"We should sacrifice our individual enjoyment for the benefit of others," he said.
Addressing cadets and national leaders on the 52nd anniversary of the Chinese Military Academy, the Premier said Chinese people at home and abroad should not forget that the late President Chiang Kai-shek was the founder of the Whampoa Military Academy.
"The thoughts and spirit of President Chiang will always be with us," the Premier said.
"We should stand united and accomplish the unfinished task of the late President - the national mission of mainland recovery," he added.
The Premier told cadets the national revolutionary forces face three important tasks:
- Elimination of the Maoist regime and implementation of the Three Principles of the People to unite the Republic of China.
- Defense of Taiwan, Penghu, Kinmen and Matsu so as to safeguard the freedom and lives of the 16 million compatriots in the bastion of national reconstruction.
- Defeat of Communism to allow people all over the world to enjoy freedom.
The Premier said, "We shall eventually triumph, provided we have the strength, the thought, the perseverence and the determination."
Premier Chiang announced the establishment of the Chungcheng Cadet School.
He welcomed youths of the nation to enter the school and contribute to the National Revolution.
The celebration featured a military parade and review.
State enterprises should improve their public relations so people will understand their operations and functions, Premier Chiang said.
They make many contributions to national development but their operations are also the target of frequent criticism, he said.
Meeting with the heads of the 13 state enterprises, Premier Chiang instructed them to seek improvements in production and management.
Greater efficiency can be achieved by better management systems, and production costs can be cut by streamlining operations, he said.
The Premier was briefed on the development plans of state enterprises for the next six years.
He showed particular interest in the projections of the Chinese Petroleum Corporation, Taiwan Power Company and Taiwan Fertilizer Company.
Heads of these enterprises assured the Premier that despite increasing demand, there will be no problem of supply.
The presidents of Chinese Petroleum and Taipower noted that consumption of petroleum increased 30 per cent and that of industrial electricity 70 per cent in March and April compared with corresponding months last year.
Taiwan Fertilizer reported it had 500,000 metric tons of fertilizer in stock.
Heads of the state enterprises revealed that total reinvestment in fiscal 1977 will reach NT$42.5 billion, a 25 per cent increase over the 1976 fiscal year.
They said they have geared their production targets to the government's Six-Year Economic Development Plan, which got under way this year.
Top priority will go to nuclear and thermal power development, land and underseas petroleum exploration and exploitation, sugar and "fertilizer production, and non-ferrous metal industries.
Premier Chiang said the government is taking steps to raise the income of salt workers. Meeting with Magistrate Kao Yueh-jen of Tainan county, the Premier noted that income of salt workers is well below the national average. They are paid nothing if they are kept indoors by rain.
"I have instructed the Ministry of Finance to establish a minimum wage system for the protection of the salt workers," Premier Chiang told the magistrate.
Kao reported that the average wage of salt workers rose by only 69 per cent during the last seven years while Taiwan per capita income was climbing by 148 per cent.
The price index rose by 84 per cent in the same period. Income of salt workers is about 60 per cent of the national average, Kao said.
Magistrates and mayors work the year round without a break, Premier Chiang said, and this is not good for their health. He said they need holidays.
In a cabinet revision, Premier Chiang changed four of eight ministers and named a new mayor of Taipei. The changes were approved by President Yen Chia-kan.
This was the first major reorganization since Chiang Ching-kuo became premier four years ago.
Younger leaders and more Taiwan-born administrators were brought into the upper echelons of government.
Lin Yang-kang, 49, of Nantou county, was appointed mayor of Taipei. The former mayor, Chang Feng-hsu, became minister of the interior.
Lin, former Nantou magistrate and then com missioner of the Provincial Reconstruction Department, was said to have been picked for his distinguished administrative record.
Chang, 48, of Pingtung, who holds a master's degree from the University of New Mexico, is the youngest member of the cabinet.
The new finance minister, Walter Fei, 65, of Kiangsu, was secretary general of the Executive Yuan and before that vice chairman of the Council of International Economic Cooperation and Development.
His Executive Yuan post was taken over by Philip C.C. Chang, chairman of the Economic Planning Council. With a Ph.D. from Cornell University, Chang is an economist and engineer.
Lin Chin-sheng, 60, of Chiayi, was minister of the interior before he took over the communications ministry from Henry Kao.
A graduate of Tokyo Imperial University, Lin has held important posts in the ruling Kuomintang, including chairmanship of the Taipei City headquarters of the party.
Wang Tao-yuan, 62, of Anhuei, was a vice minister of justice before becoming minister of justice to succeed Wang Jen-yuan.
