Youths of the nation!
We commemorate today the beginning of the success of our Founding Father, Dr. Sun Yat-sen, in establishing the Republic of China, as well as the martyrdom of the 72 young revolutionaries enshrined at Huang Hua Kang (Yellow Flower Mound). This is a day on which our young people may be expected to inspire each other to emulate the spirit and great achievements of our revolutionary forefathers in preserving the history and culture of our people.
All of us are aware that no people in the world can destroy their own history and culture, and then go to any lengths to insult, vilify and refute the moral exploits and righteous conduct of their forefathers and still hope to survive unashamed in this world. The Chinese Communists' campaign of "criticizing Confucius and praising Ch'in Shih-huang" (the First Emperor of Ch'in) and their movement of "going against the tide" are direct challenges to the basic Chinese ethical distinction between right and wrong, good and evil, loyalty and treason, and integrity and depravity. In fact, the challenge is to the whole history and culture of the Chinese people and to the conscience and moral sense of mankind.
Such essentials of Confucian philosophy as benevolence, propriety, filial and fraternal affection, loyalty and mutual consideration, universal love and harmony - in short, the whole succession of personal cultivation, family discipline, orderly government and world peace -are not the teachings of one person or one school of philosophy. These essentials represent the crystalization of the long process of Chinese culture and history as brought to magnificent fruition by Confucius.
These essentials are not only vital to the Chinese people but also provide basic guidelines for the continued existence of the whole human community and express the norms of human relationships. By unabashedly identifying himself with the tyranny of Ch'in, making an enemy of Confucius and shamelessly "going against the tide," Mao Tse-tung is criminally attempting to destroy our country and people by annihilating our history and culture.
Youths of the nation! We have learned from history that when the Spring and Autumn Annals were given us by Confucius, the traitors and usurpers of the time were afraid. Mao Tse-tung, the self-adopted off spring of Marx, Engels, Lenin and Stalin, has acted despotically and tyrannically, contrary in every way to the Confucian philosophy of benevolence and propriety.
Mao is obviously afraid to face the Chinese culture embodied in Confucianism and has admitted that he is a hundred times worse than Ch'in Shih-huang. So it is not surprising that he should insanely attack the paragon of Chinese culture. He has assailed me because I have honored Confucius and opposed Communism all my life. Mao is attempting to destroy the leading force of our National Revolution on which our anti-Communist morale depends.
The main currents of Chinese history and especially the aspirations found in the hearts of our compatriots on the mainland indicate that:
- They are, on one hand, positively demanding freedom and democracy for all people by restoring the rule of virtue and benevolence and, on the other hand, endeavoring to extricate themselves from the terror growing out of recurrent, unending struggle, repression and enslavement.
- They are vigorously seeking to revive our national ethics and culture. Meanwhile, they are trying to prevent the aberration and violation of our moral principles and the disruption and destruction of our historical and cultural continuum.
These currents are spreading into the ideological domain of the Communist party, army and the bogus regime. Surging ever higher, these currents have be come an overwhelming force in the struggle against Maoism and Communism. The Chinese Communists have been compelled to complain: "Lack of struggle will lead to regression, revisionism and collapse." As a result, they are instigating and manipulating the "Red Guards" and the "Little Red Generals" to go against the tide, and they will continue to do so ten and twenty times more. But how can the Communists resist a mighty current of the human heart and human nature?
The traitorous Communists have said: "It is a great joy indeed, when our repression by burning the books and burying the Confucian scholars has the effect of intimidation." Mao Tse-tung even said complacently: "Ch'in Shih huang's way (of burning books and burying Confucian scholars) has turned out well." He does not know that Confucian scholars are to be found everywhere in the world and that while he can bury the scholars of the mainland, he cannot bury those who are else where. Mao Tse-tung may burn the books on the mainland and deceive 700 million people with his "Little Red Book" of quotations, but how can he burn all the books in the world?
Mao Tse-tung may succeed in "beheading all who dare to whisper" and in "killing the whole clan of anyone who criticizes the present by referring to the past," but how can he prevent the successive rise of more such erstwhile comrades as Liu Shao-chi, Lin Piao and Chen Po-ta?
