"North Vietnam and the Viet Cong are actually fighting the United States and its allies as proxies of Russia and the Peiping regime," he said. "The war's outcome will decide not only the fate of Vietnam but also the security of Asia, the United States and all the world. No matter how fanatical and cunning the enemy, the United States and its allies must persevere in the struggle, defend South Vietnam and safeguard the security and peace of Asia and the world until honorable and real peace can be assured.
"The Vietnam war like the Korean war is an extension of the tragedy on the Chinese mainland. The danger to all the people of the world will increase and there can be no successful defense of the independence and freedom of Vietnam and the peace and security of other countries until the Peiping regime is destroyed. The destruction of the Peiping regime and deliverance of our mainland compatriots is, of course, our sacred responsibility, but the free world must be made aware that Peiping is the rootstock of all evil in Asia and that our position in maintaining world peace is crucial."
Collapse of the Peiping regime is imminent, the Vice President said. "Now Mao is preparing to convene the ninth congress of the Chinese Communist Party in an effort to rebuild the Party organization. A fierce struggle is already under way among the various factions and cliques regarding the nomination of candidates. These developments strengthen our conviction that the Peiping regime is well along the way toward internal collapse.
"Confusion is reaching a point of no return. We need to heighten our preparedness for the desperate moves to which Mao is likely to resort while on his deathbed. Our compelling task is to strike down this madman now in order to keep him from committing further crimes against the Chinese people and the rest of humankind. We must unite all anti-Communist and anti-Mao forces at home and abroad and on the Chinese mainland, strengthen the Mao Suppression and National Salvation United Front and seize every opportunity for effective action. In so doing we can expedite the destruction of the Maoists and the consummation of our sacred mission."
The Republic of China is making good progress on the international scene, the Vice President said. "We have continued to win friends and promote new tics. Friendship with others has been furthered through the signing of treaties and the exchange of visits. We are strengthening our economic, cultural and technical cooperation with other countries. We have 30 technical teams with personnel totaling 735 working in 24 countries and serving as our ambassadors of goodwill."
He singled out the 17 million overseas Chinese for attention. "Through their patriotism for the fatherland and their loyalty and contributions to their countries of residence, they have served as an international bridge and have promoted relations with friendly nations," he said.
For political and social construction, priority is being given to:
- Implementation of the rule of law.
- Streamlining of administrative statutes.
- Improvement of local elections.
- Implementation of social welfare measures.
- Completion of urban land reform.
- Improvement of political morale and the enhancement of administrative efficiency.
- Renovation of personnel administration.
Vice President Yen reported at length on the nine-year program of free education, which gets under way with the 1968-69 school year. New curricula and textbooks have been prepared with emphasis on "preparation for life, development of national spirit and vocational training". Between 17,000 and 18,000 new teachers are being sought for employment in the first three years.
He also told of progress in science development and pledged that the government will earmark as much money for science as finances permit.
These are highlights of Taiwan's 1967 economic progress as reported by the Vice President and Prime Minister:
- Net increase of 8.9 per cent in the gross national product and of 5.8 per cent in per capita income, which reached US$209.
- Agricultural increase of 5.3 per cent, including a record rice crop of 2,410,000 metric tons.
- Industrial growth totaling 17 per cent. Industry occupied 28.4 per cent of the net domestic product compared with 24.4 for agriculture and 47.2 for services.
- Foreign and overseas Chinese investments totaling US$45 million in the last six months of the year to raise the 1967 total to US$63 million. Employment will be provided for 44,000.
- Foreign trade totaling US$1,495 million for an increase of 26 per cent. Exports of US$669 million, up 15 per cent, and imports of US$825 million, up 37 per cent. The balance of payments was favorable, however, because of overseas investments, foreign loans and remittances, and revenues from tourism. Manufactured goods made up 60 per cent of exports. Trade was conducted with 110 countries and areas.
Compilation of a new two-year budget based on the national economy has been started by the Executive Yuan. The goal is to coordinate the needs of the economy with the budgets of the national and local governments.
Such a budget was recommended by a group of Chinese American economists and approved in principle by the National Security Council, the government's new top policymaking organ headed by President Chiang Kai-shek. These are purposes of the new approaches to budgeting:
- Overall planning and fuller utilization of the nation's resources. More equitable distribution of resources is expected to accelerate economic growth and raise the per capita income level.
- Prevention of the inflationary spiral.
- Coordination of the various branches of government and improved control of their use of limited natural resources.
