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_Daily Report— 


FBIS-CHI-94-103 


27 Mey 1994 


Daily Report 
China 


FBIS-CHI-94-103 CONTENTS 27 May 1994 


NOTICE TO READERS: An * indicates material not disseminated in electronic form. 
INTERNATIONAL AFFAIRS 
General 


Reports on Foreign Ministry Weekly Briefing Continue 
Views Illegal Emigration {ZHONGGUO XINWEN SHE] 
Reiterates Jiang’s Remarks on Tiananmen /ZHONGGUO XINWEN SHE] 
Warns Against Conditional MFN /ZHONGGUO XINWEN SHE] .00.0........0ccevccoccseeeeeeecceeseees 
Comments on DPRK Nuclear Issue /X/NHUA] 

Government Cancels ‘Some’ Foreign Correspondents’ Visas /{XINHUA] 

U.S. President Clinton Sends Delegation To Examine East Africa /XINHUA] 

Representative Says U.S. Supports GATT Membership /XINHUAj 

XINHUA Notes CRS Report on Wheat Exports, MFN Status 

U.S., Vietnam Decide To Establish Liaison Offices /XINHUA] 

U.S. Secretary Christopher Meets With Peres /XINHUA] 

Greece Expresses Displeasure Over U.S. Statement on Albania /{X/NHUA] 

Beijing Participates in Jakarta Textile Machinery Exhibit /X/NHUA] 

Yugoslavia Rules Out Joining NATO Peace Partnership /XINHUA] 


United States & Canada 


Foreign Ministry ‘Welcomes’ U.S. Decision on MFN, Rights /XINHUA] 

More on Statement /X/NHUA] 
Foreign Trade Spokesman on Clinton’s MFN Decision /XINHUA] 
XINHUA Reports Clinton’s Renewal of China’s MFN Status 

Further on Clinton’s Decision 
Main Arms Exporter Says U.S. Sanctions ‘Discriminatory’ /AFP] 
Daily Comments on Renewal of MFN Status /Hong Kong HSIN WAN PAO 27 May] 
U.S. Business Groups’ Reaction to MFN Renewal Cited /XINHUA] 
U.S. Congressmen Express Support for MFN Renewal /XINHUA] 
Liu Huaging Meets McNamara Delegation /X/NHUA] 
Liu Huaging Meets Former U.S. Defense Secretary /XINHUA] 
President Clinton Names Aspin to Foreign Intelligence Board /XINHUA] 
Heroin Use Nears Crisis Level in U.S. /XINHUA] 


Central Eurasia 
Li Peng Meets Russian Prime Minister /X/NHUA] 9 
Premiers Hold Talks /X/NHUA] 9 
General Yu Yongbo Meets Russian Military Delegation /JIEFANGJUN BAO 14 May] .........-000+ il 
Northeast Asia 
Cambodian Leade’s Arrive in Pyongyang for Talks /X/NHUA] 11 
DPRK Sets Up New Mission at Panmunjom /X/NHUA] » 
Wang Hanbin Mects NODONG SINMUN Delegation (Beijing Radio] 11 
Officials Open Sino-Japanese Industrial Park in Dalian /Hong Kong WEN WEI PO 19 May) ...... 12 
Article on Japan’s Attitude Toward Second World War /RENMIN RIBAO 14 May] 13 
Southeast Asia & Pacific 


Power Equipment Supply Contract Signed With Malaysia /X/NHUA] 13 


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-- - 2 --  B l 


FBIS-CHI-94-103 


27 May 1994 2 China 
Government To Send Trade Group to Australian Symposiums /X7]NHUA] 13 
Australian Insurance Firm Opens Office in Beijing /XI]NHUA] 14 
Government Seeks To Develop Friendly Ties With Palau /XINHUA] i4 

Near East & South Asia 
Deputy Foreign Minister Leaves for Middle East /XINHUA] 15 
Report Stresses Trade Between India, China /XINHUA] 15 
Visiting Iranian Envoy on Media Cooperation /Tehran IRNA] 15 
Border Trade With Nepal Flourishes /XINHUA] 16 
Flight Between Urumgi, Islamabad To Start 10 Jul /XINHUA] . 16 
Reportage on Wei Jianxing-Led Delegation To Syria 16 
Meets With Syrian Party Head /XINHUA] 16 
Holds Talks With Syrian Prime Minister /XINHUA) ...... 16 
Confers With Syrian President /XINHUA) .... 17 
Sub-Saharan Africa 
Qian Qichen Addresses African Liberation Day Reception /XINHUA] 17 
Congolese President Tours Shenzhen, Prepares To Return Home /XINHUAj/ 18 
Beijing Offers Establishment of Relations With Malawi /XINHUA] 18 
CPC's Li Tieying Meets Seychelles Guests /XINHUA] 18 
Beijing Reception Celebrates Birth of ‘New’ South Africa /XINHUA/ 18 
Beijing Presents Sports Facilities to Zambia /XI/NHUA] 19 
West Europe 
Shandong, Hangzhou Participate in Cyprus Fair /XINHUA] 19 
Defense Minister Chi Haotian Meets Finnish Army Chief /(JIEFANGJUN BAO 28 / 19 
Guangdong Secretary Ends Visit To Germany, Denmark /Guangzhou Radio] ................000000000000 19 
Supreme People’s Court Delegation Leaves for Italy /XINHUA] ...............cc.sccscssceeseeeeeeeneeeeeees 20 
NPC Delegation Meets Portugvese Official /XINHUA] me 20 
NATIONAL AFFAIRS 
Political & Social 
Daily Provides Text of Dissidents’ Petition Letter /Hong Kong HSIN PAO 27 May] .....0....00000000+ 21 
Report on Leaders’ Activities 21-26 May  ......ccccscccesccccccsccecssccessversscccosoocoscoeoseooososcssoossoocosocseooooeoes sees 21 
CPC Penetration Into Foreign Companies Viewed /Hong Kong CHENG MING I May] ...........0. 22 
Beijing Marks Anniversary of Mao Talks /XINHUA/ . 24 
Ren Jianxin Stresses Stepping Up Judicial Training /X/NHUA] 25 
Wang Zhaoguo Meets Hong Kong Textile Group /X/NHUA] 25 
Column Urges Establishing Independent Judiciary /FAZHI RIBAO 23 May] .........ssecsseeeeeeeseseees 26 
Hu Jintao Speaks at Child Development Program Meeting /XINJIUA/ » Oo 
Li Ruihuan, Peng Peiyun Attend Meeting on ‘Handicapped’ /XINHUA]  .......0c.cccccseeeesesereeeeeeeeees 27 
Guangdong Holds Deng Xiaoping Photograph Exhibition /Hong Kong WEN WEI PO 27 aay — 
Statistics Exaggeration Problem Viewed /Hong Kong CHENG MING I Apr] 28 
Statistics Show Crime Increases in First Quarter /FAZHI RIBAO 2 May] : —— 
State Post-Doctoral Enrollment To Expand /CH1INA DAILY 27 May] .......ssvsssssscseeeeserseeeseoeeseesesees 30 
Center To Study Socialism With Chinese Characteristics /XINHUA/ . - — 
Circular on Controlling Natural Caffeine Production {ZHONGGUO TONGXUN SHE] ...........000+ 31 
Beijing International Airport Project Approved /Hong Kong TA KUNG PAO 13 May] ........00-00000+ 31 
Science & Technology 
Xu Penghang Views Increasing Domestic Equipment Manufacture /XINITUA] .........0cceseeeeeeeeeees 31 
Economic & Agricultural 


Minister Wu Yi Reports on Foreign Trade /GUOJI SHANGBAO 14 May]  ....c.0.sevsveeveereeereeeeeenes 32 


FBIS-CHI-94-103 
27 May 1994 3 


Chief Weatherman Forecasts Droughts, Floods /X/NHUA] 


Minister Inspects Ship Accident Site in Shanghai 


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Business Information Exchange Forums Viewed /Hong Kong EASTERN EXPRESS 27 May] 
Beijing To Allow Foreign Investment in Aviation /CHINA DAILY 27 May] 


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Official Explains interbank Foreign Exchange Market [ZHONGGUO XINWEN SHE] 


Planning Commission on ‘Illegal’ Price Hikes {ZHONGGUO XINWEN SHE] 


Central Bank To Publish Financial Outlook in July /XINHUA] 


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Journal Analyzes Fiscal, Tax Reforms /JINGJI YANJIU 20 Apr] 


Shanghai B-Share Index Sets ‘New Record High’ /XINHUA] a 


Taxation Administration's Functions Described /Beijing Radio] 


Article Views Management of Private Businesses /JINGJI GUANLI 5 Apr] 


Urban Residents Enjoy Better Housing Conditions /XINHUA] 


Beijing To Speed Up Electric Power Projects /XINHUA] 


XINHUA Views Future of Auto Industry 


Foreign Capital Used To Develop Power Industry {ZHONGGUO TONGXUN SHE] 


Foreign Investment in Agriculture ‘Booming’ /X/NHUA] 
Rare Earth Used To Regulate Forestry Growts /XINHUA] 


REGIONAL AFFAIRS 


East Region 


Shandong Secretary Inspects Qihe County /Jinan Radio] is 
Secretary or Theory, Knowledge Studies /Jiman Radio]  ............cccccceccecceesseeee-eeeceenees 


Shandong 
Shandong Relays Central Directive on Enhancing Studies /Jinan Radio] 


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Shandong To Expand Telecommunications Services /DAZHONG RIBAO 17 May] ..............+0 


Shanghai Urges Screening of Public-Funded Overseas Tours /Shanghai Radi 


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New Investment Form Used in Pudong To Attract Foreigners (ZHONGGUO XINWEN SHE] “eo 


Shanghai's Pudong Attracts More Domestic Investment [XINHUA] ..............cc.cccseesseseeroseeeneneee 


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Shanghai Internationalizes Banking Operations /X/NHUA] 


Shanghai's International Competitiveness Growing /XINHUA] 


Zhejiang Governor Hears Report on Grain Farming {ZHEJIANG RIBAO 18 May] ............+. 
Cen<‘ral-South Region 


Guangzhou Religious Leader Views ‘Disobedience Campaign’ 
[Hong Kong EASTERN EXPRESS 26 May] 


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Secretary Holds Talks With Model Workers /Guangzhou Radioj 


Guangdong 
Guangdong Governor Inspects Zhaoqging, Issues Instructions (Cumngmes Radio] .. 


Guangzhou Banking Business Flourishing /X/NHUA] : aon 


Guangdong Reports Stable Economic Growth /X/NHUA/ : , 


Guangdong County Upgraded to City Status /ZHONGGUO XINWEN SHE] 


Success of Shenzhen’s Shekou Industrial Zone Viewed [XINHUA] 


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Shenzhen Builds Own Power Industry [XINHUA] .......ccc.cscssssessserereoreeeeseneeeeeeeeenseeneescennerseeneennes 


Guangxi Chairman Interviewed on Reform, Achievements /Nanning Radio) .. 


Hainan Secretary Meets With Shanghai Pudong Delegation /Haikou Radio) ............. ~_ 
Hainan Holds Meeting on Poor, Floating Population /Haikou Radio] einen 
Hainan Accelerates Construction of Industrial Parks /X/NHUA) .... senenpmeeennemenenven 
Hubei Trade Delegation Travels to Germany, France /Wuhan Radio/ tit , 


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Visiting Hubei Secretary Meets German Saarland Leaders /Wuhan Radio) ....... 


Hunan Secretary Reviews Changsha Militia /Changsha Radio] ...ccccccsvvvevsesvsssem einai 


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Hunan Secretary Addresses Meeting on Honesty, Cleanness /Changsha Radio] ..............0.... — 


Hunan Secretary Inspects Higher Learning Institutions /Changsha Radio/ ....... metionne 


Southwest Region 


Japanese-Aided Water Project Completed in Guizhou [XINHUA] ............c00-c000e0oes a — 
Guizhou Economic Delegation Returns From Shanghai /Guiyang Radio} . eunenineeenemtaen 
Distinguished Economist Lectures in Guizhou /Guiyang Radio) .............00.+»- suevtesmnnnseetimhennete 
Sichuan Hosts National Legal Papers Conference [Chengdu Radio] ...0.........ccsseseereeeeeeeeereens 
Article Views Tibet’s Recent Economic Development /RENMIN RIBAO 16 _ 


FBIS-CHI-94-103 
27 May 1994 4 


Epidemic Diseases Break Out in Parts of Yunnan {ZHONGGUO TONGXUN SHE] 


North Region 


Beijing Passes Law To Curb Loss of Arable Land /XINHUA] 


Beijing Mayor on Expansion of Urban Construction /X/NHUA/ 


Beijing To Control Prices of Daily Necessities (ZHONGGUO XINWEN SHE] 


Strengthens Control on Occupational Hazards /XINHUA] ...............-0+.0v» 


Beijing 
Beijing Adopts Regulations on Women’s Rights /{XINHUA] 


Beijing's Copyright Protection Achievements Viewed {XINHUA} 


Hebei Auctions Right To Develop Mountain Areas /XI]NHUA] 


Hebei’s Jingtang To Become International Port City /XINHUA] 


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Hebei Chemical Plant Fined for Discharging Toxic Waste /CHINA DAILY 27 May] 


Inner Mongolia Benefits From Open Policy /XINHUA/ 


Shanx: Suffers “Very Serious’ Environmental Poilution {ZHONGGUO TONGXUN are 


Tianjin To Upgrade State Firms With Foreign Funds /XINHUA] 


Tianjin Mayor on Medical Insurance, Coastal Development /Tianjin Radioj 


Tianjin Holds Enterprise Transformation Meeting /7IANJIN RIBAO 13 May] 


Tianjin's High-Tech Sector Attracts Foreign Investment /XJNHUA]) 


Overseas Investment Flows Into Tianjin /XINHUA} . 


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Tianjin Harbor Opens Commodity Exhibition Center /TIANJIN RIBAO 13 May] 


Part-Time Jobs Attract More Tianjin College Students /XINHUA/ .. 


Northeast Region 


Secretary Visits Army Units /Harbin Radio) ....... 


Heilongjiang 
CIS Veterans Delegation Visits Heilongjiang /Harbin Radio] 


Greater Rural Reform Urged in Heilongjiang 9/HEILONGJIANG RIBAO 16 May] 


Jilin Religious Affairs Bureau Meeting Ends / 


Changchun Radioj 
Liaoning Official Comments on Organizational Reform Ma nmerany A RiBAO 13 May] 


Liaoning’s Liaoyang City Gives Aid to Poor Workers //. 


POCSCH EET VERO ROSE 


Northwest Region 


TAIWAN 


Government Refuses Comment 
Taipei Willing To Talk With U.S. on War Debt /{CNA/ ..... 
Premier To Stop i 


Taipei Puts Hold on , So Transport Links With PRC /CNA/ 


Qinghai Converts Nuclear Weapons Base for Civilian Use /Hong Kong MING PAO 22 May] ...... 


Qinghai Forging Closer Overseas Economic Ties /XINHUA 


Qinghai Statistical Bureau Figures on Economic Growth / INGHAI RIBAO 22 Jan} 
More Than 300,000 Migrant Workers in ag ae Maggy nan TONGXUN SHE] 
Xinjiang’s Chairman Addresses Propaganda Con » [Urum@i TV] 


Xinjiang Commends Outstanding Radio, TV Stations /Urumgi TV] 


Xinjiang’s Oil, Mineral Future Promising for China /XINHUA] 


on MFN Renewal for PRC /CNA/ 


Council Lifts Ban on Group Tours to Mainland /Taipei Radio] inde 


Tourists Warned About ‘High Risk’ Spots in Mainland /CNA/ 
Mainland China Biggest Loser in Qiandao Lake Incident /CNA/ 


Minister Denies Rumors on Loan to South Africa /CNA/ ...... 


President Calls For Solidarity To Speed Up Reforms /CNA/ 


Economy Faces ‘Host of Potential Threats’ /CNA/ seitidninhabeetnn 


NAFTA Zones Courting Taiwan Investment /CNA/ 
Permission Granted for Foreign Beer, Wine Plants /CNA/ .... . 
Auto Makers Visit France, Belgium, UK, Germany /CNA/ ....... oven 


SSSSESE 


FBIS-CHI-94-103 


27 May 1994 5 China 
HONG KONG & MACAO 
Hong Kong 
Leaders Meet With New PWC Members, Hong Kong Advisers 93 
Jiang Zemin Attends Ceremony (ZHONGGUO XINWEN SHE] ' 93 
Jiang Makes Remarks on Hong Kong /(XINHUA] leven mate Tae 
Jiang, Others Receive New Appointees /{XINHUA] lanai "i 44 
Qiao Shi Issues Appointments /XINHUA/ ! . 94 
Qiao Meets With New Members /XINHUA] 95 
Qian Qichen Fetes Advisers /XINHU. 95 
Lu Ping Addresses New Advisers {XINHUA 96 
Lu Ping, Zhou Nan Hold Discussion /XINHUA] .. 96 
XINHUA Official Views Proposed Human 97 
Says Commission ‘Violates’ Basic Law /XINHU. 97 
Rejects Creation of Commission /Hong Kong TA KUNG PAO 26 May] 97 
Li Langing Restates ‘Goal on the Hong Kong Issue’ /X7NHU. 98 
‘Roundup’ Stresses Legco Term To End in 1997 ‘ZHONGGUO TONGXUN SHE} 98 
Unnamed Official Critical of Visa for Han Dongfang 
[Hong Kong EASTERN EXPRESS 26 May] 2.0...» 99 
Government ‘Likely’ To Grant Visa to Dissident {Hong Kong EASTERN EXPRESS 27 May] ..... 99 
Advisers Criticize Imprisonment of Reporter 
[Hong Kong SOUTH CHINA MORNING POST 27 May] | — 
Governor Says “Worst’ Over in Relations With Beijing 
[Hong Kong EASTERN EXPRESS 27 May] ) :, , ; 100 
“Liberal Party’ Reform Package Rejected by China 
[Hong Kong SOUTH CHINA MORNING POST 26 May] - - 101 
Lu Ping Views Composition of Final Court of Appeal 
[Hong Kong SOUTH CHINA MORNING POST 27 May] : — 102 
Views Disposal of Land Along Airport Railroad 
[Hong Kong SOUTH CHINA MORNING POST 27 May] ....00.c0veeev-sserevensenes oor 102 
PAI HSING To Stop Publication Next Month tong Kong MING PAO 26 May] 103 
International Travel Exposition Opens in Hong [XINHUA; ..... 103 
Macao 
Official Addresses Enterprise Association /X7INHUAj : , , , 104 
Macao To Participate in Hong Kong Global Tourism Fair /XiNHUA] — 104 
Banking Corporation Issues Global Access Credit Card /XINHUA] 104 


Macao, Mainland Cooperate in Adult Training §/XINHUAJ 104 


27 May 1994 


General 
! F Ww 
Reports on Foreign Ministry Weekly Briefing 


Views Illegal Emigration 
HK2605 124194 Beijing ZHONGGUO XINWEN SHE 
in Chinese 1110 GMT 26 May 94 


[Text] Beijing, 26 May (ZHONGGUO XINWEN 
SHE)—Chinese Foreign Ministry spokesman Wu 
Jianmin said today that China has always opposed illegal 
emigration and will stop any such activity it discovers 
with effective measures. 


In reply to a reporter's question at the foreign ministry 
news conference, Wu Jianmin said: China has also 
noticed that illegal emigration is an international phe- 
nomenon. Ringleaders of some illegal emigration rackets 
and their headquarters are not based in China. China 
would like to join hands with other countries in stopping 
illegal emigrants, especially cracking down on ring- 
leaders and organizations involved in illegal emigration. 


Wu said: If illegal migrants discovered are confirmed to 
be of China nationality, China would like to cooperate 
with concerned countries in bringing them back. 


Reiterates Jiang’s Remarks on Tiananmen 
HK2605 123194 Beijing ZHONGGUO XINWEN SHE 
in Chinese 1109 GMT 26 May 94 


[Text] Beijing, 26 May (ZHONGGUO XINWEN 
SHE)—Chinese Foreign Ministry spokesman Wu 
Jianmin said today that history is the best possible 
judgement for an historical event. 


Wu Jianmin made the above statement in reply to a 
question about the “June 4” incident at today’s news 
conference, stressing that over the last five years, China 
has enjoyed political stability, economic development, 
and further improvement in people's livelihood. The 
status quo accords with the wish of the Chinese people 
and meets the need of the region and the world for peace, 
stability, and development. 

Wu Jianmin quoted Jiang Zemin as saying in a eeting 
with Malaysian Prime Minister Mahathir on 12 May: 
Looking back at the political turmoil that occurred 
between late spring and early summer in 1989, I feel that 
China would not have been enjoying today’s stability if it 
had not taken resolute measures then. 


Warns Against Conditional MFN 


11K 2605 121894 Beijing ZHONGGUO XINWEN SHE 
in Chinese 1132 GMT 26 May 94 


[Text] Beijing, 26 May (ZHONGGUO XINWEN 
SHE)—Chinese Foreign Ministry spokesman Wu 
Jianmin said today that China will not accept conditions 
attached by the United States to the renewal of China's 
most-favored-nation [MFN] trading status. 


INTERNATIONAL AFFAIRS 1 


At today’s press briefing, reporters from all countries 
focused their questions on the MFN issue. We are still 
waiting for the decision made by President Clinton, Wu 
Jianmin said, we hope that President Clinton will make 
a wise decision. 


Last year President Clinton issued an executive order 
linking human rights and other rssues with China’s MFN 
trading status. A year has elapsed and the choice to be 
made by the U.S. President and administration has 
attracted public attention. 


The Chinese side has always maintained that trade 
should net be linked with unrelated issues, Wu Jianmin 
said, such a practice is rare in the world. China has trade 
ties with more than 200 countries and regions in the 
world and we never had any problems with them. 

As for the differences between China and the United 
States on the question of human rights, Wu stated, China 
believes that dialogue can be heid on the basis of equality 
and mutuz: respect, and the purpose is to increase 
mutual understanding. China is against interference in 
the internal affairs of another country. 

Wu Jianmin stressed that international trade should be 
based on equality and mutual benefit. The unilateral 
exertion of pressure and adoption of restrictive measures 
with regard to trade is not in conformity with interna- 
tional practices. These measures are unwise as they harm 
the interests of both sides. 


Comments on DPRK Nuclear Issue 


OW 2605120794 Beijing XINHUA Domestic Service in 
Chinese 1039 GMT 26 May 94 


[Text] Beijing, 26 May (XINHUA)—At a news briefing 
this afternoon, Foreign Affairs Ministry spokesman Wu 
Jianmin answered reporters’ questions on such issues as 
the election of Herzog as president of Germany and the 
meeting of the Sino-British Airport Committee. 


[Unidentified correspondent] What are China’s com- 
ments on the election of Herzog as president of Ger- 
many? 


[Wu] President Jiang Zemin has sent a message of 

congratulations to President-Elect Herzog. We sincerely 

hope that the existing friendly relations and cooperation 

between China and the Federal Republic of Germany 

= continue to develop during Mr. Herzog’s term of 
ice. 


[Unidentified correspondent] What has the just- 
concluded Sino-British Airport Committee meeting 
achieved? How do you evaluate the meeting? What 
further measures do the Chinese plan to adopt to reach 


agrooment on financial arrangements a8 S008 a8 poe 
sibie? 


[Wu] During the 20 May Sino-British Airport Com- 
mittee meeting, the Chinese and British further dis- 
cussed the financial arrangements for the new Hong 


2 INTERNATIONAL AFFAIRS 


Kong airport. They made positive progress and reached 
a consensus on some issues. The two sides unanimously 


agreed to accelerate their work so as to reach an overall 


spent fuel rod and will test them. We welcome any 
positive development toward the solution of the DPRK 
nuclear issue rvithin the framework of three bilateral 
directly concerned will make continued efforts to strive 
for a proper settlement on the DPRK nuclear issue. 


Government Cancels ‘Some’ Foreign 
Correspondents’ Visas 


OW270505 1894 Beijing XINHUA in Engiish 0502 
GMT 27 May 94 


[Text] Beijing, May 27 (XINHUA)—The visas of some 
foreign correspondents, inc’ :ding Kwon Hung-sun from 


US. President Clinton Sends Delegation To 
Examine East Africa 


OW2705054294 Beijing XINHUA in English 0457 
GMT 27 May 94 


[Text] Washington, May 26 (XINHUA)—U.S. President 
Bill Clinton today sent a delegation to East Africa to 
examine the disaster conditions that are threatening the 
lives of 20 million people. 

“The crisis in the East Africa region threatens every 
nation in the region and is caused by drought conditions 
and civil conflicts,” White House Press Secretary Dee 
Dee Myers said in a statement. 

“At this carly stage, it is still possible to avoid wide- 
spread famine,” Myers said, “but an estimated 20 mil- 
lion people are currently at risk and may have to leave 
their homes to search for food.” 


Brian Atwood, administrator of the U.S. Agency for 
International Development, is the head of the bipartisan 
delegation that includes members of Congress and rep- 
resentatives of volunteer organizations working in the 
area. 


The delegation left here today and will travel to Ethiopia, 
Eritrea and Kenya. 


FBIS-CHI-94-103 
27 May 1994 


Representative “avs U.S, Supports GATT 
Membershi- 


OW25052119%: Beijing XINHUA in English 1321 
GMT 25 May 94 


{Texi] Kuala Lumpur, May 25 (XINHUA)—The United 
States supports the resumption of China’s GATT mem- 
bership on condition that the latter's trade regime con- 
forms to GATT (General Agreement on Tarifls and 
Trade), U.S. Deputy Trade Representative Booth 
Gardner said here today. 


“The United States strongly support China's accession to 
the GATT and membership in the WTO (World Trade 
Organization). But we support China's accession on the 
basis of China’s willingness to enter the GATT on the 
terms of the GATT. Where China's trade regime is not 
consistent with the GATT, it must change,” Gardner 
told a session of the 27th international meeting of the 
Pacific Basin Economic Council (PBEC). 

He said the U.S. wants to “see China emerge strong, 
prosperous and stable” and is secking a “balanced way 
for our two countries to develop a sound, cooperative 
relationship”. 


“We are working with China over our differences so we 
can move forward together. We want that effort to 
succeed,” he added. 


To a question whether he sees it reasonable for China to 
be requested to undertake the obligations sirnilar to that 
of the developed countries regarding China's reentry into 
the GATT, Gardner said the U.S. thinks that “there can 
be a transition time” and the U.S. is willing to segotiate 
about the matter. 


XINHUA Notes CRS Report on Wheat Exports, 
MEN Status 


OW2505211594 Beijing XINHUA in English 2051 
GMT 25 May 94 


{“U.S. Farm Income To Decline if China Stops Buy- 
ing” —XINHUA headline] 


[Text] Washington, May 25 (XINHUA)}—U.S. farm 

income will decline by nearly 100 million U.S. dollars a 

year if China, the buyer of one-fifth of American wheat 

—" stops doing so, a congressioual report said 
y. 


By 1996, the Congressional Research Service (CRS) said, 
the U.S. would experience export losses of 250 million 
bushels of wheat if China retaliates the withdrawal of its 
most favored nation (MFN) trade status. 

The resulting weaker demand and larger U.S. stocks will 
depress U.S. wheat prices by about 15 cents per bushel 
by 1996, the report said. 


President Clinton will decide by June 3 whether to renew 
China’s MFN status, which makes China, like most 


FBIS-CHI-94-103 
27 May 1994 


other nations in the world, enjoy the lowest possible 
tariffs im its exports to the U-S.. 


“The psychological effect of losing 2 major foreign wheat 
market might tend to push U.S. prices down even further 
in the future,” the CRS said in its report to the House 
Committee on Agnculture. 


to be “a significant buyer” of 4. verican wheat assuming 
that China’s MFWN status wil) t . extended. 


China became a major U.S. farm export market in 1987, 


92 percent of China's farm imports from the U.S.. 


Since 1989, however, China’s rank im wheat imports has 
slipped, with the purchase of 376 million dollars of U.S. 
wheat last year. according to the U.S. Department of 
Agriculture. 


According ts the department, the Chinese typically 
ease to Sy CSP ee Se Ones See oe 
hard red spring or winter wheat, which they m 

for bread and other baked goods. 


“Other wheat exporting countries,” i 
“hold enough wheat stocks to fill China's lost supplies 
from the U_S., should China choose to reject U.S. wheat 
exports altogether” in the next three years. 


In addition to wheat, China purchases a broad array of 
U.S. farm products, including grains, soybeans, cotton, 
livestock, horticultural products and even wine and 
Wheat accounted for half of the vaine of U.S. exports to 


China in 1992. A major proportion of U.S. wheat exports 
to China have been subsidized by the U.S. Government. 


US., Vietnam Decide To Establish Liaison 
Offices 


OW72605 174594 Beijing XINHUA in English 1327 
GMT 26 May 94 


[Text] Hanoi, May 26 (XINHUA)—The United States 
and Vietnam have officially decided to establish liaison 
offices in each other's capitals, Hanoi and Washington, 
in an attempt to normalize the two countries’ relations. 


The Vietnamese Foreign Ministry said in a statement 
that the decision would create favorable conditions for 
the two governments to solve issues of common concern 
and was in the interests of the two peoples for achieving 
peace, stability and development in the region. 

The move follows a decision in February this year by 
U.S. President Bill Clinton to officially lift his country's 
30-year-old trade embargo against Vietnam. 

On May 20 and 21, U.S. Assistant Secretary of State 
Winston Lord and Vietnamese Deputy Foreign Minister 


INTERNATIONAL AFFAIRS 3 


Le Mai exchanged letters about the final decision on 
setting up the liaison offices. 
They agreed that the offices will perform their roles 
under the Vienna Convention regulations which speci- 
fied consular relations, signed by the U.S. and Viet- 
namese governments in 1963. 


US. Secretary Christopher Meets With Peres 


OW2505223894 Beijing XINHUA in English 2042 
GMT 25 May 94 


[Text] Washington, May 25 (XINHUA)—U.S. State 
Secretary Warren Christopher met with Israeli Foreign 
Minister Shim’on Peres at the State Department today. 


“They had an extensive review of the state of play and all 
four of the tracks of the Middle East peace process,” 
Department Spokesman Mike McCurry said at a regular 
news briefing. 


They reviewed the implementation of the Gaza-Jericho 
Agreement and discussed some of the multilateral nego- 
After’ meeting with Christopher about 50 minutes, Peres 
had « working lunch with Undersecretary Peter Tarnoff 
and sine other officials. 


Peres and Tarnoff discussed a range of global issues such 
as democratization efforts around the world, some 
aspects of the new U.S. criteria on participation in U.N. 
ene and non-proliferation, according to 


They also discussed “East Asia as a region and some 
efforts that we both have in common as we pursue 
interests in East Asia,” he said. 


Asked about recent statement by Palestine Liberation 
Organization Chairman Yasir ‘Arafat on “holy war,” 
McCurry said that “the important thing is that the 
parties need to talk to each other and not surprise each 
other.” 


He also said they need to keep the commitments that 
they have made to each other and to use the consultative 
mechanism that they have established to resolve any 
questions that arise 


Greece Expresses Displeasure Over U.S. 
Statement on Albania 


OW2505204594 Beijing XINHUA in English 1746 
GMT 25 May 94 


{Text} Athens, May 25 (XINHUA)—Greece today 
expressed its displeasure over statements made by U.S. 
State Department Spokesman Mike McCurry who said 


he had “no reliable evidence to indicate that the Alba- 
nian Government is oppressing the Greek minority.” 


4 INTERNATIONAL AFFAIRS 


Government Spokesman Evangelos Venizelos said that 
the statements by McCurry did not satisfy the Greek 
Government and were “inadequate”. 


Greece’s ambassador in Washington, Luukas Tsilas, 
made repeated representations to the State Department 
reiterating that the Greek positions and explanations 
were provided, Venizelos said. 

“The State Department,” Venizelos continued, “said 
that the explanations given were detailed but that they 
had not been accurately translated in the statement made 
by Mr. McCurry when he briefed reporters in Washing- 
ton.” 


Meanwhile, the spokesman rejected claims contained in 
an Albanian Foreign Ministry announcement that it had 
evidence “proving that six ethnic Greeks were in illegal 
possession of arms, had connections with a Greek secret 
service and were engaged in secessionist activities.” 
“No complete and substantiated arguments were ever 
presented during the meetings between the Greek and 
Albanian foreign ministers in Zurich or between the 
delegations of the two countries in Ioannina, northern 
Greece,” Venizelos said. 

Venizelos reiterated that Greece was not prepared to be 
the target of slanderous, unfounded accusations and had 
displayed its good intentions for an improvement in 
relations with Tirana. 

“But the Albanian Government must realize that any 
improvement depends on its respect for the human 
rights of the Greek minority,” Venizelos stressed. 


“If there is any evidence,” he continued, “it should have 
been presented during the diplomatic contacts between 
Athens and Tirana. From there on, Albania bears the 
burden of proving that it is a state ruled by law.” 


ee Oe ey 


OW 2605 173794 Beijing XINHUA in English 1436 
GMT 26 May 94 


[Text] Jakarta, May 26 (XiNHUA)—The 3rd Interna- 
tional Textile and Garment Machinery Exhibition 
(ITGME’94) was opened here today. 


Taking part in the show, which lasts to May 30, are more 
than 182 textile and garment machinery producers and 
suppliers from 20 countries and regions, such as Den- 
mark, France, Germany, Hong Kong, Indonesia, Italy, 
Japan, Korea, China, the United Kingdom and the 
United States. 


The exhibitors are showing their high-tech weaving, 


spinning, knitting, dyeing and printing, sewing, embroi- 
dery, pressing, finishing and other relevant machineries. 


This important exhibition will also provide the cus- 
tomers wiih the latest information regarding the latest 
innovation in textile and garment machineries. 


FBIS-CHI-94-103 
27 May 1994 


In his written speech, Indonesian Minister of Industry 
Tungky Ariwibowo said that this exhibition will be a 
useful means linking manufacturers and customers for 
exchanging of information on market and technology. 


in Indonesia for the last few years, becoming one of the 
pillars of the country’s economy besides oil! and gas. 

The export income from the industry jumped from 4,000 
million U.S. dollars in 1991 to 6,000 million U_S. dollars 
in 1992. With a slight decline, the export carning of 
ee 1993 maintained at 5,900 million 


The comparatively weak competitive power of Indone- 
sia’s textile products is reportedly the main reason for 
the drop. Therefore, the textile industry in the country is 
in urgent need of modernization of equipments, so as to 
raise productive efficiency and upgrading of products. 


According to data from the Ministry of Industry, the 
import volumes of textile and garment machinery in 
1990, 1991 and 1992 were 970 million, 1,372 million 
and 530 million U.S. dollars, respectively, while that for 
January to October in 1993 period was 450 million 
dollars. 


Xu Jinchang, head of the Chinese delegation, which is 
the biggest one in the exhibition, told XINHUA thai 
China-made textile and garment machineries in the 
medium level are suitable for the Indonesian markct. 


The Chinese businessmen would like to use this exhibi- 
tion as an opportunity to make extensive contacts with 
their Indonesian counterparts and exchange information 
and experiences with them to promote bilateral cooper- 
ation in the field of textile and garment machinery 


Yugoslavia Rules Out Joining NATO Peace 
Partnership 


OW2505204294 Beijing XINHUA in English 1608 
GMT 25 May 94 


[Text] Belgrade, May 25 (XINHUA)—The Yugoslav 
Federal Republic today ruled out the possibility of 
Joining the NATO proposed Partnership for Peace pro- 
gram. 


Speaking at a press conference here today, Radoje Kon- 
tic, the prime minister of the Federal Republic, said that 
his country maintains a foreign policy of independence, 
and will not seek any tie with NATO. 


He also said that the country will not join any other 
military alliance either. 


This is the first time the government of the Yugoslav 
Federal Republic rules out the possibility of joining the 
NATO Partnership for Peace program. 


FBIS-CHI-94-103 
"7 May 1994 


Kontic also said that his government supports all peace 
proposals that treat the three warring sides in Bosnia on 
an equal foot, and respect the interests of the people of 
di 

He also said that any peace proposal should include the 
lifting, or at least the reducing, of the current cconomic 
sanctions against his country. 


“To continue maintaining the sanctions is to encourage 
the Muslims to continue the war,” he said, adding that 
the sanctions are against huraanitarian principles and 
are damaging the image of the United Nations. 


The sanctions are not only bringing tremendous losses to 
the economy of Yugoslavia, but also to its neighboring 
countries, he said. 


United Stsites & Canada 


F Ministry ‘Welcomes’ U.S. Decision 
MPN Rights aa 


OW2705040894 Beijing XINHUA in English 0355 
GMT 27 May 94 


[Text] Beijing, May 27 (XINHUA)—Chinese Foreign 
Ministry said today that China welcomes U.S. President 
Bill Clinton's decision to renew China's most favored 
nation (MF?!) trading status for 1994-95 and to delink 
the future MFN renewal from human rights issues. 


In a statement just released here, the ministry said that 
Clinton's decision would create a favorable condition for 
further strengthening and expanding trade and economic 
cooperation between the two countries, helping improve 
and develop bilateral relations, and therefore is in the 
fundamental interest of the two countries and the two 


Saying that the Chinese Government and Chinese people 
welcome Clinton's decision, the Chinese Foreign Min- 
istry also urged an early lift of all the existing sanctions 
imposed on China by the United States. 


More on Statement 


OW2705055894 Beijing XINHUA in English 0540 
GMT 27 May 94 


[Text] Reijing, May 27 (XINHUA)—The Chinese For- 
cign Ministry released a statement here today on U.S. 
President Clinton's decision to extend China's most 
favored nation (MFN) trading status. The full text is as 


On May 20, President Bill Clinton of the United States 
announced his decision to extend China's MFN status 
for 1994-1995 and to delink future annual MFN review 
from human rights issue. This decision will create favor- 
sion of trade and economic cooperation between the two 
sides and the improvement and growth of the overall 
relations between the two countries. It therefore serves 


INTERNATIONAL AFFAIRS 5 


arrangement 
serves the interests of both sides. It constituies the basis 
for normal trade between them. We have consistently 
opposed linking MFN with non-trade issues or attaching 
conditions and requirements. What the U.S. side did in 


relations between the two countnes, to the strong dissat- 
ee OSS oe. Senos 


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tries. We are convinced that so long as both sides strictly 
abide by the guidelines and principles set forth in the 


three Sino-American joint communiques, 


OW2765 102694 Beijing XINHUA Domestic Service in 
Chinese 0843 GMT 27 May 94 


[Text} Beijing, May *7 (XINHUA)—1/S. President Bill 
Clinton’s dec*sion to extend China's most favored 
nation (MFN) trading status is conducive to the 


6 INTERNATIONAL AFFAIRS 


On may 26 President Clinton announced his decision to 
extend China’s MFN status for 1994-1995 and to delink 
future annual MFN reviews from the human mghts issue. 


“We welcome President Clinton's decision, which 

accords with the fundamental interests of the two coun- 

tries and peoples,” the spokesman said. 

He said that the MFN treatment that China and the 

United States grant to cach other is a reciprocal and 
beneficial arrangement It is the core of bilat- 


eral trade and serves 2s the foundation stone 
for bilateral trade relations. 

China has consistently ©. king MFN with non- 
trade issues or attach . co J . ums or requirements, 
said the spokesman. 

The Chinese Governm«. ° .ys attaches great impor- 


tance to Sino-U_S. trade relations, and it has made major 
efforts for the maintenance, improvement and growth of 
such relations, he said. 

The actions the U.S. side has taken in the past few years 
in connection with the MFN issue has done harm to 
bilateral trade and the overali relations between the two 
countries, and the peoples of the two countries. U.S. 
entrepreneurs and a great number of consumers espe- 
spokesman said. 


“We welcome the positive efforts that the U.S. side made 
to change this situation ™ said the spokesman. 

“But,” he said, “we have to point out with great regret 
jshi fen yi han 0577 0433 6695 2013] that, while 
announcing the renewal of China's MFN status, the U.S. 
side stated that the existing sanctions against China 
would be maintained.” 


The spokesman expressed the hope that the U.S. Gov- 


ests of the two countries and remove all sanc- 
tions against China, so that Sino-U_S. trade relations can 
enjoy smooth and healthy progress. 


He pointed out that the current situation offers a histor- 
ical opportunity for the enhancement of Sino-American 
relations, especially bilateral trade relations. 


“We believe that so long as both sides, on the basis of 
mutual respect equality, and mutual benefit, adopt pos- 
itive measures and eliminate the artificially imposed 
obstacles, the trade relations between China the U.S. will 
be further developed,” the spokesman said. 


XINHUA Reports Clinten’s Renewal of China's 
MEN Status 

OW 2605224994 Beijing XINHUA in English 2234 
GMT 26 May 94 


ext] Washington, May 26 (XINHUA)—U_S. President 
ili Clinton Thursdsy [26 May] announced his decision 


FBIS-CHI-94-103 
27 May 1994 


to renew China's most-favored-nation [MFN] trading 
Issues. 


Meanwhile, he decided to ban imporis of guns and 


He also announced that the United States would main- 
tain the existing sanctions imposed on China since 1989, 
including the denial of participation in the U.S. tvade 
and development assistance program, US. opposition to 
non-basic human needs Inans to China by the World 
Bank and suspension of weapons deliverics. 


Speaking at a White Howse press conference, Clinton 
instead will permit us to engage the Chinese with not 
and other contacts.” “We have to see our relations with 
the Pacific-Asian region,” he noted. 


Further on Clinton's Decision 


OW2705035294 Beijing XINHUA Domestic Service in 
Chinese 0300 GMT 27 May 94 


[Text] Washington, May 26 (XINHUA)—U 5S. President 
Clinton, at a news conference at the White House on the 
afternoon of 26 May, announced his decision Thursday 
[26 May] announced his decision to renew China's 
most-fevored-nation trading |MFN] status and delink 
the MFN renewal from human rights issues. 


Extending MFN “will permit us to engage the Chinese 
e¢ucational and other contacts.” 


“We have to see our relations with China within the 
broader context of our policies within the Asian-Pacific 


region,” he said. 


“Our relationship with China is important to all Amer- 
icans,” he stressed, adding that China “is a major factor 
in Asian and global security.” 


“China is also the world’s fastest-growing economy. 
Over eight billion dollars of United States exports to 
China last year supported over 150,000 American jobs,” 
Clinton noted. 


“We need to place our relationship into a larger and 
more productive framework,” he said. 


But at the same time, Clinton announced that the United 
States would maintain the existing sanctions imposed on 
China and ban imports of guns and amrvwnition from 
China, citing human nights reasons. 


He said his government will maintain dialogue with 
China over human rights issues. 


FBIS-CHI-94-103 
27 May 1994 


iain Arms Exporter Says U.S. Sanctions 
‘Discriminatory’ 


HK2705101194 Hong Kong AFP in English 0926 GMT 
27 May 94 


[Text] Beijing, May 27 (AFP)}—The main exporter of 
Chinese arms charged Friday [27 May] that US Presi- 
dent Bill Clinton’s decision to bar imports of Chinese 
firearms and ammunition was “discriminatory.” A 
spokesman for the North Industrial Co (NORINCO) 
said, “Our arms exports to the United States have always 
been made in cc.nformity with US law.” 


“The US side unilaterally decided to ban arms imports 
from China only. This measure is clearly discriminatory, 
and we would like to express our extreme displeasure,” 
he said. The spokesman denied information published in 
the United States that NORINCO was owned by the 
Chinese military. ““These reports are completely without 
foundation,” he said. 


Clinton announced Thursday the renewal for one year of 
most- favored-nation status for China, but at the same 
time slapped an embargo on about 200 million dollars in 
Chinese arms and ammunition imported annually into 
the United States. China is the United States’ primary 
foreign supplier of rifles and handguns. Over the last 
three years, companies such as NORINCO, Polytech- 
nology and Jinganco have sold about two million hand- 
guns to the US market, western experts said. 


According to foreign experts, NORINCO has mainly 
exported hunting rifles, pistols and ammunition for 
non-military use to the US market. The Chinese are, in 
addition, suspected by some US circles of copying 
famous brands of guns and selling them overseas at 
prices that undercut the originals, one arms expert said. 
The defense sector, to which NORINCO belongs, has 
been forced in recent years to devote most of its activi- 
ties to producing civilian items such as buses, mopeds 
and washing machines. About 70 percent of such com- 
panies’ production is now for civilian purposes. 


Daily Comments on Renewal of MFN Status 


HK2705110794 Hong Kong HSIN WAN PAO in 
Chinese 27 May 94 p 4 


{“New Talk” column: “United States Extends China’s 
Most- Favored-Nation Status for Another Year’’] 


[Text] After a protracted effort, U.S. President Biil 
Clinton has finally “turned around.” He announced 
yesterday afternoon (0400 Asian time) the U.S. decision 
to extend China’s Most Favored Nation (MFN) trading 
status for another year, going against the statement he 
made the same time last year that he might completely 
rescind China’s MFN trading status next year. 


In fact, Clinton almost made up his mind to “turn 
around” last fall. He made the first step toward this end 


INTERNATIONAL AFFAIRS 7 


by going to Seattle to preside over the Asian summit and 
by meeting with PRC Chairman Jiang Zemin for the first 
thme since assuming office. 


By that time, the United States had developed a new 
outlook on the international situation. After the dra- 
matic changes in eastern Europe, the relations between 
the United States and Western Europe were not as close 
as they had been immediately following World War II. 
This was most clearly seen in the fact that several U.S. 
proposals for settling conflicts in former Yugoslavia were 
rejected by western countries. After the disintegration of 
the former Soviet Union, the United States sought to 
improve its relations with Russia. However, Yeltsin's 
position in Russia has been shaky, and he was not even 
able to appoint his trusted follower Gaidar as prime 
minister. Therefore, the importance of Russia for U.S. 
politics is questionable in the future. 


Apart from political problems, there are economic prob- 
lems. It is clear that Asia will grow further economically. 
President Clinton, who did not attach importance to 
Asia in the first part of his presidency, changed his 
outlook in the second half of the year. He felt it necessary 
to increase U.S. influence in Asia by establishing friendly 
ties with Asian countries anew so that the U.S. economy 
could draw new life from developing countries in this 
region, while China registered the greatest economic 
growth among Asian countries. 


Over the last six months, the United States has adopted 
a carrot- and-stick policy toward China. While sending 
secretaries of the treasury, commerce, and agriculture 
departments to China to improve bilateral relations, 
Clinton sent Secretary of State Warren Christopher to 
China to apply pressure. Christopher tried to accomplish 
his task by bringing China to her knees. 


The United States has actually been following the beaten 
path. In order to return to Asia, it has applied heavy 
pressure on Asian countries over the last six months. It 
has applied pressure on Malaysia and Indonesia over the 
trade union problem and on Singapore over the caning 
punishment inflicted on an American youth. It has also 
threatened to impose trade sanctions upon Japan under 
the Special 301 provision in connection with Japan’s 
market barriers to U.S. goods and has threatened to use 
force against North Korea on the nuclear issue. How- 
ever, these countries all rejected the U.S. demands. 


China’s approach has been open and above-board. While 
expressing its willingness to improve relations with the 
United States and sending trade groups to the United 
States to place orders, China has opposed the high U.S. 
pressure. In the end, Clinton was forced to “turn 
around” on his own, correcting the mistake he made a 
year ago. To soothe different political factions at home, 
he played tricks in the wording of the decision and the 
measures concerned to cover up his embarrassment. 


He announced that he would extend China’s MFN 
trading status for another year, rather than extending the 


status indefinitely, as favored by the majority of Amer- 
ican people. While indicating that he will not link human 
rights with MFN trading status in the future, he insisted 
on imposing certain sanctions. But he will only impose 
sanctions on weapons valued at $200 million, while the 
Sino-U.S. trade volume will amount to $40 billion in the 
future. 


The problem concerning trade between China and the 
United States, about which the two sides have been 
haggling for a long time, has finally been solved because 
the United States has withdrawn from its original posi- 
tion, though not without “embarrassment.” 


EM, Sustness Conagy Cunsten to Sipe Census 
i 


OW2705065194 Beijing XINHUA in English 0615 
GMT 27 May 94 


[Text] Washington, May 26 (XINHUA)—The U:S.- 
China Business Council, the leading organization of U.S. 
firms engaged in business with China, today welcomed 
President Clinton’s decision to renew China’s most- 
favored-nation [MFN] trade status without conditions. 


In a statement on behalf of the organization, M.R. 
Greenberg, council chairman and chairman of American 
International Group, Inc., said the council applauds 
Clinton’s decision as one that maintains normal trade 
and economic relations between the two countries. It not 
only permits the orderly and vigorous development of 
U.S. trade and investment activity with China, but also 
encourages the continued positive development of the 
U.S.-China relationship on a wide range of issues, he 
added. 


He also said that “the council is extremely pleased that 
our two countries can now look forward to continued 
progress in the many areas where our interests and 
priorities coincide.” 

Throughout the debate over MFN, the U.S.-China Busi- 
ness Council strongly supported unconditional renewal. 
The council’s 250 member companies include many of 
the largest U.S. firms doing business with China. 


Commenting on Clinton’s decision announced here 
today, Willard Workman, vice president of the U.S. 
Chamber of Commerce, said that “we are pleased that 
the administration recognizes trade is but one of a 
number of issues the United States and China must 
resolve together through cooperation, not confronta- 
tion.” 


U.S. Congressmen Express Support for MFN 
Renewal 

OW2505 192094 Beijing XINHUA in English 1724 
GMT 25 May 94 


[Text] Washington, May 25 (XINHUA)—More than a 
hundred members of the House of Representatives have 
declared that if President Clinton chooses to extend 


INTERNATIONAL AFFAIRS 


FBIS-CHI-94-103 
27 May 1994 


China’s most-favored-nation trade status uncondition- 
ally they will support his decision. 


The assurance of support was made in a letter sent to 
Clinton Tuesday [24 May], which was signed by 118 
House democrats and republicans. In the letter, the 
congressmen emphasized the importance of Clinton’s 
forthcoming announcement regarding China’s MFN to 
the U.S.-China bilateral relations and American eco- 
nomic and security interests. They called for increased 
trade and economic links with China by unconditional 
extension of MFN. 


Representative Jim Kolbe, an author of the letter, said 
that “If the President imposes trade sanctions at this 
juncture, we will see a destructive ripple effect on the 
carefully nurtured U.S.-China relationship that has 
evolved over the past 20 years.” 


Liu Huaging Meets McNamara Delegation 
OW2605 130494 Beijing XINHUA in English 1255 
GMT 26 May 94 


[Text] Beijing, May 26 (XINHUA)—Liu Huaging, 
member of the Standing Committee of the Communist 
Party of China’s Politburo and vice-chairman of the 
Central Military Commission, met here today with a 
delegation from the National Committee on U.S.-China 
Relations. 


The delegation was headed by Robert McNamara, 
former U.S. secretary of defense and ex-president of the 
World Bank. 


The American visitors arrived here May 22 as guests of 
the China Institute for International Strategic Studies. 


Liu Huagqing Meets Former U.S. Defense 
Secretary 


OW2605 140294 Beijing XINHUA Domestic Service in 
Chinese 1249 GMT 26 May 94 


[Text] Beijing, 26 May (XINHUA)—At the Diaoyutai 
Guesthouse today, Liu Huaging, member of the CPC 
Central Committee Political Bureau Standing Com- 
mittee and deputy chairman of the Central Military 
Commission, had a cordial meeting with and feted 
Robert McNamara, former U.S. secretary of defense and 
ex-president of the World Bank, along with a National 
Committee on U.S.-China Relations delegation led by 
him. 


McNamara and his delegation arrived on 22 May in 
Beijing on a friendly visit at the invitation of the China 
Institute for International Strategic Studies. Xu Xin, 
director of the institute, was present at the meeting. 


FBIS-CHI-94-163 
27 May 1994 


President Clinton Names Aspin to Foreign 
Intelligence Board 

OW2705053994 Beijing XINHUA in English 0501 
GMT 27 May 94 


[Text] Washington. May 26 (KINHUA)—U.S. President 
Bill Clinton today named former Defense Sccretary Les 
Aspin chairman of the Foreign Intelligence Advisory 
Board, which advises the President on top secret mat- 
ters. 


Aspin, 56, succeeds Admiral William Crowe, who has 
become the U.S. Ambassador to Britain. 


Aspin became Clinton’s defense secretary in December 
1992 and retired earlier this year. He was succeeded by 
William Perry, the number two man at the Pentagon. 


Heroin Use Nears Crisis Level in U.S. 


OW2505204494 Beijing XINHUA in English 1610 
GMT 25 May 94 


[Text] Washington, May 25 (X‘NHUA)}—More AIDS 
cases among people at hospitals have been found with 
heroin-related emergencies and this as many fear is the 
start of a new heroin epidemics, according to a report 
released at a U.S. House hearing today. 


For people 35-year old and older with AIDS, heroin 
emergencies rose from 422 in 1990 to 2,128 in 1992, the 
report said. 


Overall, heroin-related hospital emergencies soared 44 
percent in the first six months of 1993 over the same 
1992 period. 


A recent official study also shows a 45 percent in PCP 
(pentachlorophenol) emergencies and a 61 percent rise in 
methamphetamine use in the United States. 


Experts estimate the number of heroin addicts across the 
United States at more than half a million and the 
number is still growing, today’s “USA TODAY” 
reported. 


A report issued by the White House Drug Policy Control 
Office earlier this month cited marked increases in 
heroin use in the southwest, west and parts of the south 
of the United States, as well as in major cities like 
Washington, Boston, Denver and Los Angeles. 


Part of the attraction is heroin’s purity, the paper said, 
adding that street doses can be more than five times as 
potent as they were a decade ago. 


Central Eurasia 


Li Peng Meets Russian Prime Minister 


OW 2605175994 Beijing XINHUA Domestic in Chinese 
1416 GMT 26 May 94 


[By reporter Wen Jihua (2429 4949 5478)} 


INTERNATIONAL AFFAIRS 9 


[Text] Beijing, May 26 (XINHUA)—Chinese Premier Li 
Peng met with visiting Russian Prime Minister V-S. 
Chernomyrdin and his wife at the Diaoyutai State 
Guesthouse here this afternoon. 

Chernomyrdin arrived here this morning by special 
plane for a four-day official visit at Li’s invitation. 


Li, extending a warm welcome, expressed the belief that 
Chernomyrdin’s visit will serve to propel the growth of 
friendly relations of cooperation between China and 
Russia. 


Chernoniyrdin, voicing appreciation for that, said that 
as a neighbor of China, “Russia will do its utmost to 
develop bilateral cooperation in all fields,” according to 
a Chinese spokesman. 


“In a cordial and friendly atmosphere,” the two leaders 
said they expected to have fruitful talks tomorrow, 


according to the source. 


Among those present on the occasion were Li Peng’s wife 
Zhu Lin, Vice-Premier Li Langing and Vice-Chairman 
Buhe of the Standing Committee of China’s National 
People’s Congress, chariman of All-China Federation of 
Industry and Commerce Jing Shuping, chairman of the 
Reception Committee and minister of Machine-Building 
Industry He Guangyuan, and Vice Minister of Foreign 
Affairs Dai Bingguo. 

Chernomyrdin’s entourage included Russian Deputy 
Prime Minister Aleksandr Shokhin, head of the secre- 
tariat of the Federation Government (Pechilin), and 
Russian Ambassador to China Igor Rogachev. 


After the meeting, Li hosted a state banquet in honor of 
the Russian guests. 


