A CHINESE WEEKLY OF NEWS AND VIEWS eiiin Vol.29,No.32 August 11 ,1986

DENG XIAOPING ON POLITICA

A China's Father of the A-Bomb SPOTLiqHT

Ancient-Style Market Street Opens in Tianjin

Tianjin's market street, fashioned after ancient style, has opened to visitors. The shops in the street mainly deal in antique works of calligraphy and traditional Chinese paint• ings, and various handicrafts.

An ancient-style pantomime show in the street. VOL. 29, NO. 32 AUGUST 11, 1986 CONTENTS HIGHLIGHTS OF THE WEEK

NOTES FROM THE EDITORS 4 Developing Industry at Deng on Reforming Leadership System Balanced Tempo • Deng Xiaoping explains the necessity and the basic policies EVENTS/TRENDS 5-10 for reforming the leadership of the Party and the state in a Democracy Es.sential to Policy speech he gave in 1980 to an enlarged meeting of the Political Making Bureau (p. 15). China to Change Farm Product Mix Price Increases Slowing Down Soft Drinks: Demand Outstrips Supply Making Policy-Maklng More Democratic Waste Hurts Building Industry • Vice-Premier Wan Li says it is essential to the reform of INTERNATIONAL 11-14 China's political system to make pohcy-making more Addis Ababa: 22nd OAU Summit democratic and scientific. He calls on workers in China's soft Concluded sciences to contribute to the study of policy issue (p. 5). Britain: Howe's Mission Ends in Failure Europe: Rapid Advance for 'Eureka' United States: Steel Industry Struggles To Survive Father of China's A- and H-Bombs

Reforming Leadership System 15 • Because of his lifelong devotion to the theoretical design of China's nuclear weapons, Deng Jiaxian, who died on July 29, Deng JIaxlan: China's Father of achieved a reputation as the architect of his country's "two A-Bomb 20 bombs" (p.20).

The Lopsided Japan-US Economic Ties 23

SPORTS 27 Industry Grows at moderate Rate • Thanks to a series of measures to moderate the growth rate. FROM THE CHINESE PRESS 28-29 China's industrial production is back to normal. Economists expect it now to maintain sustained and balanced growth (p. 4). BUSINESSARADE 30-31

CULTURE/SCIENCE 32-33

LETTERS 34 Behind Japan's Economic Offensive

COVER: Architect of China's nuclear • The United Slates is being elbowed out its international industry Deng Jiaxian. and domestic markets by Japan. The latter has become the largest creditor nation and the former a debtor nation. What Photo by Meng Zhaorui these and other developments signify for the world is the topic of discussion by a Chinese scholar (p. 23).

Published ewry AAonday by DistribuTed by China intwmafioiMi look SHbtcripMon prices (1 yeor): BEIJING REVIEW Trodins Corporatton (GUOil SHUOIAN), AwtroMo... A.$22JI0 USS2IM 24 Baiwonzhuang Road, Beijing P.O. Box 399, BeHinfl, China New Zeoloml... NZ.S1I.00 UK The People's Repubfic of China Canada...... Con. S21.00 NOTES FROM THE EDITORS Developing Industry At Balanced Tempo by Yao Jianguo

