Interview with Taiwan's President

"For our safety, all possible precautions "

Long overshadowed by his father, Generalissimo Chiang Kaishek, Taiwan's President Chiang Ching-kuo, 69, has emerged as a capable, hard-working leader who spends much of his time visiting with citizens of the island republic. In an interview with TIME Hong Kong Bureau Chief Marsh Clark, Chiang expressed considerable optimism about the future of Taiwan. Excerpts:

On the normalization of U.S.-China relations: We did everything possible to prevent that nightmare from taking place. However, it did occur. If I were to say that the change has had no damaging effect at all, that would be wrong. There are still people who feel hurt psychologically. The two weeks after Dec. 16 [however] were the most unstable period. The stock market dropped, and the exchange rate between the U.S. dollar and the New Taiwan dollar on the black market rose to NT $43 for $1. Domestic and foreign investors seemed to be reconsidering their investments. But it seems to us that since January the situation has improved.

On the U.S. role in the region: I feel that the Sino-American Mutual Defense Treaty was important to the Republic of China [Taiwan] and also to the U.S. For the good of the U.S. as well as the republic, this treaty should be kept in effect. But President Carter has already announced his intention to terminate it at the end of this year. Congress has passed the Taiwan Relations Act, saying that the U.S. continues to be concerned about the security of the republic. I think that is very important in terms of the U.S. strategic position in this part of the world. If the U.S. lost its presence here, then the damage to the security of the world would be much more serious than the fall of Viet Nam. It would cause serious defense problems for Japan, the Philippines, Singapore and other countries in the region.

On Taiwan's defense: We have 17 million people trying very hard to preserve freedom and stability here. If any crisis should occur, they would unite to counter the challenge. If Communist China were to take military action against us, many people there would oppose it, and it would lead to an antiwar movement and perhaps even a civil war. That possibility will prevent the Communists from taking military action against Taiwan. You must [also] consider the natural barrier between us, the Taiwan Strait, which is 100 miles wide at its narrowest point and 120 miles at the broadest. [The Communists] would have to be prepared to sacrifice 1 million, 2 million or even 3 million people in an invasion that would also involve a great logistical problem for them. But for our part, we cannot rely on such assumptions for our safety. We must take all possible precautions.

On China's "Four Modernizations": The Chinese Communists themselves understand that it won't be easy to achieve such an ambitious venture. Why, then, did they announce the program? The purpose was simply to fool the Americans and other foreigners, to attract their attention. The same is true of the "Big Character Posters" on Democracy Wall. The Four Modernizations were designed to give the outside world the impression that the mainland was going to turn into a huge market. But in fact no country can be modernized unless it can first modernize its thinking and its political system. Unless Communist China does this, it can never succeed with the Four Modernizations.

On Taiwan's future: I am always optimistic. The first thing we must do is establish stability and ensure our survival. After that we can concentrate on development and finally we can attain victory. I would like the American people to realize that their genuine, true friends are here in this country. I have every confidence that we can continue our friendship. There is a Chinese expression that no one can wield a knife to cut the ties between two close friends.

On Peking-Taipei relations: Any "contacts" or "ties" would just be a tool used by the Chinese Communists to undermine our psychological defenses against Communism.

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