By Du Guodong

The existence and whereabouts of more than 200 tons of hidden gold, taken to Taiwan by the retreating Kuomintang (KMT) at the end of the Chinese Civil War 60-plus years ago, has long remained a mystery. Puzzling historians and civilians alike, the secret remains no more, with a new book revealing exactly where the bounty lies.

The Chinese Secret Archives of Gold, by Sing-yung Wu, son of a former financial chief of the Kuomintang military, retells one of the country's most buried and sought-after secrets.

Ten years ago, Wu discovered a top-secret military expenditure log that belonged to his father Wu Songqing and began delving into the details related to the historical document. His father, once in charge of the KMT's military expenditure, was deeply trusted by Chiang Kai-shek, the leader of the KTM leader at the time.

Since making the discovery, Wu spent the next 10 years consulting historical records in both China and the US, especially the newly-declassified diary of Chiang Kai-shek's at Stanford University. He also interviewed many people who were personally involved in the gold's transportation to Taiwan, including the pilot of one of the aircrafts used.

Wu found that around the year 1949, four batches of gold and silver dollars, weighing more than 200 tons in total, were transported to Taiwan by both air and sea, in a very confidential way.

"The greatest problem I encountered when writing the book was how to calculate the total sum of the gold accurately," Wu told the Global Times. "I have supported my findings with figures I obtained from historical records, personal diaries and people involved."

The book reveals that as early as 1948, Chiang Kai-shek was forced to prepare to retreat to Taiwan and planned the disposal of bank deposits, including gold, as part of the retreat.

The Chinese Secret Archives of Gold vividly retells that during the late evening of December 1, 1948, the first batch of gold, weighing approximately 90 tons, was transported to Taiwan from Shanghai by an anti-smuggling military vessel of the navy.

Despite the KMT's quest for secrecy, the operation was spotted by British journalist George Vine, who was stationed at a nearby hotel. The incident was reported by Vine on the BBC the next day and attracted international attention.

As well as unveiling the total amount of gold transported to Taiwan, Wu's book also reveals where it was spent. According to Wu, most of the money was used for defense and infrastructure with a small amount earmarked to start up a newspaper. No money was embezzled by any individual.

Wu explained that the funds were used to support early construction on the island and played a central role in Taiwan's economy.

As of today, about 14 percent of the smuggled gold is still kept in reserve, with annual interest amounting to 70 billion yuan ($10.25 million) a year, Wu said.

He added that it is his wish the interest be used to set up an education fund to enhance cooperation and mutual trust between the Chinese mainland and Taiwan, a cause that Wu emphasized would be the recipient of all of the proceeds of the sale of his book.

"To reconstruct the distant past and bring an end to any bitter feelings that exist between the Chinese mainland and Taiwan is the purpose of my book," Wu said.

"I also hope that the book will be adapted into a TV series so a broader audience can be exposed to this specific part of history to help usher in a brighter future for everyone," Wu added. Available in Chinese, The Chinese Secret Archives of Gold is being translated into English.

Born in 1939 in Sichuan Province, Wu moved to Taiwan with his family in 1949 and spent his childhood there. In late 1960s, Wu relocated the US and obtained doctorates in both philosophy and medicine. He currently lives in the US and is a professor of medicine at California University.

Book Tag

The Chinese Secret Archives of Gold by Sing-yung Wu 404 pp, Jiangsu People's Publishing House, $7.05 Published in December, 2009