The vacant chairmanship of the Economic Planning Council went to Yang Chi a-lin , former vice minister of economic affairs and subsequently chairman of the Administrative Research and Evaluation Commission of the Executive Yuan.
Hsu Chin-teh, 68, of Hsinchu, former vice speaker of the Taiwan Provincial Assembly, and Chiu Chuang-huan, 52, of Changhua, chief of the social affairs department of the Central Committee of the Kuomintang, were appointed ministers without portfolio.
Outgoing Finance Minister K.T. Li, who had sought to resign because of poor health, and Henry Kao, outgoing minister of communications, were also named ministers without portfolio.
Adm. Soong Chang-chih, 60, of Liaoning, commander-in-chief of the Navy, became chief of the general staff, replacing Gen. Lai Ming-tang of the Air Force.
Soong was replaced by Adm. Tsou Chien, 66, of Fukien, who had been deputy commander-in-chief of the Navy.
Premier Chiang thanked cabinet members for their work during the last four years, which he described as a difficult period for the nation.
The cabinet reshuffle was necessary to meet current needs, the Premier said. Most former cabinet colleagues are still working in the government, he said, expressing hope they will continue to show a diligent and cooperative spirit.
Mistakes made in the last four years should be avoided by new holders of portfolios, the Premier said.
He said he has learned much from visits to basic administrative offices and his close contacts with the people.
Government officials should be open-minded and unselfish, the Premier said, urging correct leadership, resolute determination and thorough performance by administrators.
Lesotho and the Republic of China will cooperate closely in international affairs, they said in a joint communique at the conclusion of a visit by Dr. Leabua Jonathan, prime minister of the African country.
"The two governments are agreed that they will continue to cooperate closely with each other in the fields of international affairs in their efforts to promote mutual interests, to uphold freedom and democracy and to safeguard world peace and security," the communique said. It was signed by Chinese Foreign Minister Shen Chang-huan and his Lesotho counterpart, Charles D. Molapo.
The Chinese government will continue to export agricultural techniques to Lesotho and to encourage businessmen to invest there.
The text of the communique follows:
"At the invitation of the Government of the Republic of China, His Excellency Dr. Leabua Jonathan, Prime Minister of the Kingdom of Lesotho, accompanied by His Excellency Charles D. Molapo, Minister of Foreign Affairs, and other officials of the Kingdom of Lesotho, made an official visit to the Republic of China from May 31 to June 5, 1976.
"His Excellency Dr. Leabua Jonathan and his party were given a very warm and cordial welcome by the government and people of the Republic of China.
"During his visit, Prime Minister Jonathan had an audience with His Excellency Yen Chia-kan, President of the Republic of China, and in an extremely congenial atmosphere, exchanged views with His Excellency Premier Chiang Ching-kuo on the current international situation, particularly in respect of the situation in Asia and Africa as well as on matters relating to the traditional relations of friendship and cooperation between the two countries. At these discussions, His Excellency Shen Chang-huan, Minister of Foreign Affairs of the Republic of China, and His Excellency Charles D. Molapo, Minister of Foreign Affairs of the Kingdom of Lesotho, were also present.
"Prime Minister Jonathan and his party were deeply impressed by the remarkable achievements which the Government of the Republic of China has made in the social and economic fields, particularly in respect of the Ten National Construction Projects as well as by the unity of purpose, self-respect and self-reliance, and resilience in the face of difficulties and perseverance on matters of principle, which the people of the Republic of China, under the inspiration of the teachings of their late President Chiang Kai-shek, have evinced in their efforts to fight against Communism and to build up a free and democratic country.
"His Excellency Premier Chiang, on his part, expressed his admiration for the signal progress which the Kingdom of Lesotho, under the dynamic leadership of Prime Minister Jonathan, has registered during the past ten years in developing its economy, in elevating the standard of living of its people and in enhancing its international prestige.
"Both the Government of the Republic of China and the Government of the Kingdom of Lesotho were satisfied with the relations of cooperation now existing between the two nations. The Government of the Republic of China agrees that in the agricultural field, it will continue, within its means, to render service to the Government and people of the Kingdom of Lesotho and to encourage private Chinese businessmen to invest in the Kingdom of Lesotho.
"The two Governments are agreed that they will continue to cooperate closely with each other in the field of international affairs in their efforts to promote mutual interests, to uphold freedom and democracy and to safeguard world peace and security. "
President Ford said the United States has "excellent relations" with the government of the Republic of China.
President Ford made the statement in an interview with reporters.
