"First, our people at home and abroad have shown their soaring patriotism and wholehearted support of the government with enthusiastic and touching deeds. Scene after scene of moving stories have coalesced into page upon page of a patriotic panorama revealing the unanimous anti- Communist determination of the Chinese people and attesting that the tighter the crunch of the moment, the more solidly united are the people in showing the invincible spirit of the Chinese race.
"Second, the U.S. Congress and huge numbers of Americans have extended to us their unparalleled warm friendship and massive support, providing unmistakable evidence that justice is always to be found in the hearts of the people and that the relationship between the Republic of China and the United States is indivisible. We are deeply appreciative and increasingly confident that ties between the two countries will be further developed and made even stronger.
"We can also see that during this same period our enslaved compatriots on the mainland have emerged like winds and clouds to cry out for freedom, democracy, jobs and especially for the emulation of Taiwan. This anti-Communist uproar, which has been swelling up in the hearts of our mainland compatriots for years, is convincing evidence that they are hungry for liberty and prosperity and that they have maintained their allegiance to our government. These developments also show the great influence that the bastion of national revival on Taiwan, Penghu, Kinrnen and Matsu is exercising over changes in the mainland situation."
In the worsening world situation, the President said, the Republic of China will continue to stick to its revolutionary guidelines, persist in its anti Communist position and display to the full its great staying power in implementing basic policy despite all turmoils.
He said: "We have an established line of priority in our struggle. This is to seek survival and stability first, then to strive for expansion and development, and finally to go forward to victory and success. Given our unfaltering diligence and buoyant spirits and the determination to contribute our wisdom and our hearts, we are convinced that we can move out along firm ground in accordance with this understanding and strategy and be assured of winning."
The President is certain that "the pivotal position of the Republic of China is even more important than at any time in the past." He urged the people "to clench our teeth, endure any further buffeting, stand firm and break through any adverse tide by continuing our endeavors to make the country more powerful and our strength greater in order to carry out the tasks that our mainland compatriots expect of us."
In conclusion, the President said: "Time after time we have reiterated that we shall never reconcile ourselves with the evil of Communism, and that sustained by the strength of our democracy, freedom and open political and economic construction, we shall march to the mainland and save China from a destiny of doom. We shall never relax in this struggle until the glorious flag of blue sky and white sun illumines the whole of China and the benevolent rule of the Three Principles of the People is restored to all of the Chinese.
"We shall return to the mainland."
In an interview, President Chiang said the government and people of the Republic of China "are confident of successfully defending Taiwan, Penghu, Kinmen and Matsu" to win the battle with Chinese Communists.
He told James D. Cary of the Copley News Service of the United States the Republic of China will never conduct negotiations or make contacts with the Peiping regime. He elaborated:
"Our position is firmly opposed to talks or contacts with the Chinese Communists. Since U.S. establishment of diplomatic relations with Peiping, the Chinese Communists have stepped up their 'peaceful unification' propaganda to attain a goal that cannot be attained by force. We shall not fall into the Chinese Communist trap. Negotiations also are proscribed by the necessity of providing democracy-loving Chinese at home and abroad and freedom-seeking compatriots on the mainland with a model for the reconstruction of China and to make sure no one concludes we have given up our struggle for freedom and democracy.
"Considering that the Chinese Communists have denied the people all the basic freedoms, any assertion that mainland people can now communicate with the outside world is a lie. Communication between the peoples on the two sides of the Taiwan Straits via mail and cultural and commercial exchanges is possible only if the Chinese Communists get rid of Communism, establish a free economy and restore democracy based on the Three Principles of the People.
"The Chinese mainland is a closed society while the Republic of China is an open one. Exchanges would only provide the Chinese Communists with opportunities for infiltration and subversion.
"The people on the mainland are compatriots and blood relatives. Although we will have no contacts or talks with the Peiping regime, we have never failed to support the people's anti-Communist activities on the mainland and the common struggle to overthrow the tyrannical regime and restore freedom."
On the subject of arms supply, the President said:
"In the past the United States concentrated on supplying marine weapons. The Republic of China now urgently requires weapons to ensure our naval supremacy and air superiority. We need modem antisubmarine equipment and high performance aircraft. The types and numbers of weapons should be sufficient to defend Taiwan, Penghu, Kinrnen and Matsu and should be provided on the basis of respect for our position. We hope the United States will continue to sell us weapons to satisfy our needs. At the same time, we are continuously seeking to produce more defensive weapons for ourselves."
