The vice premier flew into Saigon on Monday, May 11, aboard a China Airlines jet. He was met at the airport by Premier Khiem, Foreign Minister Tran Van Lam and other dignitaries. He received a 19-gun salute, reviewed an honor guard and expressed his pleasure at the opportunity to visit the Republic of Vietnam.
The Republics of China and Vietnam have the same cultural origin, face the same enemy and will share the same destiny, he said, and added that Sino-Vietnamese friendship is a strong obstacle to Communism. Under the leadership of President Nguyen Van Thieu, he continued, the Republic of Vietnam has made great progress even while fighting the Communists in a lengthy hot war.
Vice Premier Chiang rode into the city through a Chinese-style arch spanning the main boulevard. Lining the street were welcoming banners in Chinese, Vietnamese and English. Accompanying him were Defense Vice Minister Admiral Ma Chi-chuang and Vice Minister of Foreign Affairs James Shen.
Calling at the presidential palace, Vice Premier Chiang delivered to President Nguyen Van Thieu a letter from President Chiang Kai-shek, the visitor's father. He also conferred with Vice President Nguyen Cao Ky and other leaders.
Communists greeted Chiang Ching-kuo with a rocket attack in the early morning hours of Tuesday, May 12. One of the 122 mm missiles landed only five blocks from the government guest house where the vice premier was staying.
The vice premier's first Tuesday stop was at the national, war cemetery just outside Saigon to lay a wreath in memory of the Republic of Vietnam's war dead. He then called upon the Vietnam Senate and National Assembly. Accompanying him were Chinese Ambassador General Hu Lien and Nguyen Van Kieu, charge d'affaires of the Vietnamese Embassy in Taipei. Calls were made on Vietnamese leaders and at the Center.
Vice Premier Chiang was the luncheon guest of more than 100 overseas Chinese leaders. Also attending was his host, Premier Khiem. The vice premier talked informally with many of the Chinese and asked them about their living conditions.
He told representatives of the 1.2 million Chinese in the Republic of Vietnam that the day of mainland recovery is not far off and that Communist aggression will be repulsed in Indochina. Cooperation is the key to anti-Communist victory, he said, and cited the Republic of Vietnam for its enlightened treatment of Chinese. He said Premier Khiem's presence was indication of Vietnamese concern about the Chinese people.
Vice Premier Chiang received from the Chinese community a pair of elephant tusks engraved with characters for "champion of liberty".
A two-hour meeting with President Thieu followed in the afternoon. Vice Premier Chiang decorated the Vietnamese chief executive and other Vietnam leaders. In the evening he was the dinner guest of President Thieu and received a decoration from the Vietnamese government.
On Wednesday, May 13, the vice premier flew to Vung Tau, 40 miles southeast of Saigon, by helicopter to visit a rural cadre training" center. He reviewed the class of cadres and was briefed on the pacification program. Foreign Minister Tran Van Lam was the host for luncheon at the presidential villa overlooking the South China Sea. In the afternoon the visitor saw economic and cultural projects at Bien Hua, 15 miles northeast of Saigon, and other places.
On all of the vice premier's travels, security was tight. He was protected by helicopters, armored cars and South Vietnam's elite troops.
In the evening, Vice Premier Chiang honored his host, Premier Khiem, at dinner in the Chinese Embassy. More than 100 attended, including Vietnamese leaders, overseas Chinese and the chiefs of the diplomatic mission of Korea, Thailand, Australia and New Zealand.
The Chinese leader thanked Premier Khiem for his hospitality and said he had been much impressed by what he had seen. He said that detailed discussions had been conducted on the strengthening of political, economic and cultural cooperation. He expressed hope the Republic of China would be able to contribute more to the Vietnam construction program. Premier Khiem, who received the Order of Precious Tripod With Grand Cordon, cited his guest for lifelong dedication to the cause of freedom. He thanked the Republic of China for its assistance to Vietnam.
Before departure on Thursday, May 14, Vice Premier Chiang held a press conference. He reviewed the results of his visit, thanked his hosts and said that further military assistance to South Vietnam is not contemplated at this time. He noted that the ROC already has a psychological warfare team in the Republic of Vietnam and that ROC military strength immobilizes large Chinese Communist forces on the mainland.
