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Vol I No 052 18 March 1987 
PRC To Host UN Regional Disarmament Conference 4A 1 
Foreign Ministry Holds Weekly News Briefing 4A 1 
On UN Disarmament Meeting Al 
Swedish Prime Minister To Visit 4A 1 
Journal on West Europe Defense, U. S. USSR Talks A 2 
Shultz Interviewed on PRC Policies, Progress B 1 
XINHUA Reports DPRK Proposal on Talks With South 9 1 
BEIJING REVIEW Discusses DPRK Proposal on Talks 9 1 
116 Mar] 
PRC Protests Japan Decision on Dormitory [KYODO] D 2 
Wu Xueqian Continues Visit to Italy, Meets Leaders G 1 
Explains Reform G 1 
Wu Meets Craxi 6 1 
Italy, PRC Sign 3-Year Economic Cooperation Accord 6 1 
[Rome ANSA] 
Chen Pixian Meets Italian CP Delegation 13 Mar G 2 
Song Ping Meets Turkish Minister of State G 2 

Canadian Governor General Arrives on Visit 
Li Xiannian Welcomes Sauve 
Li, Sauve Hold Talks 
Li Stresses Open Policy 
Minister Awards Students 

Costa Rican Trade Unionists Meet Luo Gan 
Meet NPC Vice Chairman 

Be Ge Ge Ge Ce Ce Ge 
eer rnne = 

I. 18 Mar 87 2 


State Council Decides To Set Up Tariff Committee 

CPPCC National Committee Standing Committee Meets 

JIEFANGJUN BAO Hails Army's Political Work Rules 
127 Feb] 

JIEFANGJUN BAO Prints PLA Audit Work Regulations 
(3 Mar) 

JIUFANGJUN BAO Commentary [3 Mar] 
JIEFANGJUN BAO Assesses First Satellite Station 
y (10 Mar] 

PLA Applies Computer Software With Good Results 
ZXS Views ‘New Thinking’ of Economics Professor 
Roundup Covers Developing Shipbuilding Industry 
RENMIN RIBAO on China's Industrial Policies 
{2 Mar) 
RENMIN RIBAO on Planting Trees in Coastal Areas 
{13 Mar] 
NONGMIN RIBAO on Scale of Land Operations 
{7 Mar) 
JIEFANGJUN BAO Article on Bourgeois Liberalism 
[4 Mar] 
JIEFANGJUN BAO Stresses Lei Feng Spirit 
[5 Mar] 
Xi Zhongxun Inspects Guangdong 11 Feb-11 Mar 
Xi Zhongxun Gives Instructions to Hunan Cadres 
Yu Qiuli Stresses Four Cardinal Principles 
Song Rengiong Inspects Jilin City 9-14 Mar 



Shanghai People's Congress Meeting Closes 
(WEN HUI BAO 12 Mar] 

Shanghai Leaders Inspect Disaster Areas 
(WEN HUI BAO 8 Mar] 

Secretary, Mayor Inspect Shanghai Militia 

Zhejiang Appoints, Removes Provincial Officials 


Guangdong Party Committee Holds Plenary Session 
Lin Ruo's Report 
Main Tasks for 1987 
Shenzhen Official Reports Production Quotas 
Guangxi To Increase Production, Economy Drive 


Sichuan Cadre Rally To Promote Production 
Wu Jinghua Favors Protecting Xizang Customs 

I. 18 Mar 87 3 


Gansu Circular Urges Fighting ‘Serious’ Drought 
Gansu Governor Reports Economic Plans 

Zhang Boxing Elected Governor of Shaanxi 

Shaanxi Congress Elects Zhang Governor, Concludes 




PRC-Portuguese Talks on Macao Open in Beijing 
Accord Anticipated [AFP] 


9 — 



OW180138 Beijing XINHUA in English 0124 GMT 18 Kar 87 

[Text] United Nations, March 17 (XINHUA) — The Asian and Pacific Regional Conference 
on Disarmament will be held in Beijing from March 23 to 27. The conference, organized 
by the United Nations Department for Disarmament Affairs, will discuss issues including 
nuclear and conventional disarmament, international security, verification of 
disarmament agreements and regional issues. 

About 38 representatives from non-governmental organizations, research and educational 
institutions and the mass media of 16 countries will participate in the conference. 
Senior diplomats from 11 countries will address the conference as guest speakers. Some 
countries have decided to send their representatives to the conference as observers. 

To promote the world disarmament campaign and world peace cause, the UN Department for 
Disarmament Affairs has organized seminars and conferences in various regions of the 
world. The Beijing conference is the i4th of such regional meetings and the first to 
be held in China. 

On UN Disarmament Meeting 

OW180920 Beijing XINHUA in English 0853 GMT 18 Mar 87 

[Text] Beijing, March 18 (XINHUA) — “United Nations Regional Conference for the World 
Disarmament Campaign” sponsored by the United Nations will be convened here ‘rom March 
23 to 27, said a Chinese Foreign Ministry spokesman at a weekly news briefing here this 
afternoon. The conference will be devoted to discussion on disarmament and its 
relations with security and development, according to the spokesman. The spokesman 
said that cfficials, well-known personages, experts and scholars from countries in the 
Asian and Pacific region, Europe and America will attend the conference. Some Chinese 
Government officials, experts and scholars will also be invited to the conference. 
[Beijing XINHUA Domestic Service in Chinese at 0740 GMT on 18 March carries « similar 
item, which states that "Vice Premier Wan Li will speak at this conference on behalf of 
the Chinese Government" | 

Swedish Prime Minister To Visit 
OW180856 Beijing XINHUA in English 0847 GMT 15 Mar 87 

[Text] Beijing, March 18 (XINHUA) — Prime Minister Ingvar Carlsson of the Government 
of the Kingdom of Sweden will pay an official visit to China from April 3 to 9 at the 
invitation of Premier Zhao Ziyang, a Chinese Foreign Ministry spokesman told a news 
briefing here this afternoon. The spokesman said that Sweden was the first among the 
Western countries to establish diplomatic relations with China in 1950. In the 37 
years since then, the two countries have enjoyed friendly relations. The spokesman 
believed that the forthcoming visit by Carlsson will further promote the mutual 
understanding and friendship between the two countries, and bi ing about a greater 
development of economic and trade cooperation on the basis of long-term stability and 
mutual benefit. 


HK140731 Beijing GUOJI WENTI YANJIU in Chinese No 1, 13 Jan 87 pp 44-49 

[Article by Jiang Jianging (5592 1696 3237): “Western Europe's Defense and the 
U.S.-Soviet Arms Control Talks“ 

{Text} Since the U.S.-Soviet summit in Iceland, Western Europe has been extremely 
worried and anxious about the trend of developments in U.S.-Soviet arms control talks. 
At present in the U.S.-Soviet arms control talks there is haggling going on and it is 
still in doubt whether a “package agreement" can be worked out. The United States and 
Western Zurope are frequently exchanging views in an attempt to gain Western Europe's 
support for the U.S. talks program. Within Western Europe there is also intensified 
consultation so that they can exert more influence on the U.S.-Scviet talks and plan 
their own avenues. These various signs indicate that changes will occur in the 
relationships between Western Europe and the United States and the Soviet Union. The 
problems which have long been latent within NATO will thus be greatly exacerbated. 

I. The Secret Concern of Western Europe [subhead) 

The initial hopes of Western Europe for the Iceland summit were not realized. It 
appears that prior to the summit the United States did not solicit the agreement of its 
Western European allies. Thus, since the end of the Iceland summit, the positions of 
the various countries in Western Europe have been both circumspect and quite 

Until today, the major characteristic attitudes of the various countries in Western 
Europe have been, on the one hand, to welcome “major progress in the U.S.-Soviet arms 
control talks and hope that through continued efforts positive results will be 
achieved; on the other hand, they are worried that the United States and the Soviet 
Union are engaged in “over-the-head diplomacy” which will result in an agreement which 
will harm Western Europe's interests. They have grave doubts and are very wary about 
the true intentions of the United States and the Sovie: Union. They believe that the 
reason the United States and the Soviet Union have been able to realize progress is 
that, in the Soviet view, one of their aims is to bring about a collapse in the defense 
bond between the United States and Western Europe and to strive for military 
superiority in the European the. . “eimwhile, the United States, in order to realize 
its long-term aim of global military strategic superiority, may not gay attention to 
and hence harm Western Europe's curiest defense needs. The focus of Western Europe's 
attention is the United States deployment of nuclear forces (especially medium 
long-range [zhong yuan cheng 0022 6678 4453] nuclear forces) in Europe and the degree 
and speed of U.S.-Soviet strategic arms reductions. They are worried that if the 
United States and the Soviet Union suddenly realize an agreement, it may greatly weaken 
the U.S. “nuclear umbrella.” 

The above attitudes of Western Europe originate from their location and their basic 
strategic ideologies. 

For a long time, the strategic ideology of Western Europe was that “detente in deferse 
matters equals security." In East-West and U.5.-Soviet arms control questions, Western 
Europe advocate: the r“alization of a “low-level balance” and requires that both the 
United States and the Soviet greatly reduce both nuclear and conventional arms. After 
the arms ‘reductions, an overal) balance of military power will be achieved. Neither 
side should use the arms talks to seek military superiority. If the arms control talks 
deveiop in this direction, then in the international arena the Western Europeans will 
be able to im rove their position, increase their independence, and increase their 
maneuvering rouse between the two superpowers. [paragraph continues] 


At the same time, they will be able to improve their domestic situation an“ be able to 
avoid being squeezed between the two aspects of expanding arms production and 
developing their economies. They will also be able to reduce the pressure of the peace 
movement on various governments. 

It is because of this that the results of the Iceland summit have put the governments 
of various Western European countries in a dilemma. With respect to the intention of 
the United States and the Soviet Union to greatly reduce medium-range and strategic 
nuclear weapons, Western Europe can only express support. If it does not it will be 
acting in contradiction to its long-advocated stand that there should be detente in 
East-West relations and a great reduction in arms. However, Western Europe believes 
that on the basis of the U.S.-Soviet plan, after both the United States and the Soviet 
Union eliminate the deployment of medium long-range nuclear weapons in Europe the 
pressure on Western Europe frow the Soviet Union's superiority in conventional weapons 
will undoubted!’ _.2atly increase. Alsv, the medium short-range [zhong jin cheng 0022 
6602 4453) and short-range [jin cheng 6602 4453] nuclear weaons which are not included 
in the agreement will form new “gray weapons.” [hui se 3500 5331) Furthermore, the 
Soviet Union has a great superiority in these types of weapons. in such a situation, 
the threat of conventional warfare and limited nuclear war will be unprecedentedly 
increased. Thus, after the United States greatly reduces its weapons, whether the 
remaining weapons will be able to safeguard Western Europe becomes the question. 
Western Europe shudders at the thought of this impossible scenario. It is for this 
reason that the government leaders of many countries in Western Europe have recently 
repeated!y claimed that “the security of Western Europe cannot be separated from the 
security of the United States” and that “arms control talks must prevent nuclear war in 
Europe and they gust also prevent conventional warfare.” 

Ii. Arms Control Talks and the Crisis in the NATO Military Structure [subhead|] 
The results of the Iceland summit have again sparked off a “structural crisis” in NATO. 

Since NATO implemented the flexible response strategy in 1967, NATO has been required 

to have an appropriate ratio of conventional forces, tactical nuclear forces, and 
strategic nuclear forces. This is the so-called “three-in-one” miliiary capacity. The 
guiding ideology in determining this strategy is that NATO relies on this force to 
deter enemies and this force can be used to resist any invasion. The structure of the 
“three-in-one" force has the following characteristics: 

1. In theory, the position of conventional forces was increased, which required the 
strengthening of conventional forces and the expansion of this role so that they covrld 
resist limited-scale attack. Even if they were unable to rebuff the attack, they would 
be able to gain the necessary time for an anticipated nuclear escalation. 

2. The tactical nuclear force plays the key role in the “three-in-one” deterrent 
force. Strategy determines that when conventional forces “cannot withstand a Warsaw 
Pact attack, then in a “cautiously controlled escalation of the var tactical nuclear 
forces will be used “in a selective and restricted manner.” The aim is to increase the 
selective capacity to carry out limited nuclear warfare against the Warsaw Pact and 
increase the determination to carry out flexible response strategies. This will allow 
NATO to use tactical Me ear forces deployed in Europe tw engage in a limited nuclear 
war with the Warsaw Pact without employing U.S. strategic nuclear forces. [paragraph 
continues | 


As to the scope of tactical nuclear forces, they include short-range (range under 500 
kilometers), medium short-range (500 to 1,000 kilometers), and medium long-range (1,000 
to 5,000 kilometers) missiles, fighter and bomber aircraft which carry auclear weapons 
and other types of nuclear weapons and means of delivery. This is both a means of 
deterring the enemy from using their weapons and also the link between Western Europe 
and the U.S. strategic nuclear deterrent force. 

3. If, im the end, there is no alternative, they should use strategic nuclear forces, 
predominantly J. S. strategic nuclear forces to engage in all-out nuclear war. 

The above shows that the flexible response strategy is, like the large-scale 
retaliatory strategy in the cold war period following World War Ii, a “deterrent 
strategy” with U.S. nuclear forces as its mainstay. In the 40 years since the war, the 
military power of Western Europe has greatly increased, but the basic situation of 
relying in defense matters on the U.S. “nuclear umbrella” has not changed. 

Looking at things from the actual development, this NATO structure is increasingly less 
suited to the changes in the balance of military forces between the United States and 
the Soviet Union and the two major military blocs in Europe. An overall balance has 
already been achieved in terms of U.S. and Soviet strategic nuclear forces. According 
to estimates, the ratio of Warsaw Pact military personnel stationed in Europe compared 
to NATO personnel at present it 1.2 to 1. However, because of the deployment and 
composition of Soviet forces and the wide and broad geographical conditions, the actual 
superiority of the Warsaw Pact countries in terms of troops and weapons exceeds this 
figure. In terms of biological warfare capacity, the quantities of chemical weapons 
stores which the United States and the Soviet Union have deployed in Europe differ 
greatly, with the Soviet Union having a great superiority. 

In terms of medium long-range guided missiles, because the U.S. Pershing II and cruise 
missiles have been deployed in Western Europe, they are about a match for the Soviet 
SS-20's and other guided missiles. In terms of medium short-range guided missiles, 
since the Soviet Union deployed improved 88-21, 88-22 and 88-21 guided missiles in the 
German Democratic Republic and Czechoslovakia in recent years. they (the USSR and the 
Warsaw Pact) clearly lead NATO both quantitatively and qualitatively. As to the 
nuclear capacity of the British and the French, although through several years of 
development they have gained a certain strength, first, their strength is greatly 
limited when compared to that of the United States and the Soviet Union, and second, 
they are to differing degrees independent and it is difficult to simply include them in 
the above comparison of forces. 

Because of changes in the balance of forces, whether or not NATO's “three-in-one” 
strategic structure has sufficient flexible response ability and is capable of 
guaranteeing Western Europe's security has become the most basic problem for NATO. 
Since the beginning of the 1980's some representative international study organizations 
as well as well-known government and private individuals have repeatedly spoken of the 
“historical and structural crises” within NATO and the Atlantic alliance. Of these, 
the most influential was a joint report by the heads of four major international study 
organizations and Kiss Inger s “Plan for the Transformation of NATO.” Their main points 
were: At a time when there is a basic balance between the United States and the Soviet 
Union in terms of nuclear capability, once Western Europe is subject to a serious 
threat from the Soviet Union, the United States will find it difficult to make the 
decision to use nuclear weapons and willingly risk a nuclear attack on its own 
territory in order to protect Western Europe. The present military structure of NATO 
has been inherited from the immediate post-war period when the United States 
monopolized nuclear capability and Western Europe was unprecedentedly weak. However, 
today Western Europe has become much more powerful economically and politically and has 
the obl‘ration and ability to take on more of its defense responsibilities, esyecially 
in ters, of conventional forces. [paragraph continues] 


In this way it »i 1 be possible within NATO to truly form “two mainstays” of the United 
States and Western Europe. la both the United States and Western Europe, whether in 
the public or private sector, m0 one is willing to differ on the above major points, 
because the facts are clearly thus. The problem is how to divide the defense 
responsibilities between the United States and Europe and how to form and strengthen 
the “Western Lurope mainstay” to free NATO from its “crisis.” For various reasons 
Western Europe will find it difficult to establish an independent defense force capable 
of contending with the Soviet Union, particularly in terms of nuclear forces. Although 
NATO has repeatedly passes resolutions on strengthening conventional defense and 
Western Europe has made some efforts ia this, it is still far from being able te match 
the conventional forces of the Warsaw Pact. Thus, to date there remains the basic 
contradiction in which Europe's defense must rely on U.S. nuclear protection but the 
U.S. nuclear umbrella is becoming increasingly less dependable. It is the same 
situation as before. 

In the last decade or so, this internal basic contradiction in NATO has been sometimes 
hidden, sometiaes open. Some influential persons from the United States (such as 
(Sonnenfeldt) [suo nan fei er de 4792 0589 6316 1422 1795], Kissinger and Reagan) have 
stated that it should not be hoped, in the event a war breaks out in Europe, that the 
United Stsces will employ strategic nuclear weapons to safeguard Western Europe. This 
has without a doubt been a great irritation to Western Europe and it has provoked a 
great response. It is only through the common needs of both the United States and 
Western Europe that the U.S. nuclear umbrella still covers NATO and the past disputes 
have not developed into real crises. The “balance of nuclear terror” has been the 
objective maintainer of peace in Europe in the 40 years since the war. 

However, the Iceland summit again caused this basic contradiction within NATO to 
surface. Western Europe's concern is that since the United States, without first 
soliciting agreement from the Western European allies before the summit, reached a 
concensus {although an agreement was not reached) with the Soviet Union during the 
summit on the reduction of medium-range nuclear weapons and strategic weapons, then in 
the future the United States mighi not pay attention to Western Europe s interests and 
conclude an agreement with the Soviet Union on these matters. If the United States and 
the Soviet Union indeed reach an agreement based on the intentions at the summit, then 
the contradictions in the military structure of NATO will become more serious than 
before and the Soviet Union's superiority in conventional forces will be even more in 
evidence. As to the fle tible response bonds, these will be further weakened by the 
removal of U.S. medium-range nuclear missiles based in Europe and there will be no 
guarantee after large-scale U.S. revuctions that the remaining strategic weapons will 
be able to safeguard Europe. Not wnly have the FRG and the United Kingdom reacted 
strongly o1 this, but even the French Foreign Minister Raimond has recently said that 
the possibility of “the United St<ces withdrawing all its guided missiles from Europe” 
in extremely “frightening.” 

III. Western Europe's Efforts in Strengthening Defense and the Difficulties Faced 
{subhead | 

The Iceland summit exacerbated Western Europe's sense of crisis in the defense area. 
Western Europe has made the following assessments on the development trends in the 
strategic situation: 

First, they believe that for quite a long period to come the major danger faced by 
Western Europe will be the Soviet Union's conventional military threat. Seen from the 
actual developments since the 1970's, although the European situation has for a time 
been relaxed, the Soviet Union has not slowed its efforts in the conventional forces 
area and in fact there have been continuous obvious improvements in conventional 
forces’ tactics and technology. [paragraph continues] 

I. 18 Mar 87 46 PRC INTERNATIONAL Lans 

It is estimated that by the beginning of the next century its capacity to launch « 
conventional attack on Western Europe will have greatly increased. 

Second, once the United States removes its medium long-range suclear weapons from 
Europe, Western Europe will have to “make up the deficiency” itself. 

Third, the new round in the arms race which is centered on the United States and the 
Soviet Union vying for superiority in space, may greatly weaken Western Europe's 
strategic position. la the new arms race Western Europe Gust work out its own 
long-term plans and seek its own avenues. 

The above ideas did not just appear after the Iceland summit. At the end of the 1970's 
they had already begun to appear. Reagan's proposal of the “Star Wars” plan and the 
recent Iceland summit have caused these ideas to become more prominent daily. On the 
basis of the above assessments, in recent years Western Europe has made a series of new 
efforts, mainly in the following areas. 

1. They have strengthened conventional forces, putting special efforts into 
modernizing the equipment of their conventional forces. Western Europe knows that in 
terms of the number of troops in active service and reserve troops, even if they put 
more efforts into this, there is no way they will be able to match the Warsaw Pact 
forces. Thus, they have put efforts into increasing the technical superiority of their 
troops’ equipment. la order to increase their troops’ ability to engage in protracted 
war against an enemy attack, the tanks and antitank weapons of the major Western 
European countries have all been improved. For example, the FRG has 300 new improved 
Panther II tanks and the United Kingdom, France, and Italy have completed or are in the 
process of planning new replacement tanks. The FRG, Italy, and other countries have 
already accepted the “Roger's Plan” battle prirciple on in-depth strikes and are now 
developing in-depth strike capabilities, whereby there will be continuous strikes by 
echelon formation after the enemy bas been obstructed. There have also been advances 
in strengthening escort capabilities and antisubmarine capabilities. la order to 
accord with the long-term challenge, the various major countries of Western Europe have 
been successively setting about formulating plans for developing conventional weapons 
prior to the year 2000. Also, within NATO, together with the United States, an 
“in-principle military program” has been proposed which will be the guiding policy of 
developing weapons after the year 2000. All of this shows that Western European 
countries have further raised the position of conventional forces in their military 


2. The nuclear forces of the Unitcd Kingdom and France have been increased. in 
November of 1986 the French cabinet meeting passed the “1987-1991 Military Program Act” 
(it awaits passage by Parliament). la this, the modernization. of strategic nuclear 
weapons and especially the modern zation of guided missile suclear submarines in the 
maritime strategic forces is in prime position. At thy same time, it is adhering to 
plans to develop new land-based guided missiles. The British Conservative Government 
is persisting in using U.S. Trident missiles over the next few years to replace the 
existing Polaris missiles, in order to strengthen the power of its nuclear submarines. 
In the development of British and French nuclear forces great stress is being placed on 
strengthening instantaneous defense and survival abilities of the nuclear weapons. 

