The ROC government had been established on Taiwan for 20 years and the fruits of land reform had provided a basis for the greater prosperity of the common people. Economic activity, primarily from public investment, was flourishing. However, the island was still under martial law, political prohibitions such as those outlawing the establishment of political parties had not yet been repealed, and the social atmosphere was tense.
國民政府撤退來台後經過二十多年的建設，以土地改革為基柢的民生發展，已有一定成果；以公共投資為主的經濟活動逐漸蓬勃，但是戒嚴令未除，開放人民組黨等政治禁忌未解，社會氣氛仍然緊張。