Mao thinks he has the right to deprive the 700 million people of the mainland of their lives, their property and their freedom. He regards human history, culture, philosophy, literature and art as the targets of his rebellion. But can Mao and his handful of followers really rebel against 5,000 year-old Chinese culture and against the National Revolution based on San Min Chu I (Dr. Sun Yat-sen's Three Principles of the People)? This National Revolution has become a mainstream and is consistent with world currents and the needs of the people.
Many young people and intellectuals on the mainland are courageous and heroic. They eventually will turn their spearhead from Mao's pretended target of anti-feudalism and aim it against
Maoist enslavement. They will also wake from the nightmare of Mao's class struggle and turn against the Maoists to attain freedom of thought.
Young people and intellectuals abroad will come to recognize the Maoist deception involved in "identification" and "return." They will never identify them selves with the handful of Communists who are endeavoring to uproot the history and culture of the people and who are turning against their own country and people by defiling the moral achievements and the loyal and faithful deeds of their forefathers. They will never return to a motherland which is controlled by a few Communists who are burning books, burying Confucian scholars, killing the whole clans of those who have criticized the present by referring to the past and be heading the whisperers. Instead, they will firm up their determination to struggle against the Communists and to awaken the people of the world who are still confused by the Communists.
Young people of this bastion of freedom are competing for the opportunity to participate in the basic construction of the country. They are taking the lead in joining the ranks of the National Revolution. In so doing, they are displaying their vigor and their love of the country.
Additionally, they are pledging with one heart to provide moral and physical support to all of the courageous and benevolent patriots who are making sacrifices on the mainland and abroad.
Youths of the nation! The campaign to criticize Confucius and praise Ch'in and the movement to oppose Confucian scholars and go against the tide constitute another round of the frenzied Maoist persecution of intellectuals and young people on the mainland. The persecuted are cruelly confronted with the terror of ideological vacuum and the tragedy of being cut off from the history of our people.
They are confronted by catastrophic change in a society which is no longer human or civilized because moral principle has been removed from human relationships. We may say that we have never faced tragedy of greater magnitude and urgency, and that the responsibility of the National Revolution has therefore reached its point of greatest urgency, for if we do not take action in this critical moment, our 5,000-year-old history and culture will be destroyed and the lives of our 700 million compatriots on the mainland will be plunged into the abyss and remain there forever.
In terms of time, this critical moment represents the whole of our history. In terms of magnitude, the lives of all our 700 million people are at stake. The human heart and human nature are immutable. The history and culture of the Chinese people are resilient, splendid and perennially self-renewing. So long as we are able to insist on discharging responsibility for our National Revolution and develop a centripetal force of benevolence, loyalty and mutual consideration, of freedom and happiness, of sustained progress and prosperity to counter the centrifugal force of struggle, persecution, totalitarianism, slavery, confusion and ignorance represented by the Chinese Communists, to terminate the tyranny of the traitorous Communists and eradicate the wickedness and crimes of the Maoists, we shall be able to crown the careers of our revolutionary martyrs and to de fend and refurbish the glorious history and culture of our people. This is also the only way to con sole the sleeping souls of our Founding Father and the revolutionary martyrs enshrined on Huang Hua Kang.
President Chiang Kai-shek's message to the WACL conference
April 8, 1974
The 7th World Anti-Communist League conference has been solemnly opened in Washington today under the banner of a cogent theme: "Peace is ... freedom and justice for all" The profound meaning of this theme will be clear to large numbers of people who are bewildered by the world of today. Out of my great expectations, I wish to take this opportunity to extend to you my sincere congratulations and expressions of respect on behalf of the Government of the Republic of China and all Chinese who are courageously struggling for freedom.
Since its establishment, the World Anti-Communist League has pursued the goal of peace based on freedom and justice. This is identical with our own goal and one which has been sought for generation after generation. To reach this objective we have united in the struggle against Communism and for the cause of freedom. History has taught us these simple truths and we believe in them implicitly:
First, "There will be no peace without freedom." History proves that peace can never be built on a foundation of slavery, because all forms of slavery are antagonistic to mankind's desire for free dom. Any system of slavery is dedicated to the suppression of man's desire for freedom and adamantly tries to make war the motivating force of history.