Returning to Taipei, the elder son of President Chiang said his anti-Communist confidence had been greatly strengthened. Peiping will be destroyed by the very fires it has ignited, he added.
China, Vietnam, Korea and Thailand are all fighting the Communist aggressors, he said, and "will unite and cooperate more closely to assure victory". The meetings with President Thieu were "meaningful and significant", he said, and revealed an identity of views about the situation in Indochina, including Cambodia.
He said the Republic of China may increase economic assistance to Vietnam. "I have seen their work," he said, "and I think we may offer more contributions for economic reconstruction."
The United States has sufficient military power to repel the Communists in Vietnam and Cambodia, he said. One of his calls in Saigon was at the headquarters of the U.S. Military Assistance Command, where he was briefed on U.S.-Vietnamese operations in Vietnam and Cambodia. He said the Chinese military group in Vietnam is making valuable contributions.
On hand to meet the vice premier was Vice President and Premier C. K. Yen and more than 100 government leaders. It was subsequently announced by the Ministry of Foreign Affairs that Premier Khiem will return Chiang Ching-kuo's visit in the fall.
Editorial opinion on the vice premier's trip included these comments in the China News:
"Vice Premier Chiang Ching-kuo, who is rapidly becoming the Republic of China's roving ambassador, is off on another important mission, this time to the Republic of Vietnam.
"The journey to Saigon comes on the heels of the vice premier's visit to Washington and his detailed discussions with President Nixon, Vice President Agnew and Secretaries Rogers and Laird. It is also made at a time when Vietnamese and U.S. forces are engaged in cleaning out the Communists sanctuaries along the Cambodian border.
"Chiang Ching-kuo and President Nguyen Van Thieu have much to talk about—the continuing partnership with the United States, the possibility of free Asian alliance to assure the peace and security of the region, and the friendship, solidarity and cooperation of the Republics of China and Vietnam.
"Those who do not understand the complexities of Asia sometimes ask why the Republic of China is not fighting in Vietnam. The choice is not that of this country but of others who fear the dispatch of free Chinese troops would invite a response from the Chinese Communists.
"This country has always been willing to stand up and be counted in defense of freedom anywhere in the region. The offer of forces has included both Korea and Indochina and it still stands.
"Vice Premier Chiang's trip is important, too, for the contacts with the overseas Chinese of South Vietnam. The more than 1,250,000 Chinese there are important not only to the country's security but also to its economic development.
"Chiang Ching-kuo is proving himself an able diplomat and a unifying force in the politics of Asia and the relationship with the colossus on the eastern side of the Pacific. He is also demonstrating courage that increases his prestige in the eyes of his own people and fellow-Asians. After shaking off an assassination attempt in New York, he has gone to the world's hottest battlefront, where danger may lurk at any street corner."
Taipei's visitor of the month was Robert McNamara, president of the World Bank and former U.S. secretary of defense. He came to sign with Finance Minister K. T. Li two World Bank loan agreements totaling US$62.5 million. The Taiwan Power Company is receiving US$44.5 million for expansion projects and the China Development Corporation will get US$18 million for subloans to private industry.
McNamara noted that World Bank loans to the Republic of China exceeded US$81 million in fiscal 1969, an increase of 65 per cent, and expressed expectation of further loans in the next few years. He conferred with President, Chiang Kai-shek and Vice President C. K. Yen.
In a departure statement, he said that "dynamism, enthusiasm and determination" have made possible the Taiwan "economic miracle".
"Two of your recent and modern policies have interested me immensely," he said. "One is the land reform program, which seems capable of spreading the benefits of improved agriculture far more widely amongst the rural population. The other is your family planning program, which can help you keep population growth within bounds, so that each citizen can lead a fuller and more worthwhile life.
"The enormous growth of literacy, with universal education for nine years, is another deeply impressive facet of your society. And as I went through the National Palace Museum, I became more than ever before aware of the magnificence of that ancient and enduring civilization of China which as a nation you can draw upon for inspiration.
