Honorable Members of the Legislative Yuan:
A written report on the work of the Executive Yuan for the first half of this year has already been sent to you. To avoid repetition I am going to confine my remarks today to recent developments at home and abroad. I shall comment, in particular, on the Communist bloc's strategy of intimidation against the free world, present conditions on the mainland, the problem of our counter-offensive and our preparations for national recovery.
The situation in Cuba has taken a turn for the worse. The Berlin crisis has come up again. Domestic troubles are brewing in several countries in the Middle East and Africa. Apparently the Soviet imperialists have started an all-out political offensive against the democratic countries, and as a result the whole world is in commotion. Laos has virtually fallen under Red control, fighting is raging in Vietnam, and tension persists in the Taiwan Straits. All these show that the Chinese Communists are positively pursuing their scheme of political infiltration and military adventure. The present international situation is such that the cold war is getting more intense and localized hot wars are unavoidable and in fact may start at any moment and spread to other areas.
All these deliberate actions of aggression of the Communist bloc have stemmed from the resolutions of the XXI Congress of the Russian Communist Party. In creating unrest and chaos everywhere in the world, the ultimate Communist aim is to defeat the United States. This coincides with the ancient Chinese saying, "Race an inferior horse against a superior one, a superior horse against an ordinary one, and an ordinary horse against an inferior one." The initial tactics is to weaken the stronger partner in an alliance by attacking its weaker partner first. Finally, the superior horse of the other side will be isolated and tired out. The Soviet bloc has been using this method to create one world-wide crisis after another so as to harass the United States. Meanwhile it seeks to frighten people everywhere by threatening nuclear warfare, hides itself behind the mask of peace and offers aid by way of seduction. By alternately using the above-mentioned three devices, they hope to achieve manipulation, infiltration and seizure, which represent the three stages in the Soviet scheme of steady aggrandizement at the expense of the smaller states.
In point of strength, the democratic bloc is still superior. But in order to resist Communist aggression, all anti-Communist countries must strengthen their mutual assistance and cooperation through organization and planning so that each country will be able to meet its own responsibilities and at the same time be able to coordinate its efforts and seize the initiative in international situation for the purpose of striking at the Communists. The Republic of China is guarding the outpost of the anti-Communist front in Asia. Our paramount duty is to recover the mainland by destroying the Chinese Communist regime and thus to remove the root of all evils in the Orient. If our efforts in this respect should succeed, Asia will be free of danger and the international situation will acquire a new look.
In the past year, the serious economic difficulties and fear of famine which the Chinese Communists have brought about on the mainland are now known all over the world. The mass flight of people from the mainland last April aroused worldwide attention. Recently a number of railroad depots, radio stations, military camps, warehouses and ammunition dumps were dynamited and destroyed. These activities against Communist tyranny clearly show that the Communists have used up all their tricks to deceive the people on the mainland. What is more important, they show that the Communist way of maintaining control by brute force has proved to be of no avail.
People in foreign countries by and large have come to comprehend the worsening situation on the mainland, but they still entertain doubts, have reservations and hold divergent views regarding the problem of our counteroffensive.
Recalling the failure of the Hungarian revolution and the fiasco in Cuba, some people doubt whether our counter-offensive can succeed. Actually, these two incidents are totally different from the situation facing us today. The Hungarian masses who fought against Russian tanks did not have a free Hungarian government to lead them and help them. The anti-Castro patriots of Cuba were not strong enough and, therefore, failed. But over on the mainland, we have 600 million anti-Communist compatriots. Here on Taiwan we have the strong leadership of our legitimate Government, the determination of patriotic and valiant armed forces and civilians and also the allegiance and support of Chinese people abroad. The Chinese Communists cannot possibly resist this combination of internal and external forces.
Others believe that without Soviet Russia's support, the Chinese Communists will not dare to attack Taiwan, nor is it easy for us to launch the counteroffensive alone. This is absolutely wrong. In carrying out their aggression against us, the Chinese Communists have different purposes and use different means. They can have multiple objectives and are highly flexible in their methods. If the Chinese Communists are to launch an all-out invasion, it will be part of Soviet Russia's overall plan of conquest. But if provocation under certain circumstances could lead to successful results, that is what Soviet Russia wants.
As for our counter-offensive against the mainland, our consistent principle is to carry out our set national policy by relying on our own strength. The recovery of the mainland not only concerns the survival of the Chinese nation, but also is closely related to the fate of the free world. Naturally we hope all friendly nations will help us, but we do not expect them to send their sons to shed blood or die for us in our counteroffensive against the mainland.
