Mr. Chairman, Delegates and Honorable Guests:
It is an historically significant day today, for the First Conference of the World Anti-Communist League is held here in Taipei in the Republic of China. This fact symbolizes the grand mustering of all humankind under an anti-Communist banner and manifests our determination to serve the cause of freedom and wipe out slavery. On behalf of the Government of the Republic of China I extend my warmest welcome and most sincere congratulations to you anti-Communist leaders from more than 70 nations.
Although the World Anti-Communist League is an outgrowth of the Asian People's Anti-Communist League, yet the instinct for freedom and against slavery has always been a part of the innate nature and conscience of humankind. The difference now is that with the inauguration of the World Anti-Communist League, we have developed a truly universal anti-Communist organization and can foresee that it will take action for freedom and justice.
Looking back on the history of anti-Communism, we find that the Republic of China was the very first nation to be severely afflicted by Communist evils. The Republic of China was also the first nation forcefully to expose Communist tyranny and to wash away the Communist evil with our own blood. At this opening session of the World Anti-Communist League, I should like to share with you my experience and the lessons I have learned in the last 40 years of my struggle against Communism. I speak as an old soldier, hoping my experiences will be helpful to other nations facing the same Communist threat and also of some value to each of you anti-Communist leaders.
The anti-Communist struggle is not a task for any single nation or region alone. It is the common mission of the entire world and of all humankind. As the Communists never limit their goal of aggressive expansion, the free people should not try to fight each of their own battles by themselves alone and run the risk of being defeated one by one. We must adopt a consistent strategy and take concerted action. In the past, we could see a united Communist bloc attacking a contentious free world. Our task today is to forge a free world unity and defeat the divided and self-contradictory Communist order.
It is to be regretted that the free world moves so slowly in resistance to Communist evils and is particularly sluggish in its undertakings to expose Communist wickedness, infiltration and chicanery. In some places, we have moved in the opposite direction. Many people have mistaken the perverse Communist ideology for symbols of "progress" and have euphemized Communist violence into "revolutionary" actions. At this very moment, some people still wrongly believe that the Chinese Communists are representatives of the Chinese tradition of virtuous rule, that the second generation of Chinese Communists may change its character, that the 700 million people on the Chinese mainland are a maneuverable asset for war, that Peiping's self-indulgence and cruelty can be mollified at the conference table, and that so long as the Republic of China is prevented from suppressing its domestic rebels, the world can live in peace with them. This fear of Communism and tendency toward Communist appeasement and these pro-Communist prejudices and illusions result from a failure to heed the bloody lessons that have inflicted immeasurable injury upon the free world. It is my hope that you far-seeing anti-Communist leaders can awaken these ignorant people to reality. The free world will then be able to correct its mistakes and clear up its psychological misunderstandings. Most of the appeasers will then turn round and decide to join in our efforts to prevent human dignity from being swallowed up in a miasma of Communist evil and tyranny. All of us seek peace. But peace cannot be won with random efforts and at no cost. We can win real freedom and honorable peace only by displaying courage in the cause of justice and by paying the cost in self-sacrifice. This determined will to victory in our anti-Communist struggle is a prerequisite to world peace.
Clearly, the danger of Communism in Asia results from the Communists' accidental stroke of luck on the Chinese mainland. Eradication of the Asian Communist menace calls for the removal of the Chinese Communists. The free world needs to concentrate its efforts on disposing of the Peiping bandits, who, of all in the Communist camp, are the cruelest and most hurtful enemy of humankind. Such strategy and action are the common responsibility of the free world. The Republic of China, which is engaged in suppressing the domestic Communist rebellion, is under a special obligation to take up this moral burden. With every passing minute and hour, China is sacrificing its blood and the lives of its people for the fulfillment of this task. We can unite with the 700 million anti-Communist people and with the vast anti-Communist forces on the mainland and, supported by the free world, destroy Peiping's vicious rule and prevent a nuclear holocaust. There is no need to call for the service of a single soldier from other nations of the free world. The free world will from then on be saved from the exhausting necessity of rushing to extinguish the flames of war which the Peiping regime ignite here and there and anywhere at will. The Chinese Communists have continuously been engaging in hot wars with Korea, India, and Vietnam and actually with the United States ... cold wars with Thailand, Burma and Malaysia ... subversion in Indonesia, Laos, Cambodia, Nepal, Africa and South America ... and chicanery and blackmail in Japan, the Philippines and Great Britain. They have deceived and bribed nations of the Middle East and Western Europe and even sown seeds of discord in the Communist bloc of Eastern Europe in an attempt to seize leadership. On the Chinese mainland, they have instigated the ignorant Red Guards to indulge in brawling and killing, thus implementing the heresy of "negating everything, suspecting everything, and pulling down everything" so as to destroy the 5,000-year-old Chinese civilization. The Chinese Communists have not hesitated to carry out 18 years of mass slaughter and enslavement and have stirred up a mighty turmoil by pilling themselves against the 700 million people of the mainland. They have killed tens of thousands of Koreans, Vietnamese, and Americans and have openly antagonized the whole world. Even the Communist bloc has come to despise these Communist renegades whose "conscience is as dirty as sewer water". Mao Tse-tung is crazed and fanatical. His regime faces collapse and disintegration from within. He cannot escape the doomsday that the free world will bring upon his regime from without. It is my confident belief that as soon as the Peiping regime is destroyed, all the evils and dangers that plague the world will swiftly vanish, for this is the only way to assure world peace and human freedom. An old Chinese saying puts it this way: "The evil will extinguish itself if the root is permanently removed." I am sure that with the inauguration of the World Anti-Communist League, you will be able to dedicate all your efforts to the removal of this evil root. You are promoting and creating an epoch of human freedom and happiness wherein the "evil will extinguish itself'.