"I had known before I came here of your magnificent record of steady economic growth, but while here I was able to appreciate the dynamism of your people at all levels—the minister and the official, the businessman and the worker."
President Chiang Kai-shek honored more than 500 guests at his annual diplomatic reception at the Chungshan Building on Yangmingshan. U.N. personnel and other foreigners assisting Taiwan were among those invited. The chief executive expressed hope that international relationships would be improved as a result of his guests' activities.
From Peru for a five-day visit came Prime Minister General Ernesto Montagne Sanchez. He signed with his host, Vice President and Prime Minister C. K. Yen, a joint communique which pledged the close cooperation of the two countries in the United Nations and other international organizations. They agreed that there is a continued threat to freedom, democracy and justice, and said vigilance against aggression must be increased. The prime minister met with President Chiang Kai-shek.
New Zealand's Deputy Prime Minister J. R. Marshall was another visitor. He predicted increased trade with Taiwan as a result of his country's relaxation of import quotas.
Dr. Ho Van Cham, the Republic of Vietnam's minister of open arms, came from Saigon for a week and showed special interest in the psychological warfare endeavors of the Chinese government.
From Brazil's second largest city, Sao Paulo, came Angelo Cardinal Rossi. He reported that Chinese emigrants to Brazil are doing well. There is a Chinese diocese and Chinese school in Sao Paulo.
Panama's Ambassador to the United Nations Aquilino E. Boyd said his country will continue to support the Republic of China in the United Nations.
Visiting for a week was former Republic of Vietnam Premier Tram Van Huong. He urged the formation of a regional collective security organization.
San Salvador's Foreign Minister Francisco Jose Guerrero came for four days and met with President Chiang. He attributed the Republic of China's progress to the leadership of the chief executive. He went south to visit the Kaohsiung Export Processing Zone.
Liberia sent Undersecretary of State Oliver Bright Jr. He came for eight days and looked into agricultural, economic and medical installations.
Another visitor was Jose Ramon Gonzales, secretary of labor of the Dominican Republic.
Paraguay's ambassador to the United Nations, Miguel Solano Lopez, said the United States was attacking Communist sanctuaries in Cambodia to assure the freedom of the democratic states of Indochina. Sr. Solano came for nine days.
Admiral Chang Chi-su, the chief of operations of the Korean Navy, was the guest of Admiral Feng Chi-tsung, commander-in-chief of the Chinese Navy. He went to southern Taiwan to see naval bases and the training facilities of the Chinese Marine Corps.
Indonesian visitors included Muhammad Soebchan, deputy speaker of the Supreme People's Congress and vice chairman of the Nahdatul Lilama Party, and Muhammad Noerdin, a member of parliament.
A 21-man group of military reporters came from Japan and was received by Huang Chieh, the minister of national defense.
Chinese diplomatic appointments included:
Liu Hsin-yu, former ambassador to the Maldives, to Botswana, replacing Pu Teh-chieh.
Ho Feng-shan, formerly ambassador to Bolivia, to Colombia, replacing Chen Tse-hua.
Tseng Hsien-kuei, minister-counselor in Madrid, as ambassador to Bolivia.
Wei Chi-min, adviser to the Chinese delegation at the United Nations, to replace Sih Shou-heng as ambassador to Venezuela.
To be reopened is the consulate-general at Boston, which was closed soon after World War II. Chinese Americans requested the move.
Taipei was expected to get its third African embassy soon—that of the Republic of the Congo (Kinshasa). The other countries are Malagasy and Gabon.
Great Britain sent a new consul, Thomas Dussy, replacing R. J. Bray. Dussy formerly was in Malaysia.
Slated for relief in August is Vice Admiral John L. Chew, commander of the U.S. Taiwan Defense Command, who will retire. His successor will be Vice Admiral Walter H. Baumberger, deputy and chief of staff to the commander-in-chief of the U.S. Pacific fleet.
Dr. Bruce H. Billings, commissioner of the Joint Commission on Rural Reconstruction and science consultant to the American ambassador, will stay on past the expiration of his two-year term. He returned from a brief home consultation.
