Taiwan Today

March 29, 1977

Youths of the nation:

We are commemorating today the heroic sacrifices of the 72 martyrs enshrined at Huang Hua Kang (Yellow Flower Mound). They gave their lives for the in­dependence of the nation and the freedom of the people. This is also a festival for Chinese youths, who must follow in the footsteps of our revolutionary martyrs and dedicate themselves to the coun­try. At a time when Communist internal strife on the mainland is increasing in violence and the prospects in our bastion of na­tional revival are bright, I believe youths should serve as the van­guard of the times and roll back the adverse tide. The observance of Youth Day therefore assumes an increasingly solemn and sacred significance.

All of the Huang Hua Kang martyrs were aged 20 to 30. They triggered the earthshaking Revolu­tion of 1911 with their pure and fervent patriotism. They acted valiantly in the spirit of "performing heroic deeds with the hearts of saints and sages." They were motivated by the high mind­edness that if they did not give up their lives, the world would never know happiness. For the sake of justice, they marched forward and never retreated. They sacrificed their brief lives for the country, thereby becoming part of the eternal life of the Chinese people. Six months after their sacrifice, the Wuchang Revolution erupted and was embraced by all the people of the country. Despotic rule was overthrown and the Republic of China established.

The blood of the revolutionary martyrs fueled a brilliant torch that has illumined the universe. This torch has also lighted the road along which youths of the country have been courageously marching.

The youths in this bastion of national recovery - Taiwan, Kin­men, Penghu and Matsu - have been leading lives of continuing happiness and stability in a pros­perous and steadily developing society. Whether they are studying in schools, working in society or serving in the armed forces, they are strong in their deter­mination, high in their spirit and great in their aspiration. They have loving homes and harmonious social relationships. This is be­cause all of you young people have learned from the Three Principles of the People and are able to concentrate on your studies and career. You have demon­strated your positive and progres­sive spirit. At a time when the world around us is confused and mainland conditions are chaotic, your vigorous self-reliance has become more conspicuous and your responsibility greater for ex­tinguishing evil and assuring the triumph of virtue.

The Chinese Communists have admitted that knowledge is the nemesis of totalitarianism and cul­ture is the deadly enemy of Com­munism. So they have negated knowledge, culture and morality. They want to paralyze all young people. They send group after group of youths to the country­side and deprive them of the opportunity and right to educa­tion. In fact, they have spared no effort to ravage the inspiration of youths, to strangle their in­telligence, to deprive them of freedom and besmirch their per­sonalities. In the last more than 20 years, the mushrooming of the original entangling contradictions of the Chinese Communist regime has given rise to endless struggle. The internal power struggle has recently become more violent and the oppression of youth has be­come more atrocious. But the conscience of humankind cannot be obliterated and the rationality of young people cannot be de­stroyed. The ugly countenance of Communism has been exposed and the youths of the mainland can no longer bear Chinese Com­munist tyranny. They have been opposing tyrannical rule directly and indirectly, actively and passively, tangibly and intangibly, openly and secretly, and through both words and actions. Their adventurous spirit is promising to kindle a prairie fire that will spread throughout the mainland.

Today, the youths in this bas­tion of national recovery have recorded many accomplishments in their studies and careers and have encouraged each other to become vanguards of national re­covery and reconstruction. The youths of the Chinese mainland have either resisted Communism locally or fled to freedom. They are strong enough to rise up on the mainland or link forces and encircle the Chinese Communists from without. Youths overseas also perceive the glory of Chinese culture and the greatness of the Chinese spirit. They despise the Peiping regime and strive for freedom and enlightenment. All Chi­nese sons and daughters have the courage, the determination and the desire to overthrow the Chi­nese Communist regime. This affords yet another opportunity for a great alliance of patriotic youths in preparation for the dawn of a great new era.

