Chapter 5: Financial Conference

  "I heard that the government is going to start building a factory? And they're going to recruit a large number of workers. Ah, do you think someone like us can get in? I heard the treatment of workers here is very good."

  "It's already been spread far and wide outside, and today's newspaper no longer has any political stuff, it's all discussions about economic construction. Huh, isn't that strange?"

  "Alas, we common people should not believe their sweet talk. They speak nicely but who knows what evil intentions they harbor? Haven't we been deceived enough?"

  "It's all right, it's all right, we ordinary people just want to live in peace and stability, but the government keeps stirring up trouble, in the end, it's still us ordinary people who suffer, sigh!"

  "Everyone, ah, everyone, this time it's really true. I heard that Director Chiang will give a speech in person, and his assistant Li has already made guarantees. The government plans to build several large factories and repair roads, with recruitment points everywhere. Why don't you all go take a look? Maybe you can earn some money to supplement your family expenses."

  "Right, Old Wang said it well, let's take a look"

  As the new round of government propaganda campaign unfolds, the entire island of Taiwan is boiling over, with economy and development becoming a hot topic for the first time. In the past, Taiwanese people mostly discussed topics like spies, communists, and espionage, but now economic development is being widely discussed by everyone on the island, as if every person has become an economics expert.

  Executive Yuan Ministry of Finance internal meeting, Executive Yuan Premier Yan Jiagan sat at the top, on both sides were Executive Yuan Vice Premier Chiang Ching-kuo and Minister of Finance Li Kuo-ting, the rest were heads of various departments of the Ministry of Finance, including the Accounting Office, Statistics Office, and subordinate agencies such as the National Treasury Administration, Taxation Bureau, State-owned Property Bureau, and Customs General Administration.

  Lin Feng, as Chiang Ching-kuo's special assistant and economic advisor, also attended the meeting. The main content of this meeting was to discuss Lin Feng's proposed "Taiwan Ten Major Construction Projects" which were about to be implemented.

  Yen Chia-kan first spoke up, saying: "Vice Premier Chiang has proposed an economic development plan, and everyone has carefully considered it. Now let's discuss our own views." Yen Chia-kan was the mainstay of support for Chiang in the Executive Yuan, and almost everyone in the Executive Yuan knew that as long as Vice Premier Chiang wanted to do something, Director-General Yen would definitely give his full support.

  Before coming, Lin Feng specially inquired about him and knew that he was Chiang's confidant. Yan Jia-gan was re-elected as "Vice President" in 1972, and the "Premier" was succeeded by Chiang Ching-kuo. In April 1975, after Chiang took office as "President", he immediately led the nomination of Chiang Ching-kuo as Chairman of the Central Committee of the Kuomintang and Chairman of the Standing Committee, handing over the highest power to Chiang Ching-kuo, known as the "Chiang-Yan regime" period.

  "The hospital head said, 'This plan, how to put it, is the top ten construction a bit too crazy? Are we not spreading ourselves too thin? I think our financial burden can't afford it.' The tax bureau chief saw that everyone was silent and quickly brought up his own difficulties, first shirking his own responsibility."

  Someone took the lead in speaking, and the atmosphere became much more lively. For a while, the conference room was filled with discussions, but most people did not agree to implement this plan, or agreed to partially implement it, anyway, no one agreed to fully implement this plan.

  At this time, Chiang Ching-kuo coughed and swept his eyes over everyone, saying: "Assistant Li, you tell everyone."

  Lin Feng stood up and looked around, saying: "Everyone is worried that our financial resources are not sufficient to implement this plan. To be honest, in recent years, our processing and export-oriented economy has developed rapidly, but we must also have a sense of crisis awareness. The processing economy relies on outsiders after all. If we don't accelerate economic transformation, once an economic crisis occurs, it will be a disaster for us. If this plan can be successfully implemented, we will form our own fist industry and pillar economy. From then on, we will stand unshakeable and be able to withstand the impact of external economic crises. Of course, I also know that it is very difficult to achieve this plan, but once we succeed, everyone will be a hero in history."

  Everyone was stirred up by Lin Feng's passionate speech, and many people felt that it would be worth selling their pots and pans to complete this plan.

  However, good things are often ruined by naysayers. Just as Lin Feng had boosted everyone's morale, Finance Minister Li Guoding expressed his opposition in a calm and measured tone: "Director, this plan looks great and has a promising future, but to me it seems like a mirage - all show and no substance, just a lot of hot air."

  Lin Feng was not surprised by these words. Originally, almost everyone in history did not think highly of Chiang Ching-kuo's proposed plan. Lin Feng understood the concerns of others.

  Li Guoding has some understanding of Lin Feng, knowing that he is not maliciously attacking, and this person still has a few points of true talent and real learning. Perhaps he really doesn't think much of the plan, after all, Li Guoding thought that the ten major constructions were too grandiose, and success was just a lucky coincidence.

