"Everybody understands," the President said, "that the strengthening of the power of the government and people of the Republic of China is a blessing to the free world, and that in the absence of this power the free world will suffer."
President Chiang said the Chinese Communists have been stepping up their international united front campaign. They are trying to win over the overseas Chinese, urging them to identify with and return to the Communist-controlled mainland of China.
"It will benefit the free world for 18 million overseas Chinese to turn their hearts toward their free motherland," the President said.
He said it would be disastrous if the overseas Chinese should yield to Communist temptation.
President Chiang reiterated the Republic of China's duty to liberate the 700 million people on the mainland.
"If our 700 million mainland compatriots are delivered from their dark and bloodstained hell," he pointed out, "it will be a blessing for the free world. If they are compelled to become Communist cannon fodder, that will be tragic and fatal for the free world."
Noting the anti-Confucius movement on the mainland, President Chiang said the Chinese Communists are preparing for '''a new cultural revolution which would threaten the very existence of our mainland compatriots."
Mao Tse-tung wants to "discredit Confucius" and "exalt Ch'in Shih-huang (the first emperor of the Ch'in dynasty)" for the purpose of "completely liquidating mainland intellectuals," President Chiang declared.
Another purpose is to wipe out the influence of provincial "mountain strongholds," he added.
Still another purpose, he said, is "not only to tear up and misrepresent the history of our people, but also to destroy their moral fabric and lifelines."
The President urged the nation to "stand up to the severest test of the times."
"We must carryon to the accomplishment of the final goal set by our Founding Father, Dr. Sun Yat-sen, and the revolutionary martyrs with staying power and courage," he said.
He promised: "We will not stop before we succeed. We must continue what we did yesterday for the success of tomorrow."
In fulfilling that duty, President Chiang said, the Republic of China is fighting "both the vanguard and the rearguard actions" for the lasting victory of its cause.
Vice President Yen saluted the New Year with a call to "take advantage of every minute, make good use of every dollar" to modernize the country and march toward victory.
He said:
"In the face of the rapidly changing world situation, we have suffered from the buffetings of the adverse current of appeasement, but we have fully displayed undaunted spirit.
"Because of national unity and progress in economic reconstruction, the base of our anti Communism and national recovery has stood all the firmer, holding a pivotal position. With our self-reliance and self-reinvigoration to confront the internal crisis and struggle of the Chinese Communists, we cannot fail to cope with any change and defeat our enemy, holding in our hands the key to world peace.
"We must take advantage of every minute, make good use of every dollar and let everyone of us contribute his wisdom and talent to the economic reconstruction aimed at modernizing our nation and to our march toward the goal of recovering the mainland of China.
"Let us, under the brilliant guiding light of San Min Chu I (the Three Principles of the People) and under the able leadership of our great President, exhibit our national tenacity and abiding faith to usher in a new year and usher in victory."
Premier Chiang Ching-kuo gave an interview to Tillman Durdin, correspondent for the New York Times, December 31. The Premier told Durdin that contacts between the United States and the Chinese Communist regime are not beneficial to the United States and the free world.
The Premier said Peiping is trying to use the United States as its political capital in the international arena.
"American friends to whom I have spoken expressed the view that most Americans are satisfied with the present relationship between their country and the Peiping regime," the Premier said, implying that they do not wish to move toward diplomatic relations.
The Premier again took opportunity to refute the possibility of talks with the Chinese Communists. He said:
"Our government has solemnly stated its basic views and position thereon on several occasions. Our deeds and words have been consistent and clearly known to the world. We believe that any contact or negotiation with the Chinese Communists would be suicidal and we shall never be that stupid."
