Addressing the opening session of a two-day Kuomintang Work Conference, the President called on party members to face reality and show willingness to sacrifice.
As a party representing all the people, President Chiang said, the Kuomintang must express, respect and develop the people's views through elections.
The President cited these party expectations in the December parliamentary elections:
- To implement provisions of the Election Law, ensure democratic constitutional government and lay the foundation for the government's permanent success and enduring stability in fair and square voting.
- To elect the wise and the able so as to assure solidarity and harmony artd serve the people. The people must abide by the law and the government must live up to its promises.
- To carry out the December elections in the spirit of "doing everything in the interest of the people," to renovate party work and to discipline party candidates.
"All of our party members should fulfill their responsibilities with regard to the elections," the President said.
Summing up, he declared: "At this decisive moment of national security and existence and in the general picture of the Revolution, the party occupies the position of a monolith in the rapids, providing the assurance of national revival and playing the service role of guide. We have strong confidence and an inescapable duty."
Land consolidation should proceed without delay, President Chiang told the Kuomintang Central Standing Committee.
The committee was briefed on agriculture by Wang You-tsao, vice chairman of the Council for Agricultural Planning and Development.
President Chiang said the government should see to it that farmers are not overburdened in the process of consolidation. Domestic sales and exports of farm produce should be carefully planned, he said, and agricultural development should proceed on four fronts: technical innovation, increased unit production, improvement of transportation and augmentation of medical facilities.
Taiwan's economy improved after land reform, the President said. Agriculture then supported industry. Now it is time for industry to support agriculture, he added.
The President has found gaps between supply and demand during his frequent trips to the countryside. He warned farmers not to raise too many eels, lest the prices go down, and that has happened.
Farming is changing, he said, and new problems will have to be solved through new approaches.
A land consolidation program launched several years ago had to be suspended because of technical difficulties. The program encourages farmers to swap holdings with others so as to eliminate widely separated plots and make mechanization easier.
Premier Y.S. Sun said the Republic seeks a reunified China of freedom and democracy.
This mission involves not only the people of Free China but also the overseas Chinese and the people on the mainland, the Premier told the 1980 National Development Seminar.
Addressing each of the seminar's seven panels, the Premier made these points:
- The Republic of China will continue promoting democratic rule and intends to lay a foundation for democracy by strictly enforcing the rule of law in the upcoming parliamentary elections.
- Substantive ties with friendly countries will be strengthened in the absence of formal relations.
- Education will be further promoted.
- A new cultural policy will be implemented by a special agency.
- Labor productivity will be raised and energy conserved in the 1980s.
- In science and technology, research on oil substitutes, computers and advanced industrial technologies will receive top priority.
- Medical services will be augmented and problems arising from industrialization and affluence tackled.
- A healthy environment will be assured the mass communications media so they can perform their function as a bridge between the people and the government.
Although the Chinese Communists have launched a united front offensive against the Republic of China and even declared their willingness to establish "postal, commercial and transportation links," the government will not fall into the Chinese Communist trap of peace talks, Premier Sun said.
The Premier made his remarks in an interview conducted in Taipei by Jose Oneto, director of the Spanish magazine Cambio 16. Following is the full text:
Q. 1. What is the present relationship between the Republic of China and the Chinese mainland?
A. The government of the Republic of China has repeatedly declared its stand of making no contact with the Chinese Communist regime, not to mention any relationship.
Recently, the Chinese Communists have launched a united front (political) offensive against us, and even declared their willingness to make "postal, commercial and shipping links" with us. The purpose has been to pretend a gesture for peace to hoodwink the free world, dampen our morale and popular sentiments and pave the way for military invasion. They also arrogantly declared that we must forsake the title of the Republic of China and its national flag of White Sun over Crimson Ground. This totally exposes their intrigue and ambition of swallowing up Taiwan, Penghu, Kinmen and Matsu and enslaving our free people. Based on the historical lesson it has learned, the government of the Republic of China will not fall in to the Chinese Communist trap of peace talks.
On the other hand, after 30 years of tyrannical rule, the mainland compatriots are suffering extreme poverty and backwardness. Now they have waked up ideologically and asked for renouncement of Communism and return to the road of Chineseness and modernization. They are more openly inclined to admire the achievements made in Taiwan in realizing modernization and construction. Our present efforts in free areas are designed to use our achievements and experience in construction as a blueprint for reconstructing a new unified China of freedom and happiness. We will continue to exert efforts in construction and augmenting national strength and will resolutely support the great, long-term struggle for regaining freedom, democracy and Chineseness. We are firmly convinced that with common aspirations and desires of the Chinese people, the Three Principles of the People will be finally carried out on the Chinese mainland.