The government will continue to strive for sustained growth on the basis of stability to carry out the Three Principles of the People, safeguard democratic rule and recover the Chinese mainland, the Executive Yuan said in a written administrative report for fiscal 1980 beginning July 1, 1979, to the Legislative Yuan.
These are the key goals of the report:
On internal affairs:
— Thoroughly implement the equalization of land ownership program and make the best use of land.
— Develop new communities and construct more housing.
— Improve social welfare and establish a social security system.
— Improve the living conditions of laborers, strengthen medical services in remote areas and continue to promote the family planning program.
On foreign affairs:
— Adhere to anti-Communism and always stand on the side of the democratic camp in keeping with the principle of self-reliance and reciprocity.
— Strengthen friendly relations with countries that maintain diplomatic ties with the Republic of China, and, at the same time, expand substantive relations in the economic, cultural, scientific and technological fields with all free countries.
— Actively take part in various international organizations and activities, thus smashing the Chinese Communist united front plots abroad.
On national defense:
— Take advantage of the power struggle within the hierarchy of the Peiping regime and the widespread disturbances on the mainland by stepping up political warfare against the Chinese Communists.
— Intensify war preparedness by developing the national defense industry and speeding up military modernization.
On economic development:
— Continue to develop heavy and petrochemical industries and sophisticated and technology-intensive industries.
— Build more nuclear, hydro and thermal electric power plants, and explore and develop oil resources on land and at sea.
— Maintain commodity price stability and further narrow the income gap between rich and poor.
— Improve the investment climate in order to attract more foreign and overseas Chinese capital, and expand international trade.
On financial affairs:
— Renovate the taxation system and improve services of banking institutions.
Executive Yuan approval was given an energy conservation program which calls for raising the commodity and license taxes on oil guzzling cars and a temporary ban on the establishment or expansion of factories consuming an excessive amount of energy.
The Taiwan Power Company is authorized to stipulate that buildings with central air-conditioning facilities be permitted to turn on cooling system only when the temperature reaches 28 degrees C.
Several principles of energy saving include the following:
— Establishment of technical consultant firms dealing with energy conservation will be encouraged. Meanwhile, Taipower and the Chinese Petroleum Corporation will jointly form a special group to provide technical services to major energy consumers.
— Factories investing in energy conservation may apply for bank loans or enjoy the privilege of accelerated depreciation of equipment.
— The Ministry of Interior will revise the building code to raise the insulation standard of buildings.
— Offices and business firms will be urged to turn out lights when not in use. Neon lights and other advertising illumination will be discouraged.
— Power and oil consumption by government agencies and public enterprises will be reduced to 90 percent of the 1978 level.
These are specific conservation measures:
— Taipower will try to reduce the fuel consumption of its thermal power plants.
— Establishment or expansion of caustic soda plants, carbide plants, steel and aluminum plants will be banned for the time being.
— Sale or use of inefficient home appliances and generators will be prohibited.
— Off days in major power consuming industries other than defense industry and public utilities should be staggered and scheduled on week days between June and September; annual repair and maintenance should be done on week days in September.
— Large electric water heaters will not be permitted in business establishments or private homes.
Construction work on the third nuclear plant in Pingtung in southern Taiwan is progressing well, according to C.H. Shen, director of the Office of Steam Power Projects, Taiwan Power Company.
Twenty-seven of the 38 engineering and building projects, including foundation work, roads, sewerage system and a pier, have been completed. The remaining 11 projects are scheduled for completion by the summer of 1980, Shen said.
Upon completion of these projects, installation of nuclear reactors and generators will start. The completion date of the first generator has been set for the second half of 1983.
Between November, 1983, and May, 1984, fuel 'will be fed into the first generator and test runs conducted. Commercial operation will start on May 21, 1984.
The second generator of the third nuclear power plant will be completed in the second half of 1984. Commercial operation will begin on May 21, 1985.
Each generator of this plant will have installed capacity of 951,000 kilowatts, using pressurized water reactors.
Shen said full attention will be given safety measures. There will be no danger of radiation leakage.
If the generation reaches 65 percent of capacity, Shen estimated, the plant will have no difficulty turning out 10.33 billion kilowatt hours of electricity annually.
The plant will save nearly 2.5 million kiloliters of fuel oil and at least US$75 million in foreign exchange annually, he said.
