President Chiang had asked in vain that the Assembly find another leader and permit him to retire. Even before convening of the National Assembly's fifth session, thousands of messages poured into Taipei from all over Taiwan and the world. Their import was identical: the nation's leader could not be spared at this critical time in history.
Firecrackers exploded and people paraded the streets in impromptu celebration as the news of President Chiang's re-election went out on radio, television and in special editions of Taiwan's newspapers.
Wang Yun-wu, senior adviser to the President, who was presiding, made the announcement at Yangmingshan (Grass Mountain), where the National Assembly held its sessions. He and Kuo Cheng, the Assembly's secretary-general, then went to President Chiang's Yangmingshan residence to extend congratulations.
Two other members of the Assembly Presidium, Paul Cardinal Yupin and Wu Hung-shen, announced the tidings from the balcony of the City Hall in downtown Taipei.
The National Assembly, which together with the Legislative Yuan and Control Yuan make up the Republic of China's parliament, convened in election session February 20. On March 10, the Kuomintang (Nationalist Party) nominated President Chiang as its candidate. The opposition Democratic Socialist and Young China Parties endorsed the KMT's choice and did not nominate opponents.
The President's candidacy was supported by 1,289 Assembly members and the election took place March 21.
President Chiang was elected the Republic of China's first constitutional president in April of 1948. He was re-elected previously in 1954, 1960 and 1966.
On March 22, Vice President Yen Chia-kan was re-elected to his second term. He received 1,095 votes. The Vice President, who holds the concurrent position of premier, first was chosen as the President's running mate in 1966. He, too, had no opposition. President Chiang had endorsed his outstanding performance as head of the nation's administration.
Besides carrying out its election duties, the National Assembly amended the temporary provisions of the Constitution to give the President power to "make adjustments in the administrative and personnel organs of the Central Government, as well as their organizations," and to provide for elections at the national parliamentary level.
Except for 28 parliamentarians elected in 1969 to reflect the increased population in Taiwan and to fill vacancies in the island province's representation, no new members have been sent to National Assembly, Legislative Yuan and Control Yuan since 1947. The amendment authorizes the President to "initiate and promulgate regulations providing for elections to strengthen elective offices at the Central Government level" without being subject to restrictions of the Constitution intended to apply to the whole of China. The elections will be held at regular intervals and terms will be six years for the National Assembly and Control Yuan and three years for the Legislative Yuan.
The President is authorized to select members of the Legislative Yuan and Control Yuan from among members of overseas Chinese communities where elections cannot be carried out.
Incumbent members of parliamentary organs will continue to serve without re-election until the mainland is recovered. Thereafter, "elections shall be held one by one as areas are recovered."
President Chiang told the closing session of the National Assembly that the meeting had "heralded a new epoch for our nation and people in their quest for freedom and unification internally and for justice and peace externally."
With amendment of the temporary provisions of the Constitution, he said, "we are assured that there will be a pooling of young talent from both the free areas of the country and overseas, as well as an enlargement of the base of the people's representation." As for the additional powers granted him, he said the government would be able "to undertake measures facing up to change and to keep its confidence in surmounting all dangers and difficulties."
Commenting on his draft by Assembly and people for a fifth term, the chief executive said: "It is not without a deep sense of diffidence that I have ventured to answer your call. Instead of pointing out my failures, the National Assembly is continuing to trust me with the duty of suppressing the Communist rebellion and accomplishing national recovery. This has made me deeply grateful and emboldened me to stand forth without looking back and to vow that for the remainder of my life I shall endeavor to do my best to extinguish the evil sources of Maoist treachery and violence internally, while externally endeavoring to ensure welfare, peace and justice in free Asia."
President Chiang expressed regret that "some shortsighted and misguided people have mistaken wrong for right and have labeled black as white. They have evaluated the situation of strength or weakness on the basis of counting the number of people and have indulged in alarming reports and false statements." He said "Only our Chinese people still have faith in benevolence as opposed to violence."
Expressing confidence in a victorious outcome of the struggle against the Maoists, the President declared: "In the company of Vice President Yen Chia-kan, I shall surely follow you of the electorate, as well as the government and people, in joint acceptance of the task of national recovery and construction."
Messages of congratulation to President Chiang came from chiefs of state throughout the world. Inauguration of President Chiang and Vice President Yen is set for Saturday, May 20. Hundreds of thousands of celebrating citizens will mass in the Presidential Plaza to greet the nation's two top leaders after the ceremonies.
