Distinguished Guests, Colleagues, and My Fellow Countrymen:
Happy New Year and greetings to you all!
Today marks the ninety-fourth anniversary of the founding of the Republic of China and the beginning of a new year. At a little past six o'clock this chilly morning, many people from around Taiwan joined me in welcoming the New Year and a new dawn at the flag-raising ceremony in front of the Presidential Office.
As our national flag rose slowly in the early morning light, perhaps many of those present shared a sentiment that was occupying my mind: Whether or not we were at the flag-raising ceremony, and regardless of where on this land we might be, the 23 million people of Taiwan share a common destiny, the same joy and sorrows. Under the same sky, we strive alongside one another, weaving dreams for ourselves and for future generations. The collective aspirations of the people represent the hope and future of our country.
In 2004, we worked diligently and saw our efforts bear fruit. For this, my fellow countrymen must all feel rejoiced and gratified. At the Athens Olympic Games, we witnessed our national representatives win gold medals, and in this, there were tears of joy as well as the sweat of hard work. So inspiring were the scenes that they will forever remain imprinted in our memories. The people of Formosa share the same heritage and uphold a common "Taiwan Spirit." We should always cheer ourselves on and continue to forge ahead; support one another and never give up in the face of challenges, however formidable they may be.
Thanks to the ongoing global economic recovery, together with the joint efforts of the government and people, Taiwan's economy is expected to grow by 5.93 percent in 2004, the highest rate in seven years. There is hope that the unemployment rate, too, for the year overall will remain below 4.5 percent--the lowest since 2001. Per capita income in Taiwan was 13,995USD last year. If the economic growth rate in 2005 hits 4.56 percent as predicted, then per capita income this year could reach nearly 15,000USD. If we work a little harder, we might soon break through the 15,000USD threshold and set a new record for national average income.
In addition to the clear improvement in macroeconomic indices, Taiwan's national competitiveness on the whole continues to rise. In the World Competitiveness Scoreboard compiled by the Swiss-based Institute for Management Development (IMD), Taiwan ranked 12th in 2004, up five places from number seventeen the previous year. This performance put Taiwan among the world's top ten in the category of "most improved national competitiveness." In the World Economic Forum's (WEF) Growth Competitiveness Index (GCI)--a key indicator for predicting economic growth potential in the medium to long-term future--Taiwan moved up from number ten in 2000 to fourth place last year. We have also ranked number one in Asia for three consecutive years.
These encouraging achievements are the rewards of every citizen's efforts; even more, they demonstrate the concrete results of the government's pursuit of economic revitalization and comprehensive reform over the past few years. We have already weathered the worst of storm. Now we should have even greater confidence in the future of Taiwan; and we must have even stronger faith in reform. As we face the New Year before us, we cannot deny that the trend towards slower global economic growth presents Taiwan with competitions and challenges that will remain rigorous. Only through greater initiative, unity and action will we be able to maintain our advantage and avoid falling by the wayside.
In the area of democratic consolidation and reform, we carried out the first national referendum in Taiwan's history last year. We also succeeded with four major constitutional reforms: halving the number of seats in the Legislature, adopting a "single-district, two-vote" electoral system, enshrining the right to referendum in the Constitution, and abolishing the National Assembly. Each of these major achievements represents a pivotal step in the history of Taiwan's democratic development. We want to thank the governing and opposition parties for their efforts; more importantly, we must also attribute these accomplishments in reform to the power of the people.
We can look back on Taiwan's democratization, from the lifting of the martial law and the end of the bans on new political parties and newspapers, to the complete re-election of our national legislature, the direct election of the president, and the holding of national referenda. We can even look forward to the forthcoming constitutional reengineering project. Without the power of the people to guide and propel us forward, none of this would have been possible. This is the right path, and we will continue to walk on it with courage, until our people finally have a normal, complete, progressive, beautiful and great country.
Just recently, Freedom House unveiled its Freedom in the World 2004 report. In the "civil liberties" category, Taiwan moved up one notch, from level two to the highest rating of one, making us one of 26 nations where freedom improved. We ought to take pride in this accomplishment, and protect and cherish it.
