He said the nation should "expedite our national development and assure our national progress: concentrating all our devotion and wisdom on the cause of anti-Communism while concentrating all our strength and activities on national recovery."
"Today's crisis of our country gives us the opportunity to roll back the adverse tide and open up a new vista," he continued. "I know you will encourage and supervise our colleagues in the government as they join together with compatriots at home and abroad and in front of and behind enemy lines to mobilize, renovate and fight on to the victory of national recovery and reconstruction. This is in keeping with your consistent spirit of devoting your minds and your loyalty to surmounting the national crisis."
Crackdown on the ringleaders of the Kaohsiung riot will not affect the democratic movement in the Republic of China, a ranking official of the ruling Kuomintang said.
Chao Shou-po, deputy director of the KMT Central Committee's Department of Culture and Information, said "Violence is incompatible with democracy. In checking the spread of violence, the government is protecting the democratic system."
Promotion of democratic rule in China is an established policy of the Kuomintang, he said, adding that "under no circumstances will this policy be discarded."
Commenting on freedom of speech, Chao said that everyone may say what he likes within the bounds of law.
"The Constitution protects freedom of speech, but speech overstepping the realm of law will not enjoy the protection of the Constitution," he said.
Chao defended the martial law proclaimed 30 years ago, saying that it has enabled the Republic of China to achieve across-the-board progress without affecting the basic freedoms of the people.
Chao, who is also a member of the Taiwan Provincial Government Council, made the comments on the television program "Face to Face."
The Kaohsiung riot occurred December 10 when hundreds of shouting young men organized by the politically oriented Formosa magazine beat up unarmed policemen with heavy clubs and steel bars at the southern city of Kaohsiung. More than 180 police and other law enforcement personnel were injured.
The incident aroused popular indignation. People urged the government to deal with the instigators firmly.
Tsai Hung-wen, speaker of the Taiwan Provincial Assembly, said arrest of the ringleaders corresponded to the people's wish that the law take its course.
Tsai said the Republic of China is a country based on constitutional rule and that violations of law should be punished.
Members of the Taiwan Provincial Assembly also expressed support for the government in making the arrests. They said they believe the rioters will receive a fair trial.
The chairmen of Assembly committees visited the injured security officers at hospitals and expressed their sympathy.
Taichung Mayor Tseng Wen-po said attacks on security personnel with wooden clubs and torches violated the law. The offenses were serious enough to constitute sedition, he added.
College students and faculties at Taichung voiced support of the courts in punishing the rioters. The student organization of Feng Chia College launched a campaign for blood donations to show their loyalty to the country.
Members of the Kaohsiung City Council, speaking for more than a million people, said the city supports arrest of the rioters.
Nineteen mayors of cities and towns in Chiayi County issued a joint statement condemning Formosa magazine and demanding that the government punish the rioters harshly so as to maintain peace and order.
The Farmers' Association of Chiayi County, speaking for 400,000 farmers, denounced the Formosa magazine group as "the enemy of the people."
Huang Tieh-hsiung, president of the Chiayi Athletic Association, said: "We don't want to become 'boat people' and we don't want to see a small number of the people attack the government in the name of democracy and human rights in an attempt to destroy social stability and divide us."
Thirty literary and art associations issued a joint statement to express their support of the government crackdown.
Price increases for gasoline, diesel fuel, fuel oil, electricity and taxi fares were announced.
The oil price increases will enable the government-owned Chinese Petroleum Corporation to raise its revenues by 28.7 per cent. According to Economic Minister Chang Kwang-shih, the increases reflect actual boosts in the cost of petroleum.
The basic fare for taxis was increased from NT$15 to NT$16 with an additional NT$4 (up from NT$3) for each half kilometer after the first kilometer.
Electricity rates were increased by an average of 18 per cent. The bus fare was raised from NT$4 to NT$5.
Other increases were as follows (old prices in parentheses):
- Liquified petroleum gas: 41.1 per cent to NT$12 per kilogram (NT$8.5).
- Gasoline, regular: 43 per cent to NT$20 per liter (NT$14).
