Speaking at a finance and economics meeting, President Chiang said some inflation obviously result· from speculation, urging that this be brought under control.
The President said the government must face the economic situation realistically and cope with inflation.
President Chiang visited aborigines at Jenai Village in the mountains of Wushe, Nantou County, and joined in a memorial service for those who died in the Wushe uprising against the Japanese 50 years ago.
Accompanied by Premier Sun Yun-suan and Taiwan Governor Lin Yang-kang, the chief of state joined in the aborigine rituals. He expressed concern for the livelihood of the mountain people and inquired about current living conditions. He extended condolences to survivors of those who died in the uprising.
In an interview, Premier Sun Yun-suan told Michael Brauner, reporter of the television service of Austria's National Broadcasting Corporation, that the Republic of China is showing people living under Chinese Communism the superiority of the Three Principles of the People.
"Taiwan has become the hope and lighthouse of our compatriots on the mainland," Premier Sun said.
Following is the text of the interview for Austrian television:
Q. 1. Researcher Herman Kahn quoted the economic success of the Republic of China as, a "heroic" achievement. What are the main factors for the continued economic success of China?
A. Our economic success is primarily attributed to an economic policy based on the Three Principles of the People, which incorporate Confucian ism that emphasizes human relations, encourages diligence and frugality and seeks progress. In practice, the first step of our success was the implementation of a land reform to provide land to the tiller. Then we began to develop our agriculture, industry and foreign trade, and made timely readjustments and coordinations of the priorities of our efforts. We also let private enterprises develop their potential. These led to the achievement of today.
Q. 2. What is your country's conversion techniques from resource-intensive to technology-intensive production sectors?
A. The government has taken the following measures to upgrade our industry:
(1) Short-range measures:
a. Encourage investment in technology-intensive industry.
b. Establish a scientific industrial park to help develop the technology-intensive industry.
(2) Long-range measures:
a. Strengthen scientific and technological education.
b. Call on Chinese scholars and experts abroad to return and take part in industrial development.
c. Encourage private enterprises to strengthen research and development programs.
Q. 3. Please elaborate on the relations between government, business and labor in China's economic system.
A. We have followed an economic policy based on the Principle of People's Livelihood in our economic development. The policy calls on the government to play an active role in promoting labor-management relations, enhancing labor welfare and reconciling and arbitrating disputes between the labor and management.
Based on this policy, the government has declared economic development plans from time to time to serve as a guidance and reference for private enterprises. We attach special importance to coordination and cooperation between state and private enterprises, especially with regard to labor welfare.
Q. 4. How far do Chinese tradition and culture influence labor psychology?
A. Confucianism emphasizes the importance of family and human relations; it also advocates equality and harmony. This Confucian tradition is instrumental in ensuring harmony between labor and management. Diligence and cooperation on the part of the workers have helped the plants to ensure discipline.
The workers have considered the factory as a big family. This is an important factor in producing harmony between labor and management in our country. A number of entrepreneurs were helped to tide over their difficulties during the 1974-75 recession as a consequence of family strength, and serious unemployment has been prevented.
Q. 5. How far is the economic success of the Republic of China influenced by historic developments and the continued effort to free Communist China?
A. One of our aims to develop Taiwan, Penghu, Kinmen and Matsu is to show to the Chinese Communist regime across the Taiwan Straits the superiority of the Three Principles of the People. We are convinced that only under a democratic and free system can people live freely and happily. We are gratified that our efforts made in the last 30 years have borne the expected fruits. Our compatriots on the Chinese mainland have come to understand that their lives can be improved only through the Republic of China's way of development, so they asked why not learn from Taiwan. In fact, Taiwan has become the hope and lighthouse of our compatriots on the mainland.
Q. 6. How can bilateral trade as well as stronger relations between the Republic of China and Austria, Switzerland and West Germany be stimulated?
A. The Republic of China's policy is to strengthen its economic and trade relations with West European nations. These are the highlights:
(1) To promote the contact and mutual visits by industrial and business organizations and personalities.
(2) To encourage the contact, visit, exhibition, sales and talks made by civilian sectors. ,
(3) To reduce sales restrictions and tariffs and simplify all formalities.
We hope that our efforts in these aspects will be reciprocated by West European governments so that we can jointly further our economic and trade relations.
Premier Sun instructed the Ministry of Interior and the Provincial Government to speed up public housing construction.
Interior Minister Chiu Chuang-huan had reported that construction of public housing was lagging in many counties and cities, largely because of the difficulty of obtaining land.
Premier Sun Yun-suan welcomes Michael Brauner of the Austrian national television service, who interviewed the Executive Yuan president for a Vienna broadcast. (File photo)
Premier Sun ordered review and revision of public housing regulations. He also called for speedy repair of houses owned by workers and farmers.