This afternoon, Li presided over a ceremony outside the 
Great Hall of the People to welcome Chernomyrdin. 


Before that, Chernomyrdin and his party visited the 
Forbidden City and the Great Wall. 


Premiers Hold Talks 


OW2705093694 Beijing XINHUA in English 0911 
GMT 27 May 94 


(Text] Beijing, may 27 (XINHUA)—Chinese Premier Li 
Peng and visiting Russian Prime Minister V. S. Cherno- 
myrdin held talks at the Diaoyutai State Guesthouse 
here this morning. 


In “a sincere and friendly atmosphere” the two sides 
exchanged views on bilateral ties and international 
issues of mutual concern. 


Chernomyrdin arrived here Thursday [26 May] morning 
for a four- day official visit. 


On bilateral ties, Li expressed his satisfaction with their 
healthy and smooth development. 


10 INTERNATIONAL AFFAIRS 


China attaches great importance to its ties with Russia, 
Li said, adding that it constitutes a major part of China’s 
foreign policy to develop long-term, stable and good- 
neighborly ties with Russia. 


This is also the common aspiration of the two peoples, Li 
said. 


“The Chinese Government and people are willing to 
consiantly enrich the friendly co-operation, together 
with Russian side, on the basis of the five principles of 
peaceful co-existence,” Li said. 


China and Russia are two nations vith global influence. 
The expansion of their ties is not only in the funda- 
mental interests of the two sides, but also conducive to 
the peace and development of the region and the world, 
Li stated. 


Li described the overall development of the bilateral 
economic and trade relations in recent years as “good”. 
The two-way trade volume hit 7.68 billion U.S. Dollars- 
worth last year, well above the record in the days of the 
old Soviet Union, he said. 


The geographical proximity and economic complemen- 
tarity provide the economic and trade co-operation of 
various forms with many advantages, a great potential 
and bright prospects, Li said. 


However, the present level of economic and trade co- 
operation is not high enough, Li conceded. The two sides 
should further upgrade their co-operative level and 
quality, explore new opportunities and encourage enter- 
prises with credit on both sides to reinforce their co- 
operation so as to best play their role as the mainstay of 
bilateral co-operation. 


In economic and trade relations, both sides should stick 
to the principle of equality and mutual benefit, Li said. 


So long as the two sides take positive attitudes and 
enhance macro-control, the problems emerging from the 
growing economic and trade ties can be gradually 
resolved, thus creating more favorable conditions for the 
economic and trade co-operation between the two coun- 
tries’ localities and enterprises, Li said. 


While noting the long and traditional contacts between 
the two peoples, Chernomyrdin said his visit is aimed at 
furthering friendly co-operation. 


The seven agreements to be signed here embody the 
healthy and stable growt’: of the bilateral links, he said. 


Touching on the agreement concerning the Sino-Russian 
borders, Chernomyrdin told his Chinese host that it is 
his hope that the border will remain forever as one of 
peace, friendship and co- operation, and bestow happi- 
ness on the two peoples. 


FBIS-CHI-94-103 
27 May 1994 


Referring to the border trade and co-operation as the 
major part of Sino-Russian economic and trade co- 
operation, Li said that they should continue to develop 
and be given active guidance. 


The improvement of transportation is crucial in the 
further development of the bilateral trade and economic 
co-operation, Li said. 

He cited the Euroasian rail links, saying they should be 
given high priority and be fully employed. 


In the meantime, the railways in the border areas of the 
two countries’ eastern parts should be dovetailed, Li 
said, suggesting that China and Russia reinforce their 
co-operation in this respect. 


Chernomyrdin expressed agreement with Li’s proposal. 
The Euroasian railways are important, he said. The 
Siberian Railway should also be perfected and made full 
use of, he added. 


Both leaders agreed that today’s talks were fruitful and 
they will serve to propel the good-neighborly and mutu- 
ally beneficial co- operation, especially the economic and 
trade ties, according to Chinese sources. 


The two prime ministers also exchanged views on inter- 
national issues. 


Both held that the enhancement of their co-operation in 
world affairs will play a significant role in Asia’s stability 
and security as well as in the overall improvement of 
international environment. 


On behalf of the Russian Government, Chernomyrdin 
invited Li to visit Russia. Li accepted it. 


Following the talks, the two prime ministers signed two 
governmental agreements concerning the management 
of borders and the avoidance of double taxation and 
prevention of fiscal evasion with respect to taxes on 
income. 


They also presided over the signing of five other docu- 
ments. They were: the memorandum of the Second 
Session of the Sino-Russian Joint Commission on Eco- 
nomic, Trade and Technical Co-Operation, the agree- 
ment between the two governments on the economic and 
technical co-operation of agricultural and industrial 
complexes, the agreement between the two governments 
on environmental protection cooperation, and the agree- 
ment between the two governments on the joint protec- 
tion, regulation and value-addition of fishery resources 
on the Heilongjiang and Wusuli Rivers. 


Chinese Vice-Premier Li Langing and Russian Deputy 
Prime Minister Aleksandr Shokhin were among those 
present on the occasion. 


Later, Li Langing hosted a banquet in honor of the 
Russian visitors. 


FBIS-CHI-94-103 


27 May 1994 INTERNATIONAL AFFAIRS i! 
General Yu Yongbo Meets Russian Military sit down and enter into talks to bring about peace and 
Delegation national reconciliation in Cambodia. 


HK2605055194 Beijing JIEFANGJUN BAO in Chinese 
14 May 94 pI 


[By Wei Wei (7279 0251): “Yu Yongbo Meets With 
Russian Military Delegation”] 

{Text} Beijing, 13 May (JIEFANGJUN BAO)—General 
Yu Yongbo, member of the Central Military Commis- 
sion and director of the People’s Liberation Army Gen- 
eral Political Department, met and hosted a baaquet in 
Beijing today to honor a delegation of Russian military 
cadres led by General Weycozik [wei suo ci ji 4850 4792 
5412 1015], minister of the General Department of 
Cadre Training and Deployment of the Russian Ministry 
of Defense. 


Director Yu welcomed the delegation’s visit, saying: 
Relations between China and Russia and between their 
armies are good. The delegation’s visit will not only 
enhance mutual understanding between the cadre 
departments of the Chinese and Russian armies but will 
also be beneficial to consolidating the friendship 
between the two countries and between their armies. 
Moreover, Director Yu briefed the guests on the great 
achievements obtained in China’s reform and opening 
up. 


During the meeting, the Russian ambassador to China, 
Rogachev, and military attaches were present. 


This morning, the delegation held talks with the relevant 
divisions of the General Political Department. Lieu- 
tenant General Zhou Ziyu, deputy director of the Gen- 
eral Political Department, Major General Tong Tian- 
biao, assistant to the director, and others participated in 
the talks. Hosts and guests conducted exchanges 
regarding the two armies’ work in cadre training and 
deployment. 


The delegation arrived in China on 12 May to visit at the 
invitation of the General Political Department. 


Northeast Asia 


eee Senate Aeee Se Syengyany a 


OW2605 105194 Beijing XINHUA in English 0810 
GMT 26 May 94 


[Text] Pyongyang, May 26 (XINHUA)—Cambodian 
King Norodom Sihanouk, Co-Prime Ministers Norodom 
Ranariddh and Hun Sen, Parliament Peaker Chea Sim 
and Democratic Kampuchea Party leader Khieu Sam- 
phan arrived here this morning for a round-table 
meeting. 


The Pyongyang meeting, scheduled for May 27-31, was 
proposed on May 17 by King Norodom Sihanouk “with- 
out a preliminary cease-fire.” He called for the Royal 
Government and the Democratic Kampuchea Party to 


Leaders of both sides accepted his invitation to attend 
the round-table talks on national peace and reconcilia- 
tion. 


They came by the same flight today and were met at the 
airport by Yi Chong-ok, vice-president of the Demo- 
cratic People’s Republic of Korea (DPRK), and Kim 
Yong-nam, the DPRK vice premier and foreign min- 
ister. 


DPRK Sets Up New Mission at Panmunjom 


OW2505 125394 Beijing XINHUA in English 1146 
GMT 25 May 94 


[Text] Seoul, May 25 (XINHUA)—The Democratic Peo- 
ple’s Revublic of Korea (DPRK) has notified “the 
United Nations Command (UNC)” that it has estab- 
lished “the Korean People’s Army Representative Mis- 
sion at Panmunjom” to replace its component of the 
Military Armistice Committee, a UNC spokesman said 
here Wednesday. 


The DPRK’s Army Lt. Colonel Yu Yong-Chol made the 
notification on Tuesday at Panmunjom in his capacity as 
chief liaison officer for the newly-organized mission 
when he contacted UNC Lt. Colonel R. Flury. 


Pyongyang, however, told the UNC that it will maintain 
its telephone lines at the joint duty officers’ room at 
Panmunjom. 


The spokesman said that the UNC plans to ask the 
DPRK to hold a senior secretaries’ meeting of the 
Military Armistice Committee soon to discuss the issue. 


The DPRK unilaterally withdrew its representatives 
from the Military Armistice Committee on April 27, 
demanding the Korean armistice agreement signed at the 
end of 1950-1953 Korean war be replaced by a peace 
accord. 


Wang Hanbin Meets NODONG SINMUN 
Delegation 


OW2605 175194 Beijing Central People’s Radio 
Network in Mandarin 1030 GMT 25 May 94 


[From the “National Hookup” program] 


[Text] Vice Chairman Wang Hanbin met with a delega- 
tion from the DPRK's NODONG SINMUN, led by its 
deputy chief editor (Jin Ze Xun), in the Great Hall of the 
People this afternoon. 


12 INTERNATIONAL AFFAIRS 


Officials Open Sino-Japanese Industrial Park in 
Dalian 


HK2605114694 Hong Kong WEN WEI PO in Chinese 
19 May 94 p B2 


(“Special article” by WEN WEI PO special correspon- 
dent Chiang Wei-ping (1203 4850 1627): “China-Japan 
Joint Venture Invests $65 Million in the Construction of 
an Industrial Park in Dalian”) 


[Text] Dalian, 18 May (WEN WEI PO)—Today, a grand 
ceremony was he'd for the completion of the infrastruc- 
ture construction in Dalian Industrial Park, a Sino- 
Japanese joint venture. Li Tieying, state councillor and 
member of the Political Bureau; and Kentaro Kiniwa, 
deputy director-general of the Japanese Ministry of 
International Trade and Industry, cut ribbons and 
praised the project as a typical example of the successful 
cooperation between the Chinese and Japanese Govern- 
ments, as well as between the two countries’ entrepre- 
neurial circles. 


First Project To Develop Whole Stretch of Land 


The Dalian Industrial Park is situated in the Dalian 
Economic and Technological Development Zone. It is 
the first project in which Japanese enterprises are devel- 
oping a whole stretch of land in China; in fact, it is the 
first project in which a whole stretch of land is being 
developed in Dalian and even in China. The Chinese 
side makes up the management committee overseeing 
the Dalian Development Zone, and the Japanese side 
forms the committee overseeing the projects in the 
Dalian Industrial Park (this committee is made up of 22 
Japanese enterprises, including C. Itoh, Mitsubishi, 
Marubeni Corporation, the Industrial Bank of Japan, 
and the Bank of Tokyo). Both sides have established the 
joint-venture Dalian Industrial Park Management Com- 
pany, which makes a total investment of $65 million, of 
which the Chinese side contributes 20 percent and the 
Japanese side 80 percent. The Chinese side’s investment 
is in the form of the roads leading to the park, while the 
Japanese side has contributed hard currency. The oper- 
ation period is 50 years, and the joint-venture company 
will buy 2.169 square km of land from the Dalian 
Development Zone Management Committee for its use; 
this land will primarily be transferred to the Japanese 
side. 


China and Japan Carefully Study Feasibility 


The concept of the project was first proposed by the 
Japan-China Association for the Development of the 
Northeast during its visit to Dalian in February 1988 
with the idea of creating an overseas industrial park for 
Japan's medium-size and small enterprises who seek to 
invest. In 1989, Japan’s C. Itoh Commercial Company, 
the Bank of Tokyo. and the Marubeni Corporation 
expressed their intent of cooperation to the Dalian 
Development Zone; in December of the same year, as a 
result of the coordination by the Japanese Ministry of 


FBIS-CHI-94-103 
27 May 1994 


International Trad: and Industry, the five establish- 
ments of C. Itoh, Marubeni, Mitsubishi, the Industrial 
Bank of Japan, and the Bank of Tokyo formed a close 
union to establish the Committee Overseeing Projects in 
the Dalian Industrial Park and to join forces to promote 
the undertaking. Thereafter, the project was upgraded to 
an international investment project with active support 
from the Japanese Government. The committee 
inspected the investment environment in the Dalian 
Development Zone and carricd out research on related 
matters, leading to a feasibility report on the joint 
development of the Dalian Industrial Park. Hence, the 
committee joined hands with 22 influential large com- 
panies, enterprises, and financial institutions in Japan to 
found Dalian Industrial Park Company Limited, and 
former Prime Minister Takeshita attended the founding 
ceremony. In early 1992, the draft of the agreement on 
developing a whole stretch of land in Dalian Industrial 
Park was signed in Tokyo. In 1992, at the State Council’s 
101st executive meeting, which was presided over by 
Premier Li Peng, the feasibility report on the Dalian 
Industrial Park project was discussed and passed. On 5 
October the same year, the official agreement was signed 
in Beijing, and Vice Premier Tian Jiyun attended the 
signing ceremony. 


Substantive Progress in Canvassing Businesses and 
Funds 


Since 19 October 1992, projects involving 1.4 million 
cubic meters of earth and stone have been completed, 6.5 
km of roads have been built, some pipes and cables have 
been laid, four power switching stations have been 
erected, two heat-suppling boiler rooms and one heat 
exchange station have been constructed, and all are of 
high quality. The work in canvassing businesses and 
funds has also made substantive progress. More than 300 
enterprises specializing in machinery, electric appli- 
ances, chemical industry, and clothing have come to 
inspect the area and negotiate contracts, and a large 
number of well-known enterprises have come to inspect 
the projects in the industrial park, including Yamatake 
Honeywell Company Limited, Fuji Electric Company 
Limited, Toto Limited, and Konica, which are listed 
among the “world’s 500 largest industrial enterprises” by 
“FORTUNE” magazine. Technologically advanced 
companies such as the (Namuko) Company and Takara 
Shuzo Company Limited, which are the pioneers in 
integrated circuit and genetic engineering, have also 
come on inspection visits. Reports have indicated that 
27 enterprises have now received approval to enter the 
park, and their investments amount to $200 million. 
Seven of the enterprises have begun work, and it is 
estimated that the land allocated for enterprises this year 
will reach 60 percent of the total area. Finally, the park is 
expected to attract a total of 100 enterprises and over 
$600 million in investment. 


FBIS-CHI-94-103 
27 May 1994 


Ss8ee on Sepere Aetiets Teens Gees Wants 
ar 


HK2705044894 Beijing RENMIN RIBAO in Chinese 
14 May 94 p 6 


(“International Forum” by Dong Ming (0392 2494): 
“Sensible Reflection” 


[Text] It seemed to some outsiders that the distortion of 
history by Nagano, former justice minister of Japan, was 
just a short episode. On 3 May, Shigeto Nagano, who had 
just taken office in the new cabinet, openly asserted that 
the Nanjing Massacre was a “fabrication,” and Japan's 
aggression against the Asian countries was aimed at 
“liberating the colonies.” After such remarks aroused 
strong protests in the neighboring Asian countries and 
also cvoked condemnations inside Japan, Nagano was 
forced to renounce what he had caid, offer an “apology,” 
and resign from office on 7 May. 


Although the Nagano incident came to an end, the 
discussion caused by this incident are continuing in 
Japan. Not only will the responsibility for this event be 
further affixed by the Diet, but the general public in 
Japan is also reflecting on the incident. Public opinion 
around the Nagano incident encapsulates Japan’s atti- 
tude toward the historical issues: 


First, although the war was over for more than half a 
century ago, people deeply influenced by militarism still 
exist in a certain number. Such people have an abnormal 
mentality. They are discontented with the current situa- 
tion and still indulge in the memory of the “brilliance of 
the empire” in history. Although they may openly 
express repentance, when getting tipsy they tend to 
express their true feelings. Nagano was a typical case. 


Second, over a long period of time, Japan regarded its 
historical responsibility as “taboo.” It did not dare nor 
want to touch this issue. A history professor said that 
Japan was just trying to evade its responsibility for the 
war. Only when it was facing external pressure and 
international condemnations would it do something per- 
functory to free itself from the trouble. Some people 
questioned when Japan would move out of the cycle of 
“cabinet members distorting history—Asian countries 
protesting—the Japanese Government saying sorry and 
the cabinet members resigning.” Because Japan cannot 
face history squarely, events hurting the feelings of other 
Asian peoples happened from time to time. This found 
expression in the fact that some war criminais could even 
become key government officials in the 1960's as well as 
the textbook incident in the early 1980's and the incident 
of the memorial ceremony attended by leading govern- 
ment officials in 1985 at Tokyo’s Yasukuni Shrine. 


Third, some people of insight pointed out: Japan is 
trying to seek an “honorable positicn” in the world, and 
the key lies in whether it will win the trust of other Asian 
countries that were previcesty victims of its aggression. 
The necessary precondiii:vm “y winning such trust is 
Japan’s correct approach to its history. It is now the time 


INTERNATIONAL AFFAIRS 13 


that Japan should “totally repudiate” its past, not only in 
word but also in action. So far, Japan's reflection on the 
war remains “self-centered.” It only stresses that Japan 
itself was the victim of the war, and seldom faces 
squarely the fact that Japan was first of all the party that 
did harm to other Asian nations. Yamasaki, author of 
the film “Home Watching,” said that in order to under- 
stand the feelings of other Asian nations, Japan should 
show other nations’ films about the Japanese invasion so 
that the Japanese people may be educated properly. 


On many occasions, Prime Minister Hata recently 
expressed the need to make profound self-criticism of 
Japan’s past. He said that Japan should be actually aware 
of the unbearable pain and misery caused by its aggres- 
sion and coionial rule, should correctly approach its past, 
and should use a correct outlook on history to educate 
the younger generations in order to prevent the repeti- 
tion of the history. This shows the foresight and insight 
of the politicians of the new generation. 


Southeast Asia & Pacific 


Power Equipment Supply Contract Signed With 
Malaysia 

OW 2005 170694 Beijing XINHUA in English 1638 
GMT 20 May 94 


[Text] Kuala Lumpur, May 20 (XINHUA)—A Chinese 
company and the National Power Company of Malaysia 
( Tenaga) signed a contract here today for the supply of 
power equipment worth 93.7 million ringgit (about 35.4 
million U.S. dollars). 


Under the contract, Xian Electric Group will design, 
manufacture, complete erection and commission of 
power equipment of two substations here in Kuala 
Lumpur, which will increase power supply by six by 240 
MVA [expansion unknown] when the works are com- 
pleted by 1996. 


During the signing ceremony witnessed by Tenaga exec- 
utive chairman Ani Arope and China's Vice Minister of 
Machinery Industry Sun Chang Ji, Ani said the project is 
important to the increase of power supply in Kuala 
Lumpur area. 


The Xian Company has already supplied power equip- 
ment and machinery to Indonesia, The Philippines, 
Thailand, Pakistan and Nepal. 


Government To Send Trade Group to Australian 
Symposiums 


OW2105111694 Beijing XINHUA in English 0907 
GMT 21 May 94 


[Text] Beijing, May 21 (XINHUA)—China is to hold 

large-scale investment and trade symposiums early next 

a respectively in Melbourne and Sydney in Aus- 
ia. 


14 INTERNATIONAL AFFAIRS 


During the symposiums, a group of over 100 government 
officials and entrepreneurs from China's 20 provinces 
and municipalities will hold talks with their Australian 
partners on 519 investment projects they brought with. 


An official from the Ministry of Foreign Trade and 
Economic Cooperation (MOFTEC) said that the 
projects, totalling seven billion U.S. dollars, include 
those of agriculture, communications, electronics, 
building materials, petrochemistry and service sectors. 


The talks will be the largest of its kind China has yet held 
in Australia. 


The delegation, to be headed by MOFTEC’s Vice- 
Minister Gu Yongjiang, will also give Australian entre- 
preneurs and businessmen a systematic introduction on 
China’s current economic reform, investment climate, 
Chinese laws and rules concerning the protection of 
foreign investment, the MOFTEC official said. 


Since 1972 when diplomatic ties were established 
between China and Australia, bilateral trade has seen a 
constant development, the official said. 


Statistics show that trade volume between China and 
Australia in 1993 hit a record high of three billion U.S. 
dollars, among which China’s import was 1.94 billion 
U.S. dollars and its export was 1.06 billion U.S. dollars. 


According to the official, for the sake of its construction, 
China needs to import various raw materials and 
advanced technologies in production, processing, storage 
and transportation of grain, in telecommunications, 
mining, metallurgy as well as in port construction. 


China spent 485 million U.S. dollars last year importing 
17.06 million tons o} iron ore, 440 million U.S. dollars 
importing 130,000 tons of wool and over 100 million 
U.S. dollars importing 1.09 million tons of grain. 


During the same time, China exported 335 million U.S. 
dollars of clothing and 135 million U.S. dollars of textile 
products to Australia, and its export volume of 
machinery and electronic products to Australia reached 
243 million U.S. dollars last year. 


Meanwhile, economic cooperation between the two 
countries has also seen marked progress, the official said. 


By the end of last year, China had set up 134 trade 
institutions and enterprises in Australia with a contrac- 
tual investment totalling |.2 billion U.S. dollars, among 
which some one-fourth was to be funded by the Chinese 
side. And Australia has become one of the countries 
China has so far invested most. 


On the other hand, among all the countries and regions 
in the world, Australia is the 9th largest investor in 
China. By the end of 1993, australia had set up 1,310 
projects in China with a contractual investment of 1.245 
billion U.S. dollars, among which 338 million U.S. 
dollars had been actually put into use. 


FBIS-CHI-94-103 
27 May 1994 


Therefore, the MOFTEC official said, Chinese and Aus- 


tralian economies are much mutually complementary 
and the prospect for their cooperation is broad. 


The upcoming symposiums and talks will provide more 
opportunities for further cooperation in industrial and 
commercial circles between the two countries, the offi- 
cial said. 


Australian Insurance Firm Opens Office in 
Beijing 


OW2105074294 Beijing XINHUA in English 0719 
GMT 21 May 94 


[Text] Beijing, May 2! (XINHUA)—The Australia- 
based financial services group, Colonial Mutual, 
announced here its intention to establish life insurance 
operations in China. 

The announcement accompanied the official launch of a 
representative office in Beijing Friday [20 May]. 

Group chairman, David Adam, who visited Beijing to 
mark the opening, said Colonial Mutual was committed 
to establishing long- term relationships in China. “It's 
very much part of our aim to contribute to economic 


development, via our specialist role in the global life 
insurance industry,” he said. 


“We now look forward to using our financial services 
expertise to assist with the development of life insurance 


industry in China and in ultimately providing the Chi- 
nese people with beneficial services.” 


“For our organization China represents a major oppor- 
tunity in one of the world’s biggest potential markets. We 
are committed to building a long-term presence,” Adam 
added. 


The new representative office in Beijing will work ini- 
tially to identify market needs before seeking to establish 
sales activities. 


Government Seeks To Develop Friendly Ties With 


HK2605 145494 Beijing XINHUA Domestic Service in 
Chinese 0203 GMT 25 May 94 


[By reporter Gao Jian (7559 1017) from the United 
Nations] 


[Text] New York, 24 May (XINHUA)—In his speech at 
the UN Trusteeship Council, Zhang Yan, Chinese dele- 
gate to the United Nations, said that China is willing to 
develop relations of friendship and cooperation with 
Palau after its independence on the basis of the five 
principles of peaceful coexistence—mutual respect for 
territorial integrity and sovereignty, mutual non- 


sion, non-interference in one another's internal affairs, 


equality and mutual benefit, and peaceful coexistence. 


The UN Trusteeship Council held its 61st conference 
today. Representatives of the Palau Government and the 


FBIS-CH)-94-103 
27 May 1994 


U.S. Administration, the authority in charge of the trust 
territory, announced at the conference that the two 
countries will carry out the Treaty of Free Contacts 
beginning on | October 1994. 


According to this treaty, Palau will terminate its political 
Status as a trust territory of the United States and will 
become an independent sovereign state. 


Palau President Kunivo Nakamular, who is attending 
the corference, said in his speech that he hopes Palau 
will take the floor at the next UN General Assembly as a 
sovereign and independent state and a member of the 
United Nations. Zhang Yan said the Chinese Govern- 
ment and people always support the people of the trust 
territories in their demands and aspirations for national! 
self-determination and independence. 

He said: The Chinese people have always cherished 
friendly affection toward the people of Palau. We hope 
that Palau will become an independent member of the 
international community at an early date, and that it will 
embark on the road of developing its national economy 
and building its country. 


Palau, with a population of approximately 16,000 
people, is situated in western Pacific and is one of the 
gateways leading to Southeast Asia in the Pacific Ocean. 
It is currently the only territory under UN trusteeship. 


Palau was occupied by the United States during World 
War II. The United Nations placed it under U.S. trust in 
1947. A referendum on Palau’s future political status 
and prospects held in January 1993 showed that 68.26 
percent of the voters were in favor of the Treaty of Free 
Contacts signed between Palau and the United States in 
August 1982, and thus adopted the decision to terminate 
its trustee status by a simple majority. 


Near East & South Asia 


Deputy Foreign Minister Leaves for Middle East 


OW 2605090694 Beijing XINHUA in English 0843 
GMT 26 May 94 


[Text] Beijing, May 26 (XINHUA)—Tian Zengpei, Chi- 
nese deputy foreign minister, left here today by plane for 
a working visit to Kuwait, Saudi Arabia and Syria at the 
invitation of the foreign ministries of the three countries. 


Beijing-based envoys of the three countries saw him off 
at the airport. 


Report Stresses Trade Between India, China 


OW2505 124294 Beijing XINHUA in English 1110 
GMT 25 May 94 


[Text] New Delhi, May 25 (XINHUA)—India and 
China, the two largest Asian rations, have a great poten- 
tial of trade worth over 25 billion U.S. dollars annually, 
PRESS TRUST OF INDIA was quoting a recent report 
of the Centre for Global Trade Development today. 


INTERNATIONAL AFFAIRS 15 


The centre, an independent research and information 
U.S. based group monitoring all 220 countries and 
regions of the world, said both China and India have 
entered into an irreversible process of absolute economic 
progress bringing a greater quality of life for its citizens. 


It said both India and China have great potential in 
exploring the economic exchanges together. 


So far bilateral trade between the two countries is still 
low, diplomats in the Chinese Embassy said. Their 
bilateral trade in 1993 amounted to 679 million U.S. 
dollars in India’s favour. 


The report said India’s present export growing speed of 
an average 20 percent will enable it to reach over 90 
billion dollars in next six years and the imports are 


poised to grow at an equal speed. 


It said the Chinese exports, at the present growth rate, 
will cross 200 biltion U.S. dollar mark in six years, 
adding that when combined with Hong Kong's, the 
exports will be well over 425 billion dollars. 


The bilateral trade will not only create huge and unprec- 
edented opportunities for bcth countries’ businesses and 
investors, but also bring about a greater economic and 
geo-political stability in the region, the report said. 


Visiting Iranian Envoy on Media Cooperation 
LD2405 155694 Tehran IRNA in English 1456 GMT 24 
May 94 


[Text] Beijing, May 24, IRNA—Iranian Ambassador to 
Beijing Mohammad Hoseyn Mir-Fakhr and editor- 
in-chief of the country’s English daily CHINA DAILY, 
Zhu Uing Huang [name as received], Tuesday exchanged 
a on ways of expanding cooperation in the news 
ield 


Mir-Fakhr welcomed cooperation between the Iranian 
and Chinese press and said this would foil the propa- 
ganda launched by the western media, which portrays 
news based on its own interests. 


Zhu said in reply that cooperation between Iranian and 
Chinese news agencies could obviate the influence 
wielded by western news. He added that western news 
sources never reflect positive points regarding the 
achievements of Iran and China but always try to beam 
negative news about them. 


Zhu proposed that besides the “new world order” there 
should be a “new news order” in the world. He 
announced his paper's readiness to cooperate with the 
Iranian press in this regard. 


The two sides also stressed an exchange of visits between 
editors-in-chief of the two countries’ dailies. 


16 INTERNATIONAL AFFAIRS 


Border Trade With Nepal Flourishes 


OW2505 110594 Beijing XINHUA in English 0723 
GMT 25 May 94 


[Text] Lhasa, May 25 (XINHUA)—The Zham wading 


million yuan (about 35 million U.S. dollars) last year. 


Located at the foot of the southern Himalayas, Zham has 
served as a political, economic and cultural passageway 
highway opened in 1965. However, the annuai border 
trade volume was worth only seven million 
gee seaman 


Now the port boasts 3,000 residents, of whom are 
businessmen from the Tibet Autonomous Region 


eo Islamabad To Start 10 
; rumgi, 0 


OW 2605 123094 Beijing XINHUA in English 1146 
GMT 26 May 94 


[Text] Islamabad, May 26 (XINHUA)—A Xinjiang air- 
liner, Tu-154, arrived here today from Urumagi, capital 
of Xinjiang Uigur Autonomous Region of China, for 
technical trial. 

Thanks to the close cooperation of the civil aviation 
authorities of China and Pakistan, the trial flight is very 
successful, sasd Yang Tingping, the Xinjiang Airline’s 
vice-president. 

With the success of the proving flight, the Xinjiang 
Airline will formally open its weekly flight from Urumqi 
to Islamabed from July i0, he said. 

It is the highest air route in the world which covers the 
Karakoram Mountains and the K-2, the second highest 
mountain in the world. 

The Pakistan Iniernational Airline (PIA) is also planning 
to open air service from Islamabad to Urumgai later this 
year, Ali Khan, PIA general manage in Islamabad, said. 


The Xinjiang Airline and PIA signed an agreement on 
May 4. 


FBIS-CHI-$4-103 
27 May 1994 


—eee 


Meets With Syrian Party Head 


OW2405212094 Beijing XINHUA in English 2054 
GMT 24 May 94 


[Text] Damascus, May 24 (XINHUA)—A Chinese Com- 
munist Party delegation headed by Wei Jianxing held 
talks here today with a delegation of the Syrian Arab 
Ba'th Socialist Party headed by "Abdallah al-Ahmar on 
cooperation and links between the two parties. 


Wei Jianxing is member of the Political Bureau of the 
CPC Central Committee and ‘Abdallah al-Ahmar is 
assistant secretary-general of the Synan ruling party. 
ment of relations between the two parties in light of an 
agreement signed between the two sides in 1991 and 
highlighted the necessity of bolstering their relations. 
Wei briefed the host on the major achievements China 
has registered since it adopted the policy of reforms and 
opening tc the outside world in 1978. 

He also expounded the Chinese stance toward the 
Middle East issue, stressing a political solution to the 
issue based on U.N. Security Council Resolutions 242 
and 338 and the principle of land for peace. 


He underlined the necessity of restoring all the occupied 
territories including the Syrian Golan Heights, the neces- 
sity of restoring the legitimate rights of the Palestinian 
people and ensuring the security and territorial integrity 
of all the states in the region. 


He voiced China's unswerving support for the Pales- 
tinian people and the Arab people in their struggle for 
= independence and reclaiming the occupied 


On his part, "Abdallah al-Ahmar stressed Syria's princi- 
ples for the establishment of a new society and its stand 
toward the Middle East peace process. 


He pointed out that the cause behind the stumbling 
Middle East peace process is Israel's stubbornness and 
refusal to comply with the U.N. Security Council Reso- 
lutions, especially 242, 338 and 425, which stipulate its 
withdrawal from all the Arab lands. 


Holds Talks With Syrian Prime Minister 


OW2505200294 Beijing XINHUA in English 1939 
GMT 25 May 94 


[Text] Damascus, May 25 (XINHUA)—Prime Minister 
Mahmud al-Zu"bi met today with the visiting Chinese 
Communist Party delegation led by Wei Jianxing, 
member of the Party's Political Bureau. 

During the meeting, Wei conveyed greetings of Premier 
Li Peng to al-Zu'bi and briefed the Syrian prime minister 
on the current situation in China. 


FBIS-CHI-94-103 
27 May 1994 


On the Middle East question, Wei reiterated China's 
unequivecal support for the i ion of U.N. 
Security Counci! Resolutions 242, 338 and 425 which, 
he stressed, form the basis for the peace process. 


He also voiced China's support for the legitimate 
struggle waged by ‘1« rab nation to restore the entire 
occupied Arab terriiories, including Syria’s Golan 
Heights, and the hope of establishing jasi and compre- 
hensive peace in the region. 


Confers With Syrian President 


OW 2605 193894 Beijing XINHUA in English 1922 
GMT 26 May 94 


{Text] Damascus, May 26 (XINHUA)}—President Hafiz 
ai-Asad said today that Syria is keenly interested in 
developing its friendly relations with China and that it is 
proud of these relations. 

Al-Asad said this when meeting with a delegation of the 
Communist Party of China led by Wei Jianxing, member 
of the Political Bureau of the CPC Central Committee 
and of its Secretariat. 

President al-Asad, who doubles as secretary-general of 
the Arab Ba‘th Socialist Party, welcomed the visit of the 
CPC delegation, saying that such exchanges of visit by 
the Ba'th Party and the CPC are very important espe- 
cially at a time when the world witnesses major changes. 


He voiced hope that the current friendship between 
On his part, Wei conveyed the greetings of Chinese 
President and CPC Secretary-General Jiang Zeming and 
Premier Li Peng. 

Wei said China appreciates the existing relations and 
friendship with Syria and praised the achievements 
gained by the Syrian people in maintaining their inde- 
pendence and sovereignty, developing the national 
economy and raising the people's iiving standards. 
The CPC delegation leader praised the effective role 
which Syria plays in the international and Arab affairs, 
especially in the peace process. 


Sub-Saharan Africa 


ee 


OW2505 105994 Beijing XINHUA in English 0857 
GMT 25 May 94 


[Text] Beijing, May 25 (XINHUA)—The Chinese Gov- 
ernment and people will, as always, firmly support 
African countries and peoples in their efforts to promote 
stability and development and strengthen its close coop- 
eration with African countries in all fields, said Chinese 
Vice-Premier and Foreign Minister Qian Qichen here 
today. 


INTERNATIONAL AFFAIRS 17 


He praised the OAU for its increasingly important role 
in maintaining peace and stability and in settling con- 
flicts and disputes at regional or national level by good 
offices of the OAU. 


“We sincerely wish African countries and peoples con- 
tinued progress,” said Qian. 


Jean-Jacques Maurice, head of the African diplomatic 
corps and Madagascar ambassador to China, also spoke 
at the reception. 


On the occasion, a speech made by President 
Muhammad Mubarak of Egypt, who is executive 
chairman of the OAU, was read out by Egyptian Ambas- 
sador to China Samir Burhan. 


Officials from the International Liaison Department of 
the Communist Party of China Central Committee and 
the Chinese People's Association for Friendship With 
Foreign Countries, as well as diplomatic envoys from 
various foreign embassies in Being, attended the recep- 
tion. 


18 INTERNATIONAL AFFAIRS 


President Ti T 
Congolese ours Shenzhen, Prepares To 


OW 2405 173194 Beijing XINHUA in English 1540 
GMT 24 May 94 


[Text] Shenzhen, May 24 (XINHUA)—President Pascal 
Lissouba of Congo ts scheduled to leave here tonight for 
home, after a six- day state visit to China. 


Mayor Li Youwei of Shenzhen yesterdzy met and hosted 
a banquet in honor of Lissouba and his party, who 
arrived yesterday afternoon for a tour of this special 
economic zone. 

Lissouba, noting that Congo is rich in natural resources, 
invited Shenzhen's enterprises to ‘nvest in his country. 


a ee ee woe 


OW2705024894 Beijing XINHUA Domestic Service in 
Chinese 1258 GMT 26 May 94 


i ae May 26 (XINHUA)—Chinese President 


In the telegram, Jiang Zemin said that the recent smooth 
national election and the subsequent formation of a new 
government headed by Muluzi have opened up a new 
chapter in Malawi's history. 

Jiang expressed the belief that under the leadership of 
President Muluzi, Malawi would succeed in its cause of 
national construction and economic development. 


He said that although China and Malawi have not been 
in contact with each other for many years, the Chinese 
people have always cherished a friendly affection for the 
people of Malawi. 


China is willing to establish and develop friendly and 
cooperative relations with Malawi on the basis of the five 
principles of peaceful coexistence and believes that the 
friendship between the people of the two countrics will 
enjoy development with efforts from both sides, the 
telegram said. 


CPC's Li Tieying Meets Seychelles Guests 
OW 2005082094 Beijing XINHUA in English 0758 
GMT 20 May 94 


[Text] Beijing, May 20 (XINHUA)—Li Tieying, 
member of the Political Bureau of the Central Com- 
mittee of the Communist Party of China (CPC), met 
here today with a delegation from the Seychelles People's 
Progressive Front (SPPF). 


Li briefed the delegation, which is headed by its Deputy 
General Secretary James Alix Michel, on the develop- 
ment of China's socialist market economy and the 
restructuring of its economic system. 


FBIS-CHI-94-103 
27 May 1994 


He noted that China has decided to build a socialist 
market economy with Chinese characteristics on the 
basis of its experience gained in past years of reform and 
Se SSS Se ee ee 


Li, also Chinese minister in charge of the State Commis- 
sion for Restructuring the Economy, said that the 
restructuring of China's econcmic system is focused on 
establishment of the modern eaterprises system. 

Li asked Michel to convey greetings from Chinese Pres- 
ident Jiang 

Zemin and Premier Li Peng to President France Albert 
Rene of Seychelles. 

Michel, also minister of defense and finance of Sey- 
chelles, said great changes have taken place in China 
since his last trip to the country ten years ago. 

and China, especially in the field of economy and trade, 
will be further enhanced. 


The SPPF delegation arrived here on may 16 as guests of 
the International Liaison Department of the CPC Cen- 
tral Committee. 


ee ae See rae Se 


OW1 105154594 Beijing XINHUA in English 1411 
GMT 11 May 94 


[Text] Beijing, May 11 (XINHUA)—A reception cele- 
brating the birth of new South Africa was held here this 
evening by the Chinese People's Association for Friend- 
ship With Foreign Countries (CPAFFC). 

Chinese Vice-Premier and Foreign Minister Qian 
Qichen attended the reception. 


Delivering a speech at the reception, CPAFFC President 
Qi Huaiyuan said that the birth of new South Africa will 
usher in a new era of national unity, social stability and 


economic development and prosperity. 


He stressed that Chinese people value very much their 
friendship with South African counterparts. 


In recent years, Qi said, the exchange of visits between 
the people of the two countries from all walks of life has 
been i “The exchanges between the two sides 
in the fields of economy, trade and culture have grown 
steadily and mutual understanding and friendship 
between the two peoples have kept increasing,” he 


He expressed the belief that with the birth of new South 
China and South Africa, established on the basis of the 
five principles of peaceful co-existence, will achieve 
further development. 


FBIS-CHI-94-103 
27 May 1994 


L. B. Labuschagne, direcior of the South African Center 
for Chinese Studies, also spoke at the reception. 


Beijing Presents Sports Facilities to Zambia 


OW2505 110394 Beijing XINHUA in Enghon 0829 
GMT 25 May 94 


[Text] Lusaka, May 24 (XINHUA)}—Chinese Ambas- 
sador to Zambia Yang Zerigye, on behaif of the Chinese 


i 
i 
i 
i 


killed in an air crash in April 28, 1993. The players were 
on their way to Senegal to take part in a World Cup 
match. 


Shandong, Hangzhou Participate in Cyprus Fair 
OW2505 263694 Beijing XINHUA in English 1949 
GMT 25 May °4 


[Text] Nicosia, May 25 (XINHUA)—The 19th Cyprus 


INTERNATIONAL AFFAIRS 19 


Defense Minister Chi Haotian Meets Finnish 
Army Chief 
HK2505080794 Beijing JIEFANGJUN BAO in Chinese 
28 Apr 94 p 1 


[By Pan Xiong (3382 3574) and special reporter Hu 
Xunjun (5170 6064 6511}: “Chi Haotian Meets Finnish 
National Defense Army Commander™] 


Lieutenant General Tao Baijun, deputy commander of 
the M Region, and Major General Fu 


il 
Jiaping, chief of the Foreign Affairs Bureau under the 
Ministry of Defense, were present during the meeting. 


Guangdong Secretary Ends Visit To Germany, 


HK2605 114494 Guangzhou Guangdong People's Radio 
Network in Mandarin 0400 GMT 24 May 94 


projects open to foreign investment. The two sides also 
held conscientious discussions on ways and means of 
expanding bilateral cooperation and exchanges. 

In order to acquire a better understanding of the German 
economic, cultural, and environmental protection situa- 
tions, Xie Fei and his entourage inspected Frankfort 
Airport, which is currently undergoing extension, trav- 
clled on a high-speed railroad in a high-speed special 
train made by Germany's Siemens Company, and vis- 
ited a farm in Bavaria, where they also called on the farm 
owner. 


During their two-day stay in Denmark, the Guangdong 
provincial economic investigation delegation led by Xie 
Fei held separate talks with Denmark's ministers of 


OW 2605093194 Beijing XINHUA in English 0901 
GMT 26 May 94 


[Text] Beijing, May 26 (XINHUA)—A five-member 
from the Chinese Supreme People's Court led 
by its Vice-President Ma Yuan left here today for Rome. 


_ Lisbon, May 24 (XINHUA)}—President of the 
Assembly 


Barbosa De Melo said ap nf 
that the rapid of China was of great signi 
icance not only to itself but also to the whole 


Macao is now enjoying a period of smooth transition 
thanks to the Sino-Portuguese joint declaration on 
a one oe ee ee ee, ae 


The cooperation between China and Portugal on Macao 
should be viewed as an example in solving 


FEBIS-CHI-94-103 
27 May 1994 


Political & Social 


Daily Pruvides Text of Dissidents’ Petition Letter 
HK2705034794 Hong Kong HSIN PAO in Chinese 
27 May 94 p9 


[Report: “In a Letter to NPC Standing Committee, 
Seven Student Movement Leaders Call for Rehabilita- 
tion of 4 June Incident”’} 


[Text] Seven former Beijing student movement leaders 
wrote a letter to the Standing Committee of the National 
People’s Congress [NPC] yesterday, calling for rehabili- 
tation of the 4 June 1989 incident. The letter’s full text is 
as follows: 


“The Standing Committee of the NPC of the People’s 
Republic of China: 


Five years have elapsed since the democracy movement 
took place in 1989. As the citizens of the Republic who 
took an active part in the movement in the capacity of 
young students, we have never forgotten it, because we 
firmly believe that the movement has played an incalcu- 
lable role in propelling history forward. On the occasion 
of the fifth anniversary of the democracy movement of 
1989, by exercising the political rights of citizens 
according to law, we openly express the following three 
strong appeals to the NPC Standing Committee, the 
supreme power organ of the state: 


1. Reappraising the democracy movement of 1989. It 
was a patriotic democratic movement of the whole 
people with young students as the mainstay. During the 
movement, we always adhered to the principle of “peace, 
reason, and nonviolence.” We deem it unjust for the 
government to determine the nature of the movement as 
“a disturbance and counterrevolutionary insurrection,” 
and it must be reappraised as soon as possible. 


2. Releasing all those who have been locked up until now 
because of the 4 June incident. 


3. Giving special care and allowance to members of the 
bereaved families in the 4 June incident and properly 
solving the livelihood problem of those who were put in 
prison for their part in the 4 June incident and have now 
returned to society. 


We maintain: The 4 June incident has formed an 
unavoidable “knot [jie 4815]” in the development of the 
Chinese nation’s history. At a time when the drive for 
reform and opening up to the outside world has entered 
a crucial stage, like the government, we hope for a stable 
social environment. Moreover, solving the problem of 4 
June incident and untying the “knot” in the people's 
hearts will help alleviate social contradictions, promote 
social stability, build the democratic legal system, and 
promote social progress. We sincerely hope that the 
government will boldly take this wise step by setting the 
interests of the nation and the future of the state above 
everything else. 


NATIONAL AFFAIRS 21 


It is our request that Standing Committee members will 
consider the above proposals.“ 


The seven former student movement leaders who signed 
the letter were Wang Dan, Ma Shaofang, Zhai Weimin, 
Shao Jiang, Li Hai, Zheng Xuguang, and Guo Haifeng. 


As the letter was sent on the evening of the fifth 
anniversary of the 4 June incident, this event is thus very 
sensitive. 


Report on Leaders’ Activities 21-26 May 
OW2705054894 


[Editorial Report] PRC media monitored by Okinawa 
Bureau carried the following reports on PRC Central 
leadership activities from 21 to 26 May 1994. The source 
is noted in parentheses after each report. 


Bo Yibo Writes Book Title—DENG XIAO PING WEN 
XUAN CI YU HUI SHI {glossary of Selected Works of 
Deng Xiaoping}* was published by the Liberation Army 
Publishing House recently. Comrade Bo Yibo wrote the 
title of the book. The glossary contains nearly 400 terms 
from the three volumes of the Selected Works of Deng 
Xiaoping. (Beijing XINHUA Domestic Service in Chi- 
nese 0158 GMT 21 May 94) 


Li Peng, Liu Huaqing Inscribe for Painting Show—An 
exhibition of works by Lai Shaogqi, a famous contempo- 
rary calligrapher and painter, was held in Guangdong on 
16 May. Premier Li Peng and Liu Huaging, vice 
chairman of the Central Military Commission, wrote 
inscriptions for the exhibition. (Beijing Central Televi- 
sion Program One Network in Mandarin 1100 GMT 24 
May 94) 


Luo Gan Attends Fire-Fighting Gala—The Sino- 
Japanese Fire-Fighting Association celebrated the 10th 
anniversary of its founding at a Beijing hotel on 24 May. 
State Councillor Luo Gan attended the function to offer 
his congratulations. (Beijing XINHUA Domestic Service 
in Chinese 1304 GMT 24 May 94) 


Jiang Zemin Inscribes University’s Name—The Univer- 
sity of Shanghai, a product of the merger of four local 
colleges and universities, will officially open on 27 May. 
Jiang Zemin, general secretary of the CPC Central Com- 
mittee and state president, inscribed the university's 
name. (Shanghai People’s Radio Network in Mandarin 
2300 GMT 24 May 94) 


Qian Qichen, Wu Xuegian Atiend Gala—The China 
International Travel Service celebrated the 40th anniver- 
sary of its founding at the Great Hall of the People on 24 
May. Qian Qichen, Chen Muhua, and Wu Xuegian 
attended the ceremony to offer their “warm” congratu- 
lations. (Beijing XINHUA Domestic Service in Chinese 
0715 GMT 25 May 94) 


Qiao Shi Visits Painting Show—Qiao Shi, member of 
the CPC Central Committee Political Bureau Standing 


22 NATIONAL AFFAIRS 


Committee and chairman of the National People’s Con- 
gress Standing Committee, on 25 May visited at the 
China Art Gallery in Beijing a painting show featuring 
works by a Jiangsu artist. (Beijing Central Television 
Program One Network in Mandarin 1100 GMT 25 May 
94) 


Jiang Zemin, Li Peng, Luo Gan Inscribe Book—As part 
of a collection of books on China's county and city 
reforms, the People’s Publishing House has published 
volumes on county and city reforms in Guizhou, Tibet, 
and Hainan. “Comrade Jiang Zemin inscribed the 
book’s title, Comrade Li Peng wrote an inscription for 
the series, and Comrade Luo Gan wrote the preface.” 
(Beijing Central Television Program One Network in 
Mandarin 1100 GMT 25 May 94) 


Deng Xiaoping, Chen Yun, Jiang Zemin Inscribe for 
Martyrs Cemetery—A ceremony is scheduled for 27 May 
to lay the cornerstone of the Shanghai Longhua Ceme- 
tery for Revolutionary Martyrs. “Comrades Deng 
Xiaoping and Chen Yun, respectively, inscribed the 
names of the Longhua Cemetery for Revolutionary Mar- 
tyrs and the Longhua Memorial Hall of Revolutionary 
Martyrs. Jiang Zemin, general secretary of the CPC 
Central Committee and state president, inscribed the 
epitaph of the monument to revolutionary martyrs, 
which reads: Serve the people witii a loyal heart and shed 
blood for a just cause.” (Shanghai People’s Radio Net- 
work in Mandarin 2300 GMT 25 May 94) 


Bo Yibo Writes Book Title—A collection of books on 
China’s rural economy was published in Beijing on 26 
May. The | 1-volume series chronicles “historic” changes 
in China’s rural areas by recounting reform and devel- 
opment in the countryside over the past 15 years. Bo 
Yibo inscribed the book’s title. (Beijing XINHUA 
Domestic Service in Chinese 0730 GMT 26 May 94) 


Chen Xitong Attends Young Pioneers Awards Cere- 
mony—A ceremory was held in Beijing on 26 May to 
award the “top 10” Young Pioneers in Beijing. Chen 
Xitong, member of the CPC Central Committee Political 
Bureau and secretary of the Beijing municipal party 
committee, attended the ceremony. (Beijing XINHUA 
Domestic Service in Chinese 0909 GMT 26 May 94) 


CPC Penetration Into Foreign Companies Viewed 


HK2705010094 Hong Kong CHENG MING in Chinese 
No 199, | May 94 pp 28-30 


[By Li Han (4539 2487): “CPC Steps up Infiltration Into 
Foreign-Funded Enterprises” ] 


[Text] At the end of last year, the Secretariat of the CPC 
Central Committee approved the transmission of a find- 
ings report submitted to it by the Organization Depart- 
ment of the CPC Central Committee, which was entitled 
“The Party’s Political Leadership Over Foreign-Funded 
[wai zi 1120 6327] Enterprises Must be Speedily 
Strengthened.’ The document urged localities and man- 
agement departments of foreign-funded enterprises at all 


FBIS-CHI-94-103 
27 May 1994 


levels to complete, within a specific time, the work of 
forming basic-level party organizations in foreign- 
funded enterprises, in i , wholly foreign-owned 
[wai shang du zi 1120 0794 3747 6327] enterprises, and 
ordered them to take measures to ensure party member- 
ship among the employees of wholly foreign-owned 
enterprises. 


It is Difficult to F in Wholl 
- orm Party Organizations y 


The findings report of the Organization Department, 
which was approved and transmitted by the Secretariat 
of the CPC Central Committee with a note, states: In 
recent years, the Central Committee has repeatedly 
transmitted to lower levels special documents complete 
with several specific requirements on how to strengthen 
the building of party organizations in foreign-invested 
[san zi 0005 6327] enterprises. Before and after the 
party’s 14th National Congress, several principal central 
leading comrades specially made clear instructions on 
the issue. In terms of their implementation, so long as 
the local party organizational departments and the party 
organizations in the foreign-funded enterprises manage- 
ment departments attach adequate importance to the 
issue, the formation of basic-level party organizations in 
Sino-foreign cooperative and joint-venture enterprises 
will progress quite smoothly, and in some of them, the 
basic-level organizations of the Chinese Youth League 
have been set up or revived. A considerable number of 
newly formed, revived, or strengthened basic-level party 
Organizations in Sino-foreign cooperative and joint- 
venture enterprises have begun conducting normal orga- 
nizational activities and organized their members to play 
a relatively good role in political leadership. However, in 
wholly foreign-owned enterprises (including enterprises 
wholly owned by Hong Kong and Taiwan businessmen, 
the same below), the building of basic-level party orga- 
nizations has been all along seriously hampered. 
According to the statistics provided by the foreign- 
funded enterprise management departments from 16 
large and mid-sized cities throughout the country, 
including the three municipalities directly under the 
central government, by October this year (1993), approx- 
imately 70 percent of the wholly foreign-owned enter- 
prises had not yet even had party groups set up. 


Foreign Businessmen Resist the Communist Party's 
Infiltration Into Employees Ranks 


After gathering the reports from various localities, the 
survey personnel of the Central Organization Depart- 
ment held that the reasons behind this state of affairs 
were as follows: 


1. In Sino-foreign cooperative or joint-venture enter- 
prises, in particular in such enterprises based on former 
state-owned enterprises as the Chinese side, among the 
legal-person representatives and managerial personnel of 
the Chinese side there is a certain proportion of Com- 
munist Party members. After enterprise merging, among 
the former staff members and workers of the cooperative 


FBIS-CHI-94-103 
27 May 1994 


enterprises there are still more or fewer party members. 
However, in the wholly owned enterprises of the foreign 
side, there is no Chinese representation at all. Of the 
employees newly recruited by the enterprises of this type 
after having themselves registered and starting opera- 
tion, the proportion of party members was very meager, 
and many did not even employ any party members at all. 
In the absence of party members, building basic-level 
party organizations is out of the question. 


2. When recruiting employees, the bosses of foreign- 
funded enterprises make every effort to prevent the 
Communist Party members from “penetrating” the 
ranks of employees by using various means and excuses, 
erecting barriers in depth, and setting up defenses at 
every step. In an extreme case, when a foreign busi- 
nessman found out that there were Communist Party 
members among his employees, he dismissed them by 
inventing all sorts of excuses. 


3. When recommending employees to management, for- 
eign-funded enterprise management departments in var- 
ious localities do not give full consideration in advance 
to the proportion of party members in the name lists of 
their candidates. Some of them even refuse to recom- 
mend party members to work in wholly foreign-owned 
enterprises in compliance with management’s unreason- 
able demands. 


The Central Organization Department has received 
reports from such cities as Shanghai, Guangzhou, 
Fuzhou, and Kunming which showed that the problems 
revealed were extremely serious and even had reached 
intolerable proportions. 


For example, in order to smoothly get a job in wholly 
foreign-owned enterprises, some Communist Party 
members went so far as to go through quit-the-party 
procedures with their work units beforehand; some local 
foreign-funded enterprise management departments 
asked party-member candidates recommended to work 
in foreign-funded enterprises to withhold their party 
membership from management; when recommending 
technicians to management, apart from putting in a good 
word for them about their professional competence and 
moral quality, some foreign-funded enterprise manage- 
ment departments went so far as to specially announce 
that these people “are not members of the CPC”’; and 
moreover, when recruiting employees for wholly foreign- 
owned enterprises, some foreign-funded enterprise man- 
agement departments openly professed that “party mem- 
bers are not to be employed” and “no consideration will 
be given to members of the CPC.” 


The Organizations of the CPC are U 
Organizations in Foreign-Funded En 


Party 


The findings report says: Because of the reasons men- 
tioned above, there is no way to build basic-level party 
Organizations in most wholly foreign-owned enterprises, 
and it is very difficult for basic-level party organizations 
which are already set up in such enterprises to carry out 
their normal activities. In the last two years, the Central 


NATIONAL AFFAIRS 23 


Organization Department has received letters from some 
party members working in wholly foreign-owned enter- 
prises, reporting that once their membership in the 
Communist Party was exposed, this meant endless 
trouble for them. Therefore, in their letters they asked if 
the party and government had any official documents 
and decrees or laws and regulations to ensure that 
Communist Party members are not discriminated 
against and their organizational activities are “legalized” 
in foreign-funded enterprises. 


In a letter to the Central Organization Department, a 
Communist Party member who worked in a foreign- 
funded enterprise said grumblingly: After working in 
foreign-funded enterprises, innumerable obstacles were 
put up and discrimination was applied against us just 
because we were Communist Party members. This made 
us naturally associate with the difficulties, hardships, 
and risks which underground party organizations 
encountered and endured in the party’s history of 
struggle while working in the ““enemy-occupied areas.” 