J. The, have explored the possibility of establishing an outer- space defense capacity 
for Western Europe. The various major countries of Western Europe have already started 
discussing their own space strateg:s> and some action has been taken. The United 
Kindgom and France have already separately established leading organs for developing 

space forces. [paragraph continues] 


From the information revealed it seems that the French, in developing space forces, are 
going to concentrate on antisatellite systems, feeling that this is « simple and 
effective way to counter the strategic defense systems. The British are more concerned 
with developing a weapons system to counter the Soviet Union's anti-medium-range guided 
missile systems. la this area, the FRC has quite great potent al and is secretly 
developing space forces. Italy is also d.scussing relevant plans. 

. They have strengthened defense alliances. Since the Western alliance was revived, 
conferences have been held regularly in order to link and coordinate the defense 
policies of relevant countries. In the concrete defense area Western Europe's 
cooperation is developing from joint development in conventional arms to cooperation in 
the strategic and high technology fields. In 1985 the United Kingdom, Italy, the FRC 
and Spain concluded an agreement to invest $30 billion in the joint development of 800 
“European fighters.” This is the first joint development agreement of major equipment 
in Western Europe. At a conference of defense ministers from the European bloc of NATO 
in the winter of 1985, the FRG proposed that Western Europe develop an 
anti-short-range ies ile system mainly based on lasers and electromagnetically guided 
guns. This geined general endorsement from the participating countries and sow 
relevant concrete plans are being discussed. Recently France has also made known that 
the long-discussed “Europe 2000 Spaceflight Plan” has already seen beginnings, since it 
received strong financial support from France and the FRC. This is composed of major 
projects including the development of the Arienne 5 rocket and the “Hermes” space 
shuttle and the equipping and launching of the “Columbus” space station. After the 
Iceland summit, foreign policy advisors of the government leaders of the United 
Kingdom, France and the FRC formed a working group to coordinate the stand of the three 
the U.S.-Goviet arms control issue. When the British and French heads met in Parise, 

they also put forward the issue of cooperation in terms of the two countries’ suclear 
forces. These trends have attracted intern.::onal attention. It is felt that the 

tern European countries sitting together and having a coordinated stand 
U.S.-Soviet arms control issue is “an unpri cedented action” and that cooperation 
the United Kingdom and France in terms of nuclear forces is a forbidden sone” 
ich has always been seen as difficult to enter. 



above developments are of a sort rarely seen in the histo... of Western Europe since 
war and show a sense of urgency in strongthening defense and defense cooperation in 
tern Europe. They aleo show that there have been definite breakthrough in this 
serious obstacles and difficulties remain in this area. 


situations and in defense policies have restricted the alliance 
Europe. The FRG is situated in the NATO forward position, is 
the greatest t from the Soviet Union, and has the greatest reliance on 
wmbrellia. Added to thie are the remnant effects of being « defeated 
Thus, even today there are still various restrictions in ite 
one is that it cannot have nuclear arms). Alt\ough the 
ited Kingdom in the European area is better then that of 
th ir position as major nations in international politics and 
ensure their epheres of power they have to make efforts which exceed the ability of 
their economic strength in order to maintain and extend a military force g orally 
commensurate with their positions. Thus, after France withdrew from the integral 
military structure of NATO in the De Gaulle period, thev all along pursued an 
independent defense policy. At the same time as paying attention to develops a 
nuclear deterrent force, they put efforts inte the overa!i strengthening of nuclear and 
conventional forces. [paragraph con. ‘nues) 

ie | 
is j 





Io strategic ideology they stressed “fortress France (they mainly stressed 
safeguarding the security of France's territory), while France's foreign interests were 
In second place. la recent years France has changed its “all-direction defense” 
policy, adopted an “expanded protection” policy and stressed “putting France's 
strategic focuses on those places in Europe and the Mediterranean area which are 
subject to the most serious Soviet threat.” However, the core of the defense policy -- 
the independent policy which has as its main pert safeguarding French national 
interests — will certainly mot change. The United Kingdom's policy is to maintain, 
with U.S. assistance, a small strategic suclear force and, at the same time, to 
maintain as strong as possible a conventional force composed of the three branches of 
the Arey, Navy and Air Force in order ts mintain “super-regional influence.” The 
FRG’s military stratezy and policies have been established on the basis of the NATO 
systems and its entire armed forces are under the wnified command of the supreme 
headquarters of the NATO allied forces. The core of its defense policies is detense 
cooperation and coordination with the United States. Because of differences in the 
and defense policies of these major Western European nations, and the many 
fears on the political level, it is difficult to achieve full cooperation 
and unity of purpose in coordinating the development of the various defense forms and 
ing Western Europe's defense alliance. Therefore, both realizing 
agreements and implementing thes are {wll of difficulties. Economic difficulties have 
the way of defense plan implementation. Since the idle of the 1970's 
Western has been in « slump. Although recently there has been an 
easing, in the next few years it is unlikely that there will be a rapid improvement. 
At present, the various countries are trying to control or redece their financial 
budgets and cut down their financial deficits. The military expenditures of major West 
m countries occupies quite a high proportion of the financial budget and, in a 
situation where money is tight, it is wery difficult to further expand the proportion 
of military expenditures. At the end of the 1970's, NATO passed « resolution on 
increasing silitary expenditures (a real growth of 3 percent annually). However, in 
the last few years virtually no country has been able to realize this. In the future, 
regardless of whether we speak of conventional arms, nuclear arms, or space defense 
lopment, because of the adoption of new technology and new equipment, expenditures 
will be greatly in excess of past figures. Therefore, the economic ime-ciments will 
become gore prominent. en if Western Europe is able to strengthe. the alliance to 
reduce difficulties in this respect, when the responsibilities have been divided up, it 
is not going to be easy to concretely implement then. 


IV. Several Ideas on Future Trends [subhead! 

1. In the b. S. -Soviet arms control talks, because of the restrictions of the various 
contradictions and their great complexity it will certainly mot be easy to achieve a 
“package agreemen:" the short ters. However, the two sides, in accordance with the 
requirements of the new round of the arms race (improving and strengthening strategic 
weapons and developing space weapons), have reduced the overload situation in their 
economies produced by Se arms race and they have both greatly cut beck on their hopes 
for existing outdaved nuclear forces. Thus after an intense round of haggling it is 
quite possible that they will reach an agreement in several areas. in the future, in 
arms control talks the United States and the Soviet Union iii have both dialogue and 
confrvntation and it is possible that « new situation may emerge. On the one hand they 
will be seeking an unprecedentedly large compromise and on the other hand they will be 
developing a higher-level intense rivairy. This will lead to « more intense and 
turbulent situation. 

2. The conflicts betwee: Western Europe and the United States and the Soviet Union 
will be exacerbated to different degrees. The Western Europeans are now planing 
various countermeasures to incrensee their inflwence in .. Soviet arms control talks 
and prevent agreements which will harm thes. [paragraph continues! 


The recent proposals by Western European countries that reductions by the United States 
terms of strstegic weapons and medium-range weapons should be 
of the medium long-range and medium-range suclear weapons and 
amr initial «demonstration of these 



weapons, in the final analysis, all are in the 
States and the Western Europeans dave only a limited right to 
ef the United States and Europe in the arms cortro! 
are not exactly the same, in the course of future discussion it will be 
avo the exacerbation of conflicts. As far as the Soviet Union is 
to allay Western Europe's fears, it will adopt some measures 
and reduce its intervention and its attempts to divide the 
United States and Europe. However, the Soviet Union will not make any substantial 
concessions which will weaken its conventional superiority in the European theater. 
Also, the restriction on British and French ouclear forces is an established policy 
and, at a certain stage, it is certain to put this back on the agenda. Tous if we lor 
at the essentials, a deepening in European-Soviet conflicts is inevitable. 

3. Corresponding profound changes will occur in internal NATO relationships. in the 
defense area, the United States and Europe need each other. It is difficult to see the 
current situation of Western Europe relying on the U.S. nuclear umbrella changing in 
the foresceable future. However, the hidden crisis in Mross flexible response 
strategy are becoming deeper and more obvious daily. The United States is already 
considering new strategic ideas, but Western Europe's worry that the United States will 
eventually “unhook” itself from Western Europe in defense matters have become mre 
intense 4sily. In the future a transitional period may occur when ole strategic ideas 
change to new strategic ideas, and because it will be difficult to ascertain if Western 
Europe, with regard to new strategic ideas, will be able to guarantee the stability of 
the U.S.-European alliance and the security of Western Europe, the is .ernal NATO 
contradictions will accordingly be exacerbated. 



* It is imperative that Western Europe strengthen its defense forces and defense 
alliances. Seen from past history, the greatest achievements in Western European 
alliances have been realized under strong external threats. Although there are all 
sorts of serious difficulties in the Western European defense alliance’, it would be 
very difficult to achieve the aim of defense independence. However, i). the present 
grim situation it is possible some breakthroughs might appear. These will undoubtedly 
be of benefit in strengthening Western Furope's independence anid improving its position 
in international relationships. 

5. The situation in Europe may, a6 „ consequence of ths above developments, become 
more complex, and this will affect all sides. What sort of changes thie will bring to 
the international relationships structure which has formed in Europe since the war is a 
question worthy of attention and study. 



HK180655 Shanghai SHIJiE JINGJI DAOBAO in Chinese 9 Mar 87 pp 1, 2 

[Special Dispatch From Beijing on 3 March by reporter Pan Muping (3382 1970 1627): 
"U.S. Secretary of State George Shultz Answers Reporter's Ouest ions 

[Text! "China has irreversibly embarked on the road of modernization. As far as the 
country is concerned, it has no other road for her to greet its future.” U.S Secretary 
of State George Shultz made these remarks this evening in response to this reporter's 
questions. Shultz had held talks with Chinese leaders for 7 hours. 

This was Mr Shultz's first official visit to China since he accompanied President 
Ronald Reagan on a visit to China in May of 1984. 

[Reporter] Mr Secretary of State, after holding talks with senior Chinese leaders such 
as Deng Xiaoping, Li Xiannian, and Zhao Ziyang, do you think American entrepreneurs and 
investors should continue to take a step further in China, take a step backward, or 
just cautiously mark time in place? 

[Shultz] This question is really a question concerning the recent develepments in 
China and how to explain them. This question was raised just this morning by 
entrepreneurs outside China. Many other people, too — no doubt, from China itself -- 
closely watched these events and wanted to know how the problems would be explained. 
Let me briefly give you the information I got on these problems. First of all, though, 
no matter how outsiders like us approach these problems, we have to admit that China is 
starting to solve problems of great significance to the state. Its determination is so 
strong that it has left a deep impression on people. Now let me sum up my thoughts on 
this question in seven points: 

The first point is that I was informed during the talks that China had worked on these 
issues for many years and the effort could be traced at least to the Sun Yat-sen 
years. What is at issue now is how to carry cut modernization. To what extent should 
foreign models be used as reference and should China explore its own path? 

The second point is that I think everybody will agree that China has irreversibly 
embarked on the road of modernization and I was repeatedly told of this point. As far 
as this country is concerned, it has no other road for her to greet its future. As 
George Allen, the former coach of the Washington Redskins very often liked to say: 
"The future is at hand." 

The third point is also the point they wanted to stress to me, that is, modernization 
means opening up the country to the outside world. Those countries which can seize the 
opportunity to open themselves to the outside world will be the most relaxed and 
successful cowitries. Therefore, what I heard bere is that China must open its doors 
in two ways: One is openness to the outside world, which has been repeatedly stressed, 
and the other is openness inside, in other words, that means reform. 

The fourth point is that of the question already raised on whether openness is 
synonymous with total Westernization. With regard to (i ina, the reply I heard was an 
unequivocal “no.” China has a long-standing, unique culture, one that is well 
established. [paragraph continues] 


It will not mechanically copy anything from the Soviet Union or other countries, no 
more than it can or will copy anything from the West in an indiscriminate and 
oversimplified way. What I have heard is that China will adopt good ideas from other 
places as it takes the so-called socialist road and, moreover, a socialist road with 
Chinese characteristics. 

On my part, I came to the conclusion that openness is the key to future success. I 
firmly believe that China is making a serious effort to explore a balance to correctly 
use this key. This left a deep impression on people. 

The fifth point is, as I heard here, a very sincere view — current events should not 
be viewed as a retrogression to the past and not too distant years of restruction and 
suppression. China said to its friends — and I am ome of them — that Chinese 
nationals living abroad have not equated what is happening at present with the past 
exceptional practices and have termed it persecution or a movement. 

The source of the problem we are discussing today can be traced to the previous 
generations of the Chinese people. However, as far as ‘ know, it does not represent a 
turning point for a deviation from the developmental tre d over the last few years. 

From this I derived ay sixth point, which was also repeatedly stressed. There are good 
reasons to explain why the turning point will not occur. China has been condu-ting 
reforms for meay years which are highly effective in practice and have brought an 
improvement in the Chinese people's living standards. This shows that China will not 
abandon its effective reforms. This is what the Chinese leaders have told me and I 
must say this is reasonable. I have no reason to doubt the sincerity shown when they 
made these remarks. I can say with certainty that this idea came from the highest 
echelons of leadership. 

The last point is one I think is irrefutable today, that is, greater openness is 
necessary. A country with the most creative people's thinking which bans openness will 
stagnate and the future will leave it behind at an astonishing speed. It will be 
difficult for it to catch up. So I was told that China would continue to pursue its 
Chinese-style openness. China will become modernized in the future. At present China 
has unique problems and unique strength. I was informed that under the future 
objective and real conditions, China would use its strength to solve its difficulties 
on an irrefutably severe road. 

At this point, it had already taken Mr Shultz 6 and 1/2 minutes to answer my question. 
Taking up the thread of the conversation, he humorously told this reporter that I had 
gotten more than I expected and that he believes such an issue is an important one. As 
you have seen, he said, I have pondered the issue and worked hard to explain my 
thoughts on this conscientiously and in greater detail. 

With a little joke by the Secretary of State, the se ingly excessively severe 
atmosphere resulting from the strict security checks prior to the meeting became 
considerably relaxed all at once. 



0061151 Beijing XINHUA in English 1059 GMT 4 Mar 87 

("It's Time for South Korean Authorities To Show Sincerity for Reunification (by Gao 
Haorong)" — XINHUA head) ine] 

[Text] Pyongyang, March 4 (XINHUA) — The Government of the Democratic People's 
Republic of Korea (DPRK) has in the past year made several moves for the reunification 
of the country. But the South Korean authorities have so far failed to respond toward 
this end. 

President Kim Il-song proposed at the end of 1986 that the two sides hold high-level 
political and military talks and the premier and the minister of the People's Armed 
Forces also put forward concrete proposals in regard to the talks. However, the South 
side differed by proposing that the two sides resume parliamentary, economic and Red 
Cross dialogues and reiterated its demand for holding summit talks. To break the 
deadlock, DPRK Premier Yi Kun-mo and Minister of the People's Armed Forces 0 Chin-u 
wrote a joint letter yesterday to their counterparts No Sin-yong and Yi Ki-paek in the 

They compromised in the letter that the two sides can renew the parliamentary, economic 
and Red Cross dialogues while holding the high-level political and military talks. 

In addition, the DPRK leaders withdrew their demand that the two sides discuss the 
controversial “Kumgangsan Power Station issue only on condition that the South 
apologizes for their action in the past, saying they can discuss the issue in the 
high-level talks. 

The DPRK leaders also came to terms by proposing that after the successful resumption 
of these talks and dialogues, the summit talks can be held as soon as possible. 

It should be noted that these compromises by the DPRK were made against the background 
that the United States and South Korea are engaged in their present large-scale “Team 
Spirit 87" military maneuver. 

The DPRK has gone further by proposing that the two sides hold the first high-level 
political and military talks on March 26, breaking its traditional practise of refusing 
to have dialogues with the South while the latter holds military exercises with the 
United States. Observers here believe that the compromises by the DPRK show the 
sincerity of the North for the reunification of Korea. In light of the DPRK's 
generosity, South Korean authorities may show a bit of sincerity and be more flexible. 

OW170945 Beijing BEIJING REVIEW in English 16 Mar 87 p 12 

[Article by Xu Baokang: A Sincere Proposal To Break the Deadlock") 

[Text] On March 3, DPRK Premier Yi Kun-mo and Minister of [The] People's Armed Forces 
0 Chin-u sent a letter to their South Korean counterparts No Sin-yong and Yi Ki-paek 
proposing to hold a round of North-South, high-level, political and military 
conferences. The letter also suggests resuming the dialogue between the two 
parliaments, their economic leaders and Red Cross organizations. 


The government of the DPRK has, in the past year, made several moves for the 
reunification of the country. President Kim Il-song made a similar proposal at the end 
of 1986. Then again on January 10 and 28 of this year, the DPRK premier and minister 
of the People's Armed Forces sent separate letters, putting forward concrete proposals 
with regard to the talks. 

However, the South demurred, proposing that the two sides resume only the 
parliamentary, economic and Red C-oss dialogues, and reiterated a demand to hold a 
summit conference between the two top leaders of both sides. 

To break the deadlock, DPRK Premier Yi Kun-mo and Minister of the People's Armed Forces 
9 Chin-u wrote the January letters to their counterparts in se South in which they 
agreed to reopen the gultichannel dialogues, but noted that for the summit talks to be 
a success it would require more time for a full preparation and a more favourable 

atmosphere were needed. 

It should be noted that these proposals by the DPRK were made against the background of 
joint U.S.-South Korea silitary manoeuvres in South Korea. The large-scale “Team 
Spirit-87" military manoeuvre has been a major barrier to holding North-South talks. 
In 1985, the North-South talks had to be suspended as a result of the "Team Spirit 85“ 
military manoeuvre. The present “Team Spirit 87" military manoeuvre has damaged the 
atmopshere for holding any North-South talks, but the DPRK, taking the interest of the 
whole Korean nation into account, made some concessions. 

Meanwhile, in the latest letter, the DPRK also agreed to discuss the issue of the 
construction of the Kumgangsan Power Station in future high-level political and 
military talks. This project has been a major point of contention between the two 
sides. South Korea strongly opposes the construction of the Kimgangsan Power Station, 
believing that it would pose a grave threat to its security. The DPRK has reiterated 
that the project is aimed at peaceful use and would not constitute a threat to the 

OW111219 Tokyo KYODO in English 1211 GMT 11 Mar 87 

[rent]! Beijing, March 11 KYODO — China issued its strongest protest yet against an 
Osaka High Court ruling Wednesday, saying its national interest had been damaged. 

Ihe ruling, last week, granted Taiwan the ownership of a dormitory used by Chinese 
students in Japan. 

The protest was made by the Foreign Ministry in response to an inquiry by KYODO NEWS 
SERVICE over a Japanese representation sent to the Chinese Government over the issue. 

The note delivered to the Foreign Ministry by Japanese Ambassador Yosuke Nakae Friday 
said the government was unable to intervene over the ruling under the democratic 

principle of the separation of powers. 

The Foreign Ministry statement said the ruling concerned an important political 
principle involving relations between Japan and China. 

It said the ruling was designed to create two Chinas and caused damage to China's 
national interests. 


Explains Reform 

OW171524 Beijing XINHUA in English 1516 GMT 17 Mar 87 

[Text]! Rome, March 17 (XINHUA) — China's foreign minister explained his country's 
domestic reforms and peaceful foreign policy during meetings with Italy's leaders this 
morning on the second day of his visit. 

Foreign Minister and State Councillor Wu Xueqian also expressed satisfaction with the 
development of bilateral ties during talks with Italy's President Francesco Cossiga, 
Senate President Amintore Fanfani and Chamber of Deputies President Lecnilde Jotti. 

Cossiga said China's achievements would play an important part in world peace, 
stability and development. 

Italy and other Western countries considered China's economic restructuring important 
and were willing to help China, Cossiga added. 

Wu arrived here yesterday afternoon after visiting Bulgaria, the first visit by a 
senior Chinese diplomat since 1949. 

Wu Meets Craxi 
0W180720 Beijing XINHUA in English 0711 GMT 18 Mar 87 

[Text]! Rome, March 17 (XINHUA) — The Italian Prime Minister, Bettino Craxi, today met 
with the visiting Chinese Foreign Minister, Wu Xueqian. During the meeting this 
afternoon, Wu, also a state councillor, said that China will unswervingly adhere to its 
reform and open policies. 

