In response to the resignation of Premier Liu Chao-shiuan, the Presidential Office stated that President Ma Ying-jeou admires the work carried out by the premier and appreciates everything the premier has done for the nation since taking office on May 20 last year. The president commented that Premier Liu has endured much criticism while carrying a heavy load, and has exhibited great courage by stepping forward to take responsibility.
The president believes that since taking office, Premier Liu has worked diligently with the interests of the people always at heart and has been keen on reform. During his tenure, relations between the two sides of the Taiwan Strait have improved significantly and Taiwan's visibility in the international arena has increased substantially. In addition to the opening of the three direct links and direct aviation ties between the two sides, the regulatory environment has been relaxed and the economy has been strengthened. This year, the ROC (Taiwan) became a party to the World Trade Organization's Government Procurement Agreement, which marks a culmination of six years of efforts. In addition, Taiwan participated in the World Health Assembly for the first time in 38 years. Premier Liu has placed great emphasis on the establishment of a social security network. In this regard, he has initiated a national annuity system, promoted a project to provide assistance to households near poverty, and implemented a labor insurance annuity system. Furthermore, during this period of economic recession, the premier has been responsible for introducing a variety of assistance measures and programs, helping to stem unemployment. In order to enhance government efficiency, Premier Liu was a strong promoter of city and county consolidation, the elevation of various local areas to a higher position in Taiwan's administrative hierarchy, as well as government organizational reform. Shortly after taking office, the premier also began actively pushing for energy conservation and measures to reduce carbon emissions in response to global warming.
Over the past year, Taiwan has been impacted by the global financial crisis and its economy succumbed to a severe recession. Premier Liu's cabinet, however, responded in a steady and pragmatic manner, introducing consumption vouchers to stimulate spending by the public. The government also reduced inheritance taxes in order to attract capital back to Taiwan. Meanwhile, a four-year economic revitalization package was unveiled, aimed at expanding infrastructure projects and promoting six emerging industries. This initiative seeks to stimulate domestic demand, help improve Taiwan's infrastructure and assist in the development of emerging industries, thereby enhancing Taiwan's competitiveness. Meanwhile, during the global financial tsunami, Premier Liu boldly announced a policy under which all bank deposits would be guaranteed, putting Taiwan in the forefront in Asia in adopting such a measure. This policy effectively stabilized Taiwan's financial situation and continues to be praised to this day. Today, Taiwan's economy is emerging from a trough and is on its way toward recovery. Economic growth in the second quarter improved 20.69% from that of the first quarter, making Taiwan one of the most rapidly recovering economies in Asia.
The August 8 flooding and mudslides triggered by Typhoon Morakot caused unprecedented and catastrophic damage to cities and counties in southern and eastern Taiwan. Over 700 people died in the disaster or are still missing. In order to demonstrate political responsibility, Premier Liu in the middle of August tendered his resignation to President Ma. The president, however, urged him to stay on. Premier Liu has been adamant with regards to resigning, however, believing that it is his responsibility as premier to bear political responsibility. At the time, the president urged Premier Liu to endure criticisms in order to see his task through, believing it important for settlement and reconstruction work to get underway. During this period, Premier Liu persisted in the face of strong criticism, resolutely staying at his post and working to stabilize morale in his team. It was only after rescue work came to an end and a foundation was created for settlement and reconstruction work that the issue of a Cabinet reshuffle was to be broached again. At the time, Premier Liu generously agreed to stay at his post and carry out reconstruction- and settlement-related work. Nonetheless, he remained firm in his determination to take political responsibility in the beginning of September.
Over the past two weeks, Premier Liu has led the heads of government ministries and agencies to disaster areas in Kaohsiung so that they could personally direct settlement and reconstruction work. Some 92% of persons in disaster areas have now been resettled in barracks and buildings normally used by the military or the Veterans Affairs Commission, helping to bring a certain degree of normalcy back to their lives. Meanwhile, between 80% and 90% of various consolation money and compensation have been distributed to the public, while over 85% of roads and bridges that were damaged have been made passable again. In addition, emergency embankment work has also been completed. Charitable organizations and the corporate sector have also responded to the call by the government by helping to construct over 1,000 permanent homes on land provided by the government for residents affected by the disaster. On August 27, the Legislative Yuan passed the Act Governing Typhoon Morakot Post-disaster Reconstruction. Under this legislation, the Executive Yuan will propose a NT$120 billion reconstruction budget. President Ma believes the reconstruction team led by Premier Liu has acted in a speedy, pragmatic and efficient manner, with the results evident to all. The Executive Yuan's Research, Development and Evaluation Commission carried out a public opinion poll among residents of disaster areas that showed that 80% of respondents are satisfied with the environment in which they have been resettled, as well as the services provided by the military and charitable organizations. The level of satisfaction with Premier Liu has rebounded to 54%. Premier Liu believes that he has accomplished his mission at this stage and he still maintains his original intention to bear political responsibility and resign from his post.
President Ma on the evening of September 6 paid a visit to Premier Liu's residence, where the two held discussions. The president with all sincerity expressed his appreciation to Premier Liu and praised him and his Cabinet for the contributions they have made. The president deeply admires Premier Liu for setting an example in taking political responsibility in his capacity as the head of the nation's administrative branch.
The Executive Yuan will resign en masse on Thursday. President Ma has decided to appoint Chinese Nationalist Party Secretary-General Wu Den-yih as premier, and Taoyuan County Magistrate Eric Liluan Chu as vice premier. Both Secretary-General Wu and County Magistrate Chu have accepted the appointments. The two individuals believe they are duty-bound to serve in these appointments at this critical juncture, and intend to do their utmost. Secretary-General Wu is expected to complete the formation of his Cabinet in the coming days, after which a formal announcement will be made.