The American chief executive denied that he plans to "sacrifice Taiwan" in the interest of "normalizing relations "with the Peiping regime.
President Ford said "normalization of relations" with Red China is a "long range program" and said "there has been no expediting of the process." ''There is no timetable set," he said.
Following is the text released by the White House:
"Question: Mr. President, last Friday out in California Governor Reagan said that your administration plans to, in the words he used, sacrifice Taiwan in the interest of a longer term relationship with mainland China and that your plans to do that are being concealed and won't go into effect until after the election. He gave as his basis for making that assessment a report he had from some journalists who were briefed by our embassy in Taiwan. Is there any basis in fact for that statement?
"The President: Our policy since 1972 has been predicated on the 'Shanghai communique.' It is a long range program for what is called 'normalization of relations.' There has been nothing secret about it. There has been no expediting of the process. There is no timetable set. In the meantime, we have excellent relations with the Government of the Republic of China.
"I read the statement by my opponent and there wasn't anything that he said in there that hasn't been on the public record for a long, long time - well, since 1972."
Secretary of State Henry Kissinger recently declared that the United States could not and would not abandon the Republic of China, the Central News Agency reported from Washington.
The secretary also said that the United States would not scrap its defense treaty with the Republic of China, CNA said.
Sources quoted Dr. Kissinger as saying that abandonment of Taiwan and abrogation of the mutual defense treaty would have undesirable consequences for Washington-Peiping relations.
The secretary was understood to have stated that any such acts on the part of the United States would reflect, in the eyes of Red China, on the American resolve to live up to its commitments in other parts of the world. It would shake Peiping's confidence in Washington and raise questions about the usefulness of the connection with the United States.
Secretary Kissinger also ruled out "recognition" of Red China, at least in the foreseeable future, during a confidential talk with a few media representatives. Kissinger said U.S. relations with Peiping are as good, if not better, than those of countries having full diplomatic relations with Peiping.
Kissinger was said to have asked the rhetorical question: "What would we gain if we recognized the People's Republic?" Kissinger said the United States has no present plans to change existing relations with Peiping and Taipei.
Kissinger said if he visits Peiping again, it will be "to coordinate our policies and not to recognize the People's Republic of China."
Neither side is in a great hurry to complete the "normalization process," he added.
Carl Albert, speaker of the U.S. House of Representatives, said that bonds between the Republic of China and the United States "will remain strong long into the future."
Albert made the statement in a letter to Lawrence Tao Hu, president, People-to-People, Republic of China.
The letter said:
"Thank you for your warm letter wishing the United States a happy bicentennial year. We here in America are really quite excited about our 200th birthday and I appreciate you sharing with me your kind thoughts on it.
"You have correctly noted the strong bonds between the Republic of China and the United States. You have my assurance that I personally shall strive to see that those bonds will remain strong long into the future."
U.S. Representative John M. Ashbrook (R-Ohio) voiced strong opposition to U.S. diplomatic recognition of Red China at the expense of the Republic of China.
In a report to his constituents Ashbrook said, "If the United States was to recognize Red China at the cost of derecognizing free China, it would be the Red Chinese who were determining American foreign policy in that part of the world."
Ashbrook described the Republic of China as a steadfast ally of the United States, and asked, "Is the Ford administration going to reward that small but brave country by making its continued free existence dependent on the Communist Chinese?"
He said the U.S. would be throwing the Republic of China overboard if it recognized Red China at the expense of free China. "The mutual defense treaty with the Republic of China on Taiwan would be null and void because the U.S. would no longer recognize the government on Taiwan," he said. Economically, Red China would have ~any ways to pressure Taiwan's economic partners to isolate Taiwan, he said.
American Veterans of Foreign Wars in the Pacific area called on the United States to continue to support the Republic of China and voiced its opposition to diplomatic recognition of Red China.
The veterans expressed their views in a resolution adopted at their 10th annual convention.
Text of the resolution said:
"Whereas, the Republic of China on Taiwan, our historic ally, is politically, economically, and militarily important to the United States of America in the West Pacific; and
"Whereas, particularly since its leader, Generalissimo Chiang Kai-shek, has passed on, creating in the minds of some that American support for the Government of the Republic of China may be withdrawn; and
''Whereas, in an apparent acquiescence to the ambitions of the People's Republic of (Communist) China, the U.S. military presence on Taiwan is being further reduced; now, therefore
"Be it resolved, by Department of Pacific Areas, Veterans of Foreign Wars of the United States, that we call upon the United States to continue fully to honor our 1954 treaty commitment to defend the Republic of China from attack; and
"Be it further resolved, that we continue to oppose the establishment of full diplomatic relations with the People's Republic of China as such relations would be detrimental to the security and economic status of the Republic of China; and
"Be it further resolved, that we urge extreme caution in all informal discussions and contacts with the People's Republic of (Communist) China; and
"Be it further resolved, that the United States continue military aid and other assistance to the Republic of China which will enable her to advance freedom, prosperity and peace to her people and the Far East."
