EEKLY OF NEWS AND VIEWS

Vol. 31, No. 31 August 1-7, 1988 's Foreign Debts: Are They a Problem?

Beijing^?]"!- HIGHLIGHTS OF THE WEEK The Dalai Lama's 'New Proposal'

VOL. }], NO. 3! AUGUST 1-7, 1988 • At a recent press conference in Strasbourg, France, the Dalai Lama distributed a speech containing his "new proposal" to make Tibet a "democratic political entity governed by CONTENTS itself" He attempted to deny Tibet's status as an inalienable part of China's territory under Chinese sovereignty and to MOTES FROM THE EDITORS 4 internationalize "the Tibet issue." He also professed wish to The Dalai Lama's 'New discuss matters with the Chinese central government. In fact, Proposal' this way is always open provided the Dalai Lama will contribute to safeguarding the unity of the motherland and EVENTS/TRENOS 5-9 Tibet's prosperity (p. 4)." Li: Keep to Reform, Stabilize Economy China s GNP Up in First Half Opens Its Doors to the World Year Offidai Profiteering Erodes • Nanjing blends the features of an ancient capital and an Economy industrial centre. Recently incorporated into China's coastal Prices Raised for Cigarettes, open economic zone, the city is fast becoming both a modern LiqinM- metropolis and a living museum to its distinguished history . Sino-USSR Trade Makes (p. 14). Headway Rut Pushes Literary & Artistic Freedom GNP Up in First Half Year Weekly Chronicle (July 18-24) • China's national economy continued to show good progress mTERNATIONAL 1013 in the first half of this year, with the gross national product Iran-Iraq; Important Turning reaching more than 557.5 billion yuan, up 11 percent from the Point ^ . same'perfod Fast year,(p. 5). South Africa: Black Leader Admired Worldwide US-Soviel Union: New Chapter in Does China Face a Debt Crisis Military Relations The United Stales: Drought Pushes • As China has opened to the world, its foreign borrowi^ig has .World CJrain Prices Up greatly increased. Demands for repayment will peak in the mid 1990s. However, analysis suggests that so long as exports Nanjing Opens its Doors to the expand and the debt repayment rate stays below 20 percent, World 14 China will be able to avoid a debt crisis (p. 23). Nanjing Opens Its Doors to tite World (Black-and-white Pictorial) Does China Face a Debt Crisis? 23 Nelson IVIandela Admired Worldwide

FROM THE CHINESE PRESS 24 • Imprisoned for the past 26 years. Nelson Mandela has won BUSINESS/TRADE 25 the adniiration and support of all those who believe injustice in TOURISM 26 the world through his unyielding struggle against the ruthless COVER: Jinling Hotel in Nanjing (left). persecution of the Pretoria regime (p. 10). Chinese and American technicians of the Sino-US Goulds Deep-Weil Pump- L'actory (upper right). Naijing Harbour (lower right).

Subscription rates (1 year): USA.. US$24.00 Published every Monday by General Editorial Office Tel: 8314318 Australia A.$24.00 Can423.00 BEIJING REVIEW English Dept Tel: 831.5599 Ext. 546 New Zealand NZ.$33.00 24 Baiwanzhuang Road, Distributed by China International Book UK. £13.00 Beijing 100037 Trading Corporation (GUOJI SHUDIAN) The People's Repubjic of China P.O. Box 399, Beijing, China •1 NOTES FROM THE EDITORS

The Dalai Lama's 'New Proposar

by An Zhiguo n June 15, the Dalai Lama held will not make any concession on development from feudal serfdom Oa press conference at the the question of sovereignty." to a socialist society reflects both European Parliament building in In his June 15 speech, the Dalai the onward march of history and Strasbourg, France. He dis• Lama claimed that the history of the "demands of the Tibetan tributed a copy of a speech Tibet's independence could be people. Admittedly, during the ten containing a "new proposal" for traced back over 2,000 years. years of the "cultural revolution," making Tibet a "democratic People knowledgeable of Tibet's Tibet suffered a great deal like political entity governed by itseir' history know that after Songzain other parts of China. But in the ten which would maintain relations of Gambo united the various tribes years since, the Chinese Commu• "alliance" with China. of Tibet in the seventh century, the nist Party has corrected "leftist" Last September, at a Human Tubo Dynasty went through a mistakes and Tibet has experien• Rights Subcommittee meeting of period of over 200 years of unified ced great changes which are the US House of Representatives, development. When the Tubo evident to all. the Dalai Lama presented a "Five- Dynasty fell in 842, Tibet was As regards Tibet's population, Point Plan" on the "Tibetan again divided, with no tribe being shortly after the peaceful liber• position." There are some vari• subordinate to another. By the ation in 1951, it was no more than ations between the formulations middle of the Yuan Dynasty in the 1 million. Now it is 2.02 milHon, of the speech and the "Five-Point 13th century, Tibet was formally 1.93 million (95 percent) of whom Plan," but there are no substantial included in the territory of China. are Tibetans. Only 73,000 are differences: Both attempt to Its political and religious systems Hans, and the rest are from other tamper with history, distort were all determined by the central nationalities. The Dalai Lama's reality, and deny Tibet's status as government, which ever since has accusations have not a leg to stand an inalienable part of China's exercised sovereignty over Tibet. on. territory under Chinese sovereign• He also claimed he had selected ty. Their aim is to internationalize The Dalai Lama alleged that a negotiation group and was thC' so-called Tibet question. The after the Chinese "armed inva• prepared to meet the Chinese Chinese government and people sion" of Tibet in 1949, the region government. A Chinese authorita• will not tolerate this. experienced the darkest period of tive source commented: "So far we The fundamental difference its history, with the occupation have not received any formal between the Chinese government resulting in the death of more than letter, cable or oral statement from and people on the one hand and 1 million people and the massive the Dalai Lama demanding the Dalai Lama on the other is immigration of Han people into discussions of questions with the whether to safeguard or split the Tibet. The statements are utterly central government. In fact, the unity of the motherland. groundless. In 1951, Tibet was way is always open to discussions Dalai will never succeed if he liberated peacefully after the 17- of questions between the Dalai attempts to internationalize the Article on Measures for the Lama and the central government. Tibet issue and rely on the support Peaceful Liberation of Tibet was "As long as the Dalai Lama has of foreign forces to achieve his aim signed in Beijing between the a sincere desire to improve of splitting the motherland. So far, Central People's Government and relations with the central govern• there is no government (including the Tibetan local government. ment and wishes to contribute to Britain, the United States and This put an end to Tibet's history safeguarding the unification of the India) which has denied that Tibet of suffering foreign aggression. motherland, promoting unity is part of China. In his cable to Chairman Mao between the Tibetans and Hans, The Chinese authorities have Zedong on October 24, 1951, the and the people of other nation- solemnly declared: "China's Dalai Lama expressed full support aHties and to Tibet's development sovereignty over the Tibet region for this agreement on behalf of and prosperity, we are ready at all is undeniable. The independence, the Tibetan local government as times to welcome him or his semi^ndependence and disguised well as the ecclesiastics and secular representatives in China or at any independence of Tibet will not do. people in his homeland. Chinese embassy to discuss The People's Republic of China Over the past 30 years, Tibet's matters." •

