The 63rd session of your esteemed Yuan is opening today at a time when spring is returning to the earth and the world situation is turbulent. I come here to report on administrative policy with heavy heart but determined confidence. I hope you will give me your counsel and guidance. At the previous session, your esteemed Yuan deliberated many proposals submitted by the Executive Yuan and gave us the benefit of your sound opinion. These proposals became laws. Your devotion to national affairs, your diligence in enacting legislation and your support of the Executive Yuan have my heartfelt admiration and appreciation.
Two months ago, the Carter administration of the United States announced the "establishment of diplomatic relations" with the Chinese Communist regime and dealt a heavy blow to our diplomatic efforts. Fortunately, the people of our country, soldiers and civilians alike, have in this moment of national crisis heeded President Chiang Ching-kuo's instruction to "persevere with calm and unite for struggle." The people have supported the government with unbending and fearless spirit and thus have avoided becoming confused by the contingencies of the moment. To the contrary, these bitter tests have served to make us even more determined and vigorous. In these last two months, the people of all the country – at home and abroad, men and women, young and old - have emulated each other in taking such concrete and forceful measures as the donation of money and blood, the offering of military services and the extension of periods of military service, the taking of oaths to sacrifice for the country and the signing of petitions of support for the country. These actions have demonstrated the common aspiration of the people for self-reliance and national salvation. Our scholars, overseas Chinese and students residing in the United States have been especially active. They have braved frigid weather and snow to stage demonstrations against the U.S. breach of faith and to show their support of the free motherland. Their enthusiasm for justice has never ruff so high. This spontaneous eruption of patriotism is ample testimony that the Chinese nation cannot be belittled or bullied and that its spiritual power cannot be subjected to humiliation.
Coping with contingencies and creating a new national horizon
Honorable members: Without question, the establishment of diplomatic relations between the United States and the Chinese Communist regime marked the low point in world adverse changes. The world situation has become steadily worse since Richard Nixon visited the Chinese mainland and the United States then withdrew from the Vietnam War, leading to the successive fall of the three Indochina states. Some democratic countries have been so affected by the adverse tide of appeasement that they can no longer distinguish friend from foe and right from wrong. These changes have abetted the Chinese Communists in their earthshaking career of evil and plunged the world into disturbances and instability. The developments of the last two years, including the turmoil in Africa and the Middle East, the upheaval in Iran and the war between Vietnam and Cambodia illustrate the dismaying and disturbing decay of the world situation. The Carter administration's breach of good faith and destruction of the Mutual Defense Treaty to establish diplomatic ties with the Chinese Communists and the sale of technology and weapons to that regime by some Western nations seeking short-term commercial gain are equivalent to quenching their thirst with poison or throwing gasoline on the conflagration. These actions have drastically upset the global strategic equilibrium, sharpened the contradictions between East and West and aggravated the war crisis.
Confronted by these ominous developments, we earnestly hope that the democratic nations will abandon the psychology of seeking temporary peace through appeasement. They should wake from their dream of protecting themselves through the assumption of neutrality. They should rebuild a strong anti-Communist front and devise a new global strategy by uniting against Communism and for their own survival.
Despite the disruption of ROC-U.S. diplomatic ties, we can point to the long-standing and profound friendship of the two peoples, to their shared ideals of freedom and peace, and to their substantial common interests in security, culture, economy, science and technology. In the future, the people of the two countries should continue their sincere cooperation in the common effort to promote their mutual interests and ensure justice and peace.
In the readjustment of the ROC-U.S. relationship, negotiations between the two governments have continued without pause in Taipei and Washington since a U.S. delegation visited the Republic of China for talks at the close of last year. During the course of these negotiations, the government has adhered to the five principles laid down by President Chiang Ching-Kuo: "continuity, reality, security, legality and governmentality." In continuing the existing relations between the two countries, the Executive Yuan has decided to establish the "Coordination Council for North American Affairs," The Council will be based in Taipei and will establish an office in Washington, D.C., with eight branches in New York, San Francisco, Chicago, Los Angeles, Honolulu, Seattle, Houston and Atlanta. The budgets of these organizations will be incorporated in that of the Ministry of Foreign Affairs. This measure was taken to meet the practical needs of continuing and conducting the various relations between the two countries and also implies endurance and perseverance in assuring a successful solution. There are still some major problems to be solved. The involved ministries and departments of the Executive Yuan will continue their efforts to assure that damage to our rights and interests is minimized and that the principal interests of the nation are safeguarded.
