September 25, 1979
I have come here today to report on the administration at this first meeting of the 64th session of the Legislative Yuan. I wish first of all to thank all of you for your generous support of the Executive Yuan at this difficult moment for our country. It is noteworthy that 37 laws and budget bills were passed at your last session. The quality and speed of deliberation speak eloquently for your unsparing efforts, your conscientious attitude and your spirit of re sponsibility. On behalf of the Executive Yuan, I should like to extend sincere appreciation to every one of you.
The interpellations and suggestions you made at the last session were farsighted, patriotic and wise. These views are held in high regard by the Executive Yuan. We have instructed the competent agencies to carry out your suggestions wherever feasible and incorporate them in various administrative measures. Proposals which have many implications and cannot be implemented immediately will be studied carefully for use as significant points of reference for administrative undertakings. We have seriously considered all of your inter pellations and suggestions and replied to them in detail and candidly. We shall always welcome your counsel.
More than half a year has passed since opening of your last session. In that period, the world has seen continuous change. The unilateral suspension of U.S. diplomatic relations with our country was a staggering blow. We must steady ourselves and stand firmly on our own feet in adversity so as to open up new vista of a bright future. Fortunately, all our people were able to absorb the blow and swallow the bitter with great courage. Self-reliant with vigor, they rallied under the leadership of President Chiang Ching-kuo, accepted the challenge and over carne all difficulties with blood, sweat, perseverance and confidence. The Executive Yuan and the agencies under its jurisdiction are responsible for the administra tion. We feel the weight of the responsibility and always bear in mind the national future and the interest of the people. We have done everything possible to augment national defenses, develop the economy, renovate our government, expand foreign relationships, strengthen cultural and educational activities, and promote science and technology in order to raise the people's living standard, improve the quality of life and especially to extend help and care to tbose living in the countryside and remote areas. We have been trying to place equal emphasis on domestic affairs and foreign relations, and pay attention to national defense and the people's lives all at the same time. The balanced development of material and spíritual reconstruction has increased our visible and invisible strength. The coordinated development of industry and agriculture has assured the prosperity of both cities and countryside. Programs, plans and measures of the Executive Yuan were all devoted to the achieve ment of these goals. We seek im plementation to the letter in or der to ensure successful results and fulfill the expectations of the people. The lfttainment of national reconstruction based on the Three Principles of the People will reinforce allegiance of the mainland Chinese to our govern ment and create a favorable environment for recovery of the Chinese mainland.
Examining the world situation and developing the function of total diplomacy
In the last half year, international developments have been chaotic, and large and small turmoils can be found in every corner of the world. All of these turmoils are attributable to the relentless expansion of the Communist bloc. Asia is the most troubled area in the world. The most striking examples are the upheaval in Iran and the armed conflict between Vietnam and Red China. The Hanoi-Peiping conflict is not accidental but represents an indirect confrontation between Red China and the Soviet Union growing out of their expansionism. This bloody struggle has increased our understanding of the sinister nature of Communism and is an object lesson for the free world. All members of the Communist bloc - Chinese, Russian or Vietnam Communists alike - are storm centers threatening world peace and human freedom. Attempts to appease violence or checkmate one enemy with another can only aggravate world chaos and bring on endless trouble. Free countries of the Asian and Pacific area sitting on the edge of a volcano must close their ranks and firm up their anti-communist stand so they can stem the virulent Red tide and save themselves.
The sources of the refugee problem now confronting the free world are Communist Vietnam and the Communist-controlled Chinese mainland. Essentially, the refugee problem is a human tragedy growing out of Communist totalitarian tyranny. Since the fall of Indochina into Communists' hands, we have shown our humanitarianism by resettling more tban 11,000 refugees by various means. In March of this year as the exodus of the boat people was under way, our govern ment announced its decision to resettle another 1,000 refugees. We contributed money and food to help international relief in stitutions in refugee resettlement. We are also specially concerned witb the situation of mainland Chinese refugees. From 1950 to fue present, more than 167,000 ,refugees have been resettled in Taiwan. Refugees have received material or monetary relief from the Free China Relief Association in sorne 8 million cases. Our government has obviously done everything possible to help re fugees but is cornpelled to point out that as long as the Communists survive the problem will remain with us and there will be no peace in the world. We must urge the free countries to smash the sinister Communist intrigue of using the refugees as a tactical weapon. Effective sanctions should be employed against these shabby doings of Communist regimes that are throwing humanity and human rights to the wind.
Despite the torrent of ínter national appeasement, the Republic of China stands undaunted and determined to remain in the democratic camp while adhering to its fundamental policy of anti Communisrn. Although the execution of foreign policy may change in accordance with circumstances, our fundamental national policy will never change.
