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 was 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 Co-ordination Council for North American Affairs in the USA, set up in 1979 and accorded diplomatic status in Oct. 1980.
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