Over the past year, Taiwan held two nationwide elections, one for president and the other to elect legislators. Regardless of the outcomes, both should be regarded as part of the regular process of democratic development. Democracy is precious, because no matter which party or candidate wins, in the end they should all work towards a final victory for the people. Now that the heated campaigns have ended, the people need calm and rest, while the nation needs solidarity and stability.
The choice of the people sent a clear message: The governing party must rule with humility while the opposition parties be rational in providing oversight. Taiwan's society does not need bifurcation between the blue and green camps, nor does it need ongoing confrontation between the governing and opposition parties. The governing and opposition parties each have their own roles to play. Fair competition, cooperation rather than confrontation, checks and balances, and solidarity rather than infighting--these are now the ardent expectations of the people of Taiwan.
I myself identify very strongly with the voice of the people, and fully grasp where my duties and responsibilities as president lie. Today is the beginning of a new year; I would like to hereby advocate openly that Taiwan must head toward a new era of consultation and dialogue.
The two major elections last year did not result in any clear change in the domestic political landscape. Nevertheless, the people certainly do not wish to see a continuation and recurrence of the political impasse, confrontation and infighting of the past four years. Therefore, we must find a way to avoid repeating the same mistakes again, stop the internal squabbles, and end the political chaos. This is not just the common duty of both the governing and opposition parties, but also the primary responsibility of every political leader.
Politics is an art of possibilities. In the democratic and pluralistic society of Taiwan today, it is possible to clearly express opinions and positions through incisive confrontation and unrelenting resistance; however, this often leads to an impasse where no compromise or conclusion is possible. While the governing and opposition parties must be accountable to their supporters, each should try to take a step back, understand the others, and empathize with them. They should exhibit tolerance of each other and sincerity in negotiations. The vast majority of people would be pleased to see the governing and opposition parties take an initial step toward reconciliation and cooperation. Consultative dialogue between the governing and opposition parties cannot be for the exchange of power and position, but rather for social stability, the future of the nation, and the welfare of the people. Inter-party consultations could be conducted openly, and would be subject to scrutiny by the people and their oversight through public opinion.
Of course, we fully understand that in order to create a new and stable environment based on rational consultation and sincere dialogue, the ruling and opposition parties should start with areas on which consensus has already been formed. For instance, the governing and the opposition parties all appealed to their constituencies before the legislative election by pushing for ten priority bills and legislation of nine major laws. These proposals contain policies and bills in common that the people earnestly expect to see realized. These include tax reforms, a balanced budget, implementation of a national pension, sustainable management of National Health Insurance, review of educational expenditures and the tuition burden, military service reform, privatization of state-owned enterprises, the budget for major arms procurements, reducing the gap between rich and poor, and improvements in cross-strait relations. We believe that these policy and legislative proposals would make good starting points for the engagement of rational consultation and sincere dialogue among political parties.
To achieve this goal, I would like to wholeheartedly invite leaders from the governing and opposition parties, as well as representatives of the executive and legislative branches, to meet as soon as possible to negotiate each of the above-mentioned policies and legislative bills of public concern. Through rational dialogue and policy debate, proposals and positions of different parties would be respected, with efforts being primarily devoted to seeking common ground despite differences. Eventually, through the consensus of political parties, policies and bills would be implemented and enacted by the executive branch and the legislative branch, thereby meeting national needs and public expectations.
We expect to see a win-win situation in future relations among the governing and opposition parties as well as the interaction between the new legislature and cabinet. Only the vigorous development of the governing and opposition parties can ensure sound party politics. The executive branch has to be strong, so does the legislative branch; the governing and the opposition parties have to be robust; and citizens of this country must be tenacious, more so than myself, if Taiwan is to be a great country.
According to the Constitution, after the cabinet resigns, the President should appoint a new premier and form a new cabinet. During this process, I will listen attentively to the voice of the people and to the opinions of the governing and opposition parties. As long as it will benefit the stability of domestic politics, welfare of the people, harmony among ethnic groups, and cross-strait peace, anything can be open to reconciliation or cooperation between the governing and opposition parties. In the future, the new cabinet should enhance its functionality in consultation and dialogue, such as those between the executive and the legislative branches, among the governing and opposition parties, and with the people at the grassroots level. Special emphasis should be placed on areas such as issues that concern social wellbeing, the care for the disadvantaged, and the provision of welfare. As we strive to reinvigorate the economy and upgrade national competitiveness, we must also attend to and seek fairness and justice in society.