Wu talked on China's domestic situation and conveyed greetings from Chinese leaders 
Deng Xiaoping and Premier Zhao Ziyang on the second day of his visit. 

Craxi said Italy and China should increase exchange visite and other bilateral contacts 
to promote better understanding. Italy will strive to develop politial relations and 
will also provide economic aid, he added. 

This is the fourth stop on Wu's sever-nation European tour. He arrived Monday after 
visiting Czechoslovakia, Poland and Bulgaria. After Italy, he will visit the tiny 
republic of San Marino, Federal Germany and Switzerland. 

AU241301 Rome ANSA in English 1250 GMT 24 Feb 87 
[Text] Beijing, 24 Feb (ANSA) -- Italy and China signed a new three-year economic 

cooperation agreement Monday which includes a package of Italian aid credits and grants 
totalling 190 million dollars for industrial projects in China. 


Signing for Italy was the head of the Foreign Ministry's Department of Development 
Cooperation, Patrizio Schmidlin. 

Chinese Deputy Premier Yao Yilin, discussing the third Sino-Italian agreement of its 
type signed since 1981 with the Italian delegation, said his country is satisfied with 
the course of bilateral economic relations and intends to continue unchanged its policy 

of opening abroad. 

The new agreesent will provide funding for Italian participation in areas which China 
has given priority to. These include energy, transport and chemicals. The two sides 
will also explore prospects fox work civilian infrastructure and telecommunications. 

Of the 190 million dollars allocated for the accord, forty million is in the form of 
grants and the remaining 150 million in the form of aid credits. The grants will be 
used to finance projects in the fields of public health, agriculture, and professional 

The aid credits will be extended at low interest rates. 


OW131302 Beijing XINHUA in English 1100 GMT 13 Mar 87 

[Text] Beijing, March 13 (XINHUA) — Chen Pixian, member of the Secretariat of the 
Chinese Communist Party Central Commitee, met here today a women's delegation from the 
Italian Communist Party. 

Chen welcomed the delegation on behalf of the Chinese Communist Party Central 
Commitee. It is the first woman's delegation sent to China by the Italian Communist 
Party, and is led by Paola Bottoni, member of the Central Committee, secretary of the 
Emilia-Romagna Region of the Italian Communist Party and chairman of its women's 

Chen briefed the guests on China's political and economic situation. 

OW171220 Beijing XINHUA in English 1212 GMT 17 Mar 87 

[Text] Beijing, March 17 (XINHUA) -- Chinese State Councillor Song Ping met and had a 
cordial conversation with Turkist Minister of State Vehbi Dincerler and his party here 


After meeting, Song, who is also minister in charge of the State Planning Commission, 
gave a dinner for the Turkish visitors. 

Turkish Ambassador to China Behic Hazer attended the meeting and dinner. 

Earlier today, Chinese Minister in Charge of the State Economic Commission Lu Dong held 
t Ike with Dincerler and his party. 



OW160842 Beijing XINHUA in English 0816 GMT 16 Mar 87 

[Text] Beijing, March 16 (XINHUA) — Jeanne Sauve, governor-general of Canada, and her 
husband Maurice Sauve arrived here by special plane for a state visit to China at the 
invitation of President Li Xiannian. Jeanne Sauve is the first Canadian 
governor-general to visit China. It is a return visit to President Li's Canadian tour 
in 1985. 

She was greeted at the airport by Cui Naifu, chairman of the Chinese Government 
reception committee and minister of civil affairs, and his wife and China's Vice 
Foreign Minister Zhu Qizhen. 

Accompanying her on the visit are Monique Landry, minister of external relations, and 
her husband, as well as other high-ranking officials in the government. While in 
Beijing Jeanne Sauve is expected to meet with Chinese leaders. 

Tomorrow morning President Li Xiannian will give a welcoming ceremony for the 
governor-general and her party at the plaza east to the Great Hall of the People. 

Li Xiannian Welcomes Sauve 
OW170302 Beijing XINHUA in English 0252 GMT 17 Mar 87 

[Text] Beijing, March 17 (¥{NHUA) — Chinese President Li Xiannian presided over a 
ceremony here this morning welcoming Canadian Governor-General Jeanne Sauve who arrived 
here yesterday on a state visit to China with her husband Maurice Sauve. 

The ceremony which was held at the plaza east to the Great Hall of the People began 
with the playing of the national anthems of Canada and China amid the 21-gun salute. 

At 10 a.m. when the Canadian governor-general arrived at the plaza in the company of 
Cui Naifu, chairman of the Chinese Government reception committee and minister of civil 
affairs, she was warmly greeted by President Li and his wife Lin Jiamei. President Li, 
who visited Canada in 1985, said that he was very glad to wet her again. 

Accompanied by President Li, Mrs Sauve reviewed a guard of honor made up of men of 
three services of the Chinese People's Liberation Army. She met with 300 youngsters 
waving bouquets and streamers and dancing. 

Present on the occasion were State Councillor Ji Pengfei and his wife Xu Hanbing and 
leading members of other government departments concerned. 

Also present were Canadian Minister of External Relations Monique Landry and her 
husband, as well as other high-ranking officials in the government who are accompanying 
the governor-general on the visit. 

After the ceremony Li Xiannian met Mrs Sauve and her party in the Great Hall of the 


Li, Sauve Hold Talks 
OW170832 Beijing XINHUA in English 0822 GMT 17 Mar 87 

[rent]! Beijing, March 17 (XINHUA) — Chinese President Li Xiannian met with Canadian 
Governor-General Jeanne Sauve and her party in the Great Hall of the People here this 
morning. This is the second meeting betweer the two leaders in less than years. 

In a nearly one-hour-long meeting, Li recalled the days when he first met Mrs Sauve 
during his Canadian tour in 1985 and thanked Mrs and Mr Sauve for giving hia [a) ware 

reception during the visit. 

Mrs Sauve who visited China in 1973 in the capacity of minister of science and 
technology said during her current visit to China she expects to see China's progress 
since her last China tour and find out what the two countries can do in the field of 
their friendly cooperation. 

Li spoke highly of the fact that Mrs Sauve and the successive Canadian Governments have 
consistently followed a friendly policy towards China and developed the Sino-Canadian 

He expressed the belief that Mrs Sauve's visit will promote frivadship and exchanges 
between the two countries and the further growth of the friendly re! ations. 

On [the] domestic situation, Li said some people in foreign countries were worried 
about a change in China's policy of opening to the outside world as a result of its 
current struggle against bourgeois liberalization. 

He said: “I'd like to tell the governor-general that China's political line and all 
policies have been correct and remarkable progress achieved in its construction since 
the Chinese Communist Party convened its Third Plenary Session of the IIth Central 
Committee. So there are no reasons for us to change our political line and policies.” 

Li reaffirmed: “The way to oppose bourgeois liberalization is to present facts and 
reason things out with a view to maintaining a correct political orientation. In this 
regard, we will never broaden the scope.” 

On open policy, Li said: “It is our hope that China will be opened more widely to the 
outside world and will further speed up its development.” 

During the meeting the two sides also exchanged views on international issues of common 
interest. Present were Li Xiannian's wife Lin Jiamei, State Councillor Ji Pengfei and 
his wife Xu Hanbing. 

Li Stresses Open Policy 
OW171343 Beijing XINHUA in English 1338 GMT 17 Mar 87 
[Text] Beijing, March 17 (XINHUA) — Chinese President Li Xiannian reiterated here 

today that China will continue its reforms and open policy, and further its exchanges 
and mutually beneficial cooperation with all friendly countries, including Carada. 


The Chinese president made this remark at a banquet he gave to welcome visiting 
Canadian Governor-General Jeanne Sauve and her party here this evening. 

In his toast, Li said that China and Canada, both peace-loving countries, share many 
ideatical or similar views on international issues and have the common desire to expand 
mutually beneficial bilateral cooperation. 

He said that Sivo-Canadian friendship has a solid foundation Since Prime Minister 
Mulroney's visit to China last year, there have been fresh and substantial results 
emerging from tb friendly bilateral cooperation in the political, economic, scientific 
and technological, cultural, educational and other fields. 

He noted that departments concerned of the two countries have deld discussions several 
times on the use of various kinds of Canadian loans and assistance to China, and made 
satisfactory progress in this connection. 

He disclosed that during the governor- general e visit, officials of the two countries 
will make friendly contacts to explore new channels for further enhancing the friendly 
cooperation between the two countries. 

He said that the Canadian governor-general is an outstanding stateswoman as well as an 
old friend of the Chinese people. 

He quoted the governor-general as saying: “Differences may exist in the principles and 
methods adopted by the two countries to define their goals, but they do not hamper our 
effective cooperation.” 

He said that he agreed with such a view and expressed the belief that the visit of the 
Canadian governor-general would further promote the friendly cooperation between the 
two countries. 

Recalling her visit to China in 1973, Sauve said that while the treasures of its 
heritage have been retained, China now presents a new face to the world. She said that 
she and her party had come to obtain a better understanding of New China. 

“We have discovered common interests, and become aware of the advantages of maintaining 
relations that can only benefit our two countries and contribute to the development of 
our peoples,” she added. 

She repeated that Canada would like to continue its exchanges with China, exch..1ges 
that in the years to come will benefit both countries and will consolidate the 

foundations the two countries have already laid. 

She hoped that the two countries would examine other possibilities in every area of 
business, industry, research, medicine, education and technology. 

"We seek the means to help one another and the way toward achievements that will 
contribute to improved conditions for our citizens. The undertakings that we have 
begun together show that we can keep on working hand in hand,” she said. 


Among those present at the banquet were President Li's wife Lin Jiamei, Chinese Sta 
Councillor Ji Pengfei and the Canadian governor-general s husband, Maurice Sauve. 

The governor-general gave a tea party earlier today for Chinese officials who have 
visited or will visit Canada. Chinese Vice-Premier Li Peng and several ministers 

Minister Awards Students 
OW171632 Beijing XINHUA in English 1534 GMT 17 Mar 87 

[Text] Beijing, March 17 (XINHUA), -- Monique Landry, Canadian minister of external 
relations, today presented certificates to 29 Chinese students trained in Canada. 

She made the presentatioin at the Beijing University of International Business and 
E:onomics. The trainees were students of the China-Canada Human Development Training 
rrogram sponsored by the Chinese Ministry of Foreign Economic Relations and Trade and 
the Canadian International Development Agency. 

The program was set up in 1983 for the purpose of improving the professional ability of 
Chinese managerial staff and technicians in different fields. Since January 1985, some 
178 trainees have completed their training in Canada and have returned to China. 

Landry said that the training program adheres to the principles of cooperation and 
mutual benefit. 

Landry arrived in Beijing coday in the company of Governor-General of Canada Jeanne 

Landry and her party also visited the China-Canada Language Training Center at Beijing 
Teachers University. 

0051112 Beijing KINHUA in English 1327 GMT 5 Mar 87 

[Text] Beijing, March 5 (XINHUA) — Vice-Preside:t of the All-China Federation of 
Trade Unions Luo Gan, on behalf of President Ni Zhifu, met and feted a delegation from 
the Confederation of the United Trade Unions of Costa Rica led by its General Secretary 
Orlando Solano here this evening. 

The visitors arrived here earlier today for a friendly visit to China at the invitation 
of the host federation. Besides Beijing, they will also visit Shanghai, Suzhou, 

Hangzhou and Guangzhou. 
Meet NPC Vice Chairman 

OWO70816 Beijing XINHUA in English 0646 GMT 7 Mar 87 

[Text] Beijing, March 7 (XINHUA) — Liao Hansheng, vice-chairman of the Standing 
Committee of the National People's Congress, met here today a delegation from the 
Unitarian [as received] Confederation of Workers of Costa Rica, led by its General 
Secretary Orlando Solano. 

I. 18 Mar 87 2 114 Kl 


OW171335 Beijing KINHUA Domestic Service in Chinese 0256 GT 17 Mar 87 

[rent] Beijing, 17 Mar (XINHUA) -- To meet the needs arising from reform and opening 
to the outside word, and to enable tariffs to play a more efficient role in regulating 
imports and exports and in protecting and spurring domestic production, the State 
Council has decided to set up a tariff and tax regulation committee. 

The major responsibilities of the committee are: to propose policies and principles 
for drawing up or revising “tariff regulations” and import and export tax regulations;” 
to examine draft revisions of tax regulations; to draw temporary tariff rates 
(including import regulatory tariff rates); and to decide on local regulatory tariff 

The State Council has decided to appoint Wang Binggian, state councillor and minister 
of finance, chairman of the comittec, and Dai Jie, director of the general 
administration of customs; Tian Yinong, vice minister of finance; and Wang Pinging, 
vice minister of foreign economic relations and trade, vice chairmen of the committee. 
The office of the committee will be located at the General Administration of Customs 

OW180521 Beijing XINHUA Domestic Service in Chinese 0742 GMT 17 Mar 87 

[Trent Beijing, 17 Mar (XINHUA) — The second plenary session of the 14th meeting of 
the Sixth CPPCC Standing Committee was held at the auditorium of the CPPCC National 
Committee this morning. 

Vice Chairman of the CPPCC National Committee Liu Lantao presided over today's meeting. 

The meeting examinet the draft report on the work of the Standing Committee of the 
Sixth CPPCC National Committee and the draft report on the handling of motions since 
the fourth meeting of the Sixth CPPCC National Committee. 

The meeting approved the decision electing 46 new members of the Sixth CPPCC National 
Committee to fill the vacancies. 

The meeting also examined a written report on visits to the Federal Republic of 
Germany, Austria, Belgium, and Czechoslovakia by delegations of the CPPCC National 
Committee, a written report on visiting and inspecting the Longyan old revolutionary 
base areas in Fujian Province, Guangxi Zhuang Autonomous Region, and Hainan Dao, a 
written report on speeding up the comprehensive development of the Panxi area, and a 
written report on suggestions rc,arding the administration of traditional Chinese 
medicine, and the import of technology. 

Vice chairmen of the CPPCC National Committee attending the meeting were Yang Jingren, 
La Dingyi, Cheng Zihua, Kang Keqing, Qian Changehao, Yang Chengwu, Lu Zhengcao, Zhou 
Peiyuan, Burhan Shahidi, Dent Zhaoxiang, Fei Kiaotong, Zhao Puchu, Liu Jingji, and Wang 

I. 18 Mar 87 * 2 CHINA 

HKOG1440 Beijing JIEFANGJUN BAO in Chinese 27 Feb 87 p 1 

{[Editorial: “Good Regulations on the Army's Political Work in the New terte“ 

[Text] “The regulations of the Military Commission of the CPC Central Committee on the 
Army's political work in the mew period,” which were formulated at an enlarged weet ing 
of the Military Commission of the CPC Central Committee in December last year after 
holding full discussion, soliciting opinions from all parts, and making repeated 
revision, have been officially promulgated with the approval of the CPC Central 
Committee. Under the guidance of Marxism-Leninism, Mao Zedong Thought and on the basis 
of the party's line, principles, and policies since the 34 Plenary Session of the Lith 
CPC Central Committee, the “regulations” have blazed new trails on the basis of 
inheriting the Army's good tradition in political work, and correctly expounded and 
defined the guiding thought, main tasks, policies and basic methods of the Army's 
political work under the new situation of reform, opening up, and a strategic change in 
the guiding thought for Army building. The regulations play a very important and 
long-ters guiding role in strengthening the work of building the Army into a 
revolutionary, modernized, and regular Army and in fulfilling the glorious task of 
defending and building the motherland. The regulations are good regulations for 
strengthening the Army's political work in the new period and are a historic document. 

Political work is our Army's lifeline. This is a truth that has been proved repeatedly 
in the practice of the Army's struggle. Now that our Army has entered a new historical 
period, we are confronted with many new situations and problems in Army building. We 
must firmly seize the favorable opportunity provided by the relatively peaceful 
environment and take full advantage of the good conditions created by reform, opening 
up, and invigoration to strengthen the modernization drive and the building of 
spiritual civilization in the Army. We must also guard against carelessness and 
slackening, and resist the invasion of decadent capitalist and feudalist ideas. We 
must not only arouse the enthusiasm of officers and soldiers for learning and mastering 
scientific and cultural knowledge, but must also guide them to study earnestly 
Marxism-Leninism, and Mao Zedong Thought, to raise their political consciousness, and 
to temper themselves in struggle. We must not only make the vast number of commanders 
and fighters have confidence in the future of the socialist motherland and the Army, 
but must also guide them in fully understanding the complex and arduous nature of the 
modernization drive, to correctly handle the relationship between the state, the Army, 
and individuals, and to carry forward the spirit of working and struggling hard and 
being ready to dedicate oneself. All these are closely related to effective political 
work. At present, a struggle against bourgeois liberalization is being carried out 
within our party, mainly in the political and ideological field. To make everyone 
understand the nature and far-reaching significance of this struggle, raise their 
consciousness in upholding the four cardinal principles, and resolutely and steadfastly 
stand in the forefront of the struggle, we must also strengthen political and 
ideological work. & large sumber of facts have prvved that we must not weaken 
political work even a little in the new historical period, otherwise we will make 
historic mistakes. To meet this demand in the new period, the “regulations” have 
provided us with a basis for properly carrying out political work and a powerful 
ideological weapon for fighting bourgeois liberalization. 

To properly carry out political work in the new period, we must first have a cluar-cut 
guiding thought. On the one hand, the “regulations” expounded our army's historical 
responsibility and the role and position of political work. [paragraph continues! 

1. 18 Mer 87 41 An 

Thesc qualities are evaluated from the high plane of fulfilling tree principal tasks, 
namely, building socialist eodernization, reunifying the motherland, and fighting 
hegemoniss and safeguarding world peace. On the other hand, the “regulations” made « 
hictorical review of the Army's political work, and especially examined, in an-all 
round way, the damage and inflwence caused by Lin Biao and the “gang of four” to 
political work. On this basis, the “regulations” logically put forth the guiding 
thought for the Army's political work in the new period, namely, to serve our country's 
socialist modernization drive; to serve the purpose of building the Army into «a 
modernized, regular, and revolutionary army; to ensure the army's be ute leadership 
over the army, and its nature as a people's Army; to ensure the building of sucialist 
spiritual civilization in the Army; to ensure unity within the Army and the unity 
between the Army and government and between the Army and the people; and to ensure the 
upgrading of the Army's combat strength end the fulfillment of various military tasks. 
The “regulations” explicitly pointed owt: Political work is ovr Army's lifeline. This 
is specifically reflected in the above efforts to serve and ensure things. This has 
fundamentally pointed out the orientation of political work and correctly handled the 
relationships between politics and political work; between political work and the 
party's leadership; between political work organs and agilitary, logistical, and 
scientific research organs. It has solved a vague and controversial problem during a 
period of time and provided ample scope for carrying out political work. This is a 
great achievrment in making order out of chaos in the field of political work and a 
creative achievement in the theory of political work. 

Blazing new trails on the basis of inheriting fine traditions is an important topic in 
political work in the new period. Our Army has formed « good tradition of conducting 
political work in its protracted practice of revolutionary struggle. We must treasure 
these traditions, because they reflect the nature of our Army and are the most vital 
principles and vzlements of our Army's political work. They are very useful in 
strengthening Army building and upgradixg the Army's combat strength. We must adhere 
to them at all times. However, these traditions must be developed continuously in 
connection with new situations. We must sum up new experiences in practice so as to 
give the traditions new substance. Without this inheritance, there will be no 
foundation for blazing mew trails; without blazing new trails, there will be no genuine 
inheritance. The “regulations” put forth the policy of “respecting history, basing our 
work on reality, and having an eye on the future,” which has summarized in a scientific 
way the basic principle and fine traditions of the Army's political work; seriously 
summed up the new experiences proved as dynamic in the practice over the past few 
years; greatly enriched our Army's political work treasure house; and made our Army's 
political work more systematic, theoretical, scientific, and standardized. The 
implementation of the “regulations” will certainly promote great development ir 
political work. 

How should politica, work be carried owt under the new situation? This is a question 
everyone wishes to snewer urgently. la accordance with the spirit of the resolution 
made by the CPC Cmtral Committee on the guiding principle for building spiritual 
civilisation and the guiding thought for the Army's political work and in connection 
with the Army's reality, the “regulations” proposed the following 8 tasks: to 
strengthen ideological education with emphasis on ideals and discipline; to perfect and 
develop the Army's democratic life; to foster the Army's fine style; to pay attention 
to ecientific and cultural education and train qualified personnel for Army and 
civilian purposes; to strengthen political work in military training, scientific 
research, and logistics; to vigorously carry owt the activities of soldiers and 
civilians jointly building spiritual civilizution; to properly carry out grass-roots 
political work; and to strengthen the building of cadre ranks. The “regulations” also 
stressed that party committees, at all levels, gust become a strong core in leading and 
uniting all armed forces. [paragraph continues! 

