i t h Ta i s u g a r p o l i c y c h a n g e s rights, compensating large tenants with government regarding land use and development, the post-war b o n d s . A f t e r w a r d s , i n o r d e r t o e l i m i n a t e f a l l o w period can be divided into four transitional stages: farmland and the "one field, two owners" system, land the asset requisition and reconstruction period (1945 ownership rights were simplified, and land surveys –1949); the farmland expansion and readjustment were used to acquire large tracts of state-owned land p e r i o d ( 1 9 5 0 – 1 9 8 9 ) ; t h e l a n d d i v e r s i f i c a t i o n for the purpose of development. a n d t r a n s f o r m a t i o n p e r i o d ( 1 9 9 0 – 1 9 9 9 ) ; a n d t h e ii) The expansion of privately owned sugar multifaceted land use period (2000 to the present). industry land During the first three periods there was a very close I n 1 9 0 2 t h e J a p a n e s e c o l o n i a l a d m i n i s t r a t i o n relationship between Taisugar's land use policy and a n n o u n c e d i t s Ta i w a n S u g a r I n d u s t r y I n c e n t i v e s the volume of sugar production, but in the fourth Regulations. These Regulations also allowed for the period Taisugar's land use and new undertakings transfer to Japanese sugar enterprises of land partially have been increasingly influenced by the larger social owned by government, including the land on which environment. The land area, sugar production volume, sugar factories were located, sugar company farms, business activities, and land use types of each period and villages in which Japanese immigrants resided. In appear in Table 1., and are described in the following order to carry out its plans for the modernization of the section. sugar industry, the Japanese colonial administration Period I: the asset requisition and had to first secure sufficient land for growing sugarcane reconstruction period (1945–1949) and refining sugar. At that time large Japanese sugar Many sugarcane plantations fell into disuse during companies acquired huge tracts of land, mostly due Wo r l d Wa r Tw o w h e n t h e s u g a r r e f i n e r i e s w h i c h to generous government subsidies for the expansion JAABE vol.8 no.1 May 2009 Chih-Ming Shih 45 m a n a g e d t h e m w e r e s e v e r e l y d a m a g e d b y A l l i e d and 1980, during the same period, in order to maintain bombing raids. Thus in 1946 and 1947 there were only enough sugarcane fields for sugar production, it also 32,937 hectares of sugarcane fields under cultivation, expropriated land at no cost and brought unused land and only 30,883 metric tons of sugar were produced. under cultivation. Besides, in response to numerous Accordingly, during the first few years foll owing fluctuations in the international price of sugar, Taisugar retrocession, the ROC government made a concerted began to diversify by deveolping some of its land into effort to rehabilitate sugar industry facilities, at the completely self-managed livestock farms, marking a same time conducting a cadastral survey. significant change in the company's management style. Period II: the farmland expansion and Taisugar benefitted from land use and development readjustment period (1950–1989) in two main ways. Firstly, the government's urban land During this key period of far-reaching social change readjustment policies gave Taisugar the opportunity to and rapid economic development, the substantial allot land for construction purposes. Secondly, under wealth of Taisugar became a financial basis for the the expansion of land area measures, Taisugar obtained government to carry out its development policies. Due unused land free of charge, while the government to an increasingly close relationship between land, c o n t i n u e d t o r e g a r d Ta i s u g a r a s a n a g r i c u l t u r a l on the one hand, and social change and government concern. Moreover, the favorable measures which policy, on the other, and in view of the fact Taisugar allowed the use of land adjacent to farms to carry out l a n d s w e r e t h e l a rg e s t a m o n g s t a l l t h e s t a t e - r u n sales expanded the area and facilities of Taisugar's self- industries, Taisugar was required to relinquish large managed farms. Finally, the comprehensive farmland amounts of land in accordance with government policy. surveys carried out between 1986 and 1989 were of Even though Taisugar lost much land between 1960 major importance to the transition to the following Table 