Once again, I should like to express my sincere welcome to you upon your arrival in the Republic of China. I trust you will stay as long as possible, have a look at our anti-Communist activities and give us your valued counsel on how we can do better. We have shaped our national policy under the guidance of San Min Chu I—that is, under Dr. Sun Yat-sen's Three Principles of the People-even though we have scored only preliminary achievements. However, the harmony, happiness and freedom enjoyed by the people on this San Min Chu I bastion of freedom - this Taiwan province - afford a striking contrast as of white versus black to the scene of struggle, chaos, massacre, and terrorism prevailing under Peiping's tyrannical rule on the mainland. Our cultural renaissance is based on the natural benevolence of the Chinese people. The "great cultural revolution" of the Peiping regime is motivated by perversion of human nature and by hatred for the course that history has taken. The contrast is one between humaneness and brutishness, between life and death, between benevolence and malevolence. Our soaring anti-Communist morale and dauntless confidence in victory deserve your special attention. Guided by this great spiritual force, we shall consummate our sacred mission of national recovery and triumph in our struggle for freedom and against enslavement.
Finally, on behalf of the Chinese Government and people, I wish this esteemed League every success and wish each and every one of you the best of health.
Premier C. K. Yen's Oral Administrative Report To the 40th Session of the Legislative Yuan
September 22, 1967
Mr. Chairman, Members of the Legislative Yuan:
Your esteemed Yuan today is holding the first meeting of its 40th session. I feel it a great honor to be here to submit my administrative report. Twenty years has elapsed since constitutional democracy was first implemented in our country. The experience we have gained and the tests we have passed in this period are of great importance to our country and people. I wish to express my deepest respect for the sincere cooperation shown by all of your Yuan's members in perpetuating our constitutional democracy.
I have already presented you with a comprehensive written report on administrative progress in various fields during the first half of this year. It is not necessary for me to repeat that data today. However, the progress of our great undertaking of national recovery and reconstruction is closely related to the changing world situation. Consequently, I should like to take this opportunity to present my views on the changes taking place in the world and especially on the Chinese mainland and our policy toward these changes. Your comments will be welcome. In addition, I shall make some complementary remarks on a few important points in my written report.
Our Views of the World Situation
Superficially, both the democratic and Communist camps have been undergoing some changes. Neutralism is on the rise. The Communist camp is divided into "revisionist" and "anti-revisionist" factions. The bipolarity of the world powers has broken up into several strands of force. But in substance, the confrontation between the two blocs has not changed. To put it another way, the world struggle is still between democracy and totalitarianism and between freedom and slavery.
We consider that, although the cold war is temporarily less intense, the Communist bloc has never desisted from aggression and still seeks to conquer the whole world. In fact the Communists are seizing every opportunity to use the "cold peace" in facilitating their expansion.
The Chinese Communists are a gang of fanatics obsessed with a philosophy of violence. Their ruthlessness, bellicosity and rash determination to attain hegemony through nuclear war have gone so far that they no longer can be restrained by rationality. Their continuing occupation of the Chinese mainland has become the greatest present menace to the peace and security of humankind. For this reason, our President has repeatedly pointed out that "the root of world troubles is in Asia and the root of Asian troubles is on the Chinese mainland". Unless the Peiping regime is overthrown, this will not be changed.
World developments in the last six months have time and again exposed the Communists' ambitions to conquer the world and the falsity of their "cold peace" pretensions. The contest for hegemony within the Communist camp has resulted in ceaseless chaos and confusion. Enhanced vigilance is required on our part.
Middle East Conflict
The Middle East conflict has treacherously stirred up a vortex in the "cold peace" sea. It also has brought about a new climax in world affairs. The conflict between the Arabs and Israelis has its historical roots. At the same time, the Communist International has always attempted to extend its influence. Taking advantage of this conflict, the Communists sought to cause new troubles for the free world. Their intrigue is self-evident.