Asked if it is possible for the government of the Republic of China to get in touch with Russia in order to check the Chinese Communists, the Premier said:
"Our government will do what it has said. We will never resort to diplomatic trickery. We learned from experience that there are no tricks to be played in the struggle against Communism. We have not thought of getting in touch with Russia in the past or now, and we shall not do so in the future. Our government and the ruling party, under the leadership of President Chiang Kai-shek, always stands on a policy of principles. To maintain our principles, we sometimes risk the consequence of setbacks. Westerners should view our policy from this standpoint. While our present situation is difficult, the fact that we still exist and continue to win respect from others is primarily because we adhere to our principles. Our success in the future also depends on adherence to our principles."
The Premier said he believes "the United States should always stand on our side out of moral considerations and for our mutual benefit and interest." He said, "The United States is the leader of the free world, of which my country is a part."
Premier Chiang pledged to continue construction of infrastructure projects despite problems of energy and inflation. He said:
"The sharp increase in the price of oil might force us to spend more foreign exchange than we had estimated and lead to a change in the export import balance. We might have some budgetary difficulties in fiscal 1974, but we still expect to have a surplus. We are now working on the budget for fiscal 1975. Our trade for 1973 exceeded US$8.3 billion. I want to point out, too, that foreign investment in Taiwan reached a record high in 1973."
The Premier reiterated the importance of political renovation and the government's policy of recruiting capable people without regard to their home provinces. He said:
"Our government is continuing the task of political renovation. Last year we worked hard to move toward this goal and we achieved more than in any other year, particularly in the field of political democratization. Proof can be found in the 1972 and 1973 elections. Both Taiwanese and mainlanders are Chinese. In recruiting people for government positions, we consider the ability of the candidates and not the provinces they are from."
The Premier said that when nine infrastructure projects are completed five years hence, the Republic of China will join the ranks of the developed countries.
The nine projects are the Suao-Hualien railroad, Taichung Port, North-South Freeway, integrated steel mill at Kaohsiung, shipyard at Kaohsiung, petrochemical complex, railroad electrification, Suao Port and Taoyuan International Airport.
Premier Chiang has assigned cabinet members to keep tabs on progress of the projects. He himself will oversee the North-South Freeway.
Vice Premier Hsu Ching-chung will watch over the integrated steel mill.
Seven ministers without portfolio will keep track of progress on the remaining seven projects.
George K.C. Yeh will monitor the Taoyuan International Airport 18 miles southwest of Taipei. The airport will be opened to traffic in 1977.
Yu Kuo-hua, concurrently governor of the Central Bank, will oversee railroad electrification, also slated for completion in 1977.
Lien Chen-tung will watch over Taichung Port, R.C. Li over the Suao-Hualien railroad, S.K. Chow over the shipyard and Kuo Cheng over Suao Port.
Lee Teng-hui will guide development of the petrochemical industry. Two naphtha cracking plants and a DMT factory will be built by 1977 at a cost of NT$3.8 billion (US$100 million).
A decathlonist who escaped from the Chinese mainland arrived in Taiwan with his family.
Mu Yang, 35, of Fukien, won seventh place in the mainland decathlon of 1959.
Mu was born in Singapore and went to the mainland when he was 16.
He was sent to a hospital to study anatomy and received a license to practice medicine after only 13 months.
"This is how the Chinese Communists make barefoot doctors," Mu said. "The Chinese Communists care nothing for human lives."
Mu, his daughter and six others arrived in Taipei December 31 and were welcomed by Ku Cheng-kang, chairman of the Free China Relief Association.
Thai Deputy Prime Minister Dr. Sukich Nimmanhaeminda said friendly relations between Thailand and the Republic of China will not be affected by the changes in the world situation. He met with Ambassador Ma Chi-chuang in Bangkok for 40 minutes to exchange views on the international situation.
Deputy Prime Minister Sukich asked Ambassador Ma to convey his best wishes to Premier Chiang Ching-kuo and Foreign Minister Shen Chang-huan.
Ambassador Ma presented Dr. Sukich with a book on the treasures at the National Palace Museum and a Chinese desk calendar. Dr. Sukich is a Sinologist.
Dr. Sukich gave Ambassador Ma a personally signed New Year's greeting card.