The future of youths and the nation is inseparable; the individual destinies of youths and the destiny of the nation are joined together. This is to say that youths should consider the success or failure and the glorification or humiliation of the nation as their own. The present great task of national construction requires youth as the main force; the sacred war of anti-Communism and national recovery must have youths as its vanguard. As the time grows late, we need a strong­er and more intrepid force to catch up. The closer the enemy comes to total collapse, the greater the need for positive actions to annihilate him. Each of you should therefore channel your knowledge, wisdom, skill and strength into the endless stream of national life and serve as a bulwark of history and culture. You should consider yourselves as pillars of national construction and vanguards of the anti-Com­munist struggle. You should raise your sights higher until they bear on the more than ten million square kilometers of national territory on which our people live. You should march forward shoulder to shoulder and hand to hand to recover this territory.

Dr. Sun Yat-sen , our national father, taught us: "To emulate the revolutionary martyrs en­shrined at Huang Hua Kang, who died for the salvation of the coun­try and the people, is to emulate their vaulting ambition and es­pecially their moral concepts of sacrifice and struggle for the salvation of the nation and the people. In short, we should start by learning - acquiring the varied knowledge with which to serve mankind." The late President Chiang Kai-shek also taught us: "Youth is a time of personality building and also the decisive period in the success or failure of one's career. Youths must cherish the ambitious goal of serving the people and saving the country through revolution." He clearly pointed out: "The times test the mettle of youth. In meeting the test, youth creates a new era." The present era is full of hope as well as of hidden crises. We must pass through the crucible of testing before we can see the bright rays of hope. We must prove ourselves able to overcome the difficulties before breaking through the encirclement of dangers. We must meet the world challenges of injustice, defeatism and degeneration. We must harbor an optimistic, progressive and creative ambition to serve the country and the people. We must unite with the youths of the nation and jointly create a new era of the Three Principles of the People in which there is no slavery, no totalitarianism and no poverty. As members of the Chinese race which inherits the past and paves the way for the future, each of you must:

- Cultivate profound knowl­edge: The basis of revolution lies in profound knowledge. Nowadays science has developed so rapidly that it not only can enhance human welfare but may also some­times produce changes in natural phenomena. Youths should de­velop their immense wisdom and knowledge so as to assure the boundless welfare of the nation and mankind. We must concen­trate on scientific research and technological development, work diligently, endure all hardships, accept the truth of the old saying that "knowledge has no limits," and exert the spirit of catching up with others. Only through profound knowledge can we take up the heavy burden of the times.

- Restore national morality: The traditional virtues of loyalty, filial piety, benevolence, love, faithfulness, righteousness, harmony and peace are the guiding principles of individual cultivation and conduct. These are also the moral norms on which national existence depends. Since youths are responsible for the rise or fall of our country, they must use the moral strength required to save the country and the people and employ their progressive and op­timistic spiritual power to enhance the people's morale and reverse the adverse social trend so that all members of society will come to be law-abiding and understand the significance of freedom. So it is that youths are incomparably important in the reassertion of national morality.

The valiant struggles of our Chinese youths have led to im­mortal accomplishments and added glorious pages to the history of the Republic of China. During the Revolution of 1911, the 72 martyrs enshrined at Huang Hua Kang established the brilliant era of national foundation; during the Eastward and Northward Expeditions, youths rallying around the instructors and cadets of the Whampoa Academy established the glorious era of national uni­fication; youths fighting the War of Resistance Against Japan established an unprecedented era of victory. I believe that the youths of today will provide the unremit­ting endeavors required to estab­lish the great era of national re­covery and reconstruction.

President Yen Chia-kan's address at memorial services marking the second anniversary of the passing of President Chiang Kai-shek

April 5, 1977

My Colleagues, Ladies and Gentle­men:

As of today, two years has elapsed since the passing of our great leader President Chiang Kai­-shek, an exemplary man of the 20th century who was loved wholeheartedly by all the people, military and civilian alike. Our pious respect for him and our intense memory of him are in­creasing with the passing of each day.

