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President Chen's National Day Message "Faith in Democracy, Faith in Reform, Faith in Taiwan"
2003-10-10

Distinguished Guests, Colleagues, Ladies and Gentlemen:

Good morning!

Today marks the 92nd National Day of the Republic of China. We are gathered here, irrespective of our titles and political affiliations, to celebrate our nation's birthday and express our best wishes to the future of Taiwan.

Not long ago, one of Taiwan's internationally renowned performing arts troupes--the Cloud Gate Dance Theatre--celebrated its 30th birthday. Since its inception in the early seventies, Cloud Gate has come a long way, conquering countless difficulties and setbacks with sweat and tears, in its emergence from obscurity. The group's resolve and the support of many people finally enabled Cloud Gate to harvest its achievements and rewards after 30 years.

The story of Cloud Gate mirrors the history written by the people of this land. Both stories tell of bitterness and hardship, but the perseverance and dedication of the protagonists touch the heart. In the classic Cloud Gate work Legacy, we bear witness to the arduous trials of Taiwan's first pioneers, from the perilous crossing of the sea, to the taming of the wilderness with blood and tears, and finally the happy celebration of their harvest. If we look at our own history over the past three centuries, or three decades, or even the past three years, and in so doing come to better understand the people of Taiwan--the challenges they faced, the faith they held, and the efforts they made--then we will see that the two stories are really much the same.

Centuries ago, Taiwan's early pioneers crossed the dark and stormy waters of the Taiwan Strait to find a new safe haven and start new lives. Similarly, over the past three years, Taiwan has seen the old century give way to the new, and a new government administration replace the old. At the same time, we have been hard hit by a multitude of challenges within and beyond our borders, including global economic downturn, terrorist attacks, the war on terror and the US war against Iraq, and the SARS epidemic. It could be described as the turbulent convergence of cross currents. This stormy convergence has brought together the old and new, the weak and strong, in a juxtaposition of crises and opportunities. Yet, through it all, we have lost neither our confidence nor our sense of direction.

At the beginning of this year, I proposed "economic revitalization" and "comprehensive reform" as the two highest priorities of my administration. Our goal is to change Taiwan for the better and hence provide a better life for the people. Democratic reforms are like the branches and trunk of a tree, while the leaves are the economy. We must have both if Taiwan is to grow stout of limb and full of foliage, and have prosperity and a better life for our people.

Although the first-ever transfer of power between political parties opened the window of opportunity for democratic reform, the implementation of such reforms has been a road strewn with thorns. As the new government set about removing the old and bringing in the new, seeking to carry out reforms with bold and resolute measures, we found ourselves constantly confronted by long-standing interest groups willing to go to any lengths to contain and counter our efforts. This made the new administration's work twice as difficult. In addition, pressured by time and the urgency of the public's demand for reform, we did in fact rush reforms short of proportional preparation, given the scope and depth of our efforts, which resulted in certain obstructions. However, subsequent to continuous introspection and adjustment, we have already steadied the pace of reforms.

From the perspective of structural reforms, the deepening of democracy is naturally the most important of the basic pursuits. Over the past three years, outstanding achievements have been made in the establishment of truly nationalized armed services, the institutionalization of intelligence work, the protection of fundamental human rights, the eradication of "black gold" politics, and many other areas. In particular, concrete results have been achieved in eradicating "black gold" politics, an area that the people have long abhorred. In the investigation, prosecution, and punishment of corruption and vote buying, the government has effectively demonstrated staunch determination to completely uproot "black gold" politics. We firmly believe that the only way to ensure an enhanced foundation for democracy is to completely sever the intricate ties that sustain "black gold" politics.

The people have long pinned their highest hopes on major reforms in areas such as education, the judiciary, politics, finance, and the media. These areas have now been freed from the old fetters and constraints imposed by political parties. The latitude of freedom and room for public discussion that reforms ought to have has been restored. The government has proposed policies and launched actions in response to public demands. We are confident that so long as political parties can set aside selfish interests, accommodate the diversity of public opinion, and remain committed to democracy and reform, then we can find the ideal path for carrying out all reforms.

From the perspective of economic revitalization, we have already seen a gradual series of exciting achievements thanks to the concerted efforts of the government in conjunction with the people. Since the beginning of this year, both the stock and real estate markets have grown steadily. Consumer spending grows stronger by the day. Signs of an economic recovery are readily apparent. Recent economic indicators have shown a green light for Taiwan's economy for two consecutive months, and experts predict that the indicator will continue to show a green light or better for the next half-year. Furthermore, Taiwan set two new records in terms of value for overseas orders in July and August. All of these signs indicate that Taiwan's economic recovery is gaining strength and momentum.

