Taiwan president vows to improve economy, China ties

TAIPEI (AFP) — Taiwan President Ma Ying-jeou on Friday urged confidence in the economy and pledged to promote peace with China as the island marked its first national day under his government.

"We are facing an unprecedented global financial crisis and the government will actively handle the situation while promoting cross-strait peace and international friendship," Ma said in his national day speech.

"Improving the economy is the government's top priority and we will push for economic reforms amid the current challenges... We will conquer the obstacles and head to prosperity if we have firm confidence," he said.

Ma's government has unveiled an economic stimulus package worth 5.6 billion US dollars to help achieve its target of 4.3 percent economic growth this year and shore up the ailing stock market.

Ma, of the Beijing-friendly Kuomintang (KMT), swept to a landslide victory in March on pledges to improve the island's sluggish economy and bolster relations with China.

The president Friday vowed to build a "clean and able" government to win the respect and recognition of China and the international community.

He also reiterated Taiwan will continue to relax ties with China while maintaining its defence capabilities.

"The people's mutual expectations are 'no reunification, no independence and no use of force' between the two sides. But we will not have wishful thinking, we will firmly uphold Taiwan's dignity and Taiwanese people's welfare," he said.

"We will maintain defence capabilities because we can seek cross-strait peace only when we have no security concerns."

Cross-strait relations have changed rapidly since Ma took office, as Taipei and Beijing resumed dialogue and then launched regular direct flights in July for the first time in nearly six decades.

His government has allowed more Chinese tourists to visit the island and relaxed controls on China-bound investments, issues that had been shunned by the former pro-independence ruling Democratic Progressive Party (DPP).

DPP chairwoman Tsai Ing-wen, who refused to attend the national day ceremony in the capital, was scathing.

"His speech is filled with vague phrases and empty visions in a bid to revive public confidence. I think the people have heard too much idle talk and they want to see actions and solutions," she said.

Friday's celebrations marked a sharp contrast to the military parade staged by the then DPP government last year as a reminder to Beijing of the island's military strength.

Taiwan and the mainland have been governed separately since they split in 1949 at the end of a civil war.

However, Beijing still sees the island as part of its territory awaiting reunification, by force if necessary.