Speech of President Ma Ying-jeou

Speech of President Ma Ying-jeou

At the Extraordinary Session of the Kuomintang 17th National Party Congress

November 22, 2008

Chairman Wu, Vice President Siew, Premier Liu, Speaker Wang, Vice Chairmen, senior comrades, party delegates, and comrades, good morning:

The KMT holds an Extraordinary Session of the 17th National Party Congress today. The meeting is momentous to us because this is the first National Party Congress meeting since the KMT returned to power. We will celebrate the 114th birthday for the KMT two days from now, November 24. In historical retrospect, the Ching Court had to endure humiliation and to forfeit sovereignty because of defeat in the 1894 Sino-Japanese War. Dr. Sun Yat-sen, Founding Father of the Republic of China, was distressed and set up the Revive China Society in Honolulu with the vision of rescuing the Chinese nation, proposing “Dispelling Manchurians, Restoring the Chinese Nation, and Establishing a Republic.” This revolutionary organization contained roughly 20 to 30 members only in the beginning. However, our Founding Father never gave up the tireless efforts even though the revolution had failed 10 times. Eventually, the first Republic in Asia – the Republic of China – was founded 18 years later. History has taught us: Where there is a will, there is a way. There are no adverse circumstances in the world that we cannot conquer if we are unified. For 114 years, the KMT has grown by conquering many difficult tasks, including founding the Republic through revolution, putting down warlords, defeating Japanese aggression in the World War II, safeguarding Taiwan from Communist rule, and rebuilding Taiwan. The KMT has always been standing side by side with the people at every critical historical juncture to break through perilous situations.

Particularly right here, I would like to thank Chairman Wu for his outstanding leadership in leading the unified party to win the January 12 Legislative elections and the March 22 Presidential election this year. The Blue sky is back and the KMT has returned to power.

To govern the country is absolutely not a matter of joy, but the beginning of duty. We must humbly engage in introspection. We must not forget the difficult times over the past 8 years in opposition. We must not fail to keep our promises to the people. We must build Taiwan into a better place with greater hope.

The task for this Extraordinary Meeting is to revise the Party Charter in order to speed up rejuvenation of the KMT and to proceed with needed restructuring of the Central Standing Committee. We do support the party reform in unity to make the KMT younger, more active, and closer to the public.

Over the last six months, my Administration and I have uninterruptedly created internal and external circumstances beneficial to Taiwan’s development despite the uncooperative overall situation. Although some comrades have worries and suggestions, some are uncertain about the separation between the Administration and the Party, and some are anxious about the problem of dividing first- and second-front lines, I would like to assure everyone that democracy is party politics. The Administration will not, and shall not, separate from the Party.

Chairman Wu and I have reached a consensus. There should be a distinction between the Administration and the Party, but both should cooperate, not split. I would also like to stress that I am at the second-front line when facing the Legislative Yuan because I am not Premier, but I am at the first-front line responsible to the people because they have elected me as President. Therefore, my Administration and I shall shoulder the eventual political responsibility that is the basic spirit of a dual-executive system stipulated in the ROC Constitution.

With regard to important policies and personnel, the process of coordination among the Presidential Office, the Executive Yuan, and the Party has significantly improved over the past month or two. Chairman Wu just mentioned earlier that the cooperation between the Administration and the Party has improved, and I would take this opportunity to thank the efforts of Chairman Wu, Secretary General Wu Den-yi, KMT legislators and the Administration for their cooperation with division of labor.

Of course, I know that some people have been concerned about non-KMT members serving in either the Cabinet or other governmental agencies. Please put your mind at ease as the KMT Administration will only appoint people with talent and virtue. I have even highlighted that virtue is more important than talent. I would like to assure everyone that all key posts are still held by KMT members, and whoever joins the KMT Administration shall carry out KMT policies thoroughly.

I have traveled around the country recently, and many citizens have kept complaining about the investigation into the former President Chen Shui-bian family’s corruption cases by the Special Investigation Unit (SIU) of the Prosecutor General’s Office. People have complained that the prosecutors are too slow, passive, insincere, and even raised doubts as to our resolve to prosecute corruption.

I want to emphasize that the fight against corruption has been my consistent character, and it will never change. Being President, I will not interfere with the investigation and the justice system, but my determination to eliminate corruption from the government will never change. When the justice system needs my help, I will fully cooperate with it. With respect to Chen Shui-bian’s State Affairs Fund case, after assuming office on May 20, the Presidential Office immediately sent an official communication to the SIU stating that, in accordance with relevant laws, the prosecutors could use those relevant dossiers classified as “top secret.” Later, I voided the classification of those documents which had been improperly classified “top secret” by former President Chen to pave the way for the smooth investigation into the State Affairs Fund case. I have done whatever the law permits as a President, but I will not interfere with the justice system. I must solemnly uphold my duty because the government must defend the independence of the justice system and of the judiciary. This is our commitment to the people to establish a society with the rule of law. We will not break this vow and it will never be changed.