  However, he made many contributions to Taiwan's economy, from drafting the "Investment Incentives Act" and promoting export processing zones in the early days, to later assisting in planning science and technology development programs, establishing science parks, and promoting international cooperation. He led Taiwan's transformation from an agricultural society to a capitalist society, modernization, and technological development. Li Kuo-ting is considered one of the key figures behind Taiwan's "economic miracle" and the development of its tech industry, earning him the nickname "Taiwan's Godfather of Technology".

  Li Guoding believes that a free economy has three characteristics: private property, public enterprise, and maintaining market price functions. Li Guoding advocates for "planned free economy", economic growth, stability, justice, and freedom often conflict with each other, requiring balance between enrichment and equality based on different stages of economic development and circumstances. For fiscal work, Li Guoding advocates for "balanced development of growth and stability, balanced development of justice and freedom".

  The traditional Chinese five cardinal relationships are: "affection between father and son, righteousness between ruler and subject, distinction between husband and wife, order between old and young, and trust between friends" (Mencius - Teng Wen Gong I), which is the classic norm for the relationships between ruler and subject, father and son, brothers, husband and wife, and friends. Based on the Confucian five cardinal relationships, Li Guoding proposed a sixth relationship in 1981 to meet the needs of modern society: the relationship between oneself and others. The six cardinal relationships are the standard for interpersonal relationships in modern society. Mr. Li Guoding's sixth relationship refers to the relationship between people and strangers, people and nature, and people and groups, which need to be established in modern society. If "five cardinal relationships" is small love, then "sixth relationship" is great love (Gao Xijun).

  It can be said that Li Kuo-ting is a talented person with his own principles, and he often goes by the book. Although the Ten Major Construction Projects were initiated by Chiang Ching-kuo, Li Kuo-ting, as the Minister of Finance, was not informed beforehand. However, afterwards, he actively sought funding from various sources, including fundraising from Arab countries.

  So, Lin Feng had long been mentally prepared for Li Guoding's opposition. He took a deep look at Li Guoding and said: "We are now far behind others. If we continue to develop in a conventional way, we will never be able to surpass others. Look at our neighboring country Japan, after more than a decade of development since the war, their economy has gradually caught up with old capitalist powers such as Britain, France, and Germany. And what about us? We still don't have a complete heavy industry foundation, only a light industry foundation has been established, many people are still relying on Taiwan's weak agriculture to make a living, and most people are still living below the poverty line. I know this plan is difficult to implement, but there is no success in this world that can be achieved without effort. How can we see the rainbow without going through the storm? We should take out the courage of breaking the cauldron and sinking the boat, face the challenge, seize the favorable situation of the world economy, and promote our own economic development. I hope everyone will work together to raise funds, as long as we are united, we will definitely achieve success in the end."

  "What Mr. Li said is correct, as long as we are full of confidence and unwavering, we will definitely achieve ultimate success. I hope everyone can put aside their differences, unite sincerely, and if anyone is hypocritical, they will be severely punished." Chiang Ching-kuo concluded his speech.

  Everyone saw Chiang Ching-kuo fully support Lin Feng, and no longer expressed different opinions. They began to propose constructive opinions on this plan, everyone spoke freely, and also put forward many pertinent opinions, such as someone suggested issuing national debt to solve the problem of insufficient funds; Some people also proposed borrowing from Americans, etc.

  Lin Feng summarized all the opinions and waited until everyone had finished speaking before saying, "I've roughly calculated that if we want to implement this plan, it will require approximately 200 billion new Taiwan dollars, which is equivalent to 5 billion US dollars. Our annual fiscal revenue last year was around 450 billion new Taiwan dollars, with a budgeted expenditure of 400 billion new Taiwan dollars, leaving a surplus of less than 50 billion new Taiwan dollars. Even if we implement this plan over five years, we would need to invest at least 40 billion new Taiwan dollars each year, which is roughly equivalent to our annual fiscal revenue. This is clearly impossible. In the future, we will significantly reduce national defense expenditures, and after deducting necessary daily expenses, we can allocate around 30 billion new Taiwan dollars each year. Of course, as our investments increase, our annual fiscal revenue will also increase. The remaining 10 billion dollar deficit can be partially resolved through issuing national bonds, and if all else fails, we can borrow from the United States or other countries. This way, we can ensure that the first year of the plan is implemented smoothly."

  Everyone nodded in agreement after hearing Lin Feng's words, and following this line of thinking, the plan indeed had feasibility. Thinking of this, everyone became excited, because they all knew that once this plan was successfully implemented, they would be recorded in history as the planners. As a Chinese person, no one could resist the temptation of leaving a name in history. As the historical figure Huan Wen once sighed: "A great man cannot leave a good name for centuries, nor can he leave a bad smell for ten thousand years!" The Ministry of Finance colleagues had basically passed this economic plan, rather than relying on Chiang Ching-kuo's autocratic rule to push it through.