Dr. Chang Pao-shu, secretary-general of the Kuomintang Central Committee, returned from the Republic of Korea, where he had been the guest of the Democratic-Republican Party for eight days. He received an honorary degree from Kyung Hi University and met with President Park Chung Hee.
Submitted by Representatives Herbert Burke of Florida and Lester Wolff of New York was a House Foreign Affairs Committee report which said the Republic of China will remain an important ally of the United States through the 1970s. After a trip through East Asia, they said the importance of Taiwan is increased by the impending return of Okinawa to Japan.
U.S. Defense Secretary Melvin Laird echoed their sentiments. The Republic of China is an important and essential ally of the United States, he told the House Appropriations Subcommittee. Taking note of cuts in the fiscal 1970 military assistance program, he said the Defense Department had found other ways to increase the Republic of China's military preparedness.
For the fiscal year, he said, the United States had provided the ROC with US$157 million worth of excess military stocks plus US$25 million in regular military assistance. He added that military credit sales to the ROC are expected to total about US$40 million for 1970. The ROC Air Force will have to be modernized, he added, and promised that high priority will be given to supply of F4D or F4E Phantom jets if these are approved as part of the program.
Speaking on the 20th anniversary of President Chiang Kai-shek's resumption of office, Spanish Ambassador to Taipei Julio de Larracoechea said the Peiping regime will collapse in the not too distant future. He said the stature of Chiang Kai-shek has grown with the years to reach a unique high. The President, who had stepped down in 1948 to make way for U.S.-instigated "peace talks" with the Communists, resumed office May 20, 1949, at the request of the nation.
Trade continued to grow in the first four months of 1970. Total volume was US$829 million, an increase of US$300 million over the same period in 1969. Exports were US$419 million for a gain of US$127 million or 43 per cent. Imports stood at US$410 million, up by US$120 million or 40 per cent.
Textiles paced the exports with volume of US$119 million, a gain of nearly 50 per cent. Then came metal products and machinery, US$43 million, and canned foods, US$40 million. Leading imports were machinery, US$53 million; metals, US$49 million; and electrical machinery and apparatus, US$48 million.
For 1969, trade with Europe reached US$225 million with an imbalance of US$1 million. West Germany was the biggest customer with purchases of US$54 million. Taiwan bought US$50 million worth of goods from the Germans. Principal exports to Europe are canned mushrooms and asparagus. Then comes textiles. Imports from Europe are headed by machinery, tools, metals, chemicals and pharmaceuticals.
Y. T. Wong, director of the Board of Foreign Trade, told the Economic Affairs Committee of the Legislative Yuan that Taiwan's trade will exceed US$2,700 million this year with a deficit of about US$50 million. The United States again will be the biggest trading partner.
Foreign sales of the Kaohsiung Export Processing Zone are expected to top US$100 million this year. Volume was US$62 million last year. The zone has 140 factories in production or under construction and provides employment for 32,000. Applications for investment at the Tantze Export Processing Zone near Taichung are now being accepted. Applications will open in July for the establishment of plants at the Nantze Export Processing Center near Kaohsiung.
During the month, negotiations were conducted in Taipei or abroad for increased trade with Australia, Indonesia, Malaysia, Belgium and the American state of Indiana. Australia is prepared to assist in establishing an integrated steel mill in Taiwan but is reluctant to contribute to the investment.
The government hopes to build the steel mill by obtaining no more than 45 per cent of the investment from foreign sources to match its own 45 per cent. Overseas Chinese would put up the rest. Funding of US$25 million for first-stage construction would come from the government budget and loans from the Sino-American Fund for Social and Economic Development.
Total cost would be US$240 million. Integrated production of a million tons of steel annually would begin with completion of the second stage. Volume would be increased to two million tons in the second stage.
External investments totaled US$25.2 million in the January-April period for an increase of US$12.1 million. Thirty-nine applications were approved compared with 51 in the same period of 1969, but amounts were much larger. Foreign investments added up to US$22.2 million and overseas Chinese investments to US$2.79 million. Electronics attracted 66 per cent of the total.