In little over 6 months in the past since assuming office, the Administration and I have not been slack on even a single day, and we are competing with time. Our economic situation has been seriously hit by the global financial crisis, and we understand that the livelihood of ordinary people has become tougher. The Administration has prepared itself in every aspect to inspire people, to improve economic circumstances, and to restore Taiwan’s prosperity.

Here, I would like to give a little bit of explanation. I think that every one of you has noticed that the inflation has been kept under control because the government has adopted appropriate measures against it during a period when oil prices surged and then dived. The average inflation rate from January to August was 4.3%. It fell to 4.1% in September. Now, it is less then 3%. The inflation rate will be controlled below 2% next year. One thing important I need to point out is that when banks went bust one by one abroad due to the global financial crisis, Premier Liu immediately announced a deposit guarantee scheme to prevent runs on banks. It worked well in stabilizing the banking system in Taiwan. We should give Primer Liu applause.

However, the stabilization of the financial system does not necessarily mean that we can prevent an economic slowdown. On Nov. 20, the Directorate-General of Budget, Accounting and Statistics (DGBAS) released a report, saying that Taiwan’s GDP in the third quarter contracted to -1.02% from a year earlier. The DGBAS also forecasted that the economy would also have a negative growth in the fourth quarter this year and the first quarter of next year. This means that the economy will have to be revived through investment and consumption. Our export growth has diminished because our main trade partners, the US and European countries, have gone into recession. In fact, as early as last year, we noticed that the public investment under the DPP government over the past eight years had contracted. That was why we proposed “12 Pro-Taiwan Projects” on Nov. 30, 2007. If the budget proposals can be passed for the year 2009, it is estimated that a total of NT$ 3.9 trillion will be pumped into the economy. This corresponds well with the view of Nobel economics laureate Paul Krugman. That is, when the economy is in recession, we need to adopt fiscal polices to stimulate the economy. We will have to expand government spending in areas such as public infrastructure to boost domestic demands. So, what the government has done is in sync with the mainstream economic approach.

Every one of you knows well that Taiwan holds US$ 280 billion in foreign exchange reserves. Meanwhile, our foreign debt remains at very low level. The savings rate in Taiwan is at 29.5%, which is exceptionally high among countries whose per capita income is at the level of US$ 19,000. In the US, the savings rate stands at around 2%. Sometimes, it is even negative. Basically, the inflation here has been kept under control. Therefore, at this moment, the government will have to provide necessary assistance to enterprises, big and small. The government will have to bail out those enterprises that have much to do with national well being through every kind of endeavor. The government has proposed a series of economic stimulus plans to boost the economy, including a NT$ 82.9 billion shopping coupons program and a NT$ 400 billion infrastructure proposal. It is estimated that these plans will increase the GDP by 1.64%. The government will send these proposals to the Legislative Yuan for review next week. I hope that the ruling and the opposition parties, regardless of political orientation, Blue or Green, can work together to save the economy.

On the issue of clean government, we have found that people felt rather disappointed with the performance of the out-going DPP government. Now, we have come to power and must reflect upon the meaning of the famous saying “power tends to corrupt and absolute power corrupts absolutely.” Therefore, those involved in corruption cases shall be investigated, regardless of his or her political affiliation. When I learnt that some former government officials were under investigation or were detained incommunicado by prosecutors for their involvement in some corruption cases, I felt upset. These corruption cases have been an admonition to me and I am not happy just because they got caught. I urge the public to stay calm and let the defendants receive a fair investigation or trial. We are a country under the rule of law and we must act like citizens living in such a country.

To promote a clean government, we should prevent corruption from the beginning. We should not feel happy just because the prosecution is investigating a high-profile big case. Rather, we should prevent this kind of corruption case from happening. Therefore, it is more important to prevent crimes than to investigate crimes. We are the ruling party now and have the state power. We should be more cautious than anybody else in exercising that power so that it will not be abused. This is what we have insisted on.

Let me stress this again. No matter who breaks the law, Blue or Green, he or she shall be brought to justice. I, as President, will never interfere in the investigation by prosecutors. I will never put my hand in the judiciary. I’ve told the director of the Investigation Bureau, director-general of the National Police Agency and Military Police commander on various occasions that if anybody found that I myself or my family member was implicated in any crime, you did not have to report the information to me, but to the prosecutors.

As President, I have the responsibility to defend the sovereignty and dignity of the Republic of China. The ROC is a sovereign country. The future of Taiwan shall be decided commonly by the 23 million people on Taiwan. On this there is unwavering consensus. Please do not worry about it. I will insist on and fortify Taiwan’s status, which will not change with the improvement of cross-Strait relations.

I’ve mentioned several times that Mainland China is, of course, a threat to Taiwan. 1,400 guided missiles are targeted at Taiwan. It is a threat, of course. However, there are also opportunities. Our trade volume with the Mainland stands at NT$ 130 billion. This provides opportunities. We need to minimize threats while maximizing opportunities. We will conduct cross-Strait relations under the ROC Constitution and the principles of “no unification, no independence, no use of force” and “putting Taiwan first for the benefit of the people.” By doing so, I am sure that our sovereignty and the well being of Taiwan people will be amply ensured.

