NATIONAL COMMITTEE ON UNITED STATES - CHINA RELATIONS

NATIONAL COMMITTEE ON UNITED STATES - CHINA RELATIONS

71 West 23rd Street, 19th Floor New York, NY 10010-4102 ANNUAL REPORT 2003 www.ncuscr.org B O ARD OF D IRECTORS* N A TIONAL C OMMITTEE ON U NITED S TATES- C HINA R ELATIONS

Chair Virginia Kamsky he National Committee on United Carla A. Hills Thomas H. Kean TStates-China Relations is a nonprofit Geraldine S. Kunstadter educational organization that encourages Vice Chairmen David M. Lampton understanding of China and the United William M. Daley Nicholas R. Lardy States among citizens of both countries. Lee H. Hamilton Kenneth Lieberthal The Committee focuses its exchange, William R. Rhodes Henry Luce III educational and policy activities on J. Stapleton Roy Elizabeth S. MacMillan international relations, economic James R. Sasser Richard H. Matzke development and management, Ezra F. Vogel Kathryn Mohrman governance and legal affairs, education Douglas P. Murray administration, environmental and other Treasurer Elizabeth J. Perry global issues, and the media, addressing Herbert J. Hansell Thomas R. Pickering these issues with respect to the People’s Joseph W. Prueher Republic, Hong Kong SAR and Taiwan. Secretary Henry P. Sailer The Committee’s programs draw strength Kathryn D. Christopherson Matt Salmon from its members, who now number Nicholas V. Scheele nearly 700 Americans from all parts of Michael H. Armacost James R. Schlesinger the country and about 70 corporations Nancy Kassebaum Baker David K.Y. Tang and professional firms. They represent Julia Chang Bloch Nancy Bernkopf Tucker many viewpoints, but share the belief Mary Brown Bullock I. Peter Wolff that productive U.S.-China relations Gareth C.C. Chang Madeleine Zelin require ongoing public education, face-to- Thomas J. Christensen face contact and forthright exchange of Edward T. Cloonan Chairmen Emeriti ideas. Jerome A. Cohen Doak Barnett (d.) Ken W. Cole W. Michael Blumenthal Barber B. Conable, Jr.1 Barber B. Conable, Jr. (d) Charles J. Conroy Alexander Eckstein (d.) Ralph A. Cossa Lucian W. Pye Douglas N. Daft Robert A. Scalapino Gary Dirks Raymond P. Shafer Martin S. Feldstein Charles W. Yost (d.) Barbara H. Franklin William E. Frenzel Directors Emeriti Peter F. Geithner Caroline L. Ahmanson Sam Gibbons Robert O. Anderson Bates Gill Theodore M. Hesburgh, C.S.C. Thomas M. Gorrie Carl F. Stover Harry Harding Jamie P. Horsley David A. Jones, Jr. *Effective December 5, 2002 – November 12, 2003 John T. Kamm 1Died November 2003

Calligraphy by Daniel Greenberg 1 L ETTER FROM THE C HAIR AND P RESIDENT

hat the people of the United States a program that dealt with another public the United States. Elections in Taiwan Tand China are interconnected and health scourge – HIV/AIDS – by giving scheduled for early 2004 promised interdependent was made clear in prominent Chinese activists heightened tension in cross-Strait numerous ways in 2003. The most opportunities to learn firsthand how relations, and the National Committee important indicator – trade between the community-based organizations in the therefore convened a meeting of Carla A. Hills two countries – expanded by 23.2% to United States deal with it. American experts in August 2003 to take Chair $191.7 billion dollars. Holdings of U.S. stock of the situation and examine what, Treasury notes by the PRC (excluding Our programs in 2003 also dealt with if anything, the United States should do Hong Kong SAR) grew 33.4% to $158 societal health. Corruption, like disease, differently. This and other sensitive billion. But it was the discovery of a is a problem that plagues all societies in questions were examined in a meeting mysterious new epidemic called SARS varying degrees. China’s “opening and between the Chinese Foundation for (Severe Acute Respiratory Syndrome) reform” has created enormous economic International and Strategic Studies that made it clear that human contact growth and better lives for hundreds of (CFISS), headed by former Vice Premier John L. Holden was also very much a part of Sino- millions of her citizens, but it has also Qian Qichen, and the Stanford-Harvard President American relations. resulted in a rapid rise in corruption. We Preventive Defense Project (PDP), led by were pleased to be able to offer specialists former Secretary of Defense William For several months SARS halted a great from China’s Ministry of Supervision the Perry. The quality of participants and deal of economic activity within China opportunity to witness how the United depth of interaction of both of these and filled newspapers and airwaves with States, at federal, state and local levels, programs resulted in highly productive dire speculation about whether China deals with corruption. The main discussions, and bore witness to the would become a wasteland and global “takeaway” for the delegation was that it unique value of the National Committee industrialists would move production is not possible for the government to as a catalyst for understanding both from China to India and other countries. effectively supervise itself; civil society among Americans, and between On April 20, 2003 the government of and the media must play a significant role Americans and Chinese. China dismissed its minister of health as well. and the mayor of Beijing, marking an Our work would not be possible without important milestone in the new, younger SARS wreaked havoc with the scheduling the energetic and effective involvement of – and more open – leadership of President of our activities this year. Ultimately, an extraordinary Board of Directors, an Hu Jintao and Premier Wen Jiabao. thanks to understanding funders and active membership, and a capable and When it finally became clear that it had partners, none of them had to be dedicated staff. Nor would it be possible not returned with the cooler, drier canceled. We were able to conduct our without the support of a number of weather of winter, for most people SARS four important multi-year programs in American foundations and corporations, faded quickly from memory like a bad 2003, the U.S.-China Teachers Exchange who are able to look over the horizon and dream. Program, the Foreign Policy Colloquium, invest wisely in the future. And it would the Time Warner Internship Program and not be possible without United States The National Committee responded to the Young Leaders Forum, each of which government programs that bring SARS through prudent steps to minimize is an important investment in the future Americans and Chinese together in risks to participants in our programs, and of U.S.-China relations. common enterprises that build bridges to through two programs that directly a better future. To all of these supporters addressed the disease’s ramifications and The status of Taiwan remains a question and friends we extend our most sincere technical means to deal with public that threatens peace and prosperity in gratitude. health crises. In 2003 we also conducted East Asia, and is thus of key concern to

