The Chief of State concentrated on the raging tide of the mainland movement against Mao Tse-tung and Communism. He said that a "sea of indignation" has risen in the hearts of the Chinese people and that they have joined in a life or death struggle to end Mao's tyranny.
No one can schedule or predict the exact moment of the Republic of China's counterattack, the President and Generalissimo said, because it must await the opportune moment. But "the time of waiting will not be long", he added; "in fact the moment may come within a very short period of time".
President Chiang emphasized that the Communist day of reckoning has been brought much closer by the National Government's unwavering strategy of "70 per cent politics and 30 per cent military strength". This strategy, he declared, "is essentially a form of intangible psychological warfare. To triumph through this strategy is ten times more difficult than to achieve victory in visible armed operations. This is what our authoritative strategists mean when they teach that to attack the hearts of the enemy is of first importance; to attack the enemy's fortresses is secondary. Psychological warfare has already provided us with the key to victory".
"I believe," the nation's leader said, "that when we attack the enemy's divided power with our unified power, attack the enemy's pretended strength with our real strength, and attack the enemy's malevolence with our benevolence, the effect of our 30 per cent military actions in front of the enemy and of our 70 per cent political offensive behind the enemy will be answered with victory.
"The bankruptcy of the so-called Mao thought is exemplified in the failure of the Red Guard 'cultural revolution'. This has exposed the fiasco of Communist ideology and organization on the Chinese mainland. All Communism is on the brink of disintegration. This is the time further to close the ranks of the revolutionary fighters of our nation who are struggling for survival and freedom. But first of all, we must bring together all anti-Mao and anti-Communist forces in such a way as to achieve the political and cultural unity that will enable us to close our ranks for military action.
" ... I mean the welding together of the anti-Mao multitude with the anti-Communist movement. We have always believed that 'those who are not our enemies are our friends' ... We shall accept and respect all proposals for national salvation, national recovery, and national reconstruction. We shall welcome all like-minded benevolent persons and intellectuals as well as the working and farming masses-including Peng Teh-huai, Huang Ke-cheng, Liu Shao-chi, and Teng Hsiao-ping—to our united endeavors to suppress Mao and attain national salvation.
"We must forget all past feuds and broaden the base of our revolutionary organization. I propose an alliance of all anti-Mao forces at home and abroad through the concentration of thought and action to destroy the handful of wandering ghosts led by Mao Tse-tung. Our revolutionary forces on the mainland must place survival ahead of victory in the political war ...
"Our government completed preparations for this task some time ago. In order to attain our established military objective, we are ready to proceed against Mao at any time. However, we must be sure of where and when we should fight so that we may succeed at one stroke and live up to the expectations of our fellow countrymen ...
"The day of our victory and suppression of Mao also will be the day on which democracy and constitutional rule will be reinstated on the mainland. We shall conduct general elections and convene the General Assembly. That is the platform whereon the Chinese can solve the China problem. When the government is elected by the people and political issues are settled by the voice of public opinion, we shall be able to live up to the expectations of our Founding Father ... "
A few days after the President's address, the Foreign Minister, Wei Tao-ming, speaking in New York where he was attending the United Nations General Assembly, said the Republic of China is increasing the number of its political activists on the mainland "day by day". He said these activists are ready to join with and give help to the anti-Maoists at the opportune moment.
President and Madame Chiang Kai-shek appeared before an October 10 rally of 200,000 at the square in front of the Presidential Building in downtown Taipei. Parades wound through city streets all day. More than 100 floats prepared by civic organizations moved past the Presidential Building. Taipei Special City opened its first athletic championships at the Municipal Stadium. With its exhibition space nearly doubled, the National Palace Museum presented a special showing of Chinese art treasures.
On the eve of the Double Tenth, Madame Chiang Kai-shek led ladies of both the Chinese and foreign communities on visits to the sick and wounded at armed forces hospitals. In editorial comment, the China News said: "Our foreign friends have been preparing for this moment for many months. They have raised money, bought gifts, wrapped them, and learned to speak words of Chinese greeting and good cheer. All this is voluntary. No one is compelled to participate. It seems to us that the overwhelming response and the enthusiasm of the effort reflect American approval of the dedication and the patriotism of the free Chinese people."
National Day celebrations also took place in overseas Chinese communities all over the world. National flags flew throughout Hongkong in defiance of the Communist terrorists. This was in dramatic contrast to October 1, the Chinese Communist "day", when relatively few red banners were seen except on buildings owned or controlled by the Peiping regime.
Vice President and Prime Minister C.K. Yen did not go to Montreal for Double Tenth ceremonies and the Canadian Centennial as previously planned. The government announced that Vice President Yen was busy with pressing affairs of the Executive Yuan—which was true enough but not the whole story. Also involved was the U.N. announcement of External Affairs Secretary Paul Martin that Canada still favored a "two-Chinas" solution of the Chinese representation issue. Prime Minister Lester Pearson had said in August that in consequence of the mainland turmoil, Canada had no intention of raising the China issue this year.