We shall strengthen our cooperation with the United States in various activities and continue the different substantive relationships. We hope our compatriots at home and abroad will use varied channels of communications to help Americans become more deeply aware that the Republic of China has made consistent and positive contributions to the security and peace of the Western Pacific region, that the Republic of China is a true friend of the United States and that the Chinese Communist regime, which has suppressed human rights and persecuted the people, is the most dangerous enemy of the American people. The peoples of the Re public of China and the United States should continue to strengthen their cooperation and friendship on the basis of common ideals and common interests.
Despite world turmoil, democracy and freedom are still the fundamental requirements of humankind and the trend of the times. No matter how the situation may change in the future, our national policy of safeguarding world justice and determinedly opposing Communism will remain the same. We shall address ourselves to the strengthening of diplomatic relations with countries which still maintain such ties with us. We shall continue to strengthen our various substantive relations with democratic nations that have no diplomatic ties with us by stepping up people to-people diplomacy. All economic and technical cooperation programs, cultural exchanges and trade relations with friendly nations will be enlarged to expand our international activities and strengthen our international position, thereby foiling the Chinese Communist conspiracy to isolate and harass us.
Our country is founded on faith and justice and exists because of its strength. In the last few years, we have suffered a succession of adverse blows. But we remain convinced that the fate of our country is in our own hands. No one can negate our international status. No one can besmirch our national dignity. So long as we continue our efforts of self-reliance, no force can shake us. So long as we work hard, no force can subdue us. So long as our people at home and abroad unite as one and contribute their wisdom and demonstrate their courage, their combined will, their extraordinary determination and their exceptional ability to take action, we can break through any cordon of difficulties and create a new situation under the able leadership of President Chiang Ching-kuo.
Fortifying national defense and grasping the opportunity for victory
The greater the difficulties of the nation, the greater our ability to understand that we can save ourselves and our country only by strengthening and relying on ourselves. The government is determined to work together with all the people of the country in these difficult times. For now our fundamental tasks are to sustain economic prosperity, develop culture, education, science and technology, seek political improvement and promote unity and harmony.
Strengthening of national defense is essential to our national existence. Since the country faces an extraordinary situation, the government and people have come to understand that national survival depends on national defense and have given unanimous support to the accelerated expansion of defenses and the augmentation of armaments on the basis of self-reliance and independence. This is a requirement of controlling the opportunity for victory.
After years of unceasing effort, we have laid a firm foundation for national defense and the military establishment. After examining the situation and considering the order of priorities, we have decided on three central tasks in enlarging our defense capability: to strengthen our defense deployments so as to fortify our bastion, to augment the combat capability of the three armed forces for sustained operations and to accelerate the development of national defense industry.
In strengthening the defense of our bastion, the armed forces have continued to improve their com bat preparations in keeping with the concept of integrating offense with defense. We shall review and revise our combat plans in accordance with changes in the situation. We have stepped up our air and sea patrols in order to assure that the Taiwan Straits are tightly under our control, thus ensuring the security of our bastion of national recovery. Additionally, we have established a system of automatic air defenses, improved the civil defense organization and training, and bolstered our all-people combat system in coordination with our economic development. We have stepped up preparations for wartime field administration, improved our combat exercises and training, and completed our readiness for instant action. In coping with the situation arising from the U.S. recognition of the Chinese Communists, we have enforced an all-out emergency alert, strengthened our intelligence network and increased our capability for detecting and collecting intelligence. We are prepared to take up a challenge at any time.
In strengthening combat capability, we have improved the personnel system of the armed forces and raised the quality of their training in motivation so as to raise morale and improve the performance of the rank and file. We have effectively implemented the system of well-prepared officers to augment combat capability at the basic stratum. In education and training, we are augmenting combat capability by gearing the tasks of combat to our army-building concept, the Chinese Communist situation and scientific and technological developments, and also by raising the educational and training standards of the three armed services. In modernizing armaments, we have given priority to the strengthening of the Army's air defense capability in the field and to improvement of anti- tank and anti-amphibious capability. For the Navy, priority has been given to air defense and anti-submarine and anti-torpedo boat capability. For the Air Force, emphasis has been placed on the modernization of radar and other electronic equipment, the acquisition of high-performance aircraft and the provision of means to support the needs of the Army and Navy.