More than 120 delegates from Guam, the Philippines, Okinawa, Japan, South Korea and Thailand attended the meeting in Taipei.
A Harvard University professor warned the United States against recognizing Red China at the expense of Taiwan, saying that such a move would be "contrary to America's real interests."
Dr. Robert R. Bowie of the Harvard Center for International Affairs made the warning in a commentary of the Christian Science Monitor.
The article said the price demanded by the Chinese Communists for full diplomatic relations has been U.S. severance of ties with Taiwan, abrogation of the 1954 security treaty with the ROC and withdrawal of all U.S. forces from Taiwan.
"In my view, paying the Communist price would be contrary to America's real interests," Dr. Bowie said. "Any benefits are doubtful and are heavily outweighed by the serious cost.
''What would the U.S. gain from capitulating on Taiwan? Replacing the U.S. and Red liaison offices with ambassadors will make no real difference. Would yielding on Taiwan issue make the Communists more cooperative on regional and global problems, as some suggest? Or would it ensure that Mao's successors will continue his Sino-U.S. policy? The answer is negative.
''The Communists chose to reopen relations with the U.S. despite the Taiwan issue, mainly because of fear of the Soviet Union and the desire to break out of its isolation and enter the U.N ... Even so, Communists still depict the U.S. as an imperialist threat, second only to the U.S.S.R. Certainly meeting its demands on Taiwan will not change its basic policy line. It acts now and will in the future on the basis of its leaders' judgment as to its interests - not out of gratitude."
The Chinese Petroleum Corporation has decided to tap a natural gas field off the Kaohsiung coast. Daily yield is estimated at 50 million cubic meters, or 10 times the total gas yield on land, in addition to 100 kiloliters of crude oil.
The field was discovered in an area being explored by two American oil companies - Conoco and Amoco - under contract. Two wells, F-l and F-3, confirmed the presence of rich gas deposits that will last for 20 years.
The American companies are interested in oil and have waived their share of the gas.
CPC said plans for tapping the deposits will be firmed up by the end of this year. Total investment will be US$1,800 million with an initial investment of US$600 million. One hundred and fifty wells will be drilled.
The gas will be used as fuel and as raw material for fertilizer and petrochemicals.
The find could save hundreds of millions of dollars annually in oil imports.
CPC said its initial finding of oil off the coast of Lukang in central Taiwan indicates the possibility that deposits in the Taiwan Straits may extend to Taiwan proper. Prospecting on land will be stepped up.
Officers of the Export-Import Bank of the United States have agreed to loan $26 million to the China-American Petrochemical Company Ltd. to help finance construction of a terephthalic acid plant.
The US$26 million would represent 40 per cent of the company's purchase of American equipment and services. Another US$26 million will come from private banking institutions not yet designated. Eximbank will guarantee half of the private loans.
Loans will be repaid over a period of eight years beginning September 12, 1979. The Eximbank loan will carry interest of 9 per cent.
The plant to be constructed by the China-American Petrochemical Company is expected to produce 150,000 tons of purified terephthalic acid annually.
Kaohsiung's new shipyard was formally turned over to the China Shipbuilding Corporation by the Ishi Kawajima-Harima Heavy Industries Company of Japan in a ceremony at the yard.
Wang Hsien-teng, board chairman of CSC, cited management personnel and workers for completing the job despite many difficulties.
Construction of the US$50 million shipyard was started in April, 1974, and completed six months ahead of schedule.
At 950 meters long, 92 meters wide and with an average depth of 14 meters, the dry dock is the second largest in the world.
Capacity is a ship of one million tons or two of 500,000 tons each. The yard can build 1.5 million tons of shipping and repair 2.5 million tons annually.
To cope with the changing situation in world shipbuilding, the management will diversify construction and stress repairs.
A supertanker of 445,000 tons is under construction and is expected to be delivered in October next year.
Chang Kwang-shih, vice minister of economic affairs, told the Legislative Yuan that Taiwan should be able to produce 75 per cent of ship parts within three years.
The China Steel Corporation plant at Kaohsiung will be making steel plates for ships by 1978.
A ship designing center has been established.
A plant to produce machinery and engines is planned.