Still others are concerned over the consequences if our counter-offensive should suffer setbacks. On the other hand they fear that our victory may lead to Soviet Russia's participation in the war and may thereby trigger a global conflict. As for possible failure, we are convinced that our counter-offensive is primarily a revolutionary war, and its outcome hinges on popular feelings rather than military power. We are convinced that once hostilities break out, the people on the mainland will rise just as naturally as water flows downward. As for the Soviet Union, it needs to hold its military power principally as a weapon to intimidate the United States, to control Europe and to threaten the rest of the world. It will not want to bog down in the China battlefield merely to support the Chinese Communists. History shows that Russia is fearful of fighting simultaneously on two fronts. As our counter-offensive will provide a golden opportunity for the people behind the Iron Curtain in Eastern Europe to liberate themselves, Soviet Russia, in order to avoid having to fight on two fronts and to be able to suppress any revolts in Europe, will not dare to intervene rashly in China.
Truth can stand the test of time. In the long run, our views will be borne out by events. Existing doubts and fears in foreign countries will be dispelled by future developments. The key lies in our persevering faith, from which will come strength and actions to break the stalemate and change the reality. No matter what people in foreign countries may think of our counter-offensive, we must redouble our efforts in the struggle for the reunification of our country and the rescue of our compatriots. Since this is going to be an extremely tough battle, we must be fully prepared before we start. Once we do there shall be no return. We are by blood akin to those on the mainland. We must choose the right opportunity in order to shorten the period of hostilities and win a maximum victory at a minimum cost. Preparations and timing are therefore vital to success. In the ever-changing world situation today, opportunities will not be lacking. We should ready ourselves so that we can act at any time.
With these convictions as the basis, the Government has neither relaxed for a single moment nor spared any effort in carrying on with the all-important preparations for national recovery.
First, in the past year, our armed forces have been constantly alert and improving themselves. They have applied themselves to all military matters with resolve and determination. On the one hand they are safeguarding the security of the Taiwan Straits, so that projects of production and construction may be carried out in the rear. They are always ready to fight the enemy. As to the timing of our counter-offensive, we should all place our trust in our commander-in-chief who will surely grasp the most advantageous moment for action. On our part, we should back up on military forces with all our strength. In the past several months, the Government has been collecting the Provisional Special Defense Assessments and has set up the Economic Mobilization Planning Board. These actions will strengthen our national defense and make plans for the mobilization of our manpower and material resources.
Secondly, economy is the most important power in raising the living standard of the people, supporting defense preparations, and achieving national industrialization. In recent years the Government has worked hard to accelerate economic development of the country. It has continued to implement the 19-Point Program for Accelerated Economic Development and the Third Four-Year Economic Development Plan with visible results.
Public concern now centers on whether the imposition of the Provisional Special Defense Assessments by the government since May I will have any adverse effect on the economy. Thanks to the support of the whole nation, and the coordination in all sectors of our economy, production has proceeded apace since then. It may be noted that important items in agricultural and industrial production all registered increases in the first half of 1962. The first rice crop reached a record high of 1,040,000 tons. During the period from May to July, power generation and the production of cotton yarn, cement, crude oil fertilizer, and paper exceeded totals in the corresponding period last year. Exports from January to July were US$30 million more than in the corresponding period of 1961. Using April as base, the general price index rose 2.2 per cent in May, but fell back to only 0.5 per cent in August. Since the imposition of the defense assessments, market reaction has been normal, monetary supply and price level stable, and production and foreign trade increasing. In regard to the encouragement of investment, a subject which has received the attention of people in all quarters, a total of 48 investment cases amounting to US$13,130,000 were approved from January to August. Foreign investment especially has picked up during the past month.
The task before us is still to attain accelerated economic growth according to plans. We are trying to overcome difficulties involved in the encouragement of investment. We are stressing the importance of industrial development as a field of increasing investment. The challenge to our industries is greater exports. The government is considering an over-all program to promote economic growth. In addition to the economic sector, this program will cover such other fields as administration, social awareness and codification of laws and regulations. We believe that success or failure in economic development depends upon self-dedication in a prolonged campaign. Through our own endeavors backed up by allied economic aid, we have laid a sound foundation for our economy. We have achieved good results in providing agricultural technical assistance to countries in Africa and Southeast Asia. We do not pretend that all problems in the course of economic reconstruction, especially those concerning technical know-how and industrial management, have been solved. The road toward industrialization is usually beset with difficulties. We can improve only by doing. We should never lose courage or hesitate to go ahead.
Thirdly, during the last six months, we have continued to defend our cause in the arena of international politics. Under the heightened insolence of the Communist aggressors, international appeasement has again polluted the atmosphere and the ghost of "two Chinas" has re-emerged. To uphold international justice, preserve our sovereignty, and defend the common interests of the free world, we have been carrying on an incessant struggle against the Soviet bloc. Confident that "we can go wherever the Communists can", we have been successfully reaching into every corner of the world in quest for friendly nations. At the same time, we have remained firm in our stand that there can be "no common ground between the patriot and the traitor", and have refused any arrangement at the expense of our principles. Our severance of diplomatic ties with the Laotian coalition government after it recognized the Peiping regime is ample demonstration of our resolution.