Diplomatic activities of the government are currently focused on consolidating diplomatic relations with all friendly countries. Efforts also are being made to improve substantive relations with democratic countries which have no formal diplomatic ties with the Republic of China. Cooperation and relations in trade, finance, culture, science and technology and sports will be augmented, so we can fulfill the functions of total diplomacy.
The Mínistry of Foreign Affairs recently enlisted the services of specialists and research scholars to improve the design and strategy of our international relations. Emphasis also is being placed on the cultivation of talent for foreign affairs. Vigorous efforts are underway to promote diplomatic undertakings. In the last six months, the Executive Yuan has approved "Plans for Reinforcing Diplomatic Activities," "Plans for Relations With the U.S." and ''Plans for Relations With Europe." The Ministry of Foreign Affairs is fonnulating concrete programs for the conduct of diplomacy on the basis of these guidelines.
- Relations with the U.S.: The American govemment has said that the ROC-U.S. Mutual Defense Treaty will expire at the end of this year. We must remain calm, stand firm and strengthen substantive ROC-U.S. relations through action. Cooperation and exchanges in culture, science and technology, trade and finance are being promoted and enlarged through various channels. The Chinese and American peoples share common ideals, so we are convinced that the basic relations of the two countries will be further strengthened through our common endeavors.
- Relations with European countries: We have formal diplomatic relations with the Vatican and representation at the ambassadorial level. Additionally, we have established cultural, trade and economic representation in the major countries of Westem Europe so as to stabilize and ex pand substantive relations. Many European countries have now established quasi-official representation in the Republic of China to carry on economic, trade, cultural and related activities.
Vigorous efforts are under way to establish diplomatic relations or substantive ties with countries of East Asia and the Pacific, Westem Asia, Africa and Central and South America.
The Republíc of China maintains close diplomatic relations with Saudi Arabia. The scope of our cooperation has been expand ing and mutual understadings have drawn our ties tighter in recent yeus. On the 15th of this month, I went to Saudi Arabia at the invitation of the govem ment and exchanged views with Crown Prince Fahd on our bilateral relationship and inter national affairs in general. We joined in reiterating our firm position supporting freedom, peace and human rights, expressed satisfaction with progress in polítical, economic and technical cooperation, and decided to en large the scope and magnitude of these relations.
The Republíc of China recently offered reconstruction assistance to the new Nicaraguan govemment in consolidation of our long-standing relations. Additionally, on September 1, a large quantity of sesame and peanut seeds was airlifted to Nicaragua on a CAL special flight and 1,800 metric ton s of urea was shipped to Nicaragua to help meet agricultural needs. The Republic of China was the first country to airlift seeds to Nicaragua. The CAL flight was warmly welcomed by the Nicaraguan governrnent and people when it landed at Managua.
On September 6, the govemment announced the extension of territorial waters to 12 nautical miles and proclaimed a 200 nautical-mile maritime economic zone. We also announced the reservation of all rights to our continental shelf. These are essential measures to protect our pelagic fisheries and oceanic resources. The authorities concemed are carefully studying the execution of these measures and will complete legal procedures as quickly as possible.
The overseas Chinese scattered around the world are united, patriotic, courageous and imbued with the traditional Chinese spirit of justice. They constitute a major people-to-people force and consolidate the anti-communist great wall abroad. When the United States announced establishment of diplomatic relations with the Chinese Communists, our overseas compatriots were outraged and dispatched a flood of cables to express their allegiance. Last February more than 660 representatives of overseas Chinese communities held a Conference of World wide Overseas Chinese United for Anti-communism to pledge their sincere unity in overcoming the national crisis.
The Executive Yuan has formulated a "Program for Improving Education of the Overseas Chinese" and charged the Commission of Overseas Chinese Affairs and the Ministry of Education with its implementation in order to promote Chinese culture and the education of the overseas Chinese and also to cultivate young talent in the overseas communities.
Developing a self-reliant national defense system expeditiously
Strengthening of national defense is a priority task in the maintenance of national security. The governrnent has taken many extraordinary measures in national defense and other mili tary affairs in order to cope with the current situation. People at home and abroad have contributed money voluntarily and expressed support of the government in procuring armaments and expeditiously developing a self-reliant national defense system. As of the end of August, the people's contributions to the SeIf- Reliant National Salvation Fund amounted to more than NT$3,256 million. This is full demonstration of their patriotism.
At this stage, national defense construction attention centers on the accelerated development of defense industry. Early this year the Executive Yuan set up a policy guidance comrnittee to fonnulate various o people, the govemment has appropriated money to establish the NT$7,000 million National Defense Industry Development Fund. The govemment is determined to pool all necessary man power and financia! and material resources to assure speedy attain ment of our goal.
The national defense industry development program and related undertakings have been so formulated as to make use of the skills of experts at home and abroad and to enlist the joint efforts of public and private enterprises in ordinance production and the development and manufacture of various weapons and equipment. Domestic production of important military goods and parts will be achieved in three years instead of the scheduled five so that many important spare parts will not need to be imported.