His career and his spirit wrote glorious and ineradicable pages in overcoming all difficulties and establishing the Republic of China. This career and this spirit also constitute the fountainhead of the Chinese people's strength in overcoming adversity and assuring na­tional dignity and self-reliance. His bequests to us included popu­lar and constitutionally based government and a broad highway that promises final victory in the struggle against Communism and assures the success of national recovery. The road that we traveled in the past, that we are traveling now and that we shall travel in the future was planned and illumined by the late President out of his superhuman wisdom, his benevolent heart dedicated to national salvation and his moral courage. This is also the road of national survival and develop­ment. The President has left this world forever. But all the people of the country are striving from dawn till dusk to carry out his last will and testament. They have one heart and one will in endeavoring to express their gratitude to him by fulfilling his aspira­tions and carrying out his plans.

In these last two years, we have tried hard to suppress our grief and translate our sorrow into strength. Spiritually inspired by the late President, we are of the deep conviction that we must act with one heart, like passengers on a boat sailing through stormy seas, and that each of us shares responsibility for the rise or fall of the country. Each of us must be responsible for implementing the late President's last testament and must make sacrifices for the country, thus expressing our re­spect for the great leader, our love for the country and our faith in the Three Principles of the People. We must be diligent and courageous; we shall never be frightened or distrait. We must demonstrate our spirit of solidari­ty by responding to each other's calls and demonstrate the vigor of our growth through ceaseless endeavor.

We are pursuing various na­tional construction projects in compliance with the late Presi­dent's instructions and in keeping with our established plans. Ex­ternally, we have adhered firmly to the policy of national independence and sovereignty by doing all in our power to integrate diplomacy and unite with interna­tional anti-Communist forces. In­ternally, we have welded human hearts together, solidified human will power, strengthened the rule of law and safeguarded human rights so as to reinforce the foun­dation of democratic government. Additionally, we have successfully devoted ourselves to advancing economic and communication construction, to augmenting na­tional defense, to promoting cul­ture and education, and to developing science. As a result of sustained economic growth and the promoting of social welfare, the living standard of the people is gradually rising and society is consistently prospering in our step-by-step consolidation of the foundation for a peaceful and happy society in which wealth will be distributed equitably. The late President told us: "National con­struction should be for the benefit of the country and the welfare of the people. "Our endeavors of today are rightly chosen to augment our national strength and improve the livelihood of our peo­ple. We are marching toward the goal of modernization with firm steps and are confident that this will console the reposing soul of our great leader.

We are powerfully united even as the Communists are falling apart. So an excellent prospect looms before us: We are strong and the enemy is weak; we are waxing and the enemy is waning. The Chinese Communist regime is intrinsically an entity of brute force and fraught with contradic­tions and conflicts. It maintains its tyrannical rule through inces­sant struggle. In the small so­-called leadership group, one is struggled against today and an­other will be struggled against tomorrow. This can be thought of as a bloody storm in which spirits cry out and demons howl. The Communists have gone to the extreme in oppressing the people, trampling on their rights and abusing them. The Chinese mainland of today is a shambles and the innocent people are the victims. Since the death of Mao Tse-tung, the intra-party power struggle has grown fiercer, the purge of the "gang of four" ini­tiated by Hua Kuo-feng is con­tinuing and anti-Hua activities are on the increase. The whole of the mainland is in a state of chaos that has been exacerbated by the fragmentation of military fief­doms. Hua Kuo-feng's position is in danger. The Chinese Com­munist regime is on the brink of collapse. President Chiang instructed us: "The recovery of the mainland is the primary objective of our sustained struggle." We can reach this goal. Our victory is near.

To assure our success, we rely on our adamant determination to achieve solidarity and our progressive achievements in construction. These are guarantees that justice will triumph over evil, freedom over slavery and the Three Principles of the People over Com­munism. Every Chinese at home or abroad, in front of or behind the enemy's lines, at the front or in the rear, must heed President Chiang's instruction: "We must regard the nation's rise or fall as our personal responsibility. We must have no concern for our own life or death. "We must contribute all our wisdom, loyalty and physical strength to the na­tion so that we can create new opportunities and summon new vigor to carry out the task of national recovery and consum­mate the late President's uncom­pleted mission.

