He said peace is not to be attained through appeasement and complaisance and that freedom can never be won by wishful thinking. The expansion and threat of Communism, he said, are global in scope; international security and peace are indivisible. "We shall win our way to true peace and freedom," he said, "only if we adhere to the principle of justice-distinguishing friend from foe, heightening our moral courage and discarding our easy acceptance of compromise." (See full text in Documents department.)
In a message to Pope Paul VI, the President said that "the government and people of the Republic of China rejoice in receiving the Message of His Holiness for the celebration of the day of peace and share in full measure the lofty ideals that His Holiness has expressed in such a clear and inspiring manner."
The President also said: "We too are disturbed and distressed by the overemphasis the people of the world have placed on pursuit of materialistic aims. It is with this phenomenon in mind that we have, under the leadership of the late President Chiang Kai-shek, endeavored to revive the spiritual and moral values which formed the core of traditional Chinese culture best exemplified by the teachings of Confucius. We have found that these values have much in common with the teachings of Christ. We are particularly gratified that, for the year 1976, Your Holiness has given special importance to the strength and prestige of international law and to the promotion of judicious disarmament, which are truly the real weapons of peace. We support the call Your Holiness has issued and we will dedicate ourselves to its effective implementation and fulfillment."
President Yen sent a message to the 21st Asian Peoples' Anti-Communist League conference in Tokyo. The President said:
"The continuing Communist attempt at expansion and aggression is the root of all the major troubles in the world today. Division, sowing seeds of discord, infiltration and subversion are objectives of the heinous united front techniques habitually resorted to by the Communists before actual armed aggression.
"Cambodia, South Vietnam and Laos have fallen one after another behind the Iron Curtain. The Communists have escalated their threats against Northeast Asia and are positively stepping up infiltration in the other free Asian areas.
"It is of great significance that the Asian Peoples' Anti-Communist League is now convening this general conference in the Japanese capital city for anti-Communist leaders from countries throughout the Asian-Pacific region and the Middle East to get together and work out ways and means to save Asia from its present crisis and assure freedom and security for all Asians through effective consolidation of the anti-Communist front.
"I am certain that the conference will con tribute importantly to heightening the vigilance of Asia and the en tire free world against Communist expansion and aggression, to eliminating illusory hopes about detente and to strengthening the unity of Asian freedom forces for cooperative endeavors to win a final victory.
"I entertain the highest regard for the anti Communist leaders of all the free Asian nations for their unshakable conviction and incomparable resolve as expressed in their years of strenuous endeavors to safeguard human freedom and world peace. I firmly believe that through the joint efforts of delegates from various countries, the APACL conference will write down one more brilliant page in the history of Asian struggle for freedom and against slavery."
Premier Chiang Ching-kuo said the Republic of China will pursue an "independent foreign policy" while trying to expand its "substantial relations" with foreign countries.
Addressing some 3,000 government officials and military leaders at the Sun Yat-sen Memorial Hall, the Premier noted that the country had been heavily buffeted in 1975.
He expressed regret at appeasement of the Communists and said this has affected free China's international position.
The continued recession is a temporary setback to the economy of the Republic of China, he said.
However, the nation has weathered the twin crises well, he added, and since the death of President Chiang Kai-shek last April, has demonstrated its unity.
Economically, there is stability with progress. Construction of the Ten Basic Projects has continued, the Premier declared.
Premier Chiang pledged himself to strive for a "government of integrity and efficiency." His administration will continue to recruit new faces for public service, he added.
The political goal of the administration is establishment of a truly egalitarian society where people live in security and affluence.
In diplomacy, the country will improve its substantial ties with friendly countries through "total diplomacy."
Economically, the government will use every cent of tax revenues for "the betterment of the people's livelihood and the birth of a progressive society."
In national defense, Premier Chiang said, efforts will be directed toward building up a modern fighting force and strengthening combat readiness.
Premier Chiang told his cabinet the Republic of China will become "a nation of heavy industries" after completion of the Ten Basic Construction Projects. The new steel mill and shipyard will stimulate economic growth, he said.
Premier Chiang said he was gratified by popular support of the 10 projects. Many people donated land for use as construction sites.
After hearing progress reports from officials in charge of the projects, Premier Chiang said more private capital will be sought to help with financing.
"It is not enough to rely on the resources of the state for the completion of these projects," he said. "We shall induce private capital, both here and abroad, to assist in economic development. "
Farm villages will be the most modern in Asia after completion of the new Six-Year Economic Development Plan, Premier Chiang told the annual convention of the Federation of Agricultural Societies. More than 1,000 experts from 14 agricultural societies attended.
