In his first news conference with the Chinese and foreign press since forming his cabinet on January 19, in Taipei, Premier Sun Yun-suan spoke candidly of current issues such as arms sales, economic problems and future national directions.

ARMS SALES The Premier characterized American policy on arms sales as unhelpful. Bowing to communist wishes on arms sales puts American policy in communist hands and could result in sabotage of the long-standing friendship between the United States and the Chinese people on Taiwan. He argued that the Republic of China should make renewed efforts to cement friendship with the overseas Chinese and the American public and legislators. He urged also that the Chinese public on Taiwan re-dedicate itself to self-strengthening and to the unification of all China under a government believing in the ideals of Sun Yat-sen's Three Principles.

INFLATION The high rate of inflation which has plagued the country for the past three years is mainly the result of higher prices for imported goods and the growing costs of labor. With international oil costs falling and a stabilizing job market in the Republic of China, it may well be that the latter half of 1982 will see a return to more normal conditions for Taiwan.

HUMAN FACTORS Premier Sun insisted that human factors--good officials, energetic private businessmen, alert legislators, an informed public--all have important roles to play in Taiwan's future development. He said that while it is too early to see how all his new cabinet appointments would work out, he has chosen people known to be impatient with outdated policies and regulations. He also stressed the need for cooperation among officials, the private sector and the press so that reform can proceed in an atmosphere of critical alertness and willingness to adjust policies that may be working a hardship on one element of the citizenry or another. The Premier gave special importance to the improvement of the organization and efficiency of those private business groups which are playing an increasing role in national development.

FUTURE DEVELOPMENT Premier Sun proposed nine new projects for future economic development. Among them he stressed the importance of automation of production. Automating present industries can give Taiwan a better place in international export competition. Also, Taiwan is well situated, with its skilled labor force, to get into the successful manufacture of robots for both domestic use and export abroad. The Premier pointed out that, like it or not, the world is in a new industrial revolution where research and technology can make the difference between success or disaster. Taiwan can not afford to neglect these latest developments. In fact, the Premier said, the government is determined to create a favorable environment for the development of technology-intensive industries where Taiwan's relatively low costs of production will make the island's industries competitive in such fields as small cars and information industry related projects.

To the surprise of some who think the Premier's attention is heavily focused on research, technology improvement, and industrial development, one of the nine new projects proposed was the further development of tourism. He seemed in no doubt that the island can be both industrial and beautiful. In fact, each goal should be kept in harmony with the other if Taiwan is to be both an industrial and commercial giant and at the same time "the Switzerland of Asia".

[Picture Caption]

Left: Premier Sun (middle) attended the press meeting, accompanied by Dr. James Soong, (right) general director of the Government Information Office, and Mr. Chu Shao-hwa, secretary general of the Executive Yuan. Right: The press responded enthusiastically to the conference.

The press responded enthusiastically to the conference.

The press responded enthusiastically to the conference.