Eighteen jet fighters made at home and paid for out of the Self-Reliant National Salvation Fund will be shown to the people on the forthcoming Double Tenth National Day.
At the same time, we are sparing no effort to buy modem weapons abroad so as to maintain our naval and air superiority and provide the army with greater mobility and striking power. We have continuously given attention to strengthening of the civil defense organization and to preparations for mobilization. While respecting the principle of not affecting national economic development and their livelihood, people are organized in peacetime organizations to m:tintain local security and carry out related services; in wartime, they will make contributions from their various positions and support military operations. Air defense and mo bilization exercises are held periodically to ensure preparedness.
Our current military build-up is based on self-reliance and accelerated modemization. This will be accomplished through improved training, augmented motivation to raise morale, replacement of old weapons with new ones, and the strengthening of command channels. A five year plan has been formulated to improve the food, clothing and housing of officers and men in a series of steps. Priority is given to those stationed in less accessible areas. We intend to maintain the tangible and in tangible combat capability of the armed forces at peak level.
In strengthening offensive and defensive combat preparations, we have readjusted troop dis positions and stepped up reconnaissance and control in the Taiwan Straits and intensified preparations for mobilization to consolidate the defenses of Taiwan, Penghu, Kinmen and Matsu. Operations in the rear of the enemy are being developed in keeping with changes in the Chinese Communist situation and preparations made to deal him a heavy military blow at any time.
The govemment is obligated to help and care for retired officers and men who made their contributions to the country. In the period since my last report, employment, living, medical and schooling assistanee was continuously carried out in keeping with established formulas. Institutions and facilities for medical care and the living of retired officers and men wil1 be augmented and improved in keeping with the needs engendered by the aging process. Employment of retired military manpower has contributed significantly to the country and won intemational acclaim.
Seeking continuous economic stability and development
Our prospering economy is the mainstay of our great national strength and the people's well being. It is also the moving force in the maintenance of national stability and the furthering of national progress.
Our basic policy of past eco nomic construction has attached equal importance to economic prosperity and stability while promoting agricultural and in dustrial production and foreign trade. In augmenting social wealth we emphasize equitable distribution so that the fruíts of economic development can be shared by the people.
Our economic growth rate set an all-time record last year. Economic growth continued in the first quarter of this year despite the severance of diplomatic relations with the United States. Beginning with the second quarter, the prices of oil and industrial materials have been increasing drastically in the international market and posing a major problem for many countries. The government has given close attention to this development and has studied and taken countermeasures to assure the stable development of the national economy.
Now I should like to address myself to agricultural and industrial production, financial and tax measures, foreign trade and commodity prices in the period of the past half year.
To accelerate rural construction and promote agricultural development, the government has since 1977 appropriated NT$16,700 million to build public facilities in rural areas, improve the agricultural production structure, perfect the shipping and marketing system for farm products and improve farm life. Since July of this year, the government has allocated NT$10,400 million to carry out the "program for increasing farm income and strengthening rural construction" in a period of three years. This will continuously increase the income of fanners, augment rural welfare facilities and sustain agriculture growth so as to narrow the income gap between farmers and non-farmers and assure rural prosperity .
The price of government purchased rice has been raised twice. The price for a kilogram of Penglai or Tsailai rice was increased by NT$2.5 as compared with the previous year. Farmers had estimated additional income of NT$1,520 million for two harvests. Additionally, the government helped Farmers' Associations buy surplus rice from farmers at prices above the market level in order to stabilize the price. The government has decided not to levy land taxes following the second taxation period of this year.
The Executive Yuan recentIy amended the "Statute for Agricultural Development" and submitted it to you for approval. The key points of amendment include relaxation of restrictions on management in trust, assistance to the graduates of rural schools in engaging in agriculture and ecouragement of larger scale family farm management. These measures are intended to cope with existing agricultural düficulties.
In industry, exports lagged in the first six months of this year because of worldwide economic stagnation and reduced demand. To cope with foreign influences, maintain economic stability and help exporters over come difficulties and seek further development, the government has taken these policy measures:
- The Statute for Encouragement of Investment and the Statutes for Foreign and Overseas Chinese Investment have been revised to improve the investment climate and assure new opportunities. Eighty-six cases of foreign and overseas Chinese investment involving US$237.59 million were approved in the period from January through August this year, representing an increase of 11.64 per cent compared with the same period last year.