n the first half of this year, 14.6 percent and cement by 14.8 I China's industrial output percent. Among consumer goods, reached 428.4 billion yuan in refrigerators climbed 55.3 percent, value, up 4.9 percent from the electric fans 29.1 percent, cameras corresponding period of last year. 33.2 percent. The output of dairy This figure, however, is smaller products rose 30.5 percent. some factories have turned out than the planned growth rate of 8 • The proportion of brand- products of poorer quality at percent for the year. This does not name, high-quality products in• higher consumption of materials. mean China's industrial produc• creased. Between January and The situation is now favourable tion has been losing momentum, May, the output of double-door for China's industrial develop• but represents an inevitable refrigerators jumped almost 100 ment, following the introduction slowdown from the extremely high percent, and that of twin-tub of a series of reforms over the last rate of growth of 1985. washing machines 60-70 percent. few years. In planning control, In the fourth quarter of 1984, In a national survey of 100 China has narrowed the scope of capital construction and credit different industrial products, 75 mandatory planning and is relying flows in China ran out of overall had already fulfilled half of the more on guidance planning and control. This led to a 23.1 percent annual plan. Those which have market regulation. Enterprises increase in industrial output in the failed to reach planned targets are have been given more dicision- first half of 1985 over the same all unsalable products whose making powers in return for better period of the previous year, production has therefore been performance. In the management aggravating already strained restricted. of capital construction and the supplies of energy and raw- • Market sales have been brisk building industry. China has materials. The government then both at home and abroad. From replaced the customary practice of adopted a series of measures January to June this year, financial allocations with the new aimed at moderating the rate of industrial goods purchased by the method of issuing loans according growth in the second half of 1985. state was 7.7 percent higher than to the state plan (but still failed to in the corresponding period of control the scale of local capital Compared with the correspond• construction). It has also in• ing period of 1985. industrial 1985; and retail sales went up 11.8 percent. Export-ofiented products stituted a system under which one production in the first half of this is required to complete a capital year had the following features: showed an impressive growth. In the six months China's exports construction project with a fixed • Light and heavy industries reached US$12.8 billion in value, a amount of investment and a developed proportionately. Light system by which an engineering 13.7 percent increase. industry rose 5.1 percent while project is contracted out to a heavy industry increased 4.6 However, some Chinese enter• certain company through public percent, with the output value of prises have performed poorly due bidding. light industry accounting for 49.7 partly to ill-considered policies Although industrial growth for percent of the total industrial when the old economic system was the first half of the year was lower output value, and that of heavy being replaced by the new, partly than last year, it began to gain industry 50.3 percent. to increases in the prices of raw momentum again in the second • The production of commod• materials and fuels and partly to quarter. In June it rose to 6.9 ities in great demand has rigid state control in some fields. percent and a bigger increase is increased. The output of electric• From January to May this year anticipated for the second half of ity rose by 8 percent, much higher national revenue increased only the year. China's industry is then than that for industry as a whole. 2.3 per-cent. lower than the expected to maintain sustained Steel rose by 10.4 percent, rolled growth rate of industrial output and balanced growth at an steel by 9.7 percent, pig iron by for the same period. Moreover, appropriate rate. •

4 BEIJING REVIEW, NO. .^2 Democracy Essential to Policy Making

ne vital aspect of the reform of China's modernization pro• the effect of different policies on O China's political system is to gramme. He said that science and development trends. uphold fully socialist democracy technology comprise a great force With regard to problems still by making the process of policy promoting social progress, and existing in research in soft science. decision-making more democratic that the task of research in soft Song Jian said many departments and scientific, said Vice-Premier science is to help people observe are still influenced by the Wan Li at a national symposium and analyse, from an overall point traditional habits of a closed on soft science held from July 27 to of view, complex economic and society. "This is a major obstacle ? I in Beijing. social phenomena and draw to the advancement of China's Wan Li, who is also a member correct conclusions; and in so decision-making science," he of the Political Bureau of the doing to adopt more scientific observed. Chinese Communist Party Central decisions on a larger scale "to Soft science is an inter• Committee, said at the closing further promote the development departmental and multi- meeting on July 31 that the of society, including the develop• disciplinary study that combines influence of long years of feudal ment of science and technology. natural science, social science and society and small-scale produc• Wan Li also suggested the engineering techniques. It has tion, combined with the back• enactment of legislation to give been used in strategic decision wardness of science, education legal protection to people engaged making, planning, management, and culture, an imperfect legal in policy research. and the forecasting of human and system, the incompetence of At the opening meeting on July natural resources. Using tools officials and shortcomings in their 27, Song Jian, state councillor and such as computers, the aim of democratic style of work — have minister in charge of the State research is to find out the best all left China without rigorous Science and Technology Com• long-range policy options through procedures and systems for mission, urged Chinese specialists sample surveys, quantitative and forming policies. Moreover, he to make great effortsin research in quantitative analyses and trend said, the country also lacked soft science for the making of predictions. adequate support systems for overall national policies. The development of soft science policy consultation, appraisal, Song said that soft science is in China is still in its infancy. supervision and feedback. As now of particular importance to According to statistics produced there is no scientific way to test the China's socialist construction. at the symposium, there are only soundness of a policy decision, it is Many subjects of research can 15,000 scientists working in this often too late when a decision is often bring in millions or even field at 420 research institutes. In found to be seriously wrong. billions of yuan in economic the last five years, these specialists "The time to effect a change in returns, and some again can have a have carried out 1,735 research this situation is overdue," he very important bearing on the projects, ranging from stale commented. "Otherwise, our future of the state and the people. development strategies to enterpr• socialist system will remain "Under present condifions, we ise management policies, and the imperfect and the national can reach the target of combining evaluation of construction economy will not be able to qualitative research with quantita• projects. develop continuously and tive research in the near future," As an example, several hundred steadily." he said. He suggested research scholars took part in an ex• He thought it essential to work in China's social science be ploratory study entitled "China in conduct re-education on the need focused on current policy issues. the Year 2000" sponsored by the for democratic and scientific Song cited historical experience State Council's Centre for policy-making throughout the and precedents to show that Economic, Technological and Communist Party and the coun• courage, boldness and resolution Social Development. In a period try, especially among leading are important in making decisions of just over two years, they officials. He said. "A problem of prime importance. But he completed a general report. 12 common to many officials is an added that they are not sufficient sub-reports and 17 special reports. insufficient awareness of the without facts to back them up. Many of the results contained in importance of democratic and He stressed that quantitative these reports have been in• scientific policy-making, and of analysis is the scientific basis for corporated into China's Seventh having the necessary abilities." overall strategic decision making, Five-Year Plan for Economic and Wan Li also discussed the and that China should pay special Social Development. importance of soft science in attention to such analyses and to _ As another example, the State