Second, "There will be no peace without justice." History proves that peace can never be built on a foundation of appeasement. Retreat from the principle of justice is tantamount to negating the value of human conscience and repudiating all universally accepted truths. This amounts to an outrageous betrayal of enslaved peoples' hope for a free life and abets aggression and despotism. As an ancient Chinese saying has it: "Appeasement fosters treachery and treason."
Third, "There will be no peace without security." History proves that peace can never be built on a foundation of fear. Security is indivisible. Power politics and Machiavellian diplomacy will eventually betray and destroy the international sense of security. This will shake the confidence of individual countries in the collective defense of freedom. Afraid and insecure, irresolute countries will resort to pragmatism and opportunism. This will pave the way for aggressive war.
Fourth, "There will be no peace without strength." History proves that peace can never be built on a foundation of cowardice. Aggressors always emphasize the importance of brute force. The Communists are especially adept at making negotiation their shield of protection and brute force their spearhead of attack. Consequently, peace cannot be gained by talking to the Communists and war can be prevented only through strength superior to that of the aggressors.
Fifth, "There will be no peace without good intentions." History proves that peace can never be built on a foundation of hostility. Peaceful coexistence between differing political ideologies and systems hinges on mutual respect and good intentions. If one side remains insistently hostile and attempts to bury the other side, peace will become a means to destroy the antagonist. So-called negotiation will then become a trap laid by the evildoers in which to bury those on the other side. or woe of our future. The bitter lessons we have learned in the past and the key question involved in world peace or war is how to break through the tragic status quo in Asia and the Pacific. The crux of the answer is to be found in the immediate liberation of the 700 million people on the Chinese mainland from the Communist yoke. Once set free, these 700 million people will be transformed.
Developments since World War II show that the wicked and vicious Communist ideology and system constitute the only serious obstacle in mankind's pursuit of peace. Determined opposition to Communism is the only road leading to a peace of freedom and justice. We are standing at a crossroads of history. Our choice of direction will decide the weal from a liability into an asset of peace. Unless these 700 million Chinese are returned to the side of freedom, there will be no security for Asia and no peace for the world. To sustain the hope of our compatriots striving for freedom, we have hardened our resolve and are courageously pre pared to face any temporary difficulty or adversity. We shall never waver in our struggle against Communism and for national recovery, and shall never lose confidence in victory. We know that if China is saved, so it will be with Asia and the world.
The Communists can rule the world only if their endeavors to remold human nature have emerged successful from the crucible of test. In order to dominate China, they would have to over come the strength of 5,000 years of Chinese cultural tradition erected on the firm foundation of human nature. The frenzied Maoist campaign against Confucius clearly demonstrates that the Communists have met with fiasco in their attempt to destroy the Chinese cultural tradition. The movement reveals that the Communists are desperately afraid of the irresistability of Confucius the great sage who symbolized the Chinese spirit - and that they have been compelled to engage in a last-ditch, suicidal effort to wipe out the conscience of the whole Chinese people. In exposing their non-Chinese and anti-Chinese character, the Chinese Communists are spurring the Chinese people to abandon them and expediting the day of victory in the freedom struggle of the Chinese people.
Each past congress of the World Anti-Communist League has chalked up a durable record of accomplishment. These achievements constitute a spiritual sign-post of our epoch, and point out the direction of history. Together, all of us are making sacrifices in the momentous struggle for human freedom. All of us are equally aware that the road to real peace is not smooth and the way is not easy. The journey will call for immense moral courage.
We must be prepared to pay a high price during the course of the struggle. It is said that "Friends are everywhere and no place is far away." Although you are meeting on another coast far from the Pacific, the vast expanse of water and land cannot separate us because we share the same ideals and confidence and because we meet in spirit and in heart. From this coast of the Pacific, I wish every success to the congress and the World Anti-Communist League.
Premier Chiang's report on the fiscal 1975 budget
Following is Premier Chiang Ching-kuo's report on the Government's general budget bill to the 10th meeting of the 53rd session of the Legislative Yuan April 9, 1974:
Mr. Chairman, members of the Legislative Yuan:
This is my second report to the 53rd Session of your esteemed Yuan. I previously reported on administrative activities in the first half of the present fiscal year and administrative policies for the next fiscal year beginning July 1. Today's report, which is required by law, will be on the general budget proposal of the National Government and the special budget proposal for the foodstuff equalization fund. This report is concerned with administrative programs and estimates of annual revenues and expenditures. The two reports are submitted at different times but are correlated. Budget estimates are based on administrative policies and pro grams. Government administration is continuous and coherent. A review of past administrative merits and demerits will serve as the best criterion for the improvement of administration in the future. My previous report emphasized the basic objectives of the Government's administration; this report covers the substance of activities aimed at reaching these objectives.