- Important investment plans include the fourth naphtha cracker plant with an annual capacity of 350,000 tons of ethylene and the heavy machinery manufacturing project to begin production within this year. The Taiwan Power Company has entered into a joint venture with a foreign company to establish a heavy machinery manufacturing plant to make large turbo- generators. The 13 550,000 kilowatt turbo-generators re quired by Taipower will be made domestically. The Executive Yuan has revised the "Program for Development of Machinery, Electronics and Electrical Machinery Industries" under which the Ministry of Economic Affairs will help these industries renovate facilities and introduce new technology.
- The "Program for Acceler ating the Development of the Motor Industry" has been formulated to encourage establish ment of larae automobile plants making more than 200,000 vehicles annually, mostIy for export. Establishment of plants to make automotive spare parts and the development of a fuel efficient, relatively non-polluting vehicle is being encouraged. The Ministry of Economic Affairs is responsible for setting up an ad hoc promotional committee.
- Capital shortages of small and medium enterprises have been alleviated with appropriation on July 1 of NT$5,000 million by the Central Bank of China as a revolving fund for loans to be made by the various banks. The money has been loaned and the situation is somewhat improved.
- In coping with the world wide energy crisis, the Executive Yuan has fonnulated the "energy policy for the Taiwan area" to effectively carry out energy exploration, supply, shipping, storage, use and conservation. The Ministry of Economic Affairs has set up an energy committee to carry out this policy. An "Energy Research and Development Fund" has been made available. The Executive Yuan approved in April of this year the "Measures for Saving Energy" which provide for conservation of electricity and oil as well as general provisions.
- Financial and tax measures include the "Rules Governing Stock and Monetary Enterprises" to establish a system of credit for stock certificates and loans on stock certificates, and the regulation of trust and investment companies to assure their sound management and the timely improvement of their operations. The tax system and administration involve the people's rights and benefits and can significantly affect our economic development. The government has implemented the "Program for Improving the Administrative Efficiency of Taxation Agencies and Customs" to simplify tax procedures and improve the discipline of tax officers. Many tax laws - including the Income Tax Law, and License Tax Law - have been amended to prevent evasion, restrain luxury and waste, save energy and encourage the merger of enterprises to promote economic development. Continuous research and renovation of the tax system and administration will be undertaken to provide a more just and reasonable tax system and an improved tax administration more convenient for the people.
In foreign trade, considerable growth was maintained from lanuary through August of this year. According to preliminary Customs statistics, two-way trade in this period amounted to US$19,629.6 million, a gain of US$4,613 million or 30.7 per cent compared with the same period last year. Exports amounted to US$10,234 million, an increase of 27.3 per cent, while imports were US$9,395 million, up 34.6 per cent. The favorable balance was US$838.6 million. Although the increase in the value of foreign trade is larger than the anticipated figure, this is principally because of price increases. The real growth is not so large.
Domestic commodity prices have shown large fluctuations stimulated by foreign factors sin ce the fourth quarter of last year. In the January-August period, the wholesale price index of the Taiwan area increased by 12.65 per cent compared with the same period of last year. The urban consumer price index increased by 8.4 per cent, higher than the expected figure. Because commodity price fluctuations di rectly affect economic stability and the people's livelihood, the government has adopted financial and monetary policies to raise interest rates, reduce the flow of currency and lower import taxes for the raw materials required in making daily necessities. Plans to purchase sorne important materials were carried out to ensure a safe level of stockpiles and to meet domestic demand. To prevent prices increases sternming from manipulation and maintain price stability, a periodic inspection of demand and supply of materials important to the people was carried out.
Promoting communication and public projects The overall completion of the Ten Major Construction Projects marks an important milestone in our march toward modernization. However, national construction has no limit. Current achieve ments have augmented our cour age and hardened our confidence in continued progress.
Among the Ten Projects, six are concerned with transportation. After completion of first-phase construction of the Sun Yat-sen Memorial Expressway and Tai chung Harbor, the first phase of Suao Harbor construction was completed at the end of last year and the port opened to shipping in lanuary of this year. The Chiang Kai~hek International Air port was opened February 26. The railway electmication project was completed at the end of lune and the whole line opened to traffic. The southern section of the North Link Railway was partially opened to traffic on February 7 and the whole line is scheduled for completion by the end of this year.
On the Twelve Construction Projects, five are related to transportation. Of these, the South Link Railway is being surveyed and blueprinted and the other projects are being vigorously promoted.
To improve transportation in Taipei City, the Executive Yuan has decided to place the railway tracks underground for a distance oí 2,870 meters from Linsen North Road to Kwangchow Street. The Ministry of Communications is organizing a preparatory en gineering office together with the Taiwan Provincial Government and the Taipei Municipal Govern ment for the priority promotion of this project.
In the construction of public projects, emphasis is given to needs of the people. Examples are flood control in the Taipei area and construction of the Feitsuiku Reservoir. Both plans have been approved by the Executive Yuan and construction is being planned by the Taiwan Provincial Government and Taipei Municipal Government, respectively.