\1:GUST II, 1%6 EVENTS ARENPg

Council, with the help of machine-building industry, urban investment and production, which specialists, approved and issued 12 construction, etc. These policies bring out the relationship between technological policy documents were all included in China's first its 24 industrial sectors. concerning energy, transport, White Book published recently. Major research projects now telecommunications, agriculture, China's "brain trust" has also being undertaken by Chinese the consumer goods industry, the compiled tables on the country's specialists include studies of the new technological revolution; population and family planning; the evaluation of the Three Gorges hydroelectric power station on the Changjiang (Yangtze) River; fore• casts of the development of Chinese Exhibition in USSR microelectronics in China; the future of the Shanxi energy development zone, etc. All these The Chinese Economic and Trade Exhibition, the first of its kind heid by China research programmes will be of in the Soviet Union since 1953, has produced quite a stir since it opened in iate July. The pictures shows Soviet visitors inquiring about the exhibits. great help in mapping out China's national policies. •

China to Change Farm Product Mix

he second step in China's rural Treform will concentrate on establishing an overall market regulatory system suited to a socialist commodity economy. Renmin Rihao (People's Daily) on July 22 quoted Du Runsheng, director of the Rural Policy Research Office of the Secretariat of the Chinese Communist Party Central Committee, as saying that such a move was designed to gear agricultural production to market demand. The first step in rural reform has involved the gradual introduction of the output-based responsibility system nationwide since 1979, and the second has been the adjust• ment of the rural economic structure by the lifting of ; monopolized state purchases of major farm products since 1985. j Du told a recent meeting on j rural reform that through the I second step, China should be able to arouse the initiative of agricultural producers and at the same time alter the rural economic structure by market regulation. This means that a rational flow of labour, funds, technology and