The Chinese Communists have been infiltrating the Middle East for a long time. At the outset of the conflict they called for "settlement of the problem through war". By adding their fuel to the flames, they hoped to take advantage of the confusion involved in the conflagration, and to step up their subversion in the Middle East and North Africa.
During the Arab-Israeli conflict, we repeatedly urged the two parties to exercise self-restraint in the hope of alleviating tensions and restoring peace. At the same time, we have supported the United Nations and placed our confidence in that organization to find a solution.
We have deep sympathy for the Palestine refugees. In addition to our vote for the relief resolution at the United Nations, we offered relief money and materials to Jordon, which suffered the most during the recent conflict.
Vietnam War:
Crux Between Freedom and Slavery
The Vietnam war is still the decisive element in determining whether we shall have a world of peace or peril. It is also the most trying and the bitterest round of the confrontation between the free world and the Communist bloc. The determination of the United States and Its allies to stop aggression in Vietnam has frustrated the Communist program to take over Southeast Asia and has safeguarded the peace and security of free Asia.
The present stalemate on the Vietnam front is the result of behind-the-scenes maneuvering of the two Communist masters, Moscow and Peiping, both of which are doing all they can to display their bellicosity. Under the whip of its masters, Hanoi has no choice; it can only serve as the vanguard of aggression and the tool of those who fight the war by proxy. The Chinese Communists are using Vietnam as a testing ground for their theory of "people's war". If Hanoi is successful, the Chinese Communists will surely mount the same kind of conflict in other areas.
We have steadfastly believed that the outcome of the Vietnam war will decide the fate of humankind and the future of the world. For this reason, the free world must summon the determination to seek victory and formulate its strategy on a basis of such determination. Then it will be able to end the present stalemate and win a glorious peace.
We are a member of the free world standing on the foremost front of anti-Communism. We therefore shall dedicate ourselves to the support of any action that is intended to combat Communist aggression. We have given various kinds of service to the Saigon government. We will continue and strengthen our service. At the same time, we know that the Communists are always trying to impede tile free world's assistance to South Vietnam. The cowardly attack of Communist terrorists on the Chinese Embassy in Saigon several days ago was an attempt to damage the amicable solidarity between the Chinese and Vietnamese people. The incident was another shameless crime of the Communists. Nevertheless, the courage and loyalty shown by all the Embassy staff members, led by Ambassador Hu Lien, suffices to show that Sino-Vietnamese friendship and cooperation will be further consolidated.
Communist Riots in Hongkong
The ugliest Communist harassment of the free world in recent years is unquestionably Peiping's export of "Red Guard" vandalism to Hongkong. We believe the Peiping regime has exported violence to Hongkong in the pursuit of four objectives: (1) With Macao as a precedent, the Chinese Communists hoped to intimidate the Hongkong authorities into taking suppressive measures against the anti-Communist Chinese and their organizations in order to eliminate anti-Communist influence in the British crown colony. (2) Peiping sought to cover up internal mainland chaos by diverting the people's attention through external violence. (3) It sought to block the road to freedom for the mainland people. (4) The Chinese Reds are trying to blackmail the Hongkong government politically. If this conspiracy should succeed, the Chinese Communists would not hesitate to go ahead with similar harassment of all Southeast Asia.
However, the Peiping regime has failed to attain any of these goals. It has misjudged the strength of the anti-Communist overseas Chinese in Hongkong. The overseas Chinese showed their defiance and indignation from the very start of the ugly farce. This determined anti-Communist stand has encouraged the Hongkong authorities to take measures to suppress the rioters.
We have been following developments in Hongkong closely. We admire the patriotism of the overseas Chinese and are concerned about their situation. We are prepared to take effective measures to give them necessary assistance and support.
We are sure the Chinese Communists will never put their hands back in their sleeves after this failure. They may exert themselves and try to continue the harassment for a long time. Indication of this can be found in their assassination of righteous persons. We must continue our vigilance and be prepared to crush their new plots.
To stir up disturbances in the free world is a familiar trick of the Communists to facilitate infiltration and subversion. In the last six months, many incidents of sabotage of various kinds have been observed in India, Burma, Indonesia, Cambodia, and Kenya. Invariably, the Communists have been involved in one way or another.
All this shows that the Communist bloc never tempers its ambition to communize the world. Every disturbance in the world today is related to Communist conspiracies. The Chinese Communists have reached a point of insanity where they are starting disturbances everywhere and vowing to sacrifice the lives of hundreds of millions of Chinese in a nuclear war. Peiping is the source of all these disturbances. For this reason, we have repeatedly pointed out that world peace is indivisible and that the center of world gravity is in Asia. To solve the world problem we first must end the chaos in Asia; to end the chaos in Asia, we must destroy the Chinese Communist regime.
Peiping Is Accelerating Its Downfall
The Chinese Communists—so skilled in stirring up disturbances abroad—are in a state of chaos at home. Their situation has gone from bad to worse in the last six months. Judging from every piece of evidence, the Chinese Communists arc accelerating their own downfall.