- Gasoline, premium: 40 per cent to NT$21 per liter (NT$15).
- Diesel fuel, premium: 43 per cent to NT$10 per liter (NT$7).
- Diesel fuel, regular: 43 per cent to NT$20 per liter (NT$6).
- Boiler oil: 70 per cent to NT$6,800 per kiloliter (NT$4,000).
- Fuel oil: 32 per cent to NT$5,400 per kiloliter (NT$4,100).
- Natural gas for industrial fuel: 100 per cent to NT$7 per cubic meter (NT$3.5).
- Natural gas for household use: 74 per cent to NT$4.7 per cubic meter (NT$2.7).
Despite current difficulties in obtaining an adequate supply of petroleum, the government will refrain from purchasing oil on the spot market for fear of the inflationary pressure, President Chiang Ching-kuo said at a meeting of ranking economic and financial officials.
President Chiang instructed officials to increase direct purchases of oil from producing countries.
He said the government should promptly pass on future increases in petroleum costs to consumers to help encourage energy conservation. He added that energy-related legislation should be enacted as quickly as possible.
Chu Fu-sung, former Chinese ambassador to the Republic of Korea, took over his new job as foreign minister from Dr. Y.S. Tsiang.
The changeover ceremony was held at the Ministry of Foreign Affairs with K.H. Yu, minister without portfolio, presiding. Witnesses included Foreign Affairs Vice Minister Fredrick Chien.
At the farewell party honoring Tsiang, who was appointed secretary general of the Kuomintang Central Standing Committee, Vice Minister Chien presented a silver plate to his former boss on behalf of his colleagues.
Chien praised Tsiang's outstanding performance. Tsiang thanked colleagues for meeting the challenges of the past year.
Foreign Minister Chu Fu-sung, 64, is a career diplomat. A graduate of the University of Shanghai, he received graduate training at London University.
Chu's principal diplomatic assignments included ambassadorship in Spain, Brazil and Korea.
Don't leave international organizations except as a last resort, the Control Yuan advised the Ministry of Foreign Affairs after its annual inspection.
The summation urged "flexible diplomacy," provided the basic policy of the government is protected. In order to counter Communist attempts to isolate the Republic of China, the nation should maintain its formal diplomatic relationships and promote more substantive relations with other countries. Substantive relations may become formal relations, the summation said.
The international position of the Republic of China is difficult, the Controllers said. The ROC is challenged at international meetings. ROC passport holders may be barred from attending meetings abroad.
The summation urged the Ministry of Foreign Affairs to provide leadership in overcoming these difficulties and coordinate the actions of foreign missions. The Executive Yuan has provided regulations to unify actions of Chinese legations, but these are not always observed, the summation said.
The Control Yuan urged that nongovernment leaders from other countries be invited to visit Taiwan. Local leaders should go abroad for people-to-people diplomacy, Controllers added.
The summation urged the Ministry of Foreign Affairs not to transfer Foreign Service officers too often, especially in countries with which the nation has no formal relations. A Foreign Service officer has to start all over again when he is moved, the Control Yuan said.
Free China will never consider establishing contacts with the Soviet Union, said Vice Minister of Foreign Affairs Fredrick Chien.
He denied that Soviet warships had docked at Makung for maintenance.
The decision to stay clear of the Soviet Union has nothing to do with ideology or emotions, Chien said on a television program.
He recalled that the Republic of China had on more than one occasion made contact and cooperated with the Soviet Union.
"We all know the results of such contacts. If we cannot remember the bitter lessons of history, there is no telling what setbacks will be lying ahead for us," Chien said.
Trade with Eastern European countries is another matter.
Chien said goods exported from the Republic of China to Southeast Asia have been found in Eastern Europe. Since indirect trade is already in existence, that on a regular basis might as well be considered.
He noted former Foreign Minister Y.S. Tsiang's remark that the Republic of China will consider relations with any country whose policy does not contradict the Three Principles of the People and which upholds freedom and democracy.
Chien ruled out the possibility that the Republic of China may seek readmission to the United Nations.