BEIJING REVIEW. NO. 32 other productive factors should be introduced through the market Price Increases mechanism, thus ensuring the News in Brief farmers' right to use land as they Slowing Down see fit and hence stimulate the /China's . leaders have development of the forces of Weal led for a fresh look at production in rural areas, he hina's price reform is taking aspects of the controversial explained. Ceffect. • China began its price reform plan to dam the Three Du said that there are two kinds Gorges on the Yangtze of market: one is the commodity last year, the first time such a big adjustment to the price system has River. In Beijing, a State market and the other the Councial Committee was set productive factor market. They been made since the establishment of th People's Republic in 1949. up to assess the results of are Closely interrelated. "Peasants The old price system was new studies. It is chaired by now expand or reduce the Vice-Premier Li Peng. production of crops according to inadequate because of China's the price information they receive long neglect of the law of value from the commodity market, and also for a number of historical which usually results in corre• reasons. sponding change of their product After the reform began last T"he water shortage in mix." year, however, the prices of some • Beijing and some other northern areas can be "But the process of readjusting goods shot up dramatically, overcome, Qian Zhengying, the product mix inevitably especially the prices of meat, eggs, poultry and vegetables mainly due Ministerof Water Resources involves an altered flow or transfer to the lack of experience on the and niectric Power said at a of funds, labour and other part of state-owned grocery ,luly 25 press conference. produtive factors," he added. companies. For example, the price Qian pointed out that there of fresh meat rose 30 percent — was great scope for The process of such transfer well-marbled cuts of pork economies in the use of makes it necessary to have the sold for 3.2 yuan per kg against the water in these areas as productive factor market. "With• previous 2.52 yuan, while the price present consumption was out the productive factor market," of eggs rose 0.4 yuan to 2.6 yuan. low. Moreover, the rich Du said, "peasants will not be able This prompted grumbling from water resources of the south to transfer labour and funds even city dwellers although the govern• could be used to ease water if they find a certain product is in ment offered them monthly shortage in the north, she great demand. That is why only by subsidies to help offset the higher said. linking the commodity market, to prices. the productive factor market can we establish a comprehensive There were conflicting attitudes market regulatory system." to the reform: Some supported it, others objected, while most of the hina's must go on to The director called for constant Ctighten birth control in improvements in management people were sceptical about it. But as time passes, the complaints the 1990s or risk disaster in methods and organizational stan• the future. Ma Bin, one of dards for the commodity market. have been getting fewer and fewer. Everybody can see that their life is China's leading economists, "We should also try to set up new told a recent national cornmercial businesses, which will becoming better, although things are more expensive. This proves symposium on soft science. pursue more flexible operations "In the next decade we will than state-run stores," he said. that people's living standards do not depend on the stability of have to deal with the As for the productive factor consequences of the absence market, Du continued, "We prices, but on the quantity of goods produced. Price rejbrm has of family planning in the should further encourage the free 1950s and 1960s." Ma said. flow of labour to enable 100 stimulated production, which has Ma and several • of his million farmers to leave the land improved people's lives. colleagues attending the for non-agricultural jobs over the According to the State Statistics symposium believed China next 10 years." Bureau, the rate of retail price should work towards an Meanwhile, financial markets increases has been slowing down average of 1.5 children per should be opened up throughout since the beginning of the year. woman to limit the popul• the country to enable surplus The prices of major consumer ation to 1.2 billion by the funds accumulated by farmers to goods in the first half of the year end of the century. be channeled into profitable remained at about the same level businesses, he said. • as they were last December. A

AUGtJST II. 1986 EVENTS/TRENDS

Quake Monument Unveiled On July 28, more than 10,000 people from around the country gathered in Tangshan to mark an earthquake that devasted the city 10 years ago. Vice-Premier Wan Li attended the rally and unveiled a monument together with Xing Chongzhi, secretary of the Hebei provincial Party committee. Participants stood to pay tribute to quake victims and to the heroes who came to their

comparison between 1986 and State Price Bureau Cheng Zhiping treatment and medicines have all 19S5 on a monthly basis shows said, is that increased prices have been going up steadily, though thai retail price rises dropped brought about a glut in market there is a tendency for the rate of from