4 BEIJING REVIEW, AUGUST 1-7, 1988 m EVENTSARENDS

Product (GNP) reached more than 557.5 billion yuan between Li: Keep to Reform, Stabilize Economy January and June, up 11 percent from the same period last year. The increase in agricultural hina will stick with reform, for optimum labour organization, input in the first half of this year stabilize its economy, and lay economic efficiency has been C brought welcome improvements a solid foundation for more improved." to farming condifions. Chinese reforms and economic develop• Another urgent task is to find farmers spent 44.7 billion yuan on ment next year, Premier Li Peng some way to make the best use of means of production in the first six said on July 15 at a meeting of the the country's surplus labour force, months, a 24.3 percent rise from State Council, China's highest the premier said. the same period last year. governing body. In the area of agricultural This year's total summer grain "China's overall economic production, Li said commercial output will remain at about the situation for the first half of this departments should ensure sup• same level as that of last year year looks good," Li said, adding plies of chemical fertilizer, pesti• despite drought, flooding and that the country's gross national cides and plastic film during other natural disasters, said Zhang output hit 550 billion yuan farming seasons, and also do more Zhongji, the bureau's spokesman. (USS148.7 billion) in that period, to help fight drought and flood. As a result of by-product 11 percent higher than the figure As for the current craze of purchase price readjustments, reported last year, calculated in setting up trade companies, Li more cash crops such as cotton, terms of comparable prices. said, the State Council has decided sugar, tobacco and fruit were Li also said that China's gross to stop approving the registration planted in the January-June industrial output value and of new trade firms and suspend period. The area devoted to cotton national revenue increased by 17.2 business dealings by those firms crops this year will be 486,000 and 10.2 percent respectively which resell high-demand goods hectares more than last year, and compared with the same period in for profit. • sugar crops will use an increased 1987. area of 200,000 hectares. However, he went on, the current China's GNP Up According to statistics from 26 level of economic efficiency is provinces, municipalities and unsatisfactory because the in• In First Half Year autonomous regions, the numben creased revenue is the result of of pigs slaughtered in the first half higher prices and not of less hina's national economy con• of this year went up 2.5 percent material consumption or higher Ctinued to show good progress from the corresponding period efficiency. in the areas of production, last year. The bureau predicted the The implementation of major construction, circulation and alleviation of pork shortages. price reforms, explained Li, needs distribution in the first half of this the support of the people. Price year. Farmers earned higher incomes hikes have to be curbed, and According to the State Statistics as the prices of their products regular checks on commodity Bureau, China's Gross National continued to rise. Compared with prices should be made to protect consumer interests. The Shanghai No. 2 Woollen Mill Is the country's leading earner of profits and foreign More than 90 percent of the exchange in the wool trade. ZHANG LIUREN nation's revenue comes from taxes, Li said. In their attempts to attract more foreign investment, local governments should try to improve the investment environ• ment rather than simply offering more tax breaks to foreign investors, he continued.

"Enterprise reform has to continue because enterprises are the main source of state revenue. By introducing competition into the personnel system and pressing

BEIJING REVIEW, AUGUST 1-7, 1988 EVENTS/TRENDS the same period last year, the per- commodity retail volume topped Goods and Materials Trading capita cash income in rural areas 344.5 billion yuan, an increase of Centre of Jiangdu County, rose more than 25 percent, in real 24.6 percent from the same period Jiangsu Province. The trading terms more than 10 percent if price last year with consumer goods centre then sold the bills back to rises are taken into account. sales showing the fastest rise. the Production Materials Service Business activities in rural areas Despite the increase in the Company in Pingdingshan where further developed. Between country's GNP, Zhang said, the the cars were stored. January and June, the output economy is still plagued by a At this point the price had gone value for township industries hit growing imbalance between sup• up to 69,500 yuan each. The 76.8 billion yuan, up 32.8 percent ply and demand, and by sharp Pingdingshan company, also with• from the same period last year, price increases. out picking up the cars, is now and that of industries run by He said the price hikes still need selling them at 75,000 yuan each. villages also jumped 30 percent. to be brought completely under A supply station of the Zhang said, however, the sharp control. The total retail price Production Materials Service increase in the growth of industry index rose by 13 percent in the first Company in Luoyang, Henan and the slow recovery of six months of this year, and the Province bought 353 tons of agriculture actually widened the cost of living for residents in 32 of rubber at 3,900 yuan a ton from gap between the two areas. China's cities increased by an the Jinzhou Oil Refinery in Investment in fixed assets average 14.4 percent. Northeast China on the pretence slowed. China invested 67.8 In many places, the spokesman of developing industrial produc• billion yuan in fixed assets for said, the continuous rise in prices tion. But the supply station sold state-owned enterprises for the has caused abnormal market half the rubber at a higher price to period in question, Zhang said. fluctuations, panic-buying and an a trading company in the city of "Although that was a rise of 14.2 instability in consumption Jinzhou where the rubber had percent from the same period last patterns. been bought not long before. year, the rate of increase was less As this year is a critical one for The trading company sold the than for the corresponding period the country's reforms the bureau rubber to the city's two other last year which stood at 21.5 has urged departments concerned trading companies which sold it to percent. to take measures to readjust the yet atiother trading company in In capital construction, 32.6 relation'BdtweBh prices aild wages ChangzhOu, Jiangsu Province. Ipillion yuan, or 71.4 percent, w^nt' ihd intensify efforts to solve the After all this changing of hands to production projects, compared imbalance between supply and the price of the rubber reached with the 67.1 percent last year. demand. • 5,730 yuan a ton, and the trading Spending on non-production companies made more than projects was down to 28.6 percent 570,000 yuan in profits, even from last year's 32.9 percent. Official Profiteering though the traded rubber re• About 9,200 new projects, each Erodes Economy mained in storage in Jinzhou all costing more than 50,000 yuan, the time. were launched during the period, People's Daily said in a 401 less than last year. ore government organiza• commentary that government M tions and officials are taking organizations engaged in illegal Some economists warn that advantage of their positions and buying and selling have seriously there are still too many projects taking up illegal profiteering. damaged China's commodity under way in non-production In Henan, five Soviet-made cars production and the image of the areas. They call on local were sold at 36,900 yuan each by Party and the government. Their governments to firmly cut back on the Mid-South Car Trading activities have a negative effect on such projects to help restrain Centre. They were bought by the the current economic reform. swelling consumption. Production Materials Service Zhang said state income rose Company of the Goods and Some busineses, said the paper, 10.2 percent by the end of June Materials Administration in Xin- were established by officials who and urban residents' incomes also hui County, Guangdong Province have left office. They try to make showed a marked increase. By the in February, 1987. money under the pretence of end of June, saving deposits The Company, without taking contributing their "remaining totalled 349.3 billion yuan, 41.9 the cars out of a depository in energy." But in fact they are billion yuan more than at the Pingdingshan, a city in the making use of their "remaining beginning of this year. province, sold, not the cars, but power." He said the total social the bills at a higher price to the Companies set up by Party and