2 3 2003 EXCHANGES AND C ONFERENCES

he National Committee’s 2003 implications for U.S. policy in the region. participants that significant changes primarily focused on North Korea; cross- Tconferences and exchanges reflect In August 2003, with the Taiwan could be unnecessarily destabilizing. Strait relations; and the effect of domestic our commitment to addressing cutting- presidential campaign gearing up and political situations in the United States, edge issues such as anti-corruption, with a new set of leaders in the PRC, the Thomas J. Christensen, professor of Taiwan, and the PRC on Asia-Pacific nuclear weapons proliferation and SARS time was ripe to re-examine cross-Strait politics and international affairs, regional affairs. – and to do so using a variety of formats relations and re-evaluate the effectiveness authored the conference report, which ranging from videoconferences to study of U.S. policy. Thirty specialists in was published as part of the National The Chinese delegation was led by former tours and internships. One of the keys to political, security, social and economic Committee’s China Policy Series. The Vice Premier and Foreign Minister Qian the success of these programs is the issues took part in the program “New report is posted on the National Qichen. Delegation members were generous contributions of time and Challenges and Opportunities in the Committee’s website; bound copies are former Central Party School head Zheng expertise from our network of directors, Taiwan Strait,” held August 8-10 at the available upon request. Bijian; Chen Xiaogong, Central Foreign members, friends and specialists. We Rockefeller Brothers Fund’s Pocantico Affairs Office; Zhan Maohai, China extend our sincere appreciation to the Conference Center. Support for the conference was provided Institute for International Strategic countless people who helped us develop by the Ford Foundation and the Studies; Qin Xiao, China Merchants and implement the conferences and The conference was designed to Rockefeller Brothers Fund. Group Ltd. and China Merchants Bank; exchanges described below. encourage an exchange of information Cui Liru, Institute of World Information; and ideas, rather than to generate Strategic Security Conference Chen Zhiya, CFISS; Zhang Tuosheng, INTERNATIONAL AFFAIRS consensus, and indeed, the different CFISS; Zheng Zeguang, Ministry of disciplines and perspectives of The National Committee has forged an Foreign Affairs, Yue Xiaoyang, Ministry of China’s growing economic, political and participants fueled an energized debate. effective partnership with the Preventive Foreign Affairs; Wang Jisi, Chinese military strength is now a common topic The discussions were enhanced by the Defense Project (PDP), the innovative Academy of Social Sciences; Yuan Ming, of discussion among both policy inclusion of business leaders active in and influential program conceived and Peking University; Huang Jiashu, Renmin specialists and the general public. The both Taiwan and the PRC, who provided led by former Secretary of Defense University; Huang Renwei, Shanghai following National Committee programs an “on-the-ground” perspective on how William J. Perry and former Assistant Municipal Center for International shed light on the roles that China plays integration is surging forward in the Secretary of Defense Ashton Carter. Studies; Zhang Yu, CFISS; Fu Xiao, regionally and globally, the range and economic sector. Since 1998, the National Committee has CFISS; and Wang Boyong, CFISS. China’s trajectory of its influence, and its collaborated with PDP in efforts to engage Ambassador to the United States, Yang interaction with other key players. When The agenda centered around three broad in dialogue with leading Chinese Jiechi, and its Consul General in New we deal with such sensitive issues, our questions: What remains the same in specialists about Northeast Asian security York, Liu Biwei, also took part in goal is to create a forum in which leading cross-Strait relations? What has concerns and U.S.-China relations. The conference discussions. American and Chinese specialists can changed? What is to be done? off-the-record, non-governmental nature exchange information and have a frank Participants discussed continuity in U.S. of the project encourages participants to In addition to Dr. Perry and Dr. Carter, exchange of views. policy toward cross-Strait relations and steer away from recitation of familiar American participants included Michael the persistence of strategic ambiguity; positions and explore creative policy H. Armacost, Stanford University; Jan New Challenges and Opportunities in new developments in the international approaches. Berris, National Committee on U.S.- the Taiwan Strait security situation and in the political, China Relations; Kurt Campbell, Center social, economic and military affairs PDP and the National Committee for Strategic and International Studies; In the summer of 2000, the National across the Strait; and the potential convened a strategic security conference Richard N. Haass, Council on Foreign Committee held a conference to examine consequences for American policy. in New York City, November 9-11, with Relations; John L. Holden, National the change in cross-Strait dynamics Although a number of suggestions were the program’s regular counterpart, China Committee on U.S.-China Relations; resulting from Chen Shui-bian’s election made for adjustments to U.S. policy, Foundation for International and David M. Lampton, Johns Hopkins earlier that year and to consider the there was a general sense among Strategic Studies (CFISS). Discussions University School of Advanced

4 5 International Studies; Thomas O’Gara, has developed a network of professionals International Finance Corporation, World ECONOMIC DEVELOPMENT O’Gara Company; James R. Schlesinger, and institutions that help us identify Bank Institute, Organization of American MITRE Corporation and Lehman topics for further exchanges that bring States, Center on Budget and Policy Growth in gross domestic product is only Brothers; Admiral Joseph Prueher, U.S. value to both sides. Priorities and Committee on Economic one means of measuring the soundness of Navy (ret.); General John Shalikashvili, Development, among others. an economy. Ensuring overall economic U.S. Army (ret.); and Elizabeth Anti-Corruption Delegation health also requires attention to other Sherwood-Randall, Preventive Defense The Washington policy discussions came indicators, such as environmental Project. Beijing has instituted several anti- alive during two days spent at the Federal degradation, income disparity, and job corruption campaigns – at the local, Law Enforcement Training Center loss and creation. There is strong interest GOVERNANCE AND LEGAL AFFAIRS provincial and national levels – to try to (FLETC) in Glynco, Ga. The schools and in both Greater China and the United ameliorate the problem, but efforts to training institutes on the FLETC campus States on ways to prepare workers for a In recent years, the National Committee’s date have been limited and temporary. – Inspectors General Academy, Financial changing economy, providing fertile programs in the field of governance and There is growing recognition in China Fraud Institute and Criminal ground for Sino-American exchanges legal affairs have focused primarily on that genuine, durable progress in Investigations Academy – demonstrated a involving professionals with experience in judicial and civic leaders, recognizing controlling corruption requires legal and wide range of capacity-building programs; government agencies, major corporations that effective implementation of the law judicial reform, new auditing systems, a these were supplemented by exhibitions and small businesses, and organized requires professional staff, adequate galvanized media and watchdog of mock trial courts and a model customs labor. organizations. and immigration facility. A full-day case study presentation on an anti-corruption Worker Retraining Delegation China’s Ministry of Supervision has been case presented the Chinese with interested in learning about the means situations that challenged them to The migration of Taiwan manufacturing that other countries employ to reduce consider how to conduct a covert to the Chinese mainland, as well as the official corruption. The National investigation. impact of globalization and major Committee was eager to work with them industrial restructuring, have had a on this important subject. Eight ministry The final two days of meetings in San significant effect on Taiwan’s representatives, including the directors of Francisco included briefings with unemployment rate, which reached an its three National Supervision Training representatives of the city’s Ethics historic high in 2003. To explore ways to Centers, took part in a two-week study Commission and Controller’s Office, a alleviate the impact of job loss on the tour of the United States in September judge from the U.S. Court of Appeals, the Taiwan workforce, the National that focused on measures to combat U.S. Attorney for the Northern District of Committee sent a delegation of worker corruption, institutions and legal California and top security officials from retraining specialists to Taipei and regulations relevant to the process, the Federal Reserve Bank of San Kaohsiung in April 2003. The group was Former Securities and Exchange Commissioner Rod Hills (seated, left) and former U.S. Trade Representative Carla Hills (seated, second from right) training methodologies, and the roles Francisco. hosted by the Employment and shared their perspectives with the Anti-Corruption Delegation. played by citizens and the media. Vocational Training Administration of the resources for training, and a commitment Delegation members, all from the Council of Labor Affairs. to public accountability. Despite Briefings in Washington, D.C. gave the Ministry of Supervision, were Liu differences in the two countries’ legal group exposure to both multilateral and Chunjin, Han Henglin, Cui Hairong, Yang The project had two purposes: to frameworks and traditions, American and U.S. government initiatives, as well as to Xiabai, Xu Zezhou, Wang Lihua, Kong introduce delegation members to the Chinese legislators, judges and agency the role of civil society in combating Xiangren and Qiu Xiaomin. The program challenges and opportunities facing officials have found value in sharing their corruption. Delegation members met was funded by the State Department’s Taiwan in the area of employment and knowledge and experience. Through with representatives of six different Bureau of Educational and Cultural training and to give Taiwan audiences these exchanges, the National Committee federal agencies, as well as the Affairs. information on the policies and tools