I. 18 Mer 87 x * CRINA 

The regulations have sot only put forth tasks, t have also defined the principle: and 
policies that mest be adhered to. They sot only put forth specific demands and 
geasures suited to the current situation, but have aleo summerized some basir 
experiences with reguicrity. Provided that we act upon these and carry them out in + 
down-to-earth manner, it is possible to bring inte full play the role of political wor« 
in serving and ensuring the building of our /rmy into « modernized and revolutionary 


The “reg-lations™ have integrated theory with practice, and inheritance with 
development, and have expounded « series of basic problems in the Army's political 
work. With substantial contents, the regulations have strong theoretical and 
ideological features and aim to solve practical problem. They are « programmatic 
document for strengthening the Army's political work in the new period. All comrades 
in the Army, especially party committees, political organs, and political work cadres 
at all levels must earnestly study and fully understand the regulations and seriously 
implement them in practical work. This is not an ene job and hard work is needed. We 
should not study and im lement the regulations just for a short time, but gust often 
study and constantly implement the regulations in connection with work and ideological 
reality in the Army. Provided that e earnestly study wd properly isplement the 
regulations, there will be « new situation in the Army's political work and Army 

HK171040 Beijing JIEFANGJUN BAO in Chinese 3 Mar 87 » 2 

[Report: “Regulations on Auditing Work of the Chinese People's Liberation Army (For 
Trial Implementat n 

{Text} With the approval of Central Military Commission Chairman Deng Kisoping, the 
“Regulations on Auditing Work of the Chinese People's Liberation Army” were promulgated 
and put into trial implementation throughout the Army on 20 February. The full text of 
the regulations is as follows: 

Chapter 1. General Provisions 

Article 1. These regulations are formilated in light of the PRC Constitution and the 
State Council's stipulation on setting up auditing organs in the Army and exercising 
auditing supervision. 

Article 2. The Army's audit work is 4 component of the state's auditing system. The 
auditing organs in the Army are institutions to exercise auditing supervision on ene 

of the Arey. 

Article 3. The Army's Auditing Department exercises audit supervision over financial 
income and expenditures; the management of equipment, materials, and other property; 
and the economic results of various departments, enterprises, institutions, and other 
production units at various levels to strictly enforce the Army's financial discipline, 
achieve better economic results in the use of funds and materials, promote the 
fulfillment of various tasks, and facilitate the Army's process of revol« ‘onelization, 
modernization, and regularization. 

Article 4. The Army's auditing organs should conduct auditing supervision in light of 
state laws, the economic and financial laws and regulations, and the Army's unified 
financial regulations and relevant rules. 

I. 18 Mar 87 K 5 CHINA 

The Army's auditing organs independently exercise their audit supervision power without 
being interfered in by any unit or individual. 

Chapter 2: Auditing Organs 

Article 5. Auditing organs at various levels in the Army are set up in light of the 
relevant stipulations laid down by the Central Military Commission. 

In units in which no auditing organs are set up or no auditing personnel are appointed, 
the finance section of the Logistics Department is responsible for the audit work. 

Auditing organs should be set up in all large and medium-sized enterprises and their 
management departments at the upper level. 

Article 6. The audit work of auditing organs at various levels is subject to the 
leadership of the chief of the unit, and the auditing organs are subordinate to the 
Logistics Department. Their work is organized and unfolded in light of the Army's 
logistics and supply system. 

The PLA Auditing Bureau is under the direct leadership of the leader of the Central 
Military Commission. It is responsible for leading and organizing the whole Army's 
auditing work. Its routine work is guided by the PRC Auditing Administration. It is 
answerable to the leader of the Central Military Commission and the State Auditing 

The auditing bureaus of various military regions are under the leadership ot the 
commanders of the military regions and are responsible for the audit work at the 
military region level and in the subordinate units. Their routine work is subject to 
the guidance of the PLA Auditing Bureau. They are answerable to the commanders of the 
military regions and to the PLA Auditing Bureau. 

The auditing offices of various Army units are under the leadership of the leaders of 
the Army units and are responsible for the audit work at the same level and in the 
subordinate units. Their routine work is subject to the guidance of the auditing 
organs at the upper level. They are answerable to the unit leaders and the auditing 
organs at the upper levels. 

The auditing organs of the large and medium-sized enterprises and the management 
departments concerned are under the leadership of the principal leaders of the 
enterprises and departments and are responsible for auditing the financial income and 
expenditures and economic results of their enterprises and departments. Their routine 
auditing work is subject to the guidance of the auditing organs at the upper level. 
They are answerable to the leaders of the enterprises and departments and to the 
auditing organs at the upper level. 

Chapter 4. The Main Tasks, Functions, and Powers of the Auditing Organs 
Article 7. The main tasks of the auditing organs include: 

1. To carry out audit supervision over the use of budgetary funds, implementation of 
the budget, and the income and expenditure of extrabudgetary funds, other funds, and 
foreign exchange funds, as well as their turning over to the upper level. 

I. 18 Mar 87 K 6 CHINA 

2. To carry out audit supervision over the purchase of equipment and the use results 
of important materials and Army property. 

3. To carry out audit supervision over the plans, appropriations, and final accounts 
for capital construction projects. 

4. To carry out audit supervision over the business activities and economic results of 
the enterprises and other production units. 

5. To carry out audit supervision over the strictness and effectiveness of the control systes. 

6. To set up special audit cases to investigate such lavw-breaking and 
discipline-breaking actions as embezzling state funds or state property, causing 
serious waste, and harming the interests of the state and the Army. 

7. To execute various auditing regulations. To participate in the formulation of 
auditing regulations and system and participate in the research of major economic and 
financial policies and regulations. To fulfill the audit tasks assigned by the leader 
of the unit or by the auditing organs at the upper level. 

8. To organize the professional training of the auditing personnel, carry out academic 
studies, and exchange information and audit work experience with each other. 

Article 8. The main functions and powers of the auditing organs include: 

1. To examine the plans, budgets, final accounts, routine accounts, vouchers, 
statements, materials, property, and 11 relevant documents and data of the units 
subject to the audit. The audited units must provide all such things for auditing and 
must not refuse to do so or try to conceal anything. For projects that are required by 
the auditing organs to be subject to audit in advance or to submit a financial report 
for audit and approval, their annual statements must first be approved by the auditing 
organ before they are submitted to the upper authorities. If the Finance Department 
has any different opinion, they should consult with the auditing organ to reach 


2. To have the right to attend the relevant meeting of the unit or the audited unit. 

3. To have the power to investigate and verify the problems discovered in the audit 
process, to take proof materials, and to copy, reproduce, photograph, and take record 
of the relevant documents, materials, and articles on the spot. The units, 
departments, and individuals concerned must actively cooperate with auditing organs and 
must not lay any obstacl to the investigation. 

4. To have the power to order the audited units to correct their actions in violation 
of the financial regulations of the state and the Army to check losses and waste, and 
the audited units and departments concerned must not refuse to accept these orders. 

I. 18 Mar 87 K 7 CHINA 

5. To have the power to make decisions on confiscating the illegal income of the 
law-breaking or discipline-violating units, freeze their funds or property, deduct or 
stop appropriations, and impose fines in light of the relevant state laws or the Army's 
relevant regulations, and to notify and supervise the execution of these decisions by 
the audite“ units and the departments concerned. The audited unit and the departments 
concerned must not refuse to execute these decisions. 

6. If a unit obstructs, rejects, or undermines audit work, the audit organ can, if 
necessary, take such actions as sealing the account books, funds, and property, then 
affix the responsibility of the direct responsible people and relevant leaders. 

7. To issue circulars on major cases of violating economic and finance discipline and 
commend units and individuals of outstanding performance in observing and maintaining 
economic and financial discipline. 

Chapter 4: The Procedures of Audit Work 

Article 9. Working out the plan for audit work. The PLA Auditing Bureau will work out 
the whole Army's annual audit work plan in light of the Army's central task and the 
instructions of the leader of the Central Military Commission. The auditing organs at 
the military region level or below will work out their annual audit work plans in light 
of the annual plans of the upper auditing organs and the instructions of the leaders of 
their units and in connection with their actual conditions. Their work plans will be 
submitted to the unit leaders for approval and submitted to the upper auditing organ 
for record. 

Article 10. Determine the objects of audit and working out auditing schemes. The 
auditing organs at all levels, in light of their annual work plan and the tasks 
assigned by the upper leadership, will determine the concrete objects of audit and draw 
up audit work schemes, which include the scope, content, form, and time of audit. The 
work schemes will be submitted to the leadership for approval before they are executed. 

Article 11. Determine audit forms. The auditing organs, in light of concrete 
conditions, will take a variety of audit forms: 

1. Submitting reports for audit. In light of the audit work plan, the audited units 
and departments are required to regularly and irregularly submit their relevant 
financial statements, vouchers, account books, and other materials to the auditing 

organs for audit. 

All departments should submit their financial budgets, accounts, and relevant 
regulations and data in light of the stipulations to the audit organs. 

2. On-the-spot audit. In Light of the established audit schemes, auditing groups are 
sent to the audited units to conduct audit. 

J. Entrusting audit. The auditing organs entrust some units to conduct audit. 

4. Joint audit. The auditing organs join hands with other organs or departments in 
conducting audit. 

5. Other audit. Other audit forms are taken in light of different conditions. 

I. 18 Mar 87 K 8 CHINA 

Article 12. Issue audit notices. In light of the audit work schemes, the audit organs 
notify the audited unit about the scope, content, forms, requirements, and time of 

Article 13. Put forth audit reports and make audit decisions. After completing the 
audit, the auditing group will make a comprehensive study and write an audit report, 
which includes the scope and content of the audit, the problems discovered through 
audit, and the opinions and proposals for handling these problems. The audit report 
should be attached with proof materials and relevant data. The audited unit's reaction 
to the audit report should be learned, and the audited unit should submit its written 
opinion on the audit report within a set time. The audit report should be reexamined 
by the auditing organ that sent the auditing group and should be submitted to the 
auditing organ at the higher level and to the leader of the unit. According to the 
audit report, the auditing organ should make decisions on handling violations of the 
financial discipline of the state and the Army, notify the audited unit and department 
concerned, and supervise the implementation of this decision. For people who are 
responsible for serious violation of the state finance discipline, the auditing organ 
will put forth a proposal for disciplinary measures to the leading organ; those who 
violate criminal law should be sent to the judicial organ for punishment. 

Article 14. Double audii:. If the audited unit has any disagreement about the audit 
conclusions and decisions, it should appeal to the auditing organ at the higher level 
for double audit within 10 days. When receiving the double audit application, the 
auditing organ at the higher level should conduct the double audit within 30 days. 
This can be postponed in the case of special conditions. In the course of double 
audit, if any concealment and audit mistakes are discovered, the audit conclusion 
should be made again. The conclusions and decision of double audit should be conveyed 
to the audited unit and to the original auditing organ. In the period of double audit, 
the conclusion and decision of the first audit should be implemented. The auditing 
organ at the higher level has the right to correct improper conclusions and decisions 
made by the auditing organ at the lower level. 

Article 15. Keep audit files. The auditing organs at all levels must keep audit files 
for every audit item and case, and files should be kept regularly or on a long-term 
basis for the purpose of reference. The files must not be destroyed without the 
approval of the upper authorities. 

Chapter 5: Auditing Personnel 

Article 16. The auditing personnel must continuously improve their ideological and 
moral standards and scientific and cultural attainment, must adhere to the four 
cardinal principles, and should receive professional training. They should have 
comparatively high political consciousness, a strong sense of policy and discipline, 
and can serve the Army wholeheartedly. 

Article 17. The auditing personnel should study and master the state's financial and 
economic laws, regulations, and policies and the Army's financial affairs regulations 
and systems. They should be familiar with finance and accounting theory, have economic 
management and military knowledge, and have professional auditing knowledge. 

Article 18. The auditing personnel must abide by law and discipline, be honest in 
performing their public functions, be realistic and impartial, be keen on making 
investigatons and studies, rely on the masses, be faithful to their public duties, and 
tightly keep secrets. 

Article 19. Auditing personnel who make remartable achievements in their work should 
be commended and praised. [paragraph continues] 


I. 18 Mar 87 K 9 CHINA 

Those »ho neglect their duties and violate law and discipline should be strictly 
punished; those who violate criminal law must be brought to court for trial and 


Article 20. The auditing personnel should remain relatively stable. The appointment 
and removal of the responsible persons of the auditing organs should first be based on 
the opinion of the auditing organ at the higher level. 

Article 21. The auditing personnel are protected by law when they perform their 
auditing duties, and no unit or individual is allowed to retaliate against them. Those 
who so retaliate must be severely punished; and those who violate criminal law should 
be brought to court for trial and sentence. 

Article 22. The professional positions and titles of the auditing personnel are 
determined in light of the relevant stipulations of the state and the Army. 

Article 23. In light of the needs in auditing work, the auditing organs can hire 
professional people through public advertisement. In the tenure, the hired 
professionals enjoy the same powers and rights as the auditing personnel. 

Chapter 6: Supplementary Provisions 

Article 24. Units and individuals who violate these regulations will be punished and 
be subject to economic or administrative disciplinary measures; those who violate 
criminal law and who are directly responsible for the violation of criminal law will be 
brought to the judicial organs for punishment according to law. 

Article 25. These regulations are explained by the PLA Auditing Bureau. The auditing 
system and procedures are promulgated and implemented by the General Staff 
Headquarters, the General Political Department, and the General Logistics Department. 

Article 26. These regulations shall go into effect on the same date they were 


HK171118 Beijing JIEFANGJUN BAO in Chinese 3 Mar 87 p 2 

[Commentator's article: "Strengthen the Army's Auditing Work") 

[Text] Central Military Commission Chairman Deng Xiaoping signed and issued an order to 
implement the "PLA Regulations on Auditing Vork“ on a triai basis in the whole Army. 
This is the first integrated and systematic set of regulations on auditing work in our 
Army's history. Its promulgation is of great significance in promoting our Army's 
revolutionalization, modernization, and regularization. 

The construction of the Army must rely on certain economic strength, and all economic 
activities of the Army should be subject to auditing supervision. [paragraph continues] 

I. 18 Mar 87 K 10 CHINA 

If the Army's auditing work is handled properly, the limited funds and materials will 
achieve better economic results, which is favorable to both the Army's construction and 
the state's economic construction. If the dit ing work is neglected or relaxed and if 
there is no necessary financial supervision, the Army's funds and materials would not 
be used correctly and reasonably, which would add more econumic burdens to the state. 
The irregularities in economic management would also corrupt some people. In recent 
years, some 80 percent of the cases involving violation of law and discipline in the 
Army were economic cases. This also shows from the negative aspect that strengthening 
auditing supervision is not only a matter in the economic tield, but is also a 
necessary step for setting right the party style, enforcing the Army's discipline, and 
ensuring a correct ideological style among the troops. 

Strengthening auditing supervision over the military economy is an indispensable part 
of the Army's regularization. Our military economic work must be based on some 
established laws and must strictly observe these laws, and any violation of these laws 
must be checked. This is required by the need of the overall interests of the state 
and the Army, and is also a common desire of our officers and soldiers. It is a task 
in the fundamental construction that we must fulfill. Constant and regular auditing 
work can gradually replace the annual and additional financial examinations in the Army. 

In order to implement a law, we should first understand the law through serious study. 
Auditing work is a new subject in our Army's work, and many people still do not 
understand its task, significance, and role. We should, therefore, give publicity to 
it. The study of the auditing regulations should be taken as a part of the legal 
education among the officers and soldiers so that they will understand and support the 
auditing work. As the auditing work has just begun in our Army, the system has yet to 
be perfected, and the professional quality of the auditing personnel has yet to be 
raised. Meanwhile, some relevant work should also be coordinated. All this needs the 
full support of the party committees at all levels. The party committees should listen 
to the opinions of the auditing personnel and help them resolve actual difficulties. 
Cadres in charge of auditing work, at all levels, should diligently study professional 
knowledge, boldly participate in practice, continuously improve their ideological and 
p.ofessional quality, cooperate closely with the departments concerned, and open a good 
situation through their successful work. With all people's joint efforts, we will 
certainly open a road in handling the Army's auditing work. 

HK180336 Beijing JIEFANGJUN BAO in Chinese 10 Mar 87 p 1 

[Report: China Completes the Building of Her First Ground Satellite Communications 

[Text] China's first ground satellite communications station, which was built to ensure 
China's astronautic communications, recently passed the test of being linked to the 
international satellite communications network through the satellite launching center 
in Jiuquan. On 5 March, China received a special letter from the International 
Satellite Organization, which officially approved the connection of China's ground 
station with the existing international network. 

I. 18 Mar 87 K 11 CHINA 

In the past, China's astronautic communications mainly relied on wired and short-wave 
radio communications facilities. With the rapid development of the astronautic 
industry, it is urgently necessary for China to change the astronautic communications 
conditions. Therefore, the authorities concerned have decided to set up ground 
satellite communications stations in various launching centers, observation and 
monitoring centers, and space survey stations. The relevant factories subordinate to 
the Ministry of Astronautics Industry, relying on their own technical strength and 
learning from absorbing advanced foreign technologies, have solved a series of 
technical difficulties and problems for the building of our country's own astronautic 
communications network. The ground satellite communications station in the Jiuquan 
Satellite Launching Center is the first ground station of this kind in our country’s 
astronautic communications network. 

Satellite telecommunications will not only guarantee the unblocked conditions of 
telephone, telegraph, telex, and digital communications links and improve the quality 
of telecommunications, but can also immediately and clearly transmit data about the 
working conditions of the rockets and satellites before launching and about their 
flight orbits, parameters, and graphics to various observation and controlling 
stations. This will raise the level of astronavigation organization, comraand, 
observation, controlling, and automation. This technology will also enable our country 
to more smoothly promote the business of launching satellites for foreign clients. 


OW180343 Beijing XINHUA Domestic Service in Chinese 1140 GMT 17 Mar 87 
[By reporters Jie Yanzhen and Wu Dongf eng 

[Text] Nanjing, 17 Mar (XINHUA) -- Computer software, a rapidly developing science, 
has been gradually applied to Chinese military affairs. Currently, over 100 software 
programs and 1,000 subsystems are providing useful information for the Army, and 
serving its modernization drive. According to a recent disclosure by an expert of a 
relevant department, computer software has been extensively used by the Army in eight 
areas, including quantitative military strategy research, simulated w apon research and 
development, optimal battle plans, simulated educational training, scientific 
management of logistic supply, systematic troop management, and information services. 
For example, a group army under the Beijing Military Region has achieved marked results 
in applying fuzzy mathematics to reform its combat command system. Meanwhile, the 
headquarters of the Nanjing Military Region has successfully computerized its filing 
system. The hundreds of computer software programs developed by the Army in recent 
years are reasonably structured, functionally comprehensive, operationally steady and 
reliable, and highly efficient in material collation. They have reached an advanced 

world level. 


HK161526 Hong Kong ZHONGGUO XINWEN SHE in Chinese 0333 GMT 16 Mar 87 
[Report by reporter Xu Hong [1776 3126]: “Professor Li Yining's New Think ing“ 

[Text] Beijing, 16 Mer (ZHONGGUO XINWEN SHE) -- At the beginning of the new school 
term, Beijing University professor Li Yining put forth “the idea of a mixer." 

I. 18 Mar 87 K 12 CHINA 

This is new thinking on China's economic reform theories put forth since his return 
from lectures in Hong Kong in the first 10 days of January. In this idea, he links the 
market graphically with a large-sized mixer and equates various resources with 
ingredients to be mixed. He considers that after various resources are fed into the 
market, they should be allowed to operate continuously. After a given period of being 
“mixed,” they can possibly be deployed in a balanced and rational manner. 

He says that the force behind the operation of the market mechanism lies in enterprises 
and individuals involved in market activity. The more active they are, the smoother 
the operation of the market, with various resources fed into the market being made up 
more freely and effectively. 

This is a way of thinking hitherto upheld by Li Lining. Based on his system of 
economic theories, the market mechanism is often the starting point in a study of 
problems. To solve the knotty problem of how to rationally deploy resources in 
national economic management, drawing on the “idea of a mixer” once again, he stresses 
that in China's economic reform, we must show full respect for, and give full play to, 
the role »f the market mechanism. 

This idea was put forth for the first time by Li Yining in giving the first lecture to 
college students on “management of the national economy” on 18 February this year. 
This course had to be switched to the largest classroom in the university because of an 
unexpectedly large audience. Even so, those who come to listen to his lectures mu . 
show up early to claim a seat. If they are late, they will find the classroom with a 
seating capacity of 300 already fully packed. 

Given new viewpoints, new ideas, and new theories being continuously put forward by him 
and especially given his independent thinking on China's economic reform, courses 
started by him have become very popular in the university. The works he has written 
have also become the favorites of young students. 

His latest published work, “Socialist Political Economy,” is a masterpiece. The first 
edition has sold out. Book commentaries have judged “this work as one representing a 
brand new Li Lining system.” “It marks a revolutionary change in the existing idea 
guiding economic policy.” “It pioneers a new way of thinking in using modern 
macroeconomic and microeconomic analytical methods to study socialist political 
economy." The Commercial Press, which printed this work, and the Xinhua Book Store, as 
its distributor, have received a total of several thousand letters from readers 

requesting a reprint. 