In its final declaration, the fifth session of the National Assembly made these points:
— President Chiang was re-elected in response to the "unanimous desire of the whole nation" and as "a great contribution to the future of world anti-Communism." Assemblymen agreed that the chief executive's "exemplary leadership and international stature" would instill new hope in the nation and provide the rallying center for all Chinese at home and abroad.
— Amendments to the temporary provisions of the Constitution "bring new blood and new strength into elective offices" and provide more adequate representation for the people, thus expanding and stabilizing the foundation of democracy and contributing to counter attack and national recovery.
— To win the war against Communist bestiality and violence, all of the Chinese people must unite to defend the Taiwan-Penghu-Kinmen-Matsu bastion, recover the mainland and destroy the Communists.
— Dr. Sun Yat-sen's Three Principles of the People will provide the guidelines for national salvation and construction. "Democracy and freedom are the correct way of life for the Chinese people."
— No change will ever be made in the national policy of counterattack and national recovery. "There never will be possibility of negotiation on compromise with the rebellious, illegal Maoist Communist group under any circumstances at any time."
— Territorial limits of the Republic of China can be changed only by resolution of the Assembly, and there will be no relinquishment of the Tiaoyutai Islands north of Taiwan.
Vice President and Premier Yen reported to the National Assembly session on national developments in the six years since the Assembly's fourth session.
After reviewing difficulties and reverses, the Vice President said the Republic of China would carry out "a flexible and mobile diplomatic policy the world over" to: (1) win friends on a basis of realism and prevent the further advance of the Chinese Communists, (2) step up reporting of Taiwan's progress while exposing the real situation of the mainland under Communism and (3) support a people-to-people diplomacy through scholars, students, overseas Chinese and the people in general.
In the wake of President Nixon's visit to the mainland, he said, "we have been deeply moved by the highly anti-Communistic, patriotic and support-the-government fervor expressed by overseas Chinese and their communities, the people and the military and, especially, the intellectuals of the younger generation." He called attention to the statement of the government that any agreement reached between the United States and the Chinese Communists as a result of the Nixon visit would be considered null and void.
Vice President Yen said that the Communists were going from one failure to another on the mainland and that their days were numbered. The Republic of China will not fail in its responsibility to eradicate the Maoist regime, he said, so as to restore freedom and human rights and assure the people of the mainland of a good life.
Taiwan had an economic growth rate of 9.9 per cent during the six-year period, the Vice President said, and the gain reached 11.4 per cent in 1971 despite changes in the world political and financial situation. These other key figures were cited:
— Per capita income increase of 6.9 per cent annually from 1966 through 1971.
— Economic stability reflected in annual increases of only 1.6 per cent in the wholesale price index and 4.1 per cent in the retail price index.
— Industrial growth at an average rate of 18.1 per cent for the last six years. The 1971 gain was 21.2 per cent.
— Agricultural growth at an average rate of 4.1 per cent annually.
— Industrial share of 34.2 per cent of the net domestic product in 1971 versus 17.7 per cent for agriculture.
— Foreign trade of US$4,085 million in 1971 with a favorable balance. For the six years, export gains averaged 27.4 per cent and imports 23.2 per cent annually.
— Increase of 1.54 million kilowatts in electric power generating capacity during the six years. Capacity exceeded 2.7 million KW at the end of 1971.
— Infrastructure projects under way or in the planning stage include nuclear power plants, North-South Freeway, new international airport for Taipei, Taichung port on the west central coast. Tsengwen Dam (64.4 per cent complete at the end of 1971), round island railway and rail electrification.
To implement the nine-year education program, more than 19,700 buildings of various sizes were built for junior middle schools and more than 3,800 elementary classrooms were rebuilt. School attendance has reached 4,130,681 at 4,111 schools. Attendance is 98.5 per cent for those of elementary school age.
Social welfare undertakings have been greatly expanded in recent years, the Vice President said. Labor insurance now covers more than 10,000 units and 1,030,000 people. Progress has been made in community development and lowering of the rate of population growth.
Defenses are at maximum strength, the Assembly was told, and activities behind the enemy lines have "brought about an upsurge in the revolutionary tides of anti-Mao and national salvation movements among the masses."
Administrative reform measures have included strict execution of the budgetary system, adoption of centralized disbursement and tax modernization. The Central Government had its eighth successive year of budget surpluses in fiscal 1971 and did not have to ask for supplementary appropriations.