6 7 Americans have used to stimulate worker integrates services for the unemployed, EDUCATION States in September-October 2003. The retraining. In workshops in Taipei and such as unemployment benefits, 20 K-12 teachers who participated in the Kaohsiung, delegation members were able employment consultation and vocational The National Committee’s education program will be able to incorporate this to give a well-rounded view of American training. The delegation also was programs look to the future of U.S.-China information, as well as their own experience in this field, with impressed by its visit to the Phoenix relations, recognizing that the door to observations, into their schools’ course presentations on the federal government’s Foundation, a non-governmental another country may first open during work, particularly social studies, history organization engaged in training the classroom study. Our exchanges enable and English language instruction classes. handicapped for employment and by teachers to enrich their curricula through The program marked the National discussions with management and union firsthand contact with citizens of the Committee’s continuing role in representatives at the China Steel other country, in-depth discussions on implementing annual exchanges between Corporation. history and exposure to modern society. the U.S. Department of Education and the These enriched curricula, combined with Chinese Ministry of Education, which Delegation members were Carolyn the newly bolstered enthusiasm of the began in 1980. (The counterpart trip to Golding, former deputy assistant teachers, are sparking the interest of a China, the Fulbright-Hays Summer secretary of labor; Willie Walker, former new generation of American and Chinese Seminar to China, was postponed until director of employment and training for students and facilitating their 2004 because of SARS.) the city of Detroit; Harmon Lisnow, understanding of another country and its executive director of the Institute for people. The delegation’s stops in Boston, Career Development, a labor- Philadelphia, Washington, Atlanta, management partnership for training The National Committee is able to draw Oklahoma City, Tulsa and San Francisco

The Southern Vocational Training Center in Kaohsiung introduced steel workers; and Gustavo Crosetto, on a substantial body of experience and a Gus Crosetto and other delegates to worker retraining initiatives. former vice president for corporate rich network of contacts to identify and learning at Fannie Mae. develop new programs in the education perspective on worker retraining and re- field. For 25 years, we have implemented employment programs; coordination In November, three members of the programs on behalf of the U.S. among federal, state and local efforts to delegation reprised the Taiwan program Department of Education and the improve access to employment and during a study tour of the PRC. Hosted Ministry of Education, building effective educational services; corporate by the Ministry of Labor and Social partnerships with these two key responsibilities in offering educational Security, the delegation took park in institutions. Many exchange participants opportunities to workers; and joint workshops held in Beijing, Chengdu and remain engaged in the Committee’s work, labor/management training programs. Wuhan; visited local employment hosting delegations in their schools or centers; and observed training programs homes, and providing guidance in One of the highlights of the trip was a in place at the Chengdu Aircraft determining themes or topics for future tour of the Banciao Employment Service Industrial Corporation and Wuhan Steel exchanges. Center, modeled after American “one- stop” centers designed to serve the needs The study tour was supported by a grant U.S. History, Education and Culture for of both job-seekers and employers. The from the State Department’s Bureau of Chinese Educators Delegation Banciao Center, which opened in Educational and Cultural Affairs. February 2003, had its genesis in a visit Chinese educators received thorough to a Detroit one-stop center by a National lessons in American history, culture, Committee-led delegation of Taiwan labor society and education systems during a Members of the Educators Delegation found time spent leaders in July 2001. The new center three-week study tour of the United in American classrooms to be especially valuable.

8 9 provided effective backdrops to the study Northwest Normal University Affiliated opportunities to improve their own teachers gave lectures on the U.S. tour themes of the American Revolution, High School (Gansu Province); Hua Defu, language and teaching skills, develop a education system and civics education; Civil War, westward expansion, and Lanzhou No.1 High School; Wang Feng, deeper understanding of another culture, another contact developed through the modern government and society. The Qinghai Normal University Affiliated High and incorporate ideas and experiences in Teachers Exchange Program arranged a itinerary also incorporated discussions on School; Xu Yinsheng, Xining No. 7 High their home classrooms upon their return. the continuing influence of these School (Qinghai Province); Zhang Yixian, historical events and trends on American Northwest Polytechnic Affiliated High For Chinese teachers coming to the consciousness. For instance, in School (Shaanxi Province); Liu Le, Xi’an United States, the National Committee Philadelphia, the group toured the Foreign Languages School; Liu Lijun, arranges an orientation program to National Constitution Center, a new Gaoxin No.1 High School (Xi’an); Zhang prepare for new teaching and living museum that uses interactive exhibitions Yajing, Xinhua High School (Tianjin); environments; maintains regular to explain the U.S. Constitution. Wang Xueling, Tianjin High School; Zhao communication to ensure teachers are Subsequent discussions with University Shuyu, Nankai High School (Tianjin); managing their adjustment to American of Pennsylvania Law School faculty and Chen Jia, No. 20 High School (Tianjin); life; convenes a mid-year conference for with a history teacher at Conestoga High Zheng Xuan, No.2 Experimental Primary the group to share experiences; and, School gave delegation members greater School (Beijing); Feng Lin, Beijing shortly before the teachers’ return to insight into the American legal system Normal University Experimental High China, arranges a ten-day study tour that and the role of civics education in School; Ruan Guojie, Beijing Normal provides a broader context of American American schools. University No. 2 Affiliated High School; history, culture and education than they Chinese teachers took part in an orientation program before starting the Xiao Yuanqi, Renmin University Affiliated see in one community. Their American school year at their American schools. Given their shared interests as educators, High School (Beijing); and Chen Yanhu, counterparts are similarly prepared and it was not surprising that the visits to five Renmin University Affiliated Primary supported by National Committee staff full and varied itinerary for that elementary schools and five high schools School (Beijing). during their stay in China. delegation’s program in Oklahoma. prompted some of the delegation’s liveliest discussions. Public, private, The project was supported by a grant Participants in the 2003-2004 academic Chinese teachers for the 2003-2004 charter and magnet schools, as well as from the U.S. Department of Education. year program – eight American teachers academic year and their host schools meetings with local, state and federal and 21 Chinese – proved to be were Chen Damin, Belmont (MA) Public education administrators, were all on the U.S.-China Teachers Exchange Program resourceful and innovative in their Schools; Cui Xianwen, Milwaukee School agenda. American and Chinese classrooms. They incorporated cultural of Languages; Feng Wei and Liu Renjie, educators debated funding needs, The U.S.-China Teachers Exchange material and group activities into their Staples High School (Westport, CT); Gao maintaining fairness in education, the Program works in American and Chinese lessons in order to more fully engage Changcui, Garden School (Queens, NY); interplay between national and local classrooms to promote greater students in learning a new language or He Dongliang, Brookline (MA) High regulation of education, and other issues understanding of the two countries about another country. School; Hu Yingjie and Xia Haibo, School of mutual interest. among teachers, students and host District of La Crosse (WI); Huang communities. Supported by the Freeman Program participants and alumni also Xichang, Quincy Upper School (Boston); The delegation was led by Dr. Yuan Foundation, this innovative program have proven to be a valuable resource in Jiang Qin, Jackson Middle School Zhenguo, deputy director-general, places American teachers in Chinese developing other National Committee (Portland, OR); Liu Wenhui, Saint Department of Teacher Training at the secondary schools and arranges exchange programs, often contributing Edward’s School (Vero Beach, FL); Liu Ministry of Education, and included Zhao placements for Chinese teachers at time, ideas and expertise. For instance, Xingshi, Benjamin Banneker Academy Jianjun, Ministry of Education; Cheng elementary, middle and high schools in during the above-mentioned U.S. History, (Brooklyn, NY); Wang Yi, Woodstock Jinhui, Ministry of Education; Zhang the United States for an academic year. It Education and Culture for Chinese Elementary School (Portland, OR); Xi Zhen, Tianjin University; Liu Xinsheng, is designed to provide teachers with Educators Delegation, returned American Zhuhong, Southampton (NY) Public