How great and profound are the instructions of the late President! How strong and earnest were his expectations of the peo­ple! We must regard his revolu­tionary philosophy of life and his sense of responsibility to the nation as the guiding principles for our own conduct, for our own pursuits and for our onward struggle. President Chiang said: "Since I decided to make the Revolution my career, I have ascertained that creation, service, diligence, perseverance and the sense of responsibility constitute my revolutionary point of view. "He explained: "It is my conviction that one must dedicate his whole life to the revolution. "He also said: "The most important purpose of man is to enrich a dedicated life with beauty, truth and goodness and thus make life meaningful. I think the coordina­tion of this purposeful living and meaningful life reflects the totality of life. "When the late Presi­dent was young, he wrote a cou­plet to counsel and encourage his fellow countrymen. Later, he gave diaries to his colleagues each year and wrote this same couplet on the first page. It reads: "To live is to seek a better life for all mankind; the meaning of life lies in the creation of a life beyond life."

President Chiang said: "The aim of life is not to seek personal comfort. Rather, it is to promote the whole life of the people and even of all mankind and to im­prove the quality of life. This is the only way in which the people can survive and develop soundly. Only in this way can we fulfill the real purpose of life." He also said: "Besides material life, there is spiritual life, which is more important and noble. The essence of this spiritual life is the heart of life itself."

He told us: "Life is continuous and eternal. So long as the uni­verse exists, the light of human life will not be extinguished. We must therefore try to be creative and inventive and contribute our whole selves so as to make the values of life immortal." He also said: "Only when we sacrifice our own lives for the benefit of the life of the people as a whole can we carry on the glorious national history passed down by our ancestors of the last 5,000 years; only then will our posterity continue to glorify their history. Herein lies the real meaning of man's life."

I quote these passages of President Chiang's instructions, and read them together with you, in the hope that all of us can engage in self-reflection and be encour­aged to carry out these instructions earnestly. I am wholly con­vinced that the perception and implementation of these great instructions will enable us to cul­tivate the honest personality and selfless mind required as we carry on the courageous struggle and harden our faith in eventual vic­tory. Inspired by President Chiang's love and adhering to his example, each of us must be determined to become his spiritual successor and must inspire himself to take up the standard of the late President's unfinished tasks, thus fulfilling the aim of life and enriching life's meaning.

In his article "In Commemora­tion of the Centennial· of Dr. Sun Yat-sen," the President said: "In time of adversity or crisis, my thoughts of Dr. Sun Yat-sen's instructions have inspired and encouraged me to exert myself and make greater sacrifices. Conse­quently, I have never failed to carry out my tasks."

We have learned from the history of the last hundred years that the greater the difficulty and danger of the Revolution, the more courageous was our struggle and the more complete and out­ standing was our success. There are many difficulties to be overcome and many dangers to be surmounted on the road to na­tional recovery. Here today we are remembering the late President with the same emotions with which he recalled our late National Father. Like President Chiang, we feel encouraged when we think of the instructions we have been given. We must never forget his instructions. By invariably practicing what he taught us, we can carry out the great task of national recovery and reconstruction and console the soul of our great leader reposing in Heaven.

Premier Chiang Ching-kuo's oral presentation to the Legislative Yuan of the central government's general budget proposal for fiscal 1978

April 8, 1977

I am honored to be here today to present to you the administra­tive program and the budget pro­posal for the fiscal year of 1978.

The Executive Yuan submitted in January a written report on government policies for FY1978. It has also submitted the adminis­trative program for FY 1978 to­gether with the budget proposal for your information and approval.

The general budget for FY1978 was compiled on the basis of these policies and the administrative program. In the light of the current economic situation, we have continued to follow the guiding principles of recent years in preparing the general budget. These are:

- To maintain a balance be­tween revenue and expenditure.

- To carry out with thorough­ness the principle of planning for outgo only to the extent per­mitted by income.