Taipower has been assured by the U.S. government of enriched uranium for the next 30 years.
A fourth Taipower nuclear plant is on the drawing boards.
The first three plants will generate 5.41 million kilowatts, or roughly half of Taipower's expected capacity in the mid-1980s.
David S.L. Chu, president of the company, disclosed that the fourth nuclear plant will be in northern Taiwan.
Nuclear plants Nos. 5 and 6 are under consideration.
More than 80 leaders of foreign retired servicemen's organizations met with 570 Chinese counterparts in Taipei for four days and pledged to work for closer cooperation.
They decided to:
— Streamline coordination of exchange visits.
— Help each other with exchanges of information, manpower, materials, techniques and experience.
— Trade information on economics and culture.
In an address, Premier Sun Yun-suan stressed the importance of unity between Chinese and foreign veterans.
"You carry a mission of peace throughout the world," he said.
The Premier praised Chinese retired servicemen for their dedication to construction of the country.
The Premier accepted a defense fund contribution of NT$101,850,000 from veterans throughout the country.
On behalf of Chinese veterans, C.Y. Chao thanked foreign delegates for their encouragement and suggestions.
Free China and the Republic of El Salvador pledged to strengthen their cooperation in agricultural, industrial, commercial and other economic fields.
The pledge was made in a joint communiqué signed by Foreign Minister Y.S. Tsiang and his Salvadorian counterpart, Dr. Jose Antonio Rodriguez Porth.
The Salvadorian foreign minister and two of his cabinet colleagues paid a week's visit to the Republic of China.
"Both parties emphasized their firm position to uphold the principles of international justice, freedom and human dignity," the joint communiqué said.
"They agreed that all freedom-loving nations should further promote unity among themselves so as to ensure through joint efforts the security and social progress of the free world."
Other excerpts:
"Both parties reaffirmed the traditional friendship long existing between the two countries. His Excellency Minister Tsiang expressed admiration for the remarkable progress the Republic of El Salvador has achieved in economic, social and educational fields, and reiterated on behalf of the government and people of the Republic of China his deep appreciation of the support and cooperation the government and people of El Salvador had throughout the past years extended to the Republic of China in the field of international affairs. His Excellency Minister Rodriguez pointed out that the mission of his visit was to reaffirm on behalf of his government, the sincere friendship of the Republic of El Salvador with the government and people of the Republic of China. He further pointed out that the undaunted spirit of the Republic of China in fighting for freedom, democracy and peace and in defending human dignity coincided with the national spirit of the Republic of El Salvador, and that in view of the fact that the two countries shared the same political ideals, the government of the Republic of El Salvador would continue to support the Republic of China.
"Both parties agreed that their governments would continue to strengthen their cooperation in agricultural, industrial, commercial and other economic fields. Minister Rodriguez and the other two Salvadorian ministers expressed satisfaction with the results of the agricultural technical cooperation offered to El Salvador by the Republic of China. They stated that the conference of consultation and exploration on the 'Program of extension of the scope for economic and technical cooperation between the Republic of China and the Republic of El Salvador' held in Taipei was a great success; and they were convinced that the good results of such consultation and exploration have laid a solid basis for further strengthening the relationship of friendship and cooperation between the two countries in the years to come.
"Minister Rodriguez and the other two Salvadorian ministers were deeply impressed by what they saw during the visit. They had high praise for the progress and accomplishment that have been registered in all fields in the Republic of China and they expressed their thanks for the fraternal welcome and generous hospitality ex tended to them during their visit by the government and people of the Republic of China."
Delegates closed the Seventh Sino-Japanese Seminar on Mainland Affairs with agreement that Red China's "four modernizations" are doomed to failure because of insurmountable difficulties.
This view was summed up by Prof. Masaaki Kasahara of the University of Foreign Languages in Kobe, who said the "four modernizations" will finally end up as "four talks" - big talk, empty talk, deceiving talk and useless talk.
Modernization calls for more than improvement in the economic and technological area, he said.
The requirement is a change of social system and behavior patterns, he added.
Chinese Communists are unable to change their values because they do not attack the problem by freeing themselves from Maoism.
Other obstacles standing on the way of modernization included popular discontent, incompetence of cadres and the bureaucracy, Professor Kasahara said.
Toshiji Kuwabara, the chief Japanese delegate, said Peiping's modernization drive will collapse amidst a continued power struggle.