In developing national defense industry, your warm support is greatly appreciated. I want to express my admiration for your expediting of the "Statute governing the foundation for development of the national defense industry" that we had prepared to promote development of industries related to national defense in coordination with the spending of the fund derived from the patriotic donations of our people. Now that boards of directors and supervisors have been established, the foundation will be able to proceed with effective mobilization of the productive capability of public and private enterprises and the expertise of scholars and specialists at home and abroad to help the Ministry of National Defense develop new weapons and provide the national defense industry with new capability to produce weapons on its own.
We now have the capability of making some weapons and producing aircraft in cooperation with others. Some of this new equipment was displayed at the military parade on our National Day last year. We still have need to pool our scientific and technological manpower, introduce foreign technology and combine the capability of military, public and private enterprises in developing and manufacturing heavy equipment and sophisticated weapons if we hope to attain the goal of our own weapons modernization and improvement.
Assuring economic prosperity and reinforcing our own strength
The prospering economy is the mainstay of our great national strength. Cooperation between government and people and our constructive efforts have assured the growth of the economy in recent years. National strength and the people's livelihood have been improved and our international status raised. In these last few years, especially, we have overcome continuous political and economic buffetings, surmounted crises and maintained steady growth, thus winning high regard in the international community. In this time of national emergency, we cannot afford to slacken the pace of economic development. Rather, we shall develop our economic potential by utilizing the existing base and thus augment our strength to cope with any eventuality.
Last year was the third in our Six-Year Economic Development Plan. The international economic revival of that period helped our economy to grow rapidly under favorable conditions of brisk exports and a high rate of investment. The economic growth rate reached an all-time of 12.79 percent in real terms, well ahead of the rates of neighboring countries (Korea, 12.5%; Japan, 5.8%; and the United States, 3.8%). Even so, commodity prices remained stable with the average consumer price index up 5.8 percent over the previous year and the wholesale price index up by only 3.5 percent over the same period. Our policy goal of achieving rapid growth while maintaining stability was fully achieved.
Now let me elaborate on the situation in our agriculture, industry and trade:
For last year, our estimated agricultural production was down 1.5 percent compared with the previous year. But except for the planned reduction in rice output owing to oversupply and the planned decrease in timber production to provide for soil conservation, all other agricultural staples connected with the livelihood of the people - including livestock and fishery products showed increases. This made a sizable contribution to the stability of commodity prices. Last July and August, oversupply led to a persistent slump in rice prices and affected the income of farmers. Besides suspending the second crop land tax, the government adopted the following four measures:
- Directing Farmers' Associations to accelerate the purchase of rice from farmers for export.
- Liberalizing regulations to allow rice merchants to make purchases outside their prescribed areas.
- Allowing seasonal fluctuations in the price of rice.
- Lowering the target of 1979 rice production to 2.35 million metric tons.
As a result, rice prices bounded back and reached a new high. Agricultural management has been made increasingly difficult by the labor drain in the countryside during recent years. This led the government to pro mote farm mechanization vigorously. As of the end of last year, paddy field preparation had been 84 percent mechanized. Transplantation and harvesting were each 40 percent mechanized. To bridge the income gap between fanner and non-farmer and the living standard gap between countryside and city, the Executive Yuan recently adopted the "plan for raising farm income and promoting rural construction." The government will invest NT$25 billion (including loans) in agriculture during the next three years to implement the policy of coordinated agricultural-industrial development.
Domestic industrial production made rapid progress last year. The growth rate of 25.4 percent was a record for the last 25 years. It is especially noteworthy that the heavy and chemical industry, one of the Ten Major Construction Projects, has come into operation, and showed a growth rate of 39 percent last year compared with only 15 percent for light industry. This indicates the steadily increasing importance of heavy and chemical industry in the over all industrial structure and the steady progress toward industrialization at a high level. Moreover, wages in manufacturing industry increased an average of 15 percent from January to September, while labor productivity did even better with a gain of 20 percent. This decrease in the labor cost of production was the main reason for the big increase in last year's industrial exports.
