On the morning of June 26, President Ma was accompanied by Secretary-General to the President Timothy Chin-Tien Yang (楊進添), National Security Council Secretary-General Jason C. Yuan (袁健生), and Minister of National Defense Kao Hua-chu (高華柱), to ceremonies held at the Armed Forces Officers' Club in downtown Taipei to mark the conferral of ranks to senior officers in the army, navy, and air force. In addition to congratulating the officers and their families, the president encouraged all members of the armed forces to display the highest degree of discipline to ensure that they are well prepared for combat and command the people's respect.
In remarks, the president stated that in recent years the physical fitness of officers and soldiers has gradually improved, and the combat skills are also more sophisticated. President Ma particularly pointed to the military training received by the soldiers, the battle preparedness drills, and competence in other drills. The president remarked that when the nation encounters multiple disasters, the military has been praised for its outstanding work and served as an important stabilizing force for the nation.
President Ma stated that peace and stability in the Taiwan Strait are necessary conditions for national development. In the past, he said, the Korean Peninsula and the Taiwan Strait were flashpoints in East Asia. While the clouds of war still shroud the Korean Peninsula, the president commented, the old hostility in the Taiwan Strait has given way to peace and prosperity. He remarked that the ROC government has consistently sought, under the framework of the ROC Constitution, to maintain the status quo of "no unification, no independence, and no use of force" in the Taiwan Strait, and to promote the peaceful development of cross-strait ties under the "1992 Consensus," whereby each side acknowledges the existence of "one China" but maintains its own interpretation of what that means.
President Ma stated that since he took office five years ago, the two sides of the Taiwan Strait have signed 19 agreements and reached two points of consensus. Most recently, he said, the two sides signed the Cross-Strait Trade in Services Agreement, an extension of the Cross-Straits Economic Cooperation Framework Agreement that was signed three years ago. Taiwan's service sector, he explained, accounts for 76% of gross domestic product, and the signing of this pact will foster greater interaction among the service sectors of the two sides, which will have clear benefits for Taiwan's service industry. In addition, the president stated, the Ministry of Economic Affairs has appropriated NT$95.2 billion for the Program to Assist Industry Adjust to Trade Liberalization. President Ma stated that if any domestic industry is impacted by the introduction of services from mainland companies here, firms can apply for assistance via this mechanism.
President Ma stressed that improvement in cross-strait relations is not only supported by people on both sides of the Taiwan Strait, but also by the ROC's diplomatic allies and other nations in the region. The president pointed out that when US President Barack Obama and Chinese Communist Party General Secretary Xi Jinping (習近平) recently held discussions in California, President Obama said that he strongly supports the improvement in cross-strait relations and hopes that both sides, under the condition of mutual consensus, will continue to promote the advancement of cross-strait relations. President Ma noted that this also represents the fruits of the government's efforts over the past five years in promoting cross-strait ties, and that these efforts are supported by the United States, which is Taiwan's closest security partner. He said that this development is in the interest of all three parties.
President Ma opined that while cross-strait relations continue to improve, the nation's armed forces cannot let their guard down. In particular, he said, over the past year, sovereignty disputes, controversies over territorial waters, and the firing of missiles by North Korea are just some of the factors that have led to increased tensions in East Asia. Consequently, the nation's military must remain on alert and be prepared for any possible eventuality. It must create a military force that, while small, is also strong, specialized, and skillful. This is the best way to protect the nation and its people, he said.
President Ma furthermore stated that on August 5 last year he unveiled his East China Sea Peace Initiative. He said that the initiative was based on the principle of "provisional measures" as set forth in the United Nations Convention on the Law of the Sea (UNCLOS), and enabled Taiwan and Japan to achieve an interim resolution to a fisheries dispute that had been ongoing for 40 years. The fisheries agreement the two countries signed provides each side's fishermen immunity from the laws of the other nation in the waters covered under the pact, he remarked, which are double the size of Taiwan. The pact enables Taiwanese fishing boats to operate in the area without interference, he mentioned. Furthermore, the president said, the agreement does not prejudice the claims of either side under the UNCLOS. Therefore, the government has not sacrificed sovereignty in exchange for fishing rights, he commented.
With respect to the May 9 shooting of a Taiwanese fishing boat by a Philippine government vessel, President Ma stressed, this incident caused damage to property owned by ROC nationals and led to the death of a Taiwanese fisherman. As a result, the ROC government will absolutely not back down. It has remained steadfast, rational, and tough in making four demands of the Philippines, namely: to offer a formal apology, to provide compensation for the losses; to promptly and thoroughly investigate the incident and severely punish those responsible for the killing; and to initiate fishery negotiations between the two countries as soon as possible. If the Philippines responds to those demands in a positive manner, the ROC will be willing to rescind the 11 sanctions that it has adopted against the Philippines, he noted. The president added that in the future, regardless of whether the nation's fishermen are operating legally in economic waters or in the open seas, the Coast Guard Administration (CGA) will act to ensure their safety. He said that it is simply standard procedure for the CGA to protect the nation's fishermen and for the ROC Navy to patrol the nation's waters.
President Ma then addressed the fact that the nation's military budget has not reached the targeted level of 3% of GDP, about which some have expressed concern. He said that the procurement of weapons by the government will be timed appropriately to ensure ample funding to pay for the purchases. The purchases will be made in an orderly manner. Taiwan does not spend money just for the sake of using up a budgetary appropriation, he remarked, adding that weapons are purchased in the expectation that they will effectively bolster the nation's military preparedness. Presidential Ma also stated that since the institution of the two national defense related laws—the National Defense Act and the Organization Act of the Ministry of National Defense—an important objective of military preparedness has been "all-out defense." He encouraged all officers and cadets to effectively implement the strategic objective of "resolute defense and effective deterrence."