The “note” attached by the Secretariat of the CPC 
Central Committee to the findings report states: In the 
territory of the People’s Republic of China where the 
Communist Party is a ruling party, it is right and proper 
for the Communist Party to set up organizations at the 
basic level and its members to carry out their organiza- 
tional activities. However, in foreign-funded enterprises, 
unexpectedly there was the problem of whether the 
Communist Party is “legal” or not, and also unexpect- 
edly, Communist Party members working in such enter- 
prises poured out their demand to higher organizations 
and even the central organization of the party that they 
“hope to become just and honorable Communist Party 
members.” This cannot but attract the great attention of 
the Party Central Committee and local organizations at 
all levels. 


oaks izations Should Be Set Up in 
F unded Enterprises Within a Specific Time 


According to the findings report, the plan worked out by 
the Organization Department of the CPC Central Com- 
mittee to “complete the work of building basic-level 
party organizations in all foreign-funded enterprises 
within the specific time” was approved by the Secretariat 
of the CPC Central Committee. 


The plan stipulates, in principle, that party committees 
of various localities should strengthen political leader- 
ship and offer better work guidance to basic-level party 
organizations in wholly foreign-owned enterprises which 
hire more than 100 employees in our country and ensure 
that the party organizations can carry out their normal 
activities on schedule so that they will be genuinely able 
to play the role of a fighting force. As far as such 
enterprises where no basic-level party organization have 
been set up so far are concerned, the local foreign-funded 
enterprise departments in charge of the enterprises must 
set about to find out the real political conditions of 
enterprise employees, and if there are already three or 


24 NATIONAL AFFAIRS 


more party members in their ranks, urge them to set up 
a party group or branch as quickly as possible and carry 
out organizational activities on time. In an enterprise 
whose party membership is large enough to set up several 
party branches, a general party branch or a higher party 
working committee should be correspondingly set up to 
give unified leadership to the party branches. 


What remedial measures should be adopted in the days 
to come to deal with the case in which a foreign-funded 
enterprise’s employee ranks, there are just one or two or 
not any party members? The Central Committee is 


studying ways to solve the problem. 
Trade Unions in F Funded Enterprises Must be 
Put Under the of the Communist Party 


The instruction of the Secretariat of the CPC Central 
Committee also states: The emergence of this new 
thing—foreign-invested enterprises—has really brought 
enormous results to China’s economy. Nevertheless, as 
the number of such enterprises is increasingly 
expanding, the resulting problems cannot but attract the 
great attention of our party and government. 


At present the most pronounced problem with foreign- 
invested enterprises is the contradiction between man- 
agement and labor. In some enterprises, disregarding 
China’s laws, regulations, and decrees, some manage- 
ment personnel encroached upon the employees’ legiti- 
mate rights and interests as they liked and even ignored 
the safety of the latter’s lives. Therefore, the party, the 
government, and the Chinese employees in foreign- 
invested enterprises must have a full understanding of 
the importance and urgency of setting up trade union 
organizations in foreign-invested enterprises. 


However, like the trade union organizations in state- 
owned enterprises, the trade unions in foreign-invested 
enterprises must be put strictly under party leadership. 
In a foreign-invested enterprise, in particular a wholly 
foreign-owned enterprise, where there is no basic-level 
party organization and not even a single party member 
among the Chinese employees, how does the trade 
union, once established in such enterprise, accept party 
leadership? 


Before the transmission of a new relevant document by 
the Central Committee, the organization departments of 
party committees of various localities and the party 
working committees of foreign-funded enterprise man- 
agement departments should adopt some positive reme- 
dial measures with regard to the foreign-funded enter- 
prises where no party members are found in employee 
ranks. 


According to statistics, in all Sino-foreign cooperative 
and joint-venture enterprises, cases in which there are no 
party members in the Chinese management personnel 
and employees are very rare. It is relatively easier to 
solve this problem—sending party members to go in. 
However, this method of forcibly sending party mem- 
bers to go in should not be adopted in regard to the 


FBIS-CHI-94-103 
27 May 1994 


wholly foreign-owned enterprises where there are no 
party members among the Chinese management per- 
sonnel and employees hired. The relatively stable and 
safe method to take is for the party working committees 
of foreign-funded enterprise management departments 
to lead their subordinate personnel management institu- 
tions to look for a number of candidates who are 
professionally competent and trusted by management in 
their work and give them guidance so that they will 
actively make progress politically, and promptly admit 
them into the party as conditions are ripe. 


Foreign Businessmen Should Be Prevented From 
“Illegal” Hiring of Labor 

While approving the transmission of the findings report 
of the Central Organization Department, the Secretariat 
of the CPC Central Committee stated: Seeing the very 
grim situation recently in which in the course of their 
formation and operations, foreign-invested enterprises, 
in particular wholly foreign-owned enterprises, hired 
“illegal [hei 7815] employees” without permission by 
bypassing our relevant management institutions, thus 
causing a direct drop in the proportion of party members 
in foreign-funded enterprises’ employee ranks, the Cen- 
tral Secretariat has suggested that the government take 
some practical and effective measures to prevent the 
abovementioned phenomenon from continuing to 
spread. The specific methods to be taken are that rele- 
vant government departments formulate clear laws and 
regulations and give appropriate punishment to the 
foreign-funded enterprises which hired “illegal employ- 
ees” without the permission of our management institu- 
tions, personnel management fees collected from for- 
eign-funded enterprises by management departments 
should be reduced appropriately, and a stipulation 
should be made that while recommending qualified 
people to foreign-funded enterprises, management 
departments should ensure high quality to win trustwor- 
thiness. 


The Secretariat of the CPC Central Committee main- 
tained: So long as the phenomenon in which foreign- 
funded enterprise hire “illegal employees” from among 
unemployed persons in society is checked and the 
employees of wholly foreign-owned enterprises are all 
recruited through the recommendation of the Chinese 
side, it will be possible to ensure that Communist Party 
members will make up a certain portion of employees of 
these enterprises. 


Beijing Marks Anniversary of Mao Talks 


OW2605211394 Beijing XINHUA Domestic Service in 
Chinese 1035 GMT 25 May 94 


[By reporter Qu Zhihong (2575 1807 4767)] 


[Text] Beijing, 25 May (XINHUA)—On the 52nd anni- 
versary of the delivery of “Mao Zedong’s talks at the 
Yanan Forum on Literature and Art,” the Press and 
Publication Administration invited some Beijing 
writers, scholars, and personages from the publication 


FBIS-CHI-94-103 
27 May 1994 


sector to a discussion centered around the theme of 
“Inspiring People With Works of Excellence.” Partici- 
pants reviewed the spirit of Mao Zedong’s “talks,” and 
explored ways in which to carry out the task of “inspiring 
people with works of excellence,” which was proposed by 
Comrade Jiang Zemin. They also suggested ways and 
means for improving publication-related work. 


Yu Youxian, director of the Press and Publication 
Administration, said at the meeting: Although different 
eras have different requirements on the contents of 
works of excellence, the orientation of “serving the 
people and socialism” pointed out to literary and art 
workers by Comrade Mao Zedong more than half a 
century ago, and the principle of “letting a hundred 
flowers blossom and a hundred schools of thought con- 
tend” later proposed by him, still form the basic demand 
we set on the production of intellectual products today, 
as well as an important guarantee for promoting a 
flourishing publication industry. Yu Youxian said: Large 
numbers of good, widely-circulated books were pro- 
duced during each of the historical periods following the 
founding of New China. These works played a huge and 
irreplaceable role in elevating the masses’ realm of 
thought, in inspiring the masses to unite and struggle, in 
promoting social progress, and in promoting reform and 
opening up. Yu Youxian said: As a publication admin- 
istration organ, we consider it our main task to vigor- 
ously organize the publication, promotion, and distribu- 
tion of excellent books. 


Participants of the meeting stated their views on the 
current book markets, which face many problems. Dong 
Xiuyu [5516 4423 3768], editor-in-chief of the Joint 
Publishing Company, said: I often came across things 
which were in a mess but still put on display in public 
when I browsed in bookstores on the streets. As a 
member of the publication work force, I feel very uneasy 
about this. We should produce more and better works of 
excellence to corner markets and to satisfy the needs of 
the broad masses of people. These are the responsibility 
and duty we must face. 


Ren Jiyu, curator of the National Library, believed that 
we should pay special attention to young people in our 
creative undertakings and publications. Nowadays, 
young students know very little about the cultural and 
historical figures of their country, but the future of our 
country and people rests on them. We will face very 
serious consequences if we fail to solve this problem. 


Ren Jianxin Stresses Stepping Up Judicial 
Training 

OW 2605 185194 Beijing XINHUA Domestic Service in 
Chinese 0846 GMT 25 May 94 


[By reporter Jia Fenyong (6328 1164 0516)] 


[Text] Beijing, 25 May (XINHUA)—The National Work 
Conference on Educating and Training Court Cadres 
opened today in Beijing. Ren Jianxin, member of the 
CPC Central Committee Secretariat and president of the 


NATIONAL AFFAIRS 25 


Supreme People’s Court, spoke at the meeting, stressing 
the need to step up efforts to raise court cadres’ academic 
levels and to train a number of professional judges. 


Ren Jianxin said that since the Third Plenary Session of 
the 11th CPC Central Committee and with the develop- 
ment of reform, opening up, and of the building of the 
socialist legal system, courts have made great progress in 
strengthening the rank of court cadres and achieved 
marked results in educating and training court cadres. 
Work on multi-level education and training of court 
cadres was comprehensively carried out particularly 
since the establishment of the Sparetime Law University 
for the nation’s court cadres in 1985, of the China Senior 
Judge Training Center, and of provincial-level judge 
training ceniers in 1988. Now China has basically real- 
ized the goal of raising court cadres’ professional levels 
to the college law department level or higher, of having 
trained more than 600 holders of master’s degrees in law 
and over 1,000 senior judges and reserve forces for 
senior judges, and sent a number of court cadres to make 
further studies abroad. The decade-long efforts of edu- 
cating and training court cadres have greatly changed the 
phenomenon of low educational and professional levels 
among court cadres due to historical reasons and helped 
courts raise the quality of and efficiency in handling 
cases. 


Ren Jianxin said the gradual establishment of a socialist 
market economic system and of a legal system that is 
adapted to the socialist market economic system have 
markedly increased courts’ roles and responsibilities. 
This sets greater demands on court cadres. Therefore, it 
is necessary to establish a sound and regularized judge 
training system and to train judges in a planned and 
systematic manner. It is also necessary to establish a 
state institute for judges. Provinces, autonomous 
regions, and municipalities should step up establishing 
institutes for judges in their localities. Only through this 
way can we meet the requirements for and improve 
China’s modernized judge system. 


Vice President of the Supreme People’s Court Zhu 
Mingshan said at the meeting that courts will provide a 
complete pre-post training for their 42,000 new mem- 
bers in the next several years, will sponsor special 
seminars on new laws in a timely manner, and will 
regularly hold training classes for judges, so as to con- 
stantly raise court cadres’ quality and academic levels. 


The current national work conference on educating and 
training court cadres was the second meeting following 
the first meeting, which was held in 1990. Some 100 
leaders from all of the nation’s levels of courts and from 
relevant departments attended the meeting. 


Wang Zhaoguo Meets Hong Kong Textile Group 


OW2605204094 Beijing XINHUA Domestic Service in 
Chinese 1145 GMT 25 May 94 


[By reporter Fang Jin (2455 3866)] 


26 NATIONAL AFFAIRS 


[Text] Beijing, 25 May (XINHUA)}—Wang Zhaoguo, 
director of the United Front Work Department of the 
CPC Central Committee, met here with a delegation 
from the federation of textile-related guilds of Hong 
Kong this afternoon. 


The group, consisting of more than 20 members, 
including (Tang Jiqian), (Chen Ruiqiu) and (Fang Keng), 
arrived in Beijing on 24 May. Wang Zhaoguo welcomed 
the representatives of Hong Kong’s textile trades. He 
thanked people of Hong Kong’s textile-related trades for 
joining their mainland counterparts in working hard for 
economic development during China’s reform and 
opening up period. He also thanked people of Hong 
Kong's industrial and business circles for their work in 
the development of education ané public welfare on the 
mainland. 


The federation of textile-related trades of Hong Kong, 
set up in 1989 and composed of textile, dyeing, garment, 
and eight other guilds, represents Hong Kong’s textile 
and garment industries. It is one of the largest industrial 
organizations in Hong Kong. The federation’s board of 
directors is composed of well-known industrialists and 
businessmen of Hong Kong. Most of the members of the 
federation have invested in running factories on the 
mainland. The current visit by the delegation is for the 
purpose of enabling Hong Kong's textile and garment 
industries to increase contacts with the relevant central 
departments, know more about the situation of reform 
and opening up on the mainland, and expand relations 
and cooperation with the mainland. During their stay in 
Beijing, the members of the delegation will pay courtesy 
calls on the responsible persons of the State Council’s 
Hong Kong and Macao Affairs Office, the United Front 
Work Department, the Ministry of Foreign Trade and 
Economic Cooperation, the Ministry of Internal Trade, 
the China Textile Council, and other departments con- 
cerned. 


Wang Zhaoguo said during the meeting: Over the last 
decade since the start of reform and opening up, China 
has made tremendous economic progress, with a rapid 
increase in investment by people from Hong Kong, 
Macao, and Taiwan. With the economic and trade 
relations between Hong Kong and the mainland 
becoming closer and closer, Hong Kong and the main- 
land have been economically linked together, comple- 
menting each other and working for a common pros- 
perity. 


Wang Zhaoguo exchanged views with the representatives 
of Hong Kong’s textile and garment industries on ques- 
tions of concern, such as how to work more for Hong 
Kong’s economic prosperity and smooth transition. 


Column Urges Establishing Independent Judiciary 
11K2705083994 Beijing FAZHI RIBAO in Chinese 23 
May 94 p 1 


(“Legal System Forum” column by Yang Haikun (2799 
3189 0981): “Beat the Drums To Clear the Way for 
‘Judicial Independence’”’} 


FBIS-CHI-94-103 
27 May 1994 


[Text] As we march toward the 21st century, the objec- 
tive of China’s economic structural reform is to establish 
a socialist market economic structure, and in keeping 
with this goal, the objective of its political structural 
reform is to build a socialist democratic country with a 
legal system under the leadership of the CPC. 


The two crucial points concerning the construction of a 
socialist democratic country with a legal system are the 
necessity of placing the law in a supreme position and 
that of realizing judicial independence. Placing the law 
in a supreme position conforms to the principle of 
China’s Constitution. The Constitution of the PRC 
provides: “The state upholds the uniformity and dignity 
of the socialist legal system. All state organs, the armed 
forces, all political parties and public organizations, and 
all enterprises and undertakings must abide by the 
Constitution and the law. All acts in violation of the 
Constitution and the law must be looked into.” The 
Constitution and law were formulated by the people, 
which are the concentrated expression of the people’s 
interests and will. Therefore, regarding the Constitution 
and law as supreme means regarding the interests and 
will of the people as supreme. Without the supremacy of 
law, it is impossible to uphold the principle that all men 
are equal before the law. How can people talk about all 
men being equal before the law if certain individuals or 
organizations are able to place themselves above the law? 


Since the objective of establishing a socialist market 
economic siructure was defined, China’s economic leg- 
islation has been promulgated very rapidly, and its 
achievements have been obvious to all. At present, 
however, a very universal and urgent issue is how to 
practice the law in real life situations, that is, how to 
ensure that there is the law to abide by, that the law is 
strictly enforced, and that acts in violation of the law are 
looked into. The most vital point among these is the 
realization of judicial independence. It can be stated 
that, in the political systems of most countries in the 
contemporary world, it is a universally accepted prin- 
ciple that the judicial department and its affiliated 
organizations with courts at their center are placed in an 
independent status. In particular, in the power structure 
of those countries practicing a market economy, the 
independence of the judiciary is of paramount impor- 
tance to stabilizing public order and developing the 
national economy. During his recent visit to China, the 
Argentine justice minister told Chinese reporters: 
“There are many laws in Argentina, but our Constitution 
is most important of all. A major characteristic of the 
Argentine judicial department is its independence. 
Under no circumstances can a president of the republic 
exercise judicial powers, presumptuously make judg- 
ments on unsettled cases, or retry concluded cases. No 
one can dismiss a staff member of a judicial department 
if his actions are not censurable, but he will be removed 
from office if he violates the law and discipline or 
commits any ordinary crime.” In my view, this is the 
most simple and profound way of summarizing judicial 
independence. In emulating the foreign judicial system, 


FBIS-CHI-94-103 
27 May 1994 


both the advanced experience of the developed countries 
and the useful experience of the Third World are worth 
emulating. Can we not obtain any valuable enlighten- 
ment from the principle and spirit of judicial indepen- 
dence in Argentina? 


Doctor Ople [ou pu le 2962 2528 0519}, who has 
conducted in-depth research on the Japanese judicial 
system, has pointed out: “The intensified authority of 
judicial departments, the enhanced reputation of judges, 
and the entire independence in organization and func- 
tion based on the above are particularly important to a 
country in which administrative power holds a predom- 
inant position.” According to a survey, great changes 
have taken place in the scope and structure of the cases 
accepted by the people’s courts at all levels in China over 
the past few years. Civil and economic disputes as well as 
maritime and business cases directly accepted by the 
courts have increased noticeably. However, there are still 
many factors that have seriously affected fair trials and 
the strict execution of judgments and, in particular, the 
rate of accepting administration-related cases has 
declined by a large margin. An analysis shows that the 
principal causes are: People dare not bring charges 
before a court for fear that they will suffer retaliation; 
some administrative organs will not answer charges due 
to their poor legal awareness; some judicial personnel 
dare not try cases for fear that their relations with the 
administrative organs will be damaged, or they make 
judgments that pervert the law because they cannot resist 
the intervention from the administrative organs. Prac- 
tice has proven that, without judicial independence, it is 
very difficult to have laws—even the best ones— 
effectively enforced. A judicial officer from a grass-roots 
court sighed with feeling, saying: “The courts have 
become the executive bodies of the government organs. 
As judicial and administrative powers are pulled 
together to jointly deal with people who have no connec- 
tion with the administration, how can there be a proce- 
dural system for taking action against the administra- 
tion?” 


Therefore, in the course of rectifying and punishing 
corruption and establishing a socialist market economic 
system, nothing is more urgent and practical than the 
establishment of an independent judicial structure. It is 
neither strange nor terrible to discover that some corrupt 
phenomena exist in the economic and noneconomic 
spheres, but it is our inability to use powerful means to 
avoid the abuse of power and maintain a sound social 
and economic order that is really dreadful. Judicial 
fairness is generally regarded as the ultimate and most 
effective means of achieving social justice, so, if judicial 
independence and fairness are not guaranteed and if 
even the courts, procuratorates, and the lawyer system— 
which has just been established—are polluted and lack 
popular trust, then, it is merely empty talk when we 
claim to set up a fair and competitive socialist market 
economic order. 


NATIONAL AFFAIRS 27 


Hu Jintao Speaks at Child Development Program 
Meeting 


OW2605 174894 Beijing XINHUA in English 1620 
GMT 26 May 94 


(r ext] Beijing, May 26 (XINHUA)—A working meeting 

for implementing the Children Development Program in 
China for 1990s opened here today, a few days before the 
International Children's Day. 


Hu Jintao, a member of the Standing Committee of the 
Political Bureau of the Chinese Communist Party Cen- 
tral Committee, along with Vice-Premier Li Langing, 
Vice-Chairwoman Chen Muhua of the Standing Com- 
mittee of the National Peo; le’s Congress, and Director 
Peng Peiyun of the Wome and Children’s Working 
Committee under the State Council, met with partici- 
pants to the meeting. 

During the meeting 40 individuals, and 77 cities and 
counties were awarded for thei” outstanding work in 
promoting children’s well-being. 

Hu extended holiday greetings to vhildren of different 
nationalities as well as regards to te.chers, parents and 
people of various circles who work fir children’s inter- 
ests. 


Calling children the future and hope of the Chinese 
nation, Hu said their healthy growth conc*rns the fate of 
the country. 


Development of children’s cause and the raising of a new 
generation represents a basic project for the improve- 
ment of the nation and an important guarantee for 
realizing its goal of modernization. 


Drafting of the children development program in China 
for 1990s, which is intended to cater to the new situa- 
tion, is a big event and a major step taken by the 
government to promote children’s cause in China, he 
said. 

He urged party and government officials at various levels 
to fully understand the importance of children’s cause, 
which he said needs to be put on their working agenda. 


Also, he called on different departments and localities to 
adopt effective measures in the light of local conditions 
to implement the program. 

Li Ruihuan, Peng Peiyun Attend Meeting on 
‘Handicapped’ 


OW2705 105294 Beijing XINHUA Domestic Service in 
Chinese 1229 GMT 25 May 94 


[By reporter Liu Siyang (0491 1835 2254)] 


[Excerpts] Beijing, 25 May (XINHUA)—This reporter 
has learned from the 10th council meeting of the China 
Welfare Fund for the Handicapped [CWFH] held here: 
After 10 years’ exploration, Chinese handicapped peo- 
ple’s undertakings have been gradually developing in a 


28 NATIONAL AFFAIRS 


way that suits China’s national conditions, thereby 
laying a foundation for its long-term progress. 


Today’s council meeting summarized the CWFH work 
in the past decade, examined and approved its income 
and expenditure accounts, and amended its organiza- 
tional constitution. It also appointed Song Ping as hon- 
orary director in chief of the CWFH. 


Li Ruihuan, Sun Qimeng, Wu Jieping, Peng Peiyun, and 
Sun Fuling attended the meeting. [passage omitted] 


CWFH Director in Chief Deng Pufang said: Under the 
leadership of the party and government and with joint 
efforts from various localities and departments, Chinese 
handicapped people's undertakings have made achieve- 
ments in the past decade which fully reflect the deep 
feelings and kindness of the whole society. On behalf of 
China’s 50 million handicapped people, he extended his 
gratitude and regard to the people who have cared for 
and supported handicapped people’s undertakings. [pas- 
sage omitted on the CWFH donations to other mass 
organizations] 


State Councillor Peng Peiyun spoke at the meeting. She 
fully affirmed the handicapped people’s undertakings’ 
achievements made in the past decade, and praised the 
CWFH for its outstanding contributions. She urged 
party committees and governments at various levels and 
the whole society to give more support and assistance to 
the handicapped people’s undertakings. Song Ping indi- 
cated that he wanted to do his share to enhance the 
development of Chinese handicapped people's undertak- 


ings. 
we Holds Deng Xiaoping Photograph 


HK2705 101394 Hong Kong WEN WEI PO in Chinese 
27 May 94 p A4 


[Dispatch by trainee reporter Liu Chung (0491 3095): 


“Guangdong Holds Deng Xiaoping Photograph Exhibi- 
tion in Late May”]} 


[Text] Guangdong, 26 May—A massive “Deng Xiaop- 
ing” photograph exhibition, the first in China, will be 
held from late May to mid-June in Guangdong to mark 
the second anniversary of Deng Xiaoping’s southern 
inspection tour and the 15th anniversary of China's 
reform and opening up. Beginning in October, these rare 
photographs will be shown in Hong Kong, Macao, 
Southeast Asia, Japan, Canada, and other countries and 
regions. The exhibition will display pictures of the polit- 
ical and administrative activities of the chief architect of 
reform and opening up, and his key historical activities 
and daily life during the democratic revolutionary and 
socialist construction periods. Rare photographs of Deng 
Xiaoping touring Guangdong and the province's new 
face as a result of the following two years of rapid 
development will also be an important part of the 
exhibition; there will also be documentaries on Deng 
Xiaoping. 


There will be 520 such rare pictures, divided into seven 
sections entitled “Revolutionary career,” “Probing for a 
Socialist Road,” “The Chief Architect,” “In Guang- 
dong,” “For World Peace and Development,” “Lei- 
surely Pastimes,” and “How Do You Do, Xiaoping?” 
The exhibition in Guangzhou will end in mid-June and 
continue in Shenzhen, Zhuhai, Foshan, Shunde, and 
Nanhai. 


Statistics Exaggeration Problem Viewed 
HK27€5070894 Hong Kong Cheng Ming in Chinese No 
198, 1 Apr 94 pl 


[Article by Chen Feng (7115 7364): “Tendency Toward 
Boastfulness and Exaggeration Is Sweeping Across the 
Mainland ”] 

[Text] The “tendency of boastfulness and exaggeration” 
is an intrinsic characteristic of the Communist Party of 
China; however, boastfulness and exaggeration is the 
“formidable enemy” of statistics. The communists 
declare themselves to be the disciple of Lenin who once 
said that “statistics is a weapon to understand society.” 
Since this is so, it should be regarded as a field of science 
which permits no “dishonesty, boastfulness, or exagger- 
ation.”” Communist governments at different levels have 
all set up statistical departments—statistical bureaus— 
and they now also periodically make the statistical 
figures known to the public, but God knows whether 
these figures are reliable or not. For instance, the infla- 
tion rates published by the statistical departments of the 
communists are extremely unreliable. They said that last 
year’s inflation rate on the mainland was ten-odd per- 
cent, but the actual feeling of common people is that it is 
far more than that. As they went to the market for 
necessities every day, they know best how much prices 
have soared. 


Boastfulness and Exaggeration in the Statistical Work 


It is unfair to say that the communist authorities know 
nothing about this unreliability of their statistics. In his 
report entitled “Statistics Is a Key Link in the Economic 
Construction,” delivered to a national conference on 
statistical work held on February 23 this year, Zou 
Jiahua, vice premier of the State Council, acknowledged 
boastfulness and exaggeration in current statistical work, 
which could be rather serious in certain departments and 
localities. Some people talk big and indulge in empty 
talk, while others submit false information and publish 
imaginary figures; but they are pleased with themselves. 
It is a manifestation of corruption in the party's working 
style. Mr Zou said that the reasons for fraud and decep- 
tion in the statistical work were as follows: 


1) The relevant departments and their leaders in the 
Central Committee fail to have a solid grasp of and 
control over this work and neglect authenticity in statis- 
tical work and hence should be liable for this tendency. 


FBIS-CHI-94-103 
27 May 1994 


2) There exist problems in the guiding ideology of local 
competent authorities with respect to their statistical 
work. 


3) The influence of party working style and social ten- 
dencies. 
4) A strict system and rational and effective rules and 


regulations for statistical work have been erroneously 
abandoned and violated. 


5) Bureaucracy in certain administrative and supervi- 
sory authorities leads to failure in work, and 


6) No importance has been attached to the solution of 
the problems that cropped up in the process of construc- 
tion, opening up, and economic reform to bring back the 
working style of faithfulness and practicality. 


Also at this national conference of statistical work, Lu 
Peijian, commissioner of the Central Auditing Depart- 

ment, made known the following results of sampling and 
investigation concerning taxation and statistics con- 
ducted in the last quarter of last year and January this 
year by various provinces, localities and enterprises: 
—Considerable discrepancies exist between the growth 
of the national economy and the actual fulfiliment of 
various production targets as reported by governinents 
of the eight provinces and autonomous regions and the 
20 major prefectures and cities, with some discrepancies 
as high as 25 percent, —As many as 12 provinces and 
autonomous regional and 20 major prefectures and cities 
failed to suspend or reduce the scale and progress of 
capital construction as they reported to the central 
government, —Inconsistency exists between the actual 
quantity, scale, and capital availability of the joint 
ventures of 12 provinces or autonomous regions and 28 
prefectures or cities and the figures contained in the 
statements submitted by such joint ventures, —Inflation 
rate of the nine provinces or autonomous regions is five 
to eight percent higher than the real figures they sub- 
mitted to the State Council, and —Of the total produc- 
tion value of national economy in 1993 as submitted by 
the ten provincial and autonomous regional and the 25 
prefectural or municipal governments, 3 to 12 percent 
are imaginary numbers. 


te ee eae Tee, Sen Seneeeaaies 
Will Be Addicted To” 


Although the authorities of the CPC have perceived the 
boastfulness and exaggeration with respect to statistics 
submitted by their subordinates, suffered from the “ten- 
dency of boastfulness and exaggeration” and are eager to 
correct this tendency, the trouble still exists that up till 
now there are still no effective countermeasures. It is a 
result of “being hard to change the original nature” of 
the “tendency of boastfulness and exaggeration.” As the 
old saying goes in a Chinese history book, “What the 
superiors are fond of, the subordinates will be addicted 
to”. Where the superiors are happy with success, the 
subordinates will of course report oniy their achieve- 
ments rather than their setbacks, let alone the fact that 


NATIONAL AFFAIRS 29 


the superiors often appraise the work of .1eir subordi- 
nates on the basis of the so-called achievements reported 
by the latter. 


Statistics Show Crime Increases in First Quarter 


HK2605 152594 Beijing FAZHI RIBAO in Chinese 2 
May 94 p 3 


[By Ding Yajun (0002 0068 6511): “First-Quarter Crime 
Figures Up; Public Security Organs Step up Crack- 
down”’] 

[Text] Crime was on the rise across the nation in the first 
quarter of this year. Public security organs recorded 
approximately 300,000 criminal cases, up 9.2 percent 
from the same period last year, and close to 120,000 were 
serious, up 23.1 percent from the same period last year. 
The authorities smashed 28,031 criminal! gangs boasiing 
105,582 members, which were respectively 3 percent and 
7.8 percent higher than the numbers recorded in the 
same period last year, the gangs were responsible for 1.4 
billion yuan in property losses, up 42.9 percent over the 
same period last year. 


Robbery remained one of the most serious crimes. There 
were a total of 30,316 robberies in the first quarter, up 
9.8 percent over tie same period last year, 20,709, or 
46.4 percent, were serious, which was 19.5 percent 
higher than the figure in the same period last year. There 
were 1,694 robberies invoiving over 10,000 yuan each, 
and 290 over 100,000 yuan each, both an increase over 
last year. 

“Highway and train robberies” were on the rise again in 
some localities. Robberies on highways, railways, and 
other means of transportation in the first quarter totalled 
9,100, almost as many as in the same period last year. In 
areas in Sichuan, Fujian, Zhejiang, Jiangxi, 
and Jilin, highway and train robberies occurred earlier 
than they did last year. There were 52 train robberies in 
Zhejiang in February, up 73.3 percent from the same 
period last year. 


In economically advanced areas, there were more kid- 
nappings, with criminals abducting people for ransom. 


Murders and assaults greatly undermined the people's 
sense of security. The first quarter recorded 6,196 mur- 
ders, up 8.9 percent from the same period last year. Of 
these murders, those motivated by personal disagree- 
ments and disputes accounted for the greatest number. 


Assaults rose continually, with 12,285 such cases 
reported in the first quarter, up 5.4 percent from the 
same period last year. 


Thefts rose even faster. The first quarter saw 211,473 
theft cases, up 8.8 percent from the same period last 
year, of which 70,746 were serious, representing a 28.3 
percent rise. Car thefts and safe burglaries accounted for 
a large percentage of crime and respectively rose 54.1 
percent and 47.5 percent. Banks and other financial 


30 NATIONAL AFFAIRS 


institutions remained prime targets for criminals. 
Crimes against financial institutions in the first quarter 
numbered 470, 59 more than the figure recorded in the 


mately 7 million yuan. 


Serious fraud and forgeries rose considerably, and ciga- 
rette smuggling was on the rise again. There were 7,700 
fraud cases in the first quarter, up 16.3 percent from the 
same period last year, of which 4,493 were serious, 31.5 
percent higher than the same period last year. Fraud 

cases involving 100,000 yuan numbered 632, up 80 
Soeaien titan alanine deiaaiian thee site tamale 


organs across the country seized millions of yuan worth 
of forged money in the first quarter. 


On the whole, smuggling dropped, with 187 cases 
reported in the first quarter, down 17.6 percent from the 
same period last year. However, following the ban by the 
State Tobacco Bureau on imported cigarettes, there have 
been a spate of extraordinary foreign- igarette smuggling 
cases. Wuxi City in Jiangsu, smashed a 10-strong ciga- 
rette-smuggling ring and seized 954 cartons of contra- 
band cigarettes. 

Gun and drug trafficking remained serious in the south- 
west border regions. Public securities in the region 
solved a series of drug cases involving over 10 kg of 
drugs. 


Public security organs across the country are deepening 
and extending the struggle against various crimes, are 
strengthening investigative efforts, and are working hard 
to curb the rise of crime to ensure stability and public 
order in the spring and summer. 


State Post-Doctoral Enrollment To Expand 


HK2705044294 Beijing CHINA DAILY in English 27 
May 94 p 3 


[By Xiao He: “State to Expand Post-Doctoral Work”] 


[Text] China plans to expand the enrolment of post- 
doctoral scholars to train more young talent for the 
country’s long-term development. 


The move, covering the social and natural sciences, aims 
to raise the number in post-doctoral programmes from 
1,500 to 3,000 by the year 2000, said Cheng Lianzhang, 
the Vice-Minister of Personnel. 


In January, the government raised annual funding for 
post-doctoral scholars from 15,000 yuan ($1,700) to 
20,000 yuan ($2,300). 


FBIS-CHI-94-103 
27 May 1994 


Last year 728 post-doctoral scholars were recruited by 

almost 300 work stations in 165 higher-education and 
inet a 

Enrolment of such scholars has increased 27 percent 


annually since 1988, according to the Ministry of Per- 
sonnel. 


The increase shows the importance the State pays to the 
work of post-doctoral scholars, Cheng sa.d. 


The fund covers the salary and preliminary research 
expenaitures of scholars, who usually undertake two to 
three research projects, ‘nciuding key State undertakings, 
during their two-year training. 

While enterprises and public organizations are donating 
more money to post-doctoral projects, government funds 
have increased by 30 per cent annwally. 


Since the post-doctoral system was introduced in 1985, 
China has poured 115.56 million yuan ($13.34 million) 
to support research. 


And more than 1,300 post-doctoral scholars have come 
out of the two-year training programmes at the stations. 


Most of them have been employed as senior researchers 
and 32 became tutors for doctorate students, said Zhang 
Xiaowen. Vice Minister of the State Education Commis- 
sion. 


Center To Study Socialism With Chinese 
Characteristics 


OW 2605173194 Beijing XINHUA in English 1444 
GMT 26 May 94 


[Text] Beijing, May 26 (XINHUA)—The Party School of 
the Chinese Communist Party Central Committee today 
announced the establishment of a research center for 
studying the theory of building socialism with Chinese 
characteristics. 


Addressing the ceremony to launch the center, Party 
School President Hu Jintao, a standing committee 
member of the Political Bureau of the CPC Central 
Committee, said Deng Xiaoping’s theory for building 
socialism with Chinese characteristics is the guiding 
principle for China's reform, opening-up and modern- 
ization drive. 

The CPC party school, as a special institution for 
training party officials and theorists, is duty-bound to 
study and propagate Deng Xiaoping's theory, Hu said, 
urging the school to bring its advantages into full play 
and build itself into “a base for research” in this regard. 


Also, he called on researchers to study new issues, come 
with fresh and correct views, by adhering to the principle 
of seeking truth from facts and emancipating the mind, 
SO as to ensure a democratic and lively academic atmo- 


sphere. 


FBIS-CHI-94-103 
27 May 1994 


Gong Yuzhi, deputy president of the party school was 
appointed head of the research center. 


Circular oa Controlling Natural Caffeine 
Production 


HK2705053094 Hong Kong ZHONGGUO TONGXUN 
SHE in Chinese 0830 GMT 13 May 94 


interfered with social order and harmed the heaith of the 
people. Some have constituted crimes. 


The circular calls on all localities to ban the illegal and 
criminal acts of producing and dealing in natural caf- 
feine without approval. It says that those violating the 
law will be held accountable for their criminal acts by 
judicial organs in accordance with the law, and that the 
act of illegally producing, selling, importing, or exporting 
natural caffeine will be punished as the crime of smug- 
gling, selling, transporting, or manufacturing drugs in 
accordance with the provisions of the NPC Standing 
Committee's “Decision on Narcotics Control.” 


Beijing International Airport Project Approved 
HK2705045394 Hong Kong TA KUNG PAO in Chinese 
13 May 94 p 2 


[“Special dispatch” by staff reporter Ma Ling (7456 
3781): “New International Airport to Be Built in Bei- 
jing”) 

[Text] Beijing, 12 May (TA KUNG PAO)—Zhang Baifa, 
executive vice mayor of Beijing, disclosed that the State 
Council has officially approved a new international 
airport project in Beijing. The new airport project will be 
initiated later this year or early next year and is expected 
to be completed in three years. The project will entail a 
total investment of 6.2 billion yuan. It will be located in 
the southeast corner of the present airport and will 
occupy some 240,000 square meters and will have 41 
satellite rooms. When the new international airport is 
completed, the present international airport will be 
changed into a domestic airport, and the two airports 
will then be connected with electric passenger walkways. 


NATIONAL AFFAIRS 3 


Science & Technology 


ee 
Equipment 


OW2605003594 Beijing XINHUA Domestic Service in 
Chinese 0928 GMT 23 May 94 


[By reporter Fu Gang (0265 0474)} 
[Text] Tianjin, 23 May (XINHUA)}—China attaches 


importance to technological 
ae Se ete: Sa, we SS 

consiant increase in investments in those areas, and to 
markedly increasing the percentage of domestic-made 
equipment, so they will play a greater role in economic 
construction. Today, Xu Penghang, State Economic 
Restructuring Commission vice minister, made the 
above remarks. 


Ten years ago, China set the strategic goal of manufac- 


ion project, the 
Baoshan Iron and Steel Complex's second stage project, 
large chemical fertilizer plants, a 300,000-tonne ethylene 
plant, the Dagin Railway, and desert oil drilling. Because 
the state attaches importance to these projects, great 
cooperation among relevant departments, provinces, 
and municipalities; joint efforts by thousands of enter- 
prises, institutions, and by hundreds and t!ousands of 
scientific and technological personnel; and through the 
integration of technology and trade and through 
importing and assimilating technologies, China has grad- 
bases for a number of major technological equipment. 


So far, 40 complete sets of major technological equip- 
ment have been completed, commissioned, and applied 
in some 50 key construction and technological transfor- 
mation projects. For instance, Beijing's electron- 
positron collider has been operating smoothly and reli- 
ably over the last several years, has been highly evaluated 
by international high-energy physics circles, and has 
been made public to the outside world. A complete set of 
single bucket-wheel excavator technology for open-cut 
mining, capable of producing 10 million tonne output 
annually, has been promoted at the Nanfeng Iron Mine 
and Huolinhe Coal Mine and was exported to Pakistan, 

where it was well received. Both the electron-positron 
collider and the single-bucket wheel excavator tech- 
nology won the State Scientific and Technological 
Progress Prizes. Through technological imports and joint 
ventures, large capacity generators for thermal power 
stations, thirteen 300,000 kw generators in all with over 
90-percent domestic-parts, have been completed, com- 
missioned, and have begun ‘ransmitting power. In addi- 
tion, two 600,000 kw gene: :ting sets for thermal power 


Minister Wu Yi Reports on Foreign Trade 


HK2705010894 Beijing GUOJI SHANGBAO in Chinese 
14 May 94 pp I, 3 


[Speech by Wu Yi, minister of foreign trade and eco- 
nomic cooperation, at “International Symposium on 
China's Foreign Trade and Economic Cooperation 
Strategy in the 1990's”: “Opportunities and Prospects: 
Basic, Tentative Ideas on China's Foreign Trade and 
Economic Cooperation Development in the 1990's”] 
[Text] Respected Vice Premier Li Langing, respected 
guests, ladies and gentlemen: 
On this occasion of the grand opening of the “Interna- 
tional Symposium on China's Foreign Trade and Eco- 
nomic Cooperation Strategy in the 1990's,” please allow 
me, on behalf of the sponsoring organization—China’'s 
Ministry of Foreign Trade and Economic Cooperation 
MOFTEC}—to extend a warm welcome and our heart- 
thanks to domestic and foreign guests, specialists, 
scholars, and personalities from the industrial and com- 
mercial circles who have come to attend this symposium 
at our invitation. This is the first time since reform and 
opening up began in China, and even since the founding 
of the people's republic, that MOFTEC, as a functional 
department under the State Council in charge of foreign 
trade and economic cooperation for the whole country, 
has held a high-level development strategy symposium in 
which domestic and foreign noted personalities and 


27 May 1994 
have come to the symposium despite many claims on 
feelings toward China but who, for certain reasons, have 
not been able to come, have extended good wishes to the 
symposium. I believe that with the concerted efforts of 
achieve complete success and its fruitful results, will 
certainly be written into the history of China's trade, 


I would now like to give, for our friends’s discussion, a 
brief account of the general situation of the development 
of China's foreign trade and economic cooperation and 
of some tentative basic ideas for the development and 
Ee 
l s. 


began 
the end of the 1970's, the national economy has devel- 
oped in a sustained manner, ive national 


system and are not much different in content from other 
countries. However, as far as concrete contents are 
concerned, we usually divide foreign trade and economic 
cooperation into six parts according to the nature and 
the needs of business management and of guidance work: 
1) The import and export trade of commodities, that is, 
the tangible trade which is the foundation and focus of 
the entire foreign trade and economic cooperation of 
China; 2) the absorption of foreign capital, including the 
absorption of direct investment from outside the border, 
the setting up of various forms of enterprises with 
investment made by foreign businessmen, and various 
kinds of foreign loans; 3) the import and export of 
technology, that is, trade in technology; 4) contracting 


FBIS-CHI-9$4-103 
27 May 1994 


projects and providing labor services abroad; 5) eco- 
nomic and technical aid to foreign countries; and 6) 
carrying Out multilateral trade and economic 
tion with UN development systems and other i 
tional organizations concerned. 


In the 15 years of reform and opening 


if 


tty 
SF 
Ht 
i 
ie il 


oR See 
Sif 
ities 
stgl 
ged 
iu 
Th 
se tszl 


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of which the amount involved in agreements on foreign 
loans was $85.8 billion and $71.8 billion was actually 
used. The accumulated total of projects for direct invest- 
ment made by foreign businessmen approved 
throughout the country was 174,000, whose agreements 

involved $221.9 billion in foreign capital of $61.8 billion 
was actually invested. In recent years, the percentage of 
projects in China invested in by major foreign enter- 
prises and famous transnational corporations has 
increased and the ways of cooperation in investment 
have become increasingly diversified. By the end of 
1993, foreign-invested enterprises across the country 
which had begun operations numbered 83,000. They are 
playing a positive role in the economic and social devel- 
opment of our country. Last year, the output value of 
foreign-invested enterprises exceeded 300 billion yuan 
and their import and export volume reached $67 billion, 
accounting for one-third of the country's total import 
and export volume. The number of people « by 
foreign-invested enterprises in China exceeds 10 million. 


Aa the same time, China has alse made great develop- 
merits in exchanges and cooperation with foreign coun- 
tries in the fields of technology and labor services. 
Foreign trade and economic cooperation are developing 


NATIONAL AFFAIRS 


the demands of the establishment of the socialist market 
the other hand, we have upheld the principle of equality 
and mutual benefii and made efforts to develop various 
forms of multilateral and bilateral trade and economic 

world. 


our country. Viewed from the trends of 
Govdiagnanssia tay entd erreemny ont tease, ond heen 
the conditions of various aspects of Sino-foreign 
exchanges, the potential for development in China's 
foreign trade and economic cooperation is still quite 


Tr 


Alt present, the level of China's foreign trade and eco- 
nomic cooperation is still low and the ties and exchanges 
between China's economy and the world economy are 
still insufficient. In particular, the national economy is 
developing at a relatively high speed, the growth in 
exports lacks strength, and the pressure of balancing 


é 
H 
t 
Ht 
j 
: 
i 
i 


for foreign trade operations which conforms with the 
current rules governing the international economy, and 
provide a guarantee in terms of system to ensure the 
sustained, rapid, and healthy t [chixu kuaisu 


developmen 
jiankang fazhan 2170 4958 1816 6643 0256 1660 4099 
1455] of foreign trade and economic cooperation. In the 


iemmpehtidenend con teeter 


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Teaiaaiiodiinanieaaeee a instineedn 
consensus of almost all countries and of most specialists. 


This situation is very gratifying to us. 
Another gratifying matter in international trade is the 


within a region, that is, the so-called “trade shift effect.” 
Besides, trade protectionism will be very popular in 
many fields of international trade. Some countries will 
even politicize economic relations, advocate unilateral- 
ism, and exert pressure on their trade partners through 


FBIS-CHI-94-103 
27 May 1994 


unilateral measures. This will directly threaten the oper- 
ation of the multilateral trade structure and will be quite 
harmful to the development of China’s foreign trade and 
economic cooperation. B) As a developing country, 
China’s production and technological levels are low, the 
economic development of different regions and trades is 
quite uneven, and China is still at a relatively low level in 
the international economic and trade system. C) In the 
course of changing the domestic economic and trade 
structure, conflicts between the new structure and the old 
are unavoidable. This means that in the course of imple- 
menting the strategy of the development of foreign trade 
and economic cooperation, we must properly handle the 
relationship between reform and development. 


Faced with the general situation of the international 
economic and trade development, China should, in the 
1991's, seize the opportunities, take up the challenges, 
formulate, in light of China’s reality and extensively 
absorbing and using as reference successful international 
experience, a correct strategy for foreign trade and 
economic cooperation to give guidance to the develop- 
ment and reform of its foreign trade and economic 
cooperation, make overall planning, and painstakingly 
implement such planning in a bid to attain the strategic 
goal of speeding up the process of modernization. 


According to the new demands put forward by the 
domestic and foreign environments and the moderniza- 
tion of China in the 1990's, considering the needs of 
further deepening reform, opening wider to the outside 
worid, and promoting development and in light of the 
reality of the development of foreign trade and economic 
cooperation, China must, in its foreign trade and eco- 
nomic cooperation in the 1990's, implement the “big 
economic and trade strategy” which is based on import 
and export trade; enables mutual infiltration and coor- 
dinated development of commodities, capital, tech- 
nology, and labor service cooperation and exchanges; has 
the joint participation of departments of foreign trade 
and economic cooperation, production, science, tech- 
nology, and finance; and which upgrades foreign trade 
and economic cooperation enabling it to give better play 
to its strategical role of promoting economic growth, 
structural readjustment, and technological progress, and 
increasing economic results. 


We shall further develop foreign trade and economic 
cooperation in depth and in breadth to form a pattern 
which is open, through various channels, to the whole 
country and the outside world in all directions and in 
various fields. On this basis we shall, in accordance with 
the requirements of international trade standards and 
norms, further reform the economic structure, especially 
the foreign trade and economic cooperation structure, 
speed up the change of the enterprise operational mech- 
anism, speed up the convergence of the domestic 
economy and the world economy, and establish a basic 
pattern of China’s open-type economic system. 


We shall speed up the general merging of various busi- 
nesses of foreign trade and economic cooperation, 


NATIONAL AFFAIRS 35 


mainly the merging of foreign trade, utilization of for- 
eign capital, making investment abroad, and other busi- 
nesses of economic and technical cooperation with for- 
eign countries, and we shall bring about an overall and 
coordinated development of commodity trade, tech- 
nology trade, and service trade. With the prerequisite of 
giving support to and actively participating in the global 
multilateral trade system, we shall strive to bring about 
an organic integration of multilateral trade and eco- 
nomic cooperation, regional trade and economic coop- 
eration, and bilateral trade and economic cooperation, 
and form joint forces as a whole for China’s participa- 
tion in international competition. With the reform of the 
management structure and operational mechanism for 
exchange rates, taxation, and tariffs, we shall combine 
the macroregulation and control of foreign trade and 
economic cooperation with the macroregulation and 
control of the national economy, and regard the sus- 
tained and stable development of foreign trade and 
economic cooperation and the maintenance of a balance 
in international receipts and payments as the direct 
target of state macroeconomic regulation and control. 


To meet the demands of economic development in 
foreign trade and economic cooperation in the 1990's, 
we Shall take the road of intensive development, make 
efforts to improve quality, further implement the 
strategy of “winning victories with quality,” make 
greater efforts to “optimize structure, speed up techno- 
logical progress, and increase economic results,” and 
strive to complete, before 2000, the change from an 
export product mix which mainly consists of textile 
products to an export product mix which mainly consists 
of electrical, mechanical, heavy industry, chemical, and 
new- and high-tech products; and the change from an 
export product mix which mainly consists of rough- 
machining and low value-added products to an export 
product mix which mainly consists of finished- 
machining and high value-added products, bringing 
about a relatively big improvement of the structure and 
economic result of foreign trade and considerably 
improving the quality and economic results in using 
foreign capital, investment abroad, and other businesses 
of foreign economic and technological cooperation. 


Market pluralization is an important principle for 
expanding and deve’ ping our foreign trade and eco- 
nomic cooperation. ihe goal of market pluralization is, 
through our effo-:s, to gradually form a rational market 
structure with the Asia-Pacific market as the focus, 
peripheral markets as the support, and with a balanced 
layout of markets in the developed countries and those 
of the developing countries, to maintain a balanced and 
coordinated development of foreign trade and economic 
relation and to develop foreign trade and economic 
relations in all directions. 


We shall promote the rational division of work among 
the various localities. In the 1990's, in the links of the 
development of export-oriented industries and foreign 
trade and economic operation of various localities in 
China, we will form a work division pattern which 


36 NATIONAL AFFAIRS 


facilitates the division and work and cooperation and 
which can give full play to the strong points of the 
various localities and enables them to have their own 
characteristics. We shall basically eliminate the irra- 
tional phenomenon of duplication in the development of 
export-oriented industries in various localities, promote 
the formation of a unified domestic market, reduce 
contradictions and conflicts between localities, and form 
a pattern of rational and coordinated development of 
foreign trade and economic cooperation between various 
localities. 


In accordance with the basic demands of reform, 
opening up, and modernization in China in the 1990's, 
we shall adopt a series of important, practical, and 
effective measures and strive to attain the strategic goal 
of China’s foreign trade and economic cooperation sat- 
isfactorily. 


Active participation in the global multilateral trade 
system and making efforts to develop multilateral trade 
and economic relations have a direct bearing on the 
improvement in the external environment for China’s 
foreign trade and economic cooperation. China firmly 
supports the international multilateral trade system rep- 
resented by GATT and is stepping up work in talks on 
restoring its status as a GATT signatory state. China's 
determination to participate in the international multi- 
lateral system is very firm and we have made tremen- 
dous efforts in this respect. In accordance with the 
requirements of international trade standards and 
norms, China has carried out a series of important 
reforms in the foreign trade structure, its market access 
conditions have markedly improved, and the transpar- 
ency of its economic and trade system has greatly 
increased. Through a new round of reforms which begin 
this year, China’s economic and trade structure and the 
international rules will further converge. The increase in 
the extent of opening China’s market has a positive 
impact on the development of the world economy and 
trade. 


As we all know, China comprehensively participated in 
the Uruguay Round of multilateral trade talks, made 
positive contributions to the success of the talks, and 
signed the final document from the talks last month. 
Besides, the conclusion of the Uruguay Round of talks 
has also added new meaning to China’s reentry to 
GATT. Talks on China’s reentry to GATT have lasted 
for eight years. We are willing to work, together with all 
signatories, for strengthening of the global multilateral 
economic and trade system and to make due contribu- 
tions to the prosperity and development of the world 
economy and trade. I would like to take this opportunity 
to thank the great majority of signatories for their 
support for China’s reentry to GATT and hope certain 
signatories will earnestly fulfill their promises and 
actively give support to China’s reentry to GATT. 


I have already mentioned that, in recent years, the 
tendency to form regional groups in the world economy 
has been developing at a higher speed. We hope that the 


FBIS-CHI-94-103 
27 May 1994 


establishment and operation of regional economic and 
trade groups and the global multilateral trade standards, 
can converge and these groups should not become exclu- 
Sive protective organizations. Proceeding from this 
point, China takes a positive attitude toward the 
strengthening of economic cooperation in the Asia- 
Pacific region. We stand for following the principle of 
“‘mutual respect, equality and mutual benefit, opening to 
each other, and common prosperity” in carrying out 
economic cooperation in the Asia-Pacific region and do 
not agree with trade protectionism. On the basis of 
strengthening the global multilateral trade system, we 
will promote deepening economic cooperation in the 
Asia-Pacific region and make greater contributions to 
the growth of the world economy and trade. 


To better develop multilateral and bilateral trade and 
economic relations, we will continue to follow the prin- 
ciple of equality, mutual benefit, and friendly coopera- 
tion, oppose exerting pressure on another party in trade 
and economic exchanges, and disagree with unilater- 
alism or other forms of trade protectionism. 


We will constantly deepen the reform of the foreign trade 
and economic cooperation structure in accordance with 
the demands of the operation of China’s socialist market 
economy and the rules for the operation of the interna- 
tional economy. At present, while promoting reforms in 
the taxation and financial fields, we are making efforts to 
carry out a new round of reforms of the foreign trade 
structure. The core of the reforms is to bring about a 
unified foreign exchange rate and to institute a unified 
and managed floating renminbi exchange rate system 
based on market supply and dernand. The new structure 
has operated normally for the past four months and the 
momentum of the development of import and export 
trade is very good. This has further strengthened our 
confidence and determination to deepen the reforms and 
to carry them out to the end. It can be expected that 
following this round of reforms, the operational mecha- 
nism of China’s foreign trade enterprises will become 
more standardized and macromanagement will become 
more scientific and standardized. We will basically com- 
plete the establishment of the framework of a new 
foreign trade structure in the last few years of this 
century. 


China upholds the policy of basically balanced import 
and export trade, that is, on the basis of increasing 
exports, China opens its domestic market to all trade 
partners and opposes all forms of trade protectionism. 
We will adopt positive measures to achieve a balanced 
development of import and export trade. This means we 
will make efforts to increase sources of export goods, 
widen trade channels, develop foreign markets to 
increase exports, and increase the capacity for payment 
for imports in a bid to achieve a positive trade balance. 
I hope our trade partners can adopt an objective and fair 
attitude toward China's exports, abolish discriminative 
treatment against China, earnestly observe international 
trade rules and norms, and safeguard the fair and open 


FBIS-CHI-94-103 
27 May 1994 


multilateral trade system to promote a sustained devel- 
opment of international trade. We understand that the 
industrial and commercial circles in all countries of the 
world have a keen interest in the tremendous potential of 
the market in China. However, it is quite evident that 
only with a sustained growth in exports will the 
momentum oi the growth in China’s imports be main- 
tained and the tremendous potential of the market in 
China tapped. According to the needs of modernization, 
the total volume of China’s imports will reach $1 trillion 
in the coming seven years. 


Active and effective absorption of investment by foreign 
businessmen is an important aspect of China’s efforts to 
expand foreign trade and economic exchanges. We will 
maintain the continuity of our policy toward foreign 
capital and continue to encourage foreign businessmen 
to make investment in China. We will sum up experi- 
ence, keep abreast of the new situation, and give clearer 
guidance in terms of production sectors for foreign 
businessmen to make investment. In accordance with 
the industrial policy of China, we will absorb more 
foreign capital for carrying out projects at a higher 
technological level and on a relatively larger scale, 
encouraging foreign businessmen to use various forms 
proven to be effective abroad to make investment in 
China’s basic industries and infrastructure so that 
investment by foreign businessmen and China's strategy 
for economic development can converge. In this way, we 
will also be able to provide better conditions for ensuring 
the interests of foreign businessmen in making invest- 
ment. 