AUGUST II, 1986 9 EVENTS/TRENDS

drink and some cartons of ice yuan for building a large brewery niently bulldozed underground to cream enthused: "I put them in the capable of producing 100 million finish off the work. refrigerator so that when the ; litres annually, only one of three of On one site, for a block of flats, children return from school, they i the same size to be built in the 150 tons of timber were burnt as can drink or eat immediately. It is period 1986-90. firewood in the short span of a more convenient than preparing The official claimed that by year. And 700,000 yuan were lost tea." 1990 China's annual beer output by the careless storage of materials Seasonal weather changes are will reach six billion litres when the and the resulting theft of apparently beginning to play a three big new breweries, along equipment on another site. smaller role in sales of goods once with a number of smaller ones, are linked to summer. During the first commissioned. "By then annual People in the know complain four months of 1986, Beijing beer consumption will double to that "money is thrown about like turned out 45.48 million bottles of six litres a head," he said. water" on some sites. aerated water, a 49 percent Fortunately, things have been The main reason for the waste is increase over the same period last made easier this year by a bumper poor management. Also, some year. In addition, 35 million ice- crop of watermelons. The materials are of low quality. lollies and over three million Economic Daily recently reported There are more than enough kilogrammes of ice cream were that the people of Beijing have so projects for building companies to sold. far consumed more than 100,000 take on in some of the large cities tons of this popular summer fruit. While China's drinks industry like Beijing. They are therefore The total will exceed a quarter of a has a histroy of over 80 years, with more likely to be appointed than million tons by the end of the more than 1 billion people to contracted to do work and the summer. Over the past week satisfy, average per-capita con• costs are paid by the users. Waste shipments to the downtown area sumption is only less than one in such cases is almost inevitable. have amounted to 10,000 tons a litre, while in the United States "But we are trying to bring such day. The price is roughly the same and West Germany the, figure is | things under control," said a staff I as last year — about 0.20 yuan a member from the Ministry of more than 100 litres. kilogramme (about USS0.06). But And the problems of meeting Urban and Rural Construction it drops sometimes, especially and Environmental Protection. the demand are getting worse. after heavi^ rain. Many older Street peddlars sometimes try to He said that more and more residents say that they have never cities are turning to the contract sell soda that is nothing more than eaten so much watermelon in their system. Everything, including the a mixture of plain water, synthetic lives and never at such low prices. sweetener and food colouring. prices of labour and materials, is Some individuals or workshops "The thriving markets are, first detailed in the contract, and the of all, the direct result of the make aerated waters in unsanitary squandering of resources will be current economic reform, which conditions, and unlicened pedd• thus effectively controlled. includes the adoption of planned lars often buy bottled drinks One building company, for cultivation and marketing, and a directly from the producer and example, gives bonuses to those flexible pricing policy," the resell them in the free market at a who use materials economically. newspaper said. • hefty profit. More than 10 tons of galvanised A beer shortage has also wire, about 70 cubic metres of brought inevitable consumers" Waste Hurts bricks and 8,000 tools of various complaints. The shortage is not Building Industry kindis were picked out of the debris only due to greater comsumption, on one site, and the amount of but also to limited storage T wo truckloads of perfect rubble taken away each day from capacity and poor refrigerating timber have been unearthed by it dropped from 20 to eight tons. equipment, as well as a lack of raw workers planting trees around a About 10,000 yuan were saved in materials, such as hops and barley. new building in Qinghua Univers• transport expenses as a result. Nationwide, China now has ity, Beijing. China has been reforming the some 500 breweries, which The wood, worth several construction industry since the produced 3.1 billion litres of beer thousand yuan, had been left over late 1970s. A profit of 1 billion in 1985, ranking 11th in the world. after the completion of the yuan has been made each year by However, the supply still fails to building and buried when builders state-run companies alone. meet demands, especially in the levelled the ground. But problems such as waste can big cities. Such waste of materials can be be solved only when reforms are A Chinese official recently found on many construction sites carried out conscientiously, and promised to overcome the shor• in big cities. Innumerable bricks when the loose ends in the rules tage within two years and said the and tiles, sacks of cement and tons and regulations governing them government has spent 150 million of steel bars have been conve• are finally tied up. •

