It is a great pleasure for me to be back in Guam. I would like to extend my appreciation to the Government of the United States, Governor Camacho, Senator Bordallo, and Chief Justice Carbullido for your gracious hospitality. On behalf of the 23 million people and the Government of the Republic of China (Taiwan), I bring with me the warmest and most heartfelt greetings to our friends in the Taiwanese community of Guam.
Last year, our delegation made a transit stop in Guam. Even though we stayed for a very short time, we have wonderful memories of our visit, as the warm hospitality of the Governor and the Taiwanese community in Guam left me deeply touched. Last October, Governor Camacho was invited to Taiwan for our National Day Celebration, which gave me the privilege to return his hospitality.
Guam is my favorite and, as Representative Lee just said, I have made more transit stops here than elsewhere and will come again next year en route to Majuro, Marshall Islands, where the Second Taiwan-Pacific Allies Summit is to be held.
As a part of the West Pacific, Taiwan neighbors Guam and the Northern Mariana Islands. All of us share in common the universal values of freedom, democracy, and human rights in addition to maintaining market economies. As Taiwan's well-being depends on the prosperity and development of the region, we have been proactively assisting the development of countries in the Pacific through a variety of multilateral mechanisms and bilateral cooperation programs. This will help us achieve prosperity in the Pacific region and a sustainable economic and trade environment that will enable our peoples to become even freer and more affluent. These are our ultimate goals for holding the First Taiwan-Pacific Allies Summit in Palau.
Peace and stability in this region are a common concern and responsibility. Guam serves as an important link in the US chain of defense for the West Pacific. Its strategic importance cannot be over-emphasized. As Taiwan's president, I would like to reiterate that Taiwan will firmly stand by the people of Guam and all other peoples that uphold democracy and love peace. Together, we can act as a fortress to guard freedom and peace in this region.
Recently, the strategic situation in the international community has been highly volatile. The heightened tension in the Korean Peninsula, global terrorism, and military conflict between Lebanon and Israel have made all of us greatly concerned. Taiwan is among the champions of freedom and democracy in the Asia-Pacific, as well as a link in the region's collective security system. As such, we are obliged to strengthen our self-defense capacities to ensure security in the Taiwan Strait, thereby contributing to the peace and stability of the entire region.
We understand the concerns of the United States on this issue. My administration has worked very hard over the past few years to reach a consensus in the Legislature so as to pass an arms procurement bill. And our defense budget next year would rise to 2.85% of GDP, growing by 33% or US$2.2 billion, and to 3% of GDP in 2008 as expected. I want to once again emphasize and promise that Taiwan will remain committed to maintaining peace in the Taiwan Strait and regional security, stability, and prosperity.
On the world stage, many conflicts and differences continue to exist. Issues regarding nuclear weapons proliferation, the Israel-Palestine conflict, North Korea, Iran, the Middle East, and the Taiwan Strait are all cases in point. These issues, however, can all be peacefully resolved through dialogue.
With regard to cross-strait dialogue, the current situation is that of a democratic Taiwan facing a totalitarian China. The checks and balances within Taiwan's democratic system will certainly keep Taiwan from causing trouble for the international community. By contrast, China's communist regime continues to expand its military power and increase the number of ballistic missiles aimed at Taiwan, making the 23 million people of Taiwan feel threatened and deeply troubled.
Our stance is very clear. Without democracy, peace will always remain unattainable. Without democracy, cross-strait governmental dialogue based on the principles of peace, equality, and dignity cannot be realized. Under such circumstances, cross-Strait issues cannot be resolved.
We want to thank the people and Government of the United States for their long-term support of Taiwan and their assistance in maintaining Taiwan's democratic way of life and economic prosperity. I would also like to underscore our gratitude to Governor Camacho and the Guam Legislature for issuing a statement and passing a resolution in support of Taiwan's bid to join the WHO this year.
I am truly delighted to have this chance to see our overseas compatriots, and greatly appreciate your taking the time to come see us. More importantly, I would like to express my gratitude for your staunch support of the people and Government of Taiwan.
Even though Taiwan faces many challenges on the international stage, we will continue to adhere to the path that we have embarked upon, that of democracy, freedom, peace, and prosperity. The recognition of our efforts from countries around the world also makes us proud.
According to the report "Global Competitiveness in 2005-2006" published by the World Economic Forum (WEF), Taiwan ranks fifth in the world in terms of global growth competitiveness, and it has ranked first in Asia for four consecutive years. In terms of technology and innovation, Taiwan is the third-most competitive economy in the world.
The Economist Intelligence Unit (EIU) evaluated the business environment of major economies around the world. It ranked Taiwan 19th in the world for 2006-2010 (Korea 26th, Japan 28th, and China 50th).
These outstanding results show that Taiwan remains highly competitive in the global arena. As long as we stay united and make our best endeavors, Taiwan should continue to enjoy the respect and status it deserves.
In recent years, ongoing democratic development in Taiwan has led to the emergence of divergent views and voices. This is a natural process in democratization. Taiwan needs to go through this process so that it can learn, grow, and flourish. We should remain confident in Taiwan's Government, trust in Taiwan's democracy and rule of law, and have faith in the wisdom and capabilities of Taiwan's people. Here, I call on all of you to continue supporting democratic Taiwan and to press for China's democratization. In doing so, you will help create a favorable environment for peaceful cross-strait dialogue.
In closing, I would like to extend my best wishes for Governor Camacho's good health and vigor in your work, and to wish Guam's Government and people great progress and prosperity! I would also like to wish all our distinguished guests and friends from the Taiwanese community the best of health and great success. Let us all join in a toast to a flourishing United States and Taiwan! Thank you!