In the course of deepening reforms of the economic and 
trade structure, we have always paid attention to 
respecting and protecting the legitimate rights and inter- 
ests of foreign businessmen. I would like to tell you that 
in the new round of reforms of the foreign trade struc- 
ture, we will institute the foreign exchange settlement 
and sale system in state-owned foreign trade enterprises 
and will adopt a transitional method for all foreign- 
invested enterprises. That is, we will allow them to 
continue to keep their spot exchange account to facilitate 
their production and operation, including operational 
activities of imports and exports. Another example is 
that in the new round of reforms of the taxation struc- 
ture, the tax burden of foreign-invested enterprises will 
not increase on the whole and we have worked out 
corresponding compensation methods for individual 
enterprises whose tax burden has actually increased, to 
ensure that foreign businessmen can really enjoy the 
preferential conditions stated in the laws of China and in 
agreements on cooperation. None of our preferential 
policies for foreign businessmen to make investment 
have changed. We will improve unremittingly the invest- 
ment environment and create conditions for foreign 
businessmen to enjoy the same “treatment as for Chi- 
nese nationals.” We will make greater efforts to intro- 
duce technology, improve the methods and structure of 
introducing technology, and take an open road of intro- 
duction; at the same time, we will energetically develop 


NATIONAL AFFAIRS 37 


international technological cooperation and increase 
technology imports. In this field, we will constantly raise 
the level of protection for intellectual property so that 
trade in technology will develop along a healthy and 
standardized track. 


We will continue to contract more projects abroad and to 
develop the market and the scope of business and 
cooperation of labor service. We will also continue to 
increase the international competitive power of China’s 
service trades such as financial insurance for foreigners, 
transportation for foreigners, and contracting labor ser- 
viced abroad. We will keep abreast of the development 
of international trade and gradually open service trades 
to foreign countries. At the same, we will make great 
efforts to raise the level of service trades. While opening 
China’s service markets to the outside world, we will 
make efforts to develop the international markets, nur- 
ture and develop service trades with strong points, raise 
China’s service trades to a higher level, and achieve a 
basic balance in the receipts and payments in China’s 
service trades. 


We are making great efforts to strengthen building of the 
legal system regarding foreign trade and economic coop- 
eration to ensure foreign trade and economic enterprises 
operate according to law and to constantly raise the level 
of macromanagement according to law. China's first 
“Foreign Trade Law” has been submitted to the ongoing 
Seventh Meeting of the Eighth National People’s Con- 
gress Standing Committee for examination and discus- 
sion; and laws and decrees to supplement the “Foreign 
Trade Law” are being drafted. Within three years, we 
will basically establish a relatively sound law and decree 
system for foreign trade and economic cooperation. To 
meet the demands of the operation of the new tax and 
financial systems, we will firmly grasp the improvement 
and perfection of the export tax reimbursement system 
and strengthen and perfect the foreign trade credit 
system and the risk mechanism in accordance with 
current international practices. 


In the course of developing foreign trade and economic 
cooperation, we will continue to give play to the strong 
points of coastal areas in the new situation. At the same 
time, we will speed up work to open the hinterland faster 
to the outside world and to bring about a situation 
wherein the coastal areas and the hinterland comple- 
ment each other in terms of their strong points and 
develop together. The coastal areas were opened to the 
outside world earlier and the level of their economic 
development is also relatively higher. From now on, we 
will give support to coastal areas so that they can 
optimize their structure at a relatively higher starting 
point and can continue to develop. Regarding the vast 
hinterland, we will concern ourselves more with it and 
give it more support. We will promote development with 
opening up, pay special attention to giving play to the 
resources of the hinterland, encourage foreign busi- 
nessmen to make investment in exploiting resources, and 
gradually establish hinterland industries which have a 
competitive edge. We will also use successful practices in 


38 NATIONAL AFFAIRS 


regional development abroad for reference and will 
adopt necessary preferential policies for opening up and 
developing the hinterland. The central and western 
regions are the hopes for China’s economic development 
in the next century. Farsighted ana enterprising entre- 
preneurs will find the regions full of opportunity and 
hope if they make study tours there. 


Ladies and gentlemen, the world is advancing toward the 
21st century and opening up, readjustment, and devel- 
opment are the common tasks of the world economy. 
China’s policy of opening to the outside world is firm 
and unshakable and China’s determination to further 
develop its trade and economic relations with all coun- 
tries in the world is also firm and unshakable. China will 
make increasingly important contributions to the pros- 
perity of the world economy and trade through continu- 
ously opening wider to the outside world and developing 
its foreign trade and economic relation with other coun- 
tries in depth. We sincerely hope that all Chinese and 
foreign noted personalities, specialists, scholars, and 
entrepreneurs present will put forward their valuable 
suggestions and proposals on developing China’s foreign 
trade and economic couperation in the late 1990's, will 
increase exchanges and cooperation with us, and will 
help us improve our work and raise our level of policy- 
making decisions. Finally, I want to express my sincere 
thanks again to all present and to personalities from all 
countries, regions, and international organizations in the 
world who have enthusiastically shown concern for, and 
given support to, Chira’s foreign trade and economic 


cooperation. 


I wish our guests good health and I wish the symposium 
success. 


That is all. Thank you. 


Chief Weatherman Forecasts Droughts, Floods 


OW2605210994 Beijing XINHUA Domestic Service in 
Chinese 0759 GMT 25 May 94 


[By reporter Zhao Lianging (6392 6647 1987)] 


[Text] Beijing, 25 May (XINHUA)—This reporter has 
interviewed Zou Jingmeng, director of the China Mete- 
orological Administration, on the weather forecast 
during the flood season this year. According to weather 
forecast, the regions on the upper and middle reaches of 
the Huang He and the northern part of North China 
should particularly pay attention to flood prevention 
during the flood season this year. Regions experiencing 
droughts at present, while combating drought, should 
also watch out for possible floods during the flood 
season. 


Zou Jingmeng said: During the flood season this year, 
the natural disasters caused by droughts and floods could 
be more conspicuous than last year, and droughts could 
be more serious than floods. As both serious droughts 
and serious floods are likely, we must be fully prepared 
for them and strive to keep losses at a minimum. 


FBIS-CHI-94-103 
27 May 1994 


Concerning weather service activitics during the flood 
season, Zou Ji said: At present, the weather 
departments at all levels have been on combat alert. 
Weathermen will work around the clock to closely mon- 
itor weather changes and strive to offer a good weather 
service during the flood season. To ensure a good 
weather service during the flood season, the China 
Meteorological Administration has already called on the 
leaders of the weather departments at various levels to go 
to work on the front line, clearly divide work, strictly 
perform their duties, implement the system of responsi- 
bility at various levels, and be well prepared in terms of 
mentality, organization, technology, equipment, and 
personnel. 


Zou Jingmeng particularly emphasized that the weather 
department should provide weather service for the pre- 
vention of floods both in major rivers and reservoirs and 
in urban areas, so as to protect the people’s lives and 
property. 


Minister Inspects Ship Accident Site in Shanghai 


OW2705080794 Shanghai People’s Radio Network in 
Mandarin 2300 GMT 25 May 94 


[By station correspondents Ni Zedong and Wang Shup- 
ing; from the “990 Morning News” program] 


[Text] Yesterday [25 May] morning, Minister of Com- 
munications Huang Zhendong and other leaders con- 
cerned rushed to the site where the Shanghai Ocean 
Shipping Corporation (?Group’s passenger liner) cap- 
sized, to inspect and give work guidance. Huang 
Gemanded that the oil spill be prevented from polluting 
water and the [words indistinct] plan be implemented as 
soon as possible. 


On the very night of 23 May, the (7Maritime Supervision 
Bureau) dispatched four patrol boats after the liner 
Changcheng capsized to help with [words indistinct] and 
evacuation of passengers, maintain smooth water traffic, 
and lay oil encirclement and oil absorbing felt to try to 
recover the spilled oil and prevent environmental pollu- 
tion. 

It has been learned that two firefighters have heroically 
laid down their lives when extinguishing fire on the 
Changcheng liner. 


Business Information Exchange Forums Viewed 


11K2705054494 Hong Kong EASTERN EXPRESS in 
English 27 May 94 p 36 


(“Exchange Square” column by Lulu Yu] 


[Text] Business conferences and investors’ forums are 
becoming increasingly useful and important events for 
those doing business in China. Useful and important, 
that is, for those who can afford to attend them. If you're 


FBIS-CHI-94-103 
27 May 1994 


not there, too bad. The views and information passed 
around in these meetings are often a closely guarded 
secret. 


Which is really unfortunate. There is a lot of good, solid 
information in company presentations at these events 
which help investors understand certain companies 
better, especially recently listed China-based companies. 


Take Credit Lyonnais Securities Asia’s investors’ forum 
which ended yesterday. It got together 240 fund man- 
agers from three continents, possessing among them- 
selves a global pool of U.S.$3,000bn-3,500bn (about 
HK$23,400bn-27,300bn) under management, and 64 
companies from Hong Kong, China and the region to 
exchange views in a four-day seminar and workshop. 
Attending fund managers said it was useful for the 
chance to meet so many company executives from dif- 
ferent countries in a one-stop visit. 

The presentations, mixed in quality we were told, helped 
analysts write their reports and fund managers make 
their investment decisions. The company people said it 
gave them a good venue to market themselves to brokers 
and investors. 


Yet, the press was barred from covering the forum. The 
reason given was that the participants wanted to speak 
more freely without being placed under the spotlight. It’s 
a reason cited increasingly frequently these days. We 
heard it before at a recent business conference in Beijing 
organised by the International Herald Tribune, a news- 
paper whose own journalists were not given full access. 


In a day and age when transparency is encouraged in 
public companies, it is disappointing to know that busi- 
nessmen would say certain things to analysts and fund 
managers that they wouldn't to the press, and in turn, the 
general investor who, like the institutional investor, is an 
owner of the company. 


In fact, this veil of secrecy is adopted mainly for the 
benefit, or at the demand of Chinese companies and 
officials, who don’t have a tradition of being open and 
honest about their businesses. 


Their desire to be as much insulated from public scrutiny 
as possible has unfortunately cowed most people who do 
business with them, including their brokers, to be equally 
evasive. 

It is for this reason that many brokerages, including 
Credit Lyonnais, refuse to share their research and their 
views on Chinese companies with the public. A pity 
really, for a house ranked tops for its China research. 
Some say they have no choice. If some of their reports 
got into the newspapers, a number of Chinese companies 
could see their prices collapse, and China might come 
down on the brokerage like a tonne of bricks. 


“They have long memories, you know. If you write 


something they don’t like, they’re going to remember it 
for a long time. It’s one thing to give the information to 
your clients, it’s another to see it all over newspapers,” 


NATIONAL AFFAIRS 39 


one Credit Lyonnais executive said. He is not alone in 
his paranoia, or should we say, caution. One person from 
Smith New Court recently got very worried when his 
views on China got published. 


We know China runs a blacklist of journalisis. Maybe 
they’re compiling one on analysts, as well. 


Beijing To Allow Foreign Investment in Aviation 


HK2705042294 Beijing CHINA DAILY in English 27 
May 94 p 1 


{By Xie Yicheng: “Airlines Clear Path for Foreign 
Investment”) 


[Text] China will try to upgrade its domestic air trans- 
port by permitting foreign investment in airlines and 


airports. 


New policies will permit foreign carriers to invest with 
Chinese airlines and also launch joint or cooperative 
airline companies. 

Foreign firms also can buy shares of Chinese airlines or 
help pay for setting up new airlines. 


The Civil Aviation Administration of China (CAAC) 
and the Ministry of Foreign Trade and Economic Coop- 
eration (Moftec) also announced in a circular yesterday 
that foreign businessmen will be allowed to invest in and 
build flying districts for civilian airports, including run- 
ways and taxiways and parking aprons. 

Foreign firms and individuals also will be encouraged to 
invest in other ground facilities—terminal buildings, 
freight warehouses, ground services, aircraft mainte- 
nance, air catering, hotels, restaurants and fuel. 


In constructing flying districts or terminal buildings, 
however, the Chinese side should have more than 51 per 
cent of registered capital, and both the board chairman 
and general manager should be Chinese. 


The Chinese agencies said that the government will 
continue exclusive jurisdiction over air traffic control. 


The CAAC will pick one or two domestic airlines as 
initial experiments in joint operations with foreigners. 
But in running a joint venture airline, the foreign invest- 


ment will be limited to 35 per cent, and foreign voting 
rights cannot exceed ‘ CAAC did not elabo- 


chairman and general manager 
en by the Chinese part. 


The directives provide that the Chinese general manager 
can appoint foreigners as assistant managers and other 
subsidiary positions. 

Airlines with foreign investments will be treated equally 
with airlines owned and operated exclusively by the 
government 


40 NATIONAL AFFAIRS 


The new policy also will allow foreign investment in 
aviation for crop and forestry spraying. 


Foreigners interested in such investments must obtain 
approval from CAAC. The contracts must be ratified by 
Moftec. 


Projects with investment beyond CAAC’s approval 
power are subject to examination and endorsement of 
the State Planning Commission. CAAC did not specify 
the sum. 


Businesses from Taiwan, Hong Kong and Macao will be 
allowed to invest in the mainland’s civil aviation on the 
same terms. 


Observers said that civil aviation sector is one of China’s 
latest areas open to outside investors. 


They say the new rules are part of its efforts to open its 
aviation area wider to the outside world. 


Official Explains Interbank Foreign Exchange 
Market 

11K2605 120894 Beijing ZHONGGUO XINWEN SHE 
in Chinese 0347 GMT 10 May 94 


[By reporters Gan Zhebin (3927 0772 2430) and You 
Xiayin (3266 1115 5419): “Xu Bin, Deputy Director of 
the State Administration of Exchange Control, on New 
Developments in China’s Foreign Exchange Market’’] 


[Text] Beijing, 10 May (ZHONGGUO XINWEN 
SHE}—At a symposium held here the other day, Xu Bin, 
deputy director of the State Administration of Exchange 
Control, elaborated on the structure and composition of 
China’s foreign exchange market and revealed new 
ongoing developments in the interbank foreign exchange 
market. 


Xu Bin: At present, China’s foreign exchange market can 
be divided into three markets. The first part is the retail 
market, specifically the foreign exchange market 
between the appointed foreign exchange bank and the 
enterprise. The second is the foreign exchange swap 
market between foreign-invested enterprises. It retains 
its previous role as a swap center and specifically offers 
swap services to foreign-invested enterprises. The rates 
at which foreign-invested enterprises buy and sell foreign 
exchange are the same as the foreign quotations pub- 
lished by the People’s Bank of China plus 0.15 percent in 
handling fees. The price disparity method is not used. 
The third is the interbank foreign exchange market. It 
mainly offers the service of covering the position of 
appointed foreign exchange banks, because they typi- 
cally either overbuy or oversell in the course of settling 
foreign exchange transactions. When such a situation 
occurs, it can be balanced through the interbank foreign 
exchange market. 


Xu Bin specifically spoke about the interbank foreign 
exchange market, saying: The interbank foreign 
exchange market, which is now operating healthily, is a 


FBIS-CHI-94-103 
27 May 1994 


nationwide unified and standardized exchange market 
based on the national swap center. It has a computer 
network which is linked with other networks. Beginning 
from 1 March this year, the first five cities linked their 
computer networks and started transactions. On | April, 
another 10 cities linked computer networks and began 
transactions. Twenty exchange network points will be 
linked in the near future, making it possible to radiate to 
all parts of the country. 


He said: The interbank foreign exchange market prac- 
tices the membership system. All banking and nonbank 
financial institutions which have been approved to deal 
in renminbi and which dea! in the foreign exchange 
business at the same time can become members of the 
market. Presently, foreign banks, which cannot offer 
banking services for the import business of Chinese 
institutions, can only engage in one-way sales of foreign 
exchange in the foreign exchange market of the same 
trade. Non-financial institutions, namely industrial and 
commercial enterprises, cannot directly trade in the 
interbank foreign exchange market, because their foreign 
exchange transactions are already handled at the 
counters of appointed foreign exchange banks. 


Regarding the China Swap Exchange Center recently set 
up in Shanghai, Xu Bin said: The center is a market 
Organization which is independent of the State Admin- 
istration of Exchange Control. It only offers settlement 
and exchange services and does not have administrative, 
examination, or approval functions. 


Xu Bin made the above remarks at “The Impact of 
Renminbi’s Integration With the World Market on the 
Operations of Foreign Enterprises in China,” a sympo- 
sium held by the China Hong Kong (Regional) Chamber 
of Commerce. 


Planning Commission on ‘Illegal’ Price Hikes 


HK2605035494 Beijing ZHONGGUO XINWEN SHE 
in English 1238 GMT 25 May 94 


[Text] Beijing, May 25 (CNS)—According to the State 
Planning Commission, the inspection staged in the 
whole country has achieved the initial success with more 
than 61,300 cases involving illegal rises in prices discov- 
ered in 19 provinces from March 10 to April 15, about 
one-third of cases involving daily necessiti”« 


Among these cases, over 47,000 cases have bex:. dealt 
with to date involving illegal income of RMB 53.89 
million [renminbi] and a total fine of RMB 28 million 
has been imposed. Nearly 20,000 cases related to illegal 
rises in prices of daily necessities, 471 cases related to 
production means, over 1,100 cases involving prices of 
public services and over 1,200 in prices of management 
fees. 


FBIS-CHI-94-103 
27 May 1994 


ee Bank To Publish Financial Outlook in 
uly 


OW 2605173294 Beijing XINHUA in English 1323 
GMT 26 May 94 


[Text] Beijing, May 26 (XINHUA)—In a clear move to 
enhance its role as a central bank, the People’s Bank of 
China (PBC) wili publish its national financial and 
economic forecast for the first time since its establish- 
ment in 1984. 


“China Financial Outlook”, serving as PBC’s annual 
forecast for 1994, features articles, charts and tables of 
figures. 


The forecast anticipates that, by the end of July, the 
Central Bank will be able to withdraw the new banknotes 
put into circulation during the first half of this year. 


It also predicts that personal savings in Chinese banks in 
1994 will total more than 400 billion yuan. 


To ensure smooth economic development, “China 
Financial Outlook” recommends that the bank continue 
to adopt a tight monetary policy. 


“We are generally satisfied with the book as we've tried 
our best to present a true picture of the country’s 
financial landscape in 1994,” said Xie Ping, a leading 
PBC researcher and writer of “a preview of China’s 
financial situation in 1994”, one of the two keynote 
articles in the book. 


According to him, analysis and forecasts are also made in 
areas of investment, prices, foreign trade, financial mar- 
kets, and international current accounting. 


The book’s intensive focus on the Central Bank’s mon- 
etary policy for this year is intended to make it better 
understood and accepted, esveciaily by departments and 
local leaders. 


“It is time that the Central Bank’s voice should be heard, 
and its views heeded and shared,” said Xie, adding that 
sensible enterprises will readjust their strategies in line 
with Central Bank signals. 


This will in turn contribute to the successful implemen- 
tation of the monetary policy, noted Xie. 


The book will come out in late July and will most likely 
become the Central Bank’s model for future annual 
forecasts. 


Journal Analyzes Fiscal, Tax Reforms 


HK2705085894 Beijing JINGJI YANJIU in Chinese No 
4, 20 Apr 94 pp 34, 38 


[Article by He Zhenyi (0149 2182 0001) of the Institute 
of Finance, Trade, and Commodity Economics under 
the Chinese Academy of Social Sciences; edited by Lu 
Wen (7120 2429): “Analysis of the Effects and Problems 
of the 1994 Fiscal and Tax Reform Measures”] 


NATIONAL AFFAIRS 41 


[Text] At the beginning of 1994, our country imple- 
mented three major fiscal and tax reform measures. 
These measures are not only major measures involving 
wide areas, but are basic reforms adopted in response to 
deep contradictions in the fiscal and tax structures. The 
promulgation of these measures indicates that the 
reform of our country’s fiscal and tax structures has 
entered a strategically decisive stage. Its success or 
failure will not only affect whether fiscal and tax reforms 
can push through the various obstacles and reach a new 
stage, but will also affect whether or not the goal of 
building a socialist market economy system can be 
smoothly realized. Thus, people are paying very great 
attention to the results realized by these fiscal and tax 
measures and the various problems they may encounter. 
This article intends to provide a rough analysis of these 
issues. 


1. Background To, and Contents of the Measures 


Since the Third Plenary Session of the 1 1th CPC Central 
Committee, through a series of major efforts, our coun- 
try’s fiscal and tax structural reforms have achieved 
obvious results. On the one hand, reform, opening up 
and economic development have been promoted, and, 
on the other hand, the state’s fiscal power has been 
strengthened. However, because of the limitations of 
subjective and objective conditions, the reforms have so 
far been unable to achieve essential change in the fiscal 
and tax mechanisms, and basic contradictions still exist 
between the existing systems and the goal of building a 
socialist market economy structure. These have 
obstructed the establishment of a new macroregulatory 
and control system necessary for the establishment of a 
market economy. They have obstructed the formation of 
a unified and open domestic market, obstructed the 
transformation of enterprise operational mechanisms, 
and obstructed the sustained, rapid, and healthy devel- 
opment of the national economy. Thus, how to speed the 
building of a socialist market economy structure, 
increase the power of fiscal and tax reform, and quickly 
realize pioneering advances in fiscal and tax reform, 
have become a crucial question in current reform and 
development and urgently require resolution. In 
response to this situation, the central authorities are 
determined to actively promote reform of the fiscal and 
tax structures and implemented the following three 
reforms in early 1994: 1) The existing local financial 
administration contract system is to be changed into a 
revenue sharing system between the central financial 
administration and local financial administrations. The 
main element of this is that, on the basis of rationally 
dividing the jurisdictional range of the central and local 
governments, by dividing the revenue range between the 
central financial administration and the local financial 
administration based on tax types and dividing expen- 
diture ranges in accordance with jurisdiction ranges, a 
system by which the central authorities transfer expen- 
diture to local authorities will be established. 2) The 
taxation system will be reformed. This includes reform 
of the enterprise income tax system and reform of the 


42 NATIONAL AFFAIRS 


circulation tax system. The major element of reform of 
the enterprise income tax system is the unification of 
income tax rates for domestically funded enterprises. 
While fixing pre-tax deductions and expenses standards 
and unifying the tax base, through reference to existing 
enterprise tax burden levels and in order to facilitate a 
future merger with the income tax rates applied to 
foreign-funded enterprises, tax burdens were reduced 
and a rational, unified proportional tax rate was imple- 
mented. The main element in the reform of the circula- 
tion tax system is the establishment of a unified circula- 
tion tax sysicm which has an value-added tax as its main 
part, and to change the current practice where there are 
uncoordinated operational taxes, value-added taxes, and 
product taxes. Apart from continuing to implement an 
operational tax in the commodity operational sphere, in 
all other areas, an overall value-added tax is being levied. 
At the same time, the product tax has been changed to a 
consumption tax, and this has been coordinated with the 
value-added tax to carry out special regulation of some 
consumer products. The post-unification circulation tax 
will be suited to both domestically funded and foreign- 
funded enterprises, and it will be possible to abolish the 
unified industrial and commercial tax levied on foreign- 
invested enterprises. In addition, in order to accord with 
the developments and changes of tax sources, some new 
taxes will be introduced, including the value-added land 
tax, the securities trading tax, the inheritance tax, and so 
on. 3) Taking as a principle the separation of the state’s 
function as the owner of assets and the government's 
function as a social manager, the system of distributing 
state and state-owned enterprise profits has been 
reformed. The main element is that after the unification 
of domestically funded enterprises’ income tax, the 
system of implementing unified income tax and profit 
contracts for state-owned enterprises will no longer be 
practiced. On the basis of abolishing the levying on state 
enterprises of key energy and communications construc- 
tion project fund charges and budget regulatory fund 
charges and allowing enterprises to include interest on 
new and accumulated credit in their costs, the system of 
enterprises repaying credit before paying taxes will no 
longer be practiced, and repayments of enterprises’ 
credits will be made using funds left after tax has been 
paid. As for after-tax profits, the state, as the owner, will 
have the right to decide how they should be used. 
Specific measures will be decided based on the actual 
situation of the enterprises. 


2. The Effects and Significance of These Measures 


These fiscal and tax measures can be said to be essential 
breakthroughs in fiscal and tax reform ideology, and they 
show that we are escaping from the fetters of the tradi- 
tional idea of “handing down power and allowing the 
retention of profits” and are truly travelling a road of 
transforming mechanisms and innovating systems. This 
has very great significance both in terms of fiscal and tax 
reform itself and in the overall situation of economic 
reform. These various measures were all adopted in 


FBIS-CHI-94-103 
27 May 1994 


response to deep-seated problems in the existing finan- 
cial system and tax system and to the major contradic- 
tions between these systems and the establishment of a 
market economy structure. Thus, it can be predicted that 
when the measures are implemented, that is, when they 
are able to overcome or alleviate the various defects 
produced by the old system, which obstruct the estab- 
lishment of a market economy structure, these new fiscal 
and tax reform measures will have very positive effects 
in terms of overcoming fiscal difficulties, strengthening 
the macroeconomic regulatory and control function of 
the financial administration, establishing and perfecting 
macroeconomic and regulatory and control systems, 
promoting transformation of enterprise mechanisms, 
promoting the formation of an open and unified national 
market, and promoting the sustained, rapid, and healthy 
development of the economy. 


1. Reforming the system of local financial contracts. 
While in the new structural plans, it is necessary to 
maintain some of the specific practices of the old system, 
such as base figures, and, in some respects, it is necessary 
to adopt revenue and expenditure ranges based on enter- 
prises’ administrative relationships, the revenue-sharing 
reform inevitably involves a comprehensive negation of 
the contract system. This will certainly overcome or 
alleviate in an overall way the various defects brought by 
the contract system and which are disadvantageous to 
the development of the market economy. The contradic- 
tions between the contract system and the development 
of a market economy are seen in many aspects, but 
mainly in the following three: First, the contract system 
greatly weakens financial macroeconomic regulatory and 
control powers, and directly restricts the establishment 
of a macroeconomic regulatory and control system. This 
is because the contract system restricts the fiscal revenue 
of the central authorities, resulting in the growth in 
central financial incume being unable to keep pace with 
the development of the national economy and to keep 
pace with the growth of overall finances. According to 
statistics, since overall contracts were implemented in 
1988, of new income each year, the central financial 
administration only obtained a small proportion, and 
local financial administrations obtained over 90 percent 
of this new income. This unnatural situation where the 
scale of central financial income has gradually shrunk 
has not only resulted in the central financial administra- 
tion losing the financial power necessary for macroeco- 
nomic regulation and control, but has also weakened its 
capacity to regulate financial strength among regions. 
This has exacerbated inequalities between regions in 
terms of financial and economic development. In addi- 
tion, as the majority of local financial administrations 
have also implemented financial contracts lev: by level, 
contracts not only firmly fixed the income of the central 
financial administration, but also dispersed local finan- 
cial strengths, resulting in a highly dispersed situation for 
national financial resources. In terms of the utilization of 
state financial resources, the central administration has 
lost the capacity to gather and distribute financial 
resources. This has exacerbated the difficulties of the 


FBIS-CHI-94-103 
27 May 1994 


financial administration and has resulted in state finan- 
cial deficits continuing to climb year after year. It has 
also continually exacerbated inflationary pressures. 
Second, the tendency towards local protectionism has 
been strengthened, the deployment of resources has been 
harmfully affected, and the normal development of the 
market has been disturbed. The financial contract 
system adopted the method of dividing the revenue and 
expenditure ranges on the basis of the jurisdictional 
relationships of enterprises and institutional units, and 
enterprises’ income situations were tightly tied to the 
financial interests of the localities. Thus, localities, pro- 
ceeding from the desire to increase financial income, 
inevitably deploy the resources they control in a way 
which is in accord with the target of maximizing their 
own financial income. In addition, in order to protect 
their own local resources and enterprise sales interests, 
they may implement market blockades, and so on. This 
not only results in duplicate construction and structural 
convergence between regions, but also greatly obstructs 
the formation of a unified domestic market. Third, as the 
income of enterprises and the financial revenue situation 
of localities are bound together excessively tightly, this 
results in excessive interference by localities in enter- 
prise operations. This is not advantageous to the reform 
of separating government and enterprise functions and 
obstructs the transformation of enterprise mechanisms. 
After replacing the contract system with the revenue- 
sharing system, some of these problems will be com- 
pletely eliminated, while some others, while not being 
completely solved, will be greatly alleviated: 1) The 
phenomenon of separate market regimes will be greatly 
reduced, and the formation of a unified, open national 
market will be promoted. This is because an important 
element of the revenue-sharing system is the division of 
fiscal revenue ranges between the central authorities and 
the localities based on tax types, and the division of 
existing tax types into three types—central taxes, local 
taxes and taxes shared by the central and local authori- 
ties. In respect to shared taxes, the practice has been 
adopted whereby, after the central authorities levy the 
tax, a part of it is refunded to the local authorities. 


In this way, while some remnants of jurisdictional divi- 
sions are maintained in terms of enterprise income tax, 
in overall terms, the old situation of a division of income 
based on administrative jurisdictional relationships has 
been broken down and the local authorities, regardless of 
whether enterprises are under their jurisdiction, still 
obtain their due revenue from the central authorities. 
Thus, engaging in duplicate construction and economic 
blockades by regions, which are intended to safeguard 
the interests of enterprises under their jurisdiction, will 
lose any real significance. 2) The overall financial situa- 
tion will be greatly enlivened, the enthusiasm of both the 
central and the local authorities will be stimulated, and 
the financial administration’s regulatory and control 
capacity will be revived and strengthened. Another 
aspect of the revenue-sharing system is to strengthen the 
capacity of the central financial administration to 
arrange revenue, and it expands the volume and range of 


NATIONAL AFFAIRS 43 


expenditure which the central financial administration 
shifts to ihe local financial administrations. Also, diverse 
but standardized expenditure transfer forms can be 
adopted. This is beneficial to further expanding the scale 
of financial resources which the local financial adminis- 
trations has autonomy in deciding how to expend, and to 
expanding the autonomy of local financial administra- 
tions. In addition, it creates a dual financial source 
balancing mechanism whereby local financial adminis- 
trations rely on both their own financial resources and 
those financial resources refunded by the central finan- 
cial administration. This the old irrational, 
passive situation where the central financial administra- 
tion relied on funds supplied by the local financial 
administrations in order to balance revenue and expen- 
diture. This raises the central financial administration's 
capacity to suppo't local financia! administrations, and 
strengthens the r-gulatory and control function of the 
central financial :dministration. In particular, the diver- 
sity and the stan lardization of the forms by which the 
central authorities retund income to the local arthorities 
raises even higher the regulatory and control capacity 
which the central financial administration can exercise 
over the use of local financial resources. 


2. Reforming the tax system. After implementing a 
unified income tax for domestically funded enterprises 
and establishing a unified circulation tax system which 
has a value-added tax as its main part, there will be a fair 
tax burden. This will be beneficial to equal competition 
between enterprises and will strengthen the regulatory 
role of taxation. This is because: 1) Implementing a 
unified income tax system for domestically funded 
enterprises will eliminate the existing unfair phenom- 
enon brought about by the existing enterprise income tax 
system, whereby different economic components have 
different tax burdens. In particular, this will allow state- 
owned enterprises to compete equally, in terms of their 
tax burdens, with other nonstate-owned enterprises. 2) 
The implementation of a circulation tax system, which 
has a value-added tax for general regulation and a 
consumption tax for supplementary regulation, will 
strengthen the flexibility of the regulatory role of circu- 
lation tax, strengthen the focus, and will of course 
strengthen the regulatory role of the circulation tax. 


3. In the distribution relationship between the state and 
state-owned enterprises, we will realize reform by which 
income tax is levied in accordance with the law and no 
longer practice the method of using contracts, whereby 
income tax and profits are tied together. This will ensure 
that profits and taxes are streamed separately. This will 
provide conditions, on the distribution level, for the 
comprehensive separation of government and enterprise 
functions and will also overcome defects produced by 
the contract system, where the regulatory role of taxation 
was strangled, and allow the revival of this regulatory 
role. In addition, on the basis of abolishing state-owned 
enterprises’ profit regulatory tax and ending the levying 
of energy and communications key project construction 
fund charges and budget regulation fund charges, reform 


44 NATIONAL AFFAIRS 


by which the repayment of credit prior to taxation is 
changed into repayment of credit from retained profits 
after payment of tax will eliminate the defect where 
enterprises, in their credit funds use, just ate from the big 
pot constituted by the central financial administration. 
This will allow the strengthening of enterprise budgets 
and will be beneficial to the formation of self-restraint 
mechanisms in enterprises. Thus, banks will see a con- 
sequent increase in credit risks and this will promote the 
development of specialized banks in the direction of 
enterprise operations. 

In brief, as long as we firmly grasp the spiritual essence of 
these fiscal and tax reforms, firmly and unwaveringly 
implement and carry through these reform measures, 
and achieve the transition from the old to the new tax 
system, the basic results anticipated for the reforms will 
certainly be realized. 


3. Problems Which May Occur and Countermeasures 


The results which have been achieved in the three major 
fiscal and tax reform measures implemented in 1994 can 
be affirmed. However, it must also be recognized that 
due to subjective and objective reasons, in the imple- 
mentation of these measures, it is inevitable that prob- 
lems of one sort or another will arise. Seen from the 
existing economic structure and the interests structure in 
our country, in the implementation of the three major 
reforms, if we do not do things well the following 
problems will occur: 


1. The three major reform measures will involve the 
readjustment of interests in many respects. It is impos- 
sible that such reforms will not touch on the vested 
interests of every side. Thus, in the implementation of 
the various measures, it is inevitable that various obsta- 
cles will be encountered. 


In order to carry out the reforms smoothly, we must, in 
a way which seeks truth from facts at the same time as 
upholding the goals and principles of reform, do all that 
is possible to take into consideration the vested interests 
of all sides to dissolve these obstacles. Actually, during 
these reforms, the central authorities have already given 
full attention to this point. In respect to the revenue- 
sharing system, the central authorities have, in setting 
base figures, in the division of tax types, and in setting 
revenue distribution proportions, given very great con- 
sideration to the localities. In terms of tax system 
reform, not only have they upheld the principle of 
stressing mechanism transformation and not generally 
increasing the tax burden of enterprises, but they have 
also adopted various measures aimed at reducing the tax 
burden of enterprises. At the same time as simplifying 
and merging enterprise income tax rates and reducing 
nominal tax rates, the central authorities have also 
abolished the state enterprise profit regulatory tax and 
have abolished energy and communications key project 
construction fund and budgetary regulatory fund 
charges, and so on. In addition, with respect to enter- 
prises with low profit levels, the authorities have shown 


FBIS-CHI-94-103 
27 May 1994 


concern by setting special transitional income tax rates, 
and for two years, these enterprises will be subject to the 
temporary income tax rates of 27 percent or 18 percent. 
In terms ui the reform of the profit distribution relation- 
ship between the state and state enterprises, at the same 
time as changing the system of credit repayment from 
pre-tax to post-tax repayment, the central authorities 
have also adopted a series of flexible measures and 
implemented a policy of treating new and old credit 
differently. Old credit can be handied in the old way and 
the new credit can be handled in the new way. At the 
same time, a number of other measures have been 
adopted by which depreciation rates have been raised 
and long-term credit interest payments can be included 
in costs to enterprises’ capacity to repay 
loans. It should be said that, during reforms, very great 
concern has been shown for the vested interests of all 
sides. However, regardless of conditions, reform must 
involve the readjustment of vested interests, otherwise 
there would be no reform. Thus, in these reforms, which 
are aimed at transforming mechanisms, the concern for 
vested interests must be limited to the degree that such 
concerns does not harm the transformation of mecha- 
nisms. If this limit is exceeded, then there is a danger 
that reform will exist in name only. 


2. Revenue-sharing reform cannot be put into place in 
one step. In the short-term, we might see poor results, 
and if things are not done properly there is the danger 
that we may see a resurgence of the defects of the old 
system in various respects. The revenue-sharing system 
reform involves a basic transformation of the financial 
operational mechanism. A compicte, standardized reve- 
nue-sharing system model will include reforms in at least 
five aspects: 1) The scientific delineation of the scope of 
functions between the central financial administration 
and the local financial administration. 2) The division, 
on the basis of tax type, of the range of financial income 
of the central and the local financial administrations. 3) 
The appraisal and fixing, using standardized methods, of 
the expenditure needs of the local financial administra- 
tions and of the financial income they should receive. 4) 
A system where the majority of financia! resources are 
centered in the central financial administration and 
expenditures transferred to the localities. 5) Separation 
of the budgets of the central and local governments and 
the establishment of separate tax levying and manage- 
ment organs. These five elements constitute an organic 
whole. If one element is missing or if any element is not 
implemented in accordance with the standardized 
requirements, this will result in it being difficult to bring 
into play the overall effects of the revenue-sharing 
system. It may even result in a situation where, under a 
formal revenue-sharing system, various defects of the old 
system resurge. It can be seen that the spirit of the 
revenue-sharing system lies in clarifying, standardizing, 
and legislating rights, responsibilities, and interests. 
Because of the limits of current conditions, at the begin- 
ning of the reforms we must adopt flexible measures and 
extend the use of some old measures. Thus, in the 
operation of the new structure, it is inevitable that some 


FBIS-CHI-94-103 
27 May 1994 


nonstandard elements will emerge and that these will 
restrict bringing into full play the effects of the revenue- 
sharing system. This is particularly so given that admin- 
istrative reforms in our country are still in progress and 
that there still has not been any scientific and concrete 
divisions set down in terms of the respective jurisdic- 
tional ranges of the central and local governments. 
Factoral methods and standards methods suited to the 
assessing and fixing of the revenue and expenditure 
figures for local financial administrations in our country 
still await research. Thus, the revenue-sharing system 

said leben ieiemenibammanaaiaaanesiies 
which rationally divides the jurisdictions of the central 
and local financial administrations. If this is not handied 
well, there is a danger that we will see a resurgence of the 
defects of the old financial system where the rights and 
responsibilities of the central and local financial admin- 
istrations were not clear and the distribution relation- 
ships was not stable. In order to guard against this, after 
the first step of the reforms are implemented, we cannot 
halt. We must firmly grasp reforms related to the reve- 
nue-sharing system, actively create conditions, and, 
without losing the opportunity, push the revenue-sharing 
system toward its target of standardization. First, we 
must speed the pace of administrative structure reform, 
complete as swiftly as possible reform involving the 
separation of the two functions of the government, and, 
on this basis, scientifically and concretely divide the 
functional range of the central and local governments to 
provide the basis for the overall standardization of the 
revenue-sharing system. Second, we must further deepen 
reform of the tax system to provide conditions for the 
perfection of the revenue-sharing system. 


In 1994, we have implemented reforms involving a 
unified income tax for domestically funded enterprises 
and a unified circulation tax system which has a value- 
added tax as its main part. However, these reforms 
cannot overcome the defects of the existing tax system 
whereby local tax types are too few, their scale too small, 
and they cannot accord with the need to separate tax 
types under the revenue-sharing system. Thus, after the 
implementation of the new income tax and circulation 
tax systems, we should continually develop new tax 
sources and develop new tax types, particularly local tax 
types, to provide full taxation system conditions for 
accelerating the perfection of the revenue-sharing 
system. Finally, we must actively develop research on 
standards methods and factoral methods which are 
suited to our country for setting local financial adminis- 
tration revenue and expenditure figures. In the financial 
structure, the question of on what to rely on in setting 
revenue figures for local financial administrations is a 
crucial question which will determine whether the results 
of the financial structure reform will be good or bad. For 
a long time now, we have used a base figure method. 
Although this method 1s simple and easy to implement, it 
has many defects, as it is actually a method which 
accepts the status quo. Therefore, we must not ignore 
reform of the base figures, and, as quickly as possible, we 
should use standards methods and factoral methods to 


NATIONAL AFFAIRS 


& 


replace the base figure method. In addition, we must 
accelerate the pace of reforms by which central and local 


and communications key project construction fund pay- 
ments and budget regulatory fund payments. In addition 
to state-run enterprises, the tax burden of nonstate 
enterprises will also see a reduction. Even income tax for 
private enterprises will see a reduction from 35 percent 
to 33 percent. As for circulating tax reform, overall it will 
not increase the burden on enterprises. According to 
estimates based on surveys by relevant departments, the 


their rate go down. According to a preliminary survey of 
282 industrial products, 73, or 26 percent of those 
surveyed, saw an increased burden, while 209 products, 
or 74 percent, saw a decreased burden. That is to say, for 
the majority of industries and products, not only will 
they not see increased burdens as a result of the circula- 
tion tax reforms, they will actually see a reduction. As far 
as enterprises are concerned, except for those enterprises 
which manufacture a unitary product, even if some of 
the products they produce see an increase in their 
burdens, this will be offset by the reduced burden on 
other products, and the enterprise will not see an 
increase in its tax burden. Thus, seen in overall terms, 
these tax system reforms certainly will not increase the 
tax burden on enterprises and they will certainly not, as 


% NATIONAL AFFAIRS 


some people are concerned will happen, give rise to 


Obtaining, in exchange, a fair tax burden and tax mech- 
anism and conditions where enterprises are pushed 
toward equal competition in the market is both worth- 
while and necessary. We must view this phenomenon 
correctly. What needs to be given attention is that in the 
transformation from the old tax system to the new, if 
price administration is not well coordinated, it will 


; 
: 
: 
£ 
: 


prices, but use the opportunity of the tax systern reform 
to raise prices. To counter this, we 

gate relevant price policies and regulations for the tran- 
sition period and fix methods for price continuity during 
the transformation to new system. At the same time, it is 
necessary to strengthen the promulgation of the new tax 


4. After the reform by which the method of pre-tax credit 
repayment is turned into post-tax repayment is intro- 
duced, because flexible measures including old renev- 
ment arrangements for old credit and new re ls 
arrangements for new credit have been ado his 
reform measure is generally safe. However, as iar as 
those enterprises which have accumulated large liabili- 
ties Over time or are not very efficient are concerned, 
there may be some difficulties. These types of enterprises 
are not only limited in terms of their credit repayment 
capabilities and the fact they will find it difficult to 
discard their debt millstones, they will also lose their 
capacity to obtain new loans as a result. This is because, 
while these enterprises can pay off old debts using 
pre-tax profits, because their debts are huge, it will take 
a long time to clear them. Not only will they be unable to 
get new loans, even if they do, they will be unable to 
repay them. If good arrangements are not made for these 
enterprises, they will sink into operational difficulties. 
With respect to these enterprises, we should adopt more 
powerful measures to rescue them. However, we must 
differentiate between the way in which we deal with 


these enterprises, and we should not adopt uniform 
measures. For example, with respect to those enterprises 


speedily free themselves from their old debt difficulties, 
and they could be required to improve their results 
within a defined period. With respect to small and 
medium-sized state-run enterprises, we should, in the 
light of the property rights reform, resolve their prob- 
lems through contracts, leases, sales, or mergers. In sum, 
the debt problems of these enterprises can only be 
resoived through reform of enterprise mechanisms. We 
certainly cannot follow the traditional road of eating 


Shangchai—topped today’s five highest-rising stocks on 
the exchange, ranging from 4.21 percent to 7.14 percent, 
while the index of A-shares witnessed a continuous drop. 


Experts here attribute the rise of B-shares, exclusive to 
overseas holders, to the better macro-economic situation 
China witnessed from January to April. 

They pointed out that price hikes basically alleviated in 
April and the rate of foreign exchange remains stable. 
Foreign exchange reserves grow steadily and bank sav- 
ings are soaring. 


Taxation Administration's Functions Described 


OW2705091494 Beijing Central People’s Radic 
Network in Mandarin 1030 GMT 24 May 94 


[From the “National Hookup” program] 


[Text] The State Council rec. atly approved a plan sub- 
mitted by the State General Administration of Taxation 
concerning the scope of its functions, the establishment 
of a organization, and the authorized size of its per- 
sonnel. 


It was learned that, according to the plan, the major 
functions of the State General Administration of Taxa- 
tion are as follows: To participate in the formulation of 
taxation laws, taxation regulations, and rules for the 
implementation of tax regulations; to study the plans to 
improve the reform of taxation system and to carry them 


increase of financial income; te strengthen the taxation 
management; to establish and improve a tax collection 
and taxation management system which is scientifically 
standardized and based on the law governing tax collec- 
tion and taxation management; to enhance the Sevel of 
tax collection and taxation management by using 
modern means; and to strengthen the publicity of taxa- 
tion law. 


It was learned that China has initially established a 
taxation system suitable to the development of a socialist 
market economy. As a result, the work of tax collection 
and taxation has gradually become situated 
on the right track and the building of the contingent of 
taxation personnel has been further strengthened. 


Article Views Management of Private Businesses 


1K2705035694 Beijing JINGJI GUANLI in Chinese No 
4, 5 Apr 94 pp 31, 32 


[Article by Zhu Shengquan (2612 3932 0355), edited by 
Yang Jian-xiu (2799 3005 0208): “Strengthen Macroeco- 
nomic Management of Individually Run and Private 
Businesses] 

[Text] Today, now that individually run and private 
businesses have developed to a certain stage, how are we 
to improve and strengthen government macroeconomic 
management over them so that they are gradually raised 
in scale, raised in grade, and raised in level, and they 
gradually develop to become productive businesses uti- 
lizing science and technology and oriented to the out- 
side. This is a question worthy of serious exploration. 


The 14th party congress decided a policy requiring that 
we encourage and develop individually run and private 
businesses and relax restrictions in terms of their oper- 
ational scale, operational range, development propor- 
tion, and business targets so that the development of 
individually run and private businesses is further accel- 
erated and they can play a positive role in terms of 
raising overall economic volumes, increasing fiscal rev- 
enue, and increasing employment channels. The 
problem at present is that many localities have not yet 
formed truly effective management methods, and this 
situation is not conducive to the healthy development of 
individually run and private businesses. 


1. Seen from the angle of management targets, many 
localities implement the policy of “ruling through inac- 
tion.” They generally do not include individually run 
and private businesses in regional development plans, 
and even if they are included, it is impossible to truly 
implement the plans. What is the reason for this? First, 


NATIONAL AFFAIRS 47 


managed they will be strangled.” Fourth, they are unable 


require them to pay levies. Thus, some individual oper- 
ators and private entrepreneurs have closed down their 
businesses, some pay management fees to “foster” 
licenses and await opportunities, some attach themselves 
to organs and schools and don the “tag” of “township 
and small town enterprises”, “school-run enterprises”, 
“welfare enterprises” of “organic entities,” and so on. 
Some simply operate without licenses. 


3. Seen from management measures, it is still the case 
that mainly administrative management 1s used at 
present. A set of macroeconomic legal and economic 
management methods to oversee production and opera- 
tion activities, exercise product quality supervision, and 
supervise the levying of taxation in respect of individu- 
ally run and private enterprises has still not been formed. 
Thus, first, overall legal guarantees are absent. So far, 
there are only the “Provisional Regulations on Private 
Enterprises” and there is a lack of legal restraints on 
actions which violate the legitimate rights and interests 
of individually run and private enterprises or which 
interfere with their normal operational activities. Even if 
such activities are detected, there is no law with which to 
punish them. Individual merchants and operators of 
private businesses generally feel a lack of security, and 
they are unwilling to expand production. Second, a set of 
measures for the comprehensive economic management 


4. Seen from the contents of management, three major 
problems exist: First, there is a tendency to stress “relax- 
ation” and to “look lightly” on management. This is 


ij 
, 
i 

i 


i 
in 


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b 
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ff 
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number of elements which need to be noted. First, the 
phenomenon of uneven development and particularly 
ioe ; 


number of individually run and private enterprises 


nesses achieve an increase in scalv, increase in grade, and 
increase in level. At the present stage, we should place 
stress on grasping the following aspects: 


ally run and private business will not shake the prime 
position of the public ownership economy. The second is 
the relationship between developing the public owner- 
ship economy and developing individually run and pn- 
vate businesses. Seen from the short term, after individ- 
ually run and private businesses see development, it is 
inevitable that they will have a certain effect on the 
public ownership economy. However, seen from the long 
term, they will also force state-owned enterprises to 
change their operational modes and operational mecha- 
nisms and will result in them developing and achieving a 
higher level. Developing the public ownership economy 
cannot be realized through restricting the individually 
run and private economy. In the same way, developing 
individually run and private businesses cannot be real- 
ized by weakening the public-ownership economy. We 
must rely on both these components so that through 
competition, they will engage in mutual study and 
mutual borrowing, the strengths of one will make up for 
the weaknesses of the other, and they will see joint 
development. Third is the relationship between the con- 
tribution to socrety made by individually run and private 
businesses and the illegal activities which occur in their 
operations. Seen overall, the vast majority of the indi- 
vidual and private entreprencuis are good, and they 
become wealthy through hard work and operating within 
the law. Those who engage in illegal activities constitute 


FBIS-CHI-94-103 
27 May 1994 


only a small minority. In order to promote the develop- 
ment of individually run and private businesses, govern- 
ments at all levels should make overall plans and provide 
support in various respects. 


2. Improving the external environment and creating fine 
conditions for production operations. 


1. The public opinion environment. It *s necessary 
through newspapers, radio and television broadcasts to 
make widely known the important role which individu- 
ally run and private businesses play in social develop- 
ment. Wide publicity should be given to advanced model 
persons in such businesses so as to raise their social 
status and allow those operator: who act in accordance 
with the law to engage in their production operations 
boldly and self-assuredly. 


2. The iegal environment. It is necessary to further 
perfect laws and regulations to clearly stipulate that the 
legitimate rights and interests of individually run and 
private businesses are protected and to specify responsi- 
bilities when the law is ~iolated. Local ruffians and 
hoodlums who seize the assets of individually run and 
private businesses and interfere in normal production 
operations must be punished in accordance with the law. 


3. The policy environment. At present, regions differ in 
the degree of relaxation of their policies in respect of 
individually run and private businesses. The coastal 
regions are more relaxed than the hinterland regions and 
the developed regions are more relaxed than the unde- 


veloped regions. 


In future, we must continue to relax restrictions. First, 
we need to relax the operational range, and we should 
allow individually run and private businesses to operate 
in all industries and produce all products not restricted 
by state policies. Second, we should relax development 
proportions, and in accordance with the level of devel- 
opment of the productive forces in particular areas, such 
businesses should be allowed to develop as far as they 
can. There should not be any artificial development 
proportions imposed. Third, restraints on scale should 
be relaxed, and individually run and private businesses 
should be encouraged to develop trans-regional and 
trans-industry operations. They should also be allowed 
to contract, lease, merge with, or purchase state-owned 
enterprises and to run joint-fund cooperative enter- 
prises. Fourth, restraints in terms of credit and tax 
reductions should be relaxed, and the tax burden of 
individually run and private enterprises should be 
brought closer to that of publicly owned enterprises. It 
might also be possible, in accordance with state indus- 
trial policies, to allow them to enjoy various tax reduc- 
tions or tax remissions like state and collective enter- 
prises. Banks should include individually run and 
private enterprises in their credit budgets and, if the 
operations of enterprises are in accord with state indus- 
trial policies and have good results, they should be given 
credit support. 


NATIONAL AFFAIRS 49 


4. The market environment. In accordance with the 
principle that the one who invests is the one who obtains 
the benefits, we should continue to encourage social 
investment in developing various types of markets, 
expand the range of these markets, and link them up with 
the national and international markets. It is particularly 
important to develop various types of production factor 
markets. 


3. Strengthening management and education so that 
enterprises raise their own quality. First, it is necessary 
to strengthen the concept of law and strengthen the 
concept of business ethics so that these businesses 
operate in accordance with the law. Illegal activities by 
individually run and private enterprises not only harm 
society, but are also disadvantageous to the healthy 
development of such enterprises. In response, we should, 
on the one hand, rely on the government to strengthen 
education, and, on the other hand, rely on the law to 
seriously investigate and punish violations. In respect of 
the tax issue, in cases where tax exemption is appro- 
priate, enterprise should be exempted from tax, while in 
cases where tax levying is appropriate, tax should be 
levied. We cannot blur the distinction between these two 
options. Second, we need to strengthen the market 
economy concept. Through mass organizations such as 
industrial and commercial federations, individual oper- 
ators’ associations, private business operators’ associa- 
tions, and so on, education and guidance can be strength- 
ened, and these businesses can be assisted to speedily 
establish market economy concepts which are in accord 
with modern market competition. Third is raising the 
quality of management. It is necessary to strengthen 
training in management knowledge for individual oper- 
ators and private entrepreneurs. They should be encour- 
aged to join some business associations and societies to 
help them raise their management level. Fourth is raising 
the quality of science, technology, and culture. Relevant 
departments, while carrying out various types of cultural 
training, must draw in and encourage the participation 
of individual industrial and commercial operators and 
private entrepreneurs. 


4. Strengthening coordinated services so that these enter- 
prises develop in an orientation of productive, externally 
oriented enterprises which make full use of science and 
technology. First, it is necessary to sort out and reorga- 
nize individually run and private businesses. When 
individual industrial and commercial operators have 
achieved a certain scale and have the conditions for 
registration and issuance of a private enterprise license, 
they should be encouraged to change their registration. 
In respect of those who operate without a license, it is 
necessary to actively do good work to make it convenient 
for them to obtain a license. If they do not then seek a 
license, they should be firmly outlawed. In respect of 
those private enterprises which are still attached to 
collective economy units, it is necessary to clearly 
explain policies and separate them from the collective 
economy in accordance with the law so that they can 
travel a healthy road of development. Second, it is 


50 NATIONAL AFFAIRS 


necessary to optimize structures. This will mainly 
involve information guidance and industrial policy guid- 
ance to help them effect changes in four respects: First, 
they should make the change to production enterprises, 
and, particularly, to enterprises engaged in deep-level 
processing of agricultural and sideline products and the 
manufacture of farming tools and equipment and other 
industries which serve agriculture so that they can travel 
a road where agriculture, industry, and trade are com- 
bined. Second, they must change towards becoming 
enterprises which make full use of science and tech- 
nology. That is, they must adopt modern advanced 
science and technology, increase the scientific and tech- 
nological content of products, raise the product grade, 
and realize prosperity through science and technology. 
Relevant government departments must actively 
develop technological consultancy and technological 
guidance. Third, they must change into enterprises 
which achieve economies of scale. On the one hand, they 
can be guided, on the basis of voluntary participation, to 
organize cooperative organizations, while on the other 
hand they can be guided to use their profits to expand 
reproduction and expand the scale of production. Rele- 
vant government departments must actively participate 
in feasibility studies and only if projects are in accord 
with state industrial policies should they be given sup- 
port. Fourth, they should change into externally oriented 
enterprises. Relevant government departments must do 
well as “navigators” and support individually run and 
private enterprises to enter international markets. 
Departments should help enterprises to link up with 
foreign sales avenues, act as a bridge in drawing in 
foreign funds, and do well in consultancy work, such as 
investigating the funds situation of foreign businesses 
and providing information on the economic situation 
abroad. Those private enterprises with the conditions 
should be encouraged to set up companies abroad and 
they should be given autonomy in foreign trade. 


Urban Residents Enjoy Better Housing Conditions 


OW 2605 125894 Beijing XINHUA in English 0823 
GMT 26 May 94 


[Text] Beijing, May 26 (XINHUA)—China has seen the 
fastest growth in the world in terms of housing construc- 
tion in the last 15 years, according to the latest statistics 
compiled by a U.N. organization. 


The average per capita living space for urban Chinese 
residents has risen to 7.4 sq.m. at present, a sharp 
contrast to the mere 3.6 sq.m. fifieen years ago. 