6 BEIJING REVIEW. AUGUST 1-7, 1988 government departments have promote the country's market has gone up too rapidly in recent been strongly emerging. In one system and better gear enterprises years." province alone this year, 56 such to the market by allowing the law In 1987, the output of grain- companies were reportedly being of value to play its full role," said made alcohol was almost double set up. And in one small city, 106 State Council spokesman, adding that of 1980 at 1.1 billion gallons, companies were established in one that the new policy will also help he explained, and last year beer year. More applications are guide production, adjust market output increased 650 percent over submitted every day. demand, check speculation and 1980 to hit 1.3 billion gallons. Making use of their authority increase state income. China uses 14 million tons of and the difference between state- Observers speak highly of the grain a year to make alcohol, set and market prices, employees change, seeing it as the first major which is equal to the monthly and officials of these organi• price reform step since eggs, ration for all the country's one zations have become rich through vegetables, pork and sugar went billion people. Yuan noted. unfair means. up in April. He also said, "China should not In a bid to curb the practice of At present, 13 brands of use so much grain to manufacture profiteering in an official way, the cigarettes and 13 brands of spirits because the country's General Office of the Party alcohol are on the floating-price arable land is small compared to Central Committee and the State list, reported Li Changbi, an its population, so price levels will Council jointly issued on July 21 a official from the State Admini• be used to curb consumption." circular palling for the disbanding stration of Commodity Prices. "Price reform will contribute to of government office-backed, According to Li, the state also promoting production and supp• profiteering-oriented companies. plans to raise the price of other ly," Yuan stressed, "which is in The circular said Party and quality and imported cigarettes line with the people's interests." government institutions and pub• and any alcohols made from grain. • lic officials are strictly forbidden Li predicted the prices of from engaging in business. famous brand cigarettes could A clear distinction must also be soar anywhere from 15 to 290 Sino-USSR Trade made between corporations desig• percent, and the cost of alcohol nated to perform certain adminis• iVIakes Headway would climb 60-500 percent. The trative functions from those of a price of "Mao Tai", the most purely business nature, according hina and the Soviet Union famous and sought-after Chinese to the circular. Chave made notable headway in spirit, is to jump from 20 yuan their bilateral economic and trade Party and government insti• (US$5.4) to 120 yuan (S32.4). tutions will be banned from relations, and technical co• drawing funds from corporations The price of alcohol made from operation. or enterprises to supplement their grain will increase by 20 percent, China's customs figures indi• own expenditures. but the cost of those brands now cate a rise in Soviet import and popular on the market will go even Apart from joint ventures and export trade volumes between higher. Yuan said. And July 26, private undertakings, the es• January and June of 32.23 percent even beer would cost a little more, tablishment of new corporations from the same period last year, he added. will be suspended, the circular reaching 1.3 billion US dollars. said. • "These price increases will not Officials from both China's have much social impact," the economic and trade circles and the spokesman said, "because most Soviet Embassy in Beijing predict buyers are government organiz• that the upward swing will ations and those individuals with continue to gain momentum. They Prices Raised for high incomes." foresee a 30-percent growth in Cigarettes, Liquor bilateral trade to about 2.8 billion China is the world's biggest US dollars this year. cgarette producer and consumer: On June 8, during his meeting It turns out more than 228 billion with Yuri Maslyukov, first vice- The prices of famous brand cigarettes annually for the chairman of the Council of • cigarettes and spirits could country's 300 million smokers. Ministers of the Soviet Union, • float on the open market from July "We are raising the price of Chinese Premier Li Peng said 28, the State Council has grain-made alcohol in a bid to save great progress has been made in announced. grain," Yuan said, "because the economic, trade, scientific and "This decision was made to outf)l(t of alcohol xtrade from grain technological co-operation be-

BEWING REVHEW. AUGUST 1-7. 1988 7 EVENTS/TRENDS tween China and the Soviet Union ways serving the Sino-USSR with a Chita Region trade and border trade has been revived border, already running to delegation from the Soviet Union over the past few years. However, capacity, also stand in the way of to develop direct trade, and there is still much room for further the rapid expansion of barter economic and technical co• growth, he said. trade between the two countries. operation. Unlike China's normal trade Chinese economic and trade On July 15, China and the practises with western countries, officials feel all these problems can Soviet Union signed a new barter trade, unaffected by the be solved if the two sides regulation that Chinese and Soviet foreign currency situation of determine to go all out and citizens holding valid travel either country, is the main form of combine their efforts. A new certificates will soon no longer Sino-USSR bilateral trade. atmosphere of economic and need visas to visit each other's technical co-operation can already countries on business. The The two countries have success• be sensed. regulation will come into force on fully achieved a trade balance with August 13. no large trade deficits on either On June 8 the Chinese and A Chinese observer noted that side for the past decade. But it has Soviet governments signed two China and the Soviet Union are not all been plain sailing. There documents — one on joint ven• both putting into effect reforms to have been complaints from tures and the other on the their foreign trade systems and Chinese commodity inspectors establishment of economic ties new developments on a wider scale about quality problems and poor between ministries, departments, are expected. • timber. corporations and enterprises. A Chinese trade official said One month later, Shen Jueren, that Soviet business methods are vice-minister of foreign economic not flexible enough. Negotiations relations and trade, announced his Rui Pushes Literary can continue for more than a year ministry's decision that local & Artistic Freedom and then come to nothing. governments — not only in border Yevgeni Bavrin, the Soviet regions, but also in interior and senior Chinese Party official Embassy trade representative coastal regions—will have the has called for less official admitted that such problems power to engage in barter trade A interference in the areas of existed in the past, but that they and sign contracts with the Soviet literature and art. were few. He pledged further Union and East European Rui Xingwen, member of the improvement of timber supplies. countries. Secretariat of the Party Central In China, most problems stem A week later, a trade delegation Committee, said that Communist from insufficient funds and trade from the Inner Mongolia Auto• Party control over literature and management bureaucracy. Rail• nomous Region signed a protocol art should be limited to guiding its political orientation. "A social environment and Li Peng meets witii Yuri IVIaslyultov, in Ctiina to participate in the tliird session of tlie committee on Sino-USSR economic, trade and teclinical co-operation. WANC VANG atmosphere favourable to the long-term development and pros• perity of literature and art can only take shape through the earnest implementation of the principle of "letting a hundred flowers blossom and a hundred schools of thought contend," he told the 155 participants of a national meeting on literature and art, which ended in Beijing on July 20.

The meeting, sponsored by the Propaganda Department of the Party Centra! Committee, opened on July 15 to discuss ways to promote Chinese literature and art and to make preparations for the Fifth National Congress of

BEIJING REVI£\y. AU.GUST l-7.iJP?8 Weekly Chronicle according to the China Geological Journal. (July 18-24) Five state-run gold processing centres and a five million cubic POLITICAL meter mining area will be July 18 developed in the next two years to • The civil service system willbe exploit the deposits. tried out in the Auditing Adminis• tration, the State Administration July 22 of Environmental Protection, the • A chamber of commerce Ministry of Construction, the specializing in machinery and governments of Guangdong and electronic products is inaugurated Fujian provinces, and Guangz• in Beijing. The first of its kind in hou, Shenzhen and six other cities, China, it will operate under the before the end of this year, says leadership of the Ministry of Minister for Personnel Zhao Foreign Economic Relations and Dongwan. Trade but will have independent He says that, from January next status. It's main function will be to year, the new system will be submit long-term plans for the gradually introduced in all other development of China's machin• Rul Xingwen. government administrations. ery and electronics to relevant government ministries. July 19 Writers and Artists scheduled for • The Central Discipline Inspec• the fourth quarter of this year. tion Commission of the Commu• CULTURAL nist Party of China has worked In his speech on Monday, Rui out a series of rules and emphasized the importance of regulations to discipline Party July 19 correctly handling the relationship members, Xinhua reports. • The world-renowned 47-year- between literature and art and According to the commission, old Spanish tenor Placido Dom• politics. these regulations will be applied ingo enthralls a capacity crowd of "We used to bind literature and to Party officials who neglect their 10,000 in the Great Hall of the art to concrete political tasks and duties and cause great economic People. eagerly pursue quick success and loss, or violate rules related to Chinese senior leader Hu Qili instant benefits," he said. foreign affairs activities. and other high-ranking officials Now. he said the Party has attended the performance with abandoned the approach which July 12 many people who came from all subordinated literature and art to • In a joint circular, the general over the country to see the famous politics, as it constituted a possible offices of the Chinese Communist tenor. theoretical basis for flagrant Party Central Committee and the interference in cultural matters. Stale Council order the disband- However, he added, this does not ment of government office-based, SOCIAL mean that literature and art profiteering-oriented companies. should be totally divorced from The circular says that Party and July 22 politics. government offices and officials • A total of 152 people have been Restating the four cardinal are forbidden to engage in rescued after a ship capsized on principles, the Party official said, business dealings and run enterpr• the Minjiang River in Qianwei "These principles should be ises, and retired officials may not County, Sichuan Province on July closely upheld in reforms made to serve in enterprises. 21, Xinhua reports. literature and art." The Chuanyun No. 24 passen• The four principles refer to an ECONOMIC ger ship of the Chongqing adherence to the ideas of Shipping Co., carrying some 250 socialism, the people's democratic July 20 passengers from Yibin to Leshan dictatorship, the leading role of • Twelve gold deposits of city, struck a rock near Lianyuhao the Communist Party, and to i[ varying size have been found in and sank. Marxist-Leninist and Mao Ze- ! ! Longnan Prefecture in the south• Ten persons are known dead dong Thought. • ern part of Gansu Province, and some 100 others are missing.