Two weeks earlier, Vice President Yen—acting ill his capacity as premier—had made his administrative report to the first meeting of the 49th session of the Legislative Yuan. He spoke of the "shocking changes" in the international community during the preceding six months, and said:
"It has become difficult to distinguish right from wrong and friend from foe. The meaning of righteousness and justice has been obscured. All the confusion and perplexity have pained us. In this bewildering era, our country stands squarely in the middle of the adverse current and therefore must endure many blows, setbacks and even humiliations. Fortunately, under the wise leadership of our President, our people both at home and abroad are standing firm as one and, with dignity and vigor, are relying on themselves for strength."
The Cabinet chief said the Republic of China is moving ahead with an all-out diplomacy which will "coordinate culture, economy and trade into one integrated effort. Speaking on the eve of President Nixon's visit to the mainland, he said the Chinese Communists were making "a pretense of prosperity and peacefulness" and "trying to conceal their chaos and weaknesses." In truth, he added, the Chinese Communist regime "continues to be in the deepest trouble."
The economic trend on the mainland continues to be downward, Premier Yen asserted. He presented these supporting facts:
— Food production of 492 billion catties (probably an exaggerated figure) in 1971 was 9 per cent under the 540 billion catties reported in 1959.
— Except for petroleum, industrial production either declined or showed a lower rate of growth for the last 12 years than for previous years.
— Foreign trade was about US$4.2 billion in 1971, or about the same as in 1959.
— National income grew at a rate of only 1.12 per cent for the last 12 years, compared with Taiwan's figure of 9.32 per cent for the same period.
— Per capita income in 1971 was no higher than US$90 and may have been as low as US$60.
These mainland-Taiwan comparisons were made:
— 1,780 calories and 30 grams of protein per day versus 2,680 and 69.2.
— Consumption of 1.7 pounds of cotton fabrics per year versus 7.8 pounds. The mainland has no figures for synthetics and woolens and production is virtually nil. Taiwan used 10 pounds of synthetics and 1.2 pounds of woolens per capita last year.
— Electric power consumption of 13 kilowatt hours per capita in 1971 versus 216.
— Primary school enrollment of 80 per cent versus 98.5 per cent.
— Hospital or clinic for every 110,000 persons versus one for every 13,000.
— One radio set for every 2,000 persons versus 420 sets. No private TV sets except for high-ranking Communist Party officials versus 53 receivers per 1,000 persons.
Premier Yen said the contrasts show that "only when Communist tyranny is eradicated and a new China of the Three Principles of the People with democracy, freedom and peace has been rebuilt can the Chinese on the mainland enjoy a happy and prosperous life."
Legislators were told of the government's efforts to cope with international monetary fluctuations. Included were short-term loans to tide over operating expenses of exporting companies and plants, relaxation of the limitation on the amount of loans against letters of credit, lowering of the discount rate, narrowing of the gap between interest rates for deposits and loans so as to encourage savings, reduction of tariff rates on 15 important imports and transfer of the state-owned Bank of China to private ownership.
Taiwan's 10-year economic development plan calls for increase of the national product at an average of 8.5 per cent annually. Some major goals will be promotion of external investment, expansion of basic and sophisticated industries, modernization of agriculture and strengthening of transportation to serve the export trade and domestic needs. The volume of foreign trade is expected to reach US$10.4 billion in 1980.
Social reconstruction will emphasize these points in the 1970s:
— Manpower development through vocational training and a population policy of family planning, eugenics and child care.
— Expansion of health and other insurance protection for workers.
— Further land reform and equalization.
— Public health improvement through tighter pharmaceutical, medical and disease controls.
— Community development on a basis of the 1,453 model communities already established.
— Perfection of the nine-year education program with more schools, more classrooms, better qualified teachers and revised or new textbooks.
— Science development based on higher standards, research, introduction of new sciences and stress on applied science.
In fiscal 1973, the premier pledged, "we shall seek new heights in our political renovation, shall build a stronger economy, shall move forward in culture and education, and shall further strengthen our military preparations ... we may expect to face any situation from a position of strength."
Diplomatic isolation has not resulted from the Republic of China's withdrawal from the United Nations, the Executive Yuan told legislators in a written report. Nor has Peiping improved its position as a result of U.N. membership. The government pledged to strengthen bilateral diplomatic relationships and at the same time to defend its position in international organizations.
A Foreign Ministry statement expressed regret at Japan's establishment of diplomatic relations with the "Mongolian People's Republic." "Outer Mongolia is a part of the Republic of China," the statement said.