According to Deputy-Minister of Construction Tan 
Qinglian, urban Chinese residents are now enjoying 
better housing conditions, with larger houses, better 
architectural designs and more beautiful residential 
environments. 


The senior official said that residential housing has been 
given top priority in China as a result of the govern- 
ment’s macro control over the once overheated real 
estate industry. According to him, the construction of 


FBIS-CHI-94-103 
27 May 1994 


luxury hotels, apartments and villas has been strictly 
controlled since May of last year. 


The deputy-minister expects record growth this year in 
the construction of total floor space and the average per 
capita living space. 

To boost the construction of residential housing, the 
government has granted preferential treatment to 
housing construction companies in terms of land alloca- 
tion and reduction or exemption of taxes as well as loans 
and materials supply. 


According to the government housing plan, the average 
per capita living space for urban Chinese residents 
should reach 8 sq.m. by the turn of the century. To meet 
the target, China has to build 150 million to 180 million 
sq.m. in floor space every year before the end of the 
century. 

The leading official said that the housing strain is still 
serious in China. Taking the country as a whole, more 
than 4 million urban households still live in houses with 
a floor space of less than 4 sq.m. per person. 


In addition, over 30 million sq.m. of old and dilapidated 
houses need to be renovated. 


Beijing To Speed Up Electric Power Projects 
OW2605 174494 Beijing XINHUA in English 1115 
GMT 26 May 94 


[Text] Beijing, May 26 (XINHUA)—Build a bridge so 
that you can cross a river, build electric power so that 
you can no longer be poor—it is a saying being passed on 
throughout China from village to village. 


To the farmers living in mountainous regions and 
wishing to have enough to eat and wear, this will not be 
just a dream. The Chinese Government has vowed to 
redouble efforts to send electric light to every county, to 
95 percent of rural households by 2000. 


“China will make preferential policies concerning loans, 
taxation and revenues in this regard to speed up electric 
power projects to aid the poor in the vast countryside,” 
said a government official. 


Meanwhile, China will implement a “source plan” to 
make comprehensive use of water sources in moun- 
tainous areas, for meeting the needs of people and 
livestock, for irrigation and for generation of electricity. 


According to statistics, 97 percent of the country’s towns 
and 89 percent of its rural households had been electri- 
fied by 1993. Per capita consumption of electricity in the 
countryside rose to 2/5 kwh from less than 65 kwh in 
1978, bringing the gross figure to 249 billion kwh, or 35 
percent of the country's total consumption. 


However, 28 counties and some 120 million of the rural 
population in China remain without electricity, mainly 
in eight areas such as eastern Inner Mongolia, Guizhong 


FBIS-CHI-94-103 
27 May 1994 


and the Three Gorges. Among them, some eight million 
people even don’t have enough to eat and wear. 


It has become obvious that the construction of hydro- 
electric power facilities and the electrification of China’s 
rural areas have become priorities for farmers to over- 
come poverty. 


China announced the building of facilities to electrify a 
batch of counties in the early 1980s. By 1989, altogether 
109 counties had met the requirements for rudimentary 
electrification. The second batch of 200 counties is now 


constructing power grids. 


As a result, more than 33 million rural people have 
benefited from the projects in getting electricity and 
drinking water. Moreover, government revenues of those 
counties doubled within the five years of the electrifica- 
tion campaign, and redoubled in the ensuing three years. 


The ongoing National Electrification Work Conference 
has set the target of building a total of 1,000 electrified 
counties across the country by the turn of this century. 


However, the shortage of capital, among others, is seri- 
ously threatening the realization of this objective. 
“Despite increased investments in the construction of 
electric power for rural areas,” explained an official, 
“The gap between supply and demand expands.” 


Wang Shucheng, vice-minister of power industry, said 
that about 30 billion yuan is needed simply to get electric 
power through to the areas and households without 
electricity—averaging more than four billion yuan each 
year in the next seven years. 


The State Planning Commission, the State Economic 
and Trade Commission and the Ministry of Power 


Industry proposed phased arrangements of construction 
projects after careful planning and selection. 


They suggested the expansion of big grids be the main 
trend for covering the rural areas with electric power and 
reasonable increases in investment be made to innovate 
rural power grids and small hydroelectric and coal-fired 
power stations and to set up demonstration projects in 
using new sources of energy. 


In addition, they said, more channels should be opened 
for the flow of capital in this direction and joint power 
construction should be encouraged. 


XINHUA Views Future of Auto Industry 


OW2705091894 Beijing XINHUA in English 0854 
GMT 27 May 94 


[Text] Beijing, May 27 (XINHUA)}—China encourages 
its automobile companies to establish transdepartmental 


and transregional giants by merger, annexation or setting 
up stock companies. 


According to a new policy, four or five auto giants 
competitive in the world market will be set up by the end 


NATIONAL AFFAIRS 51 


of this century. The output of these giants is expected to 
produce 70 percent of China’s total. 


During the past 40 years China has put about 34 billion 
yuan into the auto industry. 


Statistics show that China’s annual output capacity of 
1.3 million automobiles is distributed across more than 
120 plants. With low-quality products and high produc- 
tion costs, China’s auto industry can meet neither the 
demand of domestic market nor the challenge of inter- 
national competition. 

According to experts, when the annual output increases 
from 1,000 to 50,000 at an auto company, the produc- 
tion costs will decreases by 40 percent; when output 
increases to 10,000, costs decrease by another 15 per- 
cent; when output is 20,000, costs decrease by a further 
10 percent; and when the annual output hits one million, 
the production costs will decrease by about another 10 
percent. 


Most of China’s auto companies do not reach the min- 
imum effective annual output scale of 60,000 to 100,000, 
except for eight major enterprises. 


According to the policy, China will not approve any new 
projects for assembling vehicles in the coming few years. 
Attention will be paid to lowering production costs and 
to extending production scale in the existing companies. 


China is expected to have 20 million automobiles run- 
ning by 2000, of which 4.5 million will be sedan cars. 
This indicates that China’s auto output during this 
period will hit three million, including 1.5 million sedan 
cars. 


To reach the target, the only way out for China’s auto 
industry is mass production, experts said. 


To cope with the competition in the domestic and 
international markets, some large auto companies in 
China have begun to look for partners for co-operation 
or targets for annexation nationwide in recent years. 


Auto industries in the developed countries such as the 


U.S. and Japan have experienced mergers and annex- 
ation in the course of their development. China’s auto 
industry will do the same in order to become a pillar 
industry, the experts said. 


Foreign Capital Used To Develop Power Industry 
11K2505090194 Hong Kong ZHONGGUO TONGXUN 
SHE in Chinese 1030 GMT 29 Apr 94 


[“Special article” by reporter Lin Ying (2651 7751): 
“China Uses Foreign Funds To Quicken Development 
of Power Industry”) 


[Text] Hong Kong, 29 Apr (ZHONGGUO TONGXUN 
SHE)—With the high-speed development of the 
economy, the supply of energy in mainland China has 
become more and more strained. In particular, the 


52 NATIONAL AFFAIRS 


supply of electric power is 20 percent short of demand. If 
the national economy continues to grow at an annual 
rate of 8 to 9 percent, the country will need 300 million 
kw of power generating facilities by the end of this 
century. To basically meet the need, beginning this year, 
new generating capacity of 15 million kw will have to be 
added each year. Therefore, China is orienting a policy 
of inviting foreign investment in the energy industry and 
hopes that $30 billion to $40 billion of foreign funds will 
be invested in the energy industry in order to make up 
for the power shortage. 


In fact, the Daya Bay Nuclear Power Plant, which was 
built a number of years ago, served as a trial for intro- 
ducing foreign funds and technology. Hong Kong's 
China Light and Power and Electricite de France were 
invited to participate in the construction of the Daya 
Bay Nuclear Power Plant in Guangdong. The pressur- 
ized water reactor was supplied by a French company. 
After that, Shandong also cooperated with the French 
power company by jointly investing billions of U.S. 
dollars to build a number of thermal power plants with a 
generating capacity of 22 million kw. At the same time, 
Electricite de France will help Shandong modernize its 
existing power plants and increase generating capacity 
by 36 million kw. 


Encouraged by China's favorable policies, some Amer- 
ican companies have also invested in China’s power 
industry in recent years. For example, Saide [sai de 6357 
1795] Electric Company built the largest power plant in 
Hainan Province in Sanya City. Investment in the first 
phase of the project amounted to $1 billion, and the 
generating capacity will reach 1.2 million kw. Gross 
investment in the three phases of the project will reach 
$4 billion, and the total generating capacity will reach 
4.8 million kw. Another American company, Kangdena 
[kang de na 1660 1795), cooperated with Guangdong 
Environmental Engineering Company to invest $50 mil- 
lion in Nanao County to build a wind-driven power 
plant, where generating capacity will reach 200,000 kw. 


Before and after this, Siemens of Germany cooperated 
with the mainland’s Dongfang Electrical Machinery to 
invest $100 million in building a 600,000-kw turbine 
generator assembly plant to meet the need for generating 
equipment in various large power plants. In addition, 
Babcock of Germany provided two 300,000-kw gener- 
ator sets to Tianjin’s Yangliuging Power Plant, and the 
total value of the equipment was $140 million. 


Hong Kong's Hopewell Company recently invested in 
two thermal power plants in Guangdong. Another large 
Hong Kong corporation, Cheung Kong Enterprises, has 
also invested $257 million to build a 570,000-kw power 
plant in Guangdong’s Nanhai City. Together with 
Hutchison Whampoa, Cheung Kong Enterprises also 
invested $500 million to build the Zhuhai Power Plant in 
Guangdong. The first phase of the project will install 
four 660,000-kw generator sets. At the same time, 
Cheung Kong Enterprises invested $70 million to build a 
100,000-kw thermal power plant in Tianjin, Hopewell 


FBIS-CHI-94-103 
27 May 1994 


invested $1 billion to build two 600,000 generator sets in 
Tianjin’s Beitang. In addition, a number of Hong Kong 
companies formed an investment consortium to build a 
large power plant in Fujian’s Meizhou Bay. Investment 
in the first and second phase of the project will reach 
$400 million for the installment of 1.6 million-kw gen- 
erating equipment. Hong Kong’s Pokai Group invested 
$50 million to build a 100,000-kw thermal power plant 
in Longyan in Western Fujian. Hong Kong's Onyin 
Enterprising invested $53 million to build a 100,000-kw 
power plant in Zunhua City in Hebei Province. 


It is learned that some Hong Kong companies, such as 
Asian Power, China Light and Power, New World Devel- 
opment, and Wingsan have recently also contacted rele- 
vant departments on the mainland to launch invest- 
ments projects in the power industry. At the same time, 
ABB of Europe, General Electric of the United States, 
Nishiya, Hitachi and Toshiba of Japan, (Aoyi amd 
Fuyite) [3421 0181 0126 0181 3676] of Germany, and 
General Electric of Canada have also successively sought 
cooperation opportunities with China in developing the 
power industry. 

In addition, Fujian, Jiangsu, Liaoning, and Hainan 
Provinces, which are planning to construct nuclear 
power plants, are trying to invite foreign investment and 
introduce foreign technological cooperation in devel- 
oping the nuclear power industry. 


Foreign Investment in Agriculture ‘Booming’ 
OW 2505131794 Beijing XINHUA in English 1014 
GMT 25 May 94 


[Text] Nanjing, May 25 (XINHUA)}—To Mr. Tang 
Liuzhao, manager of Changzhou Natural Pigment Com- 
pany, Lid. in Jiangsu Province, his cooperation with 
foreign investors means that he and his fellow coun- 
trymen can step onto the world economic stage. 


The Chinese agricultural sector used to export its prod- 
ucts through the National Foreign Trade Corporation, 
but now the newly founded joint ventures have their own 
right and ability to trade on the international market. 


Mr. Tang has traveled overseas several times and has 
had direct talks with foreign traders. For him, the price 
and demand for natural pigments around the world is 
well in his mind. 


With China's opening policy, foreign-funded enterprises 
in agriculture are booming, which helps China's agricul- 
ture to catch up with international standards. 


The development of China's socialist market economy 
has brought China's agricultural products face to face 
with severe competition both on the domestic and for- 
eign markets. 


The Chang Jiang River delta is a great grain producing 
area in China. Jiangsu Province is just located in this 
area. 


FBIS-CHI-94-103 
27 May 1994 


The province has made great efforts to introduce foreign 
funds to develop joint venture agricultural enterprises. 
Statistics up to the end of last year showed there were 
600 such enterprises in the province, and the number 
was rising in the first quarter of this year. 

The characteristics distinguishing the development of 
Jiangsu’s foreign-funded agricultural enterprises are: 
first, joint ventures’ production has changed from agri- 
cultural product processing to both planting and raising, 
and service; second, cooperation has broadened from 
investors in Hong Kong and Taiwan to include those 
from Japan, the U.S., Australia and Europe; and third, 
the introduction of high-tech programs has increased, 
and the amount of investment become larger. 


The development of Jiangsu’s joint venture agricultural 
enterprises shows the prospects of China's agricultural 
The new type of enterprises engage not only in producing 
and processing, but also in domestic and foreign trade, 
which means a break from the past in which producing 
and selling were separate. 


A convincing example is the development of a joint eel 
industry company in Dantu County of the province. The 
company used to be an eel raising pool. In 1988, it used 
5 million dollars to build a 280,000-sq-m indoor and 
3,000-mu (200,000-sq-m) outdoor eel raising pool. In the 
meantime, it set up an eel feed company, an eel roasting 
factory and a trade company jointly with Japanese, 
Shanghai and Guangdong companies. In such steps, it 
formed an enterprise system from raw materials to 
processing to sales. Now the company has fixed assets of 
125 million yuan. 


The joint venture agricultural enterprises are closely 
connected with thousands of rural households. 


A food company in the port city of Lianyungang is such 
an example. It is a vegetable processing plant which has 
introduced 400 kinds of improved varieties of vegetable 
seeds. After testing, it organized farmers to plant these 
vegetables and offered seeds and technical services, with 
the farmers later selling the vegetables to the company 
according to contract. Now, the company exports about 
80 million tons of vegetables annually. 


NATIONAL AFFAIRS 53 


The introduction of improved crop seeds and advanced 
agricultural techniques from overseas has helped local 
farmers greatly in improving agriculture production and 
processing in order to compete on international market. 


Rare Earth Used To Regulate Forestry Growth 


OW2705 110094 Beijing XINHUA in English 1045 
GMT 27 May 94 


[Text] Beijing, May 27 (XINHUA)—China has suc- 
ceeded in applying rare earth to over 800,000 ha of 
forests, a world record, according to an official from the 
Ministry of Forestry. 


Rare earth elements are a new type of growth regulators. 
By using scientifically-made fertilizers mixed with rare 
earth elements to dress seeds, dip roots or spray leaves, 
the growth of trees is promoted. 


China started to use rare earth in agriculture and forestry 
in the 1980s, the earliest in the world. In 1992 the 
technology was popularized and applied to over 30 
strains of trees, including walnut, date, pear, Chinese 
chestnut and Chinese hawthorn as well as grape vines. 


Research results show that the output of a fruit tree 
cultivated with fertilizers containing rare earth elements 
increased by 10 percent to 40 percent. Besides, the fruit 
contains more sugar, Vitamin C and other nutritious 
elements. The 50 pilot counties in Beijing municipality 
and the Provinces of Hebei, Shanxi, Liaoning, 

and Henan invested about one million yuan (about 
115,000 U.S. dollars) in the application of rare earth to 
fruit production, and they to increase their 
output of fruit by a total of 50 million kg, worth 100 
million yuan. 

Scientists also found that by applying rare earth, pine 
seeds will germinate earlier and pine trees will grow more 
quickly. Besides, by spraying sare earth elements on 
them, deciduous trees in north China remain green 
longer in the autumn. 


In recent years the ministry of forestry, and provincial 
and city departments of forestry have taken various 
measures to popularize the technology of applying rare 
earth elements, including holding training classes, lec- 
tures, exhibitions and on-the-spot teaching. 


84 REGIONAL AFFAIRS 


East Region 


Shandong Secretary Inspects Qihe County 
SK2505 105494 Jinan Shandong People’s Radio 
Network in Mandarin 2300 GMT 24 May 94 


[Text] The party and government leading comrades at 
various levels should firmly remember the purpose of the 
party, strengthen the sense of the masses, be concerned 
with the woe and weal of the masses, always be con- 
cerned with the well-being of the masses, help the masses 
solve their practical problems in production and liveli- 
hood, accelerate the economic development of the less 
developed areas, and help them turn poverty into wealth 
as soon as possible and change their appearances. This 
was what Jiang Chunyun, secretary of the provincial 
party committee, prominently stressed during his inves- 
tigation and study activities in Qihe on 23 May. 


Jiang Chunyun has regarded Qihe as an area that he 
keeps in contact with while dealing with his work. Over 
the past year, he has established profound ties with the 
local people there. 


On the morning of 23 May, Jiang Chunyun went to 
(Dayang) Village of (Xiaozhou) Township. He succes- 
sively visited the homes of Villagers (Yang Ailin) and 
(Yang Meilin) and the vegetable growing areas in (Day- 
ang) Village. He asked them about their vegetable 
planting and marketing situation as well as their income. 
He suggested that they should achieve not only produc- 
tion but also marketing. 


Jiang Chunyun also visited the fine wheat seed culti- 
vating base in (Dayang) village to understand the wheat 
and cotton growing situation. 


He said: Cotton is a major advantage of the northern and 
western areas of Shandong Province as well as a pillar of 
the rural economy. So, we should exert great efforts to 
grasp cotton production. After that, he went to the 
construction site of the on-going (Huajiao) road; called 
on the personnel who were engaging themselves in the 
construction work, including the cadres of the provincial 
agricultural commission, the provincial personnel affairs 
department, the provincial radio and television depart- 
ment, and the provincial (?export) company who take on 
jobs in Qihe; and also wielded a shovel to join the labor. 


He earnestly said to these cadres: Promoting a coordi- 
nate development of the eastern and western parts of the 
province and seeking common wealth is a major task 
that the province should make efforts to fulfill. Helping 
the people in less developed areas turn poverty into 
wealth as soon as possible is an unshirkable duty of the 
party cadres and the people's public servants. So, we 
should firmly foster the purpose of serving the people, 
have a profound feeling to do more concrete deeds for 
the people, and make contributions to rejuvenating the 
economy in these areas and bringing about happiness to 
the people there. 


FBIS-CHI-94-103 
27 May 1994 


After hearing the reports made by the leaders of Dezhou 
Prefecture and Qihe County, Jiang Chunyun urged that 
Dezhou Prefecture and Qihe County should take the 
lead in narrowing the gaps with the eastern areas and 
turning poverty into wealth as soon as possible. 


Jiang Chunyun pointed out that to deepen reform, we 
should implement the guidelines of the third plenary 
session of the 14th party Central Committee, focus on 
setting up the socialist market economic sysiem, pro- 
mote overall reform, and make a key breakthrough. 


Jiang Chunyun stressed: We should persist in the prin- 
ciple of t2king a two-hand approach and being sure that 
both hands are tough and actually ensure to grasp both 
material and spiritual civilizations and to make achieve- 
ments in these two aspects. 


Shandong Secretary on Theory, Knowledge 
Studies 

SK2705075394 Jinan Shandong People’s Radio 
Network in Mandarin 2300 GMT 26 May 94 


[Text] On the afternoon of 25 May, Jiang Chunyun, 
secretary of the provincial party committee, delivered a 
speech at the study meeting sponsored by the central 
study group under the provincial party committee. In his 
speech he put forward that to meet the demand of 
establishing the systems of socialist market economy, we 
should further enhance studies in the theory of building 
socialism with Chinese characteristics; in the theories of 
socialist market economy; and in basic knowledge and 
the knowledge of modern science and technology. We 
should also upgrade the consciousness of implementing 
the party’s basic line and improve the capability of 
participating in and having the socialist markei economy 
well in hand. 


From 24 to 25 May, the central study group under the 
provincial party committee concentrated its efforts on 
studying the viewpoint of Comrade Deng Xiaoping with 
regard to emancipating minds and seeking truth from 
facts and the viewpoint in which the essence of socialism 
is to emancipate and develop productive forces. At the 
same time, the group, by bearing the province's reality in 
its mind, discussed the issues of shifting the business 
mechanism of enterprises; establishing modern enter- 
prise systems; and accelerating the economic develop- 
ment; in line with the ideology of Comrade Deng 
Xiaoping with regard to deepening the reform and 
broadening the opening up. The central study group also 
heard the special-topic report given by Hong Hu, vice 
minister of restructuring economy, with regard to estab- 
lishing modern enterprise systems. 


In his speech, Jiang Chunyun said: The works of Com- 
rade Deng Xiaoping and particularly the Third Volume 
of Deng Xiaoping’s Selected Works represent the great 
and important development of Marxism and the scien- 
tific system of theories. In his works, Comrade Deng 
Xiaoping gives scientific, clear, accurate, and meticulous 
expositions to the issues of what is of socialism and how 


FBIS-CHI-94-103 
27 May 1994 


to build socialism from theories to practice. These expo- 
sitions have dealt with a series of important problems 
faced by the party in leading the cause of building 
socialism. Currently, there are many issues that are 
worth being studied by us. Of these issues, a prominent 
one is to implement the resolution adopted at the 14th 
CPC Congress with regard to establishing the systems of 
socialist market economy and turning the traditional 
planned economy into a market one. Successful transfor- 
mation of the economy will enable full exposure of the 
superiority of socialism, reinforcement of national 
strength, and enrichment of the people’s wealth. 


Shandong Relays Central Directive on Enhancing 


SK2705085494 Jinan Shandong People's Radio 
Network in Mandarin 2300 GMT 26 May 94 


[Text] The second plenary session of the Sixth Shandong 
Provincial CPC Committee opened in the Nanjiao Guest 
House of Jinan on 26 May. The session is chiefly aimed 
at earnestly studying and implementing the spirit of the 
central authorities’ directives on enhancing studies; dis- 
cussing and formulating plans and measures for 
enhancing studies; and further whipping up an upsurge 
of studies throughout the province so as to upgrade in an 
overall way the quality of the broad masses of cadres and 
particularly of leading cadres in the fields of politics, 
professions, science, and culture; to upgrade their capa- 
bility in having the socialist market economy well in 
hand; and to promote the steady development of reform 
and modernizations. 


Through the discussion and examination at the plenary 
session, the participating members approved the deci- 
sion made by the Shandong Provincial CPC Committee 
on enhancing studies, which is composed of the fol- 
lowing four parts: 1) Efforis should be made to fully 
discern the importance of enhancing studies under the 
new situation. 2) Major tasks and demands for studies. 
3) Efforts should be made to carry forward the studying 
style of integrating theories with reality. 4) Efforts should 
be made to enhance the organizational leadership over 
studies. 


It was pointed out at the session that currently we are at 
the important moment of turning the planned economy 
into a socialist market one and that the new situation 
and tasks have imposed new and higher demands on us. 
Enhancing studies to generally upgrade the political 
theory of the broad masses of party members and cadres 
and their professional and technical quality represents 
an urgent political task of the entire party. All party 
members and cadres should fully discern the enhance- 
ment of studies that has an important and far-reaching 
bearing on realizing new historical changes and suiting 
the demands of new situations and tasks. We should 
consciously respond to the call put forward by Comrade 
Jiang Zemin with regard to studying, studying, and 
studying again and whip up an upsurge of studying. 
Efforts should be made to take the great improvement of 


REGIONAL AFFAIRS 55 


ideological theories and knowledge level to promote the 
great development of reform and con‘struction. 


It was stressed at the session that ir, conducting studies, 
we should firmly bear in our minds the province's reality 
and chiefly study the theory of Comrade Deng Xiaoping 
with regard to building socialism with Chinese charac- 
teristics and particularly the Third Volume of Deng 
Xiaoping’s Selected Works. At the same time, efforts 
should be made to study the theories and basic knowl- 
edge of the market economy and the knowledge of 
modern science and technology. An emphasis should be 
placed on successfully studying the theory of Comrade 
Deng Xiaoping on building socialism with Chinese char- 
acteristics. 


The study agenda at the plenary session was organized by 
the provincial party standing committee. 


Jiang Chunyun, secretary of the provincial party com- 
mittee, delivered a speech in which he urged the leading 
personnel of party and government organs at all levels to 
follow the demand put forward by General Secretary 
Jiang Zemin with regard to studying more and having 
less social activities and to set an example in studies for 
the broad masses of party members and cadres. He put 
forward that it is necessary to launch an emulation drive 
on study among the leading cadres to encourage them to 
study more and to conduct deeper and better studies. We 
should also encourage these leading cadres to take the 
action of regarding the painstaking study in this regard as 
practice to bring along the studies of the broad masses of 
party members and cadres and to foster a strong atmo- 


sphere of studies throughout the province. 


Jiang Chunyun pointed out: We should have the overall 
situation in mind and firmly grasp the dialectical rela- 
tions among the three big events of reform, develop- 
ment, and stability. Attention should be paid to dis- 
cussing and dealing with the important and major 
problems that have a bearing on the whole situation and 
to preventing and overcoming the exaggeration, extrav- 
agance, and formalism. 


Jiang Chunyun stressed: Party and government organs at 
all levels and various industries and trades should pro- 
ceed from the whole situation of the work undertaken by 
the entire party and pay great attention to safeguarding 
socialist interest and consolidating and developing the 
excellent situation of stability and development while 
deepening the reform, broadening the opening up, and 
promoting the development. 


During the plenary session Zhao Zhihao, deputy secre- 
tary of the provincial party committee and governor of 
the province, delivered a speech on relaying the spirit of 
the economic work forum participated in by a number of 
provinces and cities, on the current economic operation 
across the province, and on the opinions of next period 
work. 


Attending the plenary session were Li Chunting and Li 
Wenquan, deputy secretaries of the provincial party 


56 REGIONAL AFFAIRS 


committee, members of the provincial party standing 
committee and members and alternate members of the 
provincial party committee—49 persons in all. 
Attending the plenary session as observers were mem- 
bers of the party leading groups under the provincial 
people’s congress standing committee, the provincial 
people’s government, and the provincial Chinese Peo- 
ple’s Political Consultative Conference committee; spe- 
cial advisers to the provincial people's government; 
executive members of the provincial discipline inspec- 
tion commission; and responsible comrades from the 
provincial level departments concerned. 


Ti Telecommunications 
Shandong To Expand 


SK2705070294 Jinan DAZHONG RIBAO in Chinese 
17 May 94 pl 


[Text] Following the completion and the opening of 
digital telecommunications throughout the whole prov- 
ince in March this year, Shandong’s department of Posts 
and Telecommunications has decided recently to go a 
step further to build up and complete six large networks 
and to quicken construction of an information highway 
throughout the province. 


The six large networks are as follows: 1) The province's 
Digital division exchange network to cities and prefec- 
tures will be expanded from province to the county level. 
2) Medium and high speed digital data telecommunica- 
tions network, known as DDN will be connected and 
open in cities at and above the city and prefectural level. 
It will also be connected with a national DDN backbone 
network, and then expanded to the county and city level. 
3) Mobile telecornmunications network covering the 
whole province. 4) Complete and open a wireless paging 
network which can scan the whole province automati- 
cally. 5) Build 168 information stations in the province. 
6) Complete and open the visual telephone conference 
network that connects the cities at and above the city and 
prefectural level in the province. In the meantime, 
Shandong's department of posts and telecommunica- 
tions determined to develop various urgently needed 
telecommunications services in a timely manner to meet 
the demand of large numbers of consumers. 


It was reported that 17 May is the 26th world telecom- 

munications day. The topic is “telecommunication and 

culture.” The commemorative symposium convened for 

this will be held by the provincial posts and telecommu- 

— administration in Jinan on the afternoon of 16 
y. 


Shanghai Urges Screening of Public-Funded 
Overseas Tours 


OW270508 1494 Shanghai People's Radio Network in 
Mandarin 2300 GMT 25 May 94 


[From the “990 Morning News” program] 


FBIS-CHI-94-103 
27 May 1994 


[Text] The municipal planning commission, economic 
commission, foreign affairs office, public security 
bureau, tourism administration, and foreign investment 
office recently issued a joint circular, in which they 
called for continuing efforts to further halt and remedy 
covert overseas or out-of-country travel at government 
expense, as an important aspect of the effort to curb 
unhealthy tendencies. 


The circular urged party and government leaders at all 
levels to improve their understanding, to strengthen 
leadership over the screening of overseas or out- 
of-country travel on government business, and to further 
halt and remedy covert overseas or out-of-country travel 
at government expense. 


New Investment Form Used in Pudong To Attract 
Foreigners 

HK2705010694 Beijing ZHONGGUO XINWEN SHE 
in Chinese 0722 GMT 25 May 94 


[By reporter Shu Rong (5289 1369)} 


[Text] Shanghai, 25 May (ZHONGGUO XINWEN 
SHE)—The Pudong New District will adopt BOT [build, 
operate and transfer] and other forms to more effectively 
invite foreign investment and to speed up the construc- 
tion of urban infrastructural facilities in the new district. 
This was learned from the urban construction work 
conference yesterday. 


BOT is an investment form which is different from the 
previous practice of state appropriation. Chinese and 
foreign enterprises are not only investors in various 
projects, but are also managers and operators. Thus, 
investors may earn certain returns. At present, the cross- 
river tunnel that links Yanan East Read on both sides of 
the Huangbu Jiang was a project which adopted the BOT 
form, and the investor in the project is Hong Kong's 
CITIC Group. 


Earlier this year, the institutions concerned in Pudong 
put forth a number of BOT projects for inviting overseas 
investment, and these projects aroused strong interest 
among would-be investors. These projects included 
Route Number | of the Light Railway, a garbage incin- 
erator, a central heating system, a waterworks, an airport 
express highway, and trunk roads in the new district. 


In addition, Pudong will allow collectives and individ- 
uals to make investments in or run some projects which 
are urgently needed. The government will adopt certain 
favorable policies to support such investment. At the 
same time, the market system for urban construction will 
be established and fostered, and the policymaking con- 
sulting mechanisms and technological reserve for urban 
construction and management will be strengthened. 


This year is a crucial year in the construction of the new 
district. A number of major projects, including five 


FBIS-CHI-94-103 
27 May 1994 


major roads and one major bridge, power supply facili- 
ties, communications facilities, environmental 
improvement projects, will be completed within this 
year. 


People in the institutions concerned said that the mea- 
sures adopted by Pudong for strengthening urban con- 
struction will be favorable to overcoming the shortage of 
funds, to introducing advanced management methods 
from foreign countries, and to bringing a benign cycle to 
the construction of the new district. 


Shanghai's Pudong Attracts More Domestic 
Investment 


OW2705090894 Beijing XINHUA in English 0805 
GMT 27 May 94 


[Text] Shanghai, May 27 (XINHUA)—Pudong, China's 
largest economic zone in Shanghai, has become a 
favorite spot for investment from other parts of the 
country. 


According to the Pudong New Area Bureau of Economic 
Relations and Trade, 203 domestically-funded enter- 
prises had settled in the area in the first three months of 
this year, bringing the total number to 3,340, with a total 
investment of 23.9 billion yuan. 


An official of the bureau said Zhejiang took the lead in 
setting up about 300 projects involving a contractual 
investment of more than two billion yuan in the area. 


lt was followed by Jiangsu, Shandong, Guangdong, 
Anhui, Fujian, Jiangxi, Hainan, Sichuan and Hunan 
Provinces, and Shenzhen and Wuhan cities, in that 
order. 


Shenzhen has set up 140 projects in Pudong, with the 
investment totalling 1.5 billion yuan. 


The official noted that the State Bureau of Foreign Trade 
has set up branch companies in Pudong which concen- 
trate on high-tech projects and employ professionals. It 
houses them in a skyscraper it built itself. 


Shanghai In\ernationalizes Banking Operations 
OW2705091294 Beijing XINHUA in English 0801 
GMT 27 May 94 


[Text] Shanghai, May 27 (XINHUA)—Banking in 
Shanghai, China's largest economic center, has entered a 
new stage of internationalizing its operations, said Mao 
Yingliang, president of the Shanghai branch of the 
People’s Bank of-China. 


A complete financial system has been set up over the last 
decade of reform and opening to the outside world, Mao 
said. Now it does not only have a short-term money 
market, but also securities market, and foreign exchange 
swap market. The system also include foreign banks and 
a large number of other institutions engaging in banking 
or non-banking financial operations. 


REGIONAL AFFAIRS 57 


At present, more than 2,200 banking organizations from 
at home and abroad have branch banks and offices here. 


Last year the transactional volume of different securities 
topped 500 billion yuan, an increase of about six times 
over the previous year, that of foreign exchanges climbed 
to 5.294 billion U.S. Dollars, up 43.2 pcrcent; and 
interbank loans topped 232 billion yuan, up 37 percent. 


Shanghai not only borrows from foreign banks and 
governments but also issues bonds overseas, according to 
the official. 

It concluded 59 contracts on borrowing a total of 511 
million U.S. dollars last year. 

Aiming at making itself an internatiorial financial center, 
Shanghai plans to expand the number of foreign-funded 
banks from the present 26 to 50 by 1997. 


Shanghai's International Competitiveness Growing 
OW2605 124494 Beijing XINHUA in English 0723 
GMT 26 May 94 


[Text] Shanghai, May 26 (XINHUA)—Shanghai, an 

international metropolis, has again become prominent 
on the western shore of the Pacific Ocean, after 45 years 
of construction. 


Since May 27, 1949, when the government of the New 
Republic took over the city from the Kuomintang, the 
fixed assets investment in state-owned enterprises here 
has accumulated to 250.4 billion yuan, a more than 
40-fold increase over 1952. Its annual increase has 
reached 19.8 percent, 


The traditional industries, such as textiles, shipping, 
power and iron and steel, have expanded their produc- 
tion capacities—in some cases even hundreds of times. 


The modern pillar industries like automobiles and tele- 
up. 


Statistics show that in the 1953-1993 period the city 


registered an annual growth of 8.6 percent in output 
value, 11.7 percent in local finance, 9.7 percent in 
industrial output value and 8.9 percent in retail turn- 
over. 


Compared with 1952, the city’s export volume shot up 
61-fold, and imports, 888-fold. 

This rising economic strength has given a push to the 
sectors of science, education, medicine and health. 
Now, the city boasts a strong technical force of 888,800 
professionals and a comprehensive medical care system. 
Citizens’ incomes, excluding inflation indices, have 
a 2 SOS ae oe See 
1952. 


The dynamic market economy, featuring rising indus- 
tries such as securities, telecommunications and real 


58 REGIONAL AFFAIRS 


It is expected that the 1990s will be a take-off decade for 
Shanghai to become a financial and trade center for the 
whole Asia-Paciiic region. 


Zhejiang Governor Hears Report on Grain 
Farming 

OW2605 211194 Hangzhou ZHEJIANG RIBAO in 
Chinese 18 May 94 p 1 


[Article by reporter Cheng Weimin (4453 3634 3046): 
“Check the Actual Situation, Promote Leadership, 
Improve Understanding, and Pass on Experiences”] 


[Text] Yesterday, the Zhejiang Provincial People’s Gov- 
ernment convened a meeting of responsible persons 
from relevant provincial departments in our newspaper 
office specially to hear reports from a team on a news 
assignment entitled “1,000-Li March on Grain Piant- 
ing.” It also reviewed and made plans for the next phase 
of agricultural production and reform. Wan Xucyuan, 
deputy secretary of the provincial party committee and 
governor, and Liu Xirong, standing committee member 
of the provincial party committee and vice governor, 
addressed the meeting. 


The first phase of the news-gathering activities, which 
were launched upon the suggestion of provincial govern- 
ment leaders, lasted from 5 to 15 May. Reporters inter- 
viewed over 100 peasants from more than 10 counties, 
cities, and districts and scores of villages around the 
Hangzhou-Jiaxing-Huzhou areas, and published 65 
manuscripts. 


Wan Xucyuan thanked reporters who participated in the 
news-related activities on behalf of the provincial party 
committee and the provincial government. He said: The 
activities serve to “check the actual situation, promote 
leadership, improve understanding, and pass on experi- 
ences.” Through the activities, reporters gained an in- 
depth understanding of the progress in implementing 
measures adopted by the central authorities, the provin- 
cial party committee, and the provincial government to 
support agriculture, and of the progress in tilling the 
acreage planned for early season rice. The reporters 
described fresh experiences gained by some localities 
and drew our attention to some issues concerning our 
work. They also reported on experiences gained by 
localities which fared well in grain production, and 
encouraged local leaders to make further improvements. 
The reporters’ on-the-spot learning experiences helped 
promote work and leadership, and issues raised in rele- 
vant reports greatly inspired comrades undertaking agri- 
cultural work. Such reports further promoted ties 
between cities and rural areas and between industrial 
and agricultural sectors, and helped the entire society 
understand more about grain production. Governments 
at all levels should seriously sum up, popularize, study, 


ously. We should respect the masses’ creative initiative, 
and continuously sum up, improve, and popularize 
things in practice. 

Wan Xueyuan said: The activities further expanded the 
scope of news-related work and brought such work closer 
to the central task of the party and government. They 
also provided very good training for young reporters. He 
said: Ail news units and relevant departments should 
help augment the team to be assigned to the second 
phase of the “1 ,000-Li March on Grain Planting,” which 
will begin soon. This team should file more in-depth 
reports which will provide tighter supervision over 
public opinion and more intense policy-oriented propa- 


Liu Xirong said: Through the hard work of leaders at all 
levels in our province and the vast numbers of peasants, 
the big decreases in grain production have now been 
reversed. However, we should know better than to be 
optimistic about the situation concerning agricultural 
and grain production. We should further increase propa- 
ganda conducted through the media by carrying out the 
“1,000-Li March on Grain Planting” activities, so that 
we could urge all localities to implement party and 
government policies which focus on agriculture. We 
should use propaganda to accelerate reform and opening 
up. The aim of the reform of grain and other agricultural 
production is to rationalize prices of agricultural prod- 
ucts and to enable peasants to do their farming according 
to the laws of market. We should promote fairly large- 
scale operations as they provide the best way for 
improving the low efficiency of agricultural production. 


producing households. We should decontrol land man- 
agement rights in line with the principle of “voluntarism, 
compensation, and accordance with the law,” while 
making sure that the system of houschold contract 
responsibility with remuneration linked to output 
remains unchanged. We should expand scientific 
farming, and scientific agricultural research units should 
actively exploit quality rice strains. All trades and pro- 
fessions should lend stronger support to the agricultural 
sector, and party and t leaders at all levels 
should also do solid work for that sector. 


At the meeting, Wan Xueyuan and Liu Xirong warmly 
congratulated ZHEJIANG RIBAO on its 45th founding 
anniversary. After the meeting, they inspected the con- 
struction site of the ZHEJIANG RIBAO news building, 
and encouraged units in charge of constructiun and 
constructors to provide quality work and complete the 
key spiritual civilization construction project on time. 


Central-South Region 


Guangzhou Religious Leader Views ‘Disobedience 
Campaign’ 

1K2605043694 Hong Kong EASTERN EXPRESS in 
English 26 May 94 p 9 


[By N. C. Renoir in Guangzhou] 


[Text] A nationwide disobedience campaign appears to 
be gathering steam Panenay ee Bp ey 
tian churches in the wake of new religion laws passed in 
January. A renewed order to register all unauthorised 
Ne ee eee ae 
of the underground “house churches”, according to the 
Reverend Samuel Lamb Xiangao, the head of the Dam- 
azhan house church in Guangzhou. “On the surface the 
new laws say we can control ourselves. But we hear that 
every locality has its own laws so nobody wants to 
register,” Lamb, 69, said at his cramped two-floor 
church in central Guangzhou. 


House church leaders from Henan, Anhui, Zhejiang and 
northern China who visited the Damazhan church this 
month told Lamb they knew of no churches which have 
registered. Beijing's best known house church leader, the 
Reverend Yuan Xiangchen, who has spent time in jail 
for refusing government controls on his church, also 
pledged defiance, according to Lamb. 


But with Beijing apparently determined to control the 
mushrooming underground churches—which have an 
estimated 30 to 60 million regular members compared to 
only 7 million for the official “Three Self” Protestant 
Christian church—Lamb believes it may only be a 
matter of time before a crackdown comes. The local 
Three Self church in Guangzhou began handing out 
copies of the new law on the street last week, an ominous 
sign in Lamb's view. “I have heard the local PSB (public 


REGIONAL AFFAIRS 59 


security bureau) is planning another attack on our 
church,” he says. “But if it comes, it won't be until after 
the June decision,” he said, referring to the US govern- 
ment decision on renewing trade benefits for China due 
to be announced on June 3. 


Sixty PSB officers raided the Damazhan church in 
February 1990, confiscating all bibles and setting up a 
24hour encirclement to prevent further services. The 
church was not silent for long though. Two months after 
the raid it was again serving a weekly complement of 
about 800 worshippers. 


Damazhan, where Lamb has lived since 1930, is perhaps 
the best-known house church in China. The narrow, 
rickety building has seen a steady sticam of foreign 
worshippers, diplomats and reporters since gaining 
prominence after the 1990 shutdown. The US assistant 
secretary of state for human rights, John Shattuck, 
squeezed into a wooden pew for a half-hour chat with 
Lamb last October. The church has faced a standing 
threat of demolition of the Damazhan Lane buildings 
since 1991. But Lamb says this is unlikely for a year or 
more, and he has already began scouting future sites. He 
said the congregation now numbers about 1,400. 


While defiance reigns with respect to the new registra- 
tion order, it also appears that the new law governing the 
religious activities of foreigners in China has won veiled 
but widespread support among the underground Chris- 
tian movement. . renin yr 
preach. If a Chinese can preach, then we should do it 
ourselves,” said Lamb. Lamb said the recent case of an 
American, Dennis Balcombe—who was expelled from 
Henan province in February along with six other mem- 
bers of his Hong Kong-based church—“had an effect 
around the world. Foreigners should not be so active. If 
everyone were as active as Balcombe, then the police 
would not allow us to continue,” he said. 


But as the underground movement operates mainly 
without foreign involvement, Lamb says the issue of 
foreign preachers does not pose a great threat. “The 
government always accuses us of relying on foreigners. 
But we say this is not true,” he said. “One of the Three 
Selfs (doctrines) is self-preaching, and that is what we do. 
We are a Three Selfs church, but an unregistered one.” 


Guangdong Secretary Holds Talks With Model 
Workers 


11K2605 120694 Guangzhou Guangdong People's Radio 
Network in Mandarin 1000 GMT 25 May 94 


[Text] This afternoon, Xie Fei, CPC Central Committee 
Political Bureau member and Guangdong Provincial 
CPC Committee secretary, met in Zhudao Hotel and 
held cordial talks with some locally based model 
workers. 


Comrade Xie Fei said: Guangdong should strive to build 
a competent and high-quality contingent of workers, and 
advocate and develop five fine spirits, namely, the spirit 


1K2605073194 Guangzhou Guangdong People's Radio 
Network in Mandarin 0400 GMT 22 May 94 


[Text] On 17-21 May, provincial Governor Zhu Senlin 
and relevant responsible persons of the provincial gov- 


During the inspection tour, some enterprises raised the 
issue of rising of production costs due to the shortage of 


agriculture and purchasing agricultural and sideline 
products, and funds for purchasing products to be 


Guangzhou Banking Business Flourishing 
OW 2605 105494 Beijing XINHUA in English 0739 
GMT 26 May 94 


[Text] Guangzhou, May 26 (XINHUA)}—This major 
financial center in southern China has reported one 
financial institution for every 3,000 residents thanks to 
the booming banking business. 

Guangzhou has been listed as one of the five cities in 
China to experiment with financial reforms. To step up 
such reform, the city has worked hard to establish 
financial institutions and markets at various levels while 
developing the insurance market. 

By the end of last year Guangzhou had established 


altogether 2,100 financial institutions, among which 
eight are trust and investment companies, two are 


Now, the city boasts over 100 billion yuan in financial 
assets, leading all the other areas in southern China. By 
the end of last year Guangzhou had 99.5 billion yuan 
{about 11 billion U.S. dollars) in bank savings accounts, 
an increase of 24.33 percent over the previous year. 


Guangdong Reports Stable Economic Growth 


OW2705091094 Beijing XINHUA in English 0823 
GMT 27 May 94 


[Text] Guangzhou, May 27 (XINHUA)}—Guangdong 
Province, a pilot in reforms and opening up, scored a 
stable economic growth in the first four months of 1994, 
the provincial statistics bureau reported yesterday. 


The province manufactured 115.9 billion yuan-worth of 
goods during the January-April period, up 19 percent 
from the same period in 1993, a bureau official said. 


The market continued to be brisk, with retail sales 
soaring 32.5 percent during that period to reach 51.9 
billion yuan, he said. 


Exports shot up 120 percent to 11.47 billion U.S. dollars 
in the first four months of this year. 


Meanwhile, Guangdong attracted 3.19 billion dollars in 

overseas investment during this period, up nearly 37 

percent from the same period in 1993. 

The official listed the following figures to illustrate 

Guangdong’s economic achievements during the Janu- 

ary-April period: 

—The number of construction projects undertaken was 
464 fewer than in the same period of 1993 as a result 


of efforts to control excessive investment in fixed 
assets; 


—The amount of cargo transported climbed 28 percent 
to nearly 92 million tons; and 


—Electricity production shot up 42 percent to 21.4 
billion kwh. 


Furthermore, inflation has been curbed, the official said. 


The increase in the price index rose 19.6 percent in 
April, five percentage points lower than in both March 
and February. 


FBIS-CHI-94-193 


27 May 1994 
Guangdong County Upgraded to City Status 
HK2605042694 Beijing ZHONGGUO XINWEN SHE 


Beijing 
in Chinese 1231 GMT 30 Apr 94 


[“Guangdong’s Lianxian County Upgraded to Lianzhou 
City”—ZHONGGUO XINWEN SHE headline] 


[Text] | 30 Apr 
SHE)—Recently, the 


City. 


Success of Shenzhen's Shekow Industrial Zone 
Viewed 


OW2705024394 Beijing XINHUA in English 0201 
GMT 27 May 94 


[Text] Shenzhen, May 26 (XINHUA)—About 93 per- 
cent of the foreign-funded enterprises in the Shekou 
industnal zone are profitable. 


One of the first such windows for foreign investment, 
Shekou is located in south of China's Shenzhen eco- 
nomic zone in south China's Guangdong Province. 
According to a senior official of the China Merchants 
Holdings Co. Lid, licensed in Hong Kong, which has 
developed the fishing village into a modern industrial 
zone by attracting foreign investment over the past 15 
years, Shekou has introduced 700 million U.S. dollars 
for the establishment of nearly 400 joint ventures or 
enterprises solely owned by forcign investors. 
Enterprises in the red are can blame poor management 
or changes in the international market, he said. 

Since the beginning of this year industrialists and repre- 
sentatives of multinationals from the U.S., Europe and 
Southeast Asian countries have been flocking to the 
industrial zone in search of better investment opportu- 
nities, he noted. 


Shenzhen Builds Own Power Industry 


OW2705024194 Beijing XINHUA in English 0133 
GMT 27 May 94 


[Text] Shenzhen, May 26 (XINHUA)}—Shenzhen, a spe- 
cial economic zone in south China's Guangdong Prov- 
ince, has built several power plants with a total gener- 
ating capacity of more than two million kw in the past six 
years. 


REGIONAL AFFAIRS 61 


Since the city was approved as a special economic zone 
in 1980, the booming economy and growing population 
of the city have required an expanding power supply. 


In China, almost all large power plants were financed by 
the state in the past. But the city devided in 1987 to build 
power plants by itself, setting many favorable policies to 


Guangxi Chairman Interviewed on Reform, 


11K 2605 101894 Nanning People’s Radio 
Network in Mandarin 1130 GMT 19 May 94 


[Text] Cheng Kejie, chairman of the Guangxi Zhuang 
Autonomous Regional People’s Government, and Ding 
fingmo, deputy secretary of the Guangxi Zhuang Auton- 
omous ree ee a 

views in Nanning on 18 and 19 May to 
reporters from the capital. Cheng Kejie and Ding 
Tingmo made extensive comments to the reporters 
about the region's gratifying situation in reform, opening 
up, and economic construction. 


On the whole, pap hee bende cape chee pe ot ae 


Saiamahen to te tak tie sa ee has 
maintained a relatively high growth rate. The township 
and town enterprises have developed in a 

rapid manner, and their growth rate has been in 
forefront in China for three years running. Agriculture 


tion projects is very good, and the pace of opening to the 
outside world has also been accelerated. The actual 
amount of foreign capital used has increased by a big 
margin as compared with the past. In audition, greater 
efforts have been made to help the poor. 


Talking about why Guangxi has made gratifying achieve- 
ments in reform, opening up, and economic construc- 
tion, Cheng Kejie and Ding Tingmo said it is mainly 
because of the policies for Guangxi formulated by the 
central authorities. It is also the result of the concerted 
efforts of various trades and professions, party members 
and cadres at all levels, and people of all nationalities in 


would visit various localities in Guangxi, tell the public 
more about the region, and make valuable suggestions on 
the work there. 


The group of reporters from the capital arrived in 
Nanning on 18 May. The group consists of nine reporters 
from seven newspapers and magazines, including 
RENMIN RIBAO, ZHONGHUA YINGCAI HUABAO, 
LIAOWANG WEEKLY, CHINA DAILY, BEUJING 
REVIEW, and NONMING RIBAO. They will go to 
Nanning, Beihai, Fangcheng Port, Yulin, Hechi, 
Liuzhou, and Guilin to report on what they see, and 
spend half a month on the road. 


Hainan Secretary Meets With Shanghai Pudong 
Delegation 


11K 2605120094 Haikou Hainan People’s Radio 
Network in Mandarin 2300 GMT 24 May 94 


[Text] Yesterday afternoon, Ruan Chongwu, provincial 
party committee secretary and governor, met in 
Qiongyan Hotel's Haifeng Hall with a Shanghai Pudong 
District delegation headed by Hua Guowan, Pudong 
District CPC Work Committee secretary general and 
Pudong District Management Committee deputy 
director. 

The Shanghai Pudong District Delegation arrived in 
Hainan on 19 May. The delegation has since visited and 
inspected Haikou, Yangpu, Tongzha, Sanya, Qinglong, 
and some other areas of Hainan. 

Ruan Chongwu briefed the Shanghai guests on Hainan’s 
superior resources, preferential policies, as well as 
reform measures commensurate with a new market 
structure. 


Ruan Chongwu also expressed a welcome to and invited 
entrepreneurs from Shanghai's Pudong District to come 
and make investments in Hainan and participate in 
The Shanghai Pudong District delegation expressed 
appreciation of Hainan'’s achievements in respect of 
reform, opening up, and economic construction. 

Cui Gongjun, provincial people's government secretary 
general, was also present during the meeting. 


Hainan Holds Mecting on Poor, Floating 
Population 


11K 260510024 Haikou Hainan People’s Radio 
Network in Mandarin 2300 GMT 18 May 94 


[Text] Yesterday afternoon, Governor Ruan Chongwu 
presided over the 34th executive meeting of the provin- 
cial government, which examined and adopted in prin- 
ciple Hainan’s help-the-poor-through-development pro- 
gram, whose goal it is to solve the problem of food and 


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$0 as to inject new vitality into this largest special 


economic zone in China. 


Al present, some 200 construction projects are underway 
in these industrial parks. 


FBIS-CHI-94-103 
27 May 1994 


Under construction are projects involving machine 
building, electronics, light and textile industry, and phar- 
maceuticals. These projects are expected to add two 
billion yuan in output value and 100 million U.S. dollars 
in export earnings. 


In 1993 the province's industrial output value surpassed 
that of agriculture for the first time in history, turning 
out 10 billion yuan-worth of products. Industrial parks 
have played important roles in this respect. 


Drawing experience from Singapore, the Republic of 
Korea, Japan and Hong Kong, Hainan is concentrating 
on large-scale industrial production, especially by 
making use of its rich offshore resources, said Wang 
Xiaofeng, deputy governor of the province. 


Tourism, processing and transportation as well as high- 
value-added tropical agriculture will form the backbone 
of Hainan’s industry, he added. 


Hubei Trade Delegation Travels to Germany, 
France 


11K 2605094994 Wuhan Hubei People’s Radio Network 
in Mandarin 1000 GMT 19 May 94 


[Text] On the morning of 16 May, the Hubei provincial 
economic delegation held a news briefing in Europe's 
triangle region—Germany’s Saarland, France's Lor- 
raine, and the city of Saarlouis in the Grand Duchy of 
Luxembourg—and, at the same time, a seminar in the 
city of Ludwigsburg in the Ruhr Valley industrial area, 
which is situated in west-central Germany. Over 200 
entrepreneurs and bankers were invited to attend the two 
gatherings to hear about Hubei’s economic and techno- 
logical cooperation projects. 


in the city of Saarlouis, while systematically expounding 
on the various methods taken to absorb foreign capital, 
Comrade Guan Guangfu said: China’s reform and 
opening up to the outside world ts irreversible, like the 
earth revolving round the sun, and its determination to 
link its economy with the world economy is unshakable. 
China's economy ts moving into the orbit of sustained, 
steady, and healthy growth. China is both the world’s 
largest construction site and market. Although Hubei is 
not the largest province in China, it is one of the 
provinces with the greatest potential for development. 
Those who are the first to go and invest in China and 
Hubei will be the first to reap benefits. 


After the news briefing, which was held in the city of 
Saarlouis, Guan Guangfu and other comrades attended 
the signing ceremony for the $80-million agreements 
concluded by our province with three German compa- 
nies and one French company. 


In the city of Ludwigsburg, Wuhan Vice Mayor (Wu 
Houfu) briefed seminar participants on Wuhan City’s 
investment environment and development plan and 


REGIONAL AFFAIRS 63 


reviewed the close ties between Wuhan and Ludwigs- 
burg. Stressing the role of Wuhan, one of the exception- 
ally big citset in China, as a dragon head in the Chang 
Jiang Economic Belt and Hubei Province, he said: 
Wuhan City 1s the center of China’s inland market. Our 
delegation brings along close to 200 economic and tech- 
nological cooperation projects requiring a total invest- 
ment of approximately $1.5 billion. After the seminar, 
German bankers and entrepreneurs held discussions 
with the Wuhan delegation on the specific ways of 
cooperation and signed 19 letters of intent involving a 
total investment of about $200 million. 


Visiting Hubei Secretary Meets German Saarland 
Leaders 


11K 2605095194 Wuhan Hubei People’s Radio Network 
in Mandarin 1000 GMT 20 May 94 


[Text] On the morning of 17 May, at the invitation of 
Germany's Saarland Parliament and Saarland Govern- 
ment, Comrade Guan Guangfu [provincial party com- 
mittee secretary], leader of the visiting Hubei Provincial 
Economic Delegation, held talks with Saarland Parlia- 
ment Leader (Helwig) [he lu yi de] and Saarland Gov- 
ernor (Larsonden) [la song dan] on separate occasions. 
The two sides held discussions on issues relating to 
continued bilateral cooperation in an extremely friendly 
atmosphere. Comrade Mei Xiaorong, Chinese ambas- 
sador to Germany, was also present during the talks. 


During his talks with the Saarland Parliament leader and 
the Saarland governor, Comrade Guan Guangfu said: 
The Three Gorges Project, a world-renowned project 
being built on the Changjiang, and the 1,065- 
kilometer-long Changjiang Gold Channel, a project 
being built in Hubet, have created new opportunities in 
Hubei. Now is the best moment in Hubei’s economic 
development, as Hubei is becoming one of China's most 
dynamic regions for foreign investment. 