BEIJING REVIEW. AUGUST 1-7. 1988 9 m INTERNATIONAL

IRAN-IRAQ many faults and needed to be thought through and revised. The acceptance by both Iran Important Turning Point and Iraq of UN Resolution 598 has brought new hopes for an end Iran's acceptance of United Nations Security Council to the war. Of course, acceptance Resolution 598 is an important turning point in the course of of the resolution does not mean a the eight-year Iran-Iraq war. final settlement of the Gulf conflict but a formal shift from the battlefield to the negotiating table. Problems may still-occur during n July 18, Iran announced its end to the war. Although the resolution's implementation, Oacceptance of United Nations unsuccessful at the time, these and the possibility of fresh small- Security Council Resolution 598 efforts undoubtedly helped to• scale conflicts also cannot be ruled which called for a ceasefire wards today's success. out, but at least a first step between Iran and Iraq. The Observers see four main reasons towards peace has been made. decision marked a favourable turn behind Iran's decision. First, Iran and Iraq are both in the course of the eight-year increased calls for peace within developing countries faced with conflict between Iran and Iraq. Iran and Iraq. Second, Iraq's drive the task of consolidating inde• People throughout the world across the Iranian border and the pendence and developing their applauded Iran's decision and are recovery of its lost territories. national economies. The hope optimistic about the chances of an Third, the favourable conditions now is that Iran and Iraq will end to the protracted war. The created by international medi• proceed from this favourable breakthrough has been welcomed ation. Fourth, the adjustment by starting point towards real peace by many countries and inter• the Iranian government of its through the thorough implement• national organizations. diplomatic policy. Not long before ation of UN Resolution 598. This Iran and Iraq have both paid Iran's announcement, Hashemi will not only benefit the people of high prices for their war. More Rafsanjani, Iran's parliamentary Iran and Iraq but also contribute than 1 million people have been speaker and acting commander- to peace and stability in the Gulf killed or wounded, losses of oil in-chief, admitted that Iran's region. income and production facilities diplomatic policy this year had by Ren Xin have been estimated at more than USS540 billion, and many cities, including both capitals, have suffered varying degrees of SOUTH AFRICA damage. Economics experts said that the war has meant plans for economic development in the two countries will have to be shelved Biacit Leader Admired Worldwide for 20-30 years. The South African apartheid policy is condemned in nearly The continuing Iran-Iraq war every corner of the globe, and worldwide celebrations to mark not only endangered the security the 70th birthday of black leader Nelson Mandela testified to of the region but also created incredible tension in the Gulf this. situation. Superpower military involvement further aggravated tension, complicating the problem ell-known black South world over. and making the Gulf region a hot W African leader and former On the eve of Mandela's 70th spot attracting worldwide Chairman of the African National birthday on July 18, cards, gifts attention. Congress Nelson Mandela has and messages of support poured in Over the past eight years, the persistently waged a struggle from all over the world. Among United Nations, non-aligned against apartheid and for the them was a signed pair of boxing movement, the Arab Summit rights of the South African people. gloves from world heavy-weight Conference, Islamic Summit Con• His fighting spirit has been a champion Mike Tyson, which ference and many countries put source of encouragement to the were handed over to Mandela's forward ceasefire plans and made black people of South Africa and nife Winnie, at her home in the unremitting attempts to bring an won the respect of people the black township of Soweto.

10 BEIJING REVIEW, AUGUST 1-7„I988 apartheid system. For all those who fight to free South Africa from the apartheid policy, they added, Mandela has become a symbol for the struggle against the unjust and inhuman system. UN Secretary-General Javier Perez de Cuellar addressed the meeting of more than 100 UN members and representatives of various anti-apartheid organi• zations, praising the black leader for having been "in the forefront of the campaign to bring an end to apartheid in South Africa and establish racial justice, harmony and equality in its place." "The celebration of his birthday is but one expession of the support of the United Nations for all those men and women suffering perse• cution for their opposition to apartheid and racial discrimi• nation," the secretary-general said. Addressing a rally held in Beijing on July 15, Gong Dafei, president of the Chinese-African People's Friendship Association, stressed that the Chinese people will, as always, firmly support the South African people in their Archbishop Desmond Tutu (third from right) delivered a speech calling for the immediate release of Mandela at a gathering in London. struggle for racial equality, back the Namibian people in their fight for national independence, and support all African countries and Mandela was imprisoned in \ those with a genuine interest in the peoples in their efforts to 1962 on charges of plotting to future of South Africa that the safeguard national sovereignty overthrow the government, and he ! Botha government wished to and security. was later sentenced to life- 1 achieve a peaceful negotiated Gong denounced the perverse imprisonment in 1964. | settlement in that troubled land." actions of South African author• Mandela, who is committed to ! Foreign Ministers from the 12- ities since the beginning of this the fight for majority rule in South nation European Community year, including the issuing of new Africa, turned 70 in Pollsmoon said, "His release would be not state of emergency decrees, the prison near Cape Town on July 18. only a humanitarian gesture but banning of anti-racism organi• To mark his birthday, mass also a welcome political sign." zations, the intensified perse• rallies, demonstrations, concerts, They renewed their appeal to cution of African National religious ceremonies and other Pretoria to "end its policy of Congress leaders, and the attem• activities were organized through• repression" and free all other pted execution of the "Sharpeville out the world. Many organiz• political prisoners. six." ations and political leaders called Foreign ministers from Fin• "These acts have brought more on the Pretoria regime to land, Sweden, Norway, Denmark suffering upon the South African unconditionally release Mandela. and Iceland said in their letter to people and increased unrest and New Zealand Foreign Minister Mandela that he has spent one- instability in southern Africa," Russell Marshall said, "This third of his life in prison to Gong said. action alone would act as a sign for demonstrate the cruelty of the by Chang Qing