1. Taisugar's Four Transitional Stages Statistics Transformation Planned Sugar Business Land Use Year Area Production Activity Policy (hectares) (metric tons) 78,489 86,074 1.Expropriation of Japanese assets, including 42 1. Nationalization of Japanese sugar industry land 32,937 30,883 sugar refining factories 2. Implementation of cadastral surveys 2.Four Japanese sugar joint-stock corporations 3. Expansion of area under sugarcane cultivation 1945–49 85,055 263,597 merged to create the state-run Taiwan Sugar 120,289 631,346 Corporation 118,452 612,332 78,812 350,761 1.Organizational restructuring 1.Comprehensive land surveys carried out in 1953, 1966, 2.Entry into the International Sugar Organization and 1986–1989 108,522 882,141 3 . C l o s u r e o f n i n e u n p r o f i t a b l e s u g a r r e f i n i n g 2.Transfer of 60,000 ha. between 1953 and 1973 in 1950s 76,312 733,160 factories accordance with government policy 94,110 832,749 4. Sugar factory enlargement and consolidation 3.Self-administered land readjustment: 96,242 939,862 5 . D e v e l o p m e n t o f s u b s i d i a r y p r o d u c t s a n d a) 1963–1968: government coordinated farmland enterprises readjustment 97,245 924,313 1 . O rg a n i z a t i o n a l r e s t r u c t u r i n g a n d p e r s o n n e l b) 1960 onwards: government coordinated urban land downsizing readjustment 90,799 752,342 2.Closure of 3 unprofitable sugar refineries 4 . U r b a n f a c t o r y s i t e l a n d r e a d j u s t m e n t : f r o m 1 9 7 6 106,452 1,005,547 1960s 3.Sugar refinery expansion and consolidation onwards, self-construction and sales of high-density 86,791 751,720 4 . D e v e l o p m e n t o f s u b s i d i a r y p r o d u c t s a n d housing units 90,295 735,642 enterprises 5 . 1 9 6 0 s t o 1 9 8 0 s : f a r m e x p a n s i o n a n d r e c l a m a t i o n 5.Increasing production by self-managed farm plan amounts to 8,412 ha. (including over 3,000 ha. acquired without consideration, and 4,071 ha. of farmland 86,817 797,141 1.Merger of sugar refineries and dealing with idle purchased) 95,227 744,824 assets 6.1985: measures enacted for the sale of land owned by 2.Increasing sugar quality 1970s 96.041 715,823 state-run agricultural units 3.Expansion of pig farms and pork exports 113,455 1,069,547 7.1986: Taisugar is allowed to develop land for tourism 4.Adjusting processed food subsidiaries 102,626 845,138 and provide land for construction in accordance with 1.Streamlining of sugar refinery organizational urban planning structure 8.1989: approbation of state-run enterprise land for 100,756 727,716 2.Closure of 2 sugar refineries construction 86,030 621,048 3.Reduction of agricultural subsidiaries and animal 1980s 9.1989: approbation of state-run enterprise land for sale 80,827 662,030 husbandry in accordance with national development plan 62,536 479,200 4.Development and marketing of processed sweets 66,034 617,573 5.Development of flower and vegetable farms 1.Establishment of the Land Development Agency 1 . P r o v i s i o n o f l a rg e t r a c t s o f l a n d f o r g o v e r n m e n t 2.12 sugar refineries closed construction projects, including transportation facilities, 3.Addition of enterprises unrelated to sugar or city parks, industrial parks, new cities and towns, new agriculture (construction, industry, commerce, residential areas, zone expropriation, and workers 59,715 409,093 and tourism) dormitories. 61,632 476,891 2.1985-1995: Land sales (425 ha.) and expropriation (2,398 ha.) 59,967 398,990 3.Government requests comprehensive plan for sugar 59,823 467,783 1990s factory land; in 1995 the land of closed factories begins 57,809 408,093 to be used for other purposes 4.1996: 10,400 ha. of land made available for public 51,951 391,544 investment 47,497 347,683 5.1991: 6-year national construction plan uses zone expropriation to convert farmland into construction 44,413 311,699 land 39,605 276,409 6.1993: government sets in motion its new development program, including leasing land held by state-run 36,350 250,824 industries and the establishment of the Superficies Act 1.Closure of 7 sugar refineries, leaving only 3 sugar 1.Land development: refineries in operation s e l f - c o n s t r u c t i o n , j o i n t c o n s t r u c t i o n , c o n t r a c t 31,516 189,095 2.organizational restructuring into eight divisions: development, factory site development, and student 23,022 151,043 2000–08 granulated sugar, hypermarkets, biotechnology, dormitories 10,858 75,439 specialty