The administrative objectives of the Executive Yuan for the next fiscal year were included in the written report submitted to your esteemed Yuan. In the oral report, I pointed out that in the light of the changing international situation and domestic difficulties, the creation of a favorable objective situation must depend on the growth of our strength. National strength must be based on accelerated national construction and economic development. We are consistently optimistic about our administrative policies. We have tried hard to carry out re forms and assure progress. Our national construction has been making rapid progress. We are determined not to relax until we have attained our final goals. We have the courage and fortitude to do this.
Based on our objectives, our administrative plans for the fiscal year from July, 1974, through June, 1975, will stress:
- Overall political renovation and strong measures to achieve total diplomacy.
- Stability and steady growth of economic development.
- Expedited modernization of the armed forces while sustaining the growth of national defense -strength.
- Reasonable distribution of wealth and the renovation and progress of culture, education and science.
- Additional subsidies to provincial and city governments and consolidation of construction at the basic level.
- Increased pay for government employees and educational personnel, and improved administrative efficiency.
Additional revenues must be obtained within the limitations of our national resources in order to meet these administrative requirements. During the last year, our country received its worst economic buffeting as a consequence of worldwide inflation, the shortage of materials and the energy crisis. However, in keeping with our President's urging that we be firm with dignity and self reliant with vigor, we have never desisted in our endeavors, have defeated the evil intrigues of the Chinese Communists to isolate us and have received support from many quarters. Economically, we overcame our difficulties and attained a growth rate of 12.3 per cent last year. We expanded our foreign trade to a point where customs statistics showed growth of 50 per cent for exports and 51 per cent for imports. We can therefore say that the economy prospered last year. This is to be credited to the hard work of all the people of our country.
We have reached the preliminary objectives of the Economic Stabilization Program promulgated January 27. The prospects for the rest of this year and next year indicate that we may still face many difficulties. The energy crisis could be moderated by attainment of peace in the Middle East. This would be a turning point for the world economy. However, the powerful tides generated by worldwide inflation and the effects of increased commodity prices cannot be expected to diminish in the near future. We must increase our exertions to maintain economic stability. In our planning for the future against the background of the past, we shall adhere to the principle of continued growth; the economy cannot be permitted to deteriorate.
Maintenance of economic growth will require our concerted effort. In order to prevent hurtful inflation and assure efficient use of resources, we shall:
- Increase public and private investment.
- Avoid waste, conserve energy and encourage savings.
- Improve the investment climate and encourage foreign and overseas Chinese investments.
- Raise the level of our technology, increase agricultural and industrial production, and stock pile essential raw materials and commodities.
- Expedite modernization of agricultural management and improve agricultural marketing.
- Improve the market function so as to shorten the gap between production and consumption.
- Ease monetary controls to provide necessary credit on a selective basis.
- Continue the expansion of foreign trade.
The first three items are concerned with the increase of in vestment. I have emphasized investment because the insufficient infrastructure investment of the past has led to ubiquitous bottlenecks in the present stage of economic development. If we do not quickly break through these difficulties, our economy will stagnate. Of course, public and private investments must not ignore the requirements of economic stabilization. This is especially true of public investment, which can be increased only with in the limits of fiscal capability.
National revenue and expenditure estimates for the fiscal year 1975 are based on an expectation of economic growth of from 7 to 9 per cent. All estimates are derived from review of budgetary performance in the current fiscal year and should be practical. Fiscal 1973 showed a surplus of more than NT$8.7 billion. Judging from performance in the first nine months, the budget for fiscal 1974 is satisfactory. The public bond issue of NT$2.8 billion included in the budget will not be needed. The fiscal 1975 budget was pre pared after careful review of these past budgetary performances.