Linking cultural education and scientific education
Some scholars and special agencies abroad have recently made research reports citing the rapid growth of our national strength. It is worthy of note that when the scholars of today assess a country's progress, they not only emphasize economic growth, but also take into consideration the country's scientüic, technological and cultural level; political stability; the gap between rich and poor; and the degree to which the fundamental needs of the people can be met. In these aspects, our country is regarded as being among those making the most rapid progress. This demonstrates the correctness and success of the govemment's policy of devoting itself to the development of culture, education, science and technology, of implementing con stitutional government and of promoting the people's well-being tbrough the years.
Now let us consider the highlights of this program.
A modern country must pro vide the people with a wholesome intellectual life as well as with materialism. Consequently, we attach importance to cultural development. We believe we should not only root cultural development in the soil of the national culture so as to demonstrate our national spirit, but also should carry the roots deep into the various strata of our society and into various areas so that the long standing, profound historical culture of the Chinese nation can acquire a final base and continue to develop. The Executive Yuan has fonnulated the "Plan for Strengthening Cultural, Educational and Recreational Activities." Included are the establishment of a cultural fund, promotion of various cultural activities, preservation and safeguarding of cultural assets and the cultivation of literary and artistic personnel. This plan is being carried out by the Ministry of Education in co-operation with the Ministry of the Interior and the Government Inforrnation Office.
Efforts to improve general education are based on the following points:
l. Promulgation and enforce ment of the Statute for National Compulsory Education and continued supervision of implementation of the Five-Year Plan for Developing and Improving Compulsory Education. In this period, 4,070 substandard classrooms have been rebullt, 200,000 desk and chair sets have been replaced and the illumination of 4,284 classrooms has been improved. An evaluation system for middle and primary schools has been established and a system for assisting evaluation at public junior high schools has been enforced. Forums on self-reliance and patriot ism have been held for middle school and primary school teacher, self-reliance activities have been carried out for public junior high school teachers during the summer vacation and small groups have been organized to inspect and supervise teaching at randomly selected schools.
2. Execution of the Plan for Improving Industrial Vocational Education. A committee on improvement of industrial vocational education has been organized by representatives of the agencies concemed to make comprehensive plans to cultivate teachers for industrial vocational education, provide on-the-job training for engineering teachers, improve the curricula, teaching materials and teaching methods, and coordinate technical and vocational education and vocational training. The committee has scheduled its work for a prescribed period.
3. Improvement of teacher education, formulation of a draft statute for teacher education and increased allowances for normal school students.
4. Improvement of the ex amination for students aspiring to pursue advanced studies abroad on government allowances, increase in the amount of allow ances, relaxation of exit formalities and strengthening of relations with overseas scholars and of as sistance to students studying abroad.
5. Strengthening of college education. The Taiwan Provincial College of Marine Science and Technology has been made a national college and the engineering college of Chiaotung University and the science college of Central University will be expanded into universities. The government will also subsidize private schools above the junior college level to increase their scientüic equipment, improve their faculties and reward teachers who make outstanding contributions so as to raise the standard of instruction.
Additionally, the government has decided to establish Sun Yat-sen University in southem Taiwan. The site will be Hsitzewan in Kaohsiung. Planning and construction blueprints are being expedited.
Our country is at the tuming point into a new era. The country will prosper or decline on a basis of whether we can increase our national defense strength in time, promote a higher level of industrializationl, develop our economic potential and improve the lives of the people. The acceleration of scientific and technological development and the elevation of the scientüic and technological level are essential in reaching these goals. The Executive Yuan carefully drew up the Plan for Scientific and Technological Development which was announced and implemented last May. The over all objective is to weld the strengths of government, private enterprises and the schools into one, and at the same time to stren¡then the national defense industry, promote economic development and advance the people's well-being. The spirit of the plan embraces:
- Creation of a favorable climate for scientific and technological development in which civilian academic and research institutes and industrial and agricultural enterprises will be guided in participation and the coordination of their activities. The contribu tions of experts and scholars abroad will be actively solicited so as to upgrade the scientific and technological education of our schools and promote the develop ment of various specialized studies.
- Although the term "science and technology" is defined largely in terms of applied science, attention also is given to fundamental science so that science and technology can strike roots strongly and deeply. The concept is to make scientüic and technological education the starting point, then to perfect cooperation between development and education. The goal is interrelationship and comprehensive development of academic research and scientific and technological progress in keeping with the needs of national de fense, the economy, medicine and public health.