An office of the Australia-Free China Society was opened at Taipei in January. It will provide services for Australians visiting Taiwan.
Lu Chen-kai, secretary-general of the Sino Australian Cultural and Economic Association, heads the office, which is located at 43 Huaining Street.
Established in Sydney in December, APCS is a private non-profit organization dedicated to sup porting the cause of the Republic of China. Its head office at 383 George Street, Sydney, helps Australians seeking information about Taiwan.
Dr. Douglas Darby, AFCS president, and George Wroblewski, vice president, visited Taiwan to help set up the Taipei office.
Members of the Association of Free Chinese in the United States expressed hope the Republic of China would continue its "anti-Communist and mainland-recovery stand" and never compromise with the Maoists.
This expression was included in a declaration at the end of the first session of the second congress. The three-day meeting was attended by 130 representatives from regional chapters in the Eastern, Central, Western and Southern United States.
Chen Yu-ching, director of the Kuomintang Central Committee's Overseas Affairs Department, attended. He reported on contrasts between the Republic of China and the Communist-ruled mainland.
Chen said the Kuomintang would never alter its opposition to the Chinese Communists. The party will continue to seek the freedom of the people on the mainland, he added.
Chen said that the Maoist regime is beset with problems which cannot be solved at home and abroad. He mentioned the Mao succession problem, disunity in the army, economic stagnation and the Soviet threat.
Ambassador James Shen also spoke. He discounted likelihood of Washington recognition of the Peiping regime within the foreseeable future. He said he was optimistic about continuing diplomatic relations between the United States and the Republic of China.
Dick Tennyson Matenje, minister of finance of Malawi, said his country has plenty of food because of the excellent performance of agricultural teams from the Republic of China.
Minister Matenje and a party of nine came to Taiwan for a week's visit.
He said that helped by ROC farm teams, Malawian farmers are able to grow enough rice and other crops.
Malawi is becoming a developed agricultural nation, he said. "We are also on the way of becoming industrialized," he added.
"The Republic of China is a good example for developing nations. This is why we have come here to learn from your experience," he said.
"We are in the same stage of development as you were 20 years ago. We hope our studies here will help us save time.
"I hope trade relations between Malawi and the Republic of China will be further strengthened.
"Malawi produces such agricultural items as tobacco, cotton, corn, green nuts and cattle food suitable for export to the Republic of China.
"In return, we need textile and timber processing machinery and agricultural equipment."
Four members of the Canadian House of Commons came to Taipei for a five-day visit.
This was the first Canadian parliamentary group to visit the Republic of China since the Canadian government recognized the Peiping regime three years ago.
The parliamentarians were Jacques Trudel, chairman of the House Committee on Finance, Trade and Economic Affairs; Victor Railton, vice chairman of. the Committee on Health, Welfare and Social Affairs; Marcel Lambert, former House Speaker and now member of the Committee on External Affairs and National Defense; and Lloyd Crouse, member of the Committee on Fishery and Forestry.
The Canadians called on government and civic leaders to exchange views. They toured scenic spots and economic establishments.
Dr. George R. Field, chancellor of the University of Wisconsin at River Falls, visited Taiwan for a week at the invitation of the Ministry of Education. He discussed plans for exchanges of professors and students.
Dr. Field called on Minister of Education Y.S. Tsiang and visited the National Taiwan Normal University, Provincial Department of Education, Kaohsiung Teachers' College and the Kaohsiung Export Processing Zone.
Making his second visit to Taiwan, Dr. Field was accompanied by Dr. Daniel H. Brown, dean of the College of Education, and Dr. Charles H.S. Kao, professor and chairman of the Department of Economics, of the University of Wisconsin.
Everett F. Drumright, former U.S. ambassador to the Republic of China, and his wife Florence spent the New Year holidays in Taiwan.
They called on old friends and visited scenic spots. The Drumrights were completing an island hopping tour of the South Pacific. They had visited Taipei two years before.
William Carter, president of Rotary International, paid a one-day visit to Taipei.