The following are our observations and our analysis of the current situation on the Chinese mainland:
First, the "great proletarian cultural revolution" eventually must end in failure. The Chinese Communists initiated this fanatical movement in an attempt to extinguish the spontaneous mainland ignition of anti-Mao and anti-Communist flames. The movement has suppressed a huge amount of anti-Mao and anti-Communist literature, persecuted many anti-Mao and anti-Communist cadres and anti-Communist scholars, and resorted to atrocities m trying to destroy the traditional Chinese culture of the masses. Mao Tse-tung thought that in doing so he could secure his own position and protect his regime. However, the movement could neither eliminate the influence of traditional Chinese culture so deeply rooted in the hearts of the mainland people nor suppress the mainland people's opposition to Communist tyranny. Now the Chinese Communists are facing strong resistance from both inside and outside their Party, and the whole of the Chinese mainland is in a state of anarchy. A powerful anti-Mao and anti-Communist storm is in the making.
Second, the "People's Liberation Army" has changed its attitude from one of negative neutrality to that of positive intervention in the anti-Mao struggle. In view of the increasing strength of resistance in various localities, Mao Tse-tung last January changed his decision to keep the army out of the intra-Party struggle. He directed that the army seize power in the name of the so-called "three-way alliance". Mao Tse-tung at first thought the resistance forces could be quickly subdued once the army intervened. Contrary to this expectation, part of the army not only ignored his order but joined local anti-Mao and anti-Communist elements in their positive anti-Mao struggle. Thus the mainland is partitioned in terms of power and the areas of armed struggle are expanding.
Third, the ubiquitous mainland rampages of the "Red Guards" have led to the formation of a huge anti-Mao and anti-Communist union of workers and peasants. The violence the "Red Guards" have directed against city dwellers, factory workers and rural areas has led to an all-out counterattack by workers and peasants. Thousands of peasants and workers have run away from production lines to besiege cities and fight the "Red Guards" and pro-Mao elements. This has developed into a widespread anti-Mao and anti-Communist battle of workers, peasants, students and the masses. the Wuhan incident of July may be taken as an example. Workers and peasants there gained the support of the local militia or the army. The result was the gradual association of the anti-Mao strength within the Party with the anti-Communist strength of the masses. This situation is still developing.
Fourth, the sixth nuclear test of the Chinese Communists inevitably will bring about a wider and more violent anti-Mao and anti-Communist struggle on the mainland. The Chinese Communists carried out their sixth nuclear test when the U.N. General Assembly was holding an emergency meeting to discuss the critical situation in the Middle East and at a time when the Vietnam war was reaching a crisis and when the "cultural revolution" was destroying the mainland economy and engendering food shortages. Peiping's purpose was to conceal the failure of the "cultural revolution". On the one hand, the Chinese Communists used the nuclear test to instigate and provoke crises in Vietnam and the Middle East. On the other hand, they used the test as political blackmail to threaten the democracies and accelerate international appeasement. In fact, however, Peiping's ignoring of the people's suffering has stirred a deeper resentment against the regime and has strengthened the tides of the anti-Communist and anti-Mao movement.
Fifth, the Chinese Communists have become increasingly isolated in international politics. Their dogmatic foreign policy has gone to new extremes. They have tried to export Mao-thought, to frighten the mainland people with "Red Guards", to carry out infiltration and subversion and fabricate confusion in foreign countries, and to threaten the people of other countries with nuclear attack and "people's war". Nevertheless, each test has only brought more condemnation and each disturbance has roused increased disgust on the part of foreign governments and has deepened the hatred of overseas Chinese. This preposterous behavior has made more enemies for Peiping and bas given further assurance that the regime is doomed to failure. At the 11th plenary session of the Eighth CCP Central Committee in August, 1966, and the plenary session of the Russian Communist Party Central Committee in December of 1966, Peiping and Moscow formally announced their hostility toward one another. Since then, there has been no· more talk of "resumption of solidarity" between the two Communist regimes. Since Peiping's nuclear test last June, the Peiping-Moscow relationship has deteriorated further.
The Chinese mainland situation is chaotic. The internal structure of the Chinese Communist Party has been disrupted and the organization of the Party and the government is paralyzed. Agricultural and industrial production is decreasing. The whole of the mainland economy is on the verge of collapse and many of the people are starving. As I said before, the Chinese Communists are accelerating their own downfall.
Favorable Change in the International Situation
We can be gratified that the international situation has changed in our favor during the last half year as a consequence of multilateral and bilateral diplomatic undertakings that have brought us moral support from abroad.
In East Asia and the Southwest Pacific, a new spirit of self-confidence and cooperation has emerged and has helped to enhance Asian security. Several previously pro-Chinese Communist countries recently have come to their senses and changed their attitude toward the Peiping regime. At the second Ministerial Conference of the Asian and Pacific Council held in early July of this year, representatives of the participating nations expressed deep interest in the upheaval on the Chinese mainland and the power struggle within the Chinese Communist Party. They suggested the final outcome of this mercurial situation will have a strong influence on the future of the Asian and Pacific region.