Britain closed its Tamsui consulate, which had existed for a century, as the price for Peiping's agreement to an exchange of ambassadors. London was the first Western power to recognize the Chinese Communists but has had only a charge d'affaires in Peiping. Trade between Taiwan and Britain, which has been increasing, will be handled privately and is not expected to suffer. Visas for travel from Taiwan to Hongkong will be forwarded and returned by airlines.
A target of 8.5 per cent has been set for economic growth in calendar 1972. The Council for International Economic Cooperation and Development said the figure, which is nearly 2 per cent lower than the 1971 record, is conservative because of the international economic and political situations. Individual targets are 12.2 per cent for industry, 8.5 per cent for transportation and communications, 7 per cent for services and 4 per cent for agriculture.
Industry will get 50.3 per cent of investment and agriculture 8.3 per cent. Private spending is set at 53.3 per cent of the gross national production and government spending at 18 per cent. Capital formation is expected to make up 28.5 per cent of the GNP. In trade, exports are slated for growth of 22.2 per cent and imports for an increase of 27.5 per cent. The trade surplus is expected to be US$5 million, compared with US$180 million in 1971.
Agriculture will fall to 13.6 per cent of the GNP while industry climbs to 36.5 per cent.
Wong Yi-ting, director of the Board of Foreign Trade, predicted that trade will surpass that of the mainland by the end of this year. H. K. Shao, the BOFT deputy director, said trade volume for this year will top US$5 billion. The China Credit Service estimated US$5.4 billion for 1972 with exports of US$2,870 and imports of US$2,530. The CCS estimates are higher than those of the government, but the latter has been inclined toward conservatism in its prognostications. CCS said U.S. economic recovery would boost sales to America, the upward revaluation of the Japanese yen would help diversify Taiwan trade and make free Chinese goods more competitive, and that the minor recessions of Hongkong and South Korean business would boost Taiwan sales.
BOFT reported industrial exports reached US$1,712 last year, or more than 80 per cent of the total. The figure was up US$494 million from that of 1970. The breakdown by categories was 39 per cent for textiles, leather goods and wood products, 19.56 per cent for metal products and 11.34 per cent for electrical machinery apparatus. Volume of the last was US$230 million, which made up of 77 per cent of total production. Taiwan has more than 280 electrical apparatus plants. The estimate for production this year is US$370 million.
The United States was continuing to encourage its nationals to invest in Taiwan, according to John McDonnell, Far East representative of the U.S. Export-Import Bank. He said the bank has outstanding loans and guarantees to the Republic of China exceeding US$200 million and is considering applications totaling US$40 million.
Despite Japan's uncertain political course with regard to China, private Japanese entrepreneurs invested US$642,000 in Taiwan during January and February. Japanese investment totaled US$101.4 million between 1953 and the end of last year. The record year was 1970 with US$28.5 million. Major categories are electrical apparatus (US$35.1 million) and chemicals (US$20.1 million).
One of early 1972's big investments—US$12 million—came from Corning International Cooperation of the United States in conjunction with the Iwaki Glass Co. Ltd. of Japan. The China Development Corporation will provide US$300,000. The company will make glass for television tubes for export and domestic use.
Tax revenues climbed to US$1,016,875,000 last year, of which about a quarter came from direct taxes. Although tax revenues were up two and a half times from 1966 to 1971, they still made up only 16.8 per cent of gross national production last year.
The Executive Yuan (Cabinet) approved establishment of a US$45.5 million loan fund to undertake important economic projects in both the private and public sectors. Funds will come from several sources.
The Chinese Petroleum Corporation is receiving US$40 million in U.S. loans to finance development of the petrochemical industry. The U.S. Export-Import Bank is putting up half and commercial banks the rest. Work will start this year on a second naphtha cracking plant at Kaohsiung, a plant to extract gasoline from natural gas near Hsinchu and a cracking plant to turn out high octane gasoline, also at Kaohsiung.
Approval came from the Executive Yuan for establishment of a World Chinese United Bank. Half of the US$10 million capital will be local and half will come from overseas Chinese banks.
Economic Affairs Minister Y. S. Sun told of the narrowing gap between rich and poor. The ratio between average family income of those in the top 20 per cent and bottom 20 per cent of the population was 15 to 1 in 1950. By 1965 the figure was 5 to 1, and in 1970 it was 4½ to 1. He said that in Mexico the figure went from 10 to 1 in 1950 to 17 to 1 in 1965.
Tourism increased 14.3 per cent in 1971 to reach 539,755 visitors, who spent an estimated US$93 million. This did not include American servicemen on R&R from Southeast Asia. The average stay was just under 5 days.