Comrade Guan Guangfu said: Hubei’s new train of 
thought for reform and opening up is as follows: To 
consolidate the existing relations of cooperation with 
Hong Kong, Macao, and Taiwan and expand relations of 
cooperation with Europe, the United States, and Japan. 
At present, Hubei 1s attaching the greatest importance to 
closer relations of cooperation with West European 
countries. 


This is primarily due to the following four reasons: 1) 
Europe, the United States, and Japan are the most 
economically developed countries and regions in the 
world. Only by strengthening relations of cooperation 
with the most economically developed countries and 
regions will we be able to learn more new things, 2) 
Europe, the United States, and Japan are known for their 
enormous funds as well as advanced science and tech- 
nology. Nevertheless, these countries and regions are 
now bogged down in an economic quagmire. If they 
choose to make investments in and transfer technology 
to China, both sides will benefit; 


o4 REGIONAL AFFAIRS 


3) Developing economic cooperation with Europe, the 
United States, and Japan has remained to date the only 
way of accelerating China's reform and opening up and 
linking China’s economy with the international 
economy; and 4) International economic development 
and civilization are always an objective reality indepen- 
dent of man’s will. The interdependence among various 
countries and regions is the motivating force for devel- 

opment worldwide and progress, which are constantly 
pe by hi-tech development and speedy informa- 
tion proliferation. 


Governor (Larsonden) and Parliament Leader (Helwig) 
agreed with Comrade Guan Guangfu, saying: Your 
friendly visit is bound to further promote more substan- 
tive bilateral cooperation between Hubei and Saarland. 
There are still many areas in which Hubei and Saarland 
can complement each other; for example, Hubei is much 
better than Saarland in respect of using inferior coal to 
generate electricity and in manufacturing auto spare 
parts. We are very willing to cooperate with Hubei in this 
regard. Governor (Larsonden) also laid special emphasis 
on cultural and artistic cooperation and exchanges 
between Hubei and Saarland. 


Hubei Province and Germany's Saarland signed an 
economic and technological cooperation agreement in 
1986. Over the past eight years, the two sides have 
carried out some exchanges and must do more in this 
area in the future. The two sides pledged to join hands in 
opening up new vistas for more substantive bilateral 
cooperation in economic, technological, and other fields 
after the visit. 


Hunan Secretary Reviews Changsha Militia 


HK2605055594 Changsha Hunan People's Radio 
Network in Mandarin 2300 GMT 17 May 94 


[Text] Yesterday was the fifth anniversary of the 
founding of the militia unii dealing with contingencies in 
the provincial capital Changsha. The unit staged report- 
back performances of military training such as enemy- 
subduing boxing, skill in using clubs, and unarmed 
combat to mark the anniversary. Established to meet 
contingency needs with maintaining social stability and 
protecting the people’s peaceful labor as the guidelines, 
the unit has made positive contributions to Changsha's 
reform and opening up to the outside world. 


In July last year, Changsha’s urban and rural areas were 
universally hit by floods and waterlogging. Over 1,000 
dams, mountain embankments, and reservoirs were in 
danger and | million mu of paddy fields was submerged. 
Ordered by the Changsha Garrison Command, all mili- 
tiamen of the unit pitched into the work, guarding dams, 
plugging breaches, and rushing to save the people's lives 
and property. They successively saved more than 30,000 
people who were marooned by flood waters and over 700 
tonnes of goods and materials. 


The unit has also played the role of a shock force. This 
year the unit has dispatched its members in more than 


FBIS-CHI-94-103 
27 May 1994 


300,000 individual instances to take part in the construc- 
tion of key development projects such as the Xiang Jiang 
100-li flood control embankment and (Furong) Road, 
thus yielding impressive economic results. The unit has 
also repeatedly made contributions to maintaining social 
security. 


Yesterday, provincial and city party, government, and 
Army leaders [provincial Secretary] Wang Maolin, [pro- 
vincial military district Commander] Pang Weigiang, 
(Wu Xiangdong), Shen Ruiting, and Tang Zhixiang 
watched the unit's performances of miliiary training and 
reviewed the unit. 


Hunan Secretary Addresses Meeting on Honesty, 


HK2605074894 Changsha Hunan People’s Radio 
Network in Mandarin 2300 GMT 19 May 94 


[Text] Yesterday [19 May] evening, provincial CPC 
Committee held a televised telephone meeting for 
responsible persons of various prefectures, autonomous 
prefectures, cities, and counties as well as units directly 
under provincial authorities to further mobilize and 
make arrangements for convening democratic life 
meeting of the CPC Committees and leading party 
groups in units at and above county level aimed ai 
promoting cleanness, honesty and self- discipline. The 
meeting was presided over by Chen Bangzhu, provincial 
party deputy secretary and governor. Provincial party 
Secretary Wang Maolin made an important speech. 
Yang Minzhi, member of the provincial CPC Committee 
and secretary of the provincial Discipline Inspection 
Commission, read a document issued by the provincial 
Discipline Inspection Commission and provincial Orga- 
nization Department, and approved and relayed by the 
provincial CPC Committee, on a proposal to convene 
well democratic life meetings of the CPC Committees 
and leading party groups in units at and above the 
county level. 


The meeting demanded that during the first half of this 
year democratic life meetings of the CPC Committees 
and leading party groups in units at and above the 
county level be more meticulously organized than last 
year, that higher demands be set on them, and that 
problems be solved in a more practical and effective way. 
Relevant units must right away carry out self- 
examination and self-appraisal strictly in accordance 
with the requirements of the CPC Central Committee to 
strive to solve well the main problems of members of the 
leading bodies before the democratic life meetings to be 
held at the end of June or early July. 


In his speech, Comrade Wang Maolin called on those 
persons having primary responsibility in party and gov- 
ernment organs at all levels to understand the impor- 
tance of the democratic life meetings for leading cadres 
aimed at promoting clearness, honesty and self- 
discipline from the high plane of implementing the 
measures of the central authorities of opposing corrup- 
tion, forging closer links between the party and the 


FBIS-CHI-94-103 
27 May 1994 


masses, enhancing combat effectiveness of leading 
bodies, and promoting reform, development, and sta- 
bility. Democratic life meetings must be convened in a 
conscientious and serious manner. As far as the whole 
province is concerned, in accordance with the require- 
ments of the two five-point principles set and reiterated 
by the central authorities for ensuring leading cadres” 
cleanness and honesty, we must truly solve several 
prominent problems existing in a small number of 
leading cadres, such as seeking personal ease and com- 
fort, abusing power for private gains, accepting as gifts 
red envelopes containing money, being showy, and prac- 
ticing fraud. 


Comrade Wang Maolin pointed out: Since the situations 
in various localities and units are different, they must 
proceed from their own practical conditions to solve 
their own problems whenever they occur. Those persons 
holding primary responsibility in the party and govern- 
ment organs at all levels must take lead in making 
self-examination right away. In the meantime, the must 
be bold in conducting conscientious and serious criti- 
cisms to educate and help a number of people so that 
they can enhance their understanding and solve their 


own problems. 


Those who attended the above-mentioned televised tele- 
phone meeting in the main meeting hall included mem- 
bers of the provincial CPC Committee Standing Com- 
mittee, party-member chairman and vice chairmen of 
the provincial People’s Congress, vice governors of the 
provincial government, party-member chairman and 
vice chairmen of the provincial Chinese People’s Poiit- 
ical Consultative Conference, secretaries of the CPC 
Committees and leading party groups in various units 
directly under provincial authorities, and chiefs or sec- 
retaries of Discipline Inspection Commissions, as well as 
responsible comrades of Changsha city and area. Mem- 
bers of the Prefectural, Autonomous Prefectural, city, 
and county CPC Committees Standing Committees 
attended the meeting in meeting rooms of lecal postal 
and telecommunications offices. 


Hunan Secretary Inspects Higher Learning 
Institutions 

HK2605075694 Changsha Hunan People's Radio 
Network in Mandarin 2300 GMT 21 May 94 


[Text] Accompanied by provincial vice Governor Zheng 
Peimin and provincial education commission Director 
Ji Yihui, provincial party committee Secretary Wang 
Maolin inspected five locally based higher learning insti- 
tutions on 18-21 May, including Central South Univer- 
sity of Technology, Hunan Institute of Traditional Chi- 
nese Medicine, Hunan Teachers’ University, Changsha 
Institute of Communications, and Hunan Light Industry 
School. 


During his inspection, Secretary Wang Maolin inspected 
in great detail internal and external environments of 
each and every higher learning institution, inquired 
about conditions in student dormitories and canteens, 


REGIONAL AFFAIRS 65 


befriended and solicited views from students, and 
showed great concern for teaching, learning, and scien- 
tific research activities, teachers’ contingent building, as 
well as ideological realities, livelihood, academic and 
research work of staff and teachers. 

After being told that many locally based higher learning 
institutions are confronted with difficulties in scientific 
research and publication of literary works due to a short 
supply of water, electricity, and operational funds, Sec- 
retary Wang Maolin repeatedly asked the provincial 
education commission, provincial party committee's 
college education work committee, and some other pro- 
vincial departments concerned to take prompt action to 
resolve those problems as soon as possible. 


During his inspection, Secretary Wang Maolin time and 
again stressed: Now the majority of the province's col- 
lege students are in their twenties and are thereby the 
unquestionable successors in the next century. Within a 
short space of 10 to 20 years, these students will become 
either party and government leaders at all levels across 
the country or technological backbones in the forefront 
of production. Therefore, higher learning institutions 
should at once be places where students are trained 
academically and where students are taught how to 
conduct themselves. Only by so doing will they be able to 
train a new generation of people capable of undertaking 
sacred missions entrusted by history. 


During his inspection, Secretary Wang Maolin highly 
praised Central South University of Technology for 
having successfully built a national-level laboratory and 
a powder metallurgy research institute, praised Hunan 
Teachers’ University for having built a competent con- 
tingent of teachers and trained a large number of highly 
qualified personnel, praised Hunan Institute of Tradi- 
tional Chinese Medicine for having successfully devel- 
oped a traditional Chinese medical diagnoses course, 
praised Changsha Institute of Communications for 
having cultivated a fine campus style and a fine aca- 
demic style, and commended Hunan Light Industry 
School for having successfully created and experimented 
with a series of new teaching methods. 


Secretary Wang Maolin also spelled out some specific 
new work requirements for the aforementioned five 
higher learning institutions. 


Southwest Region 


Japanese-Aided Water Project Completed in 
Guizhou 

OW 2505121394 Beijing XINHUA in English 0811 
GMT 25 May 94 


[Text] Guiyang, May 25 (XINHUA)—Southwest 
China's Guizhou Province has completed construction 
of a “drinking water project” for 1.06 million farmers 
and 500,000 cattle in 17 counties. 


66 REGIONAL AFFAIRS 


The project consists of 358 drinking water works funded 
with the Japanese Government loans. 


In the past, half of the farmers of Guizhou, a province 
situated on the Yunnan-Guizhou Plateau, faced difficul- 
ties in drawing potable water from underground water 


sources. 


in April 1991, the Chinese and Japanese Governments 
signed an agreement on using !|.5 billion yen to open up 
underground water reserves in Guizhou Province. 


Zhang Yuqgin, deputy governor of Guizhou Province, 
said that by the end of March this year, the projects were 
ail completed. 


She said that the Japanese-funded drinking water project 
has also prompted Guizhou to improve the quality of 
drinking water supplies and now more than 12.3 million 
farmers have access to clean water. 


She said that this year, about |.! million additional 
farmers will have piped-in tap water. 


Guizhou Economic Delegation Returns From 
Shanghai 


11K 2605033894 Guiyang Guizhou People’s Radio 
Network in Mandarin 2300 GMT 19 May 94 


[Excerpt] At the invitation of Shanghai Municipal Peo- 
ple’s Government, a Guizhou Provincial Economic Del- 
egation headed by provincial Governor Chen Shineng 
made an inspection tour in Shanghai from 12 to 18 May. 
The delegation returned to Guiyang yesterday [19 May]. 
During its stay in Shanghai, the delegation inspected 
Pudong, [words indistinct], the Foreign Exchange Swap 
Center, the Stock Exchange, the Metals Transaction 
Market, and so on. 


Shanghai municipal party and government leaders wel- 
comed the delegation. Municipal party Secretary Wu 
Bangguo; Huang Ju, municipal party deputy secretary 
and mayor, and several vice mayors held talks with the 
delegation on bilateral cooperation. Responsible com- 
rades of relevant departments and enterprises also held 
discussions and signed contracts on cooperative projects. 
[passage omitted] 


Distinguished Economist Lectures in Guizhou 


11K 2605071794 Guiyang Guizhou People’s Radio 
Network in Mandarin 2300 GMT 22 May 94 


[Text] Yesterday [22 May] morning, Professor Li Yining, 
member of the NPC Standing Committee, vice chairman 
of the Legal Committee of the NPC, dean of the Business 
Administration faculty in Beijing University, and noted 
economist, gave a lecture in the meeting hall of the 
provincial People’s Congress entitled “Market Economy 
and China's Economic Reform.” The meeting was pre- 
sided over by provincial People’s Congress Chairman 
Wang Chaowen. 


FBIS-CHI-94-193 
27 May 1994 


In his Jecture, Professor Li gave a comprehensive anal- 
ysis of China's present economic situation, and talked 
about ideas on China's economic reforms. In the mean- 
time, he also ex several issues related to share- 
holding systems, and the role of people's congresses in 
the building of a market economy. 


Those who attended the lecture included vice chairmen 
of the provincial people's congress Liang Mingde, Wang 
Anze, Liang Wanggui, Chen Yuanwu, Lu Wenbin, and 
Yu Lin; veteran comrades Zhang Yuchuan, Wu Su, Zeng 
Xianhu, Yuan Yanlong, Qiao Yiheng, and others, and 
members of the provincial people's congress Standing 
Committee and NPC deputies who were in Guizhou. 


Sichuan Hosts National Legal Papers Conference 


11K 2605115994 Chengdu Sichuan People’s Radio 
Network in Mandarin 1100 GMT 24 May 94 


[Text] A national conference on locally based legal 
papers publication work opened under the auspices of 
the PRC Ministry of Justice in Chengdu today. 


The opening ceremony was attended by vice minister of 
Justice Wang Julu; Song Baorui, Sichuan Provincial 
CPC Committee deputy secretary and political and legal 
affairs committee secretary; as well as comrades in 
charge of the PRC Press and Publications Administra- 
tion and other state departments concerned. 


Comrade Song Baorui delivered at the opening cere- 
mony a speech in which he stated: Under socialist 
market economic conditions, we should strive to further 
improve the locally based legal papers publication work 
and step up legal system propaganda as well. The locally 
based legal papers publication work is of great signifi- 
cance to grasping excellent opportunities, deepening 
reforms, expanding opening up, promoting develop- 
ment, and maintaining stability. 


Sun Hongxiang, Justice Ministry Propaganda Depari- 
ment director, delivered at the opening ceremony a work 
report entitled “Raise Locally Based Legal Papers Pub- 
lication Work to a New Level and Make Locally Based 
Legal Papers Serve Economic Construction and Social 
Stability.” 


Article Views Tibet's Recent Economic 
Development 


11K2705 102594 Beijing RENMIN RIBAO in Chinese 
16 May 94 pl 


[Report by staff reporters Liu Wei (0491 0251) and He 
Guanghua (6320 1639 5478): “Looking at Tibet in a 
New Light”) 

[Text] Whenever one mentions Tibet, one usually asso- 
ciates it with backwardness, with being closed, and with 
barrenness. Foreigners would rephrase it by calling it the 
“world’s last Shangri-la,” which means the same thing. 
However, the reality is totally different: This “roof of the 


FBIS-CHI-94-103 
27 May 1994 


world” amid reform and opening up has unprecedented 
vigor and vitality and has in store formidable hopes and 
At one time, Tibet was considered the “rear” of China’s 
reform and opening up. 


No wonder. The blueprint for the 1990’s drawn up by 
Tibetans themselves does not seem to aim high. It fixes 
the annual average growth rate at only approximately 5.8 
percent. Of course, it has difficulties which outsiders 
have difficulty understanding. The “blood-transfusion” 
economy consistently pursued over the past 40 years 
alone is a high wail that destines Tibet to have a very, 
very long way to go for its economic development, not to 
mention the contradiction between the gradually 
decreasing farmland and the drastically increasing pop- 
ulation and the numerous restrictive factors such as 
communications, energy, and population quality. 


But this is no reason for Tibet to be content with the 
present situation and not to think of making progress. 


After the spirit of Deng Xiaoping’s remarks during his 
southern tour was relayed to the ice-capped plateau in 
early 1992, Tibetans could no longer rernain calm. They 
began to ask themselves: Can Tibet remain “special” 
forever and continue to depend on the state's long-term 
“blood transfusions”? Is Tibet willing to accept the label 
of “being special” and stand at the rear of reform and 


opening up? 


Backwardness is not terrifying. Being geographically 
closed is not terrifying. What is terrifying is rigid and 
conservative thinking and the psychology of idleness. 
Since April 1992, a big discussion on “changing the way 
of thinking and finding out about the difference,” which 
involved everyone on the plateau, began in this context. 


By transforming the “rear” into the “forefront” facing 
South Asia and changing an advantage in resources into 
an economic advantage, Tibetans this time seized the 
opportunity to increase the extent of reform and strive tc 
develop in pace with the national economy. 


At the beginning of July 1992, Tibet introduced a series 
of policies and regulations, including those intended to 
“deepen reform and increase the degree of openness,” 
“encourage investment in Tibet from abroad and at 
home,” and quicken the development of tertiary 
industry and township and town enterprises. In mid- 
July, the ports of Tibet's Burang and India’s Gongci 
open and close at the same hours. The Yamarong Border 
Trade Fair, which had been suspended for 33 years, and 
other traditional border markets were restored. In 
August, Tibet announced 19 projects to attract a total 
investment of over 4 billion yuan. It also set up an office 
for attracting investment from abroad and at home. 
Afterward, border-trade and export-oriented economic 
development zones were set up in 10 counties and ports 
on the Tibetan border. In September, large-scale eco- 
nomic and trade talks between Tibet and Nepal solemnly 
opened in Lhasa..... 


REGIONAL AFFAIRS 67 


With its unprecedented high efficiency, quick tempo, 
and new attitude, the “roof of the world” made the world 
see it in a new light. 


That summer, an unprecedented market wave swept 
across Tibet. In Lhasa, the barriers of government organs 
on Linguo Road, Beijing Road, and Jinzhu Road were all 
pulled down almost overnight. Half a month later, a 
metals market was set up on Linguo Road and Beijing 
Road was changed into a street of clothes shops, and 
deluxe restaurants and hotels were found on west Beijing 
road. According to the Lhasa Bureau of Industry and 
Commerce, in the June-July period alone, over 500 
individual industrial and commercial entrepreneurs 
were added, almost 10 percent of the city’s total indi- 
vidual and commercial entrepreneurs. Several bustling 
commercial streets were also found in such central cities 
and towns as Xigaze and Zetang. 


Furthermore, local governments introduced “economic 
and trade” contents to the numerous ethnic traditional 
festivals in the summer and autumn of that year, such as 
Lhasa’s Xuedun festival, Gyangze’s Dama festival, 
Nagqu’s Horse-Racing festival, Shannan’s Yalong Cul- 
tural Festival, and Nyingchi’s Spring Festival. At the 
same time, they also held trade fairs of different scales so 
that the Tibetan peasants and herdsmen could experi- 
ence a new way of spending the festivals. 


In the meantime, governments at all levels in Tibet have 
introduced preferential policies, set aside special funds, 
quickened market development, and shifted their atten- 
tion from the previous trade fairs to all types of mullti- 
function, multilayer, and multiform special markets. In 
this connection, real estate development, capital, labor 
service, and old-clothing markets have come into being. 
Transactions in the timber, grain, and fruit markets have 
become brisker. What is heartening is that peasants and 
herdsmen have begun to appear in the market arena. A 
special market has been set up in Lhasa specifically for 
peasants and herdsmen coming into the city to do 
business. Today, Lhasa people are beginning to speculate 
on stocks now that the Lhasa Securities Exchange has 
been put into operation. 


Over the past two years, Tibet's national economy has 
developed at a higher growth rate each year. As far as its 
GNP is concerned, it was 2.535 billion yuan in 1991, 
3.27 billion yuan in 1992, and 3.65 billion yuan in 1993. 
Calculated at comparable prices, these figures were 3.7 
percent, 7.1 percent, and 8.1 percent higher respectively 
than in the previous year. 


Epidemic Diseases Break Out in Parts of Yunnan 


11K 2605090194 Hiong Kong ZHONGGUO TONGXUN 
SHE in Chinese 1212 GMT 6 May 94 


[Text] Beijing, 6 May (ZHONGGUO TONGXUN 
SHE)—Since the spring of this year, epidemic diseases 
have increased dramatically in Yunnan Province, with 
measles occurring in some remote counties and town- 
ships. 


68 REGIONAL AFFAIRS 


Several days ago, the Yunnan Provincia! People’s Gov- 
ernment and the Yunnan Provincial Health Department 
held an emergency telephone meeting on preventing the 
spread of epidemic diseases. The meeting instructed all 
levels of governments and health administrative depart- 
ments to take measures and strengthen epidemic preven- 
tive work. 


According to a JANKANG BAO [Health Newspaper] 
report, there have been emergency occurrences of many 
epidemic diseases, with a very high death rate. The main 
reason is that preventive work is not effective and there 
are no methods to promptly control the spread of epi- 
demics. 

The Yunnan Provincial Government has asked govern- 
ments at all levels to speedily ensure funding for epi- 
demic preventive work, to promptly collect information 
on epidemics, and to ensure the supply of preventive 
medicine, remedial medicine, emergency biological 
products, disinfectants, insecticides, and all kinds of 
relief goods, so that measures can be immediately taken 
to control the spread of epidemics at the first signs of an 
outbreak. 


North Region 


Beijing Passes Law To Curb Loss of Arable Land 


OW2605 124194 Beijing XINHUA in English 0744 
GMT 26 May 94 


[Text] Beijing, May 26 (XINHUA)—The Beijing munic- 
ipal legislature has passed a law to put a stop to 
encroachment on arable land. 


Beijing had a total area of 16,807 sq km, including 6,100 
sq km of arable land, in 1952. But this dropped to 4,100 
sq km of arable land in 1993. Now the city has an 
average of 393 sq m of arable land per capita, which is 
the lowest in China. 


The shrinking of arable land is due largely to construc- 
tion, according to Chen Shudong, director of the Beijing 
Bureau of Land Administration. He said the amount of 
land used for construction has been increasing in recent 
years. Last year it was a record 40 sq km. 


The land resources of Beijing are not only worsening in 
quantity but also in quality. 


Despite the decrease of arable land, Beijing's annual 
grain consumption is around 5.20 million tens, half of 
which is transported in from other cities or provinces. 


Beijing has a population of 10,511,800, as well as a 1.5 
million floating population. 


Ata recent meeting, the standing committee of the tenth 
municipal people's congress has adopted regulations on 
protection of farmland in Beijing. 


FBIS-CHI-94-103 
27 May 1994 


The 30-article regulations stipulate the principles on 
classification of farmland, the compensation system for 
the land occupied by the state constructior projects and 
legal duties in this field. 


Beijing Mayor on Expansion of Urban 
Construction 


OW 2505132394 Beijing XINHUA in English 1028 
GMT 25 May 94 


[Text] Beijing, May 25 (XINHUA)—Beijing will intro- 
duce foreign funds to speed up the construction of 
top-priority infrastructure projects, according to Mayor 
Li Qiyan. 


These projects include a subway, a number of express- 
ways, waste water treatment systems and the pulldown of 
dilapidated houses to build new residential areas, he said 
after visiting four cities—Vienna, Paris, Berlin and 
Cologne earlier this month. 


“Only by drawing on all outstanding achievements in 
human civilization will it be possible for Beijing to grow 
faster,’ he said. 


He also pledged to draw on successful experience in 
urban construction of the four cities in order to turn 
Beijing into a “modern international metropolis” as 
soon as possibile. 


He recalled that during his meetings with German Chan- 
cellor Helmut Kohl and Austrian Chancellor Franz 
Vrantzky, the two chancellors expressed full support for 
the expansion of cooperation between the Chinese cap- 
ital and the capitals of Germany and Austria. 


Meanwhile, mayors of the four cities also pledged to 
expand cooperation with Beijing in science, technology, 
economy and culture, he said. 


Beijing signed nine cooperation agreements with compa- 
nies in France and Germany during the mayor's visit, 
involving a total investment of nearly 300 million U.S. 
dollars, he said. 


Under these agreements, companies in Beijing and their 
counterparts in France and Germany will co-produce 
cans, machine tools, electrical appliances, pharmaceuti- 
cals and adhesives. 


Government statistics show that Germany, France and 
Austria have invested 270 million U.S. dollars in 138 
joint ventures in Beijing. 


Beijing To Control Prices of Daily Necessities 


11K 2605035594 Beijing ZHONGGUO XINWEN SHE 
in English 1429 GMT 25 May 94 


[Text] Beijing, May 25 (CNS)}—The Beijing municipal 
government recently issued a circular on supervision and 
control over prices of 34 items of commodities of daily 


FBIS-CHI-94-103 
27 May 1994 


necessities in 20 categories and items of service in order 
to control their prices within the range of bearing by 
residents there. 


Of the items under control, 10 are bags of refined salt, 
coal for civil use, gas, housing rent, running water, 
tuition, fees of public nursery, bus and 

railway fees as well as medical expenses. As for another 
13 commodities including grain and meat, prior to their 
prices’ rise, relevant departments must report them to 
the Municipal Price Administration for record five days 
ahead of time and for other 11 commodities including 
flour, edible oil and milk, rises in their prices must be 
reported the administration and the municipal govern- 
ment for approval 10 days ahead of time. 


Those in violation of above-mentioned regulations will 
be punished in accordance with law. 


ay Seengiens Contes: eo Conpetens 


OW2505 110794 Beijing XINHUA in English 0901 
GMT 25 May 94 


[Text] Beijing, May 25 (XINHUA)—Beijing has recently 
issued a set of regulations on the prevention and control 
of occupational diseases. 


Statistics show that in 1993, over 525,000 workers came 
into contact with poisonous material leaks in more than 
13,400 factories and enterprises in the city. 


According to a 1993 survey, nearly 2000 people have 
contracted with diseases caused by their work each year, 
an annual incidence rate of 1.3 percent. 


The new rules require new projects to meet hygieric 
standards set by the state. It also emphasizes the preven- 
tion measures. 


The regulations define the responsibilities which rele- 
vant departments should assume, such as diagnosis of 
and supervision over occupational diseases. 


Problems still exist in the city’s 1,500 foreign-funded 
enterprises. 

Some companies have introduced production equipment 
but not the corresponding safety facilities to prevent 


poisons in workshops from doing serious harm to 
workers’ health. 


Some foreign businessmen, under the guise of main- 
taining company security, do not disclose the chemical 
compositions of prescriptions which contain harmful 
materials. 


Several materials which have been banned or replaced by 
substitutes abroad arc still used in some Chinese joint 
ventures. 


REGIONAL AFFAIRS 69 


Beijing Adopts Regulaticas on Women's Rights 
OW2605032394 Beijing XINHUA in English 0251 
GMT 26 May 94 


[Text] Beijing, May 26 (XINHUA)—The Standing Com- 
emer pephey) ne amcor my shea mse a 
issued a set of new regulations for the implementation of 
Sanne ew OS Cle NRNSEED GF Welnere Siu ane 
nterests. 


The law was adopted by the Standing Committee of the 
National People’s Congress in April 1992. 

Wu Xiuping, ou director of the Beijing Municipal 
Commission for Women’s Rights and Inter- 
ests, said that the 53- article cover women's 


political rights, their rights in culture and education, 
their work rights and interests, their rights of person, 


She said the regulations also specify the names and 
duties of agencies in charge of protecting women's rights 
and interests. 

The regulations state that except for special cases, no 
employer may refuse to hire women. 


Moreover, no enterprises may discriminate against 
women while carrying out the labor reform and trans- 
forming their operational mechanism. 

The regulations ban insulting, beating and maltreatment 
of female members of a family, and the abduction, 
kidnapping, selling and buying of women, as well as 
prostitution. 

No hotels, dance halls, bars, cafes or beauty shops may 
facilitate prostitution or provide sex services. 


Wu Xiuping said that half of the 10.5 million residents in 
Beijing are women. 


At the end of 1993, Beijing had 368,000 women govern- 
ment employees, 44.5 percent of the total. 


Nearly 12 percent of the leading officials at the prefec- 
tural commissioner's level and 22 perceni of those at the 
county magistrate’s level are women, she said. 


Women now account for nearly 52 percent of technicians 
and engineers in state-owned businesses and institutions. 


She said that 33 percent of the representatives of the 
municipal people's congress are women, she said, adding 
that also about 26 percent of the representatives of the 
people’s congress at the county and district level are 
women. 


She also acknowledged a number of problems in bringing 
the role of women into full play. 


For example, the ratio of women among leading officials 
is too low and woman college graduates find it relatively 
difficult to get jobs. 


70 REGIONAL AFFAIRS 


ar ® RRS Senteeep Recreate 


OW 2605050394 Beijing XINHUA Domestic Service in 
Chinese 2100 GMT 25 May 94 


[By reporter Wang Yuclong (3769 1471 7893)) 


[Text] Beijing, 26 May (XINHUA)—Since its inception 
a year ago, the Beijing Copyright Protection Association, 
the country's first local copyright protection organiza- 
tion, has achieved tremendous success in actively pro- 
tecting the legitimate rights and interests of copyright 
holders, in extensively publicizing and popularizing the 
Copyright Law, and in encouraging people in all sectors 
of society to participate in copyright management and 
protection. 

Since its founding, the Beijing Copyright Protection 
Association has focused on publicizing and popularizing 
the Copyright Law. In March 1993, the association 
organized training on the “Universal Copyright Conven- 
tion and copyright management” for people in charge of 
copyright-related work from more than 60 publishing 
houses and press offices in Beijing, thus enabling them to 
gain a preliminary knowledge and understanding of the 
Universal Copyright Convention, and thus laying a fairly 
sound foundation for copyright management organs to 
exercise their duties in accordance with the law. The 
Beijing Copyright Protection Association also has orga- 
nized many forums regarding the Copyright Law for 
artists and renowned writers in Beijing, and it has 
launched publicity and consultation services regarding 
the Copyright Law in Beijing's main streets and public 
places. This has facilitated Beijing's enforcement of the 
Copyright Law. 

The Beijing Copyright Protection Association has pro- 
vided services for copyright protection and has carried 
out explorations and experiments in copyright agency 
services. Last September, the Beijing Copyright Protec- 
tion Association and the Beijing Copyright Bureau held 
the first trade fair on book manuscripts, thus serving as 
a bridge between writers and publishers. Nine publishing 
agreements and 30 letters of intent on publishing were 
concluded, and approximately 300,000 yuan worth of 
business was conducted. The fair won universal acclaim 
from writers and publishers. The Beijing Copyright 
Protection Association also has actively investigated 
piracy and other infringements on behalf of copyright 
holders. In 1993, the association sent its members to 
Heilongjiang Province, Hebei Province, Tianjin munic- 
ipality, and Shanxi Province to investigate the piracy of 
“The Gourd Brothers,” a book published by the China 
Film Press. It helped the publishers recoup part of their 
economic losses. 


The Beijing Copyright Protection Association also has 
made active efforts to mediate copyright disputes. A 
publishing house in Beijing had a dispute with the heir of 
an author, and the dispute remained unresolved for 
several vears. Last year, the Beijing Copyright Protection 
Association mediated the dispute at the request of both 


FBIS-CHI-94-103 
27 May 1994 


parties and quickly solved it. According to the feedback 
of many publishers and writers in Beijing municipality, 
the civilian mediation process employed by the Beying 
Copyright Protection Association regarding copyright 
disputes 13 simple, is unlikely to provoke hard feelings, 
and is economically acceptable. 

After more than a year of exploration and practice, the 
Beying Copyright Protection Association has inducted 
most of the publishers and a number of writers in the 
Bewying area, thereby initially installing a collective man- 
agement mechanism for copyright management in the 
Beijing area. 


Hebei Auctions Right To Develop Mountain Areas 
OW 2305160894 Beijing XINHUA in English 1439 
GMT 23 May 94 


[Text] Shijiazhuang, May 23 (XINHUA)—Three coun- 
ties in the Taihangshan Mountain Region of north 
China's Hebei Province have launched a campaign to 
auction the right of use of barren hills in a bid to 
effectively implement one of China's afforestation 
projects. 

Also under auction are barren valleys, wastelands and 
uncultivated mountain slopes. 


China's land law stipulates that all land, including moun- 
tains and rivers, is state property. Therefore, what has 
been auctioned is the right to explore the undeveloped 
areas. Underground minerals, however, are excluded. 


Hebci provincial sources said that Zhanhuang County 
has sold the right of use for some 11,000 ha [hectares] of 
uncultivated areas, more than 60 percent of the county's 
total such areas. Pingshan and Tangxian Counties have 
“auctioned” off another 11,600 ha of such areas. 


The Taihangshan Mountain Range, winding through 110 
counties, cities and districts in Hebei, Henan and Shanxi 
Provinces and Beijing, has a mountainous area of more 
than 12 million ha. The Taihangshan Mountain Affor- 
estation Project, one of China's largest afforestation 
projects in full swing, has been written into the “2st 
Century Agenda of China”. 


According to the project, by the year 2000 the total green 
area in the Tathangshan Mountain Region is projected to 
top nine million ha and the forest cover rate there will 
climb from the current 18.1 percent to 43.6 percent. 


The three counties have promulgated a set of policies 
stating that all capable individuals, enterprises, institu- 
tions and departments can participate in the bidding for 
the right to develop barren areas, cither individually or 
jointly. 


According to the policies, which set no limitations on the 
area of land a bidder can offer to buy, the auctioned 
barren areas can be inherited, leased or transferred 
before the auction contracts expire. 


He also said that the county's annual output of fruit has 
eee oe ae ee 


ne a oe 


OW2505121494 Beijing XINHUA in English 0810 
GMT 25 May 94 


[Text] Shijiazhuang, May 25 (XINHUA)—The Jingtang 
Port in Hebei Province will be built jointly by 
and Tangshan into an international port city by the end 
of the century, a port official said today. 


The official said that Jingtang Port, or the Beijing- 
Tangshan Port, is designed to handle 6.5 million tons of 
cargo annually by the end of 1995. 

The port's handling capacity will rise to 12 million tons 
a year by 2000, he added. 

In July 1993, Tangshan, a major coal mining and man- 
ufacturing center in north China, signed an agreement 


with Beying to jointly build the new port in Wangtan 
Township, Leting County. 


The port, 95 kilometers southeast of Tangshan, 
to foreign ships on July 18, 1993, he said. 


i 


opened 


REGIONAL AFFAIRS 71 


development zone around the port, he said. 


A 77-km railway now links the port to the Beiji 
Shanhaiguan Railway Line, he said, adding that direct 
dialing service to the rest of China and the world is 
available in Jingtang. 


Sas Canaeae <ay Covasnmnent han dreited to Seemnen 


the growth of transportation, processing and high-tech 
industries in the development zone, he said. 


To date, the port authorities have approved the under- 
taking of 93 projects in the zone in cooperation with 
Chinese and overseas firms, he said, adding that these 
projects will involve 1.7 billion yuan in total investment. 
Work has started on nine projects, including a seame v's 
hotel and an office building, he said. 

Jingtang is set to increase its population to 300,000 by 
the end of the century, he said. 


Hebei Chemical Plant Fined for Discharging 
Toxic Waste 

HK2705044094 Beijing CHINA DAILY in English 27 
May 94 p 3 


ee 
[Text] In the most serious environmental case in Hebei, 
provincial officials have fined a chemical factory 90,000 
yuan ($10,300) for discharging toxic waste. 


The No 5 Chemical Factory under the Applied Chemical 
Company in Langfang, a city between Beijing and Tian- 
jin, is also likely to be brought to court and forced to pay 
compensation to victims of the waste dumping. 


The factory has until June 5 to pay the fine, said Wang 
Junhe, director of the provincial environmental protec- 
tion bureau. 


Local otficials discovered in February that the factory 
had dumped 227 drums of phosphorus sulfide along 
mountains in Hebei Province and into rivers in Tianjin 


municipality. 

Each barre! contained 100 kilograms of the poisonous 
chemicals. 

The first 20 drums were uncovered on February 22 in the 
Ziya River in Tianjin’s Xiging District—a major source 
of drinking water for residents. 

The local government immediately channeled river 
water to the Luanhe River to clean up the contaminated 
Ziya. No cases of water poisoning were reported. 
Another 33 drums of waste were uncovered in the rivers 
and irrigation canals in Wuqing county, Tianjin. 


The Tangshan City Government is building a 44-sq-km 
Bewying- 


Wang said the local government iS preparing to sue the 
director and vice directors responsible. 


72 REGIONAL AFFAIRS 


It is estimated compensation to local residents could be 
more than | million yuan ($1 14,000). 


Inner Mongolia Benefits From (pen Policy 
OW 2605111294 Beijing XINHUA in English 0733 
GMT 26 May 94 


[Text] Hohhot, May 26 (XINHUA)—The Inner Mon- 
golia Autonomous Region has benefited from the coun- 
try’s open policy as the region reported a marked 
increase last year in overseas investment and foreign 
trade, especially border trade, a regional official said 
today. 


Inner Mongolia has 4,200 km of border with Russia and 
Mongolia, and 18 trading ports along the border. In 1993 
border trade between the region and the two adjoining 
countries reached 770 million U.S. dollars-worth, an 
increase of 67.2 percent or 64 percent of the region's 
total foreign trade volume. 


The region attracted 360 million U.S. dollars in foreign 
investment in 408 joint ventu~es in 1993, an increase of 
1.2 times over the previous year. It has also signed over 
1,000 co-operation projects with other provinces and 
municipalities. 


To enhance its economic development, Inner Mongolia 
has established a number of enterprise groups which 
involve in domestic and foreign trade and technological 
exchanges. The region established 83 joint ventures 
overseas and invested in another | 30 overseas projects. 


So far, the region has signed over 600 million Swiss 
francs-worth of contracts with Russia and Mongolia 
concerning construction, export of labor and technolog- 
ical exchanges. Over 30,000 residents of Inner Mongolia 
are working overseas to fulfil these contracts. 


To expand trade relations with the outside world the 
region has set up 68 representative offices in the Com- 
monwealth of Independent Countries, the Republic of 
Mongolia and Eastern European countries, a regional 


Shanxi Suffers ‘Very Serious’ Environmental 
Pollution 


HK2605115294 Hong Kong ZHONGGUO TONGXUN 
SHE in Chinese 0328 GMT 9 May 94 


Text) Taiyuan, 9 May ‘“2HONGGUO TONGXUN 

E)}—According to the environmental protection work 
meeting of Shanxi Province which was held a few days 
ago, environmental pollution in the province has been 
very serious. With the exception of the six cities directly 
under the provincial government, which have managed 
to initially check the spreading contamination of the 
atmosphere and surface water, the ecology of medium- 
sized and small cities in the province is being increas- 
ingly disturbed, and environmental pollution in some 
villages and towns is worsening. 


FBIS-CHI-94-103 
27 May 1994 


Shanxi is China's energy and heavy and chemical indus- 
trial base. The province produces approximately 290 
million tonnes of coal a year, and its consumption of coal 
increases at a rate of about 10 percent a year. At the same 
time, it releases | million tonnes of soot and 900,000 
tonnes of carbon dioxide a year. These objective factors 
cast a shadow over Shanxi's already seriously polluted 


environment. 


The results of the monitoring of the quality of the 
atmospheric environment of 17 cities in the province 
show: The daily average value [zhi 0237} density of 
suspended particles over the year is 216 to 833 micro- 
grams per cubic meter, surpassing the state's grade- 2 
ee be of atmospheric environmental quality. The 
figure for some major cities of the province is 130 
percent higher than that for the cities in north China. 


The results of the monitoring of the 11 major rivers and 
their tributaries in the province show: Although the 
major rivers have not yet been contaminated, the river 
sections whose waters are good for drinking and indus- 
trial and agricultural purposes are very few, and 85 
percent of the river sections are contaminated to varying 
degrees. The sources of drinking water and its quality in 
many cities have thus been adversely affected. 


This grim situation has attracted great attention from the 
province's environmental departments. They expressed 
readiness to take an active part in comprehensive deci- 
sionmaking, to strengthen the building of the legal 
system, and to strive to urge the provincial people's 
cong’ess to promulgate before 1997 the “Regulations of 
Shanxi Province on Environmental Protection,” the 
“Regulations of Shanxi Province on Prevention and 
Control of Atmospheric Pollution,” and relevant admin- 
istrative rules and standards. 


Se? 9) CES Sle Cee We ye 


OW2705090994 Beijing XINHUA in English 0804 
GMT 27 May 94 


[Text] Tianjin, May 27 (XINHUA)—Tianjin is striving 
to upgrade all its state-owned enterprises with foreign 
funds in less than cight years, said a senior city leader 
here today. 


Mayor Zhang Lichang disclosed this before the opening 
of the "94 Tianjin Export Commodity Fair tomorrow 
here in this, north China's biggest port city. 


More than 300 overseas executives from many interna- 
tional consortiums and transnational corporations are 
expected to take part in the grand fair, co-sponsored by 
over ten provinces and autonomous regions in north and 
northwest China. 


The mayor first expressed his warm welcome to all the 
overseas business people who intend to attend the fair. 


coastal cities authorized in 1984 by the state to open to 
the outside world. 


As a port city it boasts a number of advantages of 


According to the latest data, by the end of March this 
year Tianjin had signed contracts for 6,682 foreign- 
funded enterprises, involving an investment totaling 7.9 
billion U.S. dollars and with a direct use of foreign funds 
of 5.35 billion U.S. dollars. 


The foreign funds used in the first quarter of this year 
jumped to 250 million U.S. dollars. 


The mayor said that there are now 15 world-renowned 
transnational companies involved in investment in 
Tianjin, including U.S. firms like Motorola, Otis and 
Coca-Cola, the Japanese companies NEC and Honda, 
Germany's Henkel, Italy's Zanussi and Hong Kong's 
Karry. 


There are eight overseas banks in Tianjin, he added. 


Zhang said that the foreign investment in Tianjin has 
two distinct features: Those who have already invested 
in Tianjin are expanding their amounts of investment 
and scale of production; and the newcomers are “vying 
with each other in looking for investment.” 


Zhang, formerly director of the Tianjin Economic Com- 
mission, a factory manager and a workshop director, said 
that the foreign investment in Tianjin is now expanding 
to different fields, including industry, agriculture, 
finance and banking, and real estate development, both 
in rural and urban areas. 


He said that the local government's policy is to “let 
foreign investors make moncy here”. 


In addition to a good climate for investment, the mayor 
said, Tianjin has great potential for further co-operation. 


REGIONAL AFFAIRS 73 


The city has, since 1983, imported more than 7,000 


that need to be improved in the coming few years, he 


As a result, more foreign funds will be needed to upgrade 


ee, Coe 


SK2605 112394 Tianjin People's Radio in Mandarin 
2300 GMT 25 May 94 


[Text] On the morning of 25 May, Mayor Zhang Lichang 
presided over the 22d routine meeting of the municipal 


medical insurance of staff members and workers and the 
report given by the leading group in charge of coastal 
area development on the plan for developing key coastal 
regions and the neighboring areas of coastal regions. 


It was agreed in principle with ait the meeting the 
opinions provided by the investigation and study group 
with regard to first conducting the pilot work of medical 
insurance in the municipality, trying to find out experi- 
ence, gradually broadening the range of insurance, and 
finally having the medical insurance be fully underway. 


During the nxeeting, Zhang Lichang stressed: The pilot 
work of coructing reform in medical insurance has a 
bearing on che personal interest of the broad masses of 
staff meroers and workers and on social security. This is 
an important work concerning policies and involving in 
the whole people. Efforts should be made to enhance the 
leadership over the pilot work of conducting reform in 
medical insurance so as to enable the medical insurance 
system to enter a way of benign cycle. 


During the meeting, the participating personnel 


ment work of the following three aspects: |) The devel- 
opment of coastal regions. 2) The development of the 
neighboring areas of coastal regions. 3) The 10-year 
development targets for the neighboring areas of coastal 
regions. 


74 REGIONAL AFFAIRS 


estes Ge marten, Spee ae Seen See 
out: Developing the neighboring areas of coastal regions 
by means of the development of these regions represents 
a measure with strategic nature. The obviously stro7g 
points in communications and [words indistinct] pos: 
sessed by the neighboring areas of coastal regions in the 
municipality are more than those possessed by other 
provinces across the country. Therefore, _—— 
the neighboring areas, it is necessary to (?conduct reform 

and opening up; to achieve development group by 
group;) and to bring the enthusiasm of various social 
circles into play. To be successful in this regard, efforts 
should be made to master the plan; to study the policies; 
and to successfully foster coordination to promote devel- 
opment. We should correctly study the policy of utilizing 
foreign capital and carry forward the existing good trend. 
We should grasp the work in this regard more intensively 
than before. Only by uniting as one and making all-out 
efforts to work hard will units from top to bottom across 
the municipality totally be able to turn the neighboring 


areas into new economic growing points. 


Lastly, Zhang Lichang stressed: In fulfilling the annual 
tasks, time has almost come to a half. Success or failure 
in the first half has a direct bearing on the development 
in the second half and on the people's confidence in 
accelerating the development in Tianjin. A good job 
must be done in conducting work in various fields with a 
high standard and a strict demand and in ensuring the 
work in various fields to reach a new level. 


Tianjin Holds Enterprise Transformation Meeting 
SK2605101194 Tianjin TIANJIN RIBAO in Chinese 13 
May 94 pp I, 2 


[Excerpt] Yesterday, Tianjin Municipality held a mobi- 
lization mecting on grafting, readjustment, and transfor- 
mation of state-owned large and medium-sized enter- 
prises, calling on state-owned large and medium-sized 
enterprises across the municipality to take actions imme- 
diately, conscientiously implement the guidelines of the 
second session of the sixth municipal party committee 
and of the municipal economic work conference, seize 
the opportunity, accelerate development, realize the 
fighting objective of gencrally conducting grafting, read- 
justment, and transformation in all state-owned large 
and medium-sized enterprises, and contribute to invig- 
orating Tianjin’s economy. 


Municipal leading comrades Zhang Lichang, Li Sheng- 
lin, Li Huifen, and Zhang Haosheng, responsible com- 
rades of relevant commitices, offices, and bureaus, and 
party and administrative top leaders of state-owned large 
and medium-sized enterprises attended the meeting. 


Zhang Lichang gave an important speech at the meeting. 
He said: Tianjin’s development of situation is very 
encouraging. During the first quarter of this year, the 
achievements in several major economic norms were the 
best during recent years. The four major fighting objec- 
tives of “3-5-8-10" proposed by the municipal party 
commiuttce and the municipal government are greatly 


FBIS-CHI-94-103 
27 May 1994 


supported by the broad masses of people, and the pop- 
ular morale is greatly boosted. Using a period of cight 


ee TG bie ae a ie ee 
“waiting for, relying on, and asking for help” in the 
course of changing the backward outlook of enterprises 
and that we must ourselves. It 1s necessary to 
fully mobilize the masses to “show their special talents.” 
Al present, we are facing a very favorable international 
and domestic macro environment. As long as the upper 
and lower levels across the municipality seck unity of 
thinking, strengthen confidence, work on their own 
initiative, take voluntary actions, develop cooperation at 
home, conduct grafting externally, and try by all possible 
means to use domestic and foreign funds, all difficulties 
will be resolved, old enterprises will be rejuvenated, and 
Tianjin will have great hope. 


Li Huifen addressed the meeting. He si id: Since the 
beginning of this year, with the spirit of 1: ever delaying 
the work of one day, the municipal relevant departments 
have conducted lots of investigations to know the real 
situation and to determine the enterprise category, size, 
and planning work. In line with the actual municipal 
situation, at present, we have designated 748 enterprises 
as the ‘s state-owned large and medium- 
sized enterprises, of which three are exceptionally large 
enterprises, 138 are large enterprises, and 607 are 
medium-sized enterprises. At present. cle) depart- 
ments have formulated plans for enterprise grafting, 
readjustment, and transformation. These plans have 
defined a high starting point, clear ideas, and explicit 
objectives, and placed the resting point on raising eco- 
nomic efficiency, cultivating new economic growing 
eee eT eee 


Li Huifen set forth demands on successfully conducting 
grafting, readjustment, and transformation in state- 
owned large and medium- sized enterprises. She said: It 
is necessary to fully understand the major significance in 
successfully conducting enterprise —— readjust- 
ment, and transformation work. The four major fighting 
objectives of “3-5-8-10" is an important policy decision 
of the municipal party committee and government for 
invigorating Tianjin’s economy. Of this, using cight 
years or so to generally conduct grafting, readjustment, 
and transformation in state-owned large and medium- 
sized enterprises is the basis and requirement of these 
four objectives and where the key to realizing the four 
objectives lies. Without the sustained and steady devel- 
opment of the industrial economy, it is impossible to 
quadruple the GNP of the whole municipality three 
years ahead of schedule, it is also difficult to renovate 
dangerous and shabby houses if enterprises have diffi- 
culties and workers have no moncy to do it; and in 
building coastal new areas, it is necessary to have stable 


FBIS-CHI-94-103 
277 May 1994 


social environment and economic conditions. Judging 
from Tianjin's present situation of state-owned large and 


nomic efficiency. [passage omitted] 


's Tech Sector Attracts F 
Tianjin'’s High- oreign 


OW2505 121594 Beijing XINHUA in English 0748 
GMT 25 May 94 


[Text] Tianjin, May 25 (XINHUA)—Overseas invest- 
ment into the Wugqing High-Technology Development 
Zone in this north China port city has risen rapidly this 
year. 

are now 


The latest figures show that in the zone there are 
the 


energy 
of 1.7 billion yuan. Some 69 of them are funded by firms 
nag ly en pb te ge py 


by Hong Kong and Taiwan companies, 
ceemees tava of baaan OS tale, 


The Wuqing zone, one of the first high-tech development 
zones approved by the state, covers an area of 24.8 sq 
km. As an important part of north China's “Silicon 
Valley”, Wuqing is quite different, in several ways, from 
other development zones alongside the Beijing- Tianjin 
Expressway. 


It will be built into a high-tech park, with two 
lakes in the center of the zone. Around the lakes will be 
villas in different styles which are well on the way to 
completion. 


Currently, within the zone a Japanese-funded quartz 
resonator proyect has gone into trial operation, with an 
investment of five billion yen. 


A musical instrument manufacturing and supply center, 
one of the biggest in the world and financed by a Taiwan 
firm, is expected to be operational in five years. It will 
cover an atca of 10 ha and its investment totals 28 
millon U.S. dollars. 


To meet the demands of the fast-growing overseas 
investment im the zone, the administration committee 
has decided to provide another 200 million yuan to step 


REGIONAL AFFAIRS 7S 


up infrastructure construction, including a multi- 
function hall, hotels, apartment houses, a customs 
building and a bilingual high school. 


Overseas Investment Flows Into Tianjin 


OW2505 130994 Beijing XINHUA in English 1024 
GMT 25 May 94 


[Text] Tianjin, May 25 (XINHUA)—North China's big- 
gest industrial city of Tianjin has gained a record influx 


Analysts here attributed the fast expansion of overseas 
eration and the local government's policies of opening 


and Cleaning Products Co., Lid., said 
that Tianjin has better infrastructural facilities, 


ee ee a 


simple,” Sentaro Negoro, director general manager of 
the Tianjin (Earth) Chemical Co , Lad., iuid XINHUA. 


While many overseas investors value the industrial bases 
in the city, other transnational high-tech firms are 
attracted to the abundance of well-cducated workers 


% REGIONAL AFFAIRS 


provided by the numerous institutions of higher learning 
and research institutes here. 

After a seven-year investigation throughout China, the 
U.S. firm Motorola decided to build its company in 
Tianjin. 

C. W. Ko, manager of Tianjin Motorola's Human 
Resource Department, said that the majority of the 
1,000 Chinese employees of the firm are graduates from 
universities and colleges, and many of them have 
received master’s or doctor's degrees. 

“In Tianjin, we can make contact with all kinds of 
professional workers our company needs,” he said. 

He said that Tianjin is an old industrial city. The 
dedication of Tianjin’s workers benefits the long-term 
mvestment here. 


Not long ago, after careful scrutiny into the investment 
environment here, Novo Nordisk, the world’s biggest 
producer of industrial enzymes, invested 250 million 
U.S. dollars in Tianjin to build a modern biological 
products plant. 

Almost all the transnational companies in Tianjin spoke 
highly of the efforts by the local government to create a 
good environment for foreign investment. 

The German Manager Hahnel said the government here 
knows very well what to do for the foreign investors and 
how to help them start a business and run it well. 


An overseas-funded food company said that the govern- 
ment always pays close attention to suggestions and 
complaints the joint ventures raise, regarding such mat- 
ters as environmental protection. 


However, much remains to be done to improve the 
investment environment in the city. It is not so easy for 
overseas investors and visitors to find comfortable apart- 
ments or office buildings. They often have to wait a long 
time for accommodations after first arriving. 

As a result, the city has now stepped up the pace on 
construction of such buildings. A dozen new buildings 
are now under construction and expected to be com- 
pleted in the near future. 


Some overseas real estate investors have contracted for 
building luxury hotels here, according to a local official. 


Tianjin Harbor Opens Commodity Exhibition 
Center 


SK270S085994 Tianjin TIANJIN RIBAO in Chinese 13 
May 4 pl 


rt} On 12 May, the International Commodity Exhi- 
son and Sales Center in the bonded area of Tianjin 
arbor held an open-for-business ceremony. The estab- 
ushment of the center will facilitate the bonded area's 
participating im international market competition and 
connecting the domestic and international market. 


management committee of the bonded arca, invested by 
the Bonded Arca 


ij 
i” 
J 
= 
: 
: 
i 


i 
Th 
ees 

i 


| 
; 
| 


HHH 
L 
: 
i 


prises from countries and regions such as the United 
States, Netherlands, Japan, Korea, Taiwan, Hong Kong 


The enterprises enter: the center enjoy not only all the 
preferential policies the bonded arca but also the 


Part-Time Jobs Attract More Tianjin College 
Students 


OW 2605121994 Beijing XINIIUA in English 0731 
GMT 26 May 94 


[Text] Tianjin, May 26 (XINHUA)—More and more 
Chinese university students are now taking part-time 
jobs to carn extra pocket moncy and to test their wings in 
the larger social arena. 


In Tianjin, the north China's biggest industrial city, the 
number of college students who have taken part-time 
jobs is estimated at more than 50 percent. 


Many of the studen‘s are likely to take part-time jobs on 


campus, as laboratory and library assistants or as tutors, 
receptionists, door keepers and porters. 


FBIS-CHI-94-103 
27 May 1994 


Tan Huijun, a senior student of the Management 
Department of Nankai University, has netted a monthly 
pay of 100 yuan offering a daily two-hour service at a 
roller-skating court. Wei Shangfeng, a sophomore of the 
Thermal Energy Department of the Tianjin University, 
gets a monthly pay of 50 yuan by doing cleaning in the 
campus. 


A student affairs official with Tianjin University said 
great changes have taken place among today’s students. 
More and more students believe that they should try 
their best to support themselves through their own labor, 
he said, adding that they are not willing to rely on their 
parents entirely. 