10 11 Schools; Xie Chunlei, Snowden The program has been funded since its program mentors, and talented and cultural resources that Atlanta, Los International School (Boston); Xu Wei, inception in 1996 by the Freeman enthusiastic interns. Angeles and New York have to offer, Milton (MA) Public Schools; Zhang Foundation. The National Committee regularly visiting museums and other Dingding, Beacon School (New York, NY); implements the program in cooperation In September 2003, five students from sites. Zhang Shuang, Lincoln School with the Beijing-based China Education Fudan University in Shanghai arrived in (Brookline, MA); Zhou Dongmei, Association for International Exchange. the United States for an orientation Academy of Accelerated Learning program and three-month internships at (Milwaukee, WI); Zhu Yan, Henniker MEDIA various Time Warner divisions. The © Elsa Ruiz (NH) Community School; and Zou Meili, week-long orientation program, which Kearsarge Regional Middle School (New The media is a significant player in U.S.- included stops in New York, Boston and London, NH). China relations, often providing the Washington, provided a brief introduction citizens of both countries their first to American history and contemporary The American participants and their host impressions, lasting images and society, as well as practical information schools were Papa Assane Ba, Beijing No. continuing education about the other. on working environments and living 94 Middle School; Perry Bradford The National Committee has found that arrangements. With high expectations, Badgley, Nanjing Teachers University despite sharp differences in media the interns then embarked on their Affiliated Middle School; Dan Becker, operations in both countries, there is still assignments: Li Qianyi, a law major, was considerable scope for productive placed at FORTUNE; Zhang Jiexuan exchanges. The media are changing in (Anita), an English major, began work at Time Warner executives Clark Xu, Peter Wolff and Lisa Barry welcomed the important but different ways in both TIME; Zheng Ranran (Sabrina), who interns at the National Committee’s gala dinner. countries. In China, for example, the studies journalism, took on the newest media is now required to be economically internship at Warner Music; Yan Jie All of the interns were thoughtful and self-supporting, which has resulted in the (Jennifer), a humanities major, went to articulate, as demonstrated during their need to attract viewers, readers and, Warner Bros.; and Shi Ying (Tina), an appearances in public programs. The ultimately, generate profits. English major, reported to CNN. three New York-based interns spoke to students in a world history class at In addition to exchange programs, the The internships are designed to give the Hunter College High School and to National Committee maintains frequent students both a broad overview of National Committee and China Institute contact with American and Chinese operations at one of Time Warner’s members at a panel program; the CNN media representatives, inviting them to divisions, and to find a niche in which intern spoke to an Atlanta high school public programs, providing background they might develop and contribute their and college; and all of the interns spoke at

Outside the classroom, American teachers in China received instruction in information for stories and taking part in own expertise. In the deadline-driven a Los Angeles high school. The topics at making dumplings. interviews. world of news and entertainment media, these events ranged from the role of the this presents a challenge to the interns Communist Party, to Taiwan, and to how Nanjing No. 29 Middle School; William D. Time Warner Internship Program and their mentors. But the results the media shapes perceptions of Bronski, Yangzhou University Affiliated demonstrated their resourcefulness and American life among people around the Middle School; Kristina James, Suzhou The Time Warner Internship Program tenacity: articles published in FORTUNE, world. No. 1 Middle School; Ira Perelson, Luhe continues to exhibit the hallmarks that an interview with pianist Lang Lang in Middle School (Beijing); John Regan, have made it such a success since its TIME and helping to arrange CNN’s The National Committee developed this Xinhua Middle School (Yangzhou, inception in 1998: strong support from interview with Premier Wen Jiabao were program on behalf of Time Warner Inc. Jiangsu); and Douglas Robbins, Suzhou the highest levels of the corporate among the highlights of the interns’ work. and has administered it for the past six No. 10 Middle School. sponsor, outstanding commitment of the They also took full advantage of all the years. It also promotes continuing

12 13 contact among the 27 alumni of the range of stakeholders in setting policy New York City, at the Asian & Pacific The Department of State’s Bureau of program, through a listserv and programs priorities. Islander Coalition for HIV/AIDS and the Educational and Cultural Affairs in Shanghai. Chinese-American Planning Council. Li sponsored this project, with supplemental HIV/AIDS Education Fellows Dan divided his time between support from the C.E. and S. Foundation. GLOBAL ISSUES Philadelphia’s AIDS Services for Asian The United Nations estimates that 0.1 Communities and the Massachusetts SARS: Its Impact on China’s Politics, China’s increasing integration into world percent of China’s adult population AIDS Prevention Project in Boston. Tian Economy and Society affairs means that it shares greater (approximately 1.3 million people) is Lichun was placed in the Bay Area, at responsibility for addressing issues of currently infected with HIV, and that by Asian Health Services in Oakland and the As the SARS crisis unfolded, many global concern. Environmental 2010, 10 million Chinese adults will be Asian & Pacific Islander Wellness Center speculated as to whether SARS might degradation and threats to public health HIV-positive, with 260,000 children in San Francisco. serve as a catalyst for change in the PRC. are two examples of problems that cross orphaned as a result of AIDS. To consider the potential impact on borders; they also benefit from Independent philanthropists and non- All of the host organizations were able to China’s politics, economy, media and multilateral efforts to mitigate impacts governmental organizations (NGOs) have expose the Fellows to a wide range of civil-state relations, the National and find solutions. emerged in China to remedy the blight of prevention outreach initiatives, which Committee convened specialists from HIV/AIDS in geographic areas and took place at health fairs, at parties and academia and industry for a half-day While the issues are transnational in segments of society that might otherwise bathhouses, and in Internet chatrooms. conference on June 18 in New York. nature, they require local-level action. prove beyond the reach of China’s central The Fellows learned how to select The National Committee has arranged and local governments. outreach venues, build trust with clients In her keynote presentation, Laurie exchange programs that focus directly on and develop culturally appropriate Garrett, a prize-winning medical and To strengthen the capabilities of some of outreach materials. They also received science writer for Newsday, reported on these independent NGOs, the National lessons in operational and management her recent investigations in China, Committee developed a two-month issues, such as establishing a board, presented some theories of the origin of fellowship program for three Chinese fundraising and budgeting. SARS and identified conditions that HIV/AIDS educators: Hu Jia, cofounder facilitated the spread of the virus. Other and executive director of the Beijing A nine-day orientation program, with speakers examined the response of Aizhixing Institute of Health Education; briefings at government agencies and China’s new leaders to the unfolding Li Dan, founder of the Dongzhen AIDS NGOs in San Francisco, Washington and crisis; the capacity of the economy to Orphans Project; and Tian Lichun, Atlanta, enabled the Fellows to hit the weather the short-term effects of SARS; researcher and project manager of the ground running when they arrived at the impact of SARS on China’s relations Yunnan Reproductive Health Research their posts. A four-day national with its neighbors and trading partners; Association. conference in Atlanta, focusing on and challenges in reporting on SARS. community-based HIV/AIDS prevention, The core of the program was six-week provided an occasion for the Fellows to An audience of about 150 National placements at community-based health meet midway through their stay and Committee members and guests attended U.S. community-based organizations gave Tian Lichun, Li Dan and Hu Jia training in outreach and education. clinics that serve Asian-American interact with dozens of specialists. At the the public program. Their questions populations. Working in these settings wrap-up session in San Francisco, which focused on the potential for a recurrence these global issues, and it also includes enabled the Fellows to communicate took place just prior to the return to of SARS, the availability of reliable public these topics among those addressed by comfortably in Chinese and, since disease China, the Fellows shared some of their health information, and interaction delegations of local leaders. These and lifestyle are frequently culture-bound experiences with each other and between the World Health Organization programs can prove especially useful in issues, this arrangement also helped ease considered ways to implement innovative and the Chinese public health system. demonstrating the value of including a cultural sensitivities. Hu Jia was based in new approaches in their home institutions.