Foreign trade showed sizable growth last year. According to customs statistics, exports and imports totaled US$23,727.3 million last year for an increase of 32.8 percent. Exports totaled US$12,704.9 million and imports US$11,022.4 million for a favorable balance of US$1,682.5 million.
Our favorable balance of trade with the United States has been increasing for many years. Last year's surplus exceeded US$2.6 billion. In trying to redress the imbalance, the government sent three procurement missions to the United States last year. These missions spent US$1,550 million. As of the end of last year, the ROC-U.S. negotiations on tariffs had been completed. Both sides slashed rates and agreed to remove non-tariff trade barriers.
In the light of the international situation, the government is helping the four newly established large trading companies expedite establishment of overseas branches so as to diversify their export areas. The Ministry of Economic Affairs is reinforcing the functions of its "Task Force on the Trade Restrictions of Foreign Nations" and setting up a system of voluntary readjustments and regulation of export volume so as to avoid restrictions on our foreign trade by other countries. At the same time, the government is strengthening overseas trade establishments, augmenting economic relations with other countries and bolstering the capabilities of private enterprises for overseas activities. We have been watching the Chinese Communists' "four modernizations" closely in order to assess its possible effect on our foreign trade and considering countermeasures.
Rapid export growth, especially the big increase in our favorable balance of trade, is accompanied by the destabilizing problem of a steady increase in the money supply. Consequently, the government has adopted such measures as appreciation of the NT$ rate, tariff cuts, liberalization of imports and the lifting of restrictions on procurement areas. A flexible system of exchange rates was established February 1, 1979, to protect the domestic economy from the inflation of other countries.
Much of the credit for the sustained growth of our economy goes to our financial and fiscal departments, which have fully performed their functions of regulation and support. They have achieved tangible results in con trolling budgets, encouraging in vestment, regulating money sup ply and reforming the tax system. At present, our foreign exchange reserve exceeds US$6 billion. Last year's budgetary surplus exceeded NT$8.3 billion. Counting the cumulative surpluses of past years, the amount has topped NT$67.39 billion. After meeting the needs of such special budgets as those of the North-South Freeway, accelerated rural construction, national defense procurement and preparation, the food price equalization fund and transfers to the fiscal 1979 budget, there is a sizable balance for proper use by the national treasury as circumstances require. A sound financial structure makes a great contribution to economic stability and development.
In recent years, we have gone all-out to complete the Ten Major Construction Projects. Already operative or productive are Taichung Harbor, Kaohsiung Shipyard, the China Steel Mill, nuclear power plants, the petrochemical industry, North-South Freeway and Suao Harbor. Part of the railway electrification project has been completed and opened to traffic. Construction of the Taoyuan International Airport has been completed. To honor the great accomplishments of the late President Chiang Kai-shek in our country and the world, the Executive Yuan has decided to rename the airport as the Chiang Kai-shek International Airport. It will become operational February 26, 1979. The North-Bend Railway is to be completed and opened to traffic by the end of this year.
The focus of our future infrastructure construction will be on expedited planning and implementation of the new Twelve Construction Projects. Recently the Executive Yuan approved the "Flood Control Plan for the Taipei Area" and the "Plan for the Construction of the Feitsuiku Reservoir" for implementation by the Taiwan Provincial Government and the Taipei Municipal Government. The flood control plan provides a permanent solution for flooding in the Taipei area and will be implemented stage by stage. The reservoir will provide a permanent solution for the problem of Taipei's water supply. These two problems have been of major concern to the people of northern Taiwan in recent years. The government will oversee the departments responsible for planning and implementing these projects and will see that designs are proper and that the work is carried out earnestly in order to protect the lives and property of the people of the Taipei area and improve the quality and quantity of their water supply.
As I have already said, although the Republic of China and the United States have severed diplomatic relations, their common interests necessitate the continuation of commercial, cultural, scientific and technological ties. To face ever keener competition in the international marketplace and the expected efforts of the Chinese Communists to seize on any and all opportunities to damage and sabotage our economic development, the government is carefully considering proper measures to assure continued economic growth. Major measures for future economic development will include:
- Stockpiling of imported raw materials for agriculture and industry and adjustment of the import and export of daily necessities in order to assure adequate supplies and price stability.