Special attention was given to the threat that the Chinese Communist nuclear tests pose for the nations of this region. The conference reaffirmed basic principles and stressed the unity of free Asian and Pacific nations in combating external aggression and in developing economic, social and cultural cooperation to accelerate progress and prosperity and thus strengthen defense against outside threats. The conference expressed sympathy for the Republic of Vietnam and reiterated the objective of an honorable and permanent peace in that country.
Relations between this country and its neighbors of the Western Pacific region have been increasingly close and harmonious in recent months. The Prime Ministers of Thailand, Australia and Japan have visited Taiwan. I led a mission to attend the inauguration of President Park Chung Hee of Korea. Our country has drawn closer to the Philippines, Vietnam and New Zealand. Malaysia established a consulate in Taipei last February to strengthen political, economic and cultural ties with the Republic of China. On the common ground of anti-Communism, this nation has been able to improve its relationship with various friendly nations.
Since Burundi, Dahomey, the Central African Republic and Ghana severed relations with the Chinese Communists, the number of African nations maintaining diplomatic ties with the Peiping regime has been reduced to 14. In recent developments, Kenyans smashed a Chinese Communist propaganda show window and Nairobi and Peiping deported each other's charge d'affaires. Ghana has announced that its foreign policy is being changed to oppose the proposal to unseat the Republic of China in the United Nations. Tunisia sent a goodwill mission to Taiwan in February. These events offer ample evidence that most African states now have a clear understanding of the Chinese Communist designs of infiltration and subversion and hold Peiping's tactics in total contempt. This nation has diplomatic ties with 18 African states. We have 17 agricultural teams and 2 veterinary teams in Africa. The 551 technicians from Taiwan now in Africa are helping to strengthen the bonds of friendship through the development or Africa's agricultural economy,
Vice Minister of Foreign Affairs Yang Hsi-kun left Taiwan early in July on another trip to Africa. He will visit more than 20 African nations m three months as a special envoy for the purpose of strengthening friendship.
In recent years, both the governments and people of Central and South America seem to have become increasingly aware of the dangers of Communist infiltration. Firm and effective political, economic and military anti-Communist measures have been taken by these nations. At the second summit conference of the American nations in April, chiefs of state of Latin America agreed to establish a Common Market and promote the Alliance for Progress. These decisions confirm the strong desire of the American peoples for freedom, justice and democracy, as well as their determination to resist Communist conspiracies.
Vice Minister of Foreign Affairs Sampson C. Shen reported good results from his visit last February, March and April to 10 South American and Caribbean nations as a special envoy of this country.
In Europe, most of the nations having diplomatic ties with the Peiping regime have met with endless harassment. The attack on the British Chancellery in Peiping and the persecution of the British Charge d'Affaires constitute a strong warning to nations which still cherish illusions about Peiping.
In North America, relations between this country and the United States continue to develop constructively. My visit to the United States in May was one facet of our efforts to expand the friendship and cooperation of the two nations. Canadian attitudes towards the Chinese Communists have changed during this period. I am scheduled to visit Canada next month as President Chiang's personal representative on the occasions of Canada's centenary and to preside over China Day at Expo 67 in Montreal. This visit reflects the closer relationship between this nation and Canada.
We are still maintaining our right position in the United Nations and other international organizations. The 22nd General Assembly of the United Nations was opened on the 19th of this month. The question of our representation again was brought up by Albania and several other countries. With Foreign Minister Wei Tao-mmg leading our mission, we are confident the plot to seat the Chinese Communists will meet with another defeat.
It is our conviction that any nation of the free world, comparing the security and progress of the Republic of China in Taiwan under a tree democratic system with the chaos and brutal rule or the Communist totalitarianism on the Chinese mainland, Will make the right decision.
Honorable Members: I have pointed out in my administrative program that our basic policy today is to "construct Taiwan and recover the mainland". As we strengthen our construction efforts, we are also making important preparations for recovery of the mainland. The government is directing its energies to the accomplishment of both goals.
Besides redoubling our efforts in various fields to cope with world developments, we have emphasized the strengthening of construction and security in this bastion of national renaissance during the last six month. I shall report briefly on several important measures taken in line with this basic policy. I hope for your comment.
Actively Strengthening Combat Preparations
In national defense, we are continuing to strengthen the security of this island bastion in accordance with our established policy of preventing the Chinese Communists from launching a surprise attack. At the same time, we are making positive preparations for counter-attack.