The theory of Li Yining as a representative of China's new school of econctic thinking 
has been increasingly given attention and cherished by society. last year, he 
successively put forward such theories as “the idea of second regulation,” “the idea of 
a balance not being the goal, “the idea cf reforming the system of ownership,” and so 
forth. He was also the first to desiga the blueprint for China's practice of the 
stockholding system and the dual economic pattern. 

Li Yining told this reporter: “In economic reform, experiences must be continuously 
summed up and the results achieved must be continuously continuously consolidated and 
digested. But domestic exploration of economic reform theories has never ceased. Nor 
has it ever been interfered with.” This year, he will continue taking charge of an 
important project in the state's Seventh 5-Year Plan, “The Study of the Mechanism for 
the Operation of China's Socialist Commodity Economy." This is a new attempt at 
exploration to quantify his economic reform theories. 

I. 18 Mar 87 K 13 CHINA 


HK171448 Hong Kong ZHONGGUO XINWEN SHE in Chinese 1333 GMT 13 Mar 87 

{Roundup by reporter Jin Guolin [6855 2654 2651]: “China's Shipbuilding Industry Has 
Become a Force To Be Reckoned With") 

[Text] Beijing, 13 March (ZHONGGUO XINWEN SHE) — Today, when the world's shipbuilding 
capacity is greatly excessive and the world's ship market is dwindling, China has 
gradually gained a place in the international ship market and has displayed a 
competitive power not to be belittled thanks to the high quality and low production 
costs of its ships and its good reputation. The tonnage of ships built by the 
shipbuilding enterprises under the China Shipbuilding Industry Corporation has grown 
continuously in the past few years. The average annual growth during the period from 
1980 to 1985 was 13.6 percent. In 1986, the tonnage reached 845,000 tons, more than 18 
percent over the previous year. It is expected that the shipbuilding capacity of this 
corporation will exceed 1.2 million tons in 1990. Since competition in the 
international ship market tends to become increasingly more acute, China has 
concentrated its efforts on developing first-rate modern ships according to 
international standards, thus narrowing the gap between China and other countries with 
a flourishing shipbuilding industry within just a few years. Last year, China built a 
69,000-ton ship for chemicals and oil products and a 115,000-ton oil tanker for 
transportation. The building of such ships indicates that the shipbuilding technology 
of China s mainland has reached today's advanced world level. 

A complete shipbulding system including scientific research, design, production, and 
manufacture of matching parts and components has taken shape in China. This system has 
more than 530 shipyards for building steel ships and more than 160 plants specialized 
in manufacturing matching parts and components for ships. It can build ships according 
to any international standard, for any navigation line, and for hoisting any national 
flag. All the 13 ships built for export last year ured main engines made in China, 
thus changing the situation of importing main engines. In addition, China has also 
built large shipbuilding bases for the export of ships in Dalian, Shanghai, and 
Guangzhou so that China has caught up with o*her countries in shipbuilding. Hu 
Chuanzhi, general manager of the China Shipbuilding Industry Corporation, forecast that 
in the 1990's, China's shipbuilding capacity will jump from seventh to third place in 
the world. 

Since its ships entered the international market in 1979, China has received foreign 
orders for 158 ships amounting to nearly 1.61 million tons, of which 119 ships with a 
total of 925,000 tons have been accepted and put into operation by their owners. It is 
expected that China will undertake to build ships with a total of 30,000 tons for 
export this year, 24 percent over last year. 

China has a vast domestic market for its shipbuilding industry. it has to build 9% 
million tons of ships either to meet increased needs or to replace old ships for ocean 
going, coastal, and inland river transportation before 1990. Domestic orders for large 
numbers of chips is a powerful guarantee for the development of China's shipbuilding 
industry. China was one of the first countries in the world to use sea water to make 
salt and to develop sea navigation, and its shipbuilding industry and navigation once 
flourished. At present, China's shipbulding industry has again risen abruptly in the 
world. Huskinson, chairman of the British Lloyd's Register of Shipping, said that 
China will become one of the world's strongest countries in shipbuilding in the future. 

I. 18 Mer 87 K 14 CHINA 

16029 Beijing RENMIN PIBAO in Chinese 2 Mar 87 p 5 

[Article by Zhang Shuguang (1728 2962 0342): “Production Policy, Its Design and 

[Text] The Seventh 5-year Plan has an outstanding characteristic, that is, while 
laying down a series of economic and social development targets, it includes a series 
of development policies for the first time. It is gratifying to see that many 
departments have started to work out their own development policies. la this article, 
I would like to express my personal views on some questions concerning the design and 
application of the industrial policies. 

The Nature and Role of Industrial Policies [subhead) 

Industrial policies are the summation of means and measures adopted for guiding 
industrial development, planning industrial development targets, and readjusting the 
mutual relations between different industrial fields and their structural changes. 
They constitute an essential component part of the entire structure of economic 
policies. With the shift of the operation and development of the national economy onto 
indirect menagement, planning, and control, the design and planning of industrial 
policies has become the essential means to guide industrial development and structural 

First, since they impact on the short term balance of economic operation, industrial 
policies constitute a long-term policy dealing mainly with economic development. An 
industry and a structure, once established and formed, are characterized by structural 
rigidity. The fundamental transformation of the existing structure is possible only 
through long-term efforts and through the reorganization of the existing industr’es and 
establishment of new ones. For this reason, the impact and role of industrial policies 
are manifested in affecting the long-term development of the economy. 

Second, the role of industrial policies produces an impact on production through 
promoting or restricting the development of certain industries and readjusting their 
structures, thus affecting the total amount of social supply and its setup. If the 
financial and monetary policies can readjust supply as well as demand, particularly 
social demand, industrial policies can produce an impact on demand, particularly in 
readjusting and producing an impact on social demand. 

Third, as a macroeconomic policy, industrial policies can affect the development of the 
microscopic economy. Industrial policies have different layers which include 
industrial policy of the state as a whole and industrial policy of various regions, 
departments, and trades. ir custrial policies of regions, departments, and trades play 
a role of overall signiticance, to say nothing of the state's industrial policies. 

The Main Contents of Industrial Policies [subhead) 

Industrial policies constitute a complicated policy structure which include indy trial 
policy of different layers and cover much ground. In light of the experience guiding 
industrial development and structural transformation at home and abroad, they mainly 
include: industrial setup policy, industrial organization policy, industrial promotion 
policy, and industrial restriction policy. 

1. 18 Mer 87 K 15 CHINA 

1. Industrial setup policy. 

In the past, China practiced the industrial setup policy of taking steel as the key 
link and giving priority to the development of heavy industry. In order to readjust 
the irrational industrial setup, China implemented the industrial setup policy of 
giving priority to the development of energy and communications, scientific and 
technological education, and speeding up the pace of agriculture and light and textile 
industry in recent years and achieved marked results. la the years to come, we should 
continue to focus on the development of energy, communications, agriculture, and light 
and textile industry. To modernize China's industrial setup, however, it is necessary 
to continue to revise and perfect this setup policy. 

The key to the planning and design of industrial setup policy lies in selecting the 
strategic industries, deciding on the target for structural policy, and planning the 
basic pattern for industrial development. Such selection and decision should be based 
or the long-term forecast of technological progress and economic development. 
Strategic industries generally include leading and mainstay industries. Sometimes they 
aiso include certain bottle-neck industries. Probably, the current conditions for 
developing these industries are not yet favorable. However, it will be impossible to 
funcamentally transform the basic pattern and development trend of China's industrial 
setup and to modernize the industrial setup unless we concentrate our energy on 
developing these industries. 

Strategic industries generally possess the following characteristics: First, they are 
usually the production departments of final social products which are elastic in 
demand. Over a considerable period, society will have an increasing den ad of these 
industries which cannot be fully satisfied. Second, as they have vital oc. ect tons 
with enterprises, their development can lead to the common prosperity of a large ‘umber 
of enterprises. Third, leading industries generally represent the direction of 
structural transformation and industrial development, mainstay industries reflect the 
development level of industrial modernization in an all-round way, and bottle-neck 
industries produce an impact on industrial development and structural transformation. 
In accordance with China's actual situation in which the task left over from the 
previous revolution should be accomplished and where we are facing the challenge of the 
new technological revolution, we should appropriately select the leading industries and 
mainstay industries for our country and work out correct plans for China's industrial 
development and structural transformation. 

2. Industrial organization policy. 

In the past, we did not understand the concept of industrial organization policy or 
have an effective policy om it. We were used to masse movement, to rushing headlong 
into mass action while developing projects, and to imposing wniformity on everything 
while cutting down projects. in addition, all production activities were carried out 
under direct, unified planning. To develop socialist commodity economy, our 
macroeconomic management should change from direct management and contro! to indirect 
management and control. Consequently, industrial organization policy becomes an 
essential means of policy to readjust industrial development and realize structural 

Industrial organization policy includes the market competition and anti-monopol ization 
policy, protection policy, and the policy for establishing lateral ties. To give full 
play to the role of these industrial organization policies, the key lies in the 
selection of an appropriate policy means and in the overall planning and coordination 

of various policies. 

I. 18 Mar 87 K 16 CHINA 

The market competition policy removes the obstacles that hinder rational competition, 
creates a fine environment for equal competition, and protects and develops fair market 
competition. la this regard, it is necessary for China to adopt a series of policies 
and means to eliminate the barriers erected between regions and departments. For 
example, we must have a policy that permits and encourages free mobility of various 
production factors, a policy that removes the barriers erected between regions and 
departments, a policy that enables enterprises to freely enter or withdraw from «a 
certain industrial field, and a policy that encourages enterprises to enter the 
international market and enter into international competition (mote: not merely 
stimulating exports and earning foreign exchange). Through competition within 
Gepartments, between departments A with other countries, we can select the best, 
eliminate the bacteard, and promote industrial development and structural 

The purpose of the anti-monopoly policy, which is closely related to the development of 
industrial competition, is to preven. a all oumber of enterprises from rigging the 
market, manipulating the prices, and obstructing structural transformation and the 
rational flow of natural resources. It also ensures fair competition. Above all, it 
is necessary to reduce state monopolization as much as possible. Regarding 
monopolization by a smull number of enterprises, with the maturity of the market and 
increasing strength of enterprises, certain policies will be necessary to effect 
read justment. 

The purpose of the industrial coordination policy is to promote rationalization of 
industrial organizations, raise the organizational extent and level of industries, and 
create new productive forces. Under the conditions un China, on the one hand, it is 
necessary to enact the policy of establishing and developing enterprise groups and 
clusters and promoting enterprise coordination, and on the other hand, it is necessary 
to enact and implement the policy of protecting and supporting emall and medium size 
enterprises. la addition, it is necessary to enact the policy of establishing and 
developing the organizations of various trades. Through the implementation of these 
policies, we should fundamentally change the overlapping and loose state of chinas 
industrial organizations and set up a rational industrial organization network. 

The industrial protection policy is a policy specially dealing with external affairs. 
Both trade protectionism and industrial protectioniem are incorrect. Nevertheless, the 
proper trade and industrial protection policies are necessary. Encouraging enterprises 
to enter the international market and face international competition does not 
contradict industrial protection. Exactly the reverse, since coordination between the 
two is the effective means to establish and develop our own industry and nationa! 
economy. However, industrial protection is not tantamount to protecting the backward. 
The purpose of protection is not to keep our immature industry in its infancy forever, 
but to foster ite growth and impel it to enter the international market and compete 
with the enterprises of other countries. Consequently, an industrial protection policy 
should clearly define the following: Which products need no protection and can be 
imported and exported without restriction, which products should not be imported, and 
the import of which products should be limited. Moreover, it is necessary to work out 
specific measures and terms for protection. Although we have practiced an open policy 
in recent years, we have not overdone it and the door is not yet widely open. However, 
large oumbers of projects were imported blindly and some of our industries suffered 
setbacks as a result of our negligence of industricl protection. Under the situation 
of continuously opening up to the outside world, we should work owt an explicit, 
specific, and effective industrial protection policy. 

I. 18 Mar 87 K 17 CHINA 

3. The policy of industrial stimulation and restriction. 

The policy of industrial stimulation and restriction covers much ground. Its purpose 
is to stimulate and promote the establishment and development of necessary industries 
and restrict and reduce the production of unnecessary industries and switch them to the 
manufacture of other products. Here it is particularly necessary to mention the policy 
of promoting research and development, the policy of upgrading products, and the policy 
of restricting entry into certain industries. 

Promoting research and development is the key to industrial development and structural 
transformation. The state should establish a fund to subsidize research and 
development. Taxation should be ¢uly reduced for the research and development pro jects 
of various industries. These projects should be given preferential treatment in loans 
and interest reduction in financial allocation. We should also provide these projects 
with appropriate subsidies. 

The establishment of an elimination system and an upgrading system for outdated and 
backward products can promote the development and upgrading of products and 
consequently raise the technological level of China's industries and improve our 
industrial setup. For industries with relatively quick technological development, it 
is all the more necessary to speed up this upgrading so as to promote and guide the 
development of technology and products. 

The policy of entry restriction is also complex. for example, the development of 
certain industries requires a minimum economic scale. Enterprises that cannot meet the 
minton requirements should be barred from entering these industries. Unless we have 
the proper prot.ction measures, the industries that cause serious pollution should also 
be restricted. 

The Planning, Design, and Application of Industrial Policies [subhead] 

In the course of planning, design, and application of industrial policies, the 
following questions merit attention: 

First, as industrial policies constitute a multi-layer and comprehensive policy system, 
we must have an overall view and systematic ide, for the planning, design, and 
application of the industrial policies which complement and coordinate each other. Our 
current problems are in this area. The planning, design, and application of our 
industrial policies lack overall consideration and long-term planning. The designed 
and enacted policies are not yet integrated or systematic. They are not coordinated 
and their applications are usually independent from each other. Instead of promoting 
the long-term development and structural transformation of industries, the design and 
application of some policies are merely confined to meeting immediate emergencies and 
incur a great loss because of ll gains. Some policies are mutually contradictory 
with one encouraging expansion while the other restricts development, thus leading to 
errors and blindness in industrial dev: »pment. 

Second, industrial policy is a branch of the economic policy system as a whole. It is 
closely related to other econom policies, particularly the macroeconomic policies 
including financial policy, monetary policy, investment policy, technological policy, 
and distribution policy. Their planning, desig , and application should also cooperate 
and coordinate with each other. It is quite obviows that financial policy and monetary 
policy should cooperate and coordinate with industrial policy. Here we will only 
discuss cooperation and coordination between investment policy and industrial policy. 

I. 18 Mer 87 K 16 CHINA 

Industrial setup is mainly expressed in « stock structure and investment setup in « 
flow structure. The different choice of investment setup can drastically change the 
industrial setup through the stock structural change in fined assets. Investment 
policy is the means indicating the direction for investment and readjusting the 
investment setup and investment behavior. Its cooperation with industsial policy is 
the fundamental means to realize industrial development and estructura! transformation. 

To cooperate and coordinate investment policy with industrial policy, first, the 
distribution setup of investment should meet the requirement of industrial setup policy 
and second, the readjustment of investment behavior should be coordinated with the 
industrial organization policy and the policy of industrial stimulation and 
restriction. A prominent question at present is that invescment policy and industrial 
policy are usually divorced from each other sad are qutually contradictory. The factor 
restricting development in industrial policy actually becomes the target of developeent 
in investment policy. The problems to be solved through establishing lateral ties 
between industries in industrial development usually become the things to be newly 
built in investment policy. This leads to duplication and blind construction as well 
as an imbalanced situation in which there is a shortage of funds and resources on the 
one hand, and some funds and resources lie idle on the other hand. 

Third, China's current industrial policies are imperfect, mutually contradictory, and 
mot systematic. They are abstract, sweeping, and vague and lack the secessary legal 
basis. As there are no effective written policies, they can be implemented or sot and 
can be implemented one way or the other. Those who violatge the policies and make 
mistakes are not held responible. For this reason, it is necessary to strengthen the 
legal system so that the planning, design, and application of industrial policies can 
have reliable legal guarantees. Only by doing so can we smoothly realize the 
structural trasformation and modernization of China's industries. 

Miet ie Beijing RENMIN RIBAO in Chinese 13 Mar 87 p | 
[(Commentator’s article: “Build Forest Belts Along the Coast line 

[Text] Im order to create a good ecological environment, the state started a grand 
project of building “three norths” shelter forest belts in the early years of the Sixth 
S-Year Plan. Recently, the leading comrades of the State Council pointed owt: The 
method of building “three northse” shelter forest belts should lee be used to build a 
“green great wall” of 10,000 miles along the coastline. This will be another grand 
project in our country’s forestry construction. 

Our country has a coastline of over 18,000 km which extends across the tropi:el, 
subtropical, and temperate tones: 10 provinces, aut ones regions, and 
municipalities, or some i180 counties and cities, have coastlines. The coastal 
localities have a total area of 370 million mu and a total population of nearly 100 
million people. At present, these localities are economically developed and densely 
populated in our country. They are out country’s doors to foreign links and are aleo 
the outposts of national defense. With the development of reform, opening up, and 
economic construction, the position of these locrlities in our country’s four 
modernizations cause will become increasingly more important. On the other hand, the 
coastal areas are raided by typhoons many times each year, and aleo frequently suffer 
from euch natural disasters as tides, drought, and floods, which cause serious economic 

losses. [paragraph continues! 

I. 18 Mar 87 K 19 CHINA 

The building of the coastal shelter forest belts will be a project of great 
significance in protecting and promoting our socialist four modernizations process and 
in bringing benefit to the people and our future generations. 

Over the past 30 years and more, the party and state have paid close attention to the 
building of coastal shelter forest belts and have led the people to build more than 64 
million mu of forests in coastal areas and some 8,000 km of shelter forest belts along 
the coastline. This has played a positive role in improving the natural conditions of 
some localities and in resisting such natural disasters as typhoons, sea tide, 
salinization, floods, and drought. However, we should also soberly notice that the 
development of coastal afforestation is rather uneven, and the existing forests are 
still fragmentary and scattered in some small areas, so their capacity of resisting 
natural disasters remains weak and fragile. Last year alone, four typhoons landed in 
Guangdong Province and caused more than 2 billion yuan of direct economic losses! The 
harsh reality requires us to build an integrated system of shelter forest belts as soon 
as possible in the coastal areas. 

The close attention and effective measures of the local leadership are the key to the 
success in the coastal afforestation project. Under the new situation of reform, 
opening up, and economic invigoration, leading bodies at all levels in the coastal 
areas should pay more attention to the building of shelter forest belts along the 
coastline. They must have a stronger sense of responsibility, exercise more effective 
leadership, and work in a down-to-earth manner, and take this afforestation project as 
a key project that must be tightly and properly grasped. Thus, we will certainly be 
able to build a grand and impregnable “green great wali” along the 10,000 miles of 


HK160926 Beijing NONGMIN RIBAO in Chinese 7 Mar 87 p | 

[Commentator’s article: ‘Gradually Expand the Scale of Land Operations in Places Where 
Conditions Permit -- Seventh Talk on Deepening the Rural Ref otras 

[Text] Implementing the contracted household responsibility system is a long-term 
policy pursued by our party in the rural areas. With the expansion of production, how 
to promote extensive farming on a large scale and on the household basis is an 
important problem to be settled in improving the contracted household responsibility 


The contracted household responsibility system, which keeps the features of 
agricultural production and fully displays the superiority of household farming, is 
welcomed by peasants. However, household farming is Limited because its scale is too 
small. In an average estimation throughout the country, every peasant household 
contracts only 7 to 8 mu of land, still less to every laborer. From a long-term point 
of view, farming on too samll a scale adversely affects the accumulation and 
technological progress of agriculture and hinders the development of agricultural 
production. “Every household is small but complete, and everybody tills the land.” 
This situation certainly bears a high production cost and brings about low labor 
productivity. At the same time, peasants do not have much interest in fart because 
of less income from land operations. This may eventually lead to decreases in 
production and leave large stretches of land uncultivated. Such a situation is not 
allowed to appear in our country. 

I. 18 Mar 87 K 20 CHINA 

The inexorable trend of economic development s that agricultural population shifts to 
other trades and the scale of land operations expands relatively. This was reflected 
in recent years from the emergence of group-operated land and cooperative farms in some 
economically develope? areas and places where cultivated land is more concentrated. 
However, as far as the whole country is concerned, this change, which results from the 
development of the entire economy, takes a fairly long time and needs some necessary 
conditions. And this change can take place only when secondary and teritary industries 
are relatively developed and can afford more jobs for laborers who no longer make a 
living from land and only when socialized production can render services of 
before-and-after production to farming. Many rural areas are not yet ripe for these 
conditions. Therefore, we should not blindly call for expanding the scale of land 

At present, improving the system of operating land by both collective and individual 
effort and using all kinds of socialized services in most areas are effective steps to 
expand the scale of land operations. This system can arouse the enthusiasm of the 
collective and the individual in land operations and help individual households resolve 
some problems arising due to a too small scale of land operations. On the premise of 
mot changing the scale of household land operations, the collective can now offer 
different kinds of services to farming such as mechanized ploughing, irrigation, crop 
protection and seed supplying, which individual households cannot afford to do. This 
is a feasible measure to expand the scale of land operations to a certain extent in 
most areas of our country. We should make full use of the form of operating land by 
both collective and individual effort to resolve some problems arising due to a too 
small scale of land operations at the present stage. 