The China News commented: "The Republic of China is making it clear to the world—as well as to Canada—that no slightest compromise is possible with regard to 'two Chinas'. This is not an academic matter: the survival of the free Chinese nation and of Chinese culture is at stake ... If any other free world friends have 'two Chinas' ideas, they may now be expected to restrain themselves. Cancellation of Vice President C.K. Yen's Canadian visit indicates that this country will not temporize. It is better to stay home—to have a friend or two less—than to accept identification as Formosa and thereby break faith with our 700 million tyrannized compatriots on the Chinese mainland."
Because of its high regard for Canadian friendship, the Chinese government sent Deputy Prime Minister Huang Shao-ku in the Vice President's stead. In Ottawa, Huang had what he described as "a very frank exchange of views" with Prime Minister Pearson. The discussion centered around the "China issue" and the war in Vietnam.
The Deputy Prime Minister addressed an overflow crowd at Expo 67 on the Chinese National Day. He said that the exposition theme—Man and His World—had special significance for the Chinese people. "The harmony between man on the one hand and his world on the other has been the main-spring of Chinese philosophy as well as a way of life for thousands of years," he said.
Overseas Chinese of Vancouver turned out in large numbers to welcome S.K. Huang to British Columbia. He spent two busy days in the Canadian West Coast metropolis.
Returning to Taipei from the 10-day trip, he urged free nations to stand firm on principle and not seek quick gains. He said his exchange of views with Prime Minister Pearson had improved Sino-Canadian understanding.
Vice President Yen, who missed one trip, has another upcoming in February. He will go to Thailand to repay the visit of Prime Minister Thanom Kittikachorn to Taiwan last March. Increased political and economic cooperation between the two firmly anti-Communist countries will be discussed.
The Vice President-Prime Minister was busy enough to justify the government's assertion that "exigencies" prevented the Canadian trip. Answering questions of the Legislative Yuan, he said the government is undertaking aerial reconnaissance and other investigations of mainland conditions. The findings are confidential, he added, but the task has been carried out systematically and scientifically. He said it is vitally important to provide the free world with accurate information about events behind the bamboo curtain.
Vice President Yen also told the legislature that no matter what the outcome of the Vietnam war, the Republic of China's determination to liberate the mainland will not be affected. He said the government has warned friends and allies against falling into Vietnam peace traps. The government is prepared for all contingencies, he added.
Commenting on U.S. plans to build an anti-missile defense system to guard against Chinese Communist nuclear attack, the Vice President suggested that such defenses be of worldwide character. This echoed a Taipei editorial page call for installation of an anti-missile system on Taiwan, which is only a hundred miles from the mainland and within easy reach of Peiping's nuclear weapons.
The Vice President addressed some 4,000 overseas Chinese who returned to celebrate the Double Tenth. He said that the downfall of mainland Communism is imminent and that the National Government is prepared to undertake a program of reconstruction as soon as liberation has been accomplished.
October festivities progressed through Overseas Chinese Day, Taiwan Retrocession Day, and culminated in President Chiang Kai-shek's 80th birthday (81st by Chinese reckoning) on the 31st. The Vice President led the way as free Chinese everywhere signed congratulatory scrolls and participated in programs to wish the Chief Executive long life and good health.
President Chiang absented himself from the celebration in accord with Chinese tradition and his own preference. He has consistently urged the nation not to observe his natal day. But considering that President Chiang is the world's ranking elder statesman, it was impossible for Chinese and foreign friends to ignore the occasion.
His is a life that spans the whole history of the Republic of China and a dedication to the cause of Chinese freedom that has never wavered. Understandably, his is a name that Mao Tse-tung fears even more than Liu Shao-chi's.
The birthday found the President in excellent health and as energetic as ever. His office hours have not been reduced and he continues to see many foreign dignitaries as well as free Chinese leaders.
Anti-Communist leaders came from every continent to establish the World Anti-Communist League.
The more than 200 freedom fighters who attended the first conference passed resolutions supporting the defense of South Vietnam and the liberation of the Chinese mainland. Steps were taken to implement an anti-Communist youth program and to hold a dramatic second conference in embattled South Vietnam.
Details regarding the establishment of WACL and the 13th conference of the Asian Peoples' Anti-Communist League, which was convened after WACL's adjournment, will be found in a separate article in this issue.
The 22nd General Assembly session got under way at the United Nations. When three Communist and six Afro-Asian nations proposed the seating of the Chinese Communists, Ambassador Liu Chieh denounced the "distortions, falsehoods, and specious reasoning" of the resolution. Laughter rippled through the ranks of delegates when Ambassador Liu pointed out that Prince Sihanouk of Cambodia (one of the resolution sponsors) had just denounced Peiping's imperialism as worse than the American brand.
Most observers predicted that Peiping's 1967 bid for a seat would be defeated by a larger margin than last year.