Basic to the budget will be the compilation of information regarding the national economy, the government and its needs, and the state of private enterprise, society in general and foreign trade. Data will be collected for the calendar year and made available for use in planning the budget that will come into force on the following July 1.
To improve government service, a training center has been established under the new Personnel Bureau of the Executive Yuan. Those who pass the qualifying examination for government service will receive a month's training before their assignment to jobs.
Lectures at seminars will include educators, specialists and government leaders.
Reflecting the country's economic growth is Legislative Yuan approval of an expansion of the Ministry of Economic Affairs.
MOEA will have a second administrative vice minister and new committees on research and development and laws and regulations. A chief secretary will be added and a secretariat established, if necessary.
More overseas trade offices will be established. Under a new plan, foreign trade officers will return home periodically for consultations so as to keep abreast of rapid domestic economic change.
Personnel of the ministry will be augmented, especially in the middle echelons.
On a single day, ground was broken for 78 new junior middle schools throughout the island. These will be required in the program of nine-year free education starting this year. At a Taichung groundbreaking ceremony, Governor Huang Chieh referred to the occasion as the start of a new era. He said all of the schools should be completed in time for the fall term.
For the first year alone, Taiwan will need 134 new schools and more than 2,700 classrooms. These figures are exclusive of Taipei.
New schools will be so constructed as to serve as community centers as well as for educational purposes. They are roomier than present schools. Ventilation and lighting are improved.
From the Provincial Government came 1967 statistics that gave indication of what better life means to the people of Taiwan.
Calorie consumption increased to 2,455 last year and daily protein intake reached 62 grams. Textile consumption was 7.3 pounds, up from 5.9 pounds in 1960.
The new housing made available is reflected in per capita increase in use of cement: from 103 kilograms in 1960 to 156 in 1967. Household consumption of electricity virtually doubled in the same period: from 55 kilowatt hours a year to 10l.
Motorcycles increased by five times during the 1960-1967 period. Automobiles rose from 2 per 1,000 persons to 5 per 1,000.
P. Y. Hsu, the chairman of the Foreign Exchange and Trade Commission, told of the Republic of China's trade with the United States. He said Taiwan is buying about US$2.20 worth of goods from America for every dollar's worth it sells there.
In 1962, the ROC bought US$144 million worth of goods from the United States, and of this nearly 70 per cent was in the form of U.S. aid arrivals and surplus farm products.
In 1967, imports from the United States totaled US$294 million. Aid arrivals and surplus agricultural products amounted to only US$32 million.
Hsu said the Republic of China is moving steadily in the direction of free trade - and pointed to the many items that have been taken off the controlled import list in recent years. He expressed hope that U.S. efforts to reduce the dollar outflow will not be permitted to interfere with Taiwan trade, which already is highly favorable to the United States.
Total Taiwan foreign trade has increased by 250 per cent in the last decade, Hsu said, and the growth of exports exceeds that of imports in a proportion of 3 to 2.
He cautioned against complacency about trade.
He said manufacturers, exporters and government must work together to assure higher quality goods at low prices, good credit ratings and favorable export performance.
Textiles paced 1967 exports with a 60 per cent increase from 1966's volume of US$73 million to US$117 million. The Ministry of Economic Affairs is predicting another 60 per cent gain to US$150 million this year. Cottons are expected to do well in the first half of 1968 and synthetics to come up fast in the last half. The biggest impediments to faster textile growth are the import barriers erected by the United States, West Germany and Italy.
Another fast-growing export with excellent prospects is toys. In 1962, sales amounted to a piddling US$6,000. Last year's total was nearly US$2 million.
This volume is small, however, compared with Japan, which sells more than US$100 million worth of toys and Hongkong, which has been climbing toward the $100 million figure. Japan is shifting into electronic toys. This should open new markets for Taiwan's simpler but cheaper toys.
Industrialization is helping to cut Taiwan unemployment. Governor Huang said the unemployed dropped from nearly 250,000 in 1964 to 118,000 in 1967. Vocational training is important in helping to reduce the rolls of the jobless, he told the Provincial Assembly.
Minister without portfolio Tung Wen-chi said Taiwan will need 210,000 new workers and teachers within the next five years. He said 46,000 skilled and semi-skilled workers, 2,500 middle echelon industrial workers and 1,500 senior engineers will be needed annually beginning in 1968.
