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The Japanese colonial government adopted a policy of the state monopoly in Taiwan from 1897 to 1945. Profits from its various monopolies no doubt ameliorated its financial straits during its early rule of the island. In fact, the state monopoly became a major source of revenue of the Government-General of Taiwan in the ensuing years. The policy of the state monopoly evidently played a significant role in the Japanese rule of Taiwan. Upon the takeover of Taiwan by the National Government in 1945, the Office of Taiwan Administrators was established. It continued the same Japanese policy of the state monopoly out of financial considerations. Its implementation, however, incurred Taiwanese suspicion for Taiwan was no longer a Japanese colony. As a matter of fact, the populace resented it. They had reservations about the integration of Taiwan economy into Mainland China after the island’s disconnection with Japan. On the other hand, different measures were taken in the mainland and in Taiwan, the drawbacks in economic planning, the lack of coordination of ministries in the central government, and the imbalance of supply and demand all intensified people’s resentment. The highhanded measure against the sale of privately made cigarettes finally triggered the insurrection on and after February 28, 1947. In the aftermath, the Office of Taiwan Administrator was reshuffled and renamed as the Provincial Government of Taiwan and its Bureau of State Monopolies was reorganized as Taiwan Provincial Monopoly Bureau of the of Tobaccos and Wine in response to criticisms. The implementation of the state monopoly not only contributed to the revenue but also exerted significant impact on polities and society in postwar Taiwan as well. This dissertation delves into the transformation of Taiwan’s monopolistic system, tracing its development before 1945 and exploring its transition, operation, change, effects, as well as its significance in the history of Taiwan from 1945 to 1953.
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