- To ensure price stability. We must adhere firmly to the foregoing principles, because in pursuing economic development the demands made on our resources are very great but our resources are limited. The slightest indiscretion in resource allocation could lead to reinflation and ad­versely affect the livelihood of our people. There have been signs of economic recovery at home and abroad in the past year. Our own achievements are particularly noteworthy. We attained a high rate of economic growth and maintained a stable price level. During the year, our industrial output gained 17.11 per cent, agriculture 5.31 per cent, and services 7.29 per cent, which ac­ counted for the 11.8 per cent growth of the economy. In spite of this remarkable overall performance, however, business and industry are still experiencing a number of hardships due to the accumulated effects of economic recession and trade barriers. Much remains to be done, therefore, if private investment is to be stimulated. Under these circumstances, the government has ar­ranged to make up the shortfalls of private capital in the implementation of the Ten Major De­velopment Projects. The govern­ment has also been searching ways and means to encourage private investment and promote trade. According to experts, the eco­nomic situation this year should see some improvement over last year and the problem of energy should also gradually ease. In any event, the road before us is not a broad highway. We must make sure of each step, move forward on firm ground, make the best use of our resources, ensure economic stability and sustained growth. Indeed, a balanced budget is of the greatest importance to the maintenance of stability, because it strives to balance government expenditure with revenue. Moreover, if we adhere to the principle of planning for outgo only to the extent permitted by income we can curtail consumption, promote saving, and accumulate the capital needed for various projects and for the development of agriculture and industry in the best interest, both directly and indirectly, of our steady economic growth.

I now would like to make a brief review of the revenues and expenditures contained in the pro­posed general budget of the Government for FY1978.

First, compared with last year's budget, annual revenues and expenditures for FY1978 each amount to NT$131,424,434,738, up 18.5 per cent over FY1977 but below that year's increase of 23.9 per cent.

Second, in terms of the order of priority in the budgeting of annual expenditures, national de­fense and foreign affairs account for 48.3 per cent; economic de­velopment and communications, 22.9 per cent; social welfare, 12.2 per cent; education, science and culture, 6 per cent; general ad­ministrative activities, 4.5 per cent; and subsidies to the local governments, 3.6 per cent. This order of priority is generally the same as in FY1977.

With respect to national defense, both the percentage in total expenditure and the percentage of increase over last year are the largest among the various func­tional categories. This is an invest­ment in modernizing the equip­ment and strengthening the per­sonnel of our armed forces in order to ensure national security.

With respect to economic de­velopment, implementation of the Ten Major Projects continues to receive top priority. In FY1978, the Ten Major Projects will re­quire NT$42,551 million and their financing has generally been arranged. The amounts that must be provided through the Central and Provincial Government budg­ets have all been duly included after careful screening.

To join the ranks of the de­veloped nations, we must modern­ize our economic structure with the development of heavy and precision machinery industries. Elevation of the level of industrial technology calls for close cooperation between science and industry and active development of tech­nical manpower. For this reason, the FYl978 general budget has tentatively earmarked NT$200 million for development of the Hsinchu Science Industry Park. Further investment will be re­quired in the future. We have also markedly increased allocations for technological research and vocational training. All these under­ takings are designed for the at­tainment of our goal.

With respect to social welfare, public housing will be given special attention in FY1978. We plan to build 12,868 housing units, at a cost of NT$3,507 million, not including the 13,500 other units that the government will help the poor and "self-reliant households" to build. The Central and local governments are ex­pected to provide NT$1,600 mil­lion, with the remainder to be raised through bank borrowing.

The Central Government will provide a subsidy of NT$240 million to the Taiwan Provincial Government to help farmers re­pair their dwellings, improve the lives of people living in coastal areas and offshore islands, strengthen public health, and aug­ment the medical facilities in re­mote villages and provincial hos­pitals. In addition, NT$56 million has also been budgeted to continue the family planning pro­grams. These are all basic measures for the gradual expansion of social welfare.

With respect to science and education, continual improvement of education, particularly in the field of science, is essential to our progress. We have budgeted more than NT$3,400 million for the development of science and technology. As for education in general, while research and laboratory facilities at universities and colleges will be strengthened to improve the quality of higher education, secondary and voca­tional education will be upgraded to meet the needs of economic development. Improvements in vocational education will be large­ly paid for from the budgets of the local governments. Nevertheless, we have earmarked NT$400 million in the general budget of the Government in support of primary and junior middle school education. This represents an increase of NT$100 million over FY1977.