Furthering the functions of democratic and constitutional government
In the last six months, the objectives of political development have been to further the functioning of democratic and constitutional government, to establish separate jurisdictions for prosecutors' offices and the courts of law and to augment the results of administrative renovation by rectifying political morality. These are the major measures:
1. In keeping with developments at home and abroad, the government decided to hold two National Development Seminars this year. The first from JuIy 6 to 22 was attended by 261 scholars from at home and abroad. The participants aired their views freely. This strengthened the un derstanding and confidence of scholars with regard to the current situation and at the same time promoted support of the government by intellectuals. The foundations of national solidarity were further consolidated. The second seminar this year will open November 4. The government's air is to give scholars, experts and social leaders the opportunity to counsel the country and exchange views. The pooling of their knowl edge is of great help in national development.
The Executive Yuan consulted with the Judicial Yuan on the placing of prosecutors' offices and courts of law under different jurisdictions of government and agreed on these three principles: (1) The high courts and various lower courts will be under the jurisdiction of the Judicial Yuan; (2) the Ministry of Justice under the jurisdiction of the Executive Yuan will continue its control over the prosecutors' offices, prisons and other administrative affairs; (3) after the separation, prosecutors will continue to have the status of judicial officials and will exercise their powers in ac oordance with law independently of the courts of law. In principle, this agrees with the key points of your interpellations. The Judicial Yuan and Executive Yuan are amending the applicable laws in accordance with these three principles, and the amendments will be successively submitted to your esteemed Yuan for deliberation.
3. Kaohsiung was made a special municipality under the jurisdiction of the Executive Yuan as of last July l. This involved a number of problems, but the change was effectively carried out through the untiring efforts of the related agencies over a period of more than half a year.
4. Rectification of political morality is essential in assuring honest and efficient government. This has been our goal for many years. The government is especial ly insistent that functionaries of police, judicial, tax and land agencies who have dose contacts with the people heighten their spirit of service and honesty. The government is carefully trying to control factors which may undermine morality. The Executive Yuan has forrnulated the Plan for Improving Judicial Affairs, the Plan for Improving Police Administration, the Program for Improving the Administrative Efficiency of Taxation Agencies and Customs and Measures for Im proving Land Administration. The competent agencies have been ordered to carry out these plans eamestly and to review the performance every six months so as to strengthen control and con tinue efforts of improvement. Ad ditionally, the government has drawn up the Plan for Rectifying Political Morality and Suppressing Corruption in an effort to prevent wrongdoing and dereliction of duty and to enhance the dignity and sense of honor among government employees by assuring the punishment of the erring and generous reward of the faithful and competent. The Executive Yuan and provincial and municipal governments have established "political morality supervisory boards" and charged them with the responsibility of planning, coordinating and supervising this program. Furtherrnore, "anti-corruption tribunes" have been set up in courts of various levels to handle cases involving political morality and scandalous conduct. The Investigation Bureau of the Ministry of Justice has established a Corruption and Economic Crime Control Center to handle major cases of corruption and economic crimes.
5. Recent and repeated large scale economic crimes have shocked the people and drawn the government's attention. The Corruption and Economic Crime Control Center of the Ministry of Justice has been ordered to carry out thorough investigations, immediately apprehend the wrong doers and bring them before the courts of law for severe punish ment, thus inhibiting any bad elements who may think of seizing the opportunity to make illegal profits. The center has been a deterrent to economic crime ever since its establishment.
6. The government has un ceasingly promoted administrative renovation. In the last year the emphasis has been placed on strengthening the delegation of responsibility, simplification of work procedures and consolida tion of the control and evaluation of administrative functions. Attention has been given the simplification of laws and statutes and administrative procedures and improvement of the functionary's spirit of service to the people. A thoroughgoing training program for government employees is underway to cultivate a correct outlook and incuIcate a new concept and approach to their duties. The government's approach to personnel administration includes the Plan for Smoothening Per sonnel Channels and Improving Personnel Affairs and Measures and the Plan for Matching Staff and Operations in Administrative Agencies. These plans are being enforced item by item to enhance administrative efficiency.
Time and again, the govern ment has emphasized that it is devoted to the fundamental policy of democratic government and respect for human rights. I wish to say further that in implement ing democratic and constitutional government, we seek an orderly and rational nation and society ruled by law. In all their activities, people and government must re spect the national interest and requirements of the rule of law. Our implementation of democratic government "opens the gate and travels the main road" in welcoming talented individuals to join in the work of national con struction. However, we cannot tolerate anyone who violates the law or discipline and undermines our solidarity. I should report to you that the government is drafting the Statute for Maintenance of Social Peace and Order to replace the old police offense statute and assure a peaceful and orderly society. As soon as the draft is ready, it will be submitted to your esteemed Yuan for consideration. Pending the enactment of this statute, the Ministry of the Interior announced on August 15 of this year Important Guidelines for Improved Handling of Police Offenses by Police Organizations of the Taiwan Area. The key points include: (1) Improvement of decision -making units, (2) careful implementation of apprehensions and interventions, (3) deliberation in the handling out of penalties and (4) augmented provisions for administrative redress. I am confident the handling of cases involving police offenses by police organizations will show improvement.