BEI.I1NG REVIEW. AUGUST 1-7. 1988 li •1 INTERNATIONAL

US-SOVIET UNION the US side that Soviet military principles are now defensive in nature and that, in light of these New Chapter in Military Relations new principles, the Soviet Union is beginning to transform the The recent visit to the Pentagon by a top Soviet military leader organization and structure of its is yet another sign of the normalization of relations between armed forces. He hoped that the the two superpowers. United States would accept the Soviets' new "sufficient defence theory" and take actions that would allow both sides to "sit t the invitation of Chairman of launching intercontinental ball• down at the negotiating table and the US Joint Chiefs of Staff istic missiles and other military A explore the questions that remain Admiral William Crowe, Sergei facilities. unsettled." Akhromeyev, chief of general staff International strategists believe The United States, however, of the Soviet armed forces, paid a that the decision of US authorities could not accept that Soviet one-week visit to the United to allow the Soviets to enter military principles had changed States. As the first official visit to strategic .military sites and be substantially. the United States by a top-ranking shown high-tech sophisticated Soviet military delegation since weapons equipment was made During the talks, the US side World War II, this event is likely with their own interests in mind — insisted that the US cruiser to have a significant influence on to show off US military might and Vincennes shot down the Iranian the future development of impro• prepare for the future visit to the airliner by mistake, while the ved US-Soviet relations. Soviet Union by a US military Soviets rebutted that the civilian jet was downed on purpose. They The visit was arranged in the leader and a reciprocal inspection denied that there were any spirit of agreement reached by of Soviet military facilities and similarities between this incident Soviet leader Mikhail Gorbachev advanced weapon systems. and the downing of a South and US President Ronald Reagan Although some headway was Korean airliner by a Soviet fighter in their Washington and Moscow made during the visit, disagree• in 1983. summits. During the visit, the two ment still remains on some major military leaders discussed a series issues of principle. Akhromeyev told reporters at a of issues, including military No progress was reported in the news conference that he had exchanges between the two talks on reducing US and Soviet successfully completed his visit, countries' armed forces, the conventional forces in Europe. and that his discussions with the reduction of their conventional The US side voiced disapproval of US military leaders were "ex• forces in Europe, Moscow's new the Soviets' so-called new defence tremely candid and open" and •'sufficient defence theory," and theory. Originally the Soviet chief would "profit both of us in the the downing of an Iranian airliner of staff attempted to take the future." in the Gulf. The following opportunity to explain directly to by Zheng Qing agreements were reached. — Both sides agreed to set up a joint military working group whose job would be to improve THE UNITED STATES military relations and study ways of reducing peace-threatening military incidents when their Drought Pushes World Grain Prices Up forces are operating in nearby vicinities. — Both sides agreed and announced a plan for wide- The most serious drought in 50 years hit the United States this ranging expansion of exchanges summer, with the inevitable outcome of rising grain prices on between their armed forces. the international market. The Soviet chief of staff spent much time watching US Marine Corps training, a demonstration he psychological pressure 1930s far exceeds the real damages of the performance of M-1 tanks, Tbrought on Americans by their done to the US economy. and visiting a training centre for most disastrous drought since the Although newspapers and radios

12 BEIJING REVIEW. AUGUST. |-,7i 19^K predicted food price rises, the According to the latest US said soybean production in the worst estimate was only 2-3 government figure, the average United States will drop by 16-17 percent higher than normal. As price for corn for the 1988-89 crop percent this year. During June, agriculture accounts for only 2 year will be US$2.45-2.85 per July and August, he said, soybean percent of the US gross national bushel, almost a dollar more than prices will peak but the 1988 product (GNP), and farm prices the price for this year. average price for soybean will be account for less than 10 percent of Don Mitchell, a senior econo• around US$320 per ton, instead of Americans' food costs, price rises mist with the World Bank's the current US$365 per ton at the will not greatly affect the average Commodity Market Division, Rotterdam exchange. citizen. said corn prices will rise by an Larson also said, he expects A recent relief bill adopted by average 35 percent from last year, another bumper soybean harvest the US Congress allows aid of not and US corn export prices, at from Brazil next spring, and a more than US$6 billion for US$75.7 per ton in 1987, will rise drop in soybean prices on the fanners in drought-stricken areas. to US$102 per ton in 1988 and international market to US$270- An official from the US Agricul• US$103 per ton in 1989, before 300 per ton for 1989. tural Department told reporters falling to below US$100 per ton in According to the US Agricul• that recent grain price rises meant 1990. tural Department, soybean prices that the government did not Ray Danniels, vice-president of will rise from US$6.2 per bushel in have to give farmers price the Food and Agricultural the current crop year to US$6.75- subsidies. The money saved here Division of the Wefa Group, said 9.25 per bushel in 1988/89. would be given to farmers in corn production in America will Danniels estimates the rise will be drought-stricken areas so that the fall by 30 percent this year and from US$7.12 to US$9 per bushel government would not have to average corn prices from October during the same period. increase its expenditure. 1988 to October 1989 will be about The analysts say cotton and rice USS3.12 per bushel, 95 cents will not be affected. Rice fields in More of an impact has been felt higher than this year's price. the United States, mostly in California, are all irrigated and the internationally as a result of the John Milton, an analyst with situation in Southeast Asia, where drought in the United States. the US Agricultural Department, droughts hit rice production last South Korea, Japan and some said wheat production will drop year, is improving. other grain importing countries by 13 percent this year but, good have had to take emergency harvests of winter wheat have kept Mitchell expects rice prices on measure to meet demands, and the United States sufficiently the international market to fall grain producing countries such as supplied and will allow exports to from the current average of Brazil, are encouraging farmers to continue. US$290 per ton to US$260 per ton expand production. European Mitchell said US wheat export next year and US$250 in 1990. Community countries, observing prices will average US$165 per ton by Zhao Zijian the drought and the resulting this year, as against US$133 per changes in the international grain ton last year. The price, he said, market, have slowed down the will rise to US$172 per ton next pace of their grain exports. year before falling back to US$ 158 The US exports account for 40- per ton in 1990. 50 percent, 60 percent, 20 percent According to US government and 65 percent of world trade in figures, wheat prices will rise from wheat, feed grain, rice and US$2.57 per bushel in 1987/88 to soybean respectively. And exports US$3.45-3.95 per bushel in the of soybean and soybean oil from 1988/98 period. But Danniels says the United States make up about the price rise will be from US$3.01 10 percent of world trade in to US$4 per hushel. oilseed products. All analysts expect soybean US government and private supplies to be tight. The US analysts said farm goods prices government expects US exports of have already risen by large soybean, soy meal and soybean oil margins and will peak out next to fall by 17 percent, 20 percent year. They predict that expanded and 40 percent respectively. farm acreage worldwide will push ''Don Larson, an associated prices down by 1990. '©c6ft^Mist with' khe World Bank,

BfeiJi'NbBiBviEW, AUGUST I-7, I98X 13 ARTICLES

Nanjing Opens Its Doors to the World by Our Correspondent Dai Yannian

hen China's State Council expected to be completed in 1996- W decided to expand the 97. Its annual output of polyester coastal economic open zone, fibre should be 5 billion metres — Nanjing, capital of affluent one for each person in the world. Jiangsu Province, became one of Other important works include the 140 newly opened cities and the Nanjing Alkyl Benzenes counties in the zone. Factory, China's largest detergent Standing on the southern banks manufacturer, the Nanjing Oil of the Changjiang (Yangtze) Refinery which can process seven River—known in Chinese as' the million tons of crude oil a year, the "gold water channel," Nanjing Nanjing Radio Factory, home of has develped economic ties and Panda^ radios and maker of the co-operation with the surrounding cities whose population exceeded telecommunications equipment in area. The economic zone, with one million. China's "Great Wall" scientific Nanjing at the centre, covers The city has over 50 petrochem• observation station in the Antarc• 160.000 square km. It lakes in ical factories producing 2,000 tic, and the Five-Ram Cement Jiangsu, Anhui and Jiangxi products. Fifty of these have been Plant, another state gold medal provinces, with a combined awarded state gold and silver winner. population of 57 million. Abund• medals or the title of quality Nanjing's machine-building en• ant with grain, cotton, other farm product.- The Yangtze ethylene terprises produce all kinds of produce and minerals such as iron, project, one of China's largest precision machine-tools and other copper, strontium and limestone, petrochemical works, began con• goods which are exported to over the region has over 30,000 struction in 1984. With equipment 40 countries and regions industrial enterprises, an ample and technology imported from worldwide. labour force and a tremendous Japan. Federal Germany and the The Nanjing Wool Mill with market. United Slates, the project is 11,296 spindles manufactures pure

Full-Fledged Industrial City

Capital of China before 1949, Nanjing was primarily a city of consumption. At the time of liberation it had 38 small and poorly equipped enterprises run by bureaucratic compradors, 36 private businesses with power- driven machines employing 30 or more people, and some private handicraft workshops. After 40 years of continual efforts, Nanjing has now become an industrial city. With more than 3,600 industrial concerns, the city's industrial output value totalled 16 billion yuan in 1987, putting it eighth in the league of

14 BniJING REVIEW. AUGUST (-7, |988 The Yangzi Petrochem• ical Company's ethylene If - factory in Jiangsu.

The synthetic ammonia equipment in the Qixiashan Chemical Fertilizer Plant run by the Jinling Petrochemical Company.