Q. 2. What is the political situation in the Republic of China?
A. The security of the Republic of China has been under serious Chinese Communist threat in the past 30 years. Even under difficult conditions, the government of the Republic of China has spared no effort in national construction. We understand that political and social stability is the prerequisite to economic development, which can also supplement the former. Economically, we have seen to it that the people are free from want; the national economy is continuously booming. In political construction, we have been endeavoring to carry out democracy and the rule of law, protect the people's rights and interests and establish an honest and effective administrative system.
During the course of development, of course, social and political maladjustments could happen occasionally. But the government and people pursue the same goal of seeking security, welfare and social harmony. Their aspirations are held in common. The whole society is united. The government of the Republic of China has managed to keep up with the times. Under the present circumstances, it is accelerating improvement of systems and renovating ideas and employment of talents so as to maintain its vitality in seeking political progress.
Q. 3. What are the economic prospects of the Republic of China?
A. (1) The Republic of China has maintained rapid economic growth in the past 30 years, with the growth in the later phase even faster than at frrst. The gross domestic product attained an average real growth rate of 9.1 per cent from 1941 to 1979. During the decade from 1970 to 1979, when the world economy stagnated because of the energy crisis, the Republic of China maintained an average annual growth rate of 10 per cent. Factors of the growth included increased employment and continued promotion of productivity. In the past, our labor productivity increased from an average of 6 to 7 per cent a year. This plus the annual increase rate of 3 to 4 per cent in employment made the 10 per cent economic growth possible.
The rapidly increasing employment rate has resulted in more workers and fewer dependents in each household. Continuous promotion of productivity has also caused a large increase rate in the real wage. Both conditions contributed to remarkable increases in workers' incomes and have been instrumental in improving the distribution of earnings. Furthermore, the government has adopted the progressive income tax and increased social welfare expenditures, thus continuously shortening the gap between the rich and poor during the rapid economic growth. In 1964, the individual incomes of the highest 20 per cent were 5.32 times those of the lowest 20 per cent. The gap was continuously narrowed to 4.18 times by 1978. Taiwan is one of the few areas that has simultaneously attained the two targets of rapid economic growth and equitable distribution of wealth.
(2) The economic policy of the Republic of China has been: to develop the technology-intensive industries that use less energy but turn out highly valuable products to expand foreign markets; to establish capital-intensive industries, including petrochemicals and steel; to supply "downstream" industries with abundant raw materials and intermediate products with stable prices; to renovate the facilities of some conventional industries, improve the quality of their products and elevate their productivity so as to promote their competitive power. The 1980s may find a world economy not so favorable to developing countries as that in the sixties. However, after more than 20 years of rapid progress, the Republic of China is advanced in technology and management, capable of overcoming difficulties and in a good position to cope with changed economic trends in the world. Taiwan's per capita GNP reached US$1,870 in 1979. According to our estimate based on economic construction, and if the annual increase rate of commodity prices is maintained at 6 per cent in the next decade, the figure will surpass US$6,000.
(3) The situation of the Republic of China's international receipts and payments has always been good. Even after 1973, when the worldwide energy crisis occurred, we still managed to have surpluses from foreign trade every year except in 1974 and 1975. Our economic policy is not to create a favorable balance. We want to uphold the principle of free trade and promote domestic productive efficiency through appropriate foreign competition. We have formulated statutes for encouraging foreign investment and continuously improved our investment climate. We welcome foreign capital investment together with advanced technology and management skills. Let's join together to bring about the prosperous 1980s.
Governor Lin Yang-kang said the Republic of China still has a vast reservoir of goodwill among the American people even though U.S. relations have been disrupted at the official level.
The governor returned from a two-week, 6,000 mile swing across the U.S. He signed agreements with four of the five states he visited for the establishment of sister relations.
He said state governments, the majority of the American people and the U.S. business community especially have a high regard for the Republic of China.
"They have great confidence in our future," said the governor. "It is their view that we are marching in the right direction and will continue to prosper. "
Commenting on the bombing incident at the California home of Kaohsiung Mayor Wang Yu-yun's son, Lin said it evoked widespread indignation among the Chinese residents.
While he was meeting a group of overseas Chinese in Los Angeles, four dissidents intruded into the room, angrily attacking the government for what they called the "harsh punishment" of participants in the Kaohsiung riot.
"I received them politely and told them the government handled the case with magnanimity and forgiveness. My explanation silenced them completely," he said.
Governor Lin said he hopes the government will establish communication with the dissidents and eliminate their misunderstandings.
