Ms. Jane Rickards, Taiwan Foreign Correspondents' Club (TFCC) President;
Ms. Vanessa Yea-Ping Shih (史亞平), Vice Minister of Foreign Affairs;
TFCC members and guests;
Ladies and gentlemen:
Good morning!
I'm really very happy to be here today. I always look forward to meeting TFCC members from different countries around the world, as well as the dialogue that's sure to follow.
To start off, I would like to talk about the developmental status of the Republic of China in various areas, and take a look ahead to see what the future holds.
When I took office in 2008, our country was facing serious challenges in terms of economic development, cross-strait relations, and foreign relations. For the Taiwan economy, our most urgent task has been to find a viable path for the future; in terms of cross-strait relations, to find a modus vivendi for peaceful coexistence; and in international relations, to find a viable path forward. So my administration set three clear objectives: First, a prosperous Taiwan; second, peace in the Taiwan Strait; and third, friendly international relations.
Reflecting our efforts to create a prosperous Taiwan, last year our economic growth rate hit a three-year high of 3.74%. That was better than Singapore, Hong Kong, and South Korea. It was also the first time in 16 years that our economic growth rate ranked first among Asia's "four little dragons." Last year, exports also reached a record high of US$ 472.8 billion.
Foreign trade has always been the lifeblood of Taiwan's economy, and exports account for 70% of our GDP growth. So over the past seven7 years, we have made every effort to help Taiwan companies make good global trade connections. To do that, we have promoted trade liberalization, and sought economic and trade alliances; we have worked to maintain contact with multiple countries and then conclude agreements with them one after another; and we have actively pursued economic cooperation agreements with our major trading partners.
The first major agreement was the Economic Cooperation Framework Agreement (ECFA) with mainland China in 2010. We then signed an investment agreement with Japan the following year, an economic cooperation agreement with New Zealand (ANZTEC), and an economic partnership agreement with Singapore (ASTEP) in 2013. We also resumed negotiations with the United States under the 1994 Trade and Investment Framework Agreement (TIFA). These achievements show how determined we are to promote economic and trade liberalization.
Now let's look at the economic impact of some of these agreements:
After the ANZTEC took effect in December of 2013, New Zealand exports to Taiwan grew by 18% in 2014, and Taiwan's exports to New Zealand also grew by 6%.
The ASTEP took effect in April of last year. So between April and the end of 2014, when compared with same period from 2013, Taiwan's exports to Singapore grew by 9%, and Singapore's exports to Taiwan increased by 5%. So the trade figures clearly show that these economic cooperation agreements—through trade creation—have already had a positive impact on the economies of both parties.
Currently, however, our coverage rate under existing free-trade agreements (FTAs) is only about 10%. That is far below Japan's 18%, South Korea's 38%, and Singapore's 77%. So we need to continue to expand our participation in regional economic integration.
So in the past few years, the Republic of China has actively pursued participation in regional integration mechanisms like the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). The trade volume between Taiwan and the signatories of those two major economic agreements accounts for 35% and 57%, respectively, of our total export volume. If you subtract the overlapping amounts from the seven countries that are signatories of both agreements, then in aggregate we are actually talking about 70% of our total trade volume. These facts clearly show how important—and urgent—it is for Taiwan to participate in the TPP and the RCEP.
The year 2015 is important because the second round of TPP negotiations will be held, and the RCEP plans to open membership to non-ASEAN nations. As you know, the RCEP is basically an ASEAN-centered mechanism. So this year, it is critical for the ROC to go all-out to participate in regional economic integration. We will continue to express to all the TPP and the RCEP signatories that we want to become a part of what they are doing. And to garner more support, we will continue our market liberalization and deregulation efforts to establish a legal environment that reflects international standards.
And speaking of the cross-strait situation, I am convinced that ensuring the peaceful development of cross-strait relations is an important key to stability and prosperity throughout the Asia Pacific region. Since I took office in 2008, under the framework of the ROC Constitution, I have been committed to maintaining the cross-strait status quo of "no unification, no independence, and no use of force" in the Taiwan Strait. And based on the 1992 Consensus of "One China, respective interpretations," I have also remained committed to the principle of "putting Taiwan first for the benefit of the people" while promoting peaceful cross-strait development.