10 BEIJING REVIEW, NO. .i2 iNfEf^NATIONAL

ADOIS ABAHA New York last May. OAU leaders recognized that the primary 22nd OAU Summit Concluded responsibihty for the implement• ation of the priority programme Safeguarding national independence and revitalizing the formulated by the 21st OAU economies of African countries was the rallying call of summit rests on the shoulders of the summit, which also voiced its all-out support for the the African governments themselyes. struggles of the South African and NamihiaA people. They urged all OAU member states and regional organizations to establish mechanisms and he 22nd assembly of the heads Africa and condemned the refusal consider policies related to their T of slate and government of the of the United States and Britain to commitments under the UN Organization of African Unity impose sanctions against South programme of action for African (OAU) ended on July 30 after Africa. economic recovery and develop• adopting a series of resolutions On the Namibia issue, the ment, in order to ensure the prepared by their foreign ministers African leaders reaffirmed the effective implementation of at the 44th session of the OAU inalienable right of the Namibian Africa's priority programme for Council of Ministers. people to self-determination and economic recovery for 1986-90. At present, the struggle of the national independence. They also The summit resolution on the South African people against condemned South Africa for its Middle East reafiirmed its support apartheid and that of the continued occupation of Namibia for the Arab countries, as victims Narnibian people for national in defiance of the resolutions of of Israeli aggression, and its independence are developing in the OAU, the non-aligned move• support for the Palestinian people depth and the appeal of the ment and the United Nations on in their just struggle to recover international community for sanc• Namibia. their usurped rights and their tions against the racist regime in occupied territories under the South Africa is becoming ever In order to seek ways of leadership of the Palestine Liber• stronger. At the same time, the eliminating apartheid and hasten• ation Organization. African countries are making ing Namibian independence, the progress in their efforts to African leaders also decided to set The summit also adopted a rejuvenate their economies. It was up a committee of heads of state declaration condemning the US in these circumstances that the on the question of southern interference in the internal affairs 22nd summit was held, attended Africa. It includes all the heads of of Angola. It said that the by 28 African presidents, vice- state of the frontline countries and financial and military support that presidents and prime ministers as the chairmen of the' liberation the US administration is giving to well as 22 ministers. President of movements, as well as the leaders "bandits" in Angola constitutes a the People's Republic of the of Nigeria, Algeria, Ethiopia, serious violation of the 1970 UN Congo Denis Sassou-Nguesso was Cape Verde and the Congo. declaration on friendly relations elected chairman of the OAU, among states and the principles replacing outgoing chairman During the summit the African contained in the Charter of the Abdou Diouf, president of leaders also reviewed the outcome United Nations. Senegal. of the UN Special Session on the • According to the resolutions Critical Situation in Africa held in by Chang Qing adopted at this session, African leaders strongly condemned the racist regime in South Africa and BRITAIN , its policy of apartheid. They reaffirmed their commit• Howe's Mission Ends in Failure ment to ensuring the imposition of comprehensive and mandatory British Foreign Secretary Sir Geoffrey Howe returnlgdto sanctions against South Africa, London empty-handed from his mission to persamde. and urged-member states to isolate South Africa to abandon its apartheid policies. the racist regime by denying landing and berthing facilities to South African ships and aircraft. ritish Foreign Secretary Sir Southern Africa on July 22. This The African leaders also BGeoffrey Howe, on behalf of was his second visit to the 'area rejected US President Ronald the European Community (EC), within a month, Reagan's recent speech on South began a week-long visit to During the week, Howe visited AUGUST 11. 1986 II Zambia, Botswana, Swaziland are saying that if Britain remains The number of Eureka member and Lesotho, and went to Pretoria unwilling to impose sanctions naUons now stands at 19 after twice. His mission to persuade against South Africa, they will Iceland was granted membership Pretoria to release Nelson Man• withdraw from the Common• at the third ministerial meeting of dela and lift the ban on the African wealth, or take sanctions against member countries on June 30. The National Congress was thought Britain. 21-nation Council of Europe has unrealistic from the outset. In fact It is reported that early in also expressed its willingness to it ended up in humiliation as the August a mini-Commonwealth participate in five individual white minority government said it meeting, attended by Australia, Eureka projects, which means that "cannot allow uncalled-for direct the Bahamas, Canada, India, almost all of Western Europe will interference in our internal Zambia, Zimbabwe and Britain, be involved in the programme. affairs." will be called to discuss the The number of projects in• questions of sanctions. On corporated in Eureka has jumped Howe was not only em• returning to London, Howe from the original 10 to 72, barrassed by Zambian President immediately met Prime Minister involving almost all fields of high- Kenneth Kaunda's public con• Margaret Thatcher to prepare for technology. More and more small demnation, but received a sarcas• the meeting. to medium as well as large tic rebuff from South African Although public opinion in enterprises have declared an President P.W. Botha. The latter London considered Howe's mis• interest in the programme. said Howe was threatening South sion as finished, Howe himself France is taking the lead, Africa. Before leaving for Lon• said he would go to South Africa participating in 40 projects, while don, Howe had to admit that "the again if the EC wanted him to. Britain is taking part in 28 and responses which 1 have received Sources from 10 Downing Street Federal Germany 19. have not yet enabled me to claim said two months were still A decision to set up a seven- that 1 have made the progress 1 left before the EC's deadline, so member secretariat in Brussels would have liked." It is possible they should be patient. Several was made at the third ministerial that some kind of further action days earlier, Thatcher suggested meeting. It will serve as a will be taken against South Africa she herself may go and talk with permanent establishment to in the coming few months, he Botha if necessary. But there is no oversee ministerial conferences added. such plan yet, a government and as an information centre The British government's stand official said. Some observers think responsible for co-ordinating on South Africa is criticized by the Britain will not impose all-out projects. opposition parties and by public economic sanctions against South Eureka enjoys a good reput• opinion. Within the British Africa even under heavy pressure, ation for its policy of working Commonwealth, most member and will only take limited both for Europe and with the countries stand for economic sanctions. British Labour Party developing world, and a number sanctions against South Africa leader Neil Kinnock has censured of third world nations have shown and. as a result, most have the government for adopting an increasing interest in the boycotted the Commonwealth delaying tactics. • programme. Some have even Games. Now some member states by Li Yunfei expressed a desire to join in. Eureka is expected to encom• pass 200 high-tech projects valued at US$20 billion in the coming five 1 i;R()Pn to ten years. It will promote Europe-wide co-operation in ad• Rapid Advance For 'Eureka' vanced technology industries, establish a high-tech network, and develop new competitive con• He.stcni Europe's "Eureka" programme was launched sumer goods, thus revitalizing the one year ago. Its achievements have so far been much Western European economy. greater than those of any previous international co^ The final goal of Eureka is to operative effort. put Western Europe, which is not content to play a supporting role in a world of rapid technological lAfhen French President F'ran- tion of all West European nations. development, into the position it "•eois Mitterrand first pro• Following this generally positive believes it deserves, that of high posed the Eureka Co-operation response. Eureka has enjoyed a technology leader. Programme in April 1985. it healthy and rapid progress since Public opinion in Western immediately attracted the atten• its inception. Europe seems satisfied with

