President Wu, Mr. Paal, Mr. Yao, Distinguished Guests, Ladies and Gentlemen:
Good evening.
I am honored once again to be invited to the annual Hsieh Nien Fan Banquet by the American Chamber of Commerce, and it is with great pleasure that I join you a fourth time for this special occasion. In spite of my hectic schedule as the President of Taiwan, I have always insisted on attending this annual banquet to personally express my high regard for the chamber, to exchange views, and to convey my sincerest admiration as well as appreciation.
The chamber has acted as a bridge for communication between foreign businesses and our government. The chamber also makes clear and remarkable contributions to Taiwan's investment environment, economic development and increased Taiwan-US trade. The chamber's Taiwan White Paper not only voices foreign business concerns but also offers many valuable suggestions for our administration. In this context, the chamber is the best locomotive for strengthening Taiwan-US relations and friendship, as well as the best partner for Taiwan's economic development.
I am well aware that each of you, our most faithful partners, have expressed concerns over such issues as the investment environment, market access, protection of intellectual property rights, direct cross-strait transportation, financial reform and the recent Peace Referendum. Therefore, I would like to take this opportunity to briefly discuss Taiwan's recent political and economic development, and the issue of the referendum.
First of all, I would like to tell you that it is encouraging to see the concerted efforts of the government and private industry yielding a strong revival in economic growth and steady progress with major reforms.
According to economic indicators released last Friday, on February 20th, Taiwan's economic growth reached 5.17 percent for the fourth quarter of 2003. Moreover, the economic indicators for last December flashed "yellow-red," signaling recovery. The import and export figures in January of this year also showed signs of strong recovery despite the Chinese New Year holiday, which cut six days from normal customs operations. Exports and imports for this past January increased by 17.5 and 11.4 percent, respectively, compared to the corresponding period of the previous year. We are therefore confident that Taiwan's economic growth will hit the target of 5 percent in 2004. In fact, the successful launch of the Ten New Major Construction Projects will make it possible to achieve growth above 5.5 percent.
With regard to Taiwan's investment climate, I believe efforts such as improving water quality in the Kaohsiung area, establishing the Central Taiwan Science Park, completing the Taipei-Yilan Freeway Syue-shan Tunnel and writing off non-performing loans exemplify the efficiency and resolve of our government. Our efforts and reforms are not only reflected in recent economic growth figures, but have also been recognized by many international investment and evaluation institutions. In the global competitiveness rankings of Switzerland's International Institute for Management Development, Taiwan's growth competitiveness index ranked 6th among countries with a population of more than 20 million. In the World Economic Forum's ranking of countries with the greatest economic potential, Taiwan ranked 3rd among 80 major countries. An investment climate risk evaluation by the Swiss-based Business Environment Risk Intelligence (BERI) shows Taiwan tied with Japan for the 4th best investment environment out of the 50 major countries evaluated. Taiwan puts in an even better performance in a global e-government ranking by Brown University of the United States, taking the top spot in the world.
On matters relating to the protection of intellectual property rights (IPR), I believe that Taiwan and the US will reach the highest level of consensus yet, especially in light of Taiwan's strong economic recovery and growing knowledge-based economy centered on high technology and design. On June 3, 2003, the Business Software Alliance released a report commending Taiwan for a remarkable 10 percentage point drop in the rate of software piracy. Our performance in this regard will only continue to improve given the mutually beneficial relationship between Taiwan and the US.
In addition to Taiwan's investment and operations climate, I understand your concern over the future of the cross-strait relationship and the issue of the Peace Referendum. I am willing to reiterate here once again my pledge to stabilize the cross-strait relationship. I have repeatedly stressed that I will honor my "Four No's plus One" pledge. I have also emphasized that, after March 20, 2004, we will keep on pushing for democratic and constitutional reforms in Taiwan on the basis of the "Four No's plus One" pledge. The March 20th Peace Referendum this year has nothing to do with changing the status quo nor the issue of independence or unification. The crux of the March 20th Peace Referendum is to demonstrate the firm will and solidarity of the people of Taiwan in their own self-defense and the pursuit of cross-strait peace. This will be a historic step for the people of Taiwan on their way toward the deepening of democracy. It will also constitute an important milestone for them to stand united, saying "No" to China and voicing their advocacy for peace.
It is also my belief that, once the 23 million people of Taiwan take a firm, consistent and united stance in support of the government and the pursuit of peace, China will not venture to treat it lightly. Rather, they will face the will of the people of Taiwan and their support for the government and resume negotiations and a dialogue with us. I have no doubt that, after the March 20 referendum and my re-election, the two sides will work actively and pragmatically to pursue such issues as the establishment of a framework for cross-strait interaction and stability, the protection of investment and the opening of trade and transport.
Ladies and gentlemen: As you are well aware, Taiwan's democratic achievements and the fruits of our economic transformation are two cornerstones that will give Taiwan the impetus to stand up in the world and march toward a better future. These accomplishments constitute the most precious legacy that this generation can leave to our sons and daughters. Maintaining the status quo with regard to Taiwan's sovereignty, deepening our democratization and sustaining our economic prosperity are the common expectations of the 23 million people of Taiwan. This is also my most solemn mission that I shoulder as the leader of this country.
Ladies and gentlemen: You have witnessed Taiwan's economic and democratic developments. You have also shared our economic prosperity and democratic accomplishments. In less than one month, I am confident that you will witness once again the persistence and the solidarity of the people of Taiwan in the pursuit of democracy and peace, as well as their determination in the pursuit of reforms and ideals. I have faith that, in the not so distant future, you will also once again see Taiwan's economy take off after a thorough transformation through reforms.
Finally, on behalf of the government and people of Taiwan, I would like to express our heartfelt gratitude to the American Chamber of Commerce for your support of Taiwan. It is my fondest wish that the relationship between Taiwan and the United States will continue to grow even closer. May you all enjoy great success in your endeavors. Thank you.