With the Chinese Communist regime on the U.S. Security Council, it is impossible for Free China to gain admission to the world body as a new member.
However, the Republic of China will continue to abide by the U.N. Charter even though it is no longer a member, Chien said.
Defining "flexible diplomacy," the vice minister said "it means the selection among a series of options of one option that promises the maximum benefits with the least undesirable effects."
Premier Sun Yun-suan chats with U.S. Senator Barry Goldwater, who visited Taiwan to check on the ROC's progress. (File photo)
Senator Barry Goldwater reminded the Carter Administration and his colleagues in the U.S. Congress that the Republic of China continues to exist and is very friendly with the United States.
A recent visitor to the Republic of China, Senator Goldwater said in a written statement in the Congressional Record that Free China has one of the finest economic systems and highest gross national products in the world.
People of the Republic of China are not embittered by what the United States did to them, he said.
"In fact," said Goldwater, "I think she (the Republic of China) is rather happy that she may be disengaged from a treaty with a country that she can no longer trust."
Goldwater said that "if President Carter's words were true that he would look upon an attack on Taiwan as an attack upon our own shores, Taiwan will continue to welcome the support of the United States in its military needs."
The Republican from Arizona emphasized the importance of the Republic of China in the political picture of the Far East. He recalled that President Carter promised to maintain in force all other treaties and agreements with the Republic of China except the Mutual Defense Treaty, and that an effort by the State Department to destroy the Air Transport Agreement was stopped thanks to the vigilance of Senate members.
Relations between the Republic of China and Colombia and South Africa are getting closer because of efforts of the government officials concerned.
Reporting to the Foreign Affair Committee of the Legislative Yuan, Sampson C. Shen, ambassador to the Republic of Colombia, said trade with Colombia is on the rise. Technical cooperation and cultural interflow are closer.
Ambassador Shen reported the four Chinese specialists in fishery and agriculture sent by the Chinese government have received plaudits from the Colombian government.
The ROC will send handicraft experts to Colombia.
Cultural interflow received a big boost in 1979, Ambassador Shen said. Journalists, athletes, educators and artists made exchange visits. Exchange of students is planned.
H.K. Yang, ambassador to South Africa, told the committee relations with Pretoria were improved as a result of the South African visit of Economic Minister K.S. Chang.
Based on their fight against Communism, the two countries are more than willing to further their ties. Yang said cooperation will be closer in economics, communications and technology.
Premier Sun Yun-suan thanked the Republic of China's diplomats for their efforts to uphold the national interest in the face of all adversities. He urged them to keep striving for breakthroughs.
To cope with the diplomatic situation after the establishment of Washington-Peiping ties, the government solidified the organization and functions of diplomats.
Premier Sun said the Cabinet committee set up an executive unit and worked out eight plans for foreign affairs activities.
Premier Sun instructed the Foreign Ministry to strengthen planning and research and invite experts from academic circles to participate.
The Premier said diplomacy should be flexible as to time and place but abide by fundamental national policy.
The Republic of China and Kingdom of Saudi Arabia pledged to strengthen cultural interflow and educational cooperation in a joint communique concluding a three-day cultural conference in Taipei.
Education Vice Minister Li Mo and Dr. Mahmoud M. Safar, deputy minister of the Saudi Ministry of Higher Education, reviewed implementation of projects planned in 1978 and discussed future projects.
The countries will increase cooperation between universities, including the exchange visits by administrators and professors, cooperation in scientific research, dispatch of Chinese technicians and the training of Saudi technicians at Chinese universities.
Other agreements were to:
- Exchange students and scholarships. The University of Riyadh will provide 17 scholarships for Chinese students to study Arabic languages. The Chinese government will offer 10 scholarships for Saudi graduate students.
- Exchange of books, films and periodicals on a regular basis.
- Promote cooperation in technical and vocational education. Chinese technicians will go to Saudi Arabia for work at a research center.
- Exchange culture and language. The two sides will continue to exchange personnel and materials for the study of culture. The Chinese side indicated willingness to help departments of Near Eastern studies establish Chinese language courses.