The Central Election Committee has divided Taiwan into eight districts for the December 6 partial general elections of 53 legislators and 101 National Assemblymen.
Chiu Chuang-huan, interior minister and chairman of the committee, made the announcement.
Taipei City, a special municipality, is one of the eight. As of the end of June, it had a population of 2,213,194 and will elect eight legislators and seven National Assemblymen. Of the legislators one will be a woman.
Kaohsiung City, another special municipality, is also a district. As of the end of June, population was 1,189,345, providing entitlement of five legislators, one a woman, and "three members of the National Assembly.
The rest of Taiwan had a population of 14,216,872 at the end of June and will elect 38 legislators, including three women, in six districts.
The first district comprises Taipei and Ilan Counties and Keelung City. With a population of 2,974,362, it is entitled to elect eight legislators.
The second district is made up of Taoyuan, Hsinchu and Miaoli Counties. With a population of 2,209,480, it will elect six legislators.
The remaining districts are:
Third: Taichung, Changhua and Nantou Counties and Taichung City. Population of 3,262,210; nine legislators.
Fourth: Yunlin, Chiayi and Tainan Counties and Tainan City. Population of 3,159,682; eight legislators.
Fifth: Kaohsiung, Pingtung and Penghu Counties. Population of 1,976,884; five legislators.
Sixth: Hualien and Taitung Counties. Population of 634,254; two legislators.
Two additional seats in the Legislative Yuan are reserved for aborigines.
Altogether 53 seats will be filled in the Dec. 6 elections for the Legislative Yuan from Taiwan, including two special municipalities.
Kinmen and Matsu island groups will elect one legislator.
The National Assembly seats at stake include:
Taipei City, 7; Kaohsiung City, 3; Taipei County, 7; Han County, 1; Taoyuan County, 3; Hsinchu County, 2; Miaoli County, 1; Taichung County, 3; Changhua County, 3; Nantou County, 1; Yunlin County, 2; Chiayi County, 2; Tainan County, 3; Kaohsiung County, 3; Pingtung County, 2; and Taitung County, Hualien County, Penghu County, Keelung City, Taichung City and Tainan City, 1 each.
Two assemblymen win be elected by aborigines and one each from Kinmen and Matsu.
Professional groups will choose 16 members of the Legislative Yuan and 27 legislators will come from overseas Chinese communities.
Women's organizations will name 7 members of the National Assembly.
The Control Yuan election will be held December 27. Thirty-two seats will be filled: 12 from Taiwan Province, 5 each from Taipei City and Kaohsiung City and 10 from overseas Chinese communities.
Control Yuan members are elected by members of the Provincial Assembly and city councils.
Foreign Minister Fu-sung Chu said the Republic of China will neither play the "Soviet card" nor make nuclear weapons.
"Our anti-Communist policy is total," the foreign minister said. "We will not compromise it with any Communist country."
The Soviet Union is a Communist country even though for the time being it happens to be the enemy of Free China's enemy, Chu noted.
"Although changes may call for expediency, this is a matter of approach and does not involve policy," Chu declared.
The foreign minister reiterated President Chiang Ching-kuo's statement that Free China will not make nuclear arms, although it has the ability to do so. People of the mainland are also Chinese.
Legislative Yuan approval was given the Energy Management Law. Factories which consume large amounts of energy are required to install fuel storage facilities to maintain a reserve.
Guidelines for enforcement have been completed by the Ministry of Economic Affairs and the law awaits approval of the Executive Yuan.
Cost of installing storage facilities will be offset by accelerated depreciation tax incentives.
Companies which produce, transform, store or sell energy products will also be required to set up such facilities and also will be granted tax incentives.
Other highlights of the legislation:
- Energy-intensive industries will report to and be guided by government agencies.
- Plants producing large quantities of steam will be required to harness it for power generation and will benefit from tax incentives.
- Companies which consume large amounts of energy and those with central air conditioning systems will have to employ energy conservation experts.
- Energy consumption ceilings will be set for equipment, appliances and automobiles. Products that do not meet conservation standards will not be imported or marketed.
- Central air conditioning equipment will be operated on a basis of temperature control and those that exceed government specifications will have to pay more for electricity.
- Companies using large amounts of energy will be required to set up conservation programs.
- Controls and restrictions can be imposed in case of energy waste.
- A fund will be established for energy research and encouragement of the quest for new energy resources.
Steps are being taken to give the Republic of China a social security system to match those of Europe and the United States.
Health insurance will benefit some 5 million farmers. A program for fishermen is already under way.