Coordination between industry and schools is essential in vocational training, Minister Tung told more than 80 educators and industrialists attending a vocational education seminar.
Minister of Economic Affairs K. T. Li urged that more private vocational schools and training programs be established.
Planning was under way by a specially appointed committee for the establishment of the island's first integrated steel plant. The first phase of the US$200 million project will be a US$80 million rolling mill.
The first US$30 million of the financing will come from the US$150 million Japanese development loan. Private capital and additional foreign investment will be sought plus the share to be provided by government.
Chao Yao-tung, a management specialist who helped set up South Vietnam's first big cotton textile mill, is heading the committee under the supervision of the Ministry of Economic Affairs.
Plans for the establishment of petrochemical complexes in southern and northern Taiwan were announced by the Chinese Petroleum Corporation.
Naphtha cracking equipment has been installed at CPC's' southern center and production of ethylene will begin this month to supply the raw material for polyethylene and polyvinyl chloride. Extraction capacity for aromatics from petroleum reformate naphtha will be expanded.
A sizable part of the ethylene will go to a polyethylene producer, the Taiwan Polymer Company, a subsidiary of the National Distillers and Chemical Corporation. The local PVC industry has been using high cost acetylene from calcium carbide and needs to shift to cheaper ethylene as raw material. CPC will therefore construct ethylene dichloride plants in the southern and northern PVC producing centers. The southern plant will use ethylene from the cracking plant, while that in the north will use ethane separated from natural gas liquid.
CPC's Kaohsiung refinery will have increased production capacity of 112,000 barrels a day by this summer, up from the present 62,000 barrels. New unloading facilities for crude are under construction in southern Taiwan and five 90,000-ton tankers will be built for CPC by the Taiwan Shipbuilding Corporation in the next three years.
Automobile competition for Yue Loong, currently the only producer, is expected to begin before the end of the year by the San Yang Industries Company, which is cooperating with Honda of Japan. The company has purchased US$2.5 million worth of equipment from Japan. Selling price of the San Yang small car is expected to be under US$1,500.
Free China reached out a helping hand to embattled South Vietnam. Inspired by Madame Chiang Kai-shek, a "Clothing for Vietnamese Refugees" campaign collected more than a million articles and a large sum of money.
From the government came a gift of 5,000 tons of rice. President Chiang Kai-shek called Ambassador Tran Thien Khiem to inquire about the Vietnam situation and the needs of refugees.
Representatives of Vietnam and the Republic of China discussed an increase of Chinese technical assistance in agriculture and other sectors. Eighty-five agricultural experts already are serving in Vietnam and 62 more will be dispatched.
Technicians from Taiwan also will help the Saigon government in power and railroad construction. Improvement of telephone and shipping services between Taiwan and South Vietnam is planned.
The Republic of the Congo (Kinshasa) also seeks more Chinese farm technicians. This was announced by Vice Foreign Minister Jean Umba-di-Lutete, who visited Taiwan for five days and had a 70-minute talk with President Chiang Kai-shek.
Opened in Taiwan in February was the ninth five-month seminar for agriculturalists from Africa. Fifty-eight students from 20 countries were enrolled. Attendance at the eight previous classes totaled 353 Africans from 29 countries.
Taiwan's own rice production goal will be 2.5 million metric tons for 1968. Planted area will be 837.000 hectares.
The island observed Farmers' Day with a mass rally at Taichung. Two hundred model farmers were honored. Governor Huang Chieh was their host at luncheon. Exhibitions of farm products were held at the Taichung and Taoyuan land reform museums.
Bananas, which have surpassed sugar as Taiwan's principal earner of foreign exchange, are facing competitive threats from Latin America, the Philippines and Thailand. Japan - the big market - is dissatisfied with the fall and winter supply. This is the season when supply is down and quality not so high as in spring and summer.
In 1967, Japan bought 8,730,000 baskets (100 pounds each) from Taiwan at a cost of US$63 million. The spoilage rate was down from 4.34 per cent in 1966 to 2.3 per cent. Taiwan will start using cartons for packing this year in an effort to cut spoilage still farther.
Growers, government and agricultural schools are cooperating in projects to raise fall and winter production and head off competitive bids for the Japanese market. The American-owned Union Fruit Company has already made experimental shipments of Latin American bananas to the Japanese market.
One huge agricultural project was completed with the analysis of 78,635 soil samples from 786,350 hectares of Taiwan paddy rice land. The tests were begun in 1960 by the Taiwan Agricultural Research Institute in cooperation with the Sino-American Joint Commission on Rural Reconstruction. The findings will help farmers determine the exact quantities of fertilizer, lime and other soil conditioners that are required for a specific piece of land.