The concept of expanding the scale of land operations is relative. It must be 
proceeded from being helpful to the best combination of the key elements of production 
and to the development of agricultural production. Forms of land concentration can 
vary in different areas and under different conditions, as can the scale of land 
operations. We must create favorable conditions for expanding the scale of land 
operations and support peasants in recontracting their land or in operating land with 
concerted efforts. At the same time, in some economically developed areas, especially 
in the outskirts of Beijing, Tianjin, Shanghai, and other large cities as well as in 
southern Jiangsu Province, we may run some relatively large household farms or 
cooperative farms on a trial basis and in a planned way to probe ways of expanding the 
scale of land operations for extensive farming. 


HK150846 Beijing JIEFANGJUN BAO in Chinese 4 Mar 87, p 3 
[Article by Li Xin [2621 2946]: “Reflection and Criticism") 

[Text] An old comrade about my age wrote me a letter on New Year's Day. Starting on 
the students demonstrations, he came up with a series of opinions: He said that he 
felt that bourgeois liberal thinking had been simmering for many years now, that the 
slogans proclaimed by the trouble-making students had been expressed earlier, in 
another manner, in newspapers and in the speeches of famous people. With this 
situation remaining unchanged, how could the young students not be affected? When some 
people talk of the ten catastrophic years, they do not seek to derive historical 
lessons from it but link the crimes of Lin Piao and the Gang of Four with the party. 
When some of them discuss the 30 years since the founding of the PRC, it is as if no 
achievements were made during the period. [paragraph continues] 

I. 18 Mar 87 K 21 CHINA 

They are in no way reflecting on history or carrying out serious, conscientious 
criticisms, but are actually slandering the party and villifying the party's leadership 
as well as inciting and instigating the young people to violate the four cardinal 

I agree with this viewpoint. For a while there were indeed people who used this and 
that method and seans to instigate the young people. They picked at our wounds, 
repudiated the overall situation, attacked minor points, and caused disruptions in an 
attempt to push the party's leadership, the socialist system. the people's democratic 
dictatorship, and Marxism to a position of “censure and concteuwpt" and thus achieve the 
objective of “total Westernization” — the capitalist road. This is the crux of the 

The socialist path was decided by the historical course of the last hundred years of 
social development in China. Its trend or direction cannot be decided nor altered by 
the feelings, likes and dislikes, or moves of a few progressive elements or a few 
oppositionists. Naturally, through practice and sheer effort, man could effect a 
certain role to promote or hinder the trend of social development. However, to think 
that an individual's subjective willpower could change history and master the objective 
is entirely wrong. Looking at all times and in all countries, not a few tragic 
personalities have met with disastrous failure in this area! 

The building of socialism with distinct Chinese characteristics is composed of the 
policy of reform and opening up, the four cardinal principles, and the building of 
socialist spiritual civilization — a fundamental task integrating three factors into 
one. Under such a situation and task, some people set the guidelines of emancipation 
of the mind, of reforms and opening up, and of letting a hundred flowers bloom and a 
hundred schools of thought contend against the adherence to the four cardinal 
principles. The majority of these people could have been confused, while certain 
others had ulterior motives. Leaving those with ulterior motives aside, if those who 
have muddled minds do not clear up their thinking, then it could be detrimental to the 
adherence of the four cardinal principles and to the resistance of bourgeois 
liberalism. For a big country with a population of 1 billion, the path of social 
development established after explorations by several generations allows for no 
ambiguity. It involves the fundamental interest of the Chinese nation, the People’s 
Republic of China, as well as the people from various strata in society. On a matter 
of principle concerning the fate of the country, no sober or responsible party member 
will approve of wanton and rash actions. 

Speaking of reflection, the evolution of bourgeois Liberalism into an ideological trend 
did not occur overnight. Indeed, this calls for reflections on the part of our Chinese 
Communist Party members, notably party leaders and cadres, as well as tor, in charge 
of ideology and culture. Correct reflection and criticism could enhance understanding, 
strengthen confidence, uphold the right and restore order. As long as one is adept at 
summing up experiences, learning lessons, positively and conscientiously regarding the 
various elements that brought about the proliferaticn of bourgeois liberal thinking, 
the problem can be resolved gradually. Then, we can advance with more determined and 
steadier strides along the highways of socialist modernization and construction. 

Reflection and criticism are essential parts cf our party's three major excellent 
styles and should be further passed on and promoted. I believe that it is even more 

necessary today. 

I. 18 Mar 87 K 22 CHINA 


HK160551 Beijing JIEFANGJUN BAO in Chinese > Mar 87 p 1 

(Commentator’s article: “Put Lofty Ideals Into Practice in the Course of Wholeheartely 
Serving the People”) 

[Text] The great name of Li Feng” became a household word 24 years ago when he was 
commended in the inscriptions of the older generation of revolutionaries including Mao 
Zedong. The image of Lei Feng sparkled with the brilliant thinking of communism, and 
lighted the hearts of millions like a torch. His lofty character and style struck root 
im the vast land of China, then, like a seed, it bloomed and bore fruit. The spirit of 
Lei Feng has become a synonym for serving the people heart and soul over the past 2 
decades and more, and a specific symbol for the communist style. It has played an 
inestimable role in educating, encouraging, and inspiring the people, the PLA officers 
and men in perticular. 

History took a tortuous road. During the 10 years of turbulence, the image of Lei Feng 
was distorted by the gang of four, again when the ideological trends of bourgeois 
liberalization were rampant not so long ago, Lei Feng was played down and attacked by 
some individuals. However, the immortality of the Lei Feng spirit is a fact that can 
never be nullified. The people still cherish the memeory of Lei Feng, praise him, and 
are learning from him. The investigation report on some units under the Jinan Military 
Region carried in the 3 March issue of this newspaper has served as evidence. In 
answering the question “who is the peacetime hero and model you most admire?" all 
cadres and soldiers cast their “votes” for Lei Feng. When asked “which hero or Mae! 
has affected you most in your growth and progress?" 90 percent of the comrades 
mentioned Lei Feng. Among the advanced personalities emerging in recent years, the 
overwhelming majority of them have followed in Lei Feng's footsteps. This 
investigation, which is truly representative is not only a powerful repudiation of 
those individuals who have negated Lei Feng, but serves as an irrefutable demonstration 
that the Lei Feng spirit is more and more grasped and admired by the young people of 
the new generation, and is becoming the criteria for their actions in life. 

The spirit of serving the people heart and soul, and unswervingly striving for the 
realization of lofty ideals ran through Lei Feng's brief lifetime, and was embodied in 
his every speech and action. According to Lei Feng, a proletarian fighter must possess 
the lofty ideals of striving for communism, “I have but one heart; this heart is 
devoted to the party, socialism, and communism.” It was precisely this lofty ideal 
that always set off his revolutionary enthusiasm, and guided his continuous striving 
along a fixed direction. A common ideal and unanimous pursuit often make people of 
different times come together in their thinking. This is why no “generation gap” 
exists between the young people of the 1980s and Lei Feng of the 1960s. In following 
Lei Feng's example, it is first necessary to acquire his lofty ideals, which are man's 
spiritual support. With lofty ideals, we wil never lose the way in our progress. With 
them in mind, no force whatever can shake our revolutionary will. Comrade Deng 
Xiaoping says, in the cultivation of lofty ideals, moral integrity, cultural 
accomplishments and discipline, lofty ideals and discipline are especially important 
“why was it possible for us to wage struggle under the most extraordinarily difficult 
conditions in the past, and win the victory of the revolution by overcoming all kinds 
of difficulties and danger? That was precisely because we have lofty ideals and faith 
in Marxism and communism." Today our party is leading the people throughout the nation 
to build socialist modernization, which is a new phase in marching toward the great 
ideal of communism. [paragraph continues] 

I. 18 Mar 87 K 23 CHINA 

Only when our party adheres to its highest ideal will it be possible to become the 
force at the core leading the cause of revolution and construction. Only when the 
entire people in the nation share a common ideal will it be possible to build socialism 
with Chinese characteristics with one accord. And only when the commanders and 
soldiers of the entire army possess revolutionary ideals will it be possible to have 
iron discipline as well as staunch and powerful combat effectiveness. “The Decision of 
the Central Military Commission on Political Work in the Army During the New Period” 
recently approved and relayed by the CPC Central Committee stresses the need to 
strengthen education in lofty ideals in the army, “to make the officers and men grasp 
the objective laws governing social development, understand that the highest ideal of 
the party is to realize communism, understand the common ideals of the people of all 
nationalities throughout the country, see the advantages of the socialist system and 
the need for its self-perfection and development through reform, set up a correct world 
outlook and outlook on life, and strengthen faith in victory.” This is the pressing 
need in the struggle to oppose bourgeois liberalization as well as a vital link in 
strengthening the army modernization. We should do a good job in grasping education in 
lofty ideals by linking it with the activities of learning from Lei Feng in a 
down-to-earth way. 

Lei Feng's striving for the great ideal was always linked closely with every single 
practical action in serving the people heart and soul, and embodied in his specific 
actions in cherishing the nation and the people, observing discipline, attaching 
importance to ethics, working diligently, studying assiduously to make progress, and 
being always ready to help others. “The accomplishment of anything great and major is 
bused on the ordinary and minor.” Lei Feng was a great commun’st fighter, and 
simultaneously a commonplace “screw.” In a dialectic way, the great and the 
commonplace were unified in Lei Feng. That is precisely where the great charm of the 
Lei Feng spirit lies. The so-called “screw” means subjecting oneself to the needs of 
revolution, to love and to do a good job at one’s post, no matter what trade one is in, 
and to spare no efforts to contribute one s strength for the revolutionary cause. This 
spirit of Lei Feng in serving the people heart and soul, and willingly becoming a 
“screw” was the focal expression of his lofty ideals as well as the basic channel to 
realize them. If realities are compared to one shore, and ideals the other, then 
unremitting efforts in specific actions will be the bridge to span the two shores. The 
road to lofty ideals is undoubtedly a long one; however, it is for us to make the 
initial steps. Being without the persistent practice of serving the people heart and 
soul and the spirit of willingly becoming a “screw,” while failing to do a good job at 
one's post with the attitude of being masters of the country, talk about lofty ideals 
can only be empty words. Some people believe that the Lei Feng spirit of willingly 
serving as a screw should not be upheld on the ground that it is unfavorable to 
developing the “sense of the individual.” We should make an analysis of this. Marxism 
attaches great importance to the development of the individual, while believing that 
the individual is inseparable from the collective. The individual and the collective 
have a relation of supplementing each other. Just as a drop of water will be dried up 
if it fails to get into the sea, likewise, it will be very difficult for the individual 
to survive independently without merging himself with the collective. Stubbornly 
laying conspicuous stress on “the sense of the individual,” and playing down or 
negating “the sense of the collective“ run counter to dialectical materialism. In 
building ethics, we do not generally oppose the development of the individual; however, 
such development must be linked with the interests of the party, the state and the 
people. The individual can accomplish development to perfection only through his 
infinite service to the people. Developing the individual at the cost of the interests 
of the party, the state, and the people will inevitably lead to extreme individualism 

and anarchism. 

I. 18 Mar 87 K 24 CHINA 

In our times, the name of Lei Feng is always a clarion call, and his spirit will 
forever shine brilliantly. Thousands upon thousands of people like Lei Feng are needed 
both in the undertakings of socialist modernization, and in strengthening the building 
of a modernized revolutionary army. As in the Chang Jiang the waves behind drive on 
those before, so each generation excels the last one. With the continuous improvement 
of socialist material and spiritual civilization, and with the in-depth development of 
the activities in following the example of Lei Feng, more advanced models rich in the 
characteristics of the times will inevitably emerge in the new generation of the 
1980s. It is the glory of the PLA that Lei Feng was one of its men; and the PLA should 
do a better job in learning from Lei Feng. Let us follow his example, attach 
importance to lofty ideals, put them into action, and strive to become a new generation 
that cultivates lofty ideals, moral integrity, cultural accomplishments and discipline! 


HK131042 Guangzhou Guangdong Provincial Service in Mandarin 0400 GMT 13 Mar 87 

[Text] Accompanied by responsible comrades of the provincial party committee and the 
provinrial Advisory Commission, Xi Zhongxun, member of the Political Bureau of the CPC 
Central Committee, inspected from 11 February to 11 March urban construction, 
factories, schools, rural areas, and tourism areas in the Shenzhen and Zhuhai Special 
Economic Zones and 23 cities and counties in Guangzhou, Jiangmen, Foshan, Huiyang, 
Zhacqing and Shaoguang cities and prefectures, and the construction site of the 
Dayaoshan Tunnel. He also met responsible comrades of all the cities and prefectures, 
and some veteran comrades now in Guangdong, encouraging them to uphold the four 
cardinal principles; to adhere to the policy of reform, opening up, and economic 
invigoration; to strengthen ideological and political work; to grasp the building of 
two civilizations simultaneously; to steadfastly fight bourgeois liberalization; to 
safeguard the political situation of stability and unity; to bring into play their 
strong points and avoid their weak points according to local conditions; and to push 
forward the building of the four modernizations. 

During his inspection tour of Guangdong, Comrade Xi Zhongxun also met well-known people 
from Hong Kong and Macao, including Henry Fok, Ma Man Kei, and Gordon Wu. 

Comrade Xi Zhongxun highly valued the achievements made by Guangdong over the past few 
years. He expressed the hope that on the basis of the existing achievements, the 
province would continue to be modest and prudent, constantly make explorations and sum 
up experiences, and continuously forge ahead. 


HK170147 Changsha Hunan Provincial Service in Mandarin ©100 GMT 17 Mar 87 

[Text] According to Hunan Ribao, CPC Central Committee Political Bureau member Xi 
Zhongxun inspected Hunan Province from 12 to 16 March, accompanied by Xiong Qingquan, 
and Liu Fusheng, deputy secretaries of the provincial party committee, and responsible 
persons of the Changsha City party committee. He inspected factories and rural areas 
at Changsha and made an important speech. 

Comrade Xi Zhongxun listened to reports delivered by respnsible comrades of the 
provincial party committee. Present at the ceport meeting were Mao Zhiyong, Xiong 
Qingquan, Liu Zheng, Liu Fusheng, Sun Wensheng, Chen Bangzhu, Jiang Jinliu, Dong 
Zhiwen, Shen Ruiting, and Li Jianguo. 

I. 18 Mar 87 K 25 CHINA 

On behalf of the provincial party committee, Xiong Qingquan reported on the province's 
economic development last year and the ideas on this year’s work, and on the situation 
in implementing the intentions of the CPC Central Committee and State Council on 
tackling the two major tasks. 

After endorsing these efforts, Comrade Xi Zhongxun explicitly pointed out that there is 
no example to follow or model to copy in carrying out socialist construction. We must 
uphold the ideological line of seeking truth from facts. It is necessary to take full 
advantage of Hunan’'s strong points in resources and vigorously promote 
diversification. We must seriously investigate and study to find out what the cadres 
and — are thinking now, and strengthen ideological and political work [words 

Many veteran comrades are familiar with the history of yesterday and aiso understand 
the present situation. They are most convincing in conducting education for young 
people in revolutionary traditions. 

On how to strengthen the party's democratic centralism, Comrade Xi Zhongxun said: 
Comrade Deng Xiaoping’s speech at the enlarged central work conference in 1962 summed 
up the partys experiences over several decades. This is a (historic) 
Marxist-Leninist document, which we must seriously study. The party organizations at 
all levels must uphold democratic centralism. We must strengthen the building of the 
leadership groups themselves. If the party's democratic centralism is practiced well 
and the leadership groups are well united, then everything can be accomplished with 

He demanded that the party members, especially the party's responsible cadres, 
continually strengthen their party spirit and set strict demands on themselves. He 
said: Every party member must be up to the mark in party spirit. If a person's 
awareness is high, it does not necessarily mean that he is very able. It is essential 
to be modest and prudent and avoid getting too divorced from the masses. We must 
constantly regard ourselves as elements of the masses. Party members must maintain and 
carry forward the fine tradition of arduous struggle, and play a model 1 leading role 
in reform, opening up, and invigoration. They must take the lead in wo :, in enduring 
hardship, and in serving the people. They should be the first to suff: © hardship and 
the last to enjoy comforts. 

During his inspection, Xi Zhongxun paid « special visit to the No 2 hospital attached 
to the Hunan Medical College to extend regards, on behalf of Comrade Wang Zhen, to Tao 
Zhiyue, vice chairman of the CPPCC and vice chairman of the provincial People's 
Congress Standing Committee, who is ill there. He also extended regards to Zhou Li 

[words indistinct]. 

OW162343 Beijing XINHUA Domestic service in Chinese 1558 GMT 16 Mar 87 

[Text] Beijing, 16 Mar (XINHUA) — Yu Qiuli, deputy secretary-general of the Military 
Commission and director of the General Political Department, addressed the opening 
ceremony of an advanced studies class at the National Defense University today. He 
said: Adherence to the four cardinal principles is the foundation of our party and 
state, as well as the most distinguishing feature of our Army. In order to uphold 
Marxism, we must first study Marxist theory. We should train a contingent of Marxist 
theorists with PLA characteristics. 

I. 18 Mar 87 K 26 CHINA 

Yu Quili continued: The current struggle to uphold the four cardinal principles and 
oppose bourgeois liberalization is designed to solve current questions of major 
political principles, as well as questions arising from reality on the right and wrong 
of major theories. A very important way to fundamentally solve problems once and for 
all is to improve the knowledge of Marxist theory among comrades throughout the party, 
particularly the leading comrades. Marxism-Leninism-Mao Zedong Thought is an 
ideological weapon for opposing bourgeois liberalization. In order to stand in the van 
of the struggle against bourgeois liberalization, leading cadres should first take the 
lead in studying central documents and Marxist theory. 

Yu Qiuli pointed out: Recently, many units have been running book-reading classes and 
organizing their cadres to study Marxist theory. Studying theory has become a common 
practice. Such a good practice should continue all the year round. The struggle 
against bourgeois liberalization requires us to study Marxist theory, and it also 
provides us both positive and negative materials. In the course of the struggle, our 
cadres should study hard to acquire more knowledge of Marxist theory. Basic Marxist 
principles are not out-moded, and still play an important role in guiding our socialist 
modernization program and struggle against bourgeois liberalization. We should confirm 
our faith in Marxism, strive to learn the Marxist stand, viewpoints and methods, have a 
scientific world outlook and a correct outlook on life, enhance our understanding of 
ideologies and policies, and sharpen our ability to analyze and solve problems. 

SK150536 Changchun Jilin Provincial Service in Mandarin 2200 GMT 14 Mar 87 

{Excerpt} During his recent inspection tour in Jilin City, Song Renqiong, vice 
chairman of the Advisory Commission of the CPC Central Committee, stressed that in 
developing the economy, it is necessary to pay attention to afforestation, prevent 
pollution, and safeguard the ecological balance. Twenty years ago when Comrade Song 
Rengiong served as first secretary of the northeast China Bureau, he inspected Jiiin 
City on two occasions. This is his third trip to Jilin City. 

From 9 to 14 March, after attending the Sixth National Winter Games, he visited some 
party and government cadres of Jilin Province and Jilin City. Accompanied by Comrade 
Geo Di, secretary of the provincial party committee, he also visited some plants, shops 
and (?restaurants), and an exhibition on (?light industrial goods). Comrade ‘Sang 
Rengiong was much impressed by the appearance of Jilin City. Seeing the flourishing 
trees along the Songhua Jiang and some streets, and the gardens built in many plants he 
said happily that Jilin City is a place with its green hills and clear water, and it 
has done a fairly good job in planting tries. He also pointed out that to protect the 
existing forests, it is necessary to plant more trees and build Jilin into a still 
better city. 

Comrade Song Rengiong highly praised the Jilin Paper Mill for building forests for 
commercial use. He urged that not only the rural areas, urban neighborhoods, and Army 
barracks should pay attention to afforestation, but also the industrial and mining 
enterprises which consume great amounts of timber should be farsighted and successfully 
build forests for their own use. 

Comrade Song Rengiong has talked about prevention of pollution on many occasions. He 
said: Prevention of pollution and afforestation are two aspects of an issue. The more 
developed the economy is, the more attention should be paid to protecting the 
ecological balance. 

He also wrote an inscription for Jilin City: “Protect the Environment and Develop the 
Rural and Urban Areas.” [passage omitted) 


0W170047 Shanghai WEN HUI BAO in Chinese 12 Mar 87 p 1 

[Excerpts] The 3-day, 27th Session of the 8th Shanghai Municipal People’s Congress 
Standing Committee closed on 11 March. The meeting adopted “Interim Regulations on 
Supervision Over Labor Protection of Shanghai Municipality” and decided to put the 
regulations in force on 1 May 1987. [passage omitted] 

Vice Chairman Wang Jian presided over the meeting. Vice Chairmen Pei Xianbai, Wu 
Ruoman, Tan Jiazhen, and Shu Wen attended the meeting. Present as nonvoting delegates 
were Vice Mayor Ye Gongqi, President of the municipal Higher People’s Court Hua 
Liankui, and resporsible persons of the municipal people's procuratorate, departments 
concerned under th» sumicipal government, and various district and county People's 
Congress standing com :.ttees. 

