• After the "economic miracle," Japan became a significant economic powerhouse.
• The Conservative government in Japan created a national consensus for prioritizing economic growth.
• Result: Communism didn't spread to Japan.

• Did U.S. policies lead to this success, or was it Japan's own efforts?
• Factors to consider: Japanese attitude, government policies, and work ethic.

• U.S. wanted Japan to create a massive military force and join a regional defense alliance.
• Japan, understanding U.S.'s deterrence against a Soviet attack, decided to focus on economic growth. With the U.S. covering defense costs, Japan invested more in economic development.

Change in U.S. Policy: The U.S. policy shifted during the Korean War.

• Before the war, there was no formal plan to support Taiwan against Communist China.
• After North Korea's attack on South Korea, Truman moved the US Seventh Fleet to the Taiwan Strait.
• From then on, the U.S. recognized Taiwan as the official Chinese state until 1971 and provided economic and military support.

Eisenhower's Decisions

Real-world example: Imagine a playground standoff between two kids, where one kid (Eisenhower) keeps threatening to call in their bigger friend (nuclear weapons) if the other kid (China) doesn't back down.

• Eisenhower removed the Seventh Fleet in 1953, intending to "unleash" Taiwan's Nationalist leader, Jiang Jieshi.
• When China bombarded nearby islands, the U.S. Congress passed the Formosa Resolution. Eisenhower warned China against overtaking Taiwan, using threats of nuclear weapons.
• Eisenhower's tactics: 'massive retaliation' and 'brinkmanship.'

Quemoy and Matsu Crises: China bombarded these islands in 1958.

• The Seventh Fleet returned, and U.S. again threatened nuclear action.
• Result: China backed off, but both superpowers (U.S. and USSR) were unhappy about these escalations.

Was Containment Successful in Taiwan?

• Despite crises like Quemoy and Matsu, Taiwan maintained its independence with U.S. backing.