Soil maps are being produced and distributed to farmers.
Another agricultural undertaking - begun in 1961 - is land consolidation. More than 100,000 hectares already has been consolidated. By 1977 the task will be completed for nearly 900,000 acres of farmland (exclusive of that used for orchids and tea). The working staff will be enlarged from 75 to 271 in the next three years.
Small pieces of land are brought together into areas of from six to nine hectares. The old boundaries are eliminated and better access roads and irrigation facilities provided. The cost is about US$100 per hectare. Production is increased by an average of 32 per cent. Land values go up as dry farmland is converted to paddy. Some 20 per cent is saved in labor costs and the use of irrigation water reduced by an equivalent percentage.
Harbors were busier in 1967, too. Kaohsiung on the southwest coast - the island's biggest port - handled nearly 8 million metric tons of cargo, an increase of about 600,000 tons over 1966. Ships calling at Kaohsiung totaled 3,453. This was 373 more vessels than in 1966.
Keelung, the port for Taipei, handled 5.7 million tons of cargo, up about a million tons. The number of vessels totaled 2,546. Keelung is nearing potential capacity and another port site is sought for northern Taiwan.
In air transportation, Kaohsiung's airport is being expanded in preparation for international traffic by the end of this year. Taipei is now the only port of entry for air carriers. The Kaohsiung runway is being extended from 1,700 to 2,600 meters to accommodate all jets currently in service.
When the Kaohsiung airport goes international, travelers will be able to enter the country at Taipei and depart from Kaohsiung or vice versa. This is expected to promote all-island tourism, much as the opening of Osaka to international travel spurred tourism in southern Japan.
Nearly 200,000 members of the Kuomintang (Nationalist Party) were mobilized for their annual two-week period of social service. About US$2 million worth of services was provided in addition to an earlier period of assistance for the needy of Taipei city.
This program was started by the Republic of China's majority political party in response to the call of President Chiang Kai-shek based on the teachings of the KMT's founder, Dr. Sun Yat-sen. The work includes free medical treatment, cash relief and improvement of environmental sanitation.
Taiwan got its first uniform traffic law in a 77-article act of the Legislative Yuan. Vice President and Prime Minister C. K. Yen said the statute will enable the government to improve the nation's traffic situation.
Penalties for traffic offenses are increased. The law also provides for the testing and licensing of motor vehicle operators. Minister of Communications Sun Yun-suan said that study of the law by drivers will lead to greatly improved traffic discipline.
The Provincial Highway Safety Commission reported that the vehicle-accident rate was down in 1967. Accidents involving injuries totaled 8,760 with 12,200 deaths and injuries. Careless driving led the list of causes.
As of the end of 1967, Taiwan had approximately 55,000 automobiles, 125,000 large motorcycles, 245,000 small motorcycles and scooters and 15,000 three wheeled vehicles. Bicycles numbered more than 2½ million but pedicabs were down to 20,000, a reduction of more than 20 per cent.
The new Culture Bureau of the Ministry of Education got its Chinese cultural renaissance program under way with a two-day observance of Drama Day.
Four Chinese drama troupes of the armed forces joined in a festival of favorite operas. A former star of Peiping opera, Miss Ku Cheng-chiu, came out of retirement to play one of the leading roles. She formerly had her own troupe.
Taiwan has three Chinese opera schools, one of which has just been taken over by the Ministry of Education. The Culture Bureau hopes that the Chinese theater can be made into one of the pillars of the renaissance movement.
Peiping drama is popular with the older generation of Chinese but has not caught on so strongly with youngsters, who have not had opportunity to see enough drama to develop a sense of appreciation. Television may help in this respect. Peiping and Taiwanese dramas are presented on TV several times every week.
Peiping opera combines theatrical values - those of music and song, acting, dance and acrobatics. The productions are highly stylized, however, and require an audience that has sufficient experience to appreciate the symbolism and traditional mannerisms.
Troupes from Taiwan have performed in the Americas and Southeast Asia with outstanding success. Now the hope is for improved training and the establishment of a repertoire theater with good performers and topnotch facilities.
Increased interest also has been evidenced in the production of modern drama. This tendency has been encouraged by the realistic trend that has entered free Chinese film making and by the nightly dramas that are being produced live on television.