crops, animal husbandry, oil products, 2.Farmland management: 9,941 63,142 recreation, and merchandising. sugarcane tracts, high-value crop tracts, sightseeing forests, flatland reforestation 9,966 58,858 3.Industrial heritage redevelopment and preservation 46 JAABE vol.8 no.1 May 2009 Chih-Ming Shih Period IV Period III Period II Period I (2000- 2007) (1990- 1999) (1950-1989) (1945-1949) period of multifaceted management. to the changing fortunes of the sugar industry. Greater Period III: The land diversification and awareness of environmental issues and the importance transformation period (1990–1999) of preserving industrial heritage sites make it clear The 1990s were a period of gradual decline for the that any plans for the future of the sugar industry land Taiwan sugar industry. In the past, however, Taisugar must take into consideration the interrelated factors of land was regarded as primarily agricultural, and despite economic production, social needs, and ecology. The the land sales and uses of the previous period, Taisugar four main themes which emerge from the research on was still bound to the land use regulations of state-run the relevant historical documents are as follows: enterprises which stipulated that its land continued to i) The influence of national policy on rural industry be used primarily for agriculture. Still, in accordance Many of the features of the history of the Taiwan with its goal of land use diversification, the government s u g a r i n d u s t r y a r e h e l d i n c o m m o n w i t h o t h e r s u c c e s s i v e l y a m e n d e d i t s r e g u l a t i o n s r e g a r d i n g developing agricultural countries, largely because state-run enterprise land use and sales, prompting i n t h e p r o c e s s o f d e v e l o p m e n t a n d u r b a n i z a t i o n Taisugar to officially establish its Land Development they inevitably face the issues of the decline of rural Department in 1990 and to begin to actively expand its industry and land use and redevelopment. Over the land development activities. past decade, even though the price of Taisugar land Much of the Taisugar farmland that was used for has been set at the market value for rural land in g o v e r n m e n t c o n s t r u c t i o n p r o j e c t s w a s g r a d u a l l y accordance with government large-scale construction converted into non-agricultural land, in line with policy, foreign investors have been interested in the Taisugar's land diversification plan. Thus, over a period land for development opportunities. It's important to of ten years, as its sugar refining factories across the recognize the way in which rural industry is affected by island began to close, Taisugar's profit base gradually changes in the social and economic structure, and what shifted from the export of granulated sugar to the sort of industrial and land policies can be implemented development of non-agricultural land. Afterwards, to curb the decline of rural industry. The diversification Taisugar made a concerted effort to find ways to turn of national land development policies is a crucial its land assets into its main source of income and basis factor. In light of the particular history of Taisugar and for transformation. the sustainable development trend, the Taisugar land Period IV: the multifaceted land use period should be used not only for new construction projects, (2000 to the present) but also in a way which gives due consideration to At the turn of the century, Taisugar was still in the the revitalization of rural industry and culture. The midst the changes brought on by factory closures promotion of specialty crops, organic farming and a and land diversification. By the time market reforms variety of leisure farms will all help to invigorate rural r e l a t e d t o Ta i w a n ' s e n t r y i n t o t h e W TO a l l o w e d industry and agricultural villages. the importation of granulated sugar, Taisugar was ii) Sustainable productivity of industry land compelled to face three major global issues of the 21st T h e s u g a r i n d u s t r y h a s p l a y e d a n e x t r e m e l y century: industrial heritage preservation, agricultural important role in Taiwan's development, and Taisugar's diversification, and ecological protection. l a n d h o l d i n g s c o n t i n u e t o e x e r t a n i n f l u e n c e o n Despite its exit from the international sugar export the nation's future. The present challenge for the m a r k e t , d u e t o i t s p o s s e s s i o