BEIJING REVIEW, NO. 32 Eureka's achievements thus far, Only a Europe united in both common feeling among Western saying it has achieved ''surprising financial resources and manpower European politicians and indicate success" and is "full of vigor." can keep its economic position in why Eureka has developed so The rapid progress of the the world of the future, he added. quickly since it was unveiled one Eureica project will have a year ago. • profound effect. In terms of Kohl's remarks reflect a by Li Shuxun economics and technology, Wes• tern Europe came late to the new technologies, missing out because a new technological markets were UNITED STA IF.S broadening the speed of produc• tion and Western Europe's share Steel Industry Struggles to Survive of the high-tech market declined. Since 1972, the annual rate of growth of production of high-tech Suffenug from keen foreign competition and dwindling products in Japan has been 14 domestic consumption, the US steel industry is in dire percent while in the United States straits. it has been much less, 7.6 percent, with Europe trailing behind at less he LTV Corporation, the ployees and retirees. than 5 percent. Tsecond-largest steelmaker in LTV's filing is believed to be the In 1980, West European, the United States, announced on second-largest in the country in Japanese and American com• July 17 that it had filed for terms of liabilities incurred. It panies accounted for 26 percent, protection against its 20,000- bodes ill for other steel manu• 15 percent and 46 percent strong creditors under Chapter 11 facturers with hopes of a return to respectively of world electronics of the Federal Bankruptcy Law. prosperity following a four-year production. By 1985. West The move came after the Dallas- slump. Europe's share had declined to 21 based company found itself percent, while Japan has climbed unable to repay its staggering "This is part of a trend towards to 21 percent and the US was debt, now totalling US$4.59 a shrinking steel industry that has roughly the same, at 47 percent. billion. a while to run yet," said Walter F. Western Europe's share had "There was a cash-flow crunch, Carter, steel economist at the dropped 5 percent in five year. a debt-service crunch and a Mcgraw Hill Company, adding Between 1979 