The six-year housing plan calls for construction of 106,845 housing units between fiscal 1976 and 1981. In the fifth year of the plan, only 21,761 units had been built and 20,013 were under construction. This is only 39.1 per cent of the target.
Two cities — Keelung and Tainan — are doing well, Minister Chiu reported, and Taipei and Kaohsiung can meet their quotas.
Members of the Kuomintang will hold their 12th National Congress in Taipei March 29.
The Central Standing Committee called the session.
Delegates to the Congress may revise the constitution, adopt the party platform and policies, review Central Committee activities, adopt resolutions on party and political affairs, elect Central Committee members and approve the nomination of Central Advisory Committee members. National Congresses are usually convened every four years.
The 11th National Congress was held from November 12 to 18, 1976, with some 1,300 delegates participating. It adopted an eight-part platform and 29 resolutions.
Objectives set were mobilization of the people and fulfillment of their aspirations: recovery of the Chinese mainland: elimination of the tyrannical rule of the Peiping regime: construction of a modern country based on San Min Chu I: adherence to the Constitution: safeguarding of freedom and the rights and interests of the people: and strengthening of cooperation with friendly nations.
President Chiang Ching-kuo was elected chairman of the KMT at the 11th National Congress.
A 29-year-old woman was indicted on charges that she engaged in espionage for the Chinese Communists, Maj. Gen. Hsu Mei-lin. spokesman for the Taiwan Garrison Command, announced.
The father of Yeh Tao-lei, 29, is from Yung-chia, Chekiang. So under Chinese law she is considered to be from Chekiang. She was born in Taiwan in 1951.
She attended primary school for Chinese Air force dependents in Tainan, finished junior and senior high in Tainan, and was graduated in 1973 from Fu Jen Catholic University at Taipei as sociology major.
She worked for less than a month at a Taipei trading firm, and then joined the Happy Children's Center in Taipei's Shuangyuan District as a secretary.
In September of 1974, Miss Yeh was admitted to Minnesota State University for graduate work in sociology. There she met Chinese Communist agents Chang Chao-ching and Chen Yi-fang and their wives.
Miss Yeh became a frequent visitor of the Changs. She was exposed to all sorts of Chinese Communist propaganda literature. She showed commentaries on what she read to the Changs.
In 1977, when the Changs moved to New York, Miss Yeh came under the influence of Sung En-jung, another Chinese Communist in the Minneapolis area, and received training from him. In June of 1977, Miss Yeh dropped out of the university and went to New York to join the Changs. Chang said he wanted to recruit her as an operative of the "United Front Department," an agency charged with overseas espionage. Miss Yeh agreed. She was taught how to develop and enlarge pictures.
In August of 1977, Miss Yeh made up 20 microfilm reels of Chinese Communist propaganda. She bought two pairs of sandals and hollowed out the heels as a hiding place for the film.
She left the United States for Taiwan in April, 1978. Chang told her to play it cool, organize the masses and listen to mainland Chinese broadcasts to keep herself abreast of the developments on the mainland.
She traveled by way of Hongkong, where she met her future contact and bought a radio to listen to mainland broadcasts. She reached Taiwan April 24, 1978.
She found a job at the Chen Sheng Auto Parts Factory as her first cover, moved on to an iron works and worked at Kaohsiung "Life Line." A telephone counseling service for people in trouble. She taught at Kunshan Technology School in Tainan.
Though born and brought up in Taiwan, Miss Yeh speaks no Taiwanese. She found her colleagues disinterested in Communist propaganda and failed in her assignment.
In August, 1979, she obtained a roster of government functionaries in the Tainan area and passed it on to her Hongkong contact, who was visiting Taiwan. She relayed information on the political situation in Taiwan to her Hongkong contact and to Chang in the United States.
Miss Yeh admitted the charges against her. Her activities constituted an attempt to overthrow the government by unlawful means. If convicted, she could be sentenced to death.
Signing a sisterhood pact between strategic associations of the ROC and Japan are (from left) Gen Wego Chiang, Gen. Wang Sheng, Dr. Tsai Wei-ping, former President Yen Chia-kan, C. C. Ting, S. Kanemaru and Minowa Nobory. (File photo)
The Republic of China Strategic Association and Japan Center for Strategic Studies became sister organizations in a Taipei ceremony.
Shin Kanemaru, former director of the Japanese Self-Defense Agency and now chairman of the JCSS, and Dr. Tsai Wei-ping, director of the Coordination Council for North American Affairs and vice president of the ROCSA, signed the agreement.
Goals of the two institutes will be to:
—Advocate academic studies on strategy.
—Exchange information and academic findings.