Japan extended the US$30 million balance of its 1965 yen credit until June 30, 1974. The full amount was US$150 million. Some projects are still pending. A new credit of US$300 million is under negotiation.
Government will invest US$335 million in the petrochemical industry during the next four years. Projects include the drilling of five oil or gas wells annually, construction of a refinery in northern Taiwan and the building of several petrochemical plants.
Zenith Radio Corporation is the new addition to Taiwan's booming American-invested electronics colony. Its US$7 million plant will be in the Neili Industrial Zone in southwestern Taipei.
Construction is under way on Philips Industries of Holland plants to make TV tubes and TV glass. The site is at Chupei in Hsinchu county southwest of Taipei.
General Mills of the United States and Durahunt-Chen of Hongkong will make toys in Taiwan for export to the United States, Canada and Europe.
Construction is expected to begin next year on the elevation of railroad tracks in Taipei. The 30 grade crossings within the city have become traffic bottlenecks. Still in the planning stage is the round-the-island railroad system. Financing is the big obstacle.
Taiwan's Railway Administration is planning a telephone ticket service. Space will be reserved on the Chu Kuang Express between Taipei and Kaohsiung and the tickets delivered for a small fee.
By 1976, the telephone count will be 7.55 per persons to rank with the average in developed countries. The number of telephones will top 400,000 by the end of this year. In 1965, the count was 166,700.
Construction of the North-South Expressway will begin in January as planned. The first link will be from Keelung to Yangmei in the north.
With 33 new air-conditioned buses entering service this summer, the Taiwan Highway Bureau advertised for conductresses. Written and oral examinations are prescribed and the girls must speak both Mandarin and Taiwanese. Salaries will be high by Taiwan standard—US$45 a month plus uniforms, lodging and welfare and labor insurance benefits. The girls must be between 17 and 21 and single.
April tourists totaled 43,987, an increase of 34.4 per cent. There were more Americans and fewer Japanese than last year as a result of Expo 70 at Osaka. Japanese numbered 12,729 and Americans 12,672. The overseas Chinese total was 4,865 for an increase of 51.3 per cent.
The January-April figure was 147,180, a gain of 24.8 per cent. Foreigners totaled 130,864, up by 24.3 per cent, and overseas Chinese 16,316, a gain of 28.8 per cent. Japanese sent 68,922 visitors and the United States 31,678.
The China Pavilion at Expo 70 had its millionth visitor in April. This meant that one of ten Expo visitors saw the China exhibition. Only four pavilions had a better record.
Offices will be opened in Tokyo, San Francisco and Europe by the Tourism Council. Vice Minister of Communications Wang Chang-ching told a tourism meeting that many visitors to Asia are overflying Taiwan because of inadequate promotion.
Tourism loans of more than $8.5 million have been approved by the China Tourism Development Corporation since last September. Most have gone to hotel builders.
Domestic air travel is booming. Passenger volume soared by more than 40 per cent in the January-April period while train travel was declining by 3.9 per cent. China Airlines and the Far Eastern Air Transport Corporation, the two domestic carriers, have begun pool operations. Tickets are good on the planes of either company on a space available basis.
Taipei International Airport will be ready for the jumbo jets in early July. All other Sungshan expansion projects will be completed by the end of the year.
Air agreements with Korea and Thailand were amended. China Airlines will be able to fly to Pusan and Seoul direct or by way of intermediate points. Korean Air Lines will extend its Seoul-Taipei-Hongkong route to Saigon and Bangkok. CAL will fly on to Kuala Lumpur from Bangkok and Thai International will extend its Taipei flights to Osaka.
Inaugural ceremonies were held for the Asian and Pacific Council Food and Fertilizer Technology Center in Taiwan. The participants in Asia's most ambitious agricultural cooperation project are Australia, China, Japan, Korea, Malaysia, New Zealand, Philippines, Thailand and Vietnam.
President Chiang Kai-shek's congratulatory message said Asian nations will contribute to world peace and security by solving their own food problems. Vice President C. K. Yen said the center marks an important involvement of ASPAC in the national lives of its member countries.