If you examine the four agreements signed by the SEF (Straits Exchange Foundation) and ARATS (Association for Relations Across the Taiwan Strait) on direct air transportation, maritime transportation, postal cooperation and food safety, you will notice that they all comply with the principle of “All for Taiwan, all for the people.” Which of the four agreements weakened our sovereignty or sold Taiwan’s interests? Not a single one! Many farmers, fishermen, and people in the business circles all expressed their support for our policy with a loud voice when we visited their hometowns and places of business. Opinion polls conducted by both official and private agencies all showed that 65% to 80% of the respondents supported the four agreements because they were beneficial to Taiwan.

In addition, the world felt relieved as a result of the signing of the four agreements and the success in holding the highest-level consultations across the Strait so far in Taiwan. Even religious leaders, such as the Pope, expressed support for it. I can tell all of you here, we are doing the right thing, and what we have done is beneficial to the people in Taiwan and around the world.

As to foreign affairs, we have pushed for a policy of “modus vivendi” after assuming office and received positive responses from many countries because the international community all welcomes the promotion of peace, the relaxation of tension and the promotion of cooperation across the Taiwan Strait.

The DPP administration had implemented the so-called “cut-throat diplomacy” over the past eight years of their rule, adding three diplomatic allies while losing nine. So it actually lost six diplomatic allies. The “cut-throat diplomacy” worsens our international situation which have been very difficult already. Therefore, what we have to do now is as follows: First, we have to abandon secret diplomacy out of the regular government system. We must never again allow a diplomatic sandal like the Papua New Guinea case to occur. Second, it is not necessary for us to engage in the high profile “head-of-state diplomacy” because it has proven to be ineffective and a waste of public funds. Third, and most important of all, we must prohibit the implementation of any futile and counter-productive policies in the future.

If both sides across the Taiwan Strait avoid confrontation and cooperate with each other in the international community, it would not only ease cross-Strait tensions, but also improve the international image of both sides. So it is necessary for us to consolidate the relations with our diplomatic allies, as I did during my state visit to Central and South America in August. We will continue to push for cooperation projects with our 23 diplomatic allies, and we have sent them a clear message that the détente across the Taiwan Strait will strengthen our cooperation with them, but not jeopardize their rights and interests.

We also stress that the aim of “modus vivendi” is for the two sides of the Taiwan Strait to agree that neither side should strive to establish formal relations with those states having diplomatic ties with the other side. This is a crucial policy of ours, which has the support of both our allies and other states with which we do not have formal relations.

Our international space, of course, has been squeezed still. How to work to expand our international space is an important policy direction for us to strive for. We have adopted a different approach regarding our participation in the United Nations in September. We do not intend to join or return to the UN under any name, but we hope that the right of Taiwan to participate in the activities of the specialized agencies of the UN can be fully guaranteed. At the same time, we also continued to purchase defensive weapon systems from the United States. KMT honorary Chairman Lien Chan also participated in the APEC Economic Leaders’ meeting on behalf of the chief of state of the Republic of China. So, we have achieved three things altogether, including the improvement of cross-Strait relations, the increase of our international space, and the strengthening our national defense through military procurement from the U.S.

When it comes to human rights and the rule of law, a series of recent large-scale protest rallies have resulted in violent incidents in which both protestors and police officers were injured. Some people think that the police used excessive force to enforce the law, and some think that the protestors exercised their rights illegally and violently. I think that the government should protect the freedom of the people. The people’s right to assembly and march is guaranteed by our Constitution. It is not a gift from the government. I have stated long time ago that we can amend the Assembly and March Act. As a matter of fact, permission has been granted to hold assemblies and marches 99.8% of the time. In other words, most assemblies and marches have been approved, so it is already the so-called “principle of general approval.” I also support amending the Assembly and March Act to adopt “the principle of filing prior reports.” The Executive Yuan has also proposed its own version of such an amendment. However, we have to understand that the outdoor assemblies and marches (indoor assemblies require no filing of prior reports) basically pose certain threats to the social order and require some restrictions. Under such principles, on the one hand, we hope to protect the rights of assemblies and marches guaranteed by the Constitution; on the other hand, we also hope to maintain social order. Seeking an appropriate balancing point, we support switching “the principle of general approval.” to “the principle of filing prior reports.” We agree to amend the Assembly and March Act on the basis of above-mentioned two considerations. We believe that we can have a perfect system for holding assemblies and marches by the people through our legislature.

Finally, we gave encountered a financial crisis which has not been seen in a hundred years. We should not be afraid. Taiwan has experienced financial crises before, including two oil shocks and an Asian financial crisis, and we overcame all of them in the end. Our Vice President Vincent Siew was the man at the helm during the Asian financial crisis. Therefore, we have experiences. As long as we keep our faith and maintain peace, we can achieve success rapidly by adopting dynamic strategies.

Lastly, I want to thank Chairman Wu Poh-hsiung and all comrades in the party for their trust and support for the administration. We will remember the expectations of the people and the party. We will unite tightly with the party to revive our economy, stabilize our country and make the relationships across the Taiwan Strait more peaceful. We understand people’s suffering, so we will continue to do our utmost to create benefits, eliminate corrupt practices, overcome difficulties, and rebuild prosperity. Thank you!

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