—Conduct exchange visits and joint meetings.
—Sponsor international conferences.
—Further friendship among free and democratic nations.
A joint declaration made these points:
—The 1980s is a period for justice to defeat evil and for democracy to defeat totalitarianism.
—The Asian-Pacific-Indian region has become a strategically important area in the world and Northeast Asia and Taiwan are of pivotal importance.
—The Republic of China and Japan are free world cornerstones and share the same destiny.
—World crises result from the confusion and bewilderment caused by Communist aggression and expansion.
Former President Yen Chia-kan, honorary president of the ROCSA, and Kanemaru were the principal speakers.
Free China will help the Dominican Republic set up a handicraft industry and provide management technical assistance in free trade zones.
Foreign Ministers Chu Fu-sung and Emilio Ludovino Fernandez signed a joint communique in Taipei.
Dominican Foreign Minister Fernandez and his wife visit the Chiang Kai-shek Memorial Hall in the company of Chinese Foreign Minister and Mrs. F.S. Chu. (File photo)
Fernandez expressed belief his country will make increased economic progress with the help of the Republic of China.
Other highlights of the communique:
—Friendly relations will be strengthened, especially in economic and cultural fields.
—Public health and other help will be extended by the ROC to speed Dominican recovery from recent storm damage.
Accompanied by his wife and six officials, Fernandez visited Taiwan for nine days.
Peiping has intensified its united front offensive against Free China in the trade arena, the nation's top trade official warned.
H.K Shao, director of the Board of Foreign Trade, told the Legislative Yuan's Committee on Economic Affairs that manufacturers and exporters are kept well-informed of the Communist conspiracy so as to be able to take appropriate countermeasures
"The most effective way to defeat Communist trade gimmicks is to maintain our lead in technology and quality," Shao said.
He listed the following Chinese Communist moves aimed at creating confusion abroad and undercutting the competitiveness of Taiwan products:
—Call for contacts with Free China through mail, shipping and trade.
—Issuance of confidential directives concerning trade with Taiwan.
—Sale of Taiwan products in Chinese Communist stores in Hongkong and Macao.
—Announcement that Taiwan products entering the mainland are exempt from tax.
—Permitting foreign businessmen to trade with Taiwan and the mainland simultaneously.
—Importing Taiwan products through Hongkong for processing and sale in the world market.
—Attaching labels to Taiwan products with the words "Made in Taiwan, a model province of the People's Republic of China," and selling these overseas at prices lower than those quoted by Taiwan manufacturers.
—Exhibition of Taiwan products with such labels at the Canton trade fair.
—Imitation of Taiwan hand tools for sale in Southeast Asia at cut-rate prices.
Shao said his office is paying close attention to development of trade between Red China and the United States, which is the biggest market for Taiwan products.
An American research unit has been employed to study Peiping-Washington economic activities and establish a monitoring system.
Huang Shao-ku, president of the Judicial Yuan, urged national unity in facing stepped-up Chinese Communist united front tactics.
He noted that the Chinese Communists have suggested establishment of commercial ties, postal service and transportation between Taiwan and the mainland as a "bait" for "peace talks." The real objective, he warned, is "to create illusions in the international community and further isolate the Republic of China diplomatically."
Huang made the remarks at a rally in memory of President Chiang Kai-shek. President Chiang Ching-kuo presided at the meeting, which was attended by more than 3,000 persons.
The president of the Judicial Yuan said Communist united front tactics are aimed at undermining the anti-Communist will of the nation and paving the way for infiltration and subversion. It also could "pave the way for armed invasion of Taiwan," he said.
Huang recalled that President Chiang Kai-shek wrote in Russia in China that the struggle with Communism is one between two different ideologies and systems. It is a struggle between the human instinct and animal instinct and also a struggle between reason and violence and freedom and slavery. There is no room for compromise.
Huang said "we can never forget the past lesson of blood and tears and will never be cheated again by Communist maneuvers of peace talks and other united front tactics." "Peace talks with the enemy," he said, "are tantamount to self-disintegration." To compromise with the Communists will lead to self-destruction, he warned.
We must recognize the fact, Huang said, that "we can survive only through unity." He urged that factionalism be wiped out.
He called for military preparedness. Whether the Chinese Communists use force against Taiwan, he said, will "depend entirely on whether we have the determination and strength to defeat our enemies."
Huang warned that beneath the progress and prosperity of Taiwan is a minority committed to selfishness and hedonism. He suggested that work replace complacency, industry and thrift replace hedonism and devotion be substituted for selfishness.
Turning to the world situation, he deplored the lack of principle among many democratic nations. But he said he is convinced there is no chance of real detente with the Communists because of basic differences in systems and ideologies. Democratic nations eventually will unite to safeguard the destiny of the Free World.