In the past seven years, the ROC and mainland China have signed 21 agreements, and reached consensus on two issues. During that same period, mainland Chinese travelers have made over 14 million visits to Taiwan. Last year alone, Taiwan received almost 4 million mainland Chinese visitors. Before I took office, we had 823 exchange students from the Chinese mainland. Now we have about 40 times more—about 32,000 mainland students, which includes exchange students and degree students. So during my term of office, the situation in the Taiwan Strait has seen unprecedented changes, and we now have more stability—and more peace and prosperity—than we've seen in the past 66 years.
Last year, the ministers in charge of cross-strait relations from each side of the Taiwan Strait also met three times, calling each other by their official titles, thereby establishing institutionalized communication mechanisms between them. That was also a significant step in the peaceful development of cross-strait relations. But even more—it was a concrete example of putting policy into practice. What policy? The policy is "mutual non-recognition of sovereignty, and mutual non-denial of governing authority." (主權互不承認，治權互不否認)
These positive developments in cross-strait peace and stability also made it possible for the United States to have amicable interactions with the ROC and mainland China at the same time. That kind of progress was also unprecedented. And recently, US Assistant Secretary of State for Asia and Pacific Affairs Daniel Russel offered public praise for the ROC government's substantive achievements in promoting cross-strait relations.
As we look to the future, I firmly believe that, in the spirit of equality and reciprocity, the two sides of the Taiwan Strait can continue to work together in a pragmatic partnership to ensure cross-strait and regional peace and prosperity.
My term of office has also been marked by our pragmatism in seeking out a viable path for ROC diplomacy. As part of that path, we uphold "dignity, autonomy, pragmatism, and flexibility" in our interactions with countries all over the world, gradually building strong relationships. And the clearest example of those strong relationships lies in the number of countries that now grant our citizens visa-free courtesies or landing visas. Before I took office, there were 54. Actually, in the terms of the two previous presidents, the number remained 54. Now there are 140 countries that offer us visa-free treatment or landing visas. That is an addition of 86 countries or territories. And before I took office, we had youth working holiday agreements with only two countries. But we now have agreements with 13 countries.
Turning to participation in activities sponsored by international organizations, we have also made progress. Last year was the sixth consecutive year that a ministerial delegation from Taiwan attended the WHA, the World Health Assembly. When we first attended that in 2009, that was after an absence of 38 years. And after an absence of 42 years, Taiwan was also invited to attend the assembly of the International Civil Aviation Organization. These are some of the concrete results of our "viable diplomacy" policy.
In the past few years, territorial disputes have also caused tensions in the East China Sea. So back in August of 2012, I proposed the East China Sea Peace Initiative, which is based on the idea that "while sovereignty over national territory cannot be compromised, natural resources can be shared." That Initiative calls on all parties to resolve disputes in the East China Sea by peaceful means.
So we have been more than just advocates for peace. We have also taken our ideas and put them into practice. So on April 10, 2013, we concluded a fisheries agreement with Japan that resolved fishing disputes that had been simmering for over 40 years since the time when I was in college. And since the agreement was signed, both sides have caught more fish and had almost no disputes. And we have also received high praise from the international community. The day after tomorrow, that fisheries agreement will have been in effect for two years.
In addition, we've also taken the concepts behind the East China Sea Peace Initiative, and applied them to the South China Sea. By doing that, we were able to conduct fisheries talks with the Philippines, and reach a consensus on three points of dispute regarding maritime law enforcement. The three points are: first, no use of force is allowed; second, mutual notification before any law enforcement action; and third, in case detention or arrest occur, prompt release should be done.
So in the bigger picture, from the Taiwan Strait to the East China Sea, and from the East China Sea to the South China Sea, we can see that over the past few years, the Republic of China has truly become a regional peacemaker.
But our role doesn't stop there. Even as we've been expanding trade and diplomatic relations, we've also been fulfilling our role as a provider of international humanitarian aid. In that role, we're ready to extend a helping hand to the international community, and provide timely aid wherever it's needed.
