Fourteen years have elapsed since a shattered Nationalist Government fled to Formosa with the hope of reorganising and revitalising its forces and of building an effective base for a counter-attack against the Chinese Communists. At that time it appeared to have little chance of survival. However, because of changing international conditions and Formosa's impressive domestic economic performance, the Nationalist Government has been able to re-establish itself as an effective political force. Formosa's economic achievements have given the Government a certain international prestige and, combined with military assistance from the United States, have allowed it to maintain a large, well-equipped military establishment.