Kaohsiung's Harbor Administration is planning to build an 80,000-ton bulk grain silo, Lee Lien-chih, director, said.
Construction of the third Kaohsiung silo will start in September. The two extant silos are of 40,000-ton capacity each.
Taiwan is importing 2.5 million metric tons of grains annually. This will rise to million metric tons by 1981.
Lee said a consortium of Japanese and U.S. enterprises will build the new silo and use it for a year. The Harbor Administration then will take over.
Construction will take two years.
Taiwan will be girdled with a rail system by 1982, the Taiwan Railway Administration reported. The length will be 900 kilometers.
One missing link is already under construction between Suao and Hualien in eastern Taiwan. The Kaohsiung-Taitung line is in the planning stage. A route of 84 kilometers has been chosen and the project will be included in the Six-Year Economic Development Plan that began this year.
The Suao-Hualien line will be completed in 1979, somewhat behind schedule as a result of geological problems and difficulties with Big John excavators.
There are 18 tunnels totaling 30 kilometers. Six tunnels totaling 2.3 kilometers have been completed.
Conventional methods must be used because of the terrain. Some machinery will be imported from Japan.
Dr. Y.K. Mao, chief of the rural economics division of the Joint Commission on Rural Reconstruction, said rural development will emphasize:
- More incentive for increased farm production.
- Modernization.
- Encouragement of rural business and community activities.
"Since the late 1960s," he said, "rapid industrial growth has left agriculture behind. The growth rate of agricultural production has slowed down. Farmers' income is relatively low."
Government funds have been made available for the improvement of the rural infrastructure, farm mechanization, resource developments and agricultural marketing.
"Our aim is to raise farm productivity and income," Dr. Mao said.
Taiwan will produce more than enough food for its own needs in the next few years if the agricultural growth rate is maintained at 2.6 per cent a year, an official of the Joint Commission on Rural Reconstruction said. More agricultural and processed agricultural products can be exported.
By 1981, Taiwan will be a leading supply center for high quality vegetables and fishery products, he predicted.
Per capita calorie intake has reached 2,700 and protein consumption 74 grams. The 1981 figures will be 2,750 calories and 78 grams of protein.
Average per capita consumption of food in 1981 will include:
- Rice: 125 kilograms.
- Fruit: 58 kilograms.
- Wheat flour: 30 kilograms.
- Pork: 30 kilograms.
- Fish: 44 kilograms.
- Fat and oil: More than 9 kilograms.
- Eggs: 5.5 kilograms.
Taiwan will export 500,000 metric tons of sugar in 1981. Exports of bananas, tea, canned mushrooms, canned pineapples, silk, frozen pork and fishery products will be above present levels.
Taisugar has announced its production plans for fiscal 1977.
In sugar production, stress will be placed on increasing unit yields and reducing losses. New equipment will be introduced, automation promoted and storage and transportation improved.
In cane cultivation, priority will be given selection of strains, provision of tools, drilling of wells and economical use of fertilizer.
In management, use will be made of computers, market research spurred and a trade information network set up.
In livestock, a Taisugar sideline, hog and beef cattle breeding will be improved by selective mating and hybridization, diversification of the sources of feed and prevention of disease.
Citibank of New York and other members of its banking syndicate have agreed to provide US$86 million in loans to China Airlines to buy a Boeing 747SP, 747 and three Boeing 737s.
An agreement covering the first portion of the loan (US$36,510,000) was signed by Bruce M. Brenn, vice president of the American bank, and Cliff Louie, chairman of CAL. Finance Minister Walter H. Fei signed on behalf of the government, which is the guarantor.
Other syndicate members are Chemical Bank, Chase Asia, the First National Bank of Dallas and Marine Midland Bank.
The second portion of the loan (US$49,490,000) will be jointly provided by the U.S. Export-Import Bank and Citibank and syndicate members.
Economic Affairs Minister Y.S. Sun urged Chinese engineers to contribute to the raising of productivity. He addressed the annual convention of the Institute of Chinese Engineers in Taipei.
He outlined objectives of the Six-Year Economic Development Plan that got under way this year as:
- Farm mechanization.
- Encouragement of private investment in productive enterprises and infrastructure.
- Industrial research and development.
- Opening up of new energy sources.
- Development of trade.
- Completion of transportation network.
- Spurring of science and technology.
- Housing and water supply projects.
- Construction of urban centers.
He told some 300 engineers that they could best contribute to these objectives by raising overall productivity through more effective use of manpower, capital and natural resources.
Engineers shouldn't neglect the importance of business administration, said Sun, who was chief engineer of the Taiwan Power Company.