14 15 In addition to Ms. Garrett, conference videoconference program on “Managing made a presentation on SARS in engineering, biotechnology, computer speakers were Thomas Conley, Toy Public Health Emergencies” facilitated a Shanghai. science and other technical and scientific Industry Association; Joseph Fewsmith, discussion between American and fields are heavily represented in the ranks Boston University, William McCahill, Chinese specialists on ways to track and The lively discussions that followed of the Chinese leadership elites. Wilmer, Cutler & Pickering; Minxin Pei, address public health concerns, as well as speaker presentations focused on the International affairs and political science Carnegie Endowment for International educate the public about these issues. effectiveness of quarantines, ways to specialists were in the minority; all gather health-related data, delivering Two iterations of the program were held. information to the public, and public The first, linking New York and Beijing in welfare versus individual rights. mid-July, featured presentations by Farzad Mostashari of the New York City The Ford Foundation provided financial Department of Health and Mental support for the videoconference Hygiene on syndromic surveillance programs. In-kind support was provided systems; Lee Reichman, executive by Citigroup, the U.S. Department of director of the National Tuberculosis State and the U.S. Consulate in Shanghai. Center at the University of Medicine and Dentistry of New Jersey on managing SPECIAL PROJECTS multi-drug resistant TB; journalist Patricia Thomas on media coverage of the Foreign Policy Colloquium anthrax-contaminated letters; and National Committee director Thomas How can the next generation of China’s Dr. Lee Reichman (center) discusses TB during a videoconference to China. Gorrie, an executive vice president of leaders gain greater awareness of the Robert McNamara answered students’ questions about the Cuban missile crisis. Johnson & Johnson, on lessons that dynamics, institutions and processes that Peace; Stephen Roach, Morgan Stanley; company learned in responding to shape American foreign policy? In June participants demonstrated keen interest Yang Xiyu, Permanent Mission of the tampering of Tylenol bottles in 1982. 2003, the National Committee and The in foreign policy, as evidenced by their People’s Republic of China to the United Discussion of these American case George Washington University’s Elliott incisive, articulate questions and Nations; and Arnold Zeitlin, Editorial studies – including best practices and School of International Affairs launched a comments. Research and Reporting Associates. mistakes – was intended to provide major new initiative to help meet this information of value as China assessed its challenge: the U.S. Foreign Policy The agenda featured a distinguished The program was supported by Johnson response to the SARS crisis. Dr. Yang Colloquium (FPC). Two hundred roster of speakers, including a keynote & Johnson, the John D. and Catherine T. Xiaoguang, deputy director for Chinese students, who are enrolled in address on “America’s Role in the World” MacArthur Foundation, Morgan Stanley information release at China’s Center for graduate programs at American by Senator Chuck Hagel; former and New York Life Insurance Co. Disease Control (CDC), gave candid universities, took part in the intensive, Secretary of State Madeleine Albright’s remarks about lessons learned from three-day Washington program, which talk on the role of public opinion in U.S. Managing Public Health Emergencies SARS. gave them opportunities to hear firsthand foreign policy; three students’ interview reports from seasoned American foreign of Assistant Secretary of State James As SARS-related travel advisories forced Based on the success of this program, a policy experts. A small number of Kelly; and former Secretary of Defense the postponement of exchange programs, second broadcast, between New York and American graduate students from the Robert McNamara’s remarks about the the National Committee turned to Shanghai, was held in November, with Dr. Washington area also took part. Cuban missile crisis, which followed a videoconferencing as a means of bringing Mostashari, Dr. Reichman and Ms. screening of the film Thirteen Days. American and Chinese citizens together Thomas reprising their roles. Dr. Lu Wei, The colloquium was open to individuals Other presentations shed light on the role to discuss issues of mutual concern. A deputy director of the Shanghai CDC, from all fields of study, since students of of interest groups and the media in

16 17 shaping foreign policy and public opinion. Young Leaders Forum and Zhou Mingwei, vice minister of the Hongyan, Trier University of Applied The students broke into small groups one State Council’s Taiwan Affairs Office. Science; Ma Liangwei, Beijing Municipal afternoon for site visits to 15 foreign An exceptional network of dynamic Institute of City Planning and Design; policy-related government agencies and young American and Chinese leaders has The scenic surroundings and social Steven Okun, United Parcel Service; non-governmental institutions. A begun to take shape under the auspices of activities enhanced the interaction Gregg Pasquarelli, SHoP/Sharples, simulation exercise gave participants a the National Committee’s Young Leaders among the YLFers. A sunrise hike to the Holden, Pasquarelli; Qiu Zhijie, The Long chance to put in practice some of the Forum (YLF). YLF was inaugurated in top of Mount Huang, a tour of Ba Gua March Foundation; Joshua Ramo, John concepts they were exposed to over the May 2002 and by the time of the second Cun (a Ming dynasty scholar’s village) Thornton Group; Philip Reeker, U.S. course of the FPC. gathering, in November 2003, it was clear and a boat ride on West Lake were among Department of State; Rui Chenggang, this network had been strengthened and the highlights. Many commented that the enriched through ongoing contact among exchange of information in these more the Fellows. The diversity of professions, informal settings proved to be most viewpoints and personal experiences valuable, during which time YLFers represented in the program feeds a explored differences and similarities creative exchange that has the potential between American and Chinese culture, to open new fields of cooperation traditions, world views, business between China and the United States. practices and other areas. These discussions have continued since the The 24 original Fellows were joined by a close of the 2003 gathering, through new class of nine Americans and nine listservs and informal gatherings. Chinese. YLFers now include professionals from business, academia, Participants in the 2003 Forum were government, the military, non- Roger Barnett, Activated Holdings; Roslyn governmental organizations, the media Brock, Bon Secours Health System; Students enjoyed a site visit to Capitol Hill. YLFers shared their views on change and tradition during panel and the arts. The theme for the 2003 Cheng Wenhao, Tsinghua University; Du presentations. gathering, held October 31-November 5, Changping, Fuyang City Municipal FPC participants felt the program met its in the scenic Chinese locales of Government; Fang Xinghai, Shanghai China Central Television; Shao Yibo, objective of immersing students in the Huangshan and Hangzhou, was Stock Exchange; Stephan Fowlkes, visual Eachnet.com; Todd Sigaty, Village Focus foreign policy process. One student “Balancing Change and Tradition.” artist; Fu Jun, Peking University; International; Tara Wang, Elan PR; wrote, “After this session, it is fair to say YLFers shared their expertise and Gabrielle Giffords, Arizona State Senate Orlando Wang, Deutsche Bank AG; most of the Chinese participants know perspectives during panel presentations and Giffords Capital Management; Paul William Wechsler, Greenwich Associates; the process of American foreign policy on foreign policy; preserving community Haenle, Office of the Joint Chiefs of Staff; Weng Ling, Shanghai Gallery of Art; Xing decision-making better than the process lifestyles and the environment; Ted Halstead, New America Foundation; Yi, Taikang Life Insurance Co., Ltd.; Xu of China’s. I hope they can be translators international trade, investment and Alexandra Harney, Financial Times; Qiyu, National Defense University; or icebreakers whenever a crisis occurs in financial systems; managing people and Darryll Hendricks, Federal Reserve Bank Robert Yung, Intel Corporation; Zhang the future between China and the United technology; governance; the role of the of New York; Jack Hidary, Prism Fund; Geng, Bingjiang District Government, States.” media; and evolving styles of artistic Mark Kelly, National Aeronautical and Hangzhou, Zhejiang Province; and Zheng expression. YLFers also gave high marks Space Administration; Stacy Kenworthy, Baohua, Center for Community The FPC, an annual event, is supported to the invited speakers, who included Cui Optifacio, Inc.; Brian Li, Beiya Industrial Development Studies. by The Coca-Cola Company. It is held on Tiankai, head of policy planning at the Group Co.; Li Hong, Shu Jin Law Firm; the campus of George Washington Ministry of Foreign Affairs; Victor Yuan, Liu Yadong, Medley Global Advisors; Lu The 2003 YLF was supported by Time University. head of China’s leading polling company;