Nanjing Harbour's container terminal. Medical workers in the Jiangsu Tumour Prevention Institute use an electron accelerator to treat a patient.

The tape recorder assembly line in the Nanjing General Radio Factory. The Nanjing No. 2 Machine Tool Factory works in partnership with SHW of the Federal Republic of Germany to produce universal digital control rtiilling machines.

A newly installed forging press in the car frame works jointly set up by the Nanjing Automobile Factory and Fiat of Italy.

New trucks roll off the assembly line in the Nanjing Automobile Factory.

"Panda" household electric appliances production line in the Nanjing General Radio Factory.

cargo ships all the year round. The 98 km-long port area has 39 docks which can berth 75 2,000-25,000- ton vessels and 14 10,000-ton vessels simultaneously. Currently, nine docks for 10,000-ton vessels and three berths are under reconstruction. Last year, the harbour began an international container shipping business in partnership with Encianal Ter• minals of the United States, and now can handle 5,000 standard containers annually. The Nanjing Changjiarig River Bridge, which was completed in 1969, links railways from the north to the south, and 18 air lines XUE CHAO operate from Nanjing to all General Manager of the Nanjing Suwel Wooltex Co. Ltd., a Sino-Australian Joint China's major cities and Hong venture, with Australian experts. Kong. Construction of a new airport for large passenger wool, synthetic and blended underground water, and deep-well aeroplanes is under way. High• knitting yarns which have proved pumps are indispensable to exploit ways extend from the city in all excellent export. In 1986, the mill this valuable resource. We are now directions. Crude oil from the was granted the Wool Mark by the working with the Chinese side North China Oilfield passes World Wool Agency. with great enthusiasm," said the through underground pipelines to Nanjing's 600-year-old venture's US general manager. be processed in Nanjing or brocade, velvet tapestry, carpet, Last year the factory turned out shipped to other southern pro• fur coats and pressed salted

jBHwilSG REVIEW, AUGUST 1-7, 1988 19 drawn up a 22-article preferential policy. Sino-foreign joint ventures and co-operative businesses en• gaged in productive and scientific research projects will be taxed 80 percent of the standard rate. Foeign-funded energy, transport and harbour construction pro• jects, technology- and knowledge- intensive projects, or projects with investment exceeding US$30 mil• lion and a long term of repayment will only pay 15 percent. Companies importing materials for processing and compensatory trade business will be exempt from import tax. And any goods they produce for export will likewise be exempt from export tax. "Overseas businesses have com• plained a lot about the amount of confirmed. The city held its first "The gap between the technical red-tape they face in China," foreign trade negotiation meeting level of the city's main trades and Wang said. "In the future all on June 6-9, striking deals valued principal products and advanced matters handled by the city at US$260 million and signing world level will be greatly government should be simplified letters of intent involving US$412 narrowed by then. The manage• to raise efficiency." For this million. ment skill of enterprises and the purpose, the cily government has In investing funds from abroad, efficiency of the city's economy established a co-ordination office, Wang said, Nanjing will give should have increased consider• headed by Wang, where staff of priority to the petrochemical, ably," Deputy Mayor Wang the city planning commission, electronic, auto, building assured. economic commission and other materials, textile and light indus• financial and commercial insti• tries. Along with advanced Preferential Policy tutions work jointly to handle technology and management foreign business affairs. skills, the city will also import raw To ensure the interests of materials and designs to expand its foreign businesses, the city has The city has also issued processing capacity, and simulta• neous efforts will be made to set up Director of tlie Nanjing Slieshan Electric Furnace Factory (back) instructs a worker. businesses abroad. ZHU PING By 1990, the city's export value will reach 2 billion yuan, twice that of 1987, and its proportion of the city's gross product will rise from 8.8 percent to 14 percent. The city plans to complete 100 foreign-" funded projects valued at US$350 million before 1990, and turnover from contract work abroad is expected to reach US$62 million, an average annual increase of 15 percent. By 1995, Nanjing will be able to export 6 billion yuan worth of products, accounting for 20 percent of its turnover, with the figure rising to 30 percent by the end of the century.

20 BEIJING REVIEW. AUGUST 1-7,M^8§ preferential cards to enterprises whose exports account for more than 50 percent of their output value, or whose foreign currency income from exports exceeds US$1 million annually. Enterpr• ises possessing this card (already numbering 44) enjoy priority in the supply of funds, raw materials, electric power and trained personnel.

High-Tech Incubator

Nanjing's concentration of scientific arfd technical personnel is another strong point. The city now boasts 327 scientific research institutes, and 46 institutes of higher education staffed by 190,000 scientific and technical personnel. It leads the nation in many scientific fields, including research into electronics, the chemical industry, and biological engineering. To promote the development of high-tech. export-oriented economy, the city has decided to establish a special development zone. "The zone will be an 'incubator' where results of scientific research will be turned into products. These will first be produced in small batches and, if successful, will then be mass-produced," said Tang Heling, deputy director of the city's science commission. The first stage of the project The Sun Yat-sen Mausoleum. covers 2.27 square km. Land is being levelled and factory build• ings are expected to be built soon. and new energy techniques. Funds buildings and Chinese-type Some enterprises should be in for development of the zone have residences. production next year. come from the state, collectives Currently many foreign busi• The development zone is open and individuals. ness people stay in the Jinling to all the colleges, universities, Hotel. Foreign-funded, it opened scientific research institutes and in 1983. The 37-storey, 100-metre large enterprises from China and Accommodation high building has classical gar• the world. It has received dens, a recreation centre, in-door applications for over 100 projects, To meet the needs of foreign swimming pools, shops and a which are being strictly screened. employees and their families, the multi-storey car park with a The initial schemes involve city plans to work in co-operation helicopter pad. The top is a biological engineering, fine chem• with foreign businesses to build revolving parlour with a bird's-eye icals, electric machinery, foods. high-grade offices, apartment view of the city. With 800 suites.

BEIJING REVIEW, AUGUST 1-7, 1988 21 ARTICLES

the hotel can accommodate 1,300 the tomb of Sun Quan, ruler of At the Sun Yat-sen Mausoleum people who can eat or relax in Wu, is still preserved, and in the at the foot of Zijin Hill in the Chinese and Western restaurants, suburbs are scattered many eastern suburbs, visitors form an bars, cafes and tea rooms. The others, including 17 from the endless stream. From the en• hotel's multi-purpose hall can host Southern and Northern Dynasties trance, 392 steps lead up to the large banquets, international (420-581). coffin chamber where a recumbent meetings and business confer• The Qixia Temple on Qixia statue of Dr. Sun lies above his ences. Simultaneous interpret• Mountain in the east of Nanjing is buried remains. ation devices for six languages are a famous Buddhist shrine built in On New Year's Day 1912, Sun Yat-sen was sworn into office as provisional president of the Republic of China after the 1911 Revolution. His office, also open to visitors, stands beside a park in central Nanjing which contains a mem• orial to another uprising. When the peasants' rebellion of 1851 captured Nanjing in 1853, they made it their capital and built the Imperial Garden of the Heavenly King's Mansion, complete with a stone boat. Currently the Confucius temple and other cultural sites on the banks of the Qinhuai River (a tributary of the Changjiang) are being renovated. In ancient times, the area around the temple was lined with schools and imperial examination halls where men of letters gathered. The place later developed into a cultural and commercial centre, with pavilions and towers standing face-to-face The 2,400-spindle roving equipment imported from Italy by the Naijing Woollen Mill. across the river on which brightly painted pleasure-boats drifted. After several dynasties, the buildings were burnt down and the available. With trained staff, the 489. Since being renovated, it has river silted up following a number hotel provides first-rate services. attracted numerous Buddhist of social upheavals. disciples and tourists. It has a Renovation began in 1984. collection of almost 8.000 volumes Now the main hall of the Preserving History .of Buddhist scriptures, and on the Confucius Temple glitters in the cliffs behind the temple are 575 sun. The shopping street, lined Despite its modern construction Buddhist statues in the largest with brick-and-tile structures, of programme, Nanjing has en• grotto in south China. classical elegance, is once again deavoured to preserve its historic Also well preserved are some busy and pleasure-boats are sites. The capital of China for ten sections of the city walls and gates expected to drift on the qinhuai dynasties, the city has 2,400 years dating from 1368 when the first River this autumn. of history. Ming emperor, Zhu Yuanzhang, Blending the features of an During the period of the Three established his capital in the city. ancient capital and an open Kingdoms (220-280) when the The Jubao (Zhanghua) Gate is the harbour city, Nanjing is fast three states of Wei, Shu and Wu most spectacular: with three becoming both a modern metro• scrambled for supremacy, Nan• barbican entrances it could hide polis and a living museum to its jing was the Wu capital. Today, 3,000 soldiers. distinguished history. •