So when the Great Northeast Earthquake struck Japan four years ago, and when Typhoon Haiyan, which is called Typhoon Yolanda in the Philippines, struck the Philippines and Palau in 2013, Taiwan immediately sent aid, both material goods and financial donations. And in the wake of the Ebola outbreak in Africa last year, the Republic of China donated 100,000 sets of personal protective equipment to affected areas in West Africa. Then last December, we also donated US$1 million to the Center for Disease Control Foundation—the CDC Foundation—in the United States as part of an international fund to fight the virus. On March 18 of this year, with the cooperation of the United States, Taiwan also set up a training course designed to help prevent the spread of infectious diseases. The Philippines, Malaysia, Singapore, Indonesia, and Vietnam will be sending personnel to Taiwan for training.
For refugees in conflict-stricken areas of the Middle East, the Republic of China government has also donated over 700 prefabricated houses, as well as rice, to help the victims make it through the winter. These efforts reflect the spirit of compassion that lies at the heart of humanitarian aid.
Looking ahead, we will continue to promote "viable diplomacy" to leave the vicious cycle of the past behind, and allow our cross-strait and international relations to become part of a virtuous cycle. Taiwan's "scorched-earth" diplomacy is now a thing of the past, and we can embrace a new era of viable, peaceful diplomacy.
For the Republic of China, this year has a special historical significance, as it marks the 70th anniversary of victory in the War of Resistance Against Japan. In Republic of China history, this campaign will go down as the most protracted. It also had the broadest theater of engagement, and involved the most combatants. It also led to the greatest sacrifices, with over three million members of the military and more than 20 million civilians losing their lives.
Due to the ROC military's relatively outdated weapons and equipment, during the eight-year long War of Resistance Against Japan, our troops shed much blood. But there was no surrender, and no compromise. And yet, ROC troops held 800,000 modernized Japanese forces in check. Especially prior to Pearl Harbor, for four long years, ROC troops struggled alone to resist the Japanese, preventing them from reaching Australia, or invading India and continuing on to the Middle East to join forces with the Germans. Thereafter, in the latter four years of the War of Resistance, the continuing Chinese-Japanese conflict was an important factor that allowed the Allied forces to operate in both the European and Asian theaters, and eventually win. The ROC's bitter eight-year War of Resistance thus made a key contribution to the Allied victory in World War II.
The ROC government will be holding a series of memorial activities to commemorate the 70th anniversary of victory in the War of Resistance Against Japan, and we have invited the descendants of some foreign nationals who played a key role during that period to participate. One example is Thomas Rabe, grandson of German businessman John Rabe, who helped hundreds of thousands of Chinese nationals during the Nanjing Massacre in December of 1937. We have also invited descendants of General James Doolittle, a pilot who carried out daring air raids on Japan in 1942, barely four months after Pearl Harbor, and Nell Calloway, the granddaughter of General Claire Lee Chennault of the Flying Tigers.
While I do feel that historical mistakes may be forgiven, historical truths must not be forgotten. So the history of that period when my countrymen and women tasted the bitter fruits of war, and made tremendous sacrifices, compels the Republic of China today to pursue the path of peace, and play the role of peacemaker in the international community.
As I'm sure our friends and TFCC members know, the cooperative, long-term efforts of Taiwan's government and citizens have given the Republic of China freedom, democracy, and economic prosperity that have won widespread international acclaim. Taiwan is a crossroads where Eastern and Western cultures meet, and human relationships are treasured. So it's no wonder that Taiwan has become a favorite destination for international travelers. In its "52 Places to Go in 2014 ," The New York Times listed Taiwan at no.11. We also appeared in the 8th spot in Lonely Planet's ten best bargain holiday destinations for 2015.
As you already work and live here, I trust that you have all experienced the kindness and enthusiasm of Taiwan's people, as well as our gourmet delights, unforgettable scenery, and beautiful character. So I hope that you will all spread the good word about my country. That will help the international community learn more about Taiwan's free society and economic development, and allow the tremendous goodwill of Taiwan's citizens to become a force for human warmth and humane values in the international community.
Last but not least, let me thank the TFCC once again for inviting me, and let me take this opportunity to wish all of you health, happiness, and good fortune in the future.
Thank you very much.