To encourage students to work hard on their subjects 
while taking part-time jobs, the authorities of Tianjin 
universities and colleges have formulated relevant regu- 
lations governing part-time work. 


Northeast Region 


Heilongjiang Secretary Visits Army Units 


SK2705071094 Harbin Heilongjiang People’s Radio 
Network in Mandarin 1000 GMT 26 May 94 


[Text] On the morning of 26 May, Yue Qifeng, secretary 
of the provincial party committee, visited a certain 
combined arms army of the provincial military district 
stationed in Harbin and the officers and men of a certain 
army institute in Harbin. He encourages cadres and 
soldiers to emancipate their minds, study the major 
tactics well, and make contributions to Heilongjiang’s 
social stability and economic development. 


Acting Governor Tian Fengshan, Shan Rongfan, deputy 
secretary of the provincial party committee, and Wang 
Xinmin, secretary general of the provincial party com- 
mittee, participated in the visiting activities. 


At the institute of a certain army unit stationed in 
Harbin, Yue Qifeng carefully listened to briefings and 
asked in detail about the training and living of officers 
and men. Yue Qifeng said: Economic development can 
never be separated from the army, and a modernized 
army must also rely on economic development. He 
called on the institute to train more qualified personnel 
and to exert efforts to and offer plans for strengthening 
the national defense force and developing the local 
economy. 


Al a certain combined arms army stationed in Harbin, 
Yue Qifeng highly affirmed the contributions to local 
development and stability of the new generation of 
officers and men defending the border areas and 
expressed hope that the local people and the army will 
jointly emancipate the mind, help each other, and invig- 
orate Heilongjiang. 


Yue Qifeng said to the leading comrades of the provin- 
cial military district: It is necessary to organize the 
militia to actively develop the processing, aquaculture, 


REGIONAL AFFAIRS 77 


and [words indistinct] industries. On hearing that militia 
have contributed to township enterprises, he expressed 
appreciation and pointed out: All cadres and soldiers 
should be organized to study professional knowledge. 
We have 2 good prospect for training dual-purpose 
personnel and making them play a part in the main 
economic battlefield. 


Yue Qifeng, secretary of the provincial party committee, 
emphatically pointed out: The key to ing eco- 
nomic development is to emancipate the mind and 
change concepts. Once the concepts are changed, tre- 
mendous potentials will be seen. Those who rapidly 
change their concepts will gain the initiative. 
Heilongjiang is quite strong in natural resources, trained 
personnel, science and technology, and the quality of the 
masses. As long as it breaks away from the planned 
economy on its own initiative and rapidly enters the 
market economy, it will achieve great development. 


CIS Veterans Delegation Visits Heilongjiang 
SK2705084494 Harbin Heilongjiang People’s Radio 
Network in Mandarin 1000 GMT 26 May 94 


{Text} On the morning of 26 May, Zhou Wenhua, 
chairman of the provincial committee of the Chinese 
People’s Political Consultative Conference [CPPCC], 
met with the CIS veteran soldiers visiting delegation led 
by (Babulin), chairman of the Veteran Soldiers Com- 
mittee of the CIS. Most of the delegation members once 
visited China during war time during which they fought 
side by side with the Chinese army and people and 
established profound friendship with them. 


On behaif of the provincial CPPCC Committee, Zhou 
Wenhua extended deep respect to these veteran soldiers. 
He briefed the guests on our province's situation as well 
as the economic development situation since the starting 
of reform and opening up, and answered their questions 
on trade union work, the pension system, and placement 
for retired cadres. 


Zhou Wenhua pointed out: Heilongjiang Province has 
the two major advantages of being contiguous and com- 
plementary in developing economic and trade coopera- 
tion with the CIS countries. At present, the interregional 
economic relations have developed from economic and 
trade relations in the past into a new stage of economic 
and technological cooperation. There are broad pros- 
pects for cooperation between both sides. 


The 10-member CIS veteran soldiers delegation was 
invited by the national CPPCC Committee and arrived 
in Harbin city by plane yesterday evening. Accompanied 
by Dai Moan, vice chairman of the provincial CPPCC 
Committee, the delegation members zealously visited 
Harbin Flax Plant and (Tianhua) Garment Plant which 
was jointly funded by Harbin and Russia, and laid a 
wreath at the tombs of the Soviet Red Army soldiers. 


78 REGIONAL AFFAIRS 


Greater Rural Reform Urged in Heilongjiang 
SK2605 144994 Harbin HEILONGJIANG RIBAO in 
Chinese 16 May 94 p 6 


{Article by Guo Baofu (6753 1405 4395) entitled 
“Deepen Rural Reform And Vigorously Carry Out the 
Shareholding Cooperative System™] 


[Text] The implementation of the shareholding cooper- 
ative system is a key breakthrough in the rural property 
right system as well as a great creation by the Chinese 
peasants following the implementation of the system of 
contracted responsibility on the household basis with 
payment linked to output and the sudden emergence of 
town and township enterprises. Practice shows that this 
system conforms to the development and the changes of 
the rural situation; satisfies the broad masses of the 
peasants’s urgent demands and strong desires for 
defining collective property rights, conducting property 
cooperation, and expanding the scale of production and 
management; and accelerates the pace of having the 
peasants become fairly well-off. 


Just as what we did in those years to carry out the system 
of contracted responsibility for production, we should 
persistently proceed from reality to develop share- 
holding cooperative enterprises, fully respect the enthu- 
siasm and creativeness of the masses, give free reins to 
the development of these enterprises, adopt different 
forms according to different actual conditions, try every 
possible means to expand the scale of the implementa- 
tion of this system and to accelerate the implementation 
pace, not stick to one pattern, and not demand unifor- 
mity. To encourage the development of shareholding 
cooperative enterprises, we should formulate preferen- 
tial policies on developing such enterprises; regard such 
enterprises as collective ones; give them preferential 
treatment in the scale of management and in the aspects 
of management, new product development, technolog- 
ical transformation, capital input, tax reduction and 
exemption, industrial and commercial management, and 
capital construction; and create conditions for devel- 
oping such enterprises. 


Now, the shareholding cooperative enterprises in the 
rural areas can roughly be divided into four categories as 
follows: The enterprises of the first category are set up by 
pooling capital from among the people. With township 
and village cooperative economic organizations acting as 
go-between, the peasants are voluntarily organized to 
manage the projects through accurate selections and 
according to the agreements that they have attained. 
Those whose stocks amount to a large proportion or 
technicians should be enterprise leaders. The enterprises 
of the second category are set up by collectives with 
shares. Township and village collectives can become 
shareholders by offering land, workshops, equipment, 
and means of production as well as investing some 
money. Peasants can become shareholders by investing 
money. Shareholders can enter plants with capital or 
make investment instead of labor. All shareholders can 


FBIS-CHI-94-103 
27 May 1994 


draw extra dividends. The enterprises of the third cate- 
gory are organized by various sectors. These enterprises’ 
shares are owned by peasants, enterprises, township and 
village collectives, and society. Boards of directors will 
assume responsibility for the management of these enter- 
prises. The enterprises of the fourth category are set up 
through joint management and cooperation. As share- 
holders, urban and rural institutions and their staff 
members and workers can cooperate with rural collec- 
tives to develop projects and run enterprises, break with 
the bounds of trades, and become shareholders by 
offering capital, technologies, land, and other production 
factors. Besides the aforementioned four categories, we 
should persist in various forms in the course of develop- 
ment, respect the aspirations of the masses, avoid rigid 
mediation, and ensure the sound development of the 
shareholding cooperative enterprises. 


At the time of vigorously running shareholding cooper- 
ative enterprises, we should focus the change of enter- 
prise mechanisms on transforming the existing enter- 
prises into shareholding cooperative ones. Through the 
forms of converting into stocks and expanding stocks, we 
should transform the existing enterprises into share- 
holding cooperative ones, further define property rights, 
intensify the staff and workers’ awareness of being the 
masters of enterprises, perfect the enterprise democratic 
management and supervision mechanisms, guarantee 
and increase the value of enterprise assets, and enhance 
the reserve strength for enterprises’ development. In the 
course of transformation, we should give different 
instructions to different enterprises. We should proceed 
from the increment of enterprises’ property and pro- 
mote, in a step- by-step manner, the transformation of 
enterprises first from those in danger and with difficul- 
ties and those in urgent need of expanding the scale of 
production. Practice shows that the following five enter- 
prise transformation patterns can vigorously be carried 
out: First, the pattern of one enterprise with various 
systems. The enterprises which are on a larger scale and 
have larger amounts of debts and the difficulties in 
continuing their management are allowed to have parts 
of their enterprises with vitality carry out the share- 
holding cooperative system. The rest parts should be 
auctioned, rent, or managed on a mortgage or contracted 
basis. That is, an enterprise can carry out various sys- 
tems. 


These enterprises’ debts should be repaid year afier year 
by their head plants which rely on collecting rent and 
contracted charges. Second, the pattern of measuring 
property. The enterprises whose plants are built with 
collective investment, whose property value has 
increased by a big margin, and whose staff members and 
workers have made great contributions as well as those 
with small profits and capability to maintain their pro- 
duction should thoroughly conduct transformation by 
sorting out and assessing property, defining property 
rights, and converting property into stocks and mar- 
keting these stocks to rural collectives, enterprises, and 
staff members and workers. Third, the pattern of incre- 
ment of property. The enterprises with good economic 


FBIS-CHI-94-103 
27 May 1994 


results, readily marketable products, and appropriate 
prospects for development but in need of more working 
funds to develop new projects, to increase new products, 
and to expand the scale of production and management 
should externally draw stockholders and investment to 
expand the increment of property and internally define 
property rights to staff members and workers. Simulta- 
neously, a portion of these enterprises’ stocks should be 
controlled by rural collectives and the rest should be 
marketed to society. Fourth, the pattern of transferring 
property rights. The enterprises with less property, small 
profits, or deficits; on a smaller scale; and without hope 
to change their situation within a short period of time 
under the restrictions of objective conditions should sort 
out and evaluate their property, fix prices for them- 
selves, and market themselves to stockholders so that 
they will become shareholding cooperative enterprises 
without collective money paid for shares. Meanwhile, 
rural collectives shouid withdraw the money from mar- 
keting property rights to develop another new enter- 
prises. Fifth, the pattern of shareholding companies. The 
enterprises with different scales, economic results, and 
management forms as well as with certain difficulties in 
independent development and that supplement with one 
another to a certain extent through cooperation should 
be organized into shareholding cooperative companies 
with key enterprises playing a dominant role. These 
companies can rely on their collective advantages to 
pioneer markets. 


In line with the principles of development before stan- 
dardization, of standardization in the course of develop- 
ment, and of transformation after standardization, we 
should standardize the systems governing formulating 
regulations, defining property rights, setting up organi- 
zations, exercising management, distributing extra divi- 
dend, and making guaranteeing measures so as to orga- 
nize, perfect, transform, and standardize town and 
township enterprises’ shareholding cooperative systems. 
First, it is necessary to scientifically calculate stocks and 
reasonably define stock rights. According to the princt- 
ples of voluntary purchases of stocks, of equality 
between shareholders, of shareholders with the same 
amounts of stocks being distributed with the same 
amounts of profits, and of sharing profits and running 
risks on equal terms, we should mainly establish stocks 
for the rural areas, society, social legal persons, foreign 
investors, and individuals. We should define the total 
volume of enterprise stocks and the price for each stock 
to enable all the staff members and workers of the newly 
built enterprises and the enterprises whose increment 
has been expanded to buy enterprise shares so as to 
enhance their enthusiasm and sense of responsibility to 
run the enterprises well and to enable their staff and 
workers to have both rights and duties and not only to 
participate in management but also to run risks. The 
staff members and workers of these enterprises must not 
gct a refund for their stocks. The shareholders who are 
not working at enterprises should neither be engaged in 
management and policy-making nor get a refund of their 
money for shares before expiration of their terms. But, 


REGIONAL AFFAIRS 79 


they can be distributed with fixed amounts of dividends. 
To ensure that enterprises have sufficient reserve 
strength for development, we should define enterprises’ 
property accumulated by enterprises themselves and 
added through state tax reduction and exemption as 
enterprise stocks. The profits distributed to enterprises 
according to the enterprise stocks can only be retained by 
enterprises for use to expand production. That is, enter- 
prise stocks must not be obtained by any individuals. 
Second, it is necessary to perfect organizations, regula- 
tions, and systems. To strengther the leadership and 
management of the shareho’'ing cooperative enter- 
prises, these enterprises should set up the systems to hold 
meetings of shareholders and shareholders congresses. 
These meetings and congresses can elect and produce 
boards of directors and boards of supervisors; define 
rights and duties for the boards, methods for producing 
enterprise legal persons, management strategies, 
methods for establishing and managing funds paid for 
shares, and major policies on distribution of profits; 
formulate enterprise regulations and systems for man- 
agement of financial affairs, labor, materials, and quality 
to standardize enterprises’ activities. Third, we should 
take all aspects into consideration and achieve the dis- 
tribution of profits. We should focus the standardization 
of shareholding cooperative enterprises on distribution 
of extra dividends; take into consideration the profits of 
owners, managers, and producers; ensure the payment of 
various taxes to the state; guarantee that enterprises have 
sufficient reserve strength for development; combine the 
principle of distribution according to work with that of 
distribution according to stocks; and accurately handle 
the ratios in the distribution of labor wages. According to 
the demands for expansion of production, enterprises 
should annually obtain a portion of after-tax profits, 
convert this portion of money into stocks, and distribute 
these stocks to shareholders for use to expand produc- 
tion. The enterprises that are in the initial stage of 
carrying out the shareholding cooperative system are 
allowed to carry out the policy on retaining interests and 
distributing extra dividends so as to encourage increas- 
ingly more people to buy stocks and to become major 
shareholders. The interests of the money paid for stocks 
should be listed into production and management costs. 
Shareholding cooperative enterprises should be treated 
as rural collective enterprises, enjoy all preferential pol- 
icies, and draw and use various special funds according 
to the standards for collective enterprises. 


Jilin Religious Affairs Bureau Meeting Ends 


SK 2605100994 Changchun Jilin People’s Radio 
Network in Mandarin 1030 GMT 25 May 94 


[Text] The two-day provincial meeting of religous 
affairs bureau [words indistinct] directors ended today. 
Yang Tongxiang, deputy director of the Bureau of Reli- 
gious Affairs of the State Council, made a special trip to 
the province to attend today’s meeting and gave a 
speech. 


80 REGIONAL AFFAIRS 


This meeting was devoted to relaying and implementing 
the guidelines of the provincial meeting of religious 
affairs bureau directors held early this year, summing up 
Jilin Province’s religious work over the past two years, 
analyzing the situation, clearly defining the tasks, 
making arrangements for the province's religious work 
for some time to come, discussing and studying how to 
make further success in religious work, and serving the 
whole province's economic development and social sta- 
bility. 


The meeting held that the whole province's religious 
work situation is good and the achieverrents are notice- 
able. However, we should aiso recognize that some 
destabilizing factors have still existed in our religious 
sphere which merit our high attention and efforts to 
strengthen coordination work. 


The meeting pointed out: The main tasks of the whole 
province's religious work this year are to enhance the 
sense of service, carry out religious work in connection 
with the central task of economic construction, properly 
solve all sorts of problems in the religious sphere, serve 
social stability, conscientiously study, publicize, and 
implement the two religious administrative measures, 
strengthen management over religious affairs in line with 
law, extensively and deeply conduct education on patri- 
otism and socialism among people in the religious circles 
and among the masses of religious believers, strenuously 
strengthen patriotic forces, and strive to strengthen the 
ranks of religious work cadres. 


Liaoning Official Comments on Organizational 
Reform 

SK2505 150694 Shenyang LIAONING RIBAO in 
Chinese 13 May 94 p 1 


[By reporter Liu Zhiyun (0491 1807 0061) “Carry out 
Organizational Reform, Boost Large and Medium-Sized 
Enterprises, Enhance the Organizational Construction”] 


[Text] The provincial people's government held a 
meeting with the participation of responsible comrades 
from various departments and units under the provincial 
people's government on 11 May to make arrangements 
for the three tasks of implementing the “three definitive- 
ness” plan for conducting organizational reform among 
the subordinate departments of the provincial people's 
government, of boosting the large and medium-sized 
enterprises, and of enhancing the organizational con- 
struction of the provincial people's government. 


Vice Governor Xiao Zuofu presided over the meeting 
and Executive Vice Governor Wen Shizhen delivered a 


speech at it. 
Wen Shizhen said: We should vigorously grasp the 


implemeniatior of the appraised “three definitiveness” 
plan for conducting organizational reform among 42 
departn)-\s oder the provincial people's government. 
We sho ve to put the plan in place by the end of 


May and carry out the reform in line with the demands 


FBIS-CHI-94-103 
27 May 1994 


set in the plan in June. For this, he put forward the 
following demands in his speech: 


First, various departments should break down the 
existing functions of their own. Then, in line with the 
demands of developing the socialist market economy, 
they should analyze and distinguish the functions one by 
one so as tc determine which should be enhanced, which 
should be weakened, and which should be transferred. 
Only by clarifying these issues can we define the size of 
internal organs and staffers in line with the principle of 
“assigning personnel according to the work”. 


Second, by proceeding from the whole situation, various 
departments must adopt resolute measures to implement 
the staff size approved for internal organs and the 
number of posts approved for leading personnel. They 
must be determined to fulfill the simplifying tasks of 
organizational reform. Based on the existing number of 
sections and offices, we should simplify them by cutting 
30 percent of them and chiefly reduce the organs that are 
conducting self-management and self-service. 


Third, we should vigorously make proper arrangements 
for the surplus personnel and be determined to broaden 
the channels of personnel transfer. We should also 
encourage organs’ cadres to open economic entities, to 
rend an enterprise, and to find a job in enterprises and 
establishments. Personnel whose age is near to retire- 
ment will be allowed to retire from their post ahead of 
time. Meanwhile, we should clear up the TDY personnel 
of organs. 


Fourth, we should explore reforms for the managerial 
systems of cadres and enforce personnel exchanges. 


Fifth, we should vigorously promote the reform among 
estabiishments and units. Through the reform we should 
differentiate the leading system, organizational estab- 
lishment, staff size control, and the systems of personnel 
affairs and distributions of these establishments and 
units from those of the party and government organs. 
Efforts should be made to cut the number of units and 
personnel who are living on “royal grains”. 


While citing the issue of boosting the large and medium- 
sized state-owned enterprises, Wen Shizhen said: Cur- 
rently, most large and medium-sized state-owned enter- 
prises have not been enlivened. Particularly under the 
new situation of accelerating the establishment of 
socialist market economic systems, the pace in enliv- 
ening these enterprises has been difficult. It must be 
noted that through the reform and construction con- 
ducted over the past many years, these state-owned 
enterprises have possessed strong and actual strength in 
the economy and laid a solid technical foundation. They 
have also possessed a large number of talented personnel 
outstanding in science, technology, and management. 
Under the new situation, only by truly doing away with 
the fetter caused by the out-dated systems; straightening 
out their ideas of development, and concentrating their 
efforts on shifting the mechanism, conducting reform 
and readjustment, opening markets, and enhancing the 


FBIS-CHI-94-103 
27 May 1994 


management; can these enterprises bring their tremen- 
dous potential into play and be fully brimming with 
vigor and vitality. 

In citing the issue of enhancing the organizational con- 
struction of the provincial people’s government, Wen 
Shizhen said: The provincial people’s government has 
decided, by regarding the implementation of the “three 
definitiveness” plan as a turning point, to carry out 
consolidation among its subordinate organs and to fur- 
ther enhance the organizational construction so as to 
enable the organs under the provincial people's govern- 
ment to meet the demands of developing the socialist 
market economy and to better perform their duties. He 
urged these organs to regard their leading body as a focal 
point in enhancing the organizational construction. 
Efforts should be made to establish a system under which 
organs hold responsibility for the attainment of certain 
objectives in work. He also urged them to unswervingly 
wage the struggle against corruption and the campaign of 
encouraging administrative honesty and to resolutely 
score new results in the struggle and campaign. These 
organs should intensively formulate regulations and 
rules in various fields and strictly enforce their work 
discipline so as to meet the demands of their new 
functions. They should also further emancipate minds, 
heighten their spirit, and implement their work in var- 
ious fields in a down-to-earth manner. 


At the meeting, Vice Governor Xiao Zuofu announced 
the opinions of the provincial people's government with 
regard to appraising again the staff size of working 
departments and the number of the leading posts of 
internal organs. In his report, the deputy secretary gen- 
eral of the provincial people's government described the 
work plan of the guiding group in charge of enlivening 
the large and medium-sized state-owned enterprises. 


Attending the meeting were vice governors of the prov- 
ince, including Cong Zhenglong, Gao Guozhu, and 
Zhang Rongming, and responsible comrades from var- 
ious departments and units under the provincial people's 
government—more than 200 persons in all. 


Liaoning’s Liaoyang City Gives Aid to Poor 
Workers 


SK 2605111794 Shenyang Liaoning People’s Radio 
Network in Mandarin 1000 GMT 25 May 94 


[Text] The activities jointly sponsored by the Liaoyang 
City Trade Union Council and the city management 
committee in charge of the affairs of retired staff mem- 
bers and workers with regard to giving a helping hand to 
the poor households are being carried out in an orga- 
nized and planned way. In 1994 the city as a whole will 
raise one million yuan of funds through various channels 
to help the households of staff members and workers 
deal with their living difficulties. The city has also 
decided to issue certificates to the households of staff 
members and workers who are encountering exceptional 
difficulties in livelihood and to allow their children to 
enjoy the priority of opening a business of tertiary 


REGIONAL AFFAIRS 81 


industry. The departments concerned have also given 
preferential policies to these households. 


Northwest Region 


parents Sasteas Weapans See fer 
Se 


HK2405 152494 Hong Kong MING PAO in Chinese 22 
May 94 p B6 


(“Newsletter From China: "Atomic and Hydrogen 
Bomb Experiment Base in Qinghai To Be Demilitarized 
and Used as the Site for a Development Zone“] 


[Text] China's first nuclear weapons research and devel- 
opment base is located along side the Qinghai Lake in 
Haiyan County of Qinghai Province. As China's first 
atomic bomb and first hydrogen bomb were successfully 
developed there, people call it the “two-bomb base.” 


On entering the “two-bomb base,” what one sees first is 
a monument. The inscription, “China's First Nuclear 
Weapons Research and Development Base,” was written 
by General Zhang Aiping. 


The “two-bomb base” was built in 1958, and its formal 
name was the State-Owned 221 Plant. In those days, a 
number of nuclear specialists, under the direction of by 
Marshal Nie Rongzhen, gathered here to research and 
develop atomic and hydrogen bombs. During the six 
years between 1958, when the construction of the base 
started, and 1964, China succeeded in conducting an 
experiment with its first atomic bomb. Two years later, 
China succeeded in developing its first hydrogen bomb 
there. Over the past years, China has produced many 
atomic and hydrogen bombs at the base. 


In those years, the “two-bomb base” was very myste- 
rious. For the sake of keeping secrets, the “two-bomb 
base” was called the Qinghai Provincial Mining Zone by 
outsiders. The base was an independent “smali society,” 
and all activities of its personnel were carried out within 
the base. Even the dead had to be cremated inside the 
base, and their remains were not allowed to be removed. 
In 1987, the State Council gave its approval to closing 
down the base, and the personnel was pulled out one 
after another. 


At present, the former site of the “two-bomb base™ has 
become the seat of the Haibei Zang Nationality Auton- 
omous Prefecture Government of Qinghai Province. 
Because of the enormous scale of the “two-bomb base,” 
the transfer work has not been officially completed. Next 
month, the Beihai Autonomous Prefecture will officially 
sign a transfer contract with the China National Nuclear 
Industry Corporation. 


In those years, the people of the Beihai Autonomous 
Prefecture, those of Haiyan County in particular, paid a 
tremendous price for the construction of the “two-bomb 
base.”’ They vacated more than 1,100 sq. km (equivalent 
to the total area of Hong Kong, Kowloon, and the New 


82 REGIONAL AFFAIRS 


Territories) of their best pasture land for the base. The 
prefecture still has no large industrial enterprises. 


The fixed assets of the base at the time of its closure were 
over 100 million renminbi, after depreciation on the 
basis of their price in 1958. 


A specialist maintains that a base of the same size could 
not be built for less than several billion yuan today. The 
amount of this “legacy” is quite enormous. It includes 
560,000 sq. m of buildings inside plant premises, 
330,000 sq. m of production buildings, more than 40 km 
of special railway lines which converge with the Qinghai- 
Tibet Railway Line, nearly 80 km of standard highways, 
1,000 six-digit computer-controlled telephones, and one 
thermal power plant with an annual generating capacity 
of 110 million kwh. These facilities can be used with 
slight alterations. They have suddenly turned Haibei 
Autonomous Prefecture into an area with the most 
convenient transportation facilities, the most complete 
production and daily life facilities, and the best environ- 
ment for investment among other prefectures and coun- 


ties of Qinghai. 


The Haibei Autonomous Prefecture Government has 
designated the former site of the “two-bomb base” as a 
“small zone for nationality economy development” and 
has formulated a series of preferential policies for invest- 
ment. At present, the feasibility study on the Haibei 
Autonomous Metal Sodium Plant, the Electrolyte Alu- 
minum Plant, the Soda Ash Plant, and the Caustic Soda 
Plant has been approved and put on record, and the 
construction of these projects will soon start on the 
former site of the “two-bomb base.” Besides, the Haibei 
Autonomous Prefecture has also planned to build a 
series of other projects, including a power plant, an 
aluminum plant, a magnesium plant, and a carboniza- 
tion plant. Most of these projects are Sino-foreign joint 
ventures, and the letters of intent for some of them have 
already been signed. 


Qinghai Forging Closer Overseas Economic Ties 


OW 2505020194 Beying XINHUA in English 0141 
GMT 25 May 94 


[Text] Xining, May 25 (XINHUA)}—North-west China's 
Qinghai Province has been forging closer overseas eco- 
nomic ties to promote local economic development. 


Last month, a delegation of the province visited the 
United States to solicit business and netted 533 million 
U.S. dollars’ worth of investment intentions. 


This formed a sharp contrast with the situation in 1980, 
when the province exported a mere 4.02 million U.S. 
dollars’ worth of goods, all just to Hong Kong and 
Macao. 


In 1993, the province exported 190 million US. dollars’ 
worth of products to over 120 countries worldwide. 


By the end of 1993, the province had seen the pouring-in 
of 430 million U.S. dollars’ worth of investments by 


FBIS-CHI-94-103 
27 May 1994 


businesses from 14 countries and regions, including the 
United States, Japan, Australia, Hong Kong and others. 


Over the past decade, the province has also imported 
64.7 million U.S. dollars’ worth of advanced equipment 
and technology from overseas. The figure for the Janu- 
ary-April period of this year was 11.9 million US. 
dollars. 


Since 1992, the province has taken part in or held trade 
talks in Xian, Urumqi and Hong Kong, in a drive to 
promote its image. 


The province has been upgrading its transport and 
telecommunications systems to improve its investment 
environment. It has also started law consultancy, 
accounting, international transport, insurance and other 
services to overseas businesses operating in the province. 


On the other hand, the province has received a total 80 
million U.S. dollars in overseas donations and free aid in 
recent years. 


The authorities expect that foreign investment and over- 
seas preferential loans to the province will hit 200 
million U.S. dollars this year. 


gy CURES Sines Crys eo Conenem 


1K 2605 100894 Xining QINGHAI RIBAO in Chinese 
22 Jan 94 pp 1, 3 


[By correspondent Dong Pei (5516 1014): “Qinghai 
Provincial Statistical Bureau Director Song Xiuyan Says 
at a News Conference That the Province’s Economy 
Enjoys Sustained and Rapid Growth and Healthy Devel- 


opment] 


[Text] Our province’s economy in 1993 scored the 
achievement of moving in a healthy direction amid 
sustained and rapid growth. At a news conference held 
on 20 January by the provincial statistical bureau, 
bureau director Song Xiuyan said that in 1993. our 
province achieved three breakthroughs in economic 
operations: Total industrial and agricultural output 
value topped 10 billion yuan, GDP 10 billion yuan, and 
financial revenue 1.1! billion yuan. 


Initial calculations by the provincial statistical bureau 
estimated that the province’s GDP in 1993 could hit 
10.1 billion yuan, up 9.5 percent from 1992 on compa- 
rable prices and achieving the provincial party and 
government's goal of “maintaining 8 percent growth and 
fighting for 9 percent growth.” Total social demand 
could exceed total supply by 3.97 percent, which would 
be within reasonable control. The following are develop- 
ments in various areas: 


Industrial production maintained its relatively high- 
speed growth, with parallel growth in production and 
sales and slight improvement in economic returns. 
According to progress-indicating figures, in 1993, man- 
ufacturing enterprises of all the province's counties and 


FBIS-CHi!-94-103 
27 May 1994 


localities above the county level produced industrial 
output value of 7.67 billion yuan, up 13.4 percent from 
1992, and scored 6.804 billion yuan in sales value, up 
13.5 percent. Our province’s ongoing economic develop- 
ment is distinguished by: 1) strong indications of invest- 
ment-pulled growth; 2) government industry as the main 
force of the province's industrial development, though 
its growth rate is lower than that of aongovernment 
industry: 3) large and medium-sized manufacturing 
enterprises as the keel of the province's industry, playing 
a decisive role; 4) the value of completed exports and 
deliveries has continued to be good; and 5) there has 
been an improvement in economic efficiency. Initial 
calculations estimate that overall economic return indi- 
cators could reach 69.5 percent, an increase of about 5 
percentage points from 1992 on a comparable basis. Of 
this, 265 state-owned budgetary manufacturing enter- 
prises saw their total profits and remitted tax increase by 
25.1 percent to 272 million yuan, which did not include 
the profits and taxes generated by the Qinghai Petroleum 
Bureau. Industrial development, however, remained 
beset by problems such as sluggish growth in light 
industry and low economic returns. 


The status of agriculture as the foundation of the prov- 
ince’s eco..omy continued to be reinforced and consoli- 
dated. The output of grain and oil-bearing crops hit 
record high levels. Animal husbandry output dropped as 
a result of natural disasters, but not as badly as had been 
predicted. Total grain output for the whole province was 
1,186,300 tonnes, slightly higher than 1992 and an 
all-time high. The total output of oil-bearing crops was 
152,100 tonnes, up 8.4 percent from 1992 and also an 
all-tsme high. Grazing livestock in the whole province 
increased by a total of 16.6 percent, with a year-end 
estimate of 22.1 million head, down 2.67 percent from 
1992. 


Construction has expanded in scale, and key projects 
have progressed well. State-owned units of the whole 
province completed fixed-asset investment of 3.455 bil- 
lion yuan, up 33.8 percent from the same period of [as 
published] 1992, of which investment in infrastructure 
projects and in renovation and transformation were up 
respectively 65.1 percent and 46.9 pervent. The charac- 
teristics of fixed-asset investment were: Infrastructure 
investment was concentrated on central projects, and 
renovation and transformation investment on local 
projects, production investment increased faster than 
nonproduction investment; key construction projects 
went well, construction funds reached where they were 
needed; and there were relatively bigger increases in 
newly installed fixed assets. 


The situation in transport has improved, and there was 
growth in post and telecommunications services. The 
Xining Railway Sub-Bureau halted a 10-month fall and 
pushed the cargo transport volume back up to a level 2.1 
percent higher than that in 1992. The road cargo trans- 
port volume was down 7.9 percent from 1992. Post and 
telecommunications services of the whole province rose 
24 percent from 1992. 


REGIONAL AFFAIRS 83 


Market sales were stable; foreign trade improved; new 
headway was made in opening up to the outside world; 
and prices rose by greater margins. The total commodity 
retail sales of the whole province were up 13.6 percent 
from 1992, or 1.2 percent allowing for price rises. The 
pattern in commodity retail markets was: Retail sales in 
consumer goods were relatively brisk; corporate 
spending was brought under control; markets in urban 
areas were prosperous and vibrant; sales in rural markets 
were sluggish; increases in the retail volumes of state- 
owned commercial units slowed and retail sales 
decreased in proportion. Foreign trade reversed the 
falling trend in the fourth quarter and rose 19.71 percent 
from 1992 in annual import and export value; of which 
exports grew 12.51 percent. In 1993, our province regis- 
tered 53 companies as foreign-invested enterprises and 
imported $17.6 million of foreign capital. It was the year 
in which foreign-invested enterprises developed the 
fastest since reform and opening up. The provincial 
market price index in 1993 rose from 107.9 in January to 
116.6 in December. Initial calculations estimated that 
the overall retail price level would rise 12.3 percent from 
1992. 


Local financial revenue increased and financial order 
improved further. Local financial revenue for the whole 
province amounted to 1.135 billion yuan, up 39.1 per- 
cent from 1992. By the end of 1993, the total savings 
balance of all banks was 8.531 billion yuan, 17.86 
percent higher than carly in the year. Cash income for 
banks of the whole province increased 44.7 percent from 
1992, while cash expenditure was up 45.1 percent. 


Income for urban and rural residents increased. A survey 
of a sample of urban residents showed that the per-capita 
income for living expenses of the province's urban 
residents was 1,879.29 yuan, up 19.77 percent, while 
per-capita consumpiton expenditure was | 817.68 yuan, 
up 22.1 percent. The per-capita net income of the 
province's peasants and herdsmen was 672.33 yuan, up 
11.4 percent from 192. 


More Than 300,000 Migrant Workers in Xinjiang 


11K 2605 100694 Hong Kong ZHONGGUO TONGXUN 
SHE in Chinese 0555 GMT 3 May 94 


[“Special article” by Lin Yuwen (2651 6735 2429): 
“Migrant Workers Are Swarming Into Xinjiang’ | 


[Text] Urumqi, 3 May (ZHONGGUO TONGXUN 
SHE)—tThe spring is over and wild geese have flown to 
the north again. 


Following these wild geese are tens of thousands of 
migrant workers, who are swarming into Xinjiang like 
tides. 


Statistics provided by the Urumai railway station's pas- 
senger transportation department indicate that the 
railway station transported 200,000 migrant workers in 
the autumn and winter of last year, and more than 


84 REGIONAL AFFAIRS 


100,000 migrant workers have come to Urumgi from 20 
February of this year to the present. 


These migrant workers are only staying in Xinjiang 
temporarily, but more have settled down in the region. 
According to a report by XINJIANG JUNKEN BAO 
[Army Reclamation Newspaper], there is a production 
team on a farm in the southern part of the 
Taklimakan desert that consists of 430 members, all of 
whom are migrant workers. Zheng Bangjun came to 
Xinjiang from Sichuan’s Qiuling County. As soon as he 
found a plot of land for development in the Tarim basin 
in 1987, he immediaiely helped move six of his cight 
brothers and sisters to this place. 


Incomplete statistics show that there are more than 
300,000 migrant workers in Xinjiang now. 

Migrant workers keep coming to Xinjiang despite its 
remoteness in location. 

The emergence of migrant workers’ thronging into Xin- 
jiang has heen due to China's reform and opening up and 
to the breakthroughs in rural economic structural 
reform. Contracting land to each household and linking 
remunerations to output have boosted the initiative of 
the 800 million peasants, thus emancipating the produc- 
tive forces and making it possible for many peasants to 
leave their farmlands for cities. The reform of China's 
grain policy, which was introduced in 1993, enabled the 
peasants to stay in cities. In the past, commodity grain 
was not available without urban domicile. This domicile 
registration system tightly restricted the peasants to the 
rural areas. The overall lifting of control over grain 
prices had a great impact on the domicile registration 
system and made it possible for surplus rural laborers to 
move to cities. Therefore, in a sense, the emergence of a 
large number of migrant workers at present is a sign of 
social progress. 


} ‘s Chairman Addresses 
ee Propaganda 


OW 2205 140794 Urum@i Xinjiang Television Network 
in Mandarin 1330 GMT 5 May 94 


[Announcer-read report over video; from the “Xinjiang 
News” program] 


[Text] The regional conference on propaganda and ideo- 
logical work opened in Urumgi today. 


The tasks high on the conference's agenda are to relay 
and implement the guidelines of the national conference 
on propaganda and ideological work and to study and 
work out plans, in close conection with Xinjiang’s 
reality, on strengthening and improving propaganda and 
ideolegical work. The conference will study ways to 
exercise more effective party leadership over and 
improve propaganda and ideological work. 


Janabil, deputy secretary of the regional CPC Com- 
mittee, presided over the conference. Entrusted by the 


FBIS-CHI-94-103 
27 May 1994 


regional party committee and Comrade Song Hanliang, 
Abulaiti Abudurexiti, deputy secretary of the regional 
CPC committee and chairman of the govern- 
ment, delivered a speech: “Implement the Guidelines of 
the National Conference on Propaganda and Ideological 
Work and Raise the Region's Propaganda and Ideolog- 
ical Work To a New Level.” 


Abulaiti Abudurexiti’s speech was divided into three 
parts: 1) further enhance our understanding of the 
importance and functions of propaganda and ideological 
work from an overall strategic viewpoint; 2) strive to 
accomplish the various tasks with regard to propaganda 
and ideological work in close adherence to the funda- 
mente Sanne one S Genes ee Chae Oy 
leadership over the propaganda and ideological work 

and improve the competence of the ranks of the cadres in 
charge of propaganda and ideological work. 


Abulaiti Abudurexiti said: The propaganda and ideolog- 
ical front is a very important front charged with the 
responsibility of providing motive force, ideological 
guarantees, and support through the creation of public 
opinion. At the national conference on propaganda and 
ideological work earlier this year, central leaders, 
including Jiang Zemin, Li Peng, and Zhu Rongji, deliv- 
ered important speeches that stressed once again the 
great importance of reinforcing propaganda and ideolog- 
ical work im the new period. We must recognize the 
importance of propaganda and ideological work from 
the high plane of building socialism with Chinese char- 
acteristics and the overall task of the party's work as a 
whole. 


Abulait: Abudurexiti said: It 1s especially important and 
urgent for Xinjiang to step up propaganda and ideolog- 
ical work. Due to reasons both historical and contempo- 
rary. Xinjiang 1s relatively backward economically and 
culturally. ideologically, the region is also relatively 
closed and outdated. Therefore, it is especially urgent— 
and more difficult also—for us to emancipate our minds, 
change our ideas, intensify reforms, and open up wider 
to the outside world. The propaganda and ideological 
front, therefore, must provide theoretical guidance and 
support in public opinion to reivrm efforts so that the 
principle, policy, and measures of reform will strike 
roots in the hearts of the people and that cadres and 
people of all nationalities will understand, support, and 
join the reform efforts to ensure smooth implementation 
of all reform undertakings. 


He said: Xinjiang ts faced with » slew of difficulties and 
problems in the course of speeding up its economic 
development. This makes it even more necessary to 
make full use of propaganda and ideological work to help 
people get a correct understanding of Xinjiang’s ongoing 
economic situation and its econemic prospects. He 
pointed out: On balance, Xinjiang is stable socially and 
politically. Destabilizing factors, however, remain. 
Effective propaganda and ideological work is essential if 
we are to safeguard and maintain social stability and 
ensure lasting peace and stability. 


FBIS-CHI-94-103 
27 May 1994 


In his speech, Abulaiti Abudurexiti called on the region's 
propaganda and ideological front to adhere closely to the 
fundamental principle of building socialism with Chi- 
nese characteristics and pay close attention to the fol- 
lowing tasks now and in the future: 

1. make more conscientious efforts in educating the 
cadres and the people with Comrade Deng Xiaoping's 
theory on building socialism with Chinese characteristics 
and use this theory to guide Xinjiang’s work in all areas; 


2. get a firmer grasp of public opinion, guide it in a 
proper way, and create good public opinion that serves 
Xinjiang’s reform, opening up, and stability; 


3. promote ideological education with patriotism, collec- 
tivism, socialism, and national unity at its core and 
foster good mental outlook and social conduct; 


4. give greater emphasis to the «central theme, help our 
cultural, art, and publishing undertakings flourish; and 
encourage the creation of more works with healthy 
content for people of all nationalities: and 


5. carry out in-depth external propaganda, improve the 
region's external propaganda in terms of the breadth and 
depth, and make it serve reform, opening up, and 
economic construction. 


Speaking of exercising effective party leadership over 
propaganda and ideological work and reinforcing the 
ranks of propaganda and ideological cadres, Abulaiti 
Abudurexiti said: Effective party leadership over propa- 
ganda and ideological work serves as a fundamental 
guarantee for the successful implementation of propa- 
ganda and ideological work. It also represents a new 
demand on party organizations at all levels in the new 
historical period. Party committees at all levels must 
place propaganda and ideological work high on their 

. Teview it at regular intervals, and set priorities 
for different periods in a timely fashion. They should pay 
greater attention to helping and guiding propaganda 
departments focus on the key tasks and improve their 
work. 


Abulaits Abudurexiti noted: Generally speaking, Xin- 
jiang’s contingent of propaganda and ideological workers 
are dependable politically and hardworking. The 
regional party committee has full confidence in this 


contingent and has always placed great hopes on it. Party 
committees and government at all levels must show 
concern for comrades on the propaganda and ideological 
front politically, ideologically. and im terms of material 
benefits. Propaganda and ideological cadres should con- 
tinuously enhance their sense of honor and responsibility 
for their work, live up to the trust of the party and the 
people, and make constant new progress in their work. 


Leaders of the regional party committee, government, 
and the Xinjiang Production and Construction Corps, 
including Zhang Fusen, Keyum Bawudun, (Amina 
Apar), (Wufuer Abudula), Feng Dazhen, Sha Ming, and 
Ni Haomei, are attending the conference. Also present 


REGIONAL AFFAIRS 8S 


charge of propaganda work. Representatives to the 
regional conference on radio and television also attended 
the conference. (Li Kangning), head of the propaganda 
department of the regional party committee, relayed the 
guidelines of the national conference on propaganda and 
ideological work and other relevant meetings at this 
morning's session. 


Commends TV 
Xinjiang Outstanding Radio, 


OW 2105013694 Urumgi Xinjiang Television Network 
in Mandarin 1330 GMT 10 May 94 


[Announcer-read report over video; from the “Xinjiang 
News” program] 


[Text] The regional radio and TV department and 
regional personnel department held an award ceremony 
on the afternoon of 9 May to commend the Hotan TV 
Station and 23 other stations as advanced collectives, 
and (Padanmu Maimaiti) and 81 other comrades as 
advanced workers of the regional radio and TV depart- 
ment. 


Regional party and government leaders Janabil, (Wufuer 
Abudula), Feng Dazhen, and (Sha Mi) congratulated the 
commended collectives and individuals, and presented 
them with certificates and awards. 

Xinjiang has scored notable achievements in developing 
radio and TV undertakings in recent years. Al present, 
there are 23 radio stations of all kinds and 38 radio 
transmitting stations throughout the region, beaming to 
70 percent of the population. The TV undertaking, 
which made a late start, has developed rapidly. There are 
26 TV stations and 348 TV relay stations, covering 72 
percent of the population. The region has approved, 
according to the law, the establishment of five cable TV 
Stations by administrative institutions, six cable TV 
stations by enterprises, and 440 cable TV posts of 
various kinds for over | million subscribers. 


The advanced collectives and individuals commended 
yesterday afternoon had for many years worked hard and 
selflessly on the regional radio and TV front. They had 
strictly observed discipline, adhered to high moral stan- 
dards, and made important contributions to publicizing 
the party's line, principles, and policies, developing 
radio and TV undertakings, and promoting socialist 
economic construction. 


Al the meeting, the relevant regional leacters also pre- 
sented certificates to Ili Kazak Autonomous Prefecture, 
[words indistinct}, the Akus Prefectural Radio and TV 
Bureau, 8106 Medium- Wave Relay Station, and 
Changji Prefecture’s Fukang Radio and TV Bureau, 
which had been commended as the national radio and 


Ko REGIONAL AFFAIRS 


TV department's advanced collectives, and to (Xiao 
Renbao) and nine other national advanced individuals. 
[video shows shots of a conference room with about 100 
people, and leaders passing out awards and trophies to 
recipients] 


Xinjiang’s Oil, Mineral Future Promising for 
China 


OW 2705091194 Beijing XINHUA in English 0820 
GMT 27 May 94 


[Text] Urumqi, May 27 (XINHUA)}—The Xinjiang 
Uygur Autonomous Region in the remote northwestern 
part of China promises China's oil and mineral future. 


With exciting discoveries being made one after another 
in the Tarim Basin, the region 1s providing high hopes 
for China's oil future, at a time when the nation has 
become a net ol importer. 


Over the past five years surveyors have found nine 
oilfields and 34 oi! structures in the basin. The biggest 
discovery 1s a 100-million-ton oilficld in the middle of 
the basin. 


Experts estimate the basin’s total reserves of oi! and 
natural gas at 18 billion tons, about one fifth of the 
nation’s total reserves. 


FBIS-CHI-94-103 
27 May 1994 


Last year the basin produced 1.6 million tons of crude 
oil, ranking | 1th in the country’s top oilficids list. The 
authorities expect that the basin’s oil production will 
reach 2.1 million tons this year, and five million tons by 
the end of 1996. 


In another development, the region's gold production 
has climbed from the second from the bottom to the 
ninth among all the Chinese regions. 


With gold deposits found in more than half of the 
region's 80 counties and cities, local sources said. the 
gold rush reminds people of that of the California in the 
last century. 


Xinjiang ts also rich in copper, a metal that is in short 
supply in China. The potentual reserves are estimated at 
more than 10 million tons. Some experts predict that the 
Axili Copper Mine at the foot of the Altay Mountains 
will soon become the second-largest in China, after the 
Tongxing Mine in Jiangxi Province. 


Figures released by the Xinjiang Bureau of Geology and 
Mining show that the region boasts reserves of 43 kinds 
of mincrals, including oil, natural gas, gold, coal, copper, 
salt, precious stones and rare metals. 


FBIS-CHI-94-103 
27 May 1994 


Government Refuses Comment on MFN Renewal 
for PRC 


OW2705083694 Taipei CNA in English 0750 GMT 
27 May 94 


[By Sofia Wu] 


[Text] Taipei, May 27 (CNA)—The Ministry of Foreign 
Affairs Friday [27 May] declined comment on 
decision to renew most-favored-nation 
privileges to Mainland China. 

“It is our established policy not to get involved in 
Washington-Beijing relations,” the ministry said in a 


exports to the US, while labor-intensive goods, such as 
toys, footwear and textiles, form the bulk of mainland 
exports to that market. 


“With different product structures, Taiwan has nothing 
to lose in the US decision to renew Mainland China's 
MFN status,” Tsai noted. 


tion technology in order to maintain their niches in the 
US market. 


The Chinese National Federation of Industries, one of 
the largest trade associations here, said it welcomes the 
US renewal of MFN privileges for the mainiand. 


“Taiwan-owned companies on the mainiand will benefit 
from such a decision,” the federation said. The US 
remains the most important market for products pro- 
duced by mainland-based Taiwan firms, including toys, 
garments, bicycles and consumer electronics. 


Clinton announced Thursday he will renew Mainland 
China's MFN trade status even though Beijing still 
commits serous human rights abuses. MFN is accorded 
the vast majority of US trading partners and allows them 
to sell goods in the US at the lowest possible tari'T rate. 


TAIWAN 87 


Taipei Willing To Talk With U.S. on War Debt 


OW 2605 144094 Taipei CNA in English 1310 GMT 26 
May 94 


{By Bear Li} 
[Text] Taipei, May 26 (CNA)—-Foreign Minister Fre- 


we will talk,” Chien said. 


Premier To Stop in U.S. En Route to Central 
America 


OW 2605 162994 Taipei CNA in English 1253 GMT 26 
Mav 94 


[By Flor Wang] 


[Text] Taipei, May 26 (CNA)}—Premier Lien Chan will 
make a stopover in the United States en route to Central 
America at the end of the month, Foreign Affairs Min- 
ister Chien Fu said Thursday (26 May]. 


legislator Chen Chien-jen at a Legislative Yuan com- 
mittee meeting. 
The United States has promised to make arrangements 
for Lien’s stay in the U.S., Chien said, adding that he 
hopes that bilateral relations between Taipei 
and Washington will be further boosted after June 3, 
when the U.S. has to make a final decision on whether to 
renew the most-favored-nation trade status of Beijing. 
Washington has been very cautious in handling matters 
concerning Taiwan and Mainland China, he noted. 


TAIWAN 


Guatemala on May 30 for an cight-day trip, will attend 
the inauguration of newly elected Salvadoran President 
Armando Calderon Sol on June | in San Salvador and 
begin a four-day visit in Guatemala City starting June 2. 


Taipei Welcomes U.S. Senate Support for UN Bid 
OW 2605 171094 Taipei CNA in English 1303 GMT 26 
May 94 


[By Benjamin Yeh} 
[Text] Taipei, May 26 (CNA)—The Republic of China 


Taiwan to participate fully in UN activities. 


The resolution, introduced by Sen. Paul Simon (1-111), 
now goes to the Senate floor for consideration by the full 
Senate. It also calls for cabinet-level exchanges between 
Taipei and Washington, which i said would be in the 
interests of both countnes. 


Tarwan in September made its first attempt to re-yorn the 
United Nations since it was forced out in 1971. Seven 
Latin American countrics submitied a letter to UN 
Secretary-General Butrus Butrus-Ghali in September, 
requesting that the ROCs UN bid be put on the agenda 
for the 48th General Assembly. but the request was voted 


Chien told the lawmakers that a similar proposal will be 
submitted to the 49%h General Assembly but that a 
different strategy would be used— namely trying to get 
countnes from different parts of the world to support the 


i 


bid 
However, he also admitted that getting Tarwan admiticd 


: 
7 
: 
: 


OW 2605 171594 Taper CNA om English 1238 GMT 26 
May 04 


[By Debbie Kuo] 


[Text] Taipei, May 26 (CNA)}—Taiwan on Thursday [26 
May] put a hold on a proposed plan for d:rect transpor- 


links with the mainiand before its security warimess is 

soothed. 

The paper says transportation links cannot be achieved 
A ts of f ; 


; 
z 
. 


and security problems existing between the two sides, 
and in addition would be against both the International 
Civil Aviation Agreement and ROC civil aviation laws. 


FBIS-CHI-94-103 
27 May 1994 


including the infamous Chientao [Qiandao] Lake in 
eastern mainiand province of Chekiang [Zhejiang]. 
Thirty-two people including 24 Tarwan tourists, six crew 
members. two mainland guides were robbed and burned 
to death in a pleasure boat nde on Chientao Lake March 
31. 


Tourists Warned About ‘High Risk’ Spots in 
Mainland 


OW 2605 164394 Taipei CNA in English 1250 GMT 26 
May 94 


[By Lilian Wu} 


[Text] Taipei, May 26 (CNA)}—Although the Taipei 
Association of Travel Agents lifted a ban on group 
to Mainland China Wednesday, the ROC [Republic of 
China] Consumers Foundation warned the public to 
avoid traveling to “high risk” places in the mainland. 


i 


ered in traveling to the mainland. He said that the public 
may have no way to file complaints if there is trouble 
because of the lack of agreement on travel safety and 


The travel agents lifted the self-imposed 
[25 May] after losing more than NT [New Taiwan] $700 
millon (U S.$26 millon), the officials said. The ban was 

and 


murder of 24 Tarwan tourists in Qiandao Lake im 
7Zheynang Province. 

The association officials said that although the ban. 
imposed on May |. was lifted, they did not capect group 


Mainland ( hina Loser in Lake 
Biggest Qtandao 


OV > -OS090894 Tape: CNA in English 0759 GMT 27 
Vay OF 


[By Debbic Kuo] 


[Text] Taspes, May 27 (CNA}—A top Maimland Chinese 
tourrsm official admitted Thursday [26 May] that Mai- 
land China lost more than Hong Kong and Taiwan in the 
aftermath of the March 31 Qiandao Lake tragedy in 
which 24 Tarwan tournsts were killed. 


TAIWAN 89 


Twenty-four Tarwan tourists were robbed and murdered 
in a pleasure boat fire on Qiandao Lake in Zhejiang 


Province on March 31. 
The tourists, together with mainiand crew mem- 
bers and tourist guides, were burnt to death in a 


small room in the boat on April |. Luggage and other 
- ienehenn euen ential 


Hi 
i 
HH 
" 
f 
i 
if 


HF 
is 
$f 


tH 
‘i 
i 
i 
| 


~ 
: 


| 


al TAIWAN 


Visa applications from Taiwan tourists to Hong Kong 
also dropped 40 percent since April, the Hong Kong 
official added. 


Minister Denies Rumors on Loan to South Africa 


OW 2605171294 Taipei CNA in English 1318 GMT 26 
May 04 


Chien, replying to an interpellation by Democratic Pro- 
gressive Party legislator Parris Chang, said the govern- 
ment had foreseen as long as three and a half years ago 
that drastic political changes would occur in South 
Africa, even though bilateral ties with the white-ruled 
government at that time were solid. 

“We indeed had promised a U_S.$60 millon loan to help 
South Africa finance a farming development project 


: 
x 
; 


Chien emphasized that Li had not offered any new loans 
to South Africa during his visit, but did agree io help 
South Afnca implement a vocational-traming project. 
“South Africa will send people here to see for themselves 
how job-traming projects are implemented,” Chien said. 
He added that the ROC has agreed to share with South 
Afra its successful expenence in helping military per- 
sonnel assimilate into society after retirement 

Many legislators here are agaonst any new ¢ onomuc ard 


. 
: 
i 
| 


South Africa 1s the largest country of the 29 with which 
the ROC marntais official diplomatic ties 


[Text] Taipei, May 26 (CNA)}—President Li Teng-hui on 
Thursday [26 May] called for the government and public 
to «Jose ranks so as to accomplish the goals of national 


the constitution and the nominations by L: of grand 
justices and the head of the Judicial Yuan. 


Economy Faces ‘Hest o Potential Threats 
— Taipei CNA in English 0718 GMT 27 
May 


By Sofia Wu) 


ey mp tet ny mg ~ ye 
ing a host of r«‘ential threats, mmchuding both cco- 
nomic and non-e:::mic factors, ranking officials sand 
Friday [27 Mayj. 


First of all, domestic investment, particularly in the 


FBIS-CHI-94-103 
27 May 1994 


Machinery imports, an effective m :asure of investment 
activities, registered a 6 percent decrease during the 
January-March period. 


Li said difficulties in land acquisition remain the 
greatest obstacle to private investment here. According 
to a recent survey by the US-based McKinsey consulting 
firm, Taiwan's industrial land prices are the second 
highest in Asia, behind only Hong Kong. 


Li added labor shortages, inadequate government incen- 
tives and a growing “anti-commerce complex” have also 
discouraged manufacturers from making new invest- 
ments at home. He cited a recent proposal by a township 
chief to levy “community development taxes” on the 
construction sector and the forced closure of the Makro 
Shopping Center in the Kaohsiuag Industrial Zone as 
examples of the so-called “anti-commerce complex.” 


Wang Chao-ming, a minister without portfolio, said he is 
worried about possible power shortages because of the 
long delay in construction of Taiwan’s fourth nuclear 
power plant and growing labor-management conflicts 
over work hours and insurance issues. 


“If these problems cannot be resolved properly, our 
industrial production and overall economic growth will 
be adversely affect =d,” Wang noted. 


Kuo Wan-jung, also a minister without portfolio, said 
Taiwan's foreign trade has become even more unbal- 
anced, with its reliance on the Mainland Chinese market 
increasing. 