- Hold Cultural Weeks. The first Cultural Week will be held in the Republic of China. If Saudi Cultural Week is successful, Chinese Cultural Week will be held in Saudi Arabia.
The countries signed a US$357 million agreement for construction of a fertilizer plant in Saudi Arabia.
Economic Minister K.S. Chang and Abdulajaj Alzamil, vice chairman and managing director of the Saudi Basic Industry Corporation, represented their governments.
Construction of the biggest joint venture of the two countries will begin soon and be completed in three to four years.
Production capacity will be 500,000 metric tons of urea and 300,000 tons of ammonia.
According to Huang Ta-ho, president of the Taiwan Fertilizer Company, the plant will be one of the biggest in the world. Taiwan Fertilizer will be responsible for construction and marketing.
The Saudi government will extend US$300 million of the US$357 million capital as a long-term, low-interest loan.
The plant will use Saudi natural gas as raw material.
Part of the urea will be exported to Taiwan.
The Ten Major Construction Projects not only stimulated economic growth, but provided jobs for thousands of people, said an evaluation of the Council for Economic Planning and Development.
The Ten Major Construction Projects were begun in 1973. All have been completed.
These projects accounted for 6 percentage points of economic growth in 1973, 0.3 percentage points in 1974, 5 percentage points in 1975, 2.6 percentage points in 1976, 1.3 percentage points in 1977, 1.2 percentage points in 1977 and 1.2 percentage points in 1978. In 1975, when the worldwide recession caught up with Taiwan, the Ten Major Projects served to soften the impact.
The projects provided jobs for 146,000 people, including 3,797 engineers, 3,048 technicians, 55,374 skilled laborers and 81,800 unskilled laborers.
Few other countries have tackled so many major projects at the same time, the evaluation said.
Rerouting of the South Bend railway will reduce the number of tunnels, Governor Lin Yang-kang told the Taiwan Provincial Assembly.
A survey of the new route will be conducted in accordance with President Chiang Ching-kuo's instruction.
According to the original route, the railway would cover 84 kilometers from Chaochow in Pingtung to Taitung on the east coast.
This route would require the construction of 18 tunnels cutting through Mt. Nantawu, the longest of them 17.8 kilometers.
The governor said construction, originally scheduled to start on July 1, would have to be postponed pending the survey and the resolving of technical problems.
President Chiang told the provincial administration to find a route requiring fewer long tunnels.
The Ministry of Communications suggested that the road be moved southward with the western starting point at Fangliao.
Tunnels would be reduced by 10 kilometers. Governor Lin said an aerial survey will be made.
A automobile plant at the projected Taichung Harbor Industrial Park is planned by the government. William Wei, economic vice minister, said it will have an annual production of 200,000 cars, mainly for export.
Satellite plants will benefit Taichung Harbor by importing raw materials and parts.
Development of the projected Changhua Coastal Industrial District has begun on 3,837 hectares of coastal land. Development of another 2,163 hectares will follow after the first stage.
By the year 2001, the district will have a steel mill with a production capacity of 12 million tons, zinc factory with production capacity of 100,000 tons a year and aluminum factory with production capacity of 100,000 tons a year. The coal-burning power plant will have generating capacity of 2 to 3 million kilowatts. An oil refinery and two naphtha cracking plants are slated.
Wei said the development of industrial districts won't hamper operations of the central Taiwan port.
No Chinese fishing boats have been seized by the Philippines in the Bashee Channel since the Republic of China proclaimed a 200-mile economic zone to counter a similar move by Manila.
Yao Tao-yi, director of the Taiwan Provincial Fishery Bureau, said boats operating in the Bashee Channel have the protection of the Navy.
He said the government has proposed a fair solution of the problem: "Draw a line of demarcation right in the middle of the 195-nautical mile Bashee Channel with each side exercising control in its respective zone."
He said some 1,600 fishing boats from Pingtung and Taitung operating in the Bashee Channel have a combined annual catch of some NT$800 million.
"Between 50,000 and 60,000 people regard the fishing ground in the Bashee Channel as their rice bowl," Yao said.