Peiping has a foreign exchange reserve of only US$2 billion, while the modernization program needs no less than NT$600 billion, he said.
Recalling that the Chinese Communists used to shout "industry must learn from Taching" and "agriculture must learn from Tachai," Kuwabara said some big wheels in Peiping must be secretly praying that they can learn from the Taiwan experience.
In the postwar world, Kuwabara said, the Republic of China and the Republic of Korea are successful examples of modernization, while the modernization of Iran ended in chaos.
The modernization movement on the Chinese mainland, he concluded, is likely to follow the Iranian road.
Dr. Tsai Wei-ping, director of the Institute of International Relations and chairman of the Coordination Council for North American Affairs, told the meeting that if the Republic of China agreed to enter into peace negotiations with the Chinese Communists, it would be tantamount to "embracing venomous snakes and fierce beasts."
Commenting on the repeated peace overtures from Peiping since President Carter's "normalization" announcement last December, Dr. Tsai said the sugar-coated offers are actually a "call for surrender."
"If the Republic of China accepted Peiping's proposal for peace talks, the Communists would interpret these as negotiations between a central government and a local government," he said.
Recalling the peace talks between the ROC government and the Chinese Communists immediately after the Battle of Hsuchow in late 1949, Dr. Tsai said the first demand raised by the Chinese Communists was that the government turn over "war criminals," including practically every government leader.
"We may ask: Is there any government in the postwar world that has emerged in triumph from negotiations with the Communists?" Dr. Tsai said.
It is impossible for the Republic of China to unite with the mainland under Communist rule because the political, economic and social systems and ways of life of the two sides are totally different, he said.
If there is to be unification, either the Republic of China must accept Communist tyranny or the Chinese Communist regime must renounce the Communist system and Marxism-Leninism.
Since neither side is likely to do so, Peiping is really using its peace offers as a united front tactic to undermine morale in the Republic of China and get what it cannot win militarily, Dr. Tsai said.
Toshiji Kuwabara said there has been a marked shift of attitude in Japan regarding the Chinese Communist regime.
"Between 1971 and 1974, it was taboo in Japan for anyone to criticize the Chinese Communists," he recalled.
Developments on the Chinese mainland since then have effectively silenced those who used to praise the Communist regime. Peiping's invasion of Vietnam has done more than anything else to change the Japanese view, Kuwabara said.
Countries dealing with the Chinese Communists will be in trouble. In the East, it will be Japan and in the West it will be the U.S., said General Ho Ying-chin, strategy adviser to the President.
General Ho spoke as president of the Sino Japanese Cultural and Economic Association at the annual congress of the group.
He appealed to the governments and peoples of the Republic of China and Japan to overcome difficulties and obstacles caused by the severance of diplomatic relations in 1972 and strengthen political cooperation.
He urged Japanese to turn down any invitations extended by Peiping so as to frustrate Communist united front tactics.
The Japanese government should enter into a defense system with the Republics of China and Korea, General Ho declared.
Such a system would assure the peace and security of the Asian and Pacific region, he said.
General Ho made these points:
— Despite the appearance of conflicts, the Russian and Peiping regimes will never change their goal of communizing the world.
— The U.S. policy of uniting with Peiping to restrain Russia led to incorrect concepts among some free world nations and heightened illusions among non-aligned nations. Peiping is attempting to offset the thrust of free world nations politically and seeking technology and military equipment under the name of the "four modernizations" economically. It is also pretending to restrain Russia militarily.
— Japan yielded to pressure from Peiping and signed a "friendship and peace treaty." Peiping has launched military attacks on Vietnam to irritate Russia, which has been expanding its seapower. Russia seeks to control Japan's lifeline and plans to blockade Japan, South Korea and the Republic of China in the event of war.
— General Ho said the free world must:
— Understand that there is no difference between the evil natures of the Russian and Chinese Communists or their hostile attitudes toward the free world.
— Realize that the foundation of economic prosperity for any free nation depends on security and that economic cooperation depends on mutual security.
— Give up the mistaken idea of uniting with Peiping to restrain Russia.
— Accept the thesis that the origin of Communist disasters is in Asia and that this is where the Chinese Communists are found.
No representatives of the ROC attended the 45th Canton trade fair, the Ministry of Economic Affairs said after a thorough check.
A wire service report from Hong Kong quoted the Chinese language newspaper Ta Kung Pao as saying Taiwan trade delegations were in Canton, shopping for medicinal herbs and textiles and trying to sell machinery and electrical products to the Chinese Communists.