Taiwan’s foreign trade surplus declined by nearly 70 
percent in the first four months of this year compared to 
1993. Worse yet, its trade deficit with Japan reached 
US$4.56 billion between January and April. Taiwan also 
incurred a US$760 million trade deficit with Europe, 
while its trade surplus with the United States shrank to 
US$893.9 million. Taiwan managed to register a 
US$5.62 billion surplus in its trade with Hong Kong, a 
major conduit for indirect Taiwan-Mainland China 
trade, durit:g the four-month period. 


“All these figures point to changes in Taiwan’s trade 
picture, with its exports to advanced countries, such as 
the US, Japan and European nations, declining while its 
reliznce on the mainland market is rising,” noted Kuo. 


She also called attention to potential inflationary pres- 
sure, saying the nearly 2 percent depreciation of the new 
Taiwan dollar in recent months and rising oil and raw 
material prices in the international market may destabi- 
lize local commodity prices which would hinder eco- 
nomic growth. 


However, Chairman Hsiao Wan-chang of the Council 
for Economic Planning and Development said he 
remains optimistic about Taiwan’s economic prospects. 
“Our economy is undergoing a structural change, with 
technology-intensive industry playing an increasingly 
important role,” Hsiao noted. 


TAIWAN 91 


Industrial production rose 6.2 percent in the January- 
April period and heavy industry output grew an even 
more impressive 8 percent from the year-earlier level, he 
added. 


NAFTA Zones Courting Taiwan Investment 


OW2705082794 Taipei CNA in English 0743 GMT 27 
May 94 


[By Debbie Kuo] 


[Text] Taipei, May 27 (CNA)—A North American trade 
mission is visiting Taiwan to seek potential investors in 
the North America Free Trade Agreement (NAFTA) 
area. 


The mission, composed of trade officials from San 
Diego, California and business leaders from Tijuana, 
Mexico, is led by San Diego Mayor Susan Golding. 


During a seminar Friday [27 May] morning, mission 
members said San Diego and Tijuana offer all the 
privileges any investor could hope for including conve- 
nient transportation, tax exemptions, and the huge 
United States, Canadian and Mexican markets. 


NAFTA, with the potential to create US$6 trillion in 
business and become the biggest trade block in the world, 
has already attracted some 600 companies to the free 
trade zones, said Daniel O. Pegg, president of the San 
Diego Economic Development Council. 


Among the 600 manufacturers, some 100 are Asian 
companies, including Sony and Samsung, Pegg said. 


Mayor Golding said she is confident that San Diego will 
turn itself into a “Hong Kong in North America” in the 
21st century with its excellent investment climate and a 
large area of land. 


Permission Granted for Foreign Beer, Wine 
Plants 


OW 2705082894 Taipei CNA in English 0722 GMT 27 
May 94 


[By Danielle Yang] 


[Text] Taipei, May 27 (CNA)}— Taiwan will allow 
domestic and foreign beer and wine makers to set up 
production sites here as part of Taiwan’s bid to enter the 
General Agreement on Tariffs and Trade (GATT), the 
Finance Ministry said Friday [27 May]. 


Standards for setting up plants will be the same for 
foreign and local manufacturers, a ministry official said. 
He added that the lifting of the ban on foreign alcohol 
production will be limited to low alcohol spirits and 
beer. Foreign companies will still be prohibited from 
producing hard liquors in Taiwan. 


Famous alcohol manufacturers in Japan, Germany, and 
the Netherlands have expressed interest in setting up 
plants here, the official said. 


92 TAIWAN 


This will be the first time in more than 40 years that 
Taiwan has opened its alcohol production to foreign 
countries. Currently, all domestic alcohol is produced 
exclusively by the provincial Taiwan Tobacco and Wine 
Monopoly Bureau, the official said. 


A total of 1.24 billion bottles spirits were consumed 
across the island in fiscal 1993 with 95.35 percent 
produced locally and the remaining 4.65 percent 
imported, the bureau said. 


Permission Granted for Foreign Beer, Wine 
Plants 

OW2705082894 Taipei CNA in English 0722 GMT 27 
May 94 


[By Danielle Yang] 


[Text] Taipei, May 27 (CNA)}— Taiwan will allow 
domestic and foreign beer and wine makers to set up 
production sites here as part of Taiwan’s bid to enter the 
General Agreement on Tariffs and Trade (GATT), the 
Finance Ministry said Friday [27 May]. 


Standards for setting up plants will be the same for 
foreign and local manufacturers, a ministry official said. 
He added that the lifting of the ban on foreign alcohol 
production will be limited to low alcohol spirits and 
beer. Foreign companies will still be prohibited from 
producing hard liquors in Taiwan. 


Famous alcohol manufacturers in Japan, Germany, and 
the Netherlands have expressed interest in setting up 
plants here, the official said. 


This will be the first time in more than 40 years that 
Taiwan has opened its alcohol production to foreign 
countries. Currently, all domestic alcohol is produced 
exclusively by the provincial Taiwan Tobacco and Wine 
Monopoly Bureau, the official said. 


FBIS-CHI-94-103 
27 May 1994 


A total of 1.24 billion bottles spirits were consumed 
across the island in fiscal 1993 with 95.35 percent 
produced locally and the remaining 4.65 percent 
imported, the bureau said. 


Auto Makers Visit France, Belgium, UK, 
Germany 

OW2705083094 Taipei CNA in English 0727 GMT 27 
May 94 


{By P.C. Tang and Danielle Yang] 


[Text] Brussels, May 26 (CNA)—A Taiwan delegation 
composed of ten auto and motorcycle parts and compo- 
nent manufacturers is in Belgium to promote Taiwan 


products and seek cooperative opportunities. 


Manager of Sanyes Automotive Industrial Co. Huang 
Sheng-chih said during an interview with CNA that 
Belgium, an important production center for the Euro- 
pean auto industry, has been targeted by Taiwan manu- 
facturers because it does not produce its own car brands. 


Taiwan manufacturers can supply Belgium car assembly 
plants with parts and components and cooperate with 
Belgium OEM (original equipment manufacture) makers 
to tap the European and Asia-Pacific markets, Huang 
said. 


During the tour arranged by the Far East Trade Service 
Center in Brussels, the Taiwan OEM manufacturers 
visited car assembly plants for Opel and Volkswagen and 
met with their Belgium counterparts to discuss trade 
opportunities. 

Belgium imported some US$4.63 billion worth of car 
parts and components from abroad in 1993 with Taiwan 
supplying US$83 million, or just under 2 percent of the 
total imports, Huang said. There is ample room for 
development of the Belgium market, he added. 


After Belgium, the Taiwan delegation members will 
proceed to Germany and Britain to continue their Euro- 
pean tour which also took them to Paris. Delegation 
members are scheduled to return to Taiwan on June 10. 


; 


FBIS-CHI-94-103 
27 May 1994 


Hong Kong 


Leaders Meet With New PWC Members, Hong 
Kong Advisers 


Jiang Zemin Attends Ceremony 


HK2605 142694 Beijing ZHONGGUO XINWEN SHE 
in English 1317 GMT 26 May 94 


[Text] Beijing, May 26 (CNS)—The President of the 
State Mr. Jiang Zemin when attending a ceremony in 
which appointment letters were conferred on the third 
batch of advisors on Hong Kong affairs said that he 
hoped to see greater involvement of Hong Kong peopie 
in the territory’s affairs. He added that being an advisor 
or a member of the Preliminary Working Committee was 
considered a good pattern in participation in Hong Kong 
affairs. 


Mr. Jiang said that there were various kinds of partici- 
pation in Hong Kong affairs. He called for Hong Kong 
people to have greater concern for restoration of sover- 
eignty of the territory to China in 1997 as well as for long 
term prosperity and stability which was closely related to 
the destiny of Hong Kong people. 


The President said that there were a mere three years left 
for the reversion of Hong Kong to China and so much 
work was yei to be done. The “one country, two systems” 
and “rule of Hong Kong by its people” would be the very 
policy to be adopted by the future Special Administra- 
tive Region government. Mr Jiang said that the central 
government as well as Hong Kong people were confident 
of such policies. 


Mr. Jiang said that economic prosperity enjoyed by 
Hong Kong people was mainly due to hard working by 
the territory’s people. He was convinced that Hong Kong 
people were not only capable of creating a prosperous 
and stable Hong Kong but also capable of maintaining 
such success. He went further saying that Hong Kong 
people could even create a better future for the territory. 


The president stressed that stability and prosperity in 
Hong Kong was closely related to economic develop- 
ment in the mainland which lent great support to so 
many economic activities undertaken in Hong Kong. He 
added that the socialist mainland would still support the 
territory for its stability and prosperity after 1997. 


Jiang Makes Remarks on Hong Kong 


OW2605 163494 Beijing XINHUA in English 1619 
GMT 26 May 94 


[Text] Beijing, May 26 (XINHUA)—Chinese President 
Jiang Zemin said here today that “we are fully confident 
that Hong Kong people can administer Hong Kong 
well.” 


He made the remark while meeting 49 newly-invited 
advisors on Hong Kong affairs and 13 newly-appointed 


HONG KONG & MACAO 93 


members of the Preliminary Working Committee for the 
Preparatory Committee of the Hong Kong Special 
Administrative Region. 


The 49 new advisors on Hong Kong affairs received their 
letters of appointment here today, bringing the total 
number of advisors on Hong Kong affairs to 141. The 
practice to invite advisors on Hong Kong affairs began in 
1992. 


Many urgent tasks remain to be done at a faster pace 
since in three years China will resume its sovereignty 
over Hong Kong, he said. China has already formulated 
a series of important policies on the administration of 
Hong Kong after 1997. 


He said that Deng Xiaoping pointed out a decade ago 
that Chinese people in Hong Kong have the ability to 
administer Hong Kong well and that it is an idea left 
over by the old colonialism not believe this. 


Jiang said that Hong Kong’s economic stability and 
prosperity of today are inseparable from the Hong Kong 
people’s diligence and creativeness. Hong Kong people 
will surely be able to create a bright future for Hong 
Kong, he said. 


Of course, he added, neither can Hong Kong’s economic 
stability and prosperity be separated from the main- 
land’s economic development. 


The president said that an important purpose of setting 
up the preliminary committee and inviting Hong Kong 
affairs advisors is to provide a chance and channel for 
Hong Kong people to participate in the cause for a 
smooth transition in Hong Kong and lay a foundation 
for the realization of “Hong Kong people ruling Hong 
Kong” after 1997. 


He expressed the hope that all the Hong Kong people 
would care for the affairs related to China’s resumption 
of sovereignty over Hong Kong and for Hong Kong’s 
long-term prosperity and stability, which he said are 
closely connected with the interests of the Hong Kong 
people. 


He also expressed the hope that the advisors and mem- 
bers of the preliminary committee will increase their 
contacts with the mainland and facilitate the Hong Kong 
people’s participation in the cause so as to make full 
preparations for the coming of the year 1997. 


Other senior Chinese leaders attending today’s meeting 
include Li Peng, Qiao Shi, Zhu Rongji, Li Langing, Zou 
Jiahua, Qian Qichen, Luo Gan, Ji Pengfei and Lu Ping. 


In a separate group discussion today, the new advisors 
and members of the preliminary committee put forth 
many constructive opinions and suggestions concerning 
Hong Kong’s financial policy, inflation, price of accom- 
modation, continued employment of civil servants, edu- 
cation on the youth and others issues. 


94 HONG KONG & MACAO 


Lu Ping, director of the Hong Kong and Macao Affairs 
Office under the State Council, said that practice has 
proved it successful to invite advisors on Hong Kong 
affairs. 


He spoke highly of the advisors’ work. They have offered 
a large amount of valuable suggestions on important 
issues concerning the smooth transition in 1997 as well 
as issues related to the transitional period, he said. 


Jiang, Others Receive New Appointees 


OW2705005194 Beijing XINHUA Domestic Service in 
Chinese 1357 GMT 26 May 94 


[By reporters Duanmu Laidi (4551 2606 0171 1229) and 
Fang Jin (2455 3866)] 


[Text] Beijing, 26 May (XINHUA)—State leaders 
including Jiang Zemin, Li Peng, Qiao Shi, and Zhu 
Rongji received the third batch of advisers on Hong 
Kong affairs and the newly appointed members of the 
Preliminary Working Committee for the Preparatory 
Committee of the Hong Kong Special Administrative 
Region at the Great Hall of the People this afternoon. 


President Jiang Zemin gave an important speech. After 
warmly congratulating them, he said: Time flies fast. 
Many urgent tasks remain to be done at a faster pace 
because in three years China will resume its sovereignty 
over Hong Kong. 


He pointed out: The CPC Central Committee has 
already formulated a series of important principles and 
policies on the administration of Hong Kong after 1997. 
Deng Xiaoping pointed out sincerely as early as a decade 
ago that Chinese people in Hong Kong have the ability to 
administer Hong Kong well and that not believing this is 
the case is an idea left over by the old colonialism. We 
have full confidence that people in Hong Kong will 
administer Hong Kong well. He said that Hong Kong’s 
economic stability and prosperity today are inseparable 
from the Hong Kong people's diligence and creativity. 
This was true in the past and remains so today. The 
people of Hong Kong will surely be able to create a bright 
future for Hong Kong. Of course, Hong Kong’s economic 
stability and prosperity can not be separated from the 
mainland’s economic development either. 


Jiang Zemin said in conclusion: One important purpose 
of setting up the preliminary committee and inviting 
Hong Kong affairs advisers is to provide a chance and 
channel for Hong Kong people to participate in the cause 
for a smooth transition in Hong Kong and to lay a 
foundation for the realization of “Hong Kong people 
ruling Hong Kong” after 1997. He expressed the hope 
that all the Hong Kong people will care for the affairs 
related to China’s resumption of sovereignty over Hong 
Kong and for Hong Kong’s long-term prosperity and 
stability, because these are closely connected with the 
interests of the Hong Kong people. He also expressed the 
hope that the advisers and members of the preliminary 
committee will increase their contacts with the mainland 


FBIS-CHI-94-103 
27 May 1994 


and facilitate the Hong Kong people’s participation in 
the cause so as to make full preparations for the coming 
of 1997. 


Also present at today’s reception were Zou Jiahua, Qian 
Qichen, Li Langing, Luo Gan, Ji Pengfei, Lu Ping, and 
Zhou Nan. 


Qiao Shi Issues Appointments 


OW2605 140994 Beijing XINHUA in English 1358 
GMT 26 May 94 


[Text] Beijing, May 26 (XINHUA)—Qiao Shi, chairman 
of the Standing Committee of the Chinese National 
People’s Congress (NPC), today issued appointment 
certificates to 13 new members of the country’s working 
panel for Hong Kong transition in 1997. 


The move was meant to increase the working capacity of 
the Preliminary Working Committee for the Preparatory 
Committee of the Hong Kong Special Administrative 
Region, said Qiao. 


“The preliminary committee has been shouldering more 
and more tasks with the date for China’s resumption of 
sovereignty over Hong Kong drawing near,” Qiao said. 


The 13 new members were chosen by the NPC Standing 
Committee on May 12, with eight from Hong Kong, five 
from the mainland. 


Qiao expected the new members, together with other 
members, to work in an active and steadfast way for the 
establishment of the preparatory committee, under the 
guidance of the “one country, two systems” policy, and 
by adhering to the basic law and relevant NPC decisions. 


He said the work by the preliminary committee will 
directly involve the smooth transition in Hong Kong in 
1997. 


Qiao urged them to continue to solicit the opinions of 
Hong Kong people, pay more attention to survey and 
research, and enable Hong Kong people to care for and 
participate in preparing for China’s resumption of sov- 
ereignty over Hong Kong in 1997. 


Qiao said that since its establishment in July 1993, the 
preliminary committee has been well received by the 
public through its hard and practical work, for which he 
expressed “heart-felt” thanks to its director Qian Qichen 
and other staff members. 


The preliminary committee comprises 70 members, of 
which 32 are from the mainland and 38 from Hong 
Kong. The members are mostly leading officials of 
relevant departments, jurists, economists, and represen- 
tatives from all walks of life in Hong Kong. 


FBIS-CHi-94-103 


27 May 1994 HONG KONG & MACAO 95 
Qiao Meets With New Members Qian Qichen Fetes Advisers 

OW 2605 142094 Beijing XINHUA Domestic Service in OW2705033994 Beijing XINHUA Domestic Service in 

Chinese 1257 GMT 26 May 94 Chinese 1333 GMT 26 May 94 


[By reporters Duanmu Laidi (4551 2606 0171 1229) and 
Fang Jin (2455 3866)] 


[Text] Beijing, 26 May (XINHUA)—A ceremony to 
present certificates of appointment to additional mem- 
bers of the Preliminary Working Committee [PWC] of 
the Hong Kong Special Administrative Region 
[HKSAR] Preparatory Committee under the National 
People’s Congress [NPC] Standing Commitiee was held 
at the Great Hall of the People this afternoon. 


NPC Standing Committee Chairman Qiao Shi presented 
the certificates to the 13 new PWC members. Vice 
Chairman Tian Jiyun presided over the ceremony. 


Chairman Qiao Shi made an important speech. He said: 
Since its establishment in July last year, the PWC has 
worked very hard and pragmatically. It has attracted 
extensive attention and won favorable comments from 
various quarters. On behalf of the NPC Standing Com- 
mittee, I extend my heartfelt thanks to Chairman Qian 
Qichen and the committee’s vice chairmen, members, 
and working personnel. 


Qiao Shi said: The PWC’s work burden will become 
increasingly heavier as the day when China assumes the 
exercise of sovereignty over Hong Kong draws near. The 
purpose of selecting additional PWC members is to 
strengthen its working power. We believe that the addi- 
tional members will certainly live up to the people’s 
aspirations and join other committee members and take 
the initiative in doing solid preparatory work for the 
establishment of the HKSAR Preparatory Committee 
under the guidance of the general principle of “one 
country, two systems,” the Basic Law, and the relevant 
NPC decisions. 


Qiao Shi emphasized: The PWC’s work has a direct 
bearing on the transfer of government and the smooth 
transition of Hong Kong in 1997. I hope that the PWC 
will continue to widely listen to the Hong Kong people’s 
opinions; pay attention to investigation and study; and 
by various means and ways, make the Hong Kong people 
show a common concern about and participate in the 
preparatory work for China to resume its sovereignty 
over Hong Kong. So long as the vast number of Hong 
Kong people participate in our work and the people 
across the country strongly support our work, we cer- 
tainly can triumphantly accomplish the glorious mission 
assigned us by history. 


Present at today’s ceremony were Wang Hanbin, Ni 
Zhifu, Sun Qimeng, Chen Muhua, Qin Jiwei, Lu Jiaxi, 
and Buhe, vice chairmen of the NPC Standing Com- 
mittee; Cao Zhi, secretary general of the NPC Standing 
Committee; and Qian Qichen, vice premier of the State 
Council and chairman of the PWC. 


[By reporters Duanmu Laidi (4551 2606 0171 1229) and 
Fang Jin (2455 3866)} 


[Text] Waves of laughter drifted from the chandelier- 
lighted Bafangyuan building of the Diaoyutai State 
Guesthouse in Beijing tonight when Vice Premier Qian 
Qichen threw a party to entertain the third batch of 
advisers on Hong Kong affairs and newly appointed 
members of the Preliminary Working Committee for the 
Preparatory Committee of the Hong Kong Special 
Administrative Region [SAR]. 


At the party, Qian Qichen proposed a toast wishing a 
smooth transition for Hong Kong will have a smooth 
transition and long-term prosperity and stability in the 
future, which was warmly echoed by the guests. 


Qian Qichen said that he was very pleased to see so many 
new and old friends joining the ranks and files of 
advisers on Hong Kong affairs and members of the 
Preliminary Working Committee for the Preparatory 
Committee of the Hong Kong SAR. He said: Only three 
years remain untii Hong Kong makes its transition. 
Generally speaking, the current situation in Hong Kong 
is fairly good. This can mainly be attributed to the 
reform and opening as well as to the sustained and stable 
economic development on the mainland which enables 
Hong Kong to maintain a strong momentum for its 
economic growth. What is especially encouraging is the 
fact that as | July 1997 is approaching, more and more 
Hong Kong residents are conscientiously joining the 
contingent of people who want to maintain Hong Kong’s 
stability and prosperity and promote a smooth transition 
by Hong Kong. With a great sense of responsibility and 
enthusiasm, they pay attention to and participate in 
affairs relating to the organization of the Hong Kong 
SAR and the realization of a smooth transition in Hong 
Kong. This is a sense of responsibility and participation 
becoming to the masters of Hong Kong. This is also a 
prelude to the successful realization of the goal that 
“Hong Kong be governed by Hong Kong residents.” 


While talking about the cooperation between China and 
Britain, Qian Qichen said: Although the Sino-British 
negotiations on the Hong Kong elections in 1994 and 
1995 broke down, we still hope to maintain cooperation 
with the British sid- in other respects. However, coop- 
eration is bilater2!. We can not mainly entrust our hopes 
for a smooth t ‘ansition of Hong Kong and its long-term 
stability and psosperity on cooperation by Britain. More 
importantly, it is necessary to conscientiously carry out a 
series of correct principles and policies of the Chinese 
Government toward Hong Kong, whose future is guar- 
anteed by the Basic Law. We should depend on the 
active participation of the broad masses of Hong Kong 
residents and the support of people across the country. 
As long as we base our tasks on a foundation like this 


96 HONG KONG & MACAO 


one, we will be completely able to resume our sover- 
eignty over Hong Kong on schedule and to achieve the 
goal of a stable transition 1.» Hong Kong. 


Attending the banquet were Luo Gan, Ji Pengfei, Lu 
Ping, Zhou Nan, and other leading cadres. 


Lu Ping Addresses New Advisers 


OW2705 100694 Beijing XINHUA Domestic Service in 
Chinese 1347 GMT 26 May 94 


[By reporters Duanmu Laidi (4551 2606 0171 1229) and 
Fang Jin 2455 3866] 


[Text] Beijing, 26 May (XINHUA)—A ceremony to 
present letters of appointment to the third batch of 
advisers on Hong Kong affairs was held at the Great Hall 
of the People in Beijing this afternoon. State leaders, 
including Jiang Zemin, Li Peng, Qiao Shi, and Zhu 
Rongji, attended the ceremony. 


Lu Ping, director of the State Council’s Hong Kong and 
Macao Affairs Office, saic in his speech: We have 
successively appointed two batches of advisers on Hong 
Kong affairs since 1992. The past two years’ experience 
has shown that the practice of appointing advisers on 
Hong Kong affairs has been successful. Shouldering a 
profound sense of responsibility toward the Hong Kong 
people and their future; utilizing their own talents, 
experiences, and advantages in their familiarity with 
various aspects of Hong Kong society; and applying 
various formats and channels, the advisers have made 
many valuable suggestions on some major issues con- 
cerning the final transitional period and on matters 
regarding the transfer of government in 1997 and a 
smooth transition of Hong Kong. They have played a 
very effective role as a think tank in the work of the 
Hong Kong and Macao Affairs Office and the XINHUA 
NEWS AGENCY Hong Kong branch, and even in 
affecting the central people’s government's decisions on 
Hong Kong affairs. Meanwhile, Hong Kong affairs 
advisers have, by exerting their personal influence, 
played an active role in publicizing the Chinese Govern- 
ment’s general and specific policies toward Hong Kong; 
have publicized the basic law; and have reassured peo- 
ple’s feelings in general. Consequently, they have 
become an important link and network that facilitate 
connections and communications between us and the 
broad masses of Hong Kong people. 


Lu Ping said: The total number of the three batches of 
Hong Kong affairs advisers has reached 141. The con- 
tingent has expanded and has more extensive represen- 
tativeness among its members. Pursuing the principle 
that Hong Kong affairs advisers have been appointed as 
individua's, we will lister to their proposals, and various 
different suggestions and criticisms, will make concerted 
efforts in unison; will properly perform the tasks together 
so as to realize our common objectives—a smooth tran- 
sition of Hong Kong and its long-term stability and 


prosperity. 


FBIS-CHI-94-103 
27 May 1994 


As | July 1997 draws near, not only the broad masses of 
Hong Kong people have not weakened their confidence 
in Hong Kong’s future due to the Sino-British disputes 
over political system issues, but they have strengthened 
it. More and more Hong Kong people have demon- 
strated a profound sense of responsibility and involve- 
ment for a smvoth transition of Hong Kong. Many 
friends have formed this conviction: Now that the Sino- 
British talks on political system issues have broken 
down, we must rely on our own strength [li liang 0500 
6852] to ensure a smooth transition of Hong Kong. Such 
conviction has further enhanced our confidence in Hong 
Kong's future. 


Lu Ping stressed: Comrade Deng Xiaoping had said as 
early as a decade ago that “Hong Kong people will 
administer Hong Kong.” In other words, “Hong Kong 
people consisting mainly of patriots will administer 
Hong Kong.” He also pointed out that we should create 
conditions for Hong Kong people to smoothly take over 
the government during the transitional period. He urged 
“Hong Kong people of various circles to make efforts in 
this regard.” We hope that upholding the stance on 
saying all they know without reserve as masters of their 
own affairs, Hong Kong affairs advisers will make valu- 
able proposals on a smooth transition of Hong Kong, on 
a successful transfer of government [zheng quan shun li 
jiao jie 2398 2938 7311 0448 0074 2234] in 1997, and on 
maintaining long-term stability and prosperity in Hong 
Kong. 


Zhou Nan, director of the XINHUA NEWS AGENCY 
Hong Kong branch, presented the letters of appointment 
to the 49 new Hong Kong affairs advisers. 


Also attending the meeting were leading comrades Zou 
Jiahua, Qian Qichen, Li Langing, Luo Gan, and Ji 
Pengfei. 


Lu Ping, Zhou Nan Hold Discussion 


OW2705020194 Beijing XINHUA Domestic Service in 
Chinese 1229 GMT 26 May 94 


[By reporters Duanmu Laidi (4551 2606 0171 1229) and 
Fang Jin (2455 3866)} 


[Text] Beijing, 26 May (XINHUA)—This morning, Lu 
Ping, director of the State Council Hong Kong and 
Macao Affairs Office, and Zhou Nan, director of the 
XINHUA NEWS AGENCY Hong Kong branch, held an 
informal discussion with the third batch of Hong Kong 
affairs advisers and newly appointed members of the 
Preliminary Working Committee [PWC] for the Prepa- 
ratory Committee of the Hong Kong Special Adminis- 
trative Region [HKSAR] to hear their views on Hong 
Kong affairs. 


Participating in today’s informal group discussions were 
49 Hong Kong affairs advisers and 13 new PWC mem- 
bers. The participants expressed their individual views 
and put forward many constructive ideas ar.d sugges- 
tions on Hong Kong’s monetary policy, inflation, 


FBIS-CHI-94-103 
27 May 1994 


housing prices, public servants’ continued employment 
after 1997, and youngsters’ education; on how Hong 
Kong's major capital construction could be coordinated 
and brought into line with that of the mainland; and on 
other issues touching upon a wide variety of fields such 
as politics, economics, culture, education, law, and social 
order. 


Lu Ping and Zhou Nan spoke separately at the informal 
discussion. Lu Ping said: Although Sino-British talks on 
Hong Kong's 1994 and 1995 elections broke down due to 
the lack of sincerity by the British side, the Chinese 
Government still hopes to continue maintaining cooper- 
ation with Britain in other fields. However, whether or 
not the two sides can cooperate will mainly hinge on 
Britain’s attitude. He said: On the one hand, we hope for 
vooperation with Britain; on the other, we should not 
cherish too many illusions concerning Britain. We 
should build our work on our own foundation, truly 
realize participation by the Hong Kong people, and 
properly carry out various preparatory work during the 
final transitional period to bring about a smooth transi- 
tion in 1997. We are now three years away from |! July 
1997, and we still need to carry out a much work of 
various types. I hope that all PWC members and Hong 
Kong affairs advisers will actively throw themselves into 
preparatory work for the HKSAR. He said: Hong Kong 
has many qualified personnel in various fields; we 
believe that Hong Kong certainly will be able to enjoy 
continued prosperity and stability under the future 
HKSAR government staffed by patriotic Hong Kong 
people. 


Zhou Nan said: All of you have put forward so many 
constructive ideas; this reflects the great sense of respon- 
sibility among Hong Kong affairs advisers and PWC 
members. Zhou Nan said: It is extremely important for 
the Hong Kong people to take part in local affairs during 
the transitional period. I hope that Hong Kong affairs 
advisers and PWC members will always put forward 
ideas and suggestions to make contributions to Hong 
Kong's smooth transition and long-term prosperity and 
stability. 


Chen Ziying and Wang Fengchao, State Council Hong 
Kong and Macao Affairs Office deputy directors; as well 
as Qin Wenjun, XINHUA Hong Kong branch deputy 
director, also participated in this morning's informal 
discussion. 


XINHUA Official Views Proposed Human Rights 
Commission 


Says Commission ‘Violates’ Basic Law 


OW2605 153094 Beijing XINHUA in English 1503 
GMT 26 May 94 


[Text] Hong Kong, May 26 {XINHUA)—A senior Chi- 
nese official said here today that Hong Kong Governor 


HONG KONG & MACAO 97 


Chris Patten’s proposal to set up a human rights com- 
mission in the territory not only violates the Basic Law 
but also poses a threat to the smooth transition of Hong 
Kong. 


Zhu Yucheng, deputy director of XINHUA NEWS 
AGENCY Hong Kong branch, made the remarks here on 
a public occasion on Wednesday [25 May} while com- 
menting on the proposal recently put forward by Chris 
Patten for establishing a human rights commission in the 
territory. 


The human rights of the Hong Kong people are fully 
guaranteed in the Basic Law, Zhu said, noting that the 
proposal runs counter to the Basic Law, and therefore, is 
not conducive to the smooth transition of Hong Kong. 


He also criticized Patten for paying only lip service to the 
Sino-British cooperation on the one hand, and con- 
stantly setting up new barriers on the other hand. 


Zhu warned that such a human rights commission would 
be dismantled in 1997 if it were indeed set up. 


Rejects Creation of Commission 


HK2605065694 Hong Kong TA KUNG PAO in Chinese 
26 May 94 p 2 


[Report: “Zhu Yucheng, Deputy Director of XINHUA 
Hong Kong Branch, Says the Establishment of a Human 
Rights Commission Will Hinder Smooth Transition”) 


[Text] Yesterday (25 May), Zhu Yucheng, deputy 
director of XINHUA Hong Kong Branch, said that the 
Basic Law provides sufficient guarantees for the human 
rights of Hong Kong residents, so the establishment of a 
human rights commission in Hong Kong is, first of all, a 
violation of the Basic Law, and is also a major hindrance 
to Hong Kong’s smooth transition. This is unacceptable 
to the Chinese side, and the operation of a human rights 
commission will certainly be terminated after 1997. 


Zhu Yucheng said this yesterday afternoon when ques- 
tioned by reporters while he was attending the news 
conference on the sale of Beijing's Fenglian Square. 


When answering reporters’ questions about a human 
rights commission, Zhu said: “As far as Hong Kong 
residents’ human rights are concerned, their duties and 
rights are all fully guaranteed by the Basic Law. There- 
fore, we hold that the establishment of a human rights 
commission in Hong Kong is, first of all, a violation of 
the Basic Law; and that will also create many hindrances 
to a smooth transition. That is unfavorable to Hong 
Kong's smooth transition.” 


He added that although Hong Kong Governor Patten 
repeatedly talks about the necessity of cooperation 
between Britain and China, the issue of a human rights 
commission shows thai he is in fact setting up new 
obstacles to Sino-British cooperation. This is unaccept- 
able to the Chinese side. 


98 HONG KONG & MACAO 


Zhu Yucheng pointed out that if the British Hong Kong 
authorities really set up a human rights commission in 
Hong Kong, the Chinese side will never recognize it, and 
the human rights commission will ceriainly be unable to 
continue operation after 1997. In addition, when asked 
about whether Hong Kong civil servants of foreign origin 
may achieve Chinese citizenship, Zhu Yucheng said that 
the Preliminary Working Committee is now considering 
this issue, and it is believed that a solution acceptable to 
ali parties concerned will be worked out. 


When attending another public occasion carlier yes- 
terday, Zhu Yucheng was asked about the issue of the 
new airport. He said that the Chinese side has never 
changed its attitude, and always hopes that an agreement 
between the Chinese side and the British side may be 
reached at an earlier date. 


He pointed out that as Director Lu Ping of the State 
Council's Hong Kong and Macao Affairs Office had said, 
the problem that the Chinese side and the British side are 
now trying to solve remains the financial arrangements 
for the new airport project. 


Se SS NUS CB Che SN Sa 


OW2605 143294 Beijing XINHUA in English 1352 
GMT 26 May 94 


[Text] Beijing, May 26 (XINHUA)—Vice-Premier Li 
Langing today restated the Chinese Government's “goal 
on the Hong Kong issue” as to resume the exercise of 
sovereignty on one hand, and to practice “one-country, 
two systems,” letting the Hong Kong people rule Hong 
Kong, on the other, so as to ensure further prosperity and 
stability there. 


He made the statement here today while meeting with a 
delegation from the Textile Council of Hong Kong 
headed by its Chairman Kenneth Fang. 


“To maintain Hong Kong prosperous and stable is not 
only the hope of the Hong Kong compatriots, but also 
the need of the whole nation,” Li said, calling Hong 
Kong “a bridge between the mainland and the outside 


Li noted that Hong Kong's public servants, who have 
rich administrative experience, had played an important 
role in achieving Hong Kong's prosperity. 


“We understand their predicament at present, and hope 
that they would continue to work with ease of mind,” he 
said. “We also hope that they would make continued 
contribution to the prosperity and stability of Hong 
Kong after 1997.” 


FBIS-CHI-94-103 
27 May 1994 


‘Roundup’ Stresses Legco Term To End in 1997 
HK2605 144994 Hong Kong ZHONGGUO TONGXUN 
SHE in Chinese 1216 GMT 9 May 94 


{“Roundup™ by Hong Wen (1738 2429): “The British 
Hong Kong Authorities Have No Right To Extend the 
Terms of Office of Legislative Councii Members Beyond 
1997"} 


[Text] Hong Kong, 9 May (ZHONGGUO TONGXUN 
SHE)}—Although the Chinese side recently had reiter- 
ated time and again that the three-tier councils of Hong 
Kong would definitely have to be dismissed and 
reelected in 1997, Hong Kong Government officials 
insisted at a Legislative Council [Legco] meeting today 
that the term of office for would-be council members 
would siill be four years, and thus could straddle 1997. 
Some Legvo members have therefore questioned this 
statement by the Hong Kong Government, which could 
mislead candidates and discourage them from viewing 
the transfer of sovereignty in 1997 as a ‘undamental 
change. 


The return of Hong Kong to China in 1997 will be a 
change which involves a transfer of sovereigmy, which is 
substantially different from events such as a certain 
party's stepping down while another rises to power in the 
UK. Therefore, generally, a new legislative body will 
have to be formed in 1997. 


However, there are indications that even now the Hong 
Kong Government has no intention of changing its stand 
on the issue concerning the term of office for Legco 
members. Instead, it is insisting on the four-year term of 
office for members of the three-tier councils, as provided 
in Chris Patten’s constitutional reform package. Legco 
member Chim Pui-chung maintains that the above pro- 
vision is obviously based on wishful thinking and may 
mislead the candidates. 

According to the set election schedule, by 30 June 1997, 
newly elected district board members will have been in 
office for not more than 32 months, while Legco mem- 
bers will have been in office for only 22 months. For both 
categories, the terms of office will be less than 4 years. 
Therefore, some public figures have pointed out that 
now that the Sino-British talks on the constitutional 
system have broken off, the Chinese side wil! definitely 
perform its duty to “set up another kitchen” according to 
the Basic Law by 1997. The British Hong Kong author- 
ities have no right to unilaterally set a four-year term of 
office for Legco members, because, if they do. they could 
be accused of disregarding China's sovereignty. 


Chim Pui-chung noted that the British Hong Kong 
authorities are juggling with words in order to extend 
their influence beyond 1997. This reflects the lack of 
frankness and sincerity on the part of the British Hong 
Kong authorities toward the Hong Kong people, a men- 
tality which is absolutely harmful to their administration 
in Hong Kong before 1997. Chim urged the Hong Kong 
Government to face the reality squarely and give the 


FBIS-CHI-94-103 
27 May 1994 


electorate a reasonable and clear explanation on the term 
of office for council members. 


Unnamed Official Critical of Visa for Han 
Dongfang 

HK 605043894 Hong Kong EASTERN EXPRESS in 
English 26 May 94 p 1 

(By Rain Ren and Bruce Gilley] 


[Text] China last night unleashed a stinging attack on the 
British and Hong Kong governments for allowing Han 


coming again this year. Han will stay here as long as the 
visa allows him to stay. So it is fair to say the Hong Kong 


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HONG KONG & MACAO 


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Government ‘Likely’ To Grant Visa to Dissident 


HK2705054694 Hong Kong EASTERN EXPRESS in 
English 27 May 94 p 2 


[By Rain Ren} 


[Text] The Government is likely to grant a tourist visa to 
Wu'er Kaixi, a leading Tiananmen Squcre student 
activist, if he promises to maintain a low profile and 
does not declare his intention to take part in open 
political activities during his planned July visit. 
Despite intense Chinese criticism, the Government also 
intends to continue giving sanctuary to Han Dongfang, 
one of China’s best-known labour activists. A senior 
government official said last night that Wu'er's applica- 
tion for a visa would be considered on its merits, adding 
that the decision would also have to take into account 
public interest. However, it is understood that Wu’er has 
not yet applied for a visa. 


Last week, Wu’'er said he intended to visit Hong Kong 
“to see friends” in late June and July. A Chinese official 


100 HONG KONG & MACAO 


reacted to this angrily on Wednesday, and accused the 
Government of intending to turn Hong Kong into a 
“subversive base” by sheltering Han, who has returned 
to Hong Kon; from the United States. 


China’s condemnation was rejected yesterday by the 
Government. A spokesman said Han’s case had nothing 
to do with allowing him to use Hong Kong as a “subver- 
sive base”. “We simply gave him a visa to stay here so 
that he can continue to press his case with the Chinese 
authorities to return to China.” 


The deputy to the Governor, Anson Chan, said yesterday 
that it was for the Government to maintain and safe- 
guard the basic freedoms of the Hong Kong people. 
“These basic freedoms include the freedom to express 
one’s views freely in a peaceful and lawful manner. 


“The question of offering hospitality for visitors to Hong 
Kong who might use Hong Kong as a base for subversion 
is quite a different matter. Neither the Hong Kong 
government nor the Hong Kong people wish to see Hong 
Kong being used as a base for subversion and we intend 
fully to abide by the concept of “one country, two 
systems” and, of course, this is a two-way street.” 


It is understood that Chan's remarks were in response to 
rumours that some Chinese democratic movement activ- 
ists were heading for Hong Kong to attend or organise 
public gatherings to commemorate the fifth anniversary 
of the June 4 massacre. 


Advisers Criticize Imprisonment of Reporter 
HK2705040294 Hong Kong SOUTH CHINA 
MORNING POST in English 27 May 94 p 2 


[By Doreen Cheung in Beijing and Linda Choy] 


[Text] China's jailing of MING PAO reporter Xi Yang 
came under attack yesterday from two Hong Korg 
affairs advisers. 


Speaking at a ceremony in Beijing in which she and 48 
other advisers were formally named, Chung Kei-wing 
pleaded for leniency towards Xi, who was jailed for 12 
years for “stealing state secrets”. 


Miss Chung, vice-chancellor of Shue Yan College, urged 
Chinese officials to grant parole of between three and 
seven years to Xi if he behaved well in prison. To do so, 
it would not be necessary for China to change its verdict 
on Xi, Miss Chung told officials. 


Another adviser, Shum Choi-sang, said he told officials 
the 12-year sentence was too heavy. Mr Shum said Xi 
had merely done his duty by Hong Kong people. 
“Whether it is right or wrong for him to do that is 
another issue,” said Mr Shum, adviser to the Newspaper 
Society of Hong Kong. 


Beijing was also criticised by another affairs adviser, 
Tsang Shu-ki, who said he was unhappy with the way 
China had dealt with the removal as an adviser of 


FBIS-CHI-94-103 
27 May 1994 


Meeting Point chairman Anthony Cheung Bing-leung. 
While China said it had withdrawn Mr Cheung’s invita- 
tion because he had insisted on being appointed as a 
representative of the Democratic Party rather than in his 
personal capacity, pro-China newspapers had given 
other reasons, Mr Tsang said. 


“Although I can’t say the left-wing newspapers represent 
China, it really gives the impression, there were political 
reasons behind Mr Cheung’s sacking,” he said. But 
another adviser, Chan Man-hung, who is a Meeting 
Point member, said Mr Cheung deserved his treatment. 


“It is the price he should pay”. “He wanted to be an 
adviser and he tried to cover up the merger” of Meeting 
Point and the United Democrats to form the Democratic 
Party, he said. In an open letter to Chinese leaders 
yesterday, Mr Cheung said Chinese policy towards Hong 
Kong had been wrong. He cited China's refusal to 
introduce direct elections in 1988 and said the Basic Law 
showed it had failed to incorporate the principle of 
“Hong Kong people ruling Hong Kong people”. 


Mr Cheung also lashed out at the mainland authorities 
for isolating the democratic forces in Hong Kong while 
trying to obtain support from the business sector. “By 
June 4 crackdown and isolating certain democratic fig- 
ures, (China) has further separated itself from Hong 
Kong society,” he said. 


He urged that transitional matters be discussed through 
the Sino-British Joint Liaison Group, whose openness 
should be increased. 


The franchise for the functional constituency elections 
should be expanded and the method of voting ought to 
be simple and fair. 


Governor Says ‘Worst’ Over in Relations With 
Bei; ag 

HK2705054294 Hong Kong EASTERN EXPRESS in 
English 27 May 94 p 2 


[By Victor Smart in London] 


[Text] The Governor, Chris Patten, has declared that the 
row between China and Britain over Hong Kong is 
subsiding despite the political stalemate over his demo- 
cratic reforms. 

“I believe that we are now through the worst of the 
political argument that we have had, alas, with China,” 
the Governor told an invited audience at the conserva- 
tive Carlton Club in London on Wednesday night. “I 
hope that we can find ways of co-operating elsewhere.” 


Patten's remarks reflect the Hong Kong government's 
belief that Beijing has now “ring-fenced” the deadlocked 
issue of democratic reforms, and is willing to work 
jointly on projects such as the building of the new 
airport. 


FBIS-CHI-94-103 
27 May 1994 


Patten drew strong p- els between the legacy of 
democracy Britain left . .d in post-colonial India and 
his hopes riding on the future of Hong Kong. Asserting 
that Britain had taught India the “literature of liberty”, 
Patten declared that by the time he left in 1997, he hoped 
to have “put the stamp of the continuance of an open, 
plura! society” on the territory. 


Yesterday, Patten reinforced his message about the over- 
whelming importance of the steps towards democratic 
accountability at a meeting in Manchester. 


He said: “If the Joint Declaration is implemented in full, 
I believe that Hong Kong will have a spectacular future.” 


The territory would be assured, he argued, of the role in 
relation to the Chinese economy that New York played 
in the opening up of the American continent. 


“If the Joint Declaration is not implemented in full, 
Hong Kong will put in jeopardy the characteristics which 
make it special—the rule of law, a free press, a high level 
of resistance to corruption,” he said. “Hong Kong wil! no 
longer be special and the potential offered by the historic 
‘one country two systems’ concept will have been squan- 
dered.” 


‘Liberal Party’ Reform Package Rejected by Chine 
HK2605034894 Hong Kong SOUTH CHINA 
MORNING POST in English 26 May 94 p 1 


[By Doreen Cheung in Beijing and Chris Yeung] 


[Text] Attempts by the Liberal Party and some indepen- 
dent legislators to craft a compromise version of the 
package of political changes proposed by Governor Chris 
Patten have fallen on deaf ears in Beijing. The coalition 
had hoped to win acceptance of amendmenis that would 
bring the proposals closer to the post-1997 political 
structure envisaged in China's interpretation of the Basic 
Law. But a senior mainiand official declined io give his 
blessing to adjustments that might reverse Beijing's 
present stance that the territory's political structure will 
terminate on July 1, 1997 and be replaced with one 
worked out between now and then. 


Deputy Director of the Hong Kong and Macao Affair; 
Office Chen Ziying, instead told 2 delegation of Hong 
Kong textile merchants in Beijing that “the British side 
can do whatever it likes to before 1997”. Mr Patten’'s 
—— come before the Legislative Council next 
month. 


Despiie repeated attempts to broach the possibility that 
China might accept the coalition’s compromise version 
of Mr Patten’s proposals, Mr Chen would make no 
comment. Under the Liberal Party's model announced 
last week, the total size of franchise for functional 
constituency elections would be reduced to no more than 
170,000. Mr Patten seeks to widen the franchise to about 
2.5 million. 


HONG KONG & MACAO 101 


Henry Tang Ying-yen, who ranks highly in the Liberal 
Party, said the delegation was told that the !995 Legis- 
lative Council had a lifespan of 20 months and would be 
disbanded by June 30, 1997, Mr Tang said a compro- 
mise was desirable to avoid a “ inated” 
legislature in 1995, apparently referring to the likelihood 
that a Legco controled by “small ‘T liberals” could not 
survive the changeover because China would not accept 
the “through-train” arrangement. “Mir Chen has not said 
ee Mr 
ang 


Leader of the delegation, Fong Hang, believed it was 
very difficult for China to commit itself on any Hong 
Kong affairs before 1997. 


Mr Tang quoted Mr Chen as stressing that the nine new 
functiona! constituency seats should not be turned into 
some form of direct elections in disguise. Mr Chen said 
workers should not be eligible to vote in the nine new 
functional constituency seats because there were aiready 
two seats for the labour sector. Mr Tang said Mr Chen 
agreed with coalition proposals that the existing corpo- 
rate voting system should be adopted for the nine extra 
seats. 


The Libera! Party and some independents held the view 
that their model would have a better chance to get 
through the Legislative Council if they could secure 
support from their pro-China co"eagues. A blessing from 
Chinese officials such as Mr Chen was regarded as vital 
in winning support from the pro-China side. 


Legislator Tam Yiu-chung of the Democratic Alliance 
for the Betterment of Hong Kong said vis group ~ appre- 

ciated” the efforts of the coalition, but would probably 
abstain in the vote after the debate scheduled for June 
29. “The Chinese principle is that ‘we will go ahead with 
our own plans’ and will not make any positive state- 
ments on the amendments. The possibility of getting 
support from them on the amendments is virtually 
zero,” he said, 


Mr Tam, a Preliminary Working Committee member 
eee a ee 
said officials from the Hong Kong and Macao 
A airs Office had not given them instructions on how to 
vote. “Whether the final blueprint is the original model 
oe the Galak Geek UA Gan to ene & 
China,” he said. 


Privately, mainland officials said they were not con- 
cerned which model Legco adopted. But at a separate 
meeting with the local businessmen, sentor Communist 
Party official Wang Zhaoguo warned that the attempt by 
the British Government to “leave its colonial legacy and 
ee a ET 
ail”. 


Mr Wang, the party’s United Front Work Department, 
claimed that more Hong Kong people were now aware of 
the real moiives of the British Government. “This will be 


102 HONG KONG & MACAO 


very conducive to the stability and prosperity of Hong 
Kong in the transitional period,” he said. 


La Ping Views Composition of Final Court of 
Appeal 


HK2705042194 Hiong Kong SOUTH CHINA 
MORNING POST in English 27 May 94 p 3 


[By the “Political Desk”) 


[Text] China yesterday dispelled fears that judges on the 
controversial Court of Final Appeal would have te be 
ethnic Chinese. 


Only the chief justice would have to be a Chinese 
national without the nght of abode overseas, said senior 
official Lu Ping. 

His disclosure drew a mixed response from the legal 
profession which, along with legislators, rejected the 
1991 Sino-British deal on the court which is to repiace 
the Privy Council after 1997. 


The agreement said the court would consist of five 
judges in any one sitting the chief justice, three local 
Judges and one overseas judge. The legal profession 
believed more than one overseas judge was needed to 
ensure the court's independcace under Chinese rule. 


Law Society chairman Roderick Woo Bun said iast night 
that he now accepted the “four-to-one” formula. But 
Simon Ip Sik-on, the lawyers’ representative in Legco, 
said Mr Lu's clarification did not allay his fears. 


Mr Lu was speaking after mecting the third batch of 
Hong Kong affairs advisers formally appointed in Bei- 
jing yesterday. Some had raised fears that there might 
not be enough qualificd ethnic Chinese to sit on the 
court. 


Mr Lu, the head of the Hong Kong and Macao Affairs 
Office, said: “According to the Basic Law, only the chief 
justice of the court should be a Chinese citizen without 
foreign right of abode. ‘There ts no nationality require- 
ment for other judges, not even the requirement of Hong 
Koag permanent residents.“ 


There had been fears that China would propose restric- 
tions on the “local” judges, saying they should be per- 
manent residents of Hong Kong without foreign nation- 
ality. But Mr Lu said: “There are (now) no ethnic 
Chinese sitting on the Court of Appeal. If it is stipulated 
that only ethnic Chinese can sit on the court, the existing 
expatriate judges may feel there is no future for them and 
may take early retirement. This may undermine the 
retention of talent.” He said China had taken into 
eccount the shortage of Chinese judges in the territory 
when drafting the Basic Law provisions. 


Last night, the Bar Association vice-chairman Gladys Li 
QC, said although Mr Lu had clarified some uncertain- 
ties in the 1991 agreemeni, the makeup of the court was 
still wnrceepiable because it did not allow flexibility. 


Johannes Chan, said the legal sector believed overseas 
jucges should be invited to sit on the court whenever the 
need arose. “It simply could not work if you had to have 


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A deputy director of XINHUA (the New China News 
Agency), Zhang Junsheng, said the setting up of the court 
had been delayed by the lack of initiative Britain. 


“The fact is that we have had an agreement ready on the 
table since 1991 and it is the British side which does not 


take it seriously.” 
Official Views of Land 
Disposal Along Airport 


11K2705042094 Hong Kong SOUTH CHINA 
MORNING POST in English 27 May 94 p 2 


[By Doreen Cheung in Beijing and Fung Wai-Kong) 

[Text] China could promise in principle to grant land 
along the airport railway for auction, but it should be 
included in the annual disposal programme, senior Chi- 
nese representative of the Sino-British Joint Liaison 


Britain wants to see the 62 hectares granted in one go. 


FBIS-CHI-94-103 
27 May 1994 


“We have adopted a positive attitude towards the land 
disposal programme. But this is not what they called 
granting in one go,” Mr Guo said. 

The Director of the State Council's Hong Kong and 
Macao Affairs Office, Lu Ping, has said China can agree 


agreement on the airport's financing. 
“We will explain the adverse impact on the Hong Kong 
economy and that of southern China by delays to Hong 
Kong's vital infrastructure ” said the leader of 
the delegation Paul Cheng Ming-fun. 
Delay in the of Chek would result 


[Text] The PAI HSING semimonthly magazine, after 
more than a decade in business, will close next month 
due to heavy financial losses. It is reported that Hong 
Kong businessman Tsui Tsin-tong has lost HK$20 mil- 
lion [Hong Kong dollars] since he became a partner of 
the magazine carly last year. 

Lao Chi-san, the magazine's general supervisor of the 
editorial board, formally informed the staff two days ago 
of the board of directors’ decision that the magazine will 


HONG KONG & MACAO 103 


The magazine was set up by local literary figure Hu 
Chu-jea in early 1980's. A total of 280 issues were 
published despite financial difficulties until early last 
year, when Tsui invested in it. To expand circulation, the 
semimonthly was changed into a weekly magazine on 2 
April last month, more workers were hired, and more 
color pages were added. The magazine was changed back 
into a semimonthly again in November last year to 
reduce losses. 


A source close to the magazine said that Tsui openly had 
said he would invest $HK 30 muillicn when he became a 
partner of the magazine a year ago. The magazine's 
josses have amounted to HK$20 million. 


The source added that Tsui had decided to invest in the 
magazine to keep the business going duc to his close 
relationship with Hu, the founder and the boss at the 
time, when the magazine was in financial straits a year 
ago. Tsui was also eager to run the magazine better and 
increase the circulation so “hat the magazine would 
continue to be published as it had been. 

After failing to increase circulation through increasing 
investment, changing the semimonthly into a weekly, 
and altering policy, the management decided to change it 
back to a semimonthly. The board of directors finally 
decided to close the magazine because it had incurred 
losses of HK$! million a month. 


The number of workers had increased to 70 or 80 after 
Tsui's investment, but it had gradually decreased to 20, 
the source added. 


ee 


OW 2605174794 Beijing XINHUA in English 1452 
GMT 26 May 94 


[Text] Hong Kong, May 26 (XINHUA)—The Interna- 
tional Travel Expo Hong Kong 94, Asia's biggest travel 
show, opened here today, drawing large crowds of travel 
agents from all over the world. 


The exhibition installed 75! counters supplied by travel 
agents, airlines and hotel management groups from 51 
countries and regions in Asia, Europe, North ind South 
America, Africa and Oceania. 


The show is three times bigger than the previous one, 
breaking all records, both in terms of floor space and the 
number of exhibitors, said Chen Wenjie, the expo's 
general manager. 


The Chinese group is the largest on the show, occupying 
more than half of the floor space. In conjunction, the 
China Travel Congress opened here simultaneously. 


104 HONG KONG & MACAO 


Guo Dongpo said that in the two years and more since its 
founding, the Association of Chinese Ente prises of 
Macao has done a great deal of effective work to promote 
economic relations and trade between Macao and the 
mainiand, as well as economic cooperation and trade 


progress, and ic development in Macao. Guo 
Dongpo called on the Association to continue to, as 
before, take an active part in Macao affairs during the 
transitional period, enhance its sense of urgency and 
historic responsibility, work with one heart and one 
mind, and make tiew contributions to Macao's smooth 
transition and to the motherland’s four modernizations. 
Zhang Xuming, president of the Association of Chinese 
Enterprises of Macao, said in his speech that in the days 
to come, the Association of Chinese Enterprises of 
Macao will offer even better coordination and service 


The Association of Chinese Enterprises of Macao, set up 
on 3 April 1992, now has 155 members. Zhang Xuming 
was reelected the president of the association during the 
current general membership meeting. 


Macao To Participate in Global 
Tourism Fair a 


OW2405 180394 Beijing XINHUA in English 1455 
GMT 24 May 94 


[Text] Macao, May 24 (XINHUA)—The Macao 


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Macao, Mainland Cooperate in Adult Training 
OW2405111094 Beijing XINHUA in English 0925 
GMT 24 May 94 


ext] Macao, May 24 (XINHUA)—The Macao Chinese 

Association and South China Normal Univer- 

sity have conducted a cooperation in adults training to 
boost educational development in Macao. 


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FBIS-CHI-94-103 
27 May 1994 


Macao, while the Macao Chinese Education Association 
offers school building and facilities, management ser- 
vices and help Soyth China Normal University to enroll 
new students. 


The Macao Government’s education departmeni has 
also extended great efforts to support educational coop- 
eration between Macao and Chinese mainland universi- 
ties. The local education department not only bears all 


HONG KONG & MACAO 105 


costs for trainees, approve diplomas given by the 
training classes, but has also adjusted bonuses for trained 
teachers starting from 1992. 


The ever 1,000 teachers who received training during 
1985-1994 period accounted for one-third of the total 
in-service teachers at Macao’s primary and middle 
schools. 


secondary source. 


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END OF 
FICHE 
DATE om 


MA