Public revenues and expenditures are balanced to accord with the principle of spending within the bounds of revenue. The balancing of government revenues and expenditures is the fundamental requirement of a stable economy. The present budgetary proposals adhere to this principle. The fiscal 1975 budget proposals of the central, provincial and local governments call for revenues of NT$111,185 million and net expenditures of NT$111,500 million, not including duplicated revenues and expenditures resulting from support and Subsidy programs. The budget is NT$315 million short of balance mainly because the budgets of city and hsien (county) governments, including those of villages and townships under their jurisdiction, are preliminary estimates which will require further review and adjustment in order to provide a balancing of revenues and expenditures in the final budget proposals to be submitted before the end of April. Net expenditures Show an increase of NT$30,356 million, up 37.4 per cent from the net expenditures of NT$81,144 million in fiscal 1974. The rate of increase is higher than the average of 14.3 per cent for the last five years. But the NT$111,500 million total makes up only 21 .7 per cent of the expected gross national product of NT$ 513,847 million for fiscal 1975. This percentage is down from the five-year average of 22.7 per cent, indicating a satisfactory supply and demand situation with respect to overall natural resources.
I shall now submit a summary of the general budget proposals of the National Government for fiscal 1975:
First, revenues and expenditures are in balance at NT$76,251 million, an increase of 41 per cent over fiscal 1974. In the light of the concept of balanced current revenues and expenditures, this may be analyzed as follows:
1. Current revenues of NT$71,291 million and expenditures of NT$57,799 million for a saving of NT$13,492 million.
2. Capital revenue of NT$4,959 million and expenditure of NT$18,451 million for a deficit of NT$13,492 million.
3. The favorable balance of current revenues and expenditures thus offsets the deficit of capital revenues and expenditures. Al though a public bond issue of NT$3,500 million is to be floated during fiscal 1975, the budget is sound.
Second, let us analyze major annual expenditures and priority allocations. I have mentioned highlights of the Government's administrative program. Expenditures for national defense and foreign affairs take the biggest share of total substantial expenditure in the budget at 46.1 per cent. Then come economic construction and communications at 13.1 per cent; social welfare, 11.9 per cent; increased pay to government employees, servicemen and teachers, 8.8 per cent; subsidies to provincial and city governments, 6.2 per cent; education, science and culture, 5.5 per cent; and debt service and others, 3.4 per cent. Expenditures for general government activities have been kept to a minimum. Although there is an increase in this category, the amount is only 5 per cent of the total and smaller than the 5.4 per cent of fiscal 1974 and 5.3 per cent of fiscal 1973.
Third comes the structure of annual revenues. Revenue estimates for fiscal 1975 were based on current categories and rates of taxation, the trend of economic development and the factual re cords of preceding fiscal years. As I have said, revenues and expenditures are balanced in the new budget proposal. Annual revenues from tax and monopoly profits are listed at NT$58,898 million, or 86.7 per cent of the total substantial revenue and apparently higher than in the preceding budget. In tax revenues, the 16.4 per cent from direct taxes is slightly higher than in the 1974 fiscal year. However, the NT$9,000 million, or 13.3 per cent, from non-tax sources is lower than in the preceding fiscal year.
The national treasury's 1975 receipts from government owned enterprises will be reduced because the Chinese Petroleum Corporation, in keeping with the Government's oil policy, will not hand over its surplus.
Fourth is the expenditure for implementation of the nine important economic and communications construction projects. These nine, which have led to much concern in various circles, include a big steel mill, the Taoyuan airport, Kaohsiung ship yard, North-South Freeway, Suao Hualien railroad, petrochemical industry expansion, Taichung harbor, electrification of trunk rail roads and power development. Plans for building Suao port are still on the drawing board and have not been included. Preliminary estimates call for expenditure of NT$190,429 million between fiscal 1975 and fiscal 1979, including the NT$ equivalent of the more than US$2,220 million required.
The amount to be spent in fiscal 1975 will be NT$47,702 million, including the NT$ equivalent of US$668 million. This amount includes:
1. NT$8,226 million budgeted by the National Government. The NT$3,102 million for the freeway was listed in the special budget and has been approved. The remaining NT$5,124 million has been distributed among the various projects in the fiscal 1975 budget.
2. NT$1,455 million budgeted by the Taiwan Provincial Government either by special budget or distributed among the various projects in the fiscal 1975 budget.
