HISTORY. The island of Taiwan (Formosa) was ceded to Japan by China by the Treaty of Shimonoseki on 8 May 1895. After the Second World War the island surrendered to Gen. Chiang Kai-shek in Sept. 1945 and was placed under Chinese administration on 25 Oct. 1945. USA broke off diplomatic relations with Taiwan on 1 Jan. 1979 on establishing diplomatic relations with the Peking Government. Relations between the USA and Taiwan are maintained through the American Institute on Taiwan and the Taiwan Institute for North American Affairs, set up in 1978 and accorded diplomatic status in Oct. 1980.
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