;After the World War II, Ryukyu was under reconstruction, controlled by U.S. military. Holding one hundred million dollars foreign exchange every year, Ryukyu became a popular location where every country is fighting for in making foreign exchange. In February 1952, Taiwan Chamcer of Commerce（台灣省商業聯合會）sent a group of observers to investigate Ryukyu’s market, the purpose was to create an opportunity of trade between Taiwan and Ryukyu. Since, Taiwan is located fairly close to Ryukyu, the U.S. Business department in Ryukyu was in favor to expand trade with Taiwan commerce for Taiwan local produced goods ,such as rice, sugar, tea, cigarette, liquor, banana, pineapple and exedra. U.S. Business Department seemed for opportunity to trade with Taiwan more often because the quality of the goods and its abundance. Hence, the trade between Taiwan and Ryukyu was established.
After Korean War, Taiwan and Ryukyu joined alliance to prevent communist; and goods that were smuggled into China. Thus, The ‘‘Agreement between Taiwan and Ryukyu’’（臺琉貿易協定） was signed to strengthen the relationship and in making the trade accounting-based. On the other hand, U.S. military ease up its control of people that were involving both political and economical affairs in Ryukyu. In October 1956 Ryukyu’s politician as well as commerce-man commenced the visit to Taiwan. Ryukyu’s trade with Taiwan had become intensify. Taiwan Ministry of Foreign Trade assembled a working group to forward the trade between Taiwan and Ryukyu in June 1957, its purpose was to expand business opportunity, and in addition to strengthen the trade with Ryukyu continuously.
During the changing among the nations, and the period when Ryukyu was governed by the U.S. government, the diplomatic affairs associated with politic and economic were strictly regulated between Taiwan and Ryukyu. Therefore, Republic of China established the ‘‘SINO-RYUKYUAN Cultural Economic Association’’（中琉文化經濟協會） in March tenth, 1958. Its mission was focused on strengthening communication and support cultural and economical improvement without political reinforcement of diplomatic affairs between Taiwan and Ryukyu.