A spokesman for the Chinese National Association of Industry and Commerce denied that any businessmen from Taiwan attended the fair. M.P. Chen, chairman of the Taiwan Electric Appliances Manufacturers Association, and J.L. Chow, secretary general of the Taiwan Association of Machinery Industry, joined in the denial.
The Ministry of Economic Affairs reiterated that the government prohibits all dealings with the Chinese Communists and said all Chinese businessmen in Taiwan support this policy.
The government has been cracking down on the smuggling of Chinese Communist goods. Chinese Communist goods detected by Customs are destroyed.
Taiwan electrical and machinery products are of excellent quality and competitively priced. They are sold around the free world but not in Communist countries.
Military justices of the Taiwan Garrison Command sentenced Wu Chun-fa to death and his associates to prison terms ranging from eight years to life on conviction of attempting to overthrow the government with force and violence.
The same court sentenced Yu Teng-fa, former magistrate of Kaohsiung, to eight years for failure to report Wu and for spreading Chinese Communist propaganda.
Yu Jui-yen, his son, drew a two-year suspended sentence for failure to report Wu.
Sentenced to life were Lin Jung-hsiao and Li Jung-ho. Miss Yu Su-chen, Wu's mistress, got a 15-year prison term.
Hsu Chih-kan and Huang Tsung-li were sentenced to 12 years each.
Pan Sung-hsiung, Chen Wen-hsiung, Kao Chin-tze and Liu Ching-jung and Chuang Hsun drew 10-year sentences.
Chang Sen-yuan and Huang Cheh-tsung each got eight years.
The military tribunal said Wu was recruited by the Chinese Communist "embassy" in Tokyo after he fled there in 1977 to avoid prosecution for fraud. He was trained in subversive activities by Chinese Communist officials.
Wu wrote to Hua Kuo-feng, chairman of the Chinese Communist party, and was told his "revolutionary committee" would be included in the "united front for the liberation of Taiwan."
In May of last year, Wu was ordered to return to Taiwan, where he began recruiting followers.
Mainland refugees totaling 2,410 came to Taiwan for resettlement last year with the assistance of the Free China Relief Association, bringing the number of mainland escapees resettled here since early 1950 to 166,514.
The association, which just marked its 29th anniversary, has given relief of one kind or another to 3,065,000 mainland refugees scattered through out the free world.
Additionally, the association has helped resettle 9,321 Indochina refugees and has provided temporary shelter for 903 others at its refugee reception center on Penghu.
Relief supplies have been sent to the Chinese mainland by sea on tiny rafts and by air in high altitude balloons.
Last year alone, 813,700 pounds of food and other necessities were delivered by balloons and 235,216 rafts.
Balloons reached 25 provinces and 679 cities and towns.
NT$8 billion will be spent by the National Health Administration in the next three years to improve facilities at hospitals around the island.
About NT$5.5 billion will go to the National Taiwan University Hospital in Taipei for a national hospital and medical center to be built in the next five years.
NTU Hospital will have 2,030 beds and a doubled surgical operation capability.
Another five-year-plan calls for spending NT$1.2 billion for expansion of the Veterans General Hospital in Taipei.
More students will be accepted by the National Taiwan University Medical College and independent medical colleges. A re-education program will be started for doctors.
Five doctors will be selected to pursue advanced studies or do research overseas.
Ninety-seven doctors at government hospitals will be sent to medical colleges for advanced studies this year.
The Taipei City Government will improve services at its hospitals. Officials will be sent to Japan to study construction of hospitals. Older hospital facilities will be renewed, doctors will be sent overseas for advanced studies and training classes and seminars held at home.
Revision of the Patent Law was approved by the Legislative Yuan.
These are highlights:
— 15-year right from the day an invention is approved.
— Right of appeal within 30 days of a National Bureau of Standards denial of a patent.
— Punishment of up to three years of imprisonment and fine of NT$40,000 for patent infringement or theft.
— Patents will not be given for chemicals, foods, beverages, pharmaceuticals, contrabands, products detrimental to public order and customs, and new agricultural products.
Not to be considered inventions are:
— Products which have been shown in publications or are openly used.
— Products similar to those already awarded a patent.
— Products displayed for six months or longer at government sponsored or approved exhibitions.
— Non-experimental products which have been mass-produced.