n o f a r i c h a r r a y o f government is how to break free from its traditional historical and cultural assets left behind by the previous reliance on the wealth of the sugar industry, and instead century of sugar production in Taiwan, Taisugar is in begin to promote the sustainable production capacity an ideal position to enter the new world-wide trend of sugar industry assets. of industrial heritage preservation. Moreover, global T h e S h a n h u a S u g a r F a c t o r y i n Ta i n a n C o u n t y agricultural development policies are shifting towards can be taken as an example (Fig.4.). One of the last the promotion of diversity and specialty agriculture, three sugar refineries still in operation in Taiwan, it is and environmental and agricultural sustainability. As situated near farmland, several small towns, and idle a result, and since its three main industries—sugar, sugar-production facilities. In accordance with the animal husbandry, and processed foods—were already government's six-year development policy, beginning in a state of decline, Taisugar has begun to consider the i n t h e 1 9 9 0 s t h i s i d l e f a r m l a n d h a s b e e n u s e d t o potential of specialty agriculture. Thus in recent years, develop a new science park, creating a high-tech hub apart from 15,000 hectares under sugarcane cultivation, situated in between the stagnating villages of Southern all of Taisugar's arable land has been converted to Taiwan and the already-developed modern cities. At high-value commercial crops, nurseries open to the the same time, due to the increasing influence of the public, and reforestation land in accordance with a culture and creativity industry over the last decade, flatland afforestation project expanded by the Ministry the nearby sugar industry relics are being transformed of Agriculture 1996. into cultural heritage sites. One such site is the Zongye Sugar Refinery. Established in 1911, this factory was 4. Discussion formerly the general headquarters of the Meiji period From the foregoing it can clearly be seen that during sugar-refining joint-stock corporation to which the the 400-year history of sugar production in Taiwan, the Shanhua Sugar Refinery belonged. Its Japanese-style value of the sugar industry land has been closely tied architecture has already been designated as having JAABE vol.8 no.1 May 2009 Chih-Ming Shih 47 historic value and is currently undergoing restoration. conversion. The results of this research show that the Seeking to implement a concrete example of how transformations of rural industry and land use are long- to create an industrial heritage site, in recent years term phenomena. the government's cultural department and a nearby In the past, the land use policies of Taiwan's sugar university of the arts have been actively promoting the industry were based on the vicissitudes and exigencies revitalization of neglected farming villages through of the sugar market. A reorientation of the value of a combination of art events and community building. the sugar industry land based on the considerations By making use of the methods of the culture and of culture, history, and ecology needs to take into creative industry, the industrial heritage of this site has account the following three factors: 1) Social life. been transformed in such a way to provide historical Revitalization of farming villages can be carried out retrospect and promote the sustainable production through the construction of new residential areas and capacity of the sugar industry land. the redevelopment of traditional villages. Historical iii) Ecological sustainability industrial architecture needs to be preserved to bear During the course of its development, Taiwan's sugar witness to history, and can also be used as a place for industry has repeatedly felt the impact of political art and cultural activities. 2) Economic productivity. changes and fluctuations in the international price of Idle land can be developed into ecological science sugar. Yet it's important not to overlook the vitality of parks, and monoculture farms can be transformed the island's natural environment. The 400-year history into organic farms cultivating a variety of crops. 