Expenditures for social welfare will rank third after defense and foreign affairs and economic and communications construction in the 1981 budget.
At the end of 1979, an estimated 7,670,000 of Taiwan's 17.5 million people were covered by social security.
Included are 408,415 government employees and public school teachers, 2,296,282 workers, 600,000 servicemen and more than 4 million students.
Nearly all registered workers are covered by government insurance. Benefits are given for illness, death, physical disability and old age.
The government is studying foreign social security systems as reference for the establishment of an insurance program for everyone.
Per capita income was NT$61,986 (US$1,722) in 1979, showing an increase of 18.10 per cent over 1978, according to revised figures of the Directorate General of Budget, Accounting and Statistics of the Executive Yuan.
Last year's revised economic growth figure was 8.08 per cent, up from the preliminary estimate of 8.03 per cent.
The gross national product was NT$1,164 billion, NT$400 million higher than the preliminary estimate.
The directorate general gave the following breakdown of real production growth or decline for various industries in 1979:
- Banking, insurance and construction: growth of 20.19 per cent.
- Transportation and warehousing: growth of 10.64 per cent.
- Public utilities: growth of 9.87 per cent.
- Other industries: growth of 9.82 per cent.
- Housing services: growth of 8.19 per cent.
- Manufacturing sector: growth of 7.75 per cent.
- Commercial sector: growth of 7.68 per cent.
- Government services: growth of 6.79 per cent.
- Agriculture: growth of 4.61 per cent.
- Mining: decline of 2.27 per cent.
Wholesale prices rose 13.84 per cent and retail prices 9.75 in 1979.
Kaohsiung Harbor became the world's fifth biggest port for containerized cargo last year, according to an international shipping magazine.
Kaohsiung handled 777,183 containers last year. Kobe handled 1,274,000.
New York was first with 1.8 million containers, Rotterdam was second with 1.76 million. Hong kong's count was 1.33 million.
Behind Kaohsiung carne Singapore, 709,000; Auckland, 700,000; Bremen, 692,000; Hamburg, 690,000; Seattle, 670,000; Pusan, 596,000; and Keelung,562,328.
Volumes at Tokyo, Yokoharna and sorne other major ports were not reported.
In 1978, Kaohsiung handled 569,656 20-foot containers to rank 10th. Total cargo was 63.7 million tons.
To meet growing demand, Container Terminal No. 1 was built in 1970 and Container Terminal No. 2 in 1973, each with four berths.
In 1975, the Kaohsiung Harbor Bureau began construction of the third container terminal. Completion this year will raise Kaohsiung's container handling capability to more than 800,000.
In 1970, the port handled only 7,429 containers. A projected fourth terminal will have eight wharves and be completed in June of 1996. Total capacity then will be 1,789,000 containers.
The Ministry of Communications has given approval to four shipping lines to acquire 10 full container vessels of 25,000 DWT displacement in the next three years.
Four of the ships will go to the Yangming Marine Transport Corporation to open European routes. Another four will be used by the Evergreen Marine Corporation on U.S. and European runs. The other two ships will enter U.S. service.
MOC has screened fmancial and operational plans of the four shipping companies.
Delivery of the ships will be made from mid 1981 through 1982.
MOC also approved construction in the next three years of 11 container feeder ships of 7,000 DWT by five companies.
MOC asked companies which seek 25 Panarna type bulk carriers of 63,000 DWT to present their fmancial and operational plans within the next two mon ths. MOC has decided in principle that only 10 such carriers will be built in the next three years.
Approved by the Cabinet was a drought relief plan which calls for exemption for farm tax in affected areas.
Water conservancy associations will also suspend payments by farmers whose plots are idle because of drought.
Funds will be allocated to water conservancy associations for drought relief.
These other measures were approved by the Cabinet:
- Taipower will supply electricity at reduced cost to farmers pumping water from sealed wells.
- Taisugar will encourage farmers to plant cane up to the limit of the company's refming capacity.
- The government will encourage planting of maize by offering a guaranteed price of NT$11 per kilogram.
- If land is unsuitable for cane or maize, the government willpay farmers a subsidy of NT$5,000 per hectare to improve soil conditions by planting green manure or applying coarse rice husks.
The Cabinet said there will be no shortage of rice despite the drought.
The first rice crop totaled 1,330,000 metric tons, 100,000 tons over target. Drought is expected to reduce the second crop to 900,000 metric tons, or 170,000 metric tons under the target.
Rice output for the whole year will be 2,230,000 metric tons. Domestic consumption is estimated at 2,250,000 tons. The deficit is more than made up by the 1979 surplus.