- Encouragement of public and private industries to invest abroad so as to assure supplies of the principal agricultural and industrial raw materials needed at home. At this time, both the supply and price of energy are unstable. We should actively develop new energy sources, increase our defense stockpile and give our attention to economy in the use of energy.
- Continued development of heavy and chemical industries, machinery industry, electronic industry and the automobile industry in coordination with the development of national defense industry.
- Inducement of accelerated change in the industry structure with vigorous assistance to the civilian sector in developing technology-intensive industry. We shall revise the statutes for the encouragement of investment, providing more incentives and stimulating the people's interest in investment. We also shall provide all necessary technical guidance and help with the direction provided by the plan for scientific and technological development. The Central Bank recently decided to allocate US$300 million to support civilian sector investment in technology-intensive industry.
- To speed the modernization of equipment by major export industries and mergers to raise efficiency and improve product quality, the Central Bank has allocated another US$300 million for loans to obtain the necessary machinery.
- To expand foreign trade, we are establishing world trade centers, supporting the establishment of large trading companies and helping exporters diversify markets, backing expanded production lines and promoting the export of production equipment, durable goods and high-grade consumer products so as to reduce our dependence on the United States and Japan and to cope with the Chinese Communist threats of dumping.
Strengthening the national foundation and developing culture, education, science and technology
Honorable members: We must continuously pour manpower, money and materials into the effort to further national construction so as to make our country wealthy and strong. We have special need for talent in science and technology in order to augment our power for national salvation and accelerate our construction. The development of culture, education, science and technology is therefore one of the basic goals of the administration.
Education is the foundation of our country and also our "invisible national defense." The principal guideline in the government's development of education is to progress from quantitative expansion to qualitative improvement. This will enable the various levels of education to develop their functions to the full in instilling knowledge and changing temperaments, thus cultivating excellent talents and good and decent citizens for the country.
In quantitative terms, we had implemented nine-year free education for a full ten years at the end of last year. According to statistics, the attendance rate in junior high schools increased from 74.66 percent to 94.21 percent and that of primary schools from 97.67 percent to 99.57 percent. This shows our remarkable accomplishments in offering educational opportunity.
Since announcement of the U.S. establishment of diplomatic relations with the Chinese Communists, we have witnessed the impassioned demonstrations of patriotism by indignant young people at home and abroad. This has given us full realization that the Chinese youths of this generation are courageously accepting the tests of the times and are prepared to shoulder the responsibility of national salvation.
This is where our hope lies; this is the source of our confidence. This is also proof that our various educational levels have succeeded in changing temperaments and inspiring popular sentiments.
The heart of our future educational task lies in the perfection of primary and junior high school education, the strengthening of ideological education based on Dr. Sun Yat-sen's Three Principles of the People and the establishment of vocational education to meet the needs of national construction. We shall also try to improve educational evaluation, making adjustments in departments and curricula, raise the level of teachers' qualifications and improve school facilities, thereby promoting the quality of education and augmenting national power.
The government has decided to establish a university or college in the Kaohsiung area to meet the requirements of southern Taiwan's development. The Ministry of Education is making active plans for this.
We know that accelerated scientific and technological development is an urgent task in the strengthening of national power, especially at a time when the economic structure is changing rapidly and national defense must be further strengthened.
To assure this acceleration, we are formulating the program for scientific and technological development with reference to the suggestions and opinions advanced at the national science and technology conference held early last year and in the light of the urgent requirements for construction. The program provides that scientific and technological development be geared to the requirements of national defense, the economy and the people's livelihood so as to reach the overall goals of developing the national potential, accelerating national construction, improving the living standard and reducing the reliance on foreign countries. This program includes scientific and technological education, vocational training, international cooperation, introduction of foreign technology, and research and development. The government agencies concerned are formulating plans for implementation. We are determined to take decisive action to bring into full play all the forces at our command and employ domestic and foreign scholars and experts to elevate the level of research so as to accelerate implementation of the program and expedite progress in national construction.
The "Hsinchu Scientific Industrial Experimentation Park" is under construction under the plan to encourage the development of technology-intensive industries. Steps are under way to establish industries emphasizing research and development there. Plans have been completed by the industrial Technique Research Institute for an "integrated circuit experimentation workshop" and a "precision tools and machinery development center," and these are beginning to serve domestic precision industries.