Foreign Minister Wei Tao-ming told the Assembly that the war is in Vietnam is "the unfolding of a master plan formulated by Mao Tse-tung. Ho Chi Minh's part in this master plan is the subjugation of the Republic of Vietnam. But Mao Tse-tung aims at something much bigger, more ambitious than this; he seeks to conquer the whole of the Asian and Pacific region, with world domination as the final objective".
He said efforts to end the Vietnam war will be futile because Mao and Ho are not interested in peace.
More than 150 overseas delegates attended the fifth Asia Overseas Chinese Traders' Convention in Taipei and decided to make the organization worldwide. Next year's meeting will be in Tokyo.
At the call of President Chiang Kai-shek and Vice President C.K. Yen, the overseas industrialists and businessmen voted to work for an Asia-wide boycott of Chinese Communist goods. They will promote trade with Taiwan and seek the establishment of more shipping routes between this island and their places of residence.
An overseas mission of 19 came from Indonesia to develop trade with that increasingly anti-Communist country. Peiping's hackles had risen when a Republic of China trade mission to Jakarta recommended a US$20 million credit. The Red Chinese accused Indonesia of pursuing a "two-Chinas" policy.
Accepted by the National Reconstruction Planning Committee of the National Security Council was a series of recommendations made by Chinese American economists.
The effect will be more rapid modernization of the economy with regard to the distribution of resources, taxes, finance, industrialization, wages, and population policy.
Rapid growth of industrialization indicated the need for such streamlining. In the first eight months of 1967, foreign investment totaled nearly US$53 million. Approximately US$37 million was from 72 foreign investors and US$16 million from overseas Chinese. The new factories will sell products worth US$150 million annually and create 26,000 new jobs.
Taiwan received only US$37 million in overseas investment during all of 1966.
Overseas Chinese investments totaling more than US$11 million were approved in July and August alone. Of 130 applications, 110 were approved. Most investments were in Taiwan branches capitalized at around US$100,000. Entry permits had been issued to 32,000 overseas Chinese visitors since last June.
Minister of Economic Affairs K.T. Li told the Legislative Yuan that 16 per cent of Taiwan's investment is coming from outside the country.
Several American investors joined in predicting an even more prosperous industrial future for Taiwan.
Joseph V. Weber of IBM said concentration on quality and prompt deliveries can make Taiwan one of Asia's five foremost industrial areas within the next five years.
Roy Gustavson, an industrial development specialist of the United Nations, said Taiwan electronic components makers can be doing business of US$100 millions a year within five years. He said they must improve technology and pare down excessive manpower, then sell their products to the island's large foreign-invested electronic plants, which already have a volume in excess of US$150 million a year.
Monty Shapiro, president of the General Instrument Corporation (which operates a Taiwan subsidiary), said the production volume of foreign-owned electronics plants can be raised to US$350 million in four or five years. The GIC subsidiary (Taiwan Electronics Corporation) is increasing its capital to US$7 million and its payroll to 4,000.
Executive Vice President James H. Goss and Vice President Reginald H. Jones of General Electric stopped over in Taiwan to look into the possibility of establishing service shops and other facilities.
To spur electronics technology, an applied research center will be established at Hsinchu with United Nations assistance. Total cost will be about US$1.5 million.
The fifth Asian Electronic Industries Conference will be held in Taipei in 1969. Previous biennial meetings have been held in Japan.
More than 21,000 new business were established in Taiwan during the first six months of 1967, most of them in Taipei. Capital exceeds US$856 million.
Soichiro Honda, the president of the Honda Motor Co. of Japan, came to Taiwan to look into the possibility of manufacturing small cars. Honda motorcycles are assembled by the San Yang Industry Co. for sale in Taiwan. The Honda company is already making 360 cc and 600 cc vehicles in Japan.
With 320,000 motorcycles and scooters on Taiwan streets and highways, traffic specialists have suggested that the concentration is becoming dangerously high and that the island should move into the production of a reasonably priced four-wheeled vehicle.
Foreign trade is expected to exceed US$1.2 billion this year for a 20 per cent increase. For the first nine months of 1967, exports topped US$505 million and imports US$574 million. In terms of actual foreign exchange outflow, the trade balance was favorable by US$60 million.
Still under study by the Executive Yuan are plans for the nation's first integrated steel plant. Vice President Yen said the government would sift the facts with great care and choose the plant that will give the most for the money in the briefest period of time.
Encouraging news came from the economy's agricultural sector. The year's first rice harvest set a record of 1,152,555 metric tons. The Joint Commission on Rural Reconstruction said rice output can be increased by at least 10 per cent annually if more intensive cultivation methods are employed. The new plan has been demonstrated on thousands of hectares of farm land since 1963.
Although Taiwan is not such a large island, the requirements of business have led to the introduction of airmail. The service is available between Taipei, Taichung, Tainan, Kaohsiung, Makung, Hualien, and Taitung.