Seeking the people's well-being in social development
The government has pursued social development in keeping with Dr. Sun Yat-sen's Principle of Social Welfare. In doing so, we have sought in recent years to promote social welfare and improve the lives of the people by narrowing the income gap between rich and poor, fulfilling the livelihood requirements of the people and promoting social harmony. This is the government's fundamental policy.
We are convinced that a sound society is one in which all the people are well off and everyone is happy. Judging from the dis tribution of wealth, there are three categories of countries in the world. The highly developed countries fall into a category in which the people are rich but in which the distribution of wealth is inequitable and the gap between rich and poor is widened as the economy grows. The Communist countries belong to a category in which social wealth was violently redistributed and everyone is "poor and blank." Only the Republic of China, which follows the guidelines of the Three Principles of the People and builds on the foundation of Chinese culture, gives attention to both increased wealth and rational distribution of wealth during the course of modernization. Through the implementation of moderate and rational policies, the Republic of China has enabled the people as a whole to share in the enjoyment of social prosperity.
Foreign news reports have recently cited the achievements of our economic development. For example, the Organization for Economic Cooperation and Development has ranked the Republlc of China among the 10 "newly industrializing countries. International financial circles give highest rank to our credit reliability. The U.S. Overseas Development Council ranks the Republic of China among leading countries in providing a high quality of life. The Christian Science Monitor placed the Republic of China at the top of a list of tomorrow's big nations. This praise can be regarded as an overall internation al evaluation of the efforts of government and people during the last 30 years. Step by step, we have carried out the ideals en visaged in Dr. Sun Yat-sen's teachings.
In improving the lives of the people, the government has placed emphasis on the balanced development of materialism and intellectual values. In the last six months, we have promoted the people's well-being in these ways:
- Implementation of the plan for accelerated improvement of the livelihood of people living in remote and isolated areas. The plan was undertaken November 1,1978. By the end oflast June, overall improvements had been made in the supply of drinking water, household hygiene, construction of roads and the improvement of transportation and installation of electricity and telephone service in 55 remote areas of Taiwan and adjacent islands. In July, we began implementing the Four-Year Medical Care Plan in the villages in order to establish a sound health protection service providing medical care to the people.
- In enlarging the social wel fare program, the government has drawn up the Statute for the Welfare of the Aged, the Statute for the Welfare of the Disabled and Handicapped in addition to the Child Welfare Statute for deliberation by your esteemed Yuan. Recently it formulated the Statute for Social Relief and Assistance to extend assistance to those with low incomes. The draft of this law will soon be sent to your esteemed Yuan for deliberation. I urge your support in order to improve and enlarge our social welfare program.
- More effective use of land resources and public sharing of land benefits will be ensured by the government's Measures Governing the Renovation of Land Administration. Additionally, the government has drafted the Plan for the Multipurpose Use of Public Facilities to be enforced by the provincial and municipal governments under supervision of the Ministry of the Interior.
- In coordination with the six-year economic plan, the government has decided that provincial and municipal governments should construct housing units for the people. This program is lag ging slightly and remedial measures have recently been worked out. Simultaneous efforts will be made to revise the related laws, strengthen executive organizations, obtain more capital and provide the sites. This will enable us to accelerate the program and attaill our objective. At the same time, the government is studying measures to encourage private construction of housing that meets government standards.
- Elevation of the people's intellectual life is sought through implementation beginning last July 1 of the Measures for Im proving Social Morality. We hope that the provisions of these meas ures will suppress the corrupt and eroding practices of the pursuit of luxury, waste, eroticism, violence and gambling. The people will be encouraged to cultivate good character, exert themselves in moving ahead and choose lives of industry, simplicity, optimism, activism and freshness.
- The government has devoted itself to all aspects of affording opportunities and employment for the people. Every assistance has been given the people in fmding jobs. The Youth Assist ance Commission of the Executive Yuan has formulated the Plan for Strengthening Assistance to Youth and will use human resources to carve out or create careers for young people. The commission will help assure the employment of graduates of junior and senior high schools, vocational high schools, colleges and universities.
- Prevention of juvenile delinquency will be strengthened tbrough measures adopted last July to augment pre-job training for youth, provide employment assistance, control anesthetic and hallucinatory drugs, improve education in reformatories and establish a small group to coordinate preventive measures. The government seeks to curb juvenile delin quency tbrough both active and passive measures and to help young delinquents.
- Control of public hazards, protection of the people's health and improvement of the quality of life are sought in the Executive Yuan's proposal last April of Important Measures for the Environ mental Protection of the Taiwan Area. Included are strengthening of environmental protection organizations and system; improvement of air and water pollution and garbage disposal; and more effective implementation of measures for the control of noise and toxic materials. These measures also include special plans for con trolling public hazards in the Kaohsiung area. The Executive Yuan has instructed the Ministries of Economic Affairs and Communications and the National Health Administration to carry out these measures year by year in ac cordance with an order of priority so that total control of public hazards can be achieved and the environment effectively protected.