We are cooperating with those members of the United Nations that stand for peace with justice in an endeavor to defend our lawful status and to prevent Soviet Russia from smuggling the Peiping regime into the international organization. Meanwhile, we are constantly alert to prevent any friendly countries from adopting the mistaken policy of appeasement so as to forestall further deterioration of the situation in the Far East. We are confident that our stand and effort will win the moral support of the democratic nations whose farsighted and courageous statesmen, we believe, will help their loyal Asian friends and not encourage their ruthless enemies.
Fourthly, the mass exodus of refugees to Hongkong and Macao last April and May was a collective bid for freedom and survival on the part of the mainland populace, and heralds the collapse of the bamboo curtain. The government, duty bound to come to the aid of refugees, immediately announced a six-point relief plan. However, smooth implementation of this plan was thwarted by the non-cooperation of the Hongkong authorities. Altogether eight groups of refugees have arrived in Taiwan and they have been properly cared for. People and civic bodies both here and overseas have demonstrated the highest degree of fraternal love in carrying on the refugee relief work and contributing generously both of money and effort. The moral value of their actions can neither be expressed in words nor in figures. There are still large numbers of refugees in Hongkong and Macao. The Government will do its best to bring to Taiwan those who wish to come. For those who have to remain where they are, the Government will provide succor through various relief agencies and charitable organizations.
In the fields of military, economic, diplomatic and relief affairs, we have worked incessantly to increase our strength so that we may recover the mainland and deliver our compatriots at an early date. Time is running out for the Chinese Communists. They are nearing the end of the road. Our mainland compatriots are not the only ones who hate the Communists deeply, and are prepared to perish with them, if necessary. Even the Communist cadres and troops, moving from pessimism and despair to self-awakening, have come to take part in mass escapes and uprisings.
Here I wish to reiterate the six freedoms and three assurances* proclaimed by President Chiang Kai-shek. In the course of our national recovery, excepting the few ringleaders whose crimes cannot possibly be condoned by the people, the Government will not prosecute those who have been forced to work for the Communists, provided they repent of their past doings and demonstrate their sincerity by deeds. To those who abandon Communism and successfully rise against the regime, the Government will offer assistance and rewards. The Government also promises that after the Communist regime is destroyed, people of all ethnic groups, religions faiths and political parties will have a chance to serve the nation on an equal footing. The political institutions and the national policy will be decided by the people as a whole through democratic process.
Ladies and gentlemen: The nearer we come to the decisive stage in our task of counter-offensive and national recovery, the greater will be our difficulties and the harder, therefore, we must exert ourselves. We in the Executive Yuan are keenly aware of our responsibility. Today many things still need to be done or could have been done better. Expectations of further improvement explain the criticism levelled at the Government for its shortcomings. Merely expressing hopes or voicing criticisms, I feel, is not enough. Our nation is now in the most critical stage of its history. We should constantly ask ourselves: Are our own thoughts and acts in consonance with the requirements of our program of counter-offensive and national recovery? Have we done our best for the realization of this objective? Have we achieved mutual understanding, mutual confidence, and mutual assistance? Is there close cooperation among the various Government organs?
The time of decision is now at hand. The past few months have witnessed mass escapes from the mainland and more anti-Communist uprisings by the less fortunate who have to remain behind. More drastic events may take place momentarily. The Communist military buildup along the Fukien coast indicates that the Reds may attack us at any time. In the face of our angry mainland compatriots rising against Communism, and the tense situation in the Taiwan Straits, we must step up our combat readiness, heighten our vigilance, and concentrate our will and strength. Under the leadership of President Chiang Kai-shek, we should support the anti-Communist revolution on the mainland and usher in victory in our sacred war of counter-offensive and national recovery. I thank you!
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*The "Six Freedoms" and "Three Assurances" were outlined by President Chiang Kai-shek in his China National Day message on October 10, 1957:
Six Freedoms:
1. To free the workers from slavery and persecution and to restore to them the freedom of employment.
2. To free the farmers from fear of deprivation and starvation and to restore to them the freedom to enjoy prosperity.
3. To restore to the people the freedom of thought and the freedom of study and to free them from fear of "ideological reformation."
4. To restore to the people the freedom of economic enterprise and to free them from fear of confiscation and requisition.
5. To restore to the people their security of life and to consolidate the foundation of society.
6. To restore to the people the free way of life and to ensure the continuity of Chinese cultural heritage.
Three Assurances:
1. That those officers and enlisted men who will defect from the Chinese Communist forces shall be accorded the same treatment as that for members of our armed forces and shall be placed on the same basis of remuneration and reward in accordance with their position and merits;
2. That all political and civic organizations which will have joined the Government in anti-Communist activities, the Chinese Communist Party excepted, shall enjoy equal and lawful status regardless of their previous political stand; they shall have the opportunity under the Constitution and the principle of fair competition to contribute their effort towards the reconstruction of a new China of the people, by the people, and for the people;
3. That those who have joined the Chinese Communist organizations and served under the Peiping regime, except the few hardcore leaders, shall be pardoned and their life and property protected on condition that they pledge to work for the anti-Communist cause; the Government shall pursue a general policy of leniency towards all perfunctory followers of Communism and towards their past records of collaboration with the Communist Party.