18 19 P UBLIC E DUCATION AND O UTREACH

Warner Inc., PepsiCo Inc., BP, UPS and Jason Wang of the RAND Graduate hrough conferences, seminars, panel January 21 the Ford Foundation. The Chinese School for Policy Studies, emphasized the Tprograms, publications and e-mail Roundtable Discussion People’s Institute for Foreign Affairs need for collaboration in the public briefings, the National Committee “Contemporary Issues in Taiwan” served as the Chinese host for the health sphere in his essay, “Time is Ripe provides information about the major Speaker: Dr. Hsiao Hsin-huang, program. for Increased U.S.-China Cooperation in issues in U.S.-China relations directly Academia Sinica Health.” On the Chinese side, the judges from policy-makers and opinion leaders The Forum will return to the United awarded first place to two writers. The on both sides of the Pacific. The January 23 States in 2004, with a fall gathering essay of Xia Nailing of Duke University Committee’s website is another channel Panel Discussion planned for Arizona. focused on “Toward a Win-Win Outcome for public outreach. Summaries of “Standoff on the Korean Peninsula: via ‘Peripheral Cooperation’” and program events, reports in the China Defusing North Korea’s Nuclear A. Doak Barnett Essay Contest suggested that cooperation in public Policy Series, recent articles and Ambitions” administration could prove fruitful. Li Li, speeches on U.S.-China relations, and Speaker: William J. Perry, Harvard- The National Committee honors the from the University of New Mexico, links to useful resource materials are Stanford Preventive Defense Project memory of one of its founders, A. Doak looked at “The Internet, Educational among the features posted on the website Discussants: Samuel S. Kim, Columbia Barnett, through an annual essay contest Exchange and Sino-U.S. Relations” and (www.ncuscr.org). University; Xiaobo Lu, Columbia for American and Chinese graduate described ways in which American and University; Tsuyoshi Sunohara, Nihon students. In the third year of the Chinese could productively exchange Programs were held in New York City, Keizai Shimbun. competition, students used their 1,500- views electronically. American Mark unless otherwise indicated. Cosponsored with Asia Society, Japan word essays to address this challenging Jacobs, of Cornell University, received an Society and The Korea Society. question: “New leaders are at the helm in honorable mention for his essay, “Mutual both China and the United States. Understanding, Its Relevance and a January 24 Against this backdrop, what issue Means to Achieve It,” in which he Discussion provides the greatest opportunity for recommended bringing together small “Standoff on the Korean Peninsula: these leaders to enhance Sino-American groups of Chinese and American Defusing North Korea’s Nuclear cooperation?” A distinguished panel of university students. Ambitions” American and Chinese academics joined Speaker: William J. Perry, Harvard- Jeanne Barnett, Doak’s wife, in selecting First prize awards were $1,000. All four Stanford Preventive Defense Project. the winners. essays were published in the National Cosponsored with Brookings Institution. Committee’s newsletter. Washington, DC Essayists addressed a range of topics, such HIV/AIDS, cooperation through The essay contest is supported by February 4 joint nation-building efforts, and contributions to the A. Doak Barnett Corporate Members Briefing strengthening the U.S.-China business Memorial Fund. Speaker: Michael Jemal, President and relationship. The winning American, CEO, Haier America

February 10 Film Screening and Discussion “China in the Red” Speaker: Sue Williams, Ambrica Productions. Cosponsored with Asia Society and FRONTLINE.

20 21 March 18 June 20 September 24 Discussion Roundtable Discussion Discussion “China’s Investment Climate: A Report “Political Developments in Taiwan” Dai Xianglong, Mayor of Tianjin from the Field” Speaker: Bi-khim Hsiao, Member, Municipality and Delegation

Speaker: Christian Murck, American Legislative Yuan, Taiwan Cosponsored with US-China Business © Kaveh Sardari Chamber of Commerce, Beijing Council and Asian American Business September 10 Development Center April 7 Corporate Members Briefing Corporate Members Briefing Speaker: Clark T. Randt, Jr., U.S. November 12 “Economic Challenges and Policies under Ambassador to the People’s Republic of Annual Members Program China’s New Leadership” China Panel Discussion Speaker: Justin Yifu Lin, China Center “New Directions in China’s Foreign for Economic Research September 17 Policy” Conference Panelists: Chen Xiaogong, Central April 7 “Opportunities of Closer Economic Foreign Affairs Office; Cui Liru, Chinese National Committee Chair Carla Hills welcomed Premier Wen Jiabao to a Washington dinner in his honor. Book Discussion Partnership Arrangement, China’s First Academy of Social Sciences; Yuan Ming, Speaker: David Shambaugh, George Free Trade Agreement” Peking University; Zhang Tuosheng, Washington, University, author of Luncheon Speech China Foundation for International and Modernizing China’s Military Donald Tsang, Chief Secretary for Strategic Studies Cosponsored with Asia Society and Administration, Hong Kong SAR Council on Foreign Relations Cosponsored with Hong Kong Economic December 9 & Trade Office, Hong Kong Trade Dinner Address June 18 Development Council, Hong Kong Premier Wen Jiabao Conference Association of New York Cosponsored with America-China “SARS: Its Impact on China’s Politics, Society, Asia Society, Center for Strategic Economy and Society” September 23 and International Studies, Committee of Book Discussion 100, Council on Foreign Relations, U.S.- Speaker: Carl Walter, JPMorgan Chase & Chamber of Commerce, US-China Co. and author, Privatizing China: The Business Council, U.S.-China Policy Stock Markets and Their Role in Forum Corporate Reform. Washington, DC

September 24 December 9 Roundtable Discussion Time Warner Interns Panel Discussion “China’s News Media” “Youthful Voices: A Candid Discussion Speaker: Hu Shuli, Caijing magazine with Chinese University Students” Speakers: Li Qianyi, Zhang Jiexuan and Zheng Ranran. Moderator, Adi Ignatius, TIME

Professor Yuan Ming (center) discusses China’s foreign policy at the Annual Members Program.