OW160552 Shanghai WEN HUI BAO in Chinese 8 Mar 87 p 1 

[By reporters Zhang Debao and Yu Peihua) 

[Excerpts] At about 0900 hours on the evening of 6 March, Shanghai's Songjiang, 
Jiangshan, Qingpu and other areas were hit by a severe storm with strong winds. Some 
of the areas were also hit by hailstorms and tornadoes. Right now, proper arrangements 
are being made to help disaster-stricken people find places to settle down in the 
area. Telephone lines and closed-circuit cables for relaying radio programs as well as 
lighting fixtures damaged by the storm have been repaired. On 6 March, leaders in 
Shanghai including Rui Xingwen, secretary of the Shanghai Municipal CPC Committee, and 
Mayor of Shanghai Jiang Zemin visited Songjiang County, which suffered most from the 
storm, and discussed with the local cadres how to carry out relief work against the 
natural disaster. [passage omitted] 

Yesterday afternoon, Rui Xingwen, Jiang Zemin, and other comrades rushed to Songjiang 
County, listened to a briefing on the natural disaster, and visited the county's 
Zhongxin Hospital to cheer up those injured during the storm. Later, they visited the 
Xinbang Township, which was hit hardest, to check the situation there and made plans to 
do relief work against the natural disaster. Comrade Rui KXingwen said: It is 
necessary to mobilize the masses to rebuild their hometown and resume production as 
soon as possible. At the same time, efforts must be made to help the disaster-stricken 
people find places to settle down. Comrade Jiang Zemin said: It is essential to bring 
into full play the role of all organizations. The township must not ask the county to 
do work that the township itself is able to handle, while the county must not ask the 
municipality to do work that the county itself can handle. Efforts must be made to 
help the masses resume production and lead normal lives. On the evening of 6 March and 
on the morning of 7 March, Wang Liping, Standing Committee member and secretary general 
of the municipal party committee; Vice Mayors Ni Tianzeng and Ye Gongqi; Hu Zhengchang, 
deputy secretary general of the municipal party committee; and the leading comrades of 
the municipal rural party committees and the municipal Agricultural Commission also 
visited the storm-stricken areas on separate occasions to express sympathy and 
solicitude for the people in the disaster areas. 


0W170627 Shanghai JIEFANG RIBAO in Chinese 13 Mar 87 p 1 

[Excerpts] Rui Kingwen, secretary of the Shanghai Municipal CPC Committee, and Jiang 
Zemin, deputy secretary of the Shanghai Municipal CPC Committee and mayor of Shanghai, 
yesterday afternoon inspected militia work in Shanghai. They praised the achievements 
of the work in both silitary training and playing a backbone and leading role in 
economic construction and building socialist spiritual civilization. 

Accompanied by Ba Zhongtan, commander of the PLA Shanghai Garrison Command, and Ping 
Changxi, political commissar of the PLA Shanghai Garrison Command, Rui Kingwen, Jiang 
Zemin, and Vice Mayor Qian Xuezhong first inspected the bustling Nanjing East Road to 
see militiamen’'s activities of providing various services for the people on Nanjing 
Road. [passage omitted) 

After leaving Nanjing Road, leading members of the municipal party committee and 
gunicipal people's government took a ride to the Shanghai Metallurgical Equipment 
Manufacturing Plant in Jiading County and inspected the Changfeng Militia Antiaircraft 
Artillery Regiment in Putuo District. [passage omitted) 

After hearing a briefing, Rui Xingwen and Jiang Zemin gladly saw antiaircraft artillery 
practice by militiamen and militiawomen despite the rain. At the regimental command 
post, commanders and fighters of the militia unit conducted war exercises at regimental 
and battalion level for the leading comrades. At the completion of the exercises, Rui 
Kingwen congratulated the commanders and fighters of the militia wit for their 
successful training and demonstration on behalf of the leading members of the municipal 
party committee and the municipal people's government. Rui Kingwe: said: At present, 
our country is in an excellent situation of stability and unity. However, we must be 
prepared for danger in times of peace and always be on the alert. Doing a good job in 
the building of militia units is extremely important. He expressed the hope that the 
broad masses of militia units would continue their efforts and make still greater 

Yesterday afternoon, the leading members of the municipal party committee, the 
municipal people's government, and the PIA Shanghai Garrison Command also inspected 
armories of militia unite at the Putwo District People's Armed Forces Department and 
the Shanghai No 5 cotton will in Changning District. 

OW152328 Hangzhou ZHEJIANG RIBAO in Chinese 6 Mar 87 p | 

[Text] Namelist of appointments and removals decided by the Zhejiang Provincial 
People's Congress Standing Committee (adopted at the 24th Session of the 6th Zhejiang 
Provincial People's Congress Standing Committee on 5 March 1987) 

Appointments: Wu Minda to serve concurrently as chairman of the Zhejiang Provincial 
Planning and Economic Commission; and Zhao Kiaodao [6392 1420 6670!) as director of the 
Zhejiang Provincial Department of Agriculture. 

Remova's: Chen Jingye from the post of chairman of the Zhejiang Provincial Planning 
and Eccsomic Commission; and Sun Wanpeng from the post of director of the Zhejiang 
Provincial Department of Agriculture. 


8K130244 Guangzhou Guangdong Provincial Service in Mandarin 1000 GHT 12 Mar 87 

{Excerpts} The Fifth Guangdong Provincial CPC Committee convened its sixth enlarged 
plenary session in Guangzhou today. A 3-day preparatory meeting was held first. The 
session, which was attendees Sy 165 persons, examined and approved Comrade Lin Ruo's 
work report delivered on behslf of the provincial party committee Standing Committee, 
examined and approved in principle the provincial plan for building socialist spiritual 
civilization, and discussed and approved the list of candidates for deputies to the 

13th party congress. 

Comrade Lin Ruo's work report analyzed the province's economic situation in 1986. 
[passage omitted) 

The report affirmed that the province did a great deal of work in building socialist 
spiritual civilization during 1986. [passage omitted) 

After pointing out the existing main problems in social and economic development, the 
report proposed the main tasks to Lc tackled in 1987. [passage omitted) 

The session demanded that the party organizations and the whole body of party members 
throughout the province unswervingly implement the line, principles, and policies since 
the 34 Plenary Session of the lith CPC Central Committee, and mobilize and lead the 
people of the whole province to work in concert and strive to do still better in 
building socialist material and spiritual civilization in Guangdong. 

Lin Ruo’s Report 
HK161050 Guangzhou NANFANG RIBAO in Chimese 13 Mar 87 pp 1, 3 
[Report: “Guangdong Further Developed ite Good Situation Last Year! 

[rent] Lin Ruo, Guangdong party committee secretary, delivered a work report on behalf 
of the provincial party committee at the Sixth (Enlarged) Plenary Session of the Fifth 
Guangdong Provincial CPC Committee. Regarding the 1986 work conditions, Comrade Lin 
Ruo pointed out: Since the fifth plenary session of the fifth provincial committee, 
party organizations at all levels and party members throughout the province have 
implemented various instructions of the Central Committee, adhered to the four cardinal 
principles, grasped the building of the two civilizations simultaneously, done their 
work in a down-to-earth manner, and further developed the fine situation of the 


Comrade Lin Ruo stated: Money was tight in 1986, and Guangdong suffered from a series 
of natural disasters: typhoon, flood, and drought. However, through the concerted 
efforts of party organizations at all levels, a6 well as the party members and the 
masses throughout the province, steady and coordinate progress was still made in the 
economy. Compared with 1985, the social gross output value of the province grew by 12 
percent, gross industrial and agricultural output value grew by 13.5 percent, national 
income increased by percent, volume of social commodity retail increased by 12.8 
percent, and GNP increased 9.6 percent; all were higher than the average national 
growth level. With the steady development of production, financia’ revenues grew 

synchronously with the GNP. [paragraph continues! 


The people's living standards again improved, the province's urban and rural markets 
were brisk, and prices were basically steady. The economic situation was fine. 

According to Lin 4, the province s economic situation in 1986 can be summed up in the 
following characteristics: 1) The national economy changed from excessive growth to 
sustained, steady, and coordinated growth. This is very pleasing. 2) A new situation 
of balanced development between different areas appeared. In 1986, we proposed the 
principle of actively improving the Zhu Jiang Delta, stepping up the pace of 
development in the coastal areas, and supporting the economic work of old and new 
poverty-stricken gountainous and border areas. Viewing the present conditions, we find 
such a situation has already emerged. 3) There was vigorous growth in developmental 
agriculture. Afforestation, the building of orchards, mining in mountainous and hilly 
areas, digging ponds to breed pawns, reclaiming sand buaches to develop fish breeding, 
and poultry raising in the coastal areas, as well as farming exclusively for export in 
the Zhu Jiang Delta, were all in vigorous development. This situation is very 
pleasing. A cumber of developmental projects initiated in line with the principle of 
suiting measures to the local conditions in all places will add great staying power to 
agricultural growth. 4) Great development was recorded in foreign trade. That was a 
pleasing step forward in building export-type economy. In 1986, the actual export 
volume was $4.23 billion. Guangdong is a close neighbor of Hong Kong and Macao, in the 
forefront of opening up to the world. The building of an export-style economy to 
expand export trade is a strategic task for Guangdong’s economic construction. 

The report also dealt with the situation of building spiritual civilization in 1986. 
Lin Ruo affirmed that the province's party organizations and relevant departments at 
all levels did a great deal of work in building socialist spiritual civilization 
centered on bringing up socialist citizens with lofty ideals, moral integrity, cultural 
accomplishments, and discipline. in order to do a good job in the building of the two 
civilizations, we attached special importance to and grasped firmly the building of the 


The report cited some major accomplishments in the building of spiritual civilization, 
namely: Rural party rectification work was earnestly conducted based on central 
arrangements. 1986 was the third year since overall party rectification was unfolded, 
and the year in which the phase of party rectification of rural grass-roots began. The 
province's rural party rectification was conducted separately at the district and 
township levels. It was basically concluded in January 1987. Although rural party 
rectification involved a large scope, a great oumber of people, and voluminous work, 
generally speaking, the development was healthy with rather good effects because party 
committees at all levels attached great importance to it. The democratic 
recommendataions of cadres in leading bodies at and above county level by appraisal 
through democratic discussions and polls was unfolded toward the end of 1986. This has 
played a positive role in strengthening democratic supervision and promoting the 
building of leading bodies. 

Launching education in party spirit, style and discipline, persistence in grasping 
firmly major and important cases, and organizing masse examination in consolidating the 
party style in the province promoted the marked turn for the better in party style and 
further improvement of the party-masses and cadre-masses relations. Activities of 
initiating civilised units and building spiritual civilization with joint efforts of 
the Arey and the people were unfolded in a down-to-earth way in the province. More 
than 17,000 mite in the province now participate in such activities. [paragraph 


The province sumed up and spread the experiences of advanced its including the 
Guangthou Hygienic Processing Factory, the Nanhuaxi Street seighborhood, as well as the 
Guangzhou Institute of Traditional Chinese Medicine Malaria Research Center, with «a 
oumber of advanced mgodels of collectives and individuals set up. All this has 
forcefully promoted the work of building spiritual civilization in urban and rural 
grass-roots units. 

New accomplishments were scored in strengthening the building of socialist democracy, 
the legal system was strengthened, and there was «a severe creckdown om serious criminal 
activities acd serious economic criminal activities. A great deal of work «is done in 
the compreheriive treatment of social order problems and the elimination of ugly 
phenomena. Public order in the province was aleo further improved. 

Lin Ruo said in his report: The provincial party committee adopted measures in many 
aspects to spur the development in various undertakings of education, science and 
technology, sports, and public health. The consolidation of sites for cultural and 
recreational activities of the masses and publications was aleo strengthened. 

Lin Ruo also pointed out the existing main problems in the province's work in 1986. He 
said: We failed to study sufficiently and to have more profound understanding of some 
documents and instructions from the Central Committee. In investigating, studying, and 
dealing with some problems, we did not exert great enough efforts. Bureaucratic 
phenczaena, characterized by too many meetings and documents isewed, and low work 
efficiency still gravely exist. Viewing the work of the province, many weak links and 
problems pressing for solution still exist. 

The report pointed out the existing main problems in social and economic development: 
1) The decision making powers of the enterprise have not been fully implemented and 
some large and medium-sized enterprises still lack vitality; 2) the strained condition 
of energy resources and transportation was still conspicuous, which affected the 
development of production and construction as well as the daily life of the masses; }) 
the dispersion of financial resources; 4) not enough importance was attached to grain 
production; 5) the phenomenon of arbitrary tree-felling was not checked; and 6) the 
natural population growth rate showed an upward trend. 

Lin Ruo also pointed owt: Many problems exist in the political ideological field, too, 
mainly the emergence of the ideological trend of bourgeois liberalization. Lin ru 
concluded: Although the above mentioned problems were minor aspects, they should not 
be neglected and must be dealt with seriously and overcome in a 4own-to-earth way. 
Only then will it be possible to make still greater progress in the mew year and do a 
still better job in all items of work. 

Main Taske For 1987 

Arie ieh Guangzhou NANFANG R\BAO in Chinese 14 Mar 87 pp i, 3 

{[Report: “Guangdong To Highlight Six Items of Work This Year”! 

[Text] la his work report delivered at the Sixth Enlarged Plenary Session of the Fifth 
Guangdong Provincial CPC Committee, Lin Ruo, Guangdong party committee secretary, 
pointed out: In 1987, we must earnestly conduct education in adhering to the four 
cardinal principle among the cadres and the masses; continue to spur ceforms, opening 
up, and invigorating the domestic economy; and unfold the work of increasing production 
and practicing economy in a big way. [paragraph continues! 


These measures will allow us to do « still better job of all items of work and the 
economic construction of the province and to further develop the fine situation in 


Lin Ruo stated in his report: Based on the instructions of the Central Committee and 
the ectual conditions of Guangdong, the following items of work must be highlighted 
this year: 

1. It Is Necessary To Adhere to the Four Cardinal Principles To Oppose Bourgeois 
Liberalization im the Political and Ideological Reale [subhead) 

According to Lin Buco, the gost important of 11 items of work in the province this year 

is to do a good job in opposing bourgeois liberalization, based on the arrangements of 
the Central Committee. 

Lin Ruo pointed out in his report: Opposing bourgeois liberalization has a specific 
implication. The core of the pursuit of bourgeois liberalization — namely, negating 
the socialist system while upholding the capitalist system — is to negate the party 
leadership. In waging the struggle against bourgeois liberalization, we must make 
explicit the scope and policy of the struggle based on the central stipulations; 
specifically speaking, the struggle should be strictly conducted inside the party, 
mainly in the political and ideological reals, and not including the rural areas; it 
should got be linked with the policies in connection with the economic reform, the 
rural policies, research in science and technology, exploration in the style and skill 
in literature and art, and people's daily life. Regarding the method, we must persist 
in positive education and refrain from the pursuit of a political campaign. it is 
necessary to earnestly propagate the central policy on opposing bourgeois 
liberalization to dispel the anxieties of some people. We should further unfold 
education in adhering to the four cardinal principles among the party members and 
cadres of the province on the basis of our previous studies. 

2. Resolutely Implement the Central Instruction on Increasing Production and 

Practicing Economy, Compress the Overheated Atmosphere, and Make Guangdong's Economy 
Developed in a Sustained Steady, and Coordinated way [subhead) 

Lin due stated: Regarding the entire economic work of Guangdong this year, it is 
primarily necessary to resolutely implement the central instruction to reduce the scope 
of investment in fixed assets and to cut back expenditures, namely, the over-expanded 
capital construction and financial expenditures. We should uphold the principle of 
building the nation with diligence and thrift and repress the desire for high 
consumption, while doing our best to increase production, improve economic results, and 
base the economy on long-term steady ond coordinated growth. To grasp this work well, 
it is primarily necessary to unify the understanding of party organizations and leading 
cadres at all levels. We gust resolutely cut the over-expanded scope of capital 
construction, and do our best to maintain a certain rate of growth. <A way out is to 
strengthen management and operation as well as the technical transformation of 


According to Lin Buco, regarding rural work, it is necessary to continue to grasp well 
developmental agriculture and to develop commodity economy in a big way, while paying 
attention to grasping well three weak links. 1) It is necessary to earnestly attach 

importance to grain production; and vigorous measures must be adopted to check the 
phenomenon of cutting back a large acreage of grain fields. [paragraph continues! 


At the same time, it is necessary to popularize the planting of high-quality hybrid 
rice in a big way and to earnestly improve the level of farming to win a bumper grain 
harvest this year. 2) It is necessary to strengthen the control over mountain forests 
as well as the timber market. We must resolutely put a stop to the phenomenon of 
arbitrarily felling of trees. 3) Umremitting efforts should be exerted to grasp well 
the work of family planning and to reduce the natural growth rate of the population. 

3. Further Deepen Reform and the Invigoration of the Economy [subhead] 

In his report, Lin Ruo pointed out: From now on, it is imperative to continue to pay 
attention to fully applying the central specific policies and flexible measures 
exclusive to Guangdong and to further establish the idea of deepening reform to spur 
economic development. We must rapidly unfold all items of reform stipulated in the 
central arrangements. We should promptly sum up and make complete and perfect those 
items undergoing reform. We should also be bold in conducting experiments and 
exploration regarding items without specific requirements proposed by the central 
authorities but belonging to the realm of power of the province. 

Lin Ruo stated: The key issue of urban structural reform is to strengthen the vitality 
of enterprises, turning them into genuine economic bodies that take the initiative in 
their hands in operation, bear responsibility for their own profits and losses, and 
possess the capability for their self-transformation and self-development. It is 
necessary to earnestly implement the three regulations promulgated by the Central 
Committee and the State Council and to put into practice the system of overall 
leadership by the factory director (manager) in an all-round way and the responsibility 
system of term targets for factories (managers). We should firmly grasp the key issue 
of separating the ownership of enterprises from their power of operation, and spur 
their internal reform. Under the premise of observing the law and policies of the 
state, enterprises possess the power to reform the managerial and operational 
structures and to pursue all kinds of effective economic responsibility systems linked 
with wages. Regarding small enterprises, the system of management on lease can be 
implemented. Active exploration should also be conducted in implementing the 
enterprises bankruptcy law. The distribution system of enterprises should undergo 
reform so that enterprises with different economic results in their management may have 
genuine but appropriate differences in their grades of distribution. It is necessary 
to further invigorate the market, including opening the monetary market, and to expand 
the market of production materials. We should improve macrocontrol in a down-to-earth 
way, and change the functions of government organs. Regarding the urban economic 
structural reform, it is necessary to conduct it actively centering around several key 
issues of Guangdong's economic construction, for example, doing a good job in 
structural reform in the control of power supply and transportation, and active 
exploration of the structural reform of foreign trade. Besides, it is necessary to 
actively conduct experiment on turning residential buildings into commodities. 

Regarding rural reform, Lin Ruo stated in his report: The basic starting point of 
reform is to develop socialist commodity economy and to make the rural areas prosper. 
This year, it is necessary to highlight the invigoration of rural finance and 
circulation and to open up the market for production essentials on the basis of 
consolidating and making complete and perfect the results of reform over past few 
years. Long-term and steady policies are to be implemented regarding specialized 
households and individual households of various categories, to protect their 
appropriate operation and legitimate rights and interests. 


He also mentioned: While increasing impact in economic structural reform, it is 
necessary to continue in-depth structural reforms in education, science, and technology 
based on central arrangements. 

According to him, to deepen refors, it is imperative to carry forward among cadres in a 
big way the spirit of reform and blazing new trails. Party organizations at all levels 
in the province should emancipate their minds, become promoters of progress, and 
encourage people to be bold in exploration and blazing new trails. It is necessary to 
support comrades undertaking reform, to create conditions for them, and to accelerate 
the process of reforms. 

4. Continue to Promote Opening Up to the World [subhead] 

Lin Ruo stated: There is still much for Guangdong to accomplish in opening up to the 
outside world. Building export-oriented economy and engaging imports as well as 
establishing ties with other provinces and regions in the hinterland, and playing a 
role in these two aspects are the characteristics and advantages of Guangdong's 
economy. To further give play to such advantages, we should grasp our work well in a 
down-to-earth way in the following aspects: We should continue to implement the 
principle of “grasping industry, agriculture, and trade simultaneously" and develop 
agriculture for foreign exchange earnings, as well as export-oriented industry; all 
places possessing such conditions should run well export commodity production bases. 
We should further improve management and operation in foreign trade, earnestly 
implement the policy of encouraging exports, consolidate and develop trade with Hong 
Kong and Macao, work hard to open overseas markets, and promote still greater growth in 
foreign exchange earned through export of the province. We should take measures in 
such links as production and operation and work hard to cut the cost in foreign 
exchange in the production of export products. We should resolutely implement the 
“Regulations on Encouraging Foreign Investment" issued by the State Council and adopt 
preferential policies to attract foreign investment and to strengthen the confidence of 
foreign entrepreneurs. At the same time, we should stress the use of foreign capital 
and the import of technology and equipment on export-oriented projects as well as those 
involving advanced technologies. We should strengthen the work in absorbing and 
digesting imported advanced technologies and equipment and do our best to reduce our 
dependence on imported materials and parts. We should develop the export of labor 
services and the tourist industry, to earn more non-trade revenues in foreign exchanges. 