In August of this year, overseas investments in Taiwan reached US$350 million, a new ten-month high. Many international investment and evaluation institutions have recognized Taiwan's efforts and are optimistic about Taiwan's potential. In the global competitiveness rankings of Switzerland's International Institute for Management Development, Taiwan advanced from 7th place last year to 6th place. In the World Economic Forum's ranking of countries with the greatest economic potential over the next five to eight years, Taiwan rose from 10th place in 2000 to 3rd this year. In an August report this year, Business Environment Risk Intelligence (BERI) in Switzerland indicated that Taiwan had the 4th best investment environment out of 50 major countries evaluated.

Rankings and records are simply numbers, but these figures represent Taiwan's economic vigor and competitiveness. The rejuvenation of Taiwan's economy and this international acclaim are certainly not mere coincidence. Rather, they are the achievements of the coordinated and unheralded efforts of the government and people. The government has worked hard to promote financial reforms and deregulation, so as to further liberalize the economy, improve the transparency of industry, and lower structural risks of industrial operations. The goal is to strengthen the infrastructure for economic development and create conditions conducive to sustainable development in Taiwan. The strategies of "cultivating localization while promoting globalization" and "investing in Taiwan first" have already succeeded in attracting many multi-national companies to set up R&D centers and operational headquarters in Taiwan. At the end of October the Taiwan Business Alliance Conference will take place, which so far has drawn in more than NT$138 billion in confirmed investments. This is a concrete display by foreign investors of approval and confidence in Taiwan's investment environment and national competitiveness.

These are just a few of the many concrete accomplishments and records that bear evidence to the steadfast implementation of the government's commitment to "economic revitalization" and "comprehensive reform." They also show that the government's effectiveness and ability to implement reforms are able to bear scrutiny. I would like to reemphasize that "economic revitalization" and "comprehensive reform" represent two sides of the same coin. Only steady and continuing implementation of reforms can sweep away the accumulated ills of the past and allow us to quickly and effectively promote the transformation and upgrade of Taiwan's political and economic environment.

If "economic revitalization" and "comprehensive reform" are the two sets of wheels propelling Taiwan's march forward, then the reengineering of Taiwan's constitutional system is undoubtedly the body of the vehicle. Over the past few years, both the ruling and opposition parties and the general public have repeatedly pointed out that the current constitutional framework and the government system it mandates are insufficient to meet Taiwan's practical needs. Past constitutional amendments were restricted by special circumstances of time and environment, and were only able to address specific issues through partial adjustments. Not only was it impossible to realize a complete plan for a constitutional government, but even more so they left many problems unresolved, thus seriously undermining the quality of Taiwan's democracy and the efficiency of the government.

As the tenth-term president of the Republic of China, I have a responsibility to history. I have an obligation to confront the important issue of constitutional reform and unite our nation's 23 million people in hastening the birth of a new Constitution, so as to make Taiwan a normal, full-fledged and great democracy. For constitutional reform to succeed, we must have the integrated will of the people, a consensus among political parties, and the participation of constitutional experts. All three are indispensable. We shall not repeat the mistakes of past administrations by dominating the amendment process with one political party. In the end, the new Constitution must be submitted as a national referendum for the people of Taiwan to decide.

Looking back on the history of the 20th century, we see how the people of Taiwan--resolute in their belief in freedom, democracy, and human rights and the pursuit of truth, justice, and peace--successfully broke the shackles of martial law, and brought about open elections for all legislative seats and the direct election of the president. Finally, with the historic alternation of political party in a transfer of power, we embraced the birth of a truly democratic and free country. In the process of pushing forth democracy, what were once considered terrible political taboos have become a part of our daily lives. Thus, I firmly believe that so long as we are unswerving in our resolve to implement democratic reforms, and have confidence in the people of Taiwan, the history of the 21st century will show that our future constitutional reform will have been yet another major triumph for Taiwan's democracy.

Distinguished guests and my dear colleagues, Taiwan in the new century is now stepping across one invisible threshold after another. With the passing of each arduous test, we move closer to the final door of hope that leads to democracy, freedom, progress and prosperity. We have faith in Taiwan, because we have faith in the 23 million people of Taiwan, because we have faith in democracy and faith in reform. The power of a single person may not be able to change fate, but the collective strength of all can necessarily rewrite history. So long as every one of us has faith, I know we can do it.

In closing, I would like to say happy birthday to the Republic of China and express best wishes for great prosperity for our country. Distinguished guests and colleagues, you have my warmest wishes for good health and success in all your endeavors. Thank you.

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