22 23 G ALA G O VERNANCE AND M EMBERSHIP

he National Committee’s biennial he 77th Meeting of the Board of Lampton, and Kathryn Mohrman. Tgala dinner was held on September TDirectors was held in New York City At the 77th session of the Board, 10 at The Plaza in New York City. The on November 13, 2003. The 37th Annual Directors appointed Henry A. Kissinger to Freeman Foundation, U.S. Department of Members’ Meeting was held on November the Board, and elected the following Education and Citigroup were recognized 12, 2003. Members present (or by proxy) officers of the Committee: Carla A. Hills, during the evening’s program for their elected the Board Class of 2006; three chair; William M. Daley, Maurice R. efforts in opening and strengthening individuals were also elected to the Class Greenberg, Lee H. Hamilton, William R. channels of communication between of 2004. Rhodes, J. Stapleton Roy and James R.

All photos this page: © Elsa Ruiz American and Chinese citizens. Sasser, vice chairmen; Herbert J. Hansell, Class of 2006 treasurer; Kathryn D. Christopherson, Secretary of Education Rod Paige was the secretary; and John L. Holden, president. featured speaker. In his remarks, he Ray Bracy outlined a new agreement between the Kathryn D. Christopherson At-large Board Members Michael H. Department of Education and China’s Edward T. Cloonan Armacost, Dennis C. Blair, Thomas J. Ministry of Education to encourage Ken W. Cole Christensen, Barbara H. Franklin, English and Chinese language learning Ralph A. Cossa William E. Frenzel, Thomas H. Kean, over the Internet. William M. Daley Nicholas R. Lardy, Robert A. Levinson, Martin S. Feldstein Kenneth J. Lieberthal, D. Bruce The gala, a major source of unrestricted Barbara H. Franklin McMahan, Robert S. McNamara, Douglas support for the National Committee, Peter F. Geithner P. Murray, and Joseph W. Prueher, joined generated $775,000 in gross revenue. Bates Gill the officers to comprise the Executive Much of the success was due to the work John T. Kamm Committee. of the dinner co-chairmen, Thomas R. Virginia Kamsky Pickering, senior vice president for Thomas H. Kean Herbert J. Hansell was appointed international affairs at The Boeing Nicholas R. Lardy chairman of the Audit Committee; Carla Company and William R. Rhodes, vice Terrill Lautz A. Hills, chair of the Compensation chairman of Citigroup Inc. Thomas R. Pickering Committee; Virginia Kamsky and D. William R. Rhodes Bruce McMahan, co-chairmen of the Matt Salmon Development Committee; Kathryn D. David K.Y. Tang Christopherson, chairman of the Nominating Committee; and David M. Lampton, chairman of the Program- Class of 2004 Strategy Committee.

Top Left: Distinguished guests included Vice Thomas J. Christensen Minister of Education Zhao Qinping and U.S. Ambassador to China Clark T. Randt, Jr. Herbert J. Hansell Carla A. Hills Middle Left: Honorees Buck Freeman (Freeman Foundation), Rod Paige (U.S. Department of Education) and Bill Rhodes (Citigroup) accepted Four Directors left the Board through honors on behalf of their organizations. rotation or retirement as of November 12, Bottom Left: Ray Brace of Wal-Mart chats with 2003: Nancy Kassebaum Baker, Manhattan Borough President C. Virginia Fields. Geraldine S. Kunstadter, David M.

24 25 F INANCES

he activities of the National Spencer Stuart Associates INDIVIDUAL CONTRIBUTORS TCommittee are made possible by the Time Warner Inc. HSBC USA, Inc. support of U.S. government agencies, Wal-Mart Stores, Inc. Port Authority of New York & New Jersey Benefactors particularly the United States Sit Investment Associates Michael H. Armacost Department of State and United States Benefactors Kathryn D. Christopherson Department of Education, foundations, BP Other Jerome A. Cohen business firms, Members and friends. ConocoPhillips The Artley Group, Ltd. Barber B. Conable, Jr. This support enables the Committee to FedEx Corporation Barbara Franklin Enterprises Hart Fessenden maintain service to the public at large Frank Russell Company David A. Miller & Associates, Inc. John H. Foster and to undertake exchanges and special General Motors Corporation IBA Bates Gill programs that contribute to the Hills & Company Herbert J. Hansell advancement of knowledge and Hong Kong Economic & Trade Office FOUNDATIONS AND SPECIAL Harry Harding strengthening of relationships on both Intel Corporation CONTRIBUTORS Loren W. Hershey sides of the Pacific. Johnson & Johnson Carla A. Hills Jones Day The Caroline Leonetti Ahmanson John L. Holden We are indebted to those who made Kamsky Associates Foundation Michael K. Ipson financial contributions during Fiscal Year New York Stock Exchange Jeanne Badeau Barnett Trust David A. Jones, Jr. 2003 (October 1, 2002 – September 30, The News Corporation The C. E. and S. Foundation Virginia A. Kamsky 2003) and to the many individuals who Pepsico, Inc. The Ford Foundation David M. Lampton gave so much of their time, creativity and PricewaterhouseCoopers LLP The Freeman Foundation Nicholas R. Lardy in-kind assistance. Financial Shearman & Sterling LLP The Henry Luce Foundation Lawrence J. Lau contributors are listed below and on Tyco International, Ltd. The Huang Hsing Foundation, Inc. Kenneth Lieberthal succeeding pages. United Parcel Service, Inc. The Jack Hidary Foundation Elizabeth S. & Whitney MacMillan Wachtell Lipton Rosen & Katz The LWH Family Foundation Gregory McLaughlin MAJOR CONTRIBUTIONS AND Watson Wyatt Worldwide John D. and Catherine T. MacArthur Robert S. McNamara GRANTS TO THE NATIONAL Foundation A. Kenneth Nilsson COMMITTEE Patrons McNamara Foundation Thomas M. O'Gara Alcoa Inc. Smith Richardson Foundation, Inc. Chih-Lan Woo Olson BUSINESS AND PROFESSIONAL Hong Kong Trade Development Council The Starr Foundation Thomas R. Pickering CONTRIBUTORS Hyatt Corporation Thomas M. & Victoria O'Gara Foundation William R. Rhodes JPMorgan Chase & Co. United Board for Christian Higher David Rockefeller Leaders Levcor International Education J. Stapleton Roy American International Group, Inc. Lucent Technologies U.S.-China Legal Cooperation Fund Henry P. Sailer Archer Daniels Midland Company Milbank, Tweed, Hadley & McCloy U.S. Department of Education Matthew J. Stover A.T. Kearney, Inc. Morgan Stanley U.S. Department of State Christopher J. Szymanski The Boeing Company New York Life International The WEM Foundation David Vikner ChevronTexaco Corporation The Reader’s Digest Association Woo's Foundation Inc. Citigroup Inc. 3M Patrons The Coca-Cola Company Stonebridge International, LLC Marilyn Beach Ford Motor Company Toy Industry Association, Inc. Lucy Wilson Benson McMahan Securities Co. L.P. Tyco Electronics Corporation Michael Blumenthal Polaroid Corporation Frank Ching

