Yen Chia-kan (Chinese: 嚴家淦; pinyin: Yán Jiāgàn; Wade–Giles: Yen2 Chia1-kan4; 23 October 1905 – 24 December 1993), also known as C. K. Yen, was a Chinese politician, chemist, and economist who was the 2nd president of the Republic of China from 1975 to 1978. As a member of the Kuomintang (KMT), he served in various important government positions throughout his lifetime, including Minister of Finance, Premier of the Republic of China, and Vice President of the Republic of China.
On 5 April 1975, Yen Chia-kan succeeded Chiang Kai-shek as the 2nd President of the Republic of China, being sworn in on 6 April 1975, and served out the remainder of Chiang Kai-shek's term. On 20 May 1978, after his term elapsed, he did not seek reelection and was succeeded by Chiang Kai-shek’s son, Chiang Ching-kuo. As the first civilian President of the Republic of China, he implemented many reforms including the shift from using Literary Chinese to the written vernacular in government documents and successfully responded to the 1973 oil crisis.
Unlike his controversial predecessor, Chiang Kai-shek, Yen Chia-kan’s reputation and legacy is positive due to the many successful economic policies that he implemented throughout his life both in mainland China and in Taiwan. Due to his successful implementation of the New Taiwan dollar as the chairman of the Bank of Taiwan in 1949, Yen Chia-kan is widely known as the “father of the New Taiwan Dollar".
In accordance with traditional Chinese practices, Yen Chia-kan used multiple names throughout his life. At his birth, he was assigned a milk name, which was Yen Yü-sun (Chinese: 嚴雨蓀; pinyin: Yán Yǔsūn; Wade–Giles: Yen2 Yü3-sun1). As he grew older, he was given a first name, Yen Ching-po (Chinese: 嚴靜波; pinyin: Yán Jìngbō; Wade–Giles: Yen2 Ching4-po1), which he also used as his courtesy name. Later, he chose a pen name for himself, which was Yen Lan-fên (Chinese: 嚴蘭芬; pinyin: Yán Lánfēn; Wade–Giles: Yen2 Lan2-fên1). During his adulthood, he changed his name to the name that he is commonly known by, which is Yen Chia-kan (Chinese: 嚴家淦; pinyin: Yán Jiāgàn; Wade–Giles: Yen2 Chia1-kan4).
Yen Chia-kan was born in Mudu in 1905 to a prestigious Soochow family, the Yan (Yen) Family of Dongshan (東山嚴氏). His family was large and moderately wealthy. In 1910, at the age of 5, he began formal education at the Mudu Primary School. In 1926, at the age of 21, he graduated from St. John's University in Shanghai with a Bachelor of Science (B.S.) degree in chemistry.
In 1931, Yen Chia-kan began serving as a manager of the Shanghai railway administration.
During the Second World War, Yen Chia-kan started to work as director of the finance department of Fukien Provincial Government and the Cantonese Provincial government in 1938. During his tenure, he initiated a policy of land tax for farmers with their agricultural produce to alleviate the dual problem of food shortages and an empty treasury. This policy was then adopted nationwide across China and contributed significantly for the national food supply during World War II.
In 1939, the following year, Yen Chia-kan was appointed director of the Department of Finance of the Fuchien Provincial Government, which was responsible for raising wartime levies for the Fuchien Province. While in this office, Yen Chia-kan abolished more than 70 miscellaneous taxes and improved the province's finances by balancing the budget. As a result of his fiscal policies, the province’s annual budget was balanced and the deficit was significantly reduced.
Later in the course of the war, Yen Chia-kan was appointed by the National Government of the Republic of China to be the procurement director of the War Production Board. As the procurement director of the War Production Board, Yen Chia-kan was in charge of supplies procured from both American Lend-Lease and the British and Canadian loan programs. During his tenure in this office, he twice visited India to expedite deliveries over "The Hump".
Retreat to Taiwan and subsequent years
When Yen Chia-kan arrived in Taiwan in October 1945, he was appointed transportation director for the Taiwan Provincial Government. He was later named provincial finance director. From the provincial government, Yen Chia-kan was subsequently elevated to chairman of the Bank of Taiwan. As the chairman of the Bank of Taiwan, Yen Chia-kan began issuing the New Taiwan dollar on 15 June 1949 to replace the Old Taiwan dollar, which was experiencing hyperinflation due to the Chinese Civil War. In order to stabilize the economy, he also imported 10,000 tons of rice from Southeast Asia. Due to the success of the New Taiwan Dollar and his other economic policies during the postwar era, Yen Chia-kan became known as the “father of the New Taiwan Dollar”.
In 1950, Yen Chia-kan was appointed Minister of Economic Affairs, and then moved to the Ministry of Finance. Under the authorization of Premier Chen Cheng, Yen Chia-kan, together with Yin Chung-jung and Yang Chi-tseng, oversaw Taiwan's economic and fiscal affairs. The trio became widely known as the "Yin–Yen–Yang iron triangle" of finance and economics.
Chen Cheng reportedly remarked to them, "I am a soldier by training and have had no prior experience in economics. Even after serving over four years as Premier, the rapid changes in the economy are beyond my grasp. From now on, any proposals and recommendations jointly put forward by the three of you will receive my full support."
According to former Deputy Minister of the Council for Economic Planning and Development Yeh Wan-an, the three were long-time friends, though Yin Chung-jung and Yang Chi-tseng frequently engaged in heated debates over differing viewpoints, with Yen Chia-kan often acting as a mediator to resolve their disagreements.
In this capacity, Yin Chung-jung, together with Chen Cheng and Yen Chia-kan, promoted Li Kwoh-ting.
Yen Chia-kan remained Minister of Finance until 1954, when he was appointed Governor of Taiwan. From 1957 to 1958, he served as chairman of the Council for United States Aid, then returned to the Ministry of Finance and stayed there until 1963. During his second term as Minister of Finance, Yen Chia-kan adopted economic policies that encouraged investment and exports. The rapid growth of Taiwan’s economy and its subsequent industrialization allowed the United States to announce in June 1965 the termination of economic assistance to the Republic of China, which was seen as a major success for Yen Chia-kan’s economic policies and Chiang Kai-shek administration.
Vice-presidency and Premiership
On 16 December 1963, Yen Chia-kan was appointed Premier of the Republic of China by President of the Republic of China, Chiang Kai-shek. After the death of Vice President Chen Cheng on 5 March 1965, the incumbent President of the Republic of China, Chiang Kai-shek, selected Yen Chia-kan as his running mate in the upcoming election.