Third, improvement of salaries for government employees, includ­ing the military and school teach­ers, was given priority considera­tion in the budget for FY1978. The total amount budgeted by the government at all levels for this purpose is NT$11,766 million, of which the Central Govern­ment accounts for NT$6,661 million. Even if the one-month bonus in the amount of NT$1,858 mil­lion budgeted for FY1977 is not considered, the increase on the part of the Central Government still amounts to NT$4,802 mil­lion. Additionally, NT$1,800 million has been budgeted as a subsidy to the Provincial Government in support of its pay adjustment. Therefore, the actual amount budgeted for FY1978 pay increases runs to NT$6,602 million, or about 32.1 per cent of the Government's total budget in­ crease of NT$20,560 million. This is an indication of the govern­ment's concern for the livelihood of government personnel through­ out the country. The proposed adjustment is believed appropriate in consideration of budget con­straints and changes in wage and price levels. Indeed, salary im­provement for government per­sonnel is a longterm objective and the government will not cease its effort in that direction.

Fourth, compiling the annual revenue estimates, we have de­cided to discontinue the salt tax, which is not included in the FY1978 budget. This proposal and the necessary changes in legislation will be submitted to you separately for deliberation. All other tax revenues are estimated on the basis of current levies and rates, taking the eco­nomic situation into considera­tion. In the general budget, tax and monopoly revenues are set at NT$93,202 million, making up 70.9 per cent of annual revenues. This percentage is slightly smaller than the 72.8 per cent of FY1977. The rate of increase, which is 15.5 per cent, is also less than the aggregate rate of increase of the general budget. The factors con­tributing to this development are reduced tax rates for the sake of price stability and tax incentives granted for investment promotion. Nevertheless, direct tax collections relative to current revenues have increased slightly from 16.9 per cent in FY1977 to 17.2 per cent in FY1978. Non-tax revenues have also been budgeted after careful study. The general budget includes NT$4,800 million in construction bonds that the government plans to float and the accumulated surpluses of NT$­6,683 million from previous budg­ets. The total comes to NT$11,483 million, or 8.8 per cent of the total annual revenues. Al­though this percentage is slightly higher than the 8.5 per cent in FY1977 it is not inappropriate in consideration of the Government's capital outlays amounting to NT$37,161 million in FY1978.

The foregoing is an overall but brief account of the general budget of the Government.

Additionally, state-owned en­terprises make up a vital sector of the government in its efforts to foster economic development. They have an important role to play in the rendering of services to the public and promoting social well-being. Because, like the China Steel Corporation, the China Shipbuilding Corporation will also become a state-owned enterprise in July, the number of Government enterprises will be increased to 30 in FY1978. The revenue and expenditure estimates of these enterprises have also been submitted together with the gen­eral budget proposal for your con­sideration.

Operations of the state-owned enterprises during FY1978 will be coordinated with the Six-Year Economic Development Plan. The state-owned enterprises call for continued power development, accelerated oil exploration, develop­ment of heavy industries, in­ creased fertilizer supply, and greater efficiency in postal, tele­communications and banking serv­ices. The state-owned enterprises have budgeted NT$44,882 million for fixed capital investment. Together with the budgeted expendi­tures of the Government for economic development as already set forth, including the Ten Major Projects, this is a clear indication of the highest priority that the government has assigned to the promotion of economic develop­ment in the allocation of its re­sources.

My report has dealt with high­lights of the administrative program and the budget proposal of the Government for FY1978. The rules for budget enforcement, which has been submitted together with the general budget proposal, was revised in the best interest of more rigorous implementation of the budget. The Director-Gen­eral of Budgets, Accounts and Statistics and the Minister of Finance will report to you on the details of the proposed revisions as well as of the budgets.

To summarize, while major difficulties still lie in the year ahead, we are confident that they can be overcome. At this crucial stage of our anti-Communist strug­gle for national recovery, we should persevere and redouble our efforts, giving national interests our first consideration and making the public's interests our basic guide, so that we can accomplish our various policy objectives and fulfill our sacred task of mainland recovery at an early date. The general budget of the Government for FY1978 was formulated on the basis of these policies and goals. Your support, Mr. President, will be appreciated.