26 27 Ralph A. Cossa P. Richard Bohr Ky Kuo Mrs. Mervyn W. Adams Seldon Charles T. Cross Kay Boulware-Miller Verna H. Kuo Roy C. Sheldon Lee Cullum John Brademas Samuel Y. Kupper Harold K. Skramstad, Jr. Martin S. Feldstein Robert P. Brannigan Chris R. Lanzit Jeffrey A. Smith William E. Frenzel Mary Brown Bullock Terrill E. Lautz Carl J. Spector Joel N. Glassman John Burns Joseph W. Lee Mrs. Carl W. Stern Betty Lou Hummel Richard C. Bush III Benjamin L. Liebman Jeremy J. Stone Geraldine S. Kunstadter Janet A. Cady Diane E. Long Leslie Stone Nicholas R. Lardy Jeffrey Catanzaro Timothy J. Long Patricia Stranahan Susan B. Levine Ji Chen Herbert M. Lord Roger W. Sullivan Robert A. Levinson Angel Chi Stanley B. and Judith Lubman Robert G. Sutter Winston and Bette Bao Lord Robert G. Cleveland LaRue R. Lutkins Fred S. Teng June Mei Joan Lebold Cohen Richard W. Lyman Harry E.T. Thayer Michael J. Midling Jill M. Considine Francis George Martin Lorraine Toly Christian Murck Frederick W. Crook Richard H. & Billie Ann Matzke Seymour Topping Robert L. Nichols William J. Cunningham James P. McCarthy Peter Van Ness Roberta & Charles Paturick Virginia Cutchin Tun-Hsu McCoy David W. Vikner Lucia Pierce Deborah Davis Michael A. McDevitt Ezra F. Vogel Lucian W. Pye David B. H. Denoon W. Clark McFadden II Karl Von Vorys Bruce L. Reynolds John R. Evans James McGregor John A. Wallace Arthur H. Rosen* Nicholas W. Fels Adrienne Medawar Charles Pei Wang Dorothy Rostov Gloria Garfinkel Phil L. Midland John Wang Gene Rostov Peter F. Geithner W Mitchell Leon J. Weil Richard J. Schager, Jr. Michael Goettl R.K. Morris John A. Wickham Robert A. Scott Ann M. Grossman William L. Nash Richard L. Williams Donald L. Staheli David L. Grossman Peter D. Nickerson Margaret S.Wilson Carl F. Stover Carol Lee Hamrin* Eugene A. Nojek Raymond H. Wong Donald J. Swanz Jay Henderson Kevin J. O'Brien Sharon L. Woodcock Elizabeth Wang Darryll Hendricks Suzanne P. Ogden John Young I. Peter Wolff Richard A. Herold Lois Oksenberg Renqiu Yu Nancy Young Ruth G. Hinerfeld Steven Okun William H. Yu Frederick W. Hong Dwight H. Perkins Donald S. Zagoria Sponsors Jamie P. Horsley Christopher H. Phillips Marvell C. Allen Chun-tu Hsueh Nancy T. Pickford Members Robert B. Anderson Bobby R. Inman Michael L. Privitera L. Desaix Anderson Peter H. Antoniou David E. Jeremiah Joseph W. Prueher Donald Anderson William Armbruster John Thomas Kamm Thomas W. Robinson David M. Bachman I. Allen Barber II Irving J. Karp Alan D. Romberg Norton Belknap Carol Edler Baumann Virginia Kassel Lester Ross Richard Belsky Suzanne Reynolds Bennison Elizabeth D. Knup Martha A. Rubin J. Chester Cheng Thomas P. Bernstein Helena Kolenda William R. Schultz Jane Creel John A. Bohn John A. & Nancy Koltes Brent Scowcroft Lawrence Daks

28 29 S TATEMENT OF F INANCIAL P OSITION

Bruce Dickson Laurence J. C. Ma Statement of Financial Position September 30, 2003 Albert E. Dien Barrett L. McCormick Michael Ditmore David E. McGiffert ASSETS W. Nicholas Driver Diane Y. Montalto Dorinda Elliot Donald Oberdorfer Cash and cash equivalents ...... $ 1,802,744 Albert Feuerwerker Michael J. O'Neill L. Gordon Flake Virginia L. P'an Investments ...... 949,383 John W. Garver Hector P. Prud'homme Grants and contributions receivable, net...... 2,164,885 Carol Giacomo Jane Washburn Robinson Other receivables ...... 4,698 Thomas B. Gold Robert A. Scalapino Program advances, exchanges and other assets ...... 28,185 Linda Greenhouse Dorothy J. Solinger Donna M. Guenther William M. Speidel Security deposits ...... 4,613 Louis H. Heilbron Gerald R. Stryker Fixed assets, net...... 39,862 A. Elgin Heinz Ronald Suleski ––––––––––– Franklin W. Houn Jan C. Ting Mei-ling Hsu Nancy Bernkopf Tucker TOTAL ASSETS ...... $ 4,994,340 Stephen W. Jarrett Thomas G. Weiss ======Frank Kehl Susan H. Whiting Donald W. Klein Damian Woetzel LIABILITIES AND NET ASSETS Damon Lawrence Molly Read Woo Herbert Levin Cheng Li Accounts payable and sundry liabilities...... $ 237,281 John T. Ma * A. Doak Barnett Memorial Fund Refundable advances ...... -- Deferred rent ...... 29,253 ––––––––––– TOTAL LIABILITIES ...... 266,534

NET ASSETS

Unrestricted Undesignated...... $ 594,813 Board-designated ...... 663,100 Temporarily restricted...... 3,469,893 ––––––––––– TOTAL NET ASSETS ...... 4,727,806

TOTAL LIABILITIES AND NET ASSETS ...... $ 4,994,340 ======

30 31 S T AFF 2003

Condensed Statement of Activities for the Year Ended September 30, 2003 President Program Assistants John L. Holden Charles Donohoe Daniel Greenberg Temporarily Totals Vice President Unrestricted Restricted 2003 Jan Carol Berris Associate for Logistics Kimberly Catucci Vice President for REVENUES: Administration and Development Administrative Managers U.S. Government grants $ -- $ 453,022 $ 453,022 Rosalind Daly Millicent Clinton Contributions 498,771 3,312,702 3,811,473 Daya Martin Special events (net) 663,100 -- 663,100 Senior Director for Education Programs Executive Assistant Investment income and other 14,033 -- 14,033 Margot E. Landman Meredith Champlin Net assets released from restriction 2,189,781 (2,189,781) -- Senior Director, Accountants Corporate and Public Programs Barbara Reiter –––––––––– –––––––––– –––––––––– Anne Phelan Patricia Gilani TOTAL REVENUES 3,365,685 1,575,943 4,941,628 –––––––––– –––––––––– –––––––––– Senior Program Directors Interns Shenyu Belsky Elizabeth Hallinan Sean Molloy Lige Shao EXPENSES: Yvonne Wang Programs 2,150,313 -- 2,150,313 Program Officer Management and administration 614,559 -- 614,559 Kathryn Gonnerman Fund-raising 121,274 -- 121,274 –––––––––– –––––––––– –––––––––– TOTAL EXPENSES 2,886,146 -- 2,886,146 –––––––––– –––––––––– –––––––––– Change in net assets 479,539 1,575,943 2,055,482 Net assets beginning of year 778,374 1,893,950 2,672,324 –––––––––– –––––––––– –––––––––– Net assets end of year $1,257,913 $3,469,893 $4,727,806 ======

The above information was extracted from the audited financial statements, which are available upon request.

32