Among our defense measures, we have made every effort to fortify the offshore islands and strengthen the garrison or the rear in order to assure the security of Taiwan. Our military preparations have three key aspects: First, improvement of the training of the three branches of the armed forces and expansion of the reserved; second, increased production of ordnance and the strengthening of logistics With the establishment of more plants for munitions and other equipment; and third, the regularizing and adjustment of material mobilization and the development of military science and research to support our combat potential for national recovery. In the production of ordnance and other equipment, we are marching toward supreme goal of self-sufficiency and much progress has been made. In underground activities behind the enemy lines, our objective is to enlarge the network, boost the strength of underground armed forces and initiate and promote anti-Communist and anti-Mao activities.
As one means of maintaining the vigor of the armed forces, we are continuing to strengthen vocational assistance to retired servicemen. In the first six months of this year, 4,817 retired servicemen were helped, bringing the total to 161,672. They have been assisted with jobs, education, medical care and old-age pensions. To resettle more retired servicemen and improve their vocational capabilities, the government has operated agricultural, forestry, fishery, mining and construction projects and conducted on-the-job training.
The lively spirit and high morale of our armed forces demonstrate their readiness to carry out the holy task of mainland recovery at any time.
National Cultural Renaissance Movement
The crux of our success in suppressing the Communist rebellion lies in uniting military power with the moral strength of our people. This can be achieved through implementation of San Min Chu I (the Three Principles of the People) and renaissance of Chinese culture. President Chiang pointed out some time ago: If we trace the present anti-Communist struggle to its origin, we find that it is basically a mental and cultural struggle. Last year, President Chiang designated Dr. Sun Yat-sen’s birthday as National Cultural Renaissance Day. The entire nation joined in launching the Cultural Renaissance Movement. We believe that this is a step of inestimable significance in the direction of national recovery and reconstruction. This is especially true now, when the Chinese Communist have reached the eve of their downfall and when they already have willfully abandoned every trace of traditional Chinese culture. The National Cultural Renaissance Movement represents the all-out march of San Min Chu I on the Chinese mainland.
Although people throughout the nation have responded to the Movement, the government still cannot shirk its responsibility to chart the course, to coordinate and demonstrate the various projects and in general to provide guidance. In the last half-year, all departments of the administration—especially those concerned with social education, military literacy, cultural activities, formal education and international information have made the Movement their central task. On July 26, a Cultural Renaissance Committee was established with President Chiang as Chairman and Sun Fo, Wang Yun-wu and Chen Li-fu as Vice Chairmen. The Committee has already adopted working plans to transform the Movement from the stage of discussion to t hat of action. All government functionaries will work hard to make this Movement a success.
We believe ever more strongly that it is fitting for Taiwan to be starting point of the Cultural Renaissance Movement, and that the Movement should be extended into all overseas Chinese communities so that the Chinese of both Taiwan and foreign lands can make their contributions, In August we held the Overseas Chinese Conference on Education and Culture attended by more than 200 overseas Chinese educational and cultural leaders from all parts of the world and about 100 local cultural and educational leaders. The conference confirmed the measures and direction of future cultural and educational activities for overseas communities and pledged to unite overseas compatriots in the campaign for the renaissance of Chinese culture.
We also feel the need for a comprehensive organization to coordinate the National Cultural Renaissance Movement and to mobilize the cultural world, thereby strengthening cultural combat capability against the Chinese Communists. Consequently, we have decided to set up a Cultural Bureau under the Ministry of Education. It will assume responsibility for guiding the development of cultural affairs and for enlarging our accomplishments in cultural warfare. I thank you for your kindness in approving the Organic Law of the Bureau, which will be established soon.
Administrative Renovation
President Chiang once observed: "Administration forms the basis of government; we must proceed with administrative reforms before proceeding with overall reforms." In truth, as the time for national recovery draws near, administrative reforms must be carried out to meet the needs of the mobilization to suppress the Communist rebellion; otherwise, we cannot accomplish the task of national recovery. In my last oral report, I mentioned that the administration would undergo a far-reaching re-evaluation.
Based on the result of this reevaluation, the Executive Yuan formulated the "Outline of the Comment on the Evaluation and Renovation of Administrative Organizations". This outline has become the basis for measures of innovation. The main points deal with responsibility and authority, personnel, rules and regulations, systems, and organization. In principle, we should see that the Central Government and the local governments do their utmost to coordinate their activities, accept their responsibilities and exercise their full authority. The responsibility and autonomy of the various branches of the Central Government will be adjusted, if necessary. For personnel reform, the Executive Yuan has added a Personnel Bureau. Its main work will be to take up the tasks of improving personnel management, building up a reserve of talents, studying government organizations, implementing training measures, enforcing retirement plans and improving salaries and the welfare system. Rules and regulations are now too numerous and complicated; thorough reform is essential. Within the Executive Yuan we have already set up a temporary committee to revise and simplify the rules and regulations. The Executive Yuan's Committee on Statutes will be expanded into a Statute Bureau and statute sections will be established in each ministry and in other principal government organizations. The Executive Yuan is planning four administrative systems to provide the basis for reform of other systems to be established later. These four are: (1) a system of delegating responsibility and authority; (2) a system of research and evaluation; (3) a system of independent general affairs management; and (4) a system of centralized disbursement through the national treasury. To implement these reforms, the organization of some government offices must be adjusted so as to strengthen their functions. Some new organizations must be established to meet actual needs.