Developing political construction with sincerity and solidarity
In combination with the people's efforts to move ahead with political construction, every government measure is based on the Constitution and takes the people's livelihood into primary account. We shall use administrative renovation as a stimulus to improve political construction. These are highlights of internal administration:
1. Readjustment of local administrative organs: The success or failure of democratic government depends on the soundness of administrative organs at the basic level. The government has satisfactorily readjusted the organizations of local governments to keep them in step with an increasingly prosperous society. It has also studied problems of finance, personnel, organization and functions of various offices in villages, townships and cities under the jurisdiction of counties and districts in order to seek further improvement.
Southern Taiwan has become increasingly prosperous in recent years. Because of its thriving industry and commerce and rapidly increasing population, Kaohsiung has been qualified under the Municipal Organization Law for elevation to the status of a special municipality under the direct jurisdiction of the Executive Yuan. Considering the actual situation and with respect for the opinion of the people, the government has authorized the transformation of Kaohsiung to the status of special municipality as of July 1 this year. We believe this administrative change will be helpful in accelerating the development of the whole southern area.
2. Universal implementation of the equalization of land rights: The task of deciding land prices for more than 1,560,000 hectares has been completed. Collection of the land value tax and land value increment tax for the first segment of more than 1,080,000 hectares is under way in a further step to see that land benefits are shared by all the people.
3. Improvement of land administration: In keeping with the rapid development of national economic construction and the consistent government principle of serving the people, the organization of land administration agencies must be strengthened, land administration improved and land ownership registration data ensured so as to attain the goals of total exploitation of the land and the popular sharing of its benefits. Improvement measures have been formulated for implementation by the competent agencies.
4. General elections: The general election office was established last July 18 to plan and carry out election of additional central level representatives on a fair, just and open basis. Elections were scheduled for December 23, 1978. However, as the country was facing an extraordinary situation, the President issued on December 16 an emergency order to postpone the elections and suspend all campaign activities. The extraordinary situation is continuing, and a decision on resumption of the elections can be made only as conditions permit. With tenure of previously elected central representatives about to expire, the Executive Yuan recommended that the President issue supplementary instructions regarding his previous emergency order in accordance with the provisions of Article 1 of the Constitutional Temporary Provisions Effective During the Period of Communist Rebellion. These instructions issued last January 18 stipulate: "During the time of the postponement of elections of additional central level representatives, the central level representatives elected for the last term of office shall continue to exercise their powers until such time as the newly elected representatives start to exercise their powers." The general election office has stipulated these four points concerning the election: (1) All registered and declared candidates in the elections for additional members of the National Assembly, Legislative Yuan and Control Yuan will continue to be qualified. (2) Election officers will inform candidates to take back their election deposits. (3) As a precaution, printed ballots and printing types will be destroyed and new ballots printed when the election is resumed. (4) The name lists of electors will be temporarily placed in the custody of the compiling agencies.
5. Strengthening of police administration: To maintain social order and security, we are stressing the strengthening of the police force, modernizing the police and augmenting investigation and prevention of crime so as to protect the people's rights and benefits. Those who violate the law shall be dealt with strictly in accordance with law so as to assure social tranquility. There were 25,000 criminal cases in 1978 and 84.7 percent have been dealt with. The average criminal rate in our country last year was 0.287 percent, much lower than the figures for Western countries.
All government measures are taken in accordance with the principles of democracy and the rule of law. It is our hope that all of the people will be law-abiding, and that government and people will cooperate with sincerity. The government is studying revision of the "Law for the Punishment of Police Offenses" in keeping with the requirements of related laws and also studying enactment of the "National Compensation Law" to provide more protection for the people's freedoms and rights. These two bills will be submitted to your esteemed Yuan within the fore seeable future.
Benefiting the people and promoting unity and harmony
Honorable members: Since 1911, there have been two occasions of earthshaking great national awakening and unity. The first was during the Northward Expedition when the people prepared food and drink to welcome the National Revolutionary Army, which defeated the war lords and unified the country within two years. The second was during the War of Resistance Against Japan; all the people rose up to fight the Japanese aggressors and eventually won the victory. With the severance of ROC-U.S. diplomatic relations, the deeply moving patriotic deeds of the Chinese people a t home and abroad have amounted to another great national awakening and expression of unity by people and soldiers for the salvation of the nation.