Japanese led the way to Taiwan with 255,699, an increase of 44.1 per cent, followed by Americans at 111,444, a decrease of 7.5 per cent. Overseas Chinese numbered 73,185. Then came 12,517 Filipinos, 9,835 Australians and 8,910 Malaysians. Men were dominant at 78.59 per cent and the age level was down.
In 1956, Taiwan had 14,974 tourists.
Computer ticketing will come to the Taiwan Railway Administration in 1974. Thirty-five stations throughout the island will be able to assure reservations through the computer system. TRA established its computer center in 1970.
Costs of nine-year education are troubling the Taiwan Provincial Government, which must service students who live in rural and poor communities. TPG has proposed tuition of US$2 a semester in junior middle schools to help defray rising costs. The under-privileged would be exempted. Educational expenditures occupy four-fifths of the budget of some towns and counties.
From the Post Office came a report of 620 million letters handled last year, an increase of 13.85 per cent. Postal savings were up 35.92 per cent, postal remittances by 20.41 per cent, philatelic earnings by 9.9 per cent and insurance by 53.71 per cent.
Based on survey of a sample involving 3,600 families, the Taiwan Provincial Government said average family income was US$110 monthly in 1970, compared with US$162 in Taipei. The provincial figure represented an increase of 48 per cent over 1964.
Families spent 91.34 per cent of income with this breakdown: food, 47.6 per cent; alcoholic beverages, 1.37 per cent; tobacco, 3.49 per cent; clothing, 5.79 per cent; housing, 12.91 per cent; lighting and fuel, 5.28 per cent; housekeeping, 1.5 per cent; health, 5.9 per cent; furniture, 2.4 per cent; transportation, 3 per cent; entertainment, 2.66 per cent; and others, 7.99 per cent.
Low interest loans totaling US$20 million will be made to farmers in the next three years for the purchase of machinery.
Taiwan has become the world's leading exporter of canned asparagus, although it trails the United States in output of the vegetable. Farmers have been warned against overproduction, however. Part of last year's crop had to be destroyed.
The Free China Relief Association reported that about 20,000 refugees reached Hongkong from the mainland last year. Escapees said that as many as 50,000 may have tried to flee. The others were apprehended or died in their bid for freedom.
Defense capability will be beefed up in the 1972 fiscal year, the Executive Yuan said. Scientists will be employed and facilities constructed for research and development of weaponry and military equipment. Output of arsenals will be increased.
Repair capacity of the Chinese Air Force was demonstrated in the restoration of an F104 Starfighter which was cracked up in a landing accident. Representatives of Lockheed, the builder, said the plane was beyond repair.
CAF rebuilt the plane in less than two years at a cost of US$20,000, compared with replacement cost of US$1,300,000.
From the United States came an addition to the Chinese Navy. Type and tonnage were not revealed, but the "large warship" was presumably a destroyer.
Vice Premier Chiang Ching-kuo made a three-day visit to the offshore island of Kinmen (Quemoy). He toured the main island and several of its outposts. As director of the China Youth Corps, he took part in a student camp-out and visited civilian communities and projects. On his way back to Taipei he stopped in Penghu (the Pescadores Islands).
Not so many college graduates are going abroad for advanced study. The number departing in 1968 was 3,440, or 7.18 per cent of graduates. In 1969 about 2,000 went, or 8.57 per cent. The 1970 figure was 2,588 out of 32,781, or 7.74 per cent. The upgrading of Taiwan's own graduate work is the principal reason.
The Ministry of Education has decided to hold two college entrance examinations starting this year. One will be for colleges granting bachelor's degrees and the other for two-year institutions. Dates have not yet been set.
Construction of the second harbor entrance at Kaohsiung is half completed. Work is now under way on breakwaters which will have a length of 4,000 yards. The second portal is expected to open in 1976. Super-tankers then will be able to enter the port instead of offloading through floating pipelines attached to buoys.
Kaohsiung has become a transshipment center for container shipping with completion of two deepwater container wharves. Cost of the project was US$20 million. Two additional deepwater wharves will be opened next year. The harbor has a container center for smaller vessels with six wharves.
Port authorities of Kaohsiung were taking steps to prevent the dumping of garbage into the harbor. Collections will be made from ships in port. Industrial plants which have been polluting the waters will be urged to clean up their waste.
The Joint Commission on Rural Reconstruction is urging the palletization of industrial and agricultural products to reduce shipping costs and raise the level of efficiency. Some 50 representatives of industry and trade attended a JCRR meeting to promote palletization. Bagasse fiberboard pallets will be used in addition to those made from wood.