3) of Taiwan's sugar industry demonstrates that the growth Ecology. Many of the vast land holdings of Taisugar capacity of the land has given rise to various regional can be converted into ecology parks to promote the political and economic effects. While mass production rejuvenation of Taiwan's endangered wildlife. Based has brought certain benefits to society, it is also clear on ecological awareness, productivity can be brought that the excessive exploitation of natural resources into a sustainable relationship with all aspects of life. which comes with mass production is exacting a severe toll on the natural environment, making many people Acknowledgments reevaluate land use and development policies. The authors express their appreciation to the Taiwan The preservation and reuse of industrial heritage Sugar Research Institute for providing documents and sites creates a cultural space where urban and rural photos. Ta i w a n e s e c a n i n t e r a c t . T h e 4 0 0 - y e a r c u l t u r a l landscape provided by Taiwan's sugar industry creates References 1) Chang, C.Y. and Chiou, S.C. (2007) Environmental Sustainability a fertile environment for the integration of ecology and and the Rebirth of a Cultural Heritage: A Case Study of the Old art. The future development of the Taisugar land is not Neihu Quarry in Taipei, Taiwan. Journal of Asian Architectural merely a matter of economics, agricultural productivity, and Building Engineering 6 (1), pp.17-24. or the market value of land. Rather, what needs to be 2) Chen, Min-Yen (2007) The Taiwan Sugar Industry. Taipei: Walkers adopted is a more holistic view which includes the Publishing. 3) Chen, Y.F. (1994) Nanying Industry, Tainan County: Tainan long-term quality of life, as well as productive and County Culture Center, pp.285-315. ecological sustainability. 4) Information Department Taiwan Sugar Corporation (2001) T.S.C iv) Industrial heritage and urban planning Sugar Statistics: Corp. Records of Cane and Sugar in 2000-2001, Based on the Land Survey of the Japanese colonial No. 53, pp.19/135. 5) Information Department Taiwan Sugar Corporation (2002) T.S.C period, the Japanese applied the community design Sugar Statistics: Corp. Records of Cane and Sugar in 2001-2002, concept to carry out a comprehensive plan for the No. 54, pp.11/135. sugar factory lands. The abundant resources of the 6) Information Department Taiwan Sugar Corporation (2000) T.S.C s u g a r i n d u s t r y e s t a t e s p r o v i d e d t h e b a s i s f o r t h e Sugar Statistics: Corp. Records of Cane and Sugar in 1999-2000, establishment of new towns in the adjoining areas, as No. 52, pp.11/135. 7) Sugar Corporation (2006) Celebrating Sixty years of Taisugar. well as the increased prosperity of the nearby farming 8) Sugar Industry Corporate Society (Japan) editor, (1962), translated villages. by Culture Association of Taiwan Sugar Industry, (2007). A An example of a successful industrial heritage reuse History of the Sugar Industry in Modern Japan. Kaohsiung: The is the Ruhrgebiet Industrial Heritage Trail in Germany. Society of Sugar Cane Technologists of The Republic of China. In Taiwan the sugar industry has a long history, covers 9) Taiwan Sugar Corporation (1986) Forty years of Taisugar. 10) Taiwan Sugar Corporation (1996) Fifty years of Taisugar. a vast area, and has been highly influential. Moreover, 11) Taiwan Sugar Corporation (1991) The Early Years of the Taiwan the sugar industry estates are a treasure store of culture, Sugar Industry: A History. historical architecture, industrial heritage, and natural 12) Taiwan Sugar Corporation (1958) Taiwan Sugar Statistics, landscapes. Thus the challenge for Taisugar is how to pp.9/61/99. make optimal use of the industrial heritage potential of 13) Taiwan Sugar Corporation (1969) Taiwan Sugar Statistics, pp.9/65. 14) Taiwan Sugar Corporation (1979) Taiwan Sugar Statistics, pp.9/51. its vast land holdings to create a new model for urban 15) Taiwan Sugar Corporation (1989-99) Taiwan Sugar Statistics, planning. pp.9/55. 16) Tu, S.C. (1997). Sugar Production in Yanshui. Tainan County: 5. Conclusion Tainan County Culture Center. This research has taken a long-range historical 17) Yang, Y.Q. (2001) Story of Taiwan Cane Sugar. Taipei: Owl Books 18) You, Q.Z. (2005) Research on the Development of Taiwan's approach to examine the use and development of Industry and Foreign Trade (1897~1942). Taipei: Daoxiang Publishing. sugar industry land during the process of industrial 48 JAABE vol.8 no.1 May 2009 Chih-Ming Shih

Journal

Journal of Asian Architecture and Building EngineeringTaylor & Francis

Published: May 1, 2009

Keywords: sugar industry; land use policy; rural industry; colonialism; Taiwan

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