When the plan is completed, every farmer will have a house with modern amenities. His living quarters will be separate from buildings for livestock.
Rural electrification and road construction will be spurred. "We are building an expressway but we shall not neglect country roads," the Premier said.
Land consolidation and farm mechanization will continue. Premier Chiang urged experts to disseminate up-to-date farm information and technology in Taiwan.
The government will build flood control and drainage systems in the farm villages, he said. "We have plenty of rainfall. That is good for farming. But sometimes there is too much rain and heavy damage."
Dr. Robert Lee, chairman of the Joint Com mission on Rural Reconstruction, outlined government policy to raise farm income, grow more grain, stabilize farm prices and grow more cash crops for export.
U.S. Assistant Secretary of State Philip Habib restated the American policy of maintaining friendly relations with the Republic of China at a meeting with Premier Chiang Ching-kuo.
Habib briefed the Premier on President Ford's visit to the China mainland. Their talk lasted an hour and a half.
The Premier told Habib that only the permanent existence of friendly relations and cooperation between the Republic of China and the United States can ensure real and enduring peace in Asia.
The Premier expressed opposition to relations between the United States and the Peiping regime.
The Executive Yuan reiterated the government's unwillingness to make nuclear bombs for use against fellow countrymen on the Chinese mainland.
The Cabinet said national strength is great and the enemy would be doomed if he attempted an invasion.
The late President Chiang Kai-shek said the counterattack would be joined by forces from the mainland. So, the Executive Yuan said, arms will be of secondary importance. These other points were made:
Victory in the anti-Communist war will be based on the determination of all the Chinese people - those in Taiwan, on the mainland and overseas.
The giant force of the Chinese people desperately hate and oppose the Communists and are determined to fight against the small bloc of tyrannical hard core chieftains of Communism.
The report said the final goal of the government is to destroy the Communist system on the mainland and not the people, who will be a decisive force in winning the anti-Communist war.
Fighting capability of the armed forces has been nearly quintupled in the last quarter century, said Defense Minister Kao Kuei-yuan.
Speaking to the Legislative Yuan Committee on National Defense, Kao said the "total combat strength" of the armed forces has been growing at an annual rate of 18.7 per cent since 1950.
The former army commander defined "total combat strength" as firepower, mobility, defense capability and ability to launch raids.
Progress has been achieved through organizational readjustments, simplification of the command chain, expansion of logistics capability and modernization of armaments, the defense minister said.
Commenting on national defense policy, Kao said stress will be placed on "elitism." The government will make effective use of all resources and upgrade defense science.
Two members of the Control Yuan called on the government to strengthen national defenses and coordinate construction projects with defense needs.
Yang Yu-tsu and Chang Chien-ehung said the Indochina debacle showed that the nation must always be ready to defend itself.
They said the Communists are scheming to invade Taiwan as soon as they think they are strong enough.
Although the standard of living has been raised, people should restrain themselves, avoid waste money and remember what life is like in wartime.
The two asked the government to improve living conditions of military personnel and their dependents.
Two other members of the Control Yuan praised government policymakers for their wise economic leadership.
Chang Yi-chung and Chuang Chun-ti attributed success of the Ten Basic Construction Projects to the efforts of economic and financial officials.
To speed up the projects, they suggested that interest rates be raised.
Dominican Republic Foreign Minister Ramon Emilion Jimenez Reyes described the Republic of China's armed forces as among the best in the world and expressed confidence in their ability to preserve the country's sovereignty and territorial integrity.
Jimenez suggested that the two countries exchange some military officers to strengthen relations.
A former defense minister, Jimenez said: "This is a highly organized country and its leaders are outstanding. "
President Joaquin Balanguer might consider visiting the Republic of China, Jimenez said, adding: "The president is a good friend of the Republic of China."
Oil has been discovered off Lukang, a small township in central Taiwan, by the Chinese Petroleum Corporation.
Jerome Hu, CPC president, said it was still too early to assess the size of the find. It was the first strike since prospecting started in the Taiwan Straits two years ago.
The discovery was made in an "old geological stratum." Gas deposits found previously were in newer geological strata.
Several American oil companies are looking for oil deposits in the Taiwan Straits under contract with CPC. Continental Oil Company found gas off Kaohsiung.
Foreign Minister Ramon Emilion Jimenez Reyes of the Dominican Republic and Mrs. Reyes call on President C.K. Yen. (File photo)
Hu told the Legislative Yuan Budget Commit tee the 10 per cent price hike announced by the OPEC nations October I would cost the Republic of China an additional US$65,800,000 by June 1976.