He called on Vice President C.K. Yen, Minister of Interior Lin Chin-sheng and Taipei Mayor Chang Feng-hsu, and met members of 44 Taiwan Rotary Clubs at a luncheon.
Rotary was established in the United States in 1905 and now is represented in 150 nations and areas. There are 750,000 members of 16,000 clubs in 350 districts.
Taiwan, Hong Kong and Macao comprise District 345, which has 54 clubs and 2,500 members. Taiwan alone has 44 clubs and 2,000 members.
Vice President and Mrs. C.K. Yen gave a dinner to honor the visiting Costa Rican speaker of the Chamber of Deputies and Mrs. Monge.
The Vice President said that though the two countries are far apart, they share the same convictions and aspirations.
Cultural and economic cooperation between the Republic of China and Costa Rica has been greatly stepped up, he added.
Three Costa Rican students are studying in Taipei on government scholarships. A number of Chinese companies, including Sin Kong Textiles Corporation, are planning to establish factories in Costa Rica.
Edgar Sanchez, Costa Rican ambassador to Taipei, is studying Chinese at National Taiwan Normal University.
The Monges stayed a week.
Some 1.1 million kilowatt-hours of power is being saved daily as a result of energy conservation, the Taiwan Power Company said.
Premier Chiang Ching-kuo ordered a 25 percent cut in energy consumption by government offices. The amount was raised to 30 percent in January.
Advertising signs are extinguished at 9 p.m.
Places of entertainment close at midnight instead of 2 a.m.
Taipower has lowered voltage 3 to 5 percent. The company has eight thermal generating stations with combined capacity of 2,993,000 kilowatts, accounting for 72.6 percent of the island's power.
Twenty-nine hydroelectrics have maximum output of 1,131,000 kilowatts. This will be nearly doubled in June when five generators of the Tachien Dam and Reservoir project go on line.
Tachien Dam began storing water December 15, 1973. The five downstream generators will produce 1,020,000 kilowatts.
Tehchi just below Tachien Dam will have a 234,000-KW capacity. The other generators are Chingshan, 360,000 kilowatts; Jukuang, 180,000 KW; Tienlun, 106,000 KW; and Hsinpokung, 140,000 kilowatts.
Tachien Reservoir will have a surface area of 592 square kilometers and storage capacity of 175 million cubic meters.
The double-curvature concrete arch dam is 180 meters high, 285 meters long, 28 meters wide at the bottom and 4.5 meters wide at the top.
Construction was started December 8, 1969.
Cost was NT$4.16 billion (US$105 million).
Government will spend more than NT$10 billion (US$263 million) in the next five years to improve railroads, highways and seaports. This is in addition to big infrastructure projects.
Provincial Communications Commissioner Chen Shu-hsi said five major projects would be completed in five years to remove transportation bottlenecks.
Electrification of the railroad on the west coast will get under way this year and be carried out in three stages at a cost of NT$12.1 billion (US$318.4 million).
The first stage will take 36 months and electrify the line between Keelung and Chunan. The section between Chunan and Changhua will be finished nine months later. The Changhua-Kaohsiung line will be electrified 15 months after that.
Double-tracking of the Chunan-Changhua line is planned for this year. Also to be double-tracked by 1975 are Hsinpu-Tunghsiao, Yuanli-Jihnan, Tachia-Chianan and Chianan-Chingshui sections.
A second track will be added to Shihchiaoting Juifang, Mutan-Shuanghsi and Tungshan-Hsin-cheng sections of the Taipei-Han line.
Double-tracking will make it possible to expand service by 25 percent and to cut running times.
Bonds for second-stage construction of the North-South Freeway have been approved by the Legislative Yuan. To be issued in the 1974-1977 period, the bonds will mature in seven years.
The interest rate will be set by the Executive Yuan every six months.
The bonds are not free of income tax. Denominations are yet to be decided.
NT$1.9 billion worth of bonds was issued for first-phase construction. These were exempt from income tax.