We believe that since the government is supported and trusted by all the people, it should do all within its power to serve the people's welfare and promote social harmony as a way of advancing constitutional rule and urging the people to unite further to save the country.
For years, the fundamental policies of the government in promoting the people's welfare have included: 1. Acceleration of economic growth to raise per capita income and narrow the gap between rich and poor in keeping with the principle of the equalization of wealth. 2. Strengthening social construction and augmentation of social welfare to improve the people's livelihood. In improving the people's livelihood, emphasis is placed on quality as well as quantity, and attention is given to the balanced and coordinated development of each district. In other words, we want to realize the balanced development of material life and spiritual life and the equal development of urban and rural construction. We want to take care of everyone.
According to statistics, per capita income in 1978 was US$1,304, nearly seven times that of 1953, the first year of the first four-year economic plan. The ratio of the gap between rich and poor has been narrowed from 5.3 to 1 in 1964 to 4.18 to 1 in 1978, indicating that as we develop our economy, we are also moving toward our goal of equalizing wealth. Considering the stabilization of commodity prices, improvement of the people's livelihood - including an adequate supply of food, clothing, housing, transportation, education and recreation - and the lengthening of the life span, it is apparent that the quality of our people's life is among the best in the developing nations.
To make further improvements in the quality of the people's livelihood and to augment their welfare, the government will continue to enlarge public facilities in rural areas, improve public sanitation and especially to lift the living standards of workers and farmers. To enable the people to enjoy the fruits of national construction and achieve a balance in the development of material and spiritual life, the government is giving attention to the following programs:
- Acceleration of public housing construction. A central committee on the management of public housing has been established to coordinate and allocate funds. A housing and urban development bureau will be set up under the Provincial Government, and the public housing bureau of the Taipei City Government will be enlarged to provide for improved implementation of its assignments.
- Improvement of transportation with government supervision and improvement of bus service in suburban areas, development of a mass transportation and improvement of railroad management and financial structure.
- Social administration assistance to farmers, fishermen, workers, and business and industrial groups in strengthening and perfecting their organizations; augmentation of help to old people's homes and orphanages in carrying out social relief; and additional aid to low-income groups through job training and employment services.
- Increase of the mandatory minimum monthly wage from NT$600 to NT$2,400. We have recently amended labor insurance regulations, expanded coverage, increased benefits, raised payments and improved the working environment and security facilities to protect the interests of workers. Departments concerned are preparing a "Labor Standards Law" that will be sent to your esteemed Yuan for approval.
- Betterment of the livelihood of people in rural and remote areas. In addition to continuing efforts to control black foot disease, the Executive Yuan last year formulated the "Plan for accelerating the improvement of the livelihood of people in remote areas" and the "Plan for strengthening medical care in rural areas." Both programs are being vigorously promoted by the Provincial Government.
- Travel abroad for our people. The government began to process applications for tourist visas on January 1. This is a popular measure.
- Establishment of a cultural center in every city and county. This is one of the new Twelve Construction Projects. In coordination with this undertaking, the government has approved plans to augment cultural, educational and recreational activities to as sure the proper use of leisure time.
We are of the view that in order to promote social harmony, we must first perfect psychological preparation, reform social customs and strictly implement administrative innovation. Only then can we have a peaceful, happy, prosperous and model society.
In his 1979 New Year's message, President Chiang Ching-kuo said: "Psychological preparedness equates to spiritual development. We must arouse the conscience of all and work hard to 'revolutionize' our minds. This will establish our people's independent mental foundation and strengthen the resiliency of their staying power in time of hardship."
The reinforcement of psychological preparedness depends primarily on the influence of education and the self-consciousness of the people. To carry it out, we must arouse the righteousness and patriotism of every citizen in the love of his country and persuade him to sacrifice for the country and save the country. This is the task of education in the schools and society. We hope that all of us will "revolutionize" our minds. Sincerely and conscientiously prepare to fulfill our responsibilities of saving the country by strengthening ourselves.