We know that administrative reform is a long-term undertaking but are determined that it will become a turning point in our national destiny. The reform will call for a series of measures. Some of them must be enacted into law and others may involve budget changes. We shall send them to you for consideration and hope you will not hesitate to give us your counsel.
Reorganization of Taipei Municipality
In my oral report to the 39th session of your esteemed Yuan, I mentioned that, in view of the city's increasing importance as war-time capital and to meet the need of this island bastion for national recovery, the Executive Yuan had decided to elevate the status of Taipei City to that of a special municipality under the direct jurisdiction of the Executive Yuan. Through half a year's positive preparations and coordination of the various organizations concerned, the status of Taipei City was formally elevated on July 1 of this year.
After Taipei has become a Special Municipality, its administrative organizations and the implementation of its self-government will be handled in accordance with Article 2 of the Taipei Special Municipality Organic Law. Meanwhile, the rules and practice involved in establishment of the Provincial Assembly and in the implementation of the city and Hsien (county) self-government in Taiwan must be taken into consideration. Before the Laws Governing the Self-Government of the Taipei Special Municipality are promulgated, the subject matter has to be handled in accordance with "The Implementation Outlines for Administrative Organizations and Self-Government of the Taipei Special Municipality" stipulated by the Executive Yuan.
The administrative boundaries of the Taipei Special Municipality have been set up in the light of geographical conditions and water resources. With the Tamsui River and the Hsintien River used as demarcation lines, Taipei's original area plus the six townships and villages of Peitou, Shihlin, Neihu, Nankang, Mucha and Chingmei that originally were under the jurisdiction of Taipei Hsien have been included in the administrative area of the Taipei Special Municipality. The Yangmingshan Administration also has been placed under the Taipei Municipal Government. Because the demarcation of administrative districts takes a considerable time, as required by the relevant rules, the transfer of jurisdiction over these districts has to wait until June, 1968, when the tenure of incumbent mayors and magistrates will expire. Until that time, the Taipei Municipal Government, the Taipei Hsien Government and the Yangmingshan Administration will carry out duties as before.
Implementation of the Nine-Year Compulsory Education Program
Compulsory education is fundamental in any country. Articles 21 and 160 of the Constitution of the Republic of China provide that school-age children must receive a period of compulsory education. In view of the educational trends of the world, the government feels we no longer can be satisfied with six years of compulsory education. Consequently, a nine-year period of compulsory education has been planned. In two previous reports to your esteemed Yuan, I have pointed to the multipurpose program of voluntary education of primary school graduates as a phased attainment of the nine-year objective.
In June of this year, the President instructed us to muster all social resources so as to extend compulsory education, to improve the next generation of the nation and to realize educational reconstruction in this model province of San Min Chu I. Last August 17, the President issued this directive: "In order to elevate national intelligence and strengthen the anti-Communist and national reconstruction forces, the projected nine-year compulsory education program has been referred to the National Security Council for discussion in accordance with Article 4 of the Constitutional Temporary Provisions Effective During the Period of Communist Rebellion. The third session of the Council decided that compulsory education should be extended to nine years with initial implementation in the Taiwan and Kinmen (Quemoy) areas during the 1968 school year. A special law should be drafted and enacted to provide for the detailed implementation of the nine-year compulsory education program. Action should be taken immediately in accordance with this decision." In accordance with this directive, the Executive Yuan is drafting a special law to be submitted to your esteemed Yuan for discussion. In addition, an "Implementation Outline for the Nine-year Program of Compulsory Education" has been agreed upon and issued to the ministries and commissions, the Taiwan Provincial Government and the Taipei Municipal Government to serve as a basis for planning. These are the highlights of the outline:
1. Compulsory education is divided into two phases: Six years of primary education and three years of junior middle school education. But the courses run consecutively throughout the nine years.
2. Junior middle schools will be divided into districts. Graduates of primary schools will be assigned to a specific school and will enter without examination or payment of tuition.
3. Those who were graduated from primary schools up to the 1967 school year, who are under the age of 15, and who wish to receive further schooling will be assisted to enter junior middle schools through examination or helped to obtain supplementary education and technical training.
4. The subjects of study in junior middle schools will be revised. In addition to the basic subjects of cultural development, vocational training courses will be intensified to prepare for employment as well as further schooling.
We implement the nine-year compulsory education program with these objectives in mind: (1) To develop manpower to meet the needs of national reconstruction and to expedite social and economic advancement. (2) To elevate the quality of citizenship in keeping with the world educational trend. (3) To eliminate the practice of cram sessions in order to enhance the mental and physical health of children and normalize education. (4) To increase the people's capability and opportunity for employment and promote the national income.