BEIJING REVIEW. AUGUST 1-7, 1988 Does China Face a Debt Crisis?

since China opened its doors to the outside world, Its foreign borrowing has increased considerably. Debt repayment will peak by the early 1990s. The study indicates that China can avoid a debt crisis by expanding exports and maintaining debt repayment rates below 20 percent. by Zhang Shubao, associate professor of Fudan University

s China has opened to the various interlinked factors must ment, China should benefit. Aoutside world, it has greatly be examined. First, its debt Therefore further expanding the increased its borrowing from repayment rate should be cal• scope of, foreign debts offers more abroad. By the end of 1986, culated. This figure is the total of advantage than disadvantage. It China's foreign debts were debts and interest to be paid in a should be regarded as an reported at US$20.6 billion, of year expressed as a percentage of important measure for realizing which US$7.6 billion were low- total foreign exchange earnings China's strategy of development interest long-term loans raised from exports, etc. It is internation• towards an export-oriented under the authority of the central ally agreed that this figure should economy. government. Last year, China not be higher than 20 percent. increased its borrowing still In the 1980s, China's rate When borrowing from abroad, further. averaged only 8 to 10 percent, China should choose long-term, low-interest loans. Generally, In the, :1980s,, China's average peaking ait 13 percent. It is estimat^di that in the early,.!^9Ps, these should be kept at 30 to 40 annual foreign debts have been percent of total debts, with interest estimated at US$15 billion to 20 China's average rate will rise to 13 to 15 percent, and in the mid-1990s rates averaging 7 to 8 percent and billion, orabout US$20 per capita. repayment periods of 5 to 7 years. In the early 1990s, they may rise to it will go up to 17 to 19 percent. These loans, however, necessi• US$25-30 billion, about US$30 Clearly this will be a crucial tate an export drive to generate per person. In the mid-1990s, they period. But it should demand close enough foreign exchange to repay may rise again, hovering around attention rather than crisis the debts. China has great export the US$35-40 billion mark, management. All the factors potential, which needs to be averaging about US$40 per affecting the debt repayment rate tapped further. Last year China's Chinese. will have to be constantly watched: the total debt accumul• exports passed US$30 bijlion to Sustained political stability, a ation, the average debt interest reach US$34,603 billion, up well thought-out economic devel• rate, the average duration of US$7.6 billion on 1986, and a opment strategy, rapid growth of debts, and the fluctuation of major break from the prolonged the economy and a high credit exchange rates on the intern• stagnation of previous years. rating in the international com• ational markets. In the early 1990s, China's munity make it easy for China to As raising debts from abroad exports should continue to raise foreign loans for domestic can be likened to giving a shot in increase. In the mid-1990s, even construction. the arm of the national economy, though China enters its peak debt But in the mid-1990s, demands repaying the loans is like draining repayment period and will have to for repayment will hit a peak. blood. Raising loans is of course repay an average of US$12 billion Recollecting the 1982 intern• risky. But if the central govern• to 13 billion a year, its exports ational debt crisis which erupted ment strengthens its macro- should have risen to US$60-70 in the developing countries raises control and management of loans, billion. With a debt repayment the question: Will China be able to channels them into construction rate of between 17 and 19 percent repay its debts? projects and links its overseas and no unforeseen disasters, To judge whether a country can borrowing with the introduction China should escape the debt crisis afford to repay its foreign debts. of foreign technology and equip• of other developing countries. •

BEIJING REVIEW. AUGUST 1-7, 1988 23 •1 FROM THE CHINESE PRESS

New Security Services in Beijing path to success. Originally he spent half a year in a futile search for a job. Then one of his friends Cheng Ke said his people can agreed to handle the matter for "LIAO WANG" boldly carry out their work (Outlook Weekly, Overseas Edition) him. The friend asked his because they have no ties of department head for help, saying kinship or friendship with workers he knew someone who wished to ecurity services have been and no conflicts of interests. work at a certain research S creating a new trade in China Moreover, they have received institute. One day his head made in recent years. Now three such special training and are capable of some casual remarks about the offices have been estabUshed in dealing with difficult situations. matter to the director of the Beijing. Of them, the Beijing The guards with the Beijing institute at a meeting. Soon after, Electronic Security Service Com• Electronic Security Service Com• he received an offer of employ• pany is the most rapidly pany are mostly retired policemen ment. It was from a unit that told developing, enjoying brisk busi• and ex-servicemen. Some are him that it had no vacancy when ness since its opening last July. young farmers hired from outlying he first visited. Cheng Ke, over 50, the director districts. For them, the company (February 1, 1988) of the Beijing Electronic Secu• has worked out a rigid training rity Service Company said: plan: no matter how busy they are, "Thieves and accidents have a they must pledge to train for more Centre Set Up to tremendous adverse influence on than three hours a day. the functioning of enterprises. But All guards sent by the company Prevent Suicide for a long time, security guards in dress in dark blue uniforms and many enterprises could not stop are armed with cudgels and "YANGCHENG WANBAO" thefts in the factories. Some of the walkie-talkies. The company also (Guangzhou Evening Daily) guards were transfered from the provide cars and other necessary workshop and found it difficult to appliance. It plans to set up a stop acquaintances from taking broadcasting station to keep in hina's first suicide prevention public goods without permission; contact with the .public security centre has been established and many guards were old, weak, bureau and assist public security C in Guangzhou, the capital of sick, disabled or retired workers policemen in maintaining order. incapable of defending the safety Guangdong Province. of the enterprises." The centre's organizers aim to (Issue No. 7, 1988) foster love and regard for human life, help others and serve society. Job Seeiiing and Fair Competition Guided by this principle, the members of the centre will do the "GUANGMING RIBAO" visited about 10 institutions to following in their spare time: (Guangming Daily) seek a job suited to his training. — By means of letters,telephone All the institutions said they did calls and personal encounters, as not have a vacancy or they did not well as magazines and television, n assigning jobs to university need people in this field. He they will try to help people who I graduates, some places have wondered why none of them put little value on their lives or begun to implement a system would take him. His speciality was who suffer serious setbacks to whereby graduates can freely seek not an out-of-the-way one and straighten out their muddled jobs of their choice and the some of the units he visited were thinking. employers can hire the best newly built. They must have been qualified according to their recruiting. — They will actively co• academic record. This is a ordinate with departments con• favourable step in the reform of Still perplexed after much cerned to obtain emergency job assignment on graduation. But thought, he decided to seek advice treatment for people who attempt the current situation does not from some people who graduated suicide. embody the true meaning of fair earlier. Aft,er hearing his story, — They will study the problems competition, either from the angle they laughed heartily. Only people leading to suicide, write articles who are introduced by influential of the university graduates or the about them and suggest ways to friends can find the kind of job employers. guard against suicide. One student with a doctorate in they want, they said. advanced polymer chemistry One of them explained his own (February 22. 1988)