The North-South Freeway will be completed by June, 1978, six months ahead of schedule. Driving time from Taipei to Kaohsiung will be cut from 10 to 5 hours.
At least NT$2 billion (US$52,631,000) will be collected in tolls annually. The freeway will pay for itself in 16 years.
China Airlines will inaugurate express cargo flights from Kaohsiung to Los Angeles April 1. There will be two flights weekly.
The Boeing 707 will have a payload of 8,000 pounds.
Air cargo service between Taiwan and the United States has been growing rapidly.
The Civil Aeronautics Administration said 9,607,799 kilograms (21,137,157.8 pounds) of cargo arrived at Taipei International Airport from overseas in 1971. Forty-five percent was from the United States.
Outgoing air cargo for 1971 totaled 18,769,309 kilograms (41,292,479.8 pounds), of which 54 percent went to the United States.
During the first 10 months of 1973, outgoing air cargo exceeded 55 million kilograms (121 million pounds). More than 50 percent went to the United States. Incoming cargo was about double that of 1972.
About half of outgoing air cargo is from Kaohsiung, where two of the country's three export processing zones are located.
CAL raised passenger fares and cargo rates by 4 to 6 percent in January.
Passengers pay 4 percent more to Southeast Asia and 6 per cent to the United States. Cargo rates went up 4 percent.
CAL has purchased the 206-room Hawaiian Inn at Waikiki for a reported US$4 million. The airline will use the property to provide accommodation for airline personnel and passengers.
China Airlines flies from Taipei to San Francisco and Los Angeles.
Members of a Taipei Seminar on Agricultural Development had words of approval for the Republic of China's policies.
Dr. Walter Falcon, director of the Food Research Institute of Stanford University, presided over the four-day meeting.
Dr. Falcon listed these key factors contributing to Taiwan's success in agriculture during the last two decades:
- Land reform.
- Clearness of objectives.
- Correct policy.
Dr. Falcon cautioned developing countries to be very careful in trying to follow Taiwan's example. ''They should understand the whole frame work in which the progress took place," he said.
Economic Minister Y.S. Sun said the government of the Republic of China is in the process of reviewing its economic plans and said a NT$2 billion rural development program is in full swing.
He told participants that results and recommendations of the seminar would be carefully studied.
Dr. Robert Lee, chairman of the Joint Com mission on Rural Reconstruction, thanked participants. He said JCRR would continue to serve as a bridge between domestic and foreign technicians.
A Taipei newspaper, Lien Ho Pao (United Daily News), said the government had decided to continue the NT$2 billion two-year rural development program after 1974.
The two-year program is intended to give farmers increased incomes and better working and living conditions.
A total of 186 work projects has been under taken, including:
- Termination of the rice-fertilizer barter system.
- Increase in rice production to 2.5 million metric tons.
- Construction of rural infrastructure. A total of 19.14 kilometers of seawalls has been built and some 50 drainage projects completed. Windbreaks were completed for 24,000 hectares. Four rural highways were completed. Fourteen more will be built.
- Streamlining of the marketing system. Farmers' associations are engaging in the cooperative marketing of hogs and grading, packing and marketing of vegetables.
- Improving fruit and vegetable wholesale markets in Taipei. Retail prices have been cut and growers are earning bigger profits.
- Supplying of harvest manpower. A million mandays of labor were provided by the Ministry of National Defense for the rice harvest.
- Training of dairy workers. Fifty-nine rural youths were sent to the United States and New Zealand to study dairy and beef cattle management.
"The government has decided to pump another NT$2 billion into the program over two more years," the Lien Ho Pao said.
The Ministry of the Interior announced a new building code designed to protect good farmland from further encroachment by developers and factory builders.
The code bans building on farmlands of the top eight grades. Taiwan farmland is classified in 26 grades according to productivity.
Tiller-owners of top-grade land may build living quarters and essential structures on farmland. Such buildings should not occupy more than 200 square meters or exceed 5 percent of the total farmland.