Today, all of our compatriots at home and abroad must unite with one heart like passengers aboard a boat sailing through stormy waters. Only if the whole nation is united can we protect the democratic and free political system of our country and the welfare of our people. Additionally, we must strengthen our contacts with the Chinese overseas, as well as with students and scholars abroad, by inviting them to visit us more often and join in the annual sessions of the national construction seminar to contribute their valuable suggestions for the build-up of the nation.
We are of the view that the practices of society have immense impact on the prosperity of our country and the morale of our people. As we face hardship and ordeal, we shall not allow any bad practices to demoralize our hearts or erode our morale. From now on, we must eliminate prodigal and wasteful habits and levy heavy impositions on luxurious consumption in the effort to wipe out conspicuous consumption and extravagance. We need to cultivate a brisk and vigorous spirit. We are now soliciting opinions from every corner of the country so that we can formulate such improvements and create a new vista for our society.
We must also point out that the conduct of a society is closely related to its political morality, and that the latter always sets the course for the former. We therefore hope sincerely that all government employees and the staffs of educational institutions will set examples for the people by behaving themselves constructively and honestly. We shall inflict severe punishment on any corrupt and derelict officials and thereby ensure honest and competent government.
To enforce the renovation of government administration, government officials must carry out all the "Ten Renovations" and cultivate a good political climate. Additionally, the government will earnestly enforce the three plans to improve the efficiency and morals of the judiciary, the tax officials and the police. To improve service to the people, the Executive Yuan has set up a task force to urge all levels of government employees to seek constant improvement. To enhance administrative efficiency, the government has advocated the employment of modern scientific management in the administration of all organizations, the implementation of the system of delegation of responsibility and the simplification of paper work for the people. Recently the government promulgated a "work simplification plan" for implementation by various organizations. Simplification of statutes and regulations is continuing. From July, 1972, to December of last year, the regulations of the various ministries and other government agencies were cut from 7,072 to 4,075. This process is also continuing.
Carrying out the sacred mission of national recovery with one heart
Honorable members: Although the establishment of diplomatic relations between the United States and the Chinese Communists has dealt a heavy blow to our diplomatic undertakings, this does not imply that the Chinese Communists have gained. The inhuman Communist heresy and a regime that tyrannizes human beings and denies their rights has succeeded only in advancing its deceptive intrigues; in the end it will not be tolerated by the Chinese people. The Communist way of life can never be accepted by conscientious people, and this means that the Chinese Communist regime is destined to collapse.
Especially, I want to point out: The Chinese Communists have recently resorted to a series of united front tricks in an attempt to accomplish their political aims through a smiling-face offensive. Their overtures for peace negotiations amount to an attempt to place themselves in a position of a "central government" talking "autonomous conditions" with a "local government." If we were to fall into this trap, we would be making the mistake of giving up the goal of our struggle of 68 years and sacrificing our international personality. Our compatriots at home and abroad should heighten their vigilance against Communist united front intrigues and prepare to smash all challenges directed against us.
The existence of the Republic of China not only safeguards the 17 million free Chinese people on Taiwan, Penghu, Kinmen and Matsu, who are continuing to enjoy a free, equitable and prosperous life, but also accepts the sacred mission of terminating Communist tyrannical rule in a common struggle with the Chinese people on the mainland. We shall rebuild a modern China with our accomplishments on Taiwan as the blueprint. This is the Republic of China's basic policy and the common aspiration of all Chinese.
Honorable members: Today, we are not afraid of any adversity or difficulty. Our compatriots at home and abroad have united with one heart and are determined to sacrifice themselves for the country and rally behind the government. All of my administrative colleagues have been urged to realize the importance and seriousness of the current situation in terms of both time and place. This is the crucial time for our country. This place is the outpost of anti-Communism and mainland recovery. We can count on the support of the people. We have complete confidence ill the truth that crisis stimulates national rejuvenation. We shall encourage one another to carry on with moral fortitude and dedicate our selves to the country and our readiness to sacrifice for it. All of us should thoroughly review his duty and try to carry it out quietly and efficiently. We must fix our eyes in the right direction and march steadily toward the goal of a strong country and a rich people. In so doing, we shall repay the support and live up to the expectations of our com patriots at home and abroad. Only in this way can we fulfill responsibility to our history, culture and offspring. Only thus can we transform our united will into a city wall that will assure our victory and achieve the sacred mission of national reconstruction and national recovery at one and the same time.