24 BEIJING REVIEW, AUGUST 1-7, 1988 BUSINESSARADE

on state and collective foreign borrowing. Inner Mongolia Seeks Investment To judge whether a country can afford to repay its foreign debts, e city of Wuhai in southwest River and a 200,000-kw power various related factors should be r Inner Mongolia encourages plant to be in operation by 1990 examined. For each year, total foreign investors to develop local are all under construction. repayments should be no higher resources to boost the area's by Yao JIanguo than 20-25 percent of total foreign economic development. exchange earnings from exports Wuhai is an important coal and and non-trade business. chemical centre in China. It has That Will Do Although the volume of China's already verified more than 20 foreign debts has increased at an kinds of minerals, and its reserves Nicely in China annual rate of over 30 percent in include 4,200 million tons of coal, the last few years, they still 267 million tons of cement merican Express became the amount to less than 15 percent of limestone, and more than 5,000 Afirst foreign company to issue foreign earnings. million tons pf siiicious clay. In credit cards in China at th,e end of After 1990, repayments will addition, the city is rich in July. Now, all Chinese companies increase, but so will China's graphite, gypsum, salt and natural who handle foreign currency can exports, and the repayment rate alkalis. apply for the cards. will probably remain at its current They will be issued through the level. The city's mayor, Gao Shou- Bank of China, the Communic• yao, told this reporter that his ations Bank of China and the To maintain control, China has city decided to speed up the Trust and Industrial Bank of both a five-year debt plan and an development and use of its mineral China. Effective immediately annual debt plan run by special resources by concentrating on raw upon issue, the card can be used to departments responsible for the material processing industries to buy plane tickets, pay hotel bills registration and supervision of produce caustic soda, clacium and provide, cash. foreign debts. If imbalances occur, carbide, ferrosihcon and other All American Express card they have the administrative chemicals in great demand on the holders in China will also enjoy power to regulate repayment world market, as well as the the treatment of the company's periods of new loans so as to avoid construction of therma:l power Global Aid Service, said the any possible crisis. ..^ plants. company's president, which In 1985, for example, 41 He said Wuhai had received a means legal and medical enquiries percent of China's total borrowing great boost when the state recently can be handled in any language. were short-term loans. Through approved a coal and , chemical Although American'Express is government regulation this fell to centre. With 1,400 million yuan the first foreign credit card 22.3 percent in 1986 and 19 (US$370 million) invested, it will company to isvsue cards in China, percent in 1987 — a figure well produce coke, caustic soda, the Bank of China has been below the international norm. polyvinyl chloride and calcium undertaking overseas credit busi• The currency structure of carbide. Negotiations about fore• ness since 1981 and has issued its China's debts has also altered ign funds for the project are under own Great Wall credit card. • recently. The percentage owed in way with the Democratic Repub• Japanese yen and US dollar has lic of Germany. dropped while the Hong Kong Last March, the city became No Debt Crisis dollar has risen. one of Inner Mongolia's economic by Yao Jianguo reform trial areas. It has powers to For China examine and approve projects, including foreign-funded ones involving less than US$5 million lthough China faces a peak investment. And, of course, Adebt repayment period in the preferential treatment will be 1980s, it should escape a debt given to all foreign investors who crisis, an official from the State come to Wuhai. Administration of Exchange Con• To strengthen the area's trol said recently. ' Adequate infrastructure, highways, a bridge arrangements have been made to across the Huanghe (Yellow) repay both the capital and interest

BEIJING REVIEW, AUGUST 1-7, 1988 25 TOURISM

Mansion Garden with green trees. A rockery this year was 531,000, an increase surrounds the hill greeting visitors of 12.6 percent. Income from Opens to Public with the cool sound of water tourism reached US$310 million, dripping from a moss-covered an increase of 28.7 percent from cave. The garden also has ponds, the same period last year. he Royal Gong Mansion waterside pavilions, flowing Catering to the needs of the TGarden in Beijing, often called streams, and buildings, and International Year of Travel, "Daguanyuan" (Grand View corridors shaded by flowers and Beijing's municipal government Garden), recently opened to the trees. decided in January this year to public after renovation. The highest point in the garden, allow visitors to climb up to The Prince Gong Mansion Dazhu Hill, towers above a pond Tiananmen Rostrum. The Long- Garden resembles Daguanyuan, surrounded by rocks, behind qingxia Ice-Lantern Festival, and the similarity has been noted which is a deep cave. On the Dazhongsi Temple Fair, Inter• by tourists who have visited both hilltop are three terraced buildings national Kite Festival, and places. encircled by exquisitely carved Dragon-Boat Race, among many corridors named Moon Inviting other tourist activities, have also The real Daguanyuan is actu• Terrace. been arranged, hosting 4.4 million ally an elegant and beautiful North of Dazhu Hill is Cloud travellers from both China and private garden built in the 1980s, abroad. according to descriptions in the Forest Studio, its separate houses Qing Dynasty classical A Dream of connected by corridors, like a bat Special cool summer evening Red Mansions. It was cited as one spreading its wings; hence its name get-togethers will be organized at of the 16 scenes of Beijing. Bat Hall. It was delicately built, the Temple of Heaven Park; the Situated in the vicinity of with windows on all sides. Golden Autumn Festival at Shishahai Lake in the north of East of the hill is a theatrical Yuanmingyuan, International Beijing, Prince Gong Mansion pavilion surrounded by corridors. Travel Day and the Dragon Dance was built in 1777-1787. It was' It is an indoor hall that can Competition will be held in Beijing originally the mansion of the accommodate an audience of one between August and September. Great Secretary (the equivalent of hundred, and has a stage only one : • Tourists can now see the relics a premier today) Hekun in the metre high. The inside, walls and of the Terra Cotta Warriors and years of the regin of Emperor Qian ceiling are decorated with Horses in Xian — the eighth Long in the Qing Dynasty. It was coloured paintings of Chinese wonder of the world; the later granted to another person wistarias. The pavilion will Dunhuang Grottoes — a Bud• and in 1851 passed on to Yisu, provide the perfect venue for the dhist art treasury; and visit the Prince Gong, hence the name of presentation of a complete set of Great Wall in Beijing in an eight- Prince Gong Mansion. It offers a mansion music which was recently day, seven-night tour after truly magnificent scene combining discovered. arriving in Beijing or Shanghai. the beautifully styled gardens The garden also features a little This is a new tourist itinerary found south of the Changjiang Great Wall, Dragon King Temple, offered by the China International (Yangtze) River and the bold line Hill God Temple and farmlands, Travel Service. The special tour of northern architecture. as well as nearly a hundred houses. In 1982, the Prince Gong operates three charter planes each The whole mansion consists of Mansion and Gardens were week and caters for all hotel two parts and covers an area of declared under state protection. accommodation. 60,000 square metres, 28,000 At present only part of the site is Before this tour foreign tourists square metres of which is covered open to the public. It will be would need at least 14 days to by the garden. Surrounded by hills_ completed around 1990. cover this itinerary. and streams, the central Zhen- gyuan Gate is carved with relief by Han Guojian • Improving tourist services is designs of Western architecture, the first task of the new Shanghai and both sides of the lintel are Municipal Tourism Committee. engraved regular scripts of Among the improvements will be Chinese calligraphy. News in Brief more signs in foreign languages at The garden is a quiet haven in places frequented by foreigners the noisy city. Entering the central and longer hours of night markets gate, the giant stone Lonely • According to statistics the and places of amusement along Happy Peak presents an imposing number of overseas tourists downtown Huaihai and Nanjing sight in the middle of a road lined visiting Beijing in the first half of roads.

26 BEIJING REVIEW, AUGUST 1-7, 1988