A partial building ban is imposed on farmland between Grades 9 and 12. Structures are limited to houses, roads, schools, factories and public facilities.
Government agencies surveyed unfinished buildings in rural areas.
With three-quarters of the land area covered by mountains, Taiwan does not have enough good farmland. An area of only about 600,000 hectares is devoted to rice cultivation.
Tillers have purchased more than 4,400 hectares of farmland under the land-to-the-tiller program, the Taiwan Provincial Government reported.
Loans totaling NT$261,590,000 were made at annual interest of 5 percent.
The Provincial Government said land transfer activities are inactive. Few owners are willing to sell their holdings at a time when prices are soaring.
The Taiwan Provincial Government approved an NT$630,100,000 hog raising loan program.
Loans will go to 3,250 families in 1974. Each hog raiser is entitled to a maximum loan of NT$290,000. About half of the amount will be a long-term loan for acquisition of land, pig sheds and other permanent fixtures. The other half is a short-term loan for the purchase of piglets and feeds.
Long-term loans are repayable in seven years at annual interest of 6 percent. Short-term loans must be repaid in a year at interest of 9.5 percent.
Factories established from July to November last year numbered 2,627. Investment was NT$9,172.88 million.
A total of 1,520 plants (54.92 percent) was engaged in heavy and chemical industry. Investment was NT$5,067.53 million.
The remaining 1,247 factories (45.08 percent) were engaged in light industry. Investment was NT$4,105.35 million.
A total of 1,722,000 females over 15 years old was employed in 1973. They represented about 33.02 percent of all workers at the time of the survey.
Industrial, transportation and manual laborers numbered 556,000, or 32.29 percent of working women.
Another 224,000 women (13.01 percent) were employed in business.
Of employed women, 477,000 (27.23 percent) were aged between 15 and 29.
Half of working women were married.
Eighty percent of the population will be urban dwellers a decade from now.
Finance Minister K.T. Li said the population of the 1980s will be concentrated in Taipei Keelung, Taichung-Changhua and Kaohsiung-Tainan areas.
Li said planning of mass transit systems is urgent.
Of the present population of 15.5 million people, about 60 percent are living in cities.
Microwave communications for the east coast were dedicated at Hualien. The system will offer 50 telecommunications channels between Taipei and Hualien and 15 channels between Hualien and Taitung.
The NT$460 million (US$12.1 million) system can handle 756 telephone circuits, 72 telegraph circuits and 3 TV circuits.
Residents of Hualien and Taitung may now receive color TV programs.
Tricycle trucks will be retired by the Taiwan Provincial Government over the next three years. Owners will be compensated and helped to find other jobs.
Those who sell their vehicles to the government in 1974 will receive NT$26,000 in compensation Payment will be NT$16,000 in 1975 and NT$11,000 from January to September of 1976. Owners who keep their vehicles until the last quarter of 1976 will get only NT$6,000.
Government enterprises and schools will not be compensated.
Drivers may apply for job training and employment assistance.
Taipei City will spend NT$1,260 million on major construction projects in fiscal 1975, Mayor Chang Feng-hsu said. This is 31 percent more than in fiscal 1974.
Among ongoing projects will be that to increase the water supply. By the end of 1976, daily output of the Taipei Waterworks will be 1,060,000 cubic meters, an increase of 480,000 cubic meters.
Eighty-eight percent of Taipei residents will have piped water when the project is completed.
Plans have been made for rebuilding military dependents' housing in cooperation with the Minis try of National Defense. High-rise apartments will be built on the sites of the villages. Slum clearance will be continued with 4,280 new units.
NT$2,940 million will be spent in the next 10 years for a sewage disposal plant, several pumping stations and stronger flood control levees.
A wholesale market will be completed in June.
Smaller markets will be added annually.
A six-lane bridge will link Sungkiang Road with suburban Tachih. Overheads and cloverleaves will be constructed to reduce traffic congestion.