Growing of temperate fruits and vegetables in upland areas along the East-West Cross-Island Highway has been a notable success and plantings will be expanded. Farmers settled on these lands by the Vocational Assistance Commission for Retired Servicemen have planted nearly 100,000 fruit trees—apple, pear, peach, cherry, plum and others. Output exceeded 50,000 kilograms in 1969.
Vegetable crops earn good prices in the summer months, when the lowland heat makes cultivation difficult. Flowers are also grown.
A banana institute will be established by the Taiwan Provincial Government to conduct research in quality improvement, packaging, shipping, etc. The goal is protection of the Japanese market, where Taiwan faces competition from Central and South America and Southeast Asia.
Government is planning to mechanize 450,000 hectares of farmland, about half the Taiwan total, in the next four years. Land consolidation will be encouraged. Prices of power tillers have been cut by US$150 to encourage purchases. More loans are being made available.
Ground was broken for the Tachien Dam and Reservoir in central Taiwan. The 180-meter dam on the upper reach of the Tachia River will back up 195 million cubic meters of water. Power output will be 234,000 kilowatts. A Japanese-Italian combine is carrying out the construction.
Farm demonstration teams have been sent to 27 African countries since technical assistance first was extended to Liberia in 1961. Teams have gone to Swaziland and Mauritius within the last year. Other new operations are in Thailand, Peru and Panama.
Some 200 members of the International Press Institute came to Taiwan for three days after their 19th General Assembly in Hongkong. They met with President Chiang Kai-shek and other leaders. A delegation of the world organization interviewed the Yuyitung brothers and reported the two journalists from Manila had been well treated by the Chinese government.
Quintin Yuyitung, publisher of the Chinese Commercial News of Manila, and his brother, Rizal, managing editor of the paper, were deported to Taiwan by the Philippines government May 5. Both are Chinese nationals. They were charged with inciting revolution by force and violence.
The Chinese government was investigating the charges against the Yuyitungs. If any trial is conducted, it will be public, the government said.
Taiwan's Weather Bureau warned of increased rainfall, barometric pressure and typhoons plus cooler temperatures for the next two or three years. The long-range forecasts are based on 70 years of weather reporting and correlation with sunspot activity. The temperature drop is expected to be most pronounced in northern Taiwan and in the spring and summer.
Dedicated at Kaohsiung was a new radar station to provide typhoon forecasts. It has a radius of 464 kilometers. With the station at Hualien, the Chinese government has a typhoon forecasting capability reaching from 126 degrees east longitude to the Chinese mainland and from 20 to 27 degrees north latitude.
Colleges and universities will hold their joint entrance examinations July 3 and 4. About 75,000 will take the tests and only some 23,000 will qualify for seats in the freshman class.
College graduates who wish to go abroad for advanced study will be tested June 21 and 22. Government scholarships will be offered in 20 fields.
US$15 million will be spent on science and vocational education in the next three years. A loan of US$9 million is expected from the World Bank. A Taipei technical college will be established and other vocational colleges enlarged.
Registration began for the summer youth activities of the China Youth Corps. More than 200,000 will participate. Summer camps will open on July 1 and close on August 31. Nearly 150 activities will be available at the 1,855 camps. Reservations are roughly divided into a third for high schools, a third for colleges and a third for those not in school.
President Chiang Kai-shek was briefed by Education Minister Choong Kow-kwong on youth problems and juvenile delinquency. Minister Choong told of more than 1,200 case studies of delinquent students and of those who are outstanding in grades and conduct. The contrasts between the studies are expected to shed light on what causes young people to go wrong.
The Military Assistance Advisory Group, Republic of China, marked its 19th anniversary. Personnel now totals about 450, compared with 2,347 in 1956. The reduction has been made possible by the growing competence of the ROC armed forces. President Chiang Kai-shek held a reception for more than 800 members of the U.S. armed forces and their dependents at the Chungshan Building on Yangmingshan. The guests included U.S. Ambassador Walter McConaughy, Vice Admiral John L. Chew, the commander of the U.S. Taiwan Defense Command, and Major General Livingston Taylor, the chief of MAAG/China. President Chiang expressed appreciation for the many years of American military assistance.