3. NT$3,588 million to be financed by government enterprises. Enterprises of both the National Government and Provincial Government have listed their shares in their business budgets.
4. NT$31,826 million from foreign and domestic loans, most of which have been arranged. Negotiations on the rest are in progress.
5. NT$2,607 million from private investors.
Fifth is reinvestment by government enterprises. Although the long-range management plan of government enterprises calls for substantial expenditures on rein vestment, this has an important effect on overall economic development. For fiscal 1975, government enterprises have listed NT$45,800 million as fixed capital investment in the budgets of their subsidiaries. The money will be used to expand the power supply, tap natural gas, increase fertilizer production, strengthen industrial and mining facilities and finance communications construction. The amount is 64.1 per cent more than in the preceding fiscal year. Expansion of power generation, which is one of the nine important construction projects, will require NT$23,362 million. NT$15,228 million will come from our own funds; NT$17,803 million from foreign banks, factories and business firms; and NT$6,718 million from the special loan fund, foreign currency loans by domes tic banks and bonded customs accounts. This adds up to NT$39,749 million, all of which has been arranged and which therefore will have no direct effect on the money supply. In terms of monetary velocity, the NT$ loans from domestic banks will not have any substantial effect on the monetary situation. The amount is NT$5,331 million but we shall be repaying NT$2,237 million to domestic banks during the same period. Additionally, we shall spend NT$2,656 million on foreign exchange settlements to re pay external loans. These two measures will send NT$4,893 million flowing into domestic monetary institutions. The deficit between outflow and inflow will be a mere NT$428 million. In any event, the Government will continue to be cautious in making these arrangements.
Sixth is the increase in the pay of government employees and educational personnel. The proposed increase is one of the priorities of the 1975 administrative program. We have given this matter priority attention in putting together the budget. The budgetary proposal was made in the light of our financial resources and faithfulness to the principle of regarding the budgets of the National Government and local governments as one. The amount budgeted for this purpose by governments of the various levels is NT$9,772 million, including:
1. NT$6,090 million from the National Government.
2. NT$970 million from the Taiwan Provincial Government.
3. NT$230 million from the Taipei City Government.
4. NT$2,482 million from hsien and city governments, including villages and townships.
The total budgeted for pay increases amounts to 8.8 per cent of the expenditures of various levels of government, including the National Government with its substantial total expenditures.
Seventh is revision of the draft implementation act for the fiscal 1975 general budget of the National Government. Preparation of the budget is important; execution of the budget is even more so. When the proposed fiscal 1975 budget is approved by your esteemed Yuan, the government will execute it strictly in accord with established policy. It will permit no smallest amount of waste and exercise rigid control. No supplementary budget will be submitted unless it is unavoidable. For the effective and reasonable execution of the budget, the draft implementation act provides for moderate adjustments in amounts for wages and building materials so that progress of construction projects will not be hampered by price fluctuations. The draft also provides for the strengthening of budgetary execution by subsidiary agencies.
The foregoing has provided a general picture of the National Government's budget proposal for fiscal 1975. Accompanying this proposal are the budgets and consolidated statements of government enterprises, the budgets and consolidated statements of revolving funds, and the fiscal 1975 administrative plan of the Executive Yuan.
Additionally, the Executive Yuan has submitted for your deliberation a special budget for the foodstuff equalization fund of the National Government. This is a revolving fund required by the Government to supply food stuffs to government, military and educational personnel, and for the timely adjustment of the civilian food supply and prices.
This special budget was prepared under Article 75 of the Budget Law. We have budgeted NT$3,000 million to meet minimum requirements. The money will come from the accumulated budget surplus of previous fiscal years.
Individually, these budgets represent revenues and expenditures of varying natures and with differing functions. Comprehensively, these figures reflect the Government's efforts to carry out its administrative objectives. By referring to one and then the others, we can see the administrative plan of the National Government and discern a generalized picture of the distribution and utilization of our financial resources during the coming fiscal year. With regard to the preparation of these budgets and the details of annual revenues and expenditures, the Director-General of Budgets, Accounts and Statistics and the Finance Minister will report to you.
My foregoing report has been restricted to the main points of the National Government's general budget for fiscal 1975 together with the administrative plan and the National Government's special budget for the foodstuff equalization fund. I shall appreciate your comments and counsel.