An American physician accused the U.S. press of being "dangerously misled and misleading" in their reporting of news from Red China.
Dr. John Watt, executive director of the American Bureau for Medical Advancement in China, said strong bias in favor of Red China has been managed from Washington with intent to play "the China card."
He called for balanced, unbiased reporting, charging that a virtual blackout exists with regard to news favorable to the Republic of China.
For instance, Dr. Watt said, the U.S. press ignored the analysis of Joseph S. Ward, president of the American Society of Civil Engineering, who said Taiwan far surpassed Red China in most aspects of physical development.
Ward noted that people in Taiwan "laugh and work with pleasure and there is a spirit of mutual cooperation" that does not exist in mainland China. The U.S. press does not welcome such statements, Dr. Watt said.
Dr. Watt announced a US$10,000 grant had been made through ABMAC to the Nursing Education Program at the National Defense Medical Center. The money was made available by the J. Aron Charitable Foundation Inc. of New York.
Nuclear power production in Taiwan is safe.
The Atomic Energy Council of the Executive Yuan is paying utmost attention to the safety of nuclear plants, Chairman Chien Shih-liang said.
Reporting on AEC's work during the last four years. Dr. Chien said development of nuclear energy has become a matter of necessity as a result of the high price of oil.
AEC inaugurated a Nuclear Energy Control Department in 1979. The department is in charge of control and inspection of nuclear reactors.
The Taiwan Power Company has been told to emphasize "defense in depth" in the construction of nuclear power plants. Dr. Chien said.
Elaborating, he said nuclear power plants must be isolated from densely populated areas by a no-man's land and a sparsely populated zone.
Engineering requirements stressing safety must be strict, he added.
Following the Three-Mile accident in the U.S. last year, Taipower studied measures suggested by American experts as a guidance in operation of its second nuclear plant.
AEC has raised its screening standards. Before a permit is issued, Taipower is required to submit an environmental report and guarantee that the power plant will not create adverse effects ecologically.
Taipower also must submit an emergency plan for evaluation by AEC, which carries out an on-the-spot inspection.
Quality of life in Taiwan is far above that in Red China, according to a study by the Directorate General of Budget, Accounting & Statistics of the Executive Yuan.
Statistics covering the years from 1949 to 1979 show that the daily protein intake of a person in Taiwan is twice that of a person living in mainland China and per capita income is seven times higher.
In the 30-year period, the Taiwan gross national product increased by 13 times, per capita income by 7 times and exports by 368 times.
These comparisons were made:
- Economics: As of the end of 1979, per capita income in Taiwan was US$1,722. The corresponding figure on the mainland was US$234.
- Education: In Taiwan 26 per cent of the population is in school contrasted with 22 per cent on the mainland.
- Health: The average life span on Taiwan is 72 years, that on the mainland 64 years.
- Diet Calories per day add up to 2,845 calories in Taiwan contrasted with the mainland's 1,800.
Supply of petroleum for transportation and industry will be cut in the event oil imports are interrupted or curtailed.
T.H. Lee, president of the Chinese Petroleum Corporation, said the supply for transportation would be cut by about 20 per cent and that for industry by 10 per cent,
CPC would stop exports of petroleum products in such an eventuality, he added.
Lee said the supply of petroleum has been uneven since outbreak of the Iran-Iraq war.
Despite increased production by Saudi Arabia, price of oil has exceeded US$40 per barrel on spot markets.
The government will increase the storage of oil at home and switch from oil to coal for industry and power generation.
CPC, Lee said, will invest more than NT$10 billion to build more oil storage tanks and increase reserves from 90 days to 120 days by 1984.
Tanks will be constructed at Keelung, Suao, Hualien, Taichung, Taoyuan, Taman and Kaohsiung.
CPC spent about US$4.5 billion to import oil last year. Lee said the figure is a bout 10 per cent less than expected.
Lee attributed the saving to the slowdown in consumption.
The government will spend some NT$30 billion on coal unloading facilities at Keelung, Taichung, Suao and Kaohsiung.
The Council of Grand Justices declared that "detention," and "compulsory labor" as provided under the Law for the Punishment of Police Offenses should be under the jurisdiction of competent law courts.
The Council said police may continue present practices until new procedures are worked out.
It is unconstitutional, the justices said, for police to detain offenders and exact compulsory labor without court action. Personal freedom as guaranteed by Article 8 of the Constitution was cited.
The Law for the Punishment of Police Offenses allows detainment for up to 14 days and compulsory labor of up to 16 hours at a time without court action.
The meeting was presided over by Huang Shao-ku, president of the Judicial Yuan. All 14 Grand Justices attended.