We realize that to accomplish such an arduous and monumental task we shall meet many difficulties, including the raising of the funds, the recruitment of teachers, the acquisition of school sites, the establishment of the school system, the revision of educational materials, the rearrangement of school districts, the emphasis of vocational education, the reorientation of private schools and the improvement of primary school education. We are convinced that we shall be able to solve these problems successively and attain the final objective. We are actively preparing for implementation of this program.
Intensified Development of Science
We always believe that promotion of the nation's strength depends on scientific research and development.
Since the National Security Council was established, the Committee for Science Development has been in charge of long-range formulation of policies and directions for science development. The National Council on Long-term Science Development was under the Executive Yuan. With a view to providing unified planning and close coordination for science education, productive construction, and national defense science, the original organization and functions of this agency had to be appropriately adjusted so as to assure the most effective utilization of funds, talents, facilities and data. The Executive Yuan therefore has reorganized it into the National Science Council and is drafting its organizational rules for your discussion and review.
At present, our guidelines for science development are set on two courses-science education and research. Science education needs adequate and new educational materials, facilities and teachers. Science research should envisage the cultivation of talents in advanced theory and applied science as required by national reconstruction and national defense. This will provide the momentum for overall progress.
During my visit to the United States last May, President Johnson offered to send his senior science adviser, Dr. Donald F. Hornig, to China to help us with our scientific and technological research and development, to discuss Sino-American scientific cooperation, and advise us on scientific and technological problems. He and his survey mission arrived in Taipei on September 17.
Economic Growth
The economy maintained steady growth in the first half of 1967. Agricultural and industrial production showed gains. According to preliminary estimates for the January-June period, agriculture grew at a rate of 4.6 per cent and industry at a rate of 19.3 per cent, comparing favorably with the growth in the corresponding period of 1966.
Foreign trade had made progress. Export volume in the first six months of 1967 was US$338 million. Imports paid for with government foreign exchange were estimated at approximately US$275 million. There was a favorable balance of US$63 million. If imports of U.S. aid, amounting to US$21 million, and imports paid for with self-financed foreign exchange, amounting to US$41.5 million, are included, the total imports were about US$337.5 million and we still had a favorable balance of US$500,000.
Improvement of the investment climate continues. Gains include the simplification of investment and export procedures, continued development of industrial areas, improvement in the management of the Kaohsiung Export Processing Zone and more assistance for middle and small-sized enterprises.
Preliminary calculation of important economic figures for 1966 has been completed. The gross national product rose to NT$124,854 million, an increase of 10 per cent over the previous year. Allowing for price fluctuations, the net increase was 8.1 per cent, higher than the original goal of 7 per cent. National income reached NT$100,867 million, an increase of 9.8 per cent over the previous year. The net increase rate was 6.8 per cent. Per capita income was NT$7,559, an increase of 6.8 per cent. The agricultural growth rate was 5.9 per cent and the industrial growth rate 13.7 per cent. Wholesale prices in Taipei averaged 1.5 per cent higher than the previous year. However, the present price index is lower than that of 1963. Commodity prices are generally steady.
The present stage in the economic development of this country has aroused international attention and interest. When the Conference on Sino-American Cooperation in the Humanities and Social Sciences was scheduled in Taipei last year, American economists suggested that a Sino-American economic conference be held so they could gain a better understanding of Taiwan's economic development and could discuss ways to improve economic research. The proposal was accepted. The Conference on the Economic Development of Taiwan was convened in June and was attended by Chinese and U.S. economists, and some 60 observers from international economic and monetary institutions. These economists gained an increased understanding of our economic situation and presented a large number of views that the departments concerned are now considering.
During the last six months, the government has attempted to enhance foreign friendship and domestically bas sought to improve the livelihood of the people. The national policy of the "reconstruction of Taiwan and the recovery of the mainland" is the guiding principle of every administrative measure of the government. In brief, our efforts are directed toward: promotion of social construction, improvement of self-government, increased implementation of the equalization of urban land rights, maintenance of financial and monetary stability, expansion of communications and other public projects, improvement of the judiciary and prosecution, enlarging of contacts with the Mongolian and Tibetan people at borne and abroad, guidance of overseas Chinese activities, promotion of international economic cooperation, increase of publicity operations, and strengthening of budgetary controls. The pay of servicemen and government employees has been increased since last July and we are studying further means of adjustment on the basis of a unified pay scale. All these measures are involved in the execution of national policy. We seek to improve ourselves and shall never fall into complacency. Ladies and gentlemen, I sincerely hope you will give us your guidance and support. The world situation is gradually turning in our favor. We should do our utmost to speed and carry day of victory.
We are wholly confident that under the eminent leadership of President Chiang Kai-shek, we shall accomplish our sacred mission of mainland recovery at an early date through united and unremitting efforts. I thank you.