The Bashee Channel is important to the fishing industry in another respect. It is the passageway for some 200 larger boats heading for fishing grounds in the vicinity of Australia and the South Pacific.
Robert P. Parker, an attorney, was re-elected president of the American Chamber of Commerce in Taipei for his second term. During his first year, Parker was busy appearing before committees of the U.S. Congress and establishing the International Community Radio in Taipei after the diplomatic break between the United States and the Republic of China.
Between February and November of 1979, he testified before U.S. Congressional committees three times.
He not only defended the interests of American businessmen in Taiwan but also told U.S. Congressmen of the impact of Carter administration moves.
Parker went to Canton to attend a meeting convened by Vice President Walter Mondale, who announced the U.S. government planned to revise the ROC-U.S. air agreement from official to unofficial status.
The AmCham president urged the U.S. government to keep the agreement intact.
Parker said he would push these objectives in 1980:
- Improvement of the environment for U.S. investment.
- Enhancement of U.S. trade.
- Continuation of close contacts and relations between the ROC and the United States.
How to grow sufficient grain to feed the people of Taiwan and leave enough for export is the most important issue confronting agriculture, Governor Lin Yang-kang told a conference on agriculture, fishery and animal husbandry.
He said production must be geared to domestic and foreign needs if prices are to remain stable.
Lin said coastal areas are not suitable for growing rice because of salt in the soil. But these areas are suitable for raising fish. Farmers couldn't convert the land into fish ponds because of agricultural regulations. Land has to be planted or the vacant-land tax must be paid. He urged the Department of Agriculture and Forestry to revise the tax regulations.
Another problem is the high price of labor and pesticide. Mechanized farming saves labor but not wages. Machine owners charge wages by man days. Pesticide is expensive and makes up a large part of farming costs, Lin said.
The Provincial Government set the 1980 rice production target at 2.3 million metric tons.
This is a decline of 50,000 tons compared with the 2.35 million tons of 1979. Area will decline from 700,000 hectares to 681,000 hectares.
The government will help the farmers plant the 19,000 hectares to maize, soybeans, peanuts and sorghum.
Planted area for the first crop will be to 319,300 hectares for 1,229,000 tons of rice.
For the second crop, 361,700 hectares of paddy will be tilled with yield of 1,071,000 tons.
The government will consider exporting surplus rice to Southeast Asia. In 1979, Taiwan rice went to Indonesia and other Asian countries.
To encourage farmers to grow other crops, the government will provide loans for seeds, fertilizer and equipment and buy the crops.
Investment in agriculture will total NT$287.3 billion in the next decade.
Of the investment, NT$160.4 billion will come from the government, NT$126.7 billion will come from the private sectors and the rest will come from abroad.
The money will be used for:
- Mechanization.
- Construction of flood control and irrigation systems.
- Improvement of transportation and marketing systems.
- Development of fishery and forestry.
- Development of land resources.
The nation is expected to register 1980s growth of 2.58 per cent in agricultural production. Fishery production will be 5.16 per cent, livestock 3.91 per cent, farming 1.33 per cent and forestry 1.08 per cent.
Production of rice, hogs and poultry will be ample for domestic demand. Sugar, vegetables, fruit and fish will have surpluses for exports. The production of milk will increase from the current 13 per cent of local demand to 35 per cent. The self-sufficiency of the food supply will be maintained at between 83 and 84 per cent of demand.
The average farmer's income is only 64 per cent of a non-farmer's income. The 10-year plan will boost the farm average to 70 per cent.
Stable growth of agriculture is of great advantage to social security, Vice President Shieh Tung-min told a meeting of agriculturists.
The Vice President was addressing 14 agricultural groups in Taichung. He said labor forces have returned to the villages because of economic stagnation.
"It is necessary that agricultural resources be planned," Shieh said. "One-third of the population benefits from the agricultural industry and the below-the-average incomes should be of the greatest concern."
Shieh said "we should be more progressive and sign mutual benefit treaties with other nations to promote deep sea fishing."
On the use of land, he urged:
- Improvement of species and production technology.
- Development of new products of high quality and value.
- Improvement of agricultural processing.