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http://www.allgov.com/departments/department-of-state/american-institute-in-taiwan?agencyid=7202
The AIT has signed a private operational contract with the U.S. State Department, from which it receives most of its funding. It is governed by a board of directors appointed by the secretary of state, with the U.S. Congress exercising oversight authority. Its staffers are employees of the U.S. government who, during their AIT tenure, are technically separated from the federal agencies with which they normally work, while still maintaining their government benefits and promotion timetables. The AIT director is accorded the same rank and privileges as other ambassadors.
Despite the lack of formal diplomatic ties, the AIT performs many of the same functions as any embassy, including the promotion of American interests and the establishment and fostering of bilateral economic and cultural ties. The AIT also issues tourist visas and passports. Taiwan has a similar organization based in Washington, D.C., known as the
Taipei Economic and Cultural Representative Office.
The agency maintains a small headquarters in Arlington, Va., that coordinates with the Taipei Economic and Cultural Representative Office and federal agencies. Its main office is in Taiwan’s capital, Taipei, with a small branch office in the southern Taiwanese city of Kaohsiung.