Distinguished guests and colleagues, we stand here today as the steward of the faith and trust our people have bestowed upon us. During the election, there might have been a Pan-Green and Pan-Blue divide; but, with the election now behind us, there should only be "one country and a unified people" here in Taiwan. Confronted by the capricious and ephemeral nature of international affairs and ever so fierce global competitions, especially with the escalating belligerent rhetoric and military intimidation from the other side of the Strait, we must stand in solidarity to face these external challenges, so as to ensure the welfare and happiness of our people and the future of our country.
Over the past four years, we have, on many occasions, extended olive branches of peace to the other side of the Strait, actively seeking to establish new basis for the resumption of cross-strait dialogue and consultation. Just this past year, we have repeatedly expressed our sincerity and goodwill for the promotion and normalization of cross-strait relations, as in my inaugural speech of May, National Day Address, and the ten-point conclusion of November 10 at a high-level national security meeting. However, regrettably, despite all our efforts, the other side remains reluctant in giving up its military intimidation against Taiwan. Moreover, the other side continues its saber rattling and suppression of Taiwan on all fronts. Now, the Chinese Communist Party (CCP) attempts to unilaterally arbitrate and sanction cross-strait issues, concocting a so-called "legal basis" for its military invasion of Taiwan. Such actions will not only unilaterally change the status quo of peace in the Taiwan Strait, but will also pose the greatest threat to regional stability and world peace.
We once again urge the CCP authorities not to under-estimate the will of the Taiwan people in defending the sovereignty, security and dignity of the Republic of China. The sustainable and peaceful development of cross-strait relation not only echoes the collective longing of peoples on both sides of the Strait, it also aligns with the expectations from the international community. We will continue to adhere to our policy of "keeping a firm stance while moving forward pragmatically" in dealing with cross-strait issues. Even in the face of the unilateral and aggressive actions by the CCP, we will "take hold of the intent, and not act on impulse." In addition, we will proceed in a manner that is "deliberate and not backward, steadfast and not hasty," to form a "Committee for Cross-Strait Peace and Development," to forge an internal consensus in Taiwan, and actively promote and establish a peace and stability framework for cross-strait interactions.
I would like to express my appreciation for our international allies, including the United States and Japan, for their long-term support for the people of Taiwan and for their concern about peace across the Taiwan Strait. The relations Taiwan has cultivated with the international community draw strengths from not only a "value alliance" of freedom, democracy and human rights, but also the acquiescence and mutual understanding developed from long-term cooperation. However, in light of tremendous pressure and suppression in the international arena from the other side, Taiwan's foreign diplomacy faces enormous challenges. Sometimes progress can only be made tacitly, and not publicized. Other times, we must bear the weight of our responsibilities alongside the indignation of unfair slanders. While constructive criticisms are always appreciated, unfounded speculation and distortion, or the denigration of the amity and friendship Taiwan shares with our international allies, are not. Fundamentally, we have absolute confidence in the future expansion of Taiwan's international space, as well as our relations with the United States and Japan.
The severe earthquake and tsunamis in South Asia have caused a tragic catastrophe and stirred compassion in our hearts. Our government and people should act on the spirit of feeling other's pain as one's own, and contribute to our utmost ability to the international relief efforts. In addition to the urgent demand for rescue work and medical aid, there will be an enormous need for materials and manpower in future reconstruction. We should continue to express our concern and bravely give ourselves to the relief efforts so that the countries and people impacted by the disaster may feel the compassion and kindness coming from Taiwan.
My dear colleagues and fellow countrymen: There is only one Taiwan, and there is only one future for our nation. The responsibilities and goals that we hold in common are to "unite Taiwan, stabilize cross-strait relations, seek social harmony, and reinvigorate the economy." Walking in humbleness and adopting a pragmatic approach, I would like to take the lead in the pursuit of a "Taiwan in unity." In the year ahead of us, let's listen carefully to the voice of the people and work together toward a new and stable environment of comprehensive consultation and dialogue. We should stand together to meet new challenges and create greater opportunities for Taiwan.
In closing, I would like to wish the Republic of China great prosperity! May all my colleagues and compatriots at home and abroad enjoy a Happy New Year!