Unification of China based on the experience of Taíwan's development
Analysis of the Chinese mainland situation indicates that politically the factional power struggleis rising in tempo. The conflict between the two factions is expressed in the confrontation of ideological lines. This might be summed up as a dogfight between the "flag-raising faction" and the "flagpole cutting faction." The struggle is also expressed in the rivalry for posts of power marked by hostility between the new cadres and the veteran cadres. Economically, the Communists have found that their "10-year economic plan" and their slogan of "completing the four moderni zations at an early date" cannot be carried out. So they were compelled to make readjustments and postpone the deadline for the program. The wavering economic policy enlarges the scope of intraparty ideological struggle. In external strategy, the Chinese Communists established diplomatic relations with the United States and then thought to woo the United States, Japan and Western European countries into the formation of anti-Russian alliance. But the democratic countries, which are wary of both Soviet Russia and the Chinese Communist regime and obsessed with their own self-interest, have not shown any enthusiasm for Peiping's proposition. The Chinese Communist move has led only to the collaboration between Russia and Vietnam which threatens the Chinese Communists in a north south pincers.
In the last six months, the people on the Chinese mainland have expressed their aspirations in various ways. All of their hopes have one common note: to renounce the Communist regime, embrace free democracy and emulate the free world, especially the happy life of Taiwan. These developments reflect the across the-board negation of Chinese Communist tyrannical rule and Marxist-Leninist fallacies by the people of the mainland.
In the last 30 years, the goal of the government and people of the Republic of China has been to develop a political system and way of life characterized by democracy, role of law, progress, prosperity, peace and happiness. This has made the experience and achievements of the Republic of China and the implementation of the Three Principles of the People on Taiwan a blueprint for the reconstruction of the Chinese mainland after it is recovered. It also means that we can build a unified, rich and powerful new China of freedom. The unity of will and unified hearts of the govemment and people at home and abroad have enabled the Republic of China to record political, economic, cultural and social achievements. This approach to development fulfills the aspirations of the people at home, abroad and on the mainland, and has commanded the respect of the free world.
In recent years, sorne for eigners who are concemed with the China issue and sorne overseas Chinese and Chinese scholars have visited both sides of the Taiwan Straits. All of those of conscience have adrnitted that the stability, prosperity, progress and freedom of the Republic of China on Taiwan stand out in vivid contrast to the chaos, poverty, backward ness and lack of freedom on the Chinese mainland. These visitors have confmned the accomplishments made by following the Three Principles of the People on Taiwan. They are of the view that the solution of the China issue lies in the Republic of China. The call to "learo from Taiwan" is now often heard on the mainland. People there ask why the mainland "cannot catch up with Taiwan." The progress of the Republic of China has become a major threat and direct challenge to the Chinese Communist regime.
After the change in U.S.-ROC relations, the Chinese Communists launched a peace offensive using "unification" to confuse and deceive the people. All of us know that the "unification of China" is the common aspiration of the Chinese at home and abroad. But the China we wish to unify is a modem, progressive and democratic China, a China that can ensure alife of happiness for the people and truly represent the Chinese cultural tradition. A China so unified would provide for extension of the fruits of development on Taiwan to the mainland so that our compatriots there could enjoy the same de mocracy, freedom and happiness that we have.
Our compatriots at home and abroad have placed full confidence in the govemment and their hearts are filled with hope. As our compatriots on the mainland reach out for the free way of life envisaged in the Three Principles of the People, their expectations of us increase. The govemment therefore feels that while its re sponsibility is heavy, it is also exalted. In terms of time, we seek not only well-being today but also tomorrow. In terms of space, we seek the well-being of the Chinese mainland as well as of this bastion of national recovery. We must set our sights higher and broaden the horizon of our minds. We must work hard without rest and move for ward without pause. We must not only protect the fruits of 30 years of progress in Taiwan but also increase our political, economic, social, educational and cultural lead over the mainland. The mainland people then will be eager to accept unification under the guidance of the Three Principles of the People.
Our compatriots who enjoy lives of freedom and happiness at home and abroad must close ranks tightly, seize every promising op portunity and exert themselves to the full in every endeavor. All of us must contribute our wisdom and demonstrate our courage. Together, we must rally our will power and devote blood and sweat to enlarging the fruits of our national development. Every one of us must help fuel the shining torch with our confidence, bold spirit and patriotism so that it will give off light and heat to raise our morale, ílluminate every comer of the Chinese mainland and warm the hearts of our people there. This is our supreme goal. This is the glorious duty of every Chinese of this generation.