Lin Ruo pointed out: In order to promote the policy of opening up to the world, it is 
necessary to further implement the united front policy and policy for Overseas Chinese 
affairs and to actively expand our united front work overseas. We should work hard to 
run well the special economic zones as well as other open zones of various categories. 

5. Draw Up And Implement Plans for the Building of Socialist Spiritual Civilization 
[ subhead } 

In his report, Lin Ruo proposed: To implement the central “Resolution on the Guiding 
Principles for Building Socialist Spiritual Civilization,” we have drafted the Plan of 
Guangdong Province for Building Socialist Spiritual Civilization.” The fulfillment of 
this plan will certainly promote the momentum the further development of the building 
of socialist spiritual civilization in Guangdong. 


According to Lin Ruo, the building of socialist spiritual civilization in the province 
this year should focus on embodying the two basic points in party line since the 34 
Plenary Session of the ilth CPC Central Committee, namely, adhering te the four 
cardinal principles and adhering to reform, opening up, and invigorating the domestic 
economy; we should exert efforts in bringing up socialist citizens in the cultivation 
of lefty ideals, moral integrity, cultural accomplishments, and discipline; and 
improving the qualities of the people in their ideology, ethics, as well as science and 
culture. Long-term targets should be linked with immediate work. It is necessary to 
adopt all forms in a vivid and lively manner to unfold ideological and political work 
in depth. We should refrain from formalism in unfolding activities in building 
socialist spiritual civilization, but pay attention to actual effects. It is necessary 
to do work in a down-to-earth way and to do more practical work. We should further 
unfold education in socialist democracy and the legal system and promote their 
building. Leading cadres at all levels should strengthen their concept of the legal 
system and sense of democracy. We should help departments of science and technology, 
education, culture, and propaganda resolve certain practical problems. Recreational 
activities of a mass nature and popularization of science and technology should be 
unfolded. It is necessary to guide the masses to change prevailing habits and customs, 
to resist feudal and superstitious activities, and to eliminate ugly social phenomena. 
We should conduct education in professional ethics in all trades and professions and 
promote civilized service. Effective measures should be adopted to cure the urban and 
rural areas of dirtiness, disorder, and poor service. The building of spiritual 
civilization should be implemented at the grass-roots. The activities of creating 
civilized units and building spiritual civilization with the joint efforts of the Army 
and civilians, as well as the activities of creating “five good" families have been 
unfolded in various localities; they are good forms in strengthening the building of 
spiritual civilization. We should continuously sum up and spread the experiences in 
this respect to promote the implementation of the building of spiritual civilization in 
grass-roots units. When the provincial plan for building spiritual civilization is 
drawn up, all localities and departments should link with each of its own actual 
conditions in putting forth the specific target and measures for building spiritual 
civilization in their own locality or department, with every level guaranteeing its 

6. Further Strengthen Party Building [subhead) 

Lin Ruo said, the strengthening and improvement of party leadership is the guarantee 
for doing a good job of every item of work and for the smooth progress of socialist 
construction. Therefore, party organizations at all levels should consciously 
understand that the party must control the party, and it is imperative to grasp well 
the building of the party itself. It is necessary to strengthen the ideological 
building, organizational building, and the building of party style. We should further 
do a good job of readjusting and assigning the leading bodies at all levels based on 
the requirement for cadres to be more revolutionary, comparatively younger in age, 
better educated, an professionally competent. 

Lin Ruo concluded, under the correct leadership of the Central Committee, let us unite 
as one, exert our efforts, bring forward gut merits, overcome our shortcomings, work 
ceaselessly and persistently, and strive for better accomplishments in all items of 
work as our gifts to the 13th CPC Nationyi Congress. 


OW131918 Beijing XINHUA in English 1602 GMT 13 Mar 87 

[Text] Shenzhen, March 13 (XINHUA) -- The major targets of industrial production for 
Shenzhen, Chinas largest special economic zone, were announced by Deputy Mayor Zhu 
Yuening at a meeting here today. 

Shenzhen, in Guangdong Province, will manufacture four billion yuan (about 1.08 billion 
U.S. dollars)-worth of goods this year, up 12 percent from last year's figure, with a 
26 percent rise as the goal. 

The zone, where foreign investors enjoy tax cuts and other preferential terms, plans to 
introduce 400 million U.S. dollars in foreign funds this year, three times as much as 
in 1986, Zhu told the meeting. 

This year will see 150 new industrial enterprises go into operation, he said, adding 
that industrial products for export will be valued at 2.25 billion yuan — over half of 
the zone's industrial output value. 

He also listed the following figures for Shenzhen's industrial production this year: 
— Profits will come to 400 million yuan, with the profit rate topping 10 percent; 
— Per-capita productivity will amount to 30,000 yuan; and 

— Spending on industrial capital construction will be worth 1.1 billion yuan, an 
increase of 125 percent. 

A new power plant will go into operation in the second half of this year to ease 
electricity shortage, Zhu said. 

HK150343 Nanning Guangxi Regional Service in Mandarin 1030 GMT 14 Mar 87 

{Excerpts} The regional party committee and government today issued a decision on 
launching a regionwide drive to increase production and practice economy and increase 
revenue and cut spending. [passage omitted] The decision made the following points: 

1. Unify thinking and fully understand the great importance of launching this drive. 
At present the situation in Guangxi is very good. There is political stability and 
unity, and the economy is recording sustained and steady development. However, we must 
also soberly realize that, as in the whole country, there are factors for instability 
in our economic life. The main expressions of this are: There is a big contradiction 
between the supply and demand of grain; we have been too quick to stert non-productive 
construction projects; financial expenditure has grown too fast; the concept of arduous 
struggle and building the country with hard work and thrift has weakened in some units 
and among some of the masses; and there is serious extravagance and waste. 

Hence, launching this drive is certainly not an expedient but an important guiding idea 
and long-term principle for building sociaiism with Chinese characteristics. [passage 


2. Tap potentials and base efforts on increasing production and revenue. We must 
continue to deepen the reforms, focusing on boosting the reserve strength of 
agriculture and enlivening the enterprises, and promote increase of production and 
revenue. In agriculture, we must put grain production in the first place and strive 
for a relatively big increase in output. Without relaxing grain production in the 
slightest, we must focus our vision on exploiting the mountain regions and actively 
develop diversification and the township and town enterprises. We must continue to do 
a good job in supporting poor areas and speed up the pace of extricating these areas 
from poverty and making them rich. 

Industrial production must be centered on improving economic results and maintaining 
steady growth. We must unswervingly implement the central and regional regulations on 
invigorating the enterprises, and tap production potentials. We must also pay 
attention to protecting the enterprises legitimate interests. We must focus 
increasing production on boosting output of products with a ready market. All 
enterprises should further improve product quality, readjust the product mix, and 
vigorously develop new and quality products, to raise their standards. The enterprises 
should step up lateral economic ties, work hard at technological advance, and actively 
launch ‘ emulation and a drive for soliciting rational suggestions. [passage 

In economizing, we should focus on reducing material consumption, speeding up the 
turnaround of capital, and economizing all expenditure. [passage omitted] 

3. Rationally readjust the investment structure and cut non-productive construction. 
[passage omitted] All capital construction projects must be included in the plans. 
People are not allowed to build projects not covered by the plans. It is necessary to 
step up feasibility studies for projects. [passage omitted] 

4. Cut financial expenditure and build revenue and expenditure on a stable 
foundation. We must resolutely fulfill the tasks of increasing revenue, cutting 
spending, and raising capital set by the state and the regional authorities. This year 
all expenditures must be reduced from the actual spending figures for last year in 
accordance with the proportions set by the upper level, with the exception of 
expenditure on price subsidies, pensions, social relief, and special subsidies. All 
localities and departments must ensure the fulfillment of the targets set by the 
regional authorities. In all financial expenditure, we must adhere to the pri ciple of 
living within our means and must not set excessive demands that go beyond our financial 


5. Build the country with hard work and thrift and practice strict economy. All 
localities, departments, and units must oppose and ban extravagance and lavishness. 
[passage omitted] We must display the spirit of saving every drop of water, every unit 
of electricity, and every cent. We must seriously investigate and punish all 
persistent waste and the practice of finding more pretexts for spending money. 

6. Strengthen leadership and strictly observe discipline. The party committees and 
government at all levels must strengthen leadership over this drive and translate all 
tasks and measures into action. [passage omitted] 



HK120111 Chengdu Sichuan Provincial Service in Mandarin 2300 GMT 10 Mar 87 

[Text] Yesterday afternoon, the Sichuan Provincial CPC Committee and the provincial 
people's government held a mobilization meeting for organs at the provincial level on 
the drive to increase production, practice economy, increase revenue, and reduce 
expenditure. The meeting urged the people throughout the province to immediately 
plunge themselves in a massive drive to increase production, practice economy, increase 
revenue, and reduce expenditure, so as to do a better job on various fronts. 

Responsible comrades of the provincial party committee, provincial People's Congress 
Standing Committee, provincial government, and provincial CPPCC Committee who were 
present at the mobilization meeting included Feng Yuanwei, He Haoju, Huang Qizao, Meng 

Dongbo, Liu Haiquan, Kang Zhenhuang, and Yanling Doje. 

The mobilization meeting was presided over by Gu Jinchi, member of the provincial party 
committee Standing Committee and vice governor. Provincial party committee Deputy 
Secretary Nie Ronggui and provincial party committee Deputy Secretary and Governor 
Jiang Minkuan delivered speeches at the meeting. 

In his speech Jiang Minkuan focused on three points: 

1. The need to seek a common understanding, reorient our thinking, and keep up with 
the new situation; 

2. The main targets and measures of our province in launching the drive to increase 
production, practice economy, increase revenue, and reduce expenditure; 

3. The need to strengthen leadership over the drive to promote production, practice 
economy, increase revenue, and reduce expenditure; and to exert our utmost to implement 
the policies concerned. 

Comrade Jiang Minkuan said: This year, in increasing production, practicing economy, 
increasing revenue, reducing expenditure, and improving economic results in all 
all-round way, our province's goal is to raise the total agricultural output by 6 
percent over last year and the total industrial output by 6 percent over last year; 
and, on this basis, we are to strive to raise production output and overfulfill the 
production quota to the largest extent. In order to fufill this goal, we must 
definitely concentrate our attention on the key links and devote our efforts to 
carrying out the following measures, namely, ensuring a steady growth in grain output 
and developing commodity production in an all-round way in rural areas; readjusting the 
product mix, improving product quality, and raising production of marketable industrial 
products; vigorously reducing material consumption and trying hard to turn deficits 
into profits; keeping the scale of investment in fixed assets under strict control and 
continuing to readjust the investment structure and improve the results of investments; 
taking the whole situation into consideration and subordinating local interests to the 
interests of the whole, so as to ensure the fulfillment of the financial and revenue 
quota; vigorously promoting a hardworking and frugal work style and opposing waste and 
extravagance; and keeping down the growing demand for funds, and making better use of 


To conclude his speech, Comrade Jiang Minkuan said: We must firmly adhere to the four 
cardinal principles; uphold the line of reform, opening up to the outside world, and 
enlivening the economy; seek a common ground; adroitly guide action according to 
circumstances; heighten our confidence; work hard in a down-to-earth manner, make a 
sustained effort to carry out the drive on a massive scale and in a deep-going and 
healthy way; and thus make new contributions to the success of the drive of increasing 
production, practicing economy, increasing revenue, and reducing expenditure. 

Present at yesterday's mobilization meeting were a total of more than 1,500 people, 
including the responsible comrades of all departments, committees, bureaus, and offices 
at the provincial level; and the responsible comrades of the Sichuan provincial Higher 
People's Court, the provincial People’s Procuratorate, and some enterprises and service 


OW131435 Beijing XINHUA in English 1420 GMT 13 Mar 87 

{Text} Lhasa, March 13 (XINHUA) — “Government officials must do as Tibetans do when 
working in Tibet,” said Wu Jinghua, secretary of the regional party committee of the 
Tibet Autonomous Region. 

Wu, of the Yi minority nationality, always wears Tibetan costumes on Tibetan festivals 
showing his respect for local customs. He has also proposed that roads in Lhasa regain 
their old names that were changed during the “Cultural Revolution” (1966-76) for 
carrying religious connotations. 

These are all as part of the government's campaign to protect the local religion and 
social customs, and the regional People's Congress is drafting laws for the purpose. 

Since 1979, official policies have ensured that local residents can preserve their 
traditional way of life. 

Tibetans now celebrate more than 20 traditional festivals a year. The most important 
relig ous ritual, the Lhasa prayer ceremony was revived last year. 

The regional government also donated ten yuan (about 27 U.S. dollars) [figures as 
received] to every one of the more than 1,800 lamas that attended it and sent medical 
teams to the ceremony. 

On other local holidays cadres of the Han nationality usually present hadas, pieces of 
silk used as greeting gifts, to their colleagues. 

Earlier this year, local government issued regulations to ban sightseers from “sky 
burial” (open air disposal of corpses) sites, in order to protect the sensitivities of 
the local people. 


8K121551 Lanzhou Gansu Provincial Service in Mandarin 1100 GMT 11 Mar 87 

{Text} All areas in the province are now being hit by serious drought. To properly 
carry out the work of fighting the drought and ensuring a bumper harvest in 
agriculture, and to minimize the losses caused by the drought, the provincial party 
committee and government today issued an urgent circular, urging all localities and 
departments to carry out in depth the work of fighting the drought and ensuring «a 
bumper harvest. 

The circular reads: The current drought has seriously jeopardized spring farm work. 
Therefore, party and government leaders at all levels must put fighting the drought and 
ensuring a bumper harvest above all and firmly grasp it at present. They must 
seriously solve practical problems in fighting the drought. All localities must act 
according to local conditions. If it is possible to grow summer grain, they must grow 
summer grain; if it is impossible to grow summer grain, they may grow autum grain or 
autum vegetables. In the meantime, they must seize all favorable opportunities to 
rush sowing and properly conduct field management of winter crops. The more crops they 
sow and the more field work they do, the better. Areas where there are rivers must 
bring into play their strong points, promptly carry out spring irrigation and other 
farm work, readjust proportions of summer and autum crops according to the local 
conditions, and make reasonable arrangements. All trades must treat fighting the 
drought and ensuring a bumper harvest as their unshirkable duty, make early 
preparations to supply more means of agricultural production, and give priority to 
solving the problem of supply of urgently needed goods, in fighting the drought. Al! 
departments must send cadres to the first line of spring farm work to solve practical 
problems. According to the requirement of the provincial authorities, about one-third 
of the cadres should be in charge of overall work, and one-third should go to the 
grass-roots to carry out various service work in spring farming. 

The provincial party committee and government called on all cadres and masses in the 
province to take immediate action, to make concerted efforts to fight the drought and 
develop spring farm work, and to minimize *he losses caused by the drought. 

HK140243 Lanzhou Gansu Provincial Service in Mandarin 1100 GMT 13 Mar 87 

[Excerpts! The 234 meeting of the 6th provincial People's Congress Standing Committee 
held a fuli session today to listen to a report by Governor Jia Zhijie on launching the 
movement to increase production and practice economy and increase revenue and cut 
spending. la addition, provincial price commission Deputy Director (Liang Bin) 
reported on price reforms, and provincial planning commission Deputy Director (Ke 
Baoclin) reported on the situation in commodity circulation. Liu Bing, chairman of the 
provincial People's Congress Standing Committee, attended. [passage omitted! 

Governor Jia Zhijie said in his report that, to implement the spirit of the national 
meeting of governors, the province made prompt arrangements to convey this spirit and 
make arrangements for implementing it, and aleo proposed tapping potentials, increasing 
revenue, controlling the scale of activities, ensuring the key points, economizing 
expenditure, strengthening supervision, blocking loopholes, and strengthening 
leadership, so as to translate the tasks of the movement into action. 


The whole province is now swinging into action and the momentum of development is very 
good. [passage omitted) 

He said: After the stage of conducting propaganda and mobilization and making 
arrangements and plans, we will enter the second stage of the movement, which calls for 
further checking on and implementing the tasks and measures in increasing production 
and practicing economy. la the third stage, we will convene a meeting to exchenge 
experiences at the end of the second quarter to sum up and popularize typical 
experiences and resolve new problems that arise. 

Jia Thijie said in conclusion: Launching the movement to increase production and 
practice economy and increase revenue and cut spending is of very great importance for 

resolving existing problems in the economy and ensuring long-term stable development of 
the national economy. We must get a really good grasp of this movement, translate it 
into action, and ensure sustained, steady, and coordinated development of our economy. 

OW171558 Beijing XINHUA in English 1550 GMT 17 Mar 87 

{Text} Kian, March 17 (XINHUA) — Zhang Boxing, the former acting governor of Shaanxi 
Province, was elected governor at the fifth session of the province s sixth People's 

Congress here today. 

The 57-year-old Zhang is from Baxian County, Hebei Province. He joined the revolution 
in October 1947, and the Communist Party in November 1950. His previous posts included 
deputy director of the office of the Industrial Department of Shaanxi, and deputy 
director and deputy party secretary of the provincial Petrochemical Bureau. Tang was 
deputy director and then director of the provincial Organization Department in 1981 and 
was elected deputy governor in May 1985. He became acting governor and deputy 
secretary of the province's party committee last December 

WK180125 Kian Shaanxi Provincial Service in Mandarin 0030 GMT 18 Mar 87 

{Excerpts} The Fifth Session of the Sixth Shaanxi Provincial People's Congress 
concluded in Kian on 17 March. [passage omitted) Present were responsible comrades of 
the party, government, Army, and CPPCC in Shaanxi including Bai Jinian, Zhang Boxing, 
Thang Ze, (Zhao Huanju), and Tan Weixu, together with Chang Lifu, member of the Central 
Advisory Commission. Executive Chairman Li Lianbi presided at the closing ceremony. 

[passage omitted] 

The session elected Zhang Boxing governor of Shaanxi. Previously, Zhang Boxing held 
the poste of leader of the coordination group of the provincial Industry and 
Communications Office, deputy director of the provincial Petrochemical Bureau and 
deputy secretary of the bureau's party group, deputy director and director of the 
provincial party committee's Organization Department, vice governor, deputy secretary 
of the provincial party and committee, and acting governor. [passage omitted] 

The session unanimously passed resolutions on the provincial government work report, 
the province's plan for economic and social development in 1987, the final accounts for 
1986 and the draft budget for 1987, and the work reports of the provincial People's 
Congress Standing Committee Higher People's Court, and People's Procuratorate. The 
session adopted a resolution on improving environmental protection and preventing 
pollution. [passage omitted) 

BINA vi 

I. 18 Mar 87 C 

OW180218 Beijing XINHUA in English 0203 GMT 18 Mar 87 

[rent]! Beijing, March 18 (XINHUA) — China and Portugal began their fourth round of 
talks on the settlement of the Macao issue at the state guesthouse here this sorning. 

Attending the talks were Chinese Government delegation headed by Vice-Minister of 
Foreign Affairs Zhou Nan and the Portuguese Government delegation headed by Rui Medina 
with Portuguese Ambassador to China Octavio N. Valerio as its advisor. 

Accord Anticipated 
HK180920 Hong Kong AFP in English 0900 GMT 18 Mar 87 
[Excerpt] Beijing, March 18 (AFP) — China's chief negotiator to talks with Portugual 
on the return of Macao to Chinese administration said Wednesday that he was 
increasingly optimistic that an agreement would be reached shortly. 

Portugal's ambassador to Beijing, Octavio Valerio, indicated that an accore could come 

“Il am more and more optimistic,” Chinese Deputy Foreign Minister Zhou Nan said 
following talks and a working lunch with the Portuguese delegation Wednesday. 

The Chinese negotiator said that the two sides would hold further discussions leser 
Wednesday and Thursday. 

Asked if an agreement would be announced Thursday, Mr Valerio said: “Tomorrow, that 
will be a nice day,” dding that he too was optimistic about the outcome of the talks. 

“Look at our faces; we are very happy,” he said, declining to confirm or deny whether 
the Portuguese-administered territory would return to Chinese rule in December 1999, as 
informed sources have said. 

“I haven't seen anything about that, Mr Valerio said. 

Before this fourth round of negotiations began Wednesday, informed Chinese and 
Portuguese sources said that dei, ing and Lisbon had agreed on turning Macao over to 
China in 1999. 

Britain has agreed to turn over nearby Hong Kong to China on July 1, 1997. 

A source close to the Sino-Portuguese talks said Wednesday that this round of 
discussions would be the last and that an agreement was near. 

r Zheuw had said Tuesday that he hoped an agreement would be reached before China's 
Natiouwsl People's Congress convenes next Wednesday. [passage omitted)