The government will recoup more than half through price adjustments.
The Lukang well is only 15 kilometers offshore, Vice Minister of Economic Affairs Chang Kwang-shih told legislators.
CPC will drill more wells in the area. The water is only 50 feet deep. If the well produces from 1,000 to 2,000 barrels a day, it will be worth tapping.
News of the strike excited the 70,000 residents of Lukang.
"We could be as rich as the people of Kuwait some day," said an excited resident.
Lukang is 30 kilometers from the new Taichung Harbor and 25 minutes' drive from Changhua City. It is among the first places in Taiwan to be visited by Chinese traders.
A Chinese general landed at Lukang in 610 A.D. with a small contingent. Chinese settlement began soon afterward. By the 17th century, Lukang was the second largest settlement in Tai wan, second only to Tainan.
Lukang did a brisk trade with the mainland because of its good port. The population reached
100,000. The town gradually declined as a result of heavy silting.
Because the oil is from an old stratum, geologists are speculating that petroleum may exist on land as well.
Land wells sunk by CPC are not deep enough to reach old geological strata.
CPC is drilling in the Chiayi, Yunlin and Hsinchu areas.
Four 100,000-ton and two 25,000-ton oil storage tanks have been completed at Shalun Beach in Taoyuan.
Built in some 15months, the six tanks will store 450,000 metric tons of crude.
Y. Y. Chow, general manager of the Northern Engineering and Construction Division of the Chinese Petroleum Corporation, said the tank farm cost US$10 million.
"The significance is not in the money we spent, but in the achievement of building the tanks entirely on the sand," Chow said.
A pipeline several miles long has been installed to move crude from tankers to the beach.
A new refinery is under construction several miles from the tank farm. It is about 70 per cent complete. Work was delayed by slow shipment of materials and machinery from the United States.
Occupying 72 hectares on a hillside, the refinery will cost US$120 million.
Still under construction are a distillation unit with a daily capacity of 100,000 barrels; naphtha hydrostreater, 15,000 barrels; catalysis reformer, 15,000 barrels; hydrostreater, 16,000 barrels; L.P.G. merox, 8,000 barrels; light straight run gasoline merox, 9,000 barrels; jet fuel merox, 12,000 barrels; and sulphur plant with daily capacity of 35 metric tons.
CPC's other refinery is at Kaohsiung in southern Taiwan.
Investment in road building under the new Six-Year Economic Development Plan calls for expenditures ofNT$60,000 million (US$10,579 million).
All highways will be surfaced with asphalt, the freeway will be completed and new cross island highways will be built between 1976 and 1981.
The plan was compiled by the Transportation Planning Board in accordance with investment proposals prepared by the Provincial Bureau of Public Works, the Taiwan Highway Bureau and the Taipei Municipal Bureau of Public Works.
Projects to be implemented by the Provincial Bureau of Public Works include new construction and widening of main urban roads and access roads.
Projects to be carried out by the Taiwan Highway Bureau will include access roads to the freeway, improvement of the western and eastern trunk highways, and construction of cross-island highways, offshore island highways, mountain roads and Taipei suburban roads.
Projects to be implemented by the Taipei Municipal Bureau of Public Works will include construction of over 100 streets more than 20 meters wide, several radial roads from the downtown area to satellite townships, including Sanchung, Yungho and Hsinchuang, and access roads for three freeway interchanges.
The Directorate General of Telecommunications is budgeting NT$10 billion (US$26,300,000) for expansion in each of the next six years.
Telephone sets will be increased from 12 to 23 per 100 households.
Weights and measures in the Republic of China will be entirely metric system within four years, the National Bureau of Standards said.
The government will discuss with local manufacturers the retirement of production facilities using the British system. The bureau has urged factories to stop importing such machinery.
The metric and British systems are currently used in Taiwan plus a Chinese system of weights and measures.
Greater Taipei City will have a maximum population of 3½ million, Chang Kung-jung, director of the Municipal Department of Public Works, reported.
Chang said plans for road work are 89 per cent complete.
Of the remaining 11 per cent, the Yangming shan area constitutes 10 per cent and the urban area only 1 per cent. Problems encountered in flood control and location of railway tracks are holding up completion of the 1 per cent for the city area.
Important projects involve expansion of major arteries running north-south and east-west.
Ten parking garages will be opened in the downtown area before June 30, 1978. Street parking will be sharply reduced.
The city's first parking garage was completed recently. Six floors accommodate 600 cars and the basement can accommodate 450 motorcycles.
Three infectious disease - diphtheria, typhoid and dysentery - have been controlled by medical authorities in the last few years. The Public Health Department of the Taipei City Government said there was 1 death in 32 typhoid cases last year. Other infectious disease which occurred last year were 3 in dysentery, 14 in diphtheria, 1 in meningitis, 18 in malaria and 2 in polio with no deaths reported.
Two people died of Japanese encephelitis in 25 cases reported.
A total of 2,823 primary students and 635 high school students were cured of trachoma.
More than 30,000 children in primary grades and kindergarten were found to have oxyuriasis pinworms.
Thirty-seven were of 9,451 new tuberculosis patients and 10,927 latent tuberculosis patients were cured.
Employment has changed drastically in rural areas.
JCRR Chairman Robert Lee told the Legislative Yuan's Committee on Economic Affairs that the number of agricultural workers has been dropping steadily.
From 1956 to 1966, employed persons increased by 55.1 per cent. Farm workers increased by only 6.8 per cent compared with 145.7 per cent for the non-agricultural sector.
Employment rose 36.1 per cent from 1966 to 1974. Agricultural workers declined by 12.6 per cent. Employment in the non-agricultural sector increased by 75.8 per cent.
The agricultural population accounted for 65.2 per cent of the total in 1956. This had dropped to 28.8 per cent in 1974.
There was a decline in agricultural output compared with non-agricultural production. The agricultural share was 31 per cent in 1956,25.6 per cent in 1966 and 16.7 per cent in 1974.
The JCRR chairman estimated agricultural growth in 1975 at minus 2.2 per cent despite a record rice crop of 2,520,000 metric tons.
He gave the breakdown as minus 1.4 per cent for crops, 8.7 per cent for fishery, minus 10.1 per cent for animal husbandry and minus 9.9 per cent for forestry.
The target of 1976 rice production has been set at 2,700,000 tons. The Taiwan Provincial Food Bureau said 750,000 hectares of land will be planted to rice with targeted output of 3,870 kilograms per hectare.
Three rice crops a year have been grown satisfactorily in Pingtung county.
The bureau assured farmers there will be enough fertilizer for 1976. The estimated requirement is 1,200,000 metric tons.
The Taiwan Fertilizer Corporation is expected to produce 1,090,000 metric tons and import 190,000 metric tons. There is a stockpile of 223,700 metric tons.
Agricultural land has not shrunk in the last decade despite the encroachment of factories, housing projects and public construction projects.
On the contrary, there has been a slight increase as a result of the development of marginal land. However, the number of farming households has increased. The Provincial Department of Agriculture and Forestry gave the number as 877,829 in 1974 compared with 847,242 in 1965.
The average land holding is only 1.05 hectare. The agricultural population stood at 5,800,000 in 1974, accounting for 36.6 per cent of the total. Agricultural output amounted to NT$110 billion (US$2,897 million).
The department attributed Taiwan's economic stability in time of recession to the sound agricultural economy.
The department said the farm rejuvenation program launched two years ago has greatly boosted the income of rural families. The non-agricultural earnings of the average farm family rose from 28.2 per cent of total income in 1971 to 37.3 per cent in 1974.
The price index of agricultural products rose by 90 per cent between 1971 and 1974. The consumer price index for the same period was up by only 74 per cent, indicating that terms of trade favor the farmer.
The Taiwan Provincial Government has decided to requisition some 50,000 hectares of farm plots for distribution to tenant farmers.
Farm machines may be exported to Latin America in exchange for food grains, according to a trade mission which visited several South American countries.
Bolivia and Paraguay offered to import Taiwan machinery on a barter basis. The Bolivian government offered 100,000 tons of maize worth US$11,900,000. Paraguay is ready to trade 80,000 tons of soybeans worth US$16,000,000.
Many South American countries are introducing mechanized farming. If manufacturers can offer attractive terms, the prospects for sale of farm machines in the Latin American market will be very bright, a mission spokesman said.
Farm machinery manufacturers have decided to hold exhibitions in Guatemala, Colombia and the U.S. this year.
The Board of Foreign Trade suggested the exhibitions be held in cooperation with the manufacturers of other machines.
The vehicle plant of the Combined Services Force will assemble 200 pickup trucks a year for rural areas during the next three years. Power tiller engines will be used.
CSF is responding to a call from Premier Chiang Ching-kuo for rural transportation that is inexpensive, safe and suitable for farmers.
Farmers have been hitching a power tiller to a cart to transport their crops. This makeshift transportation has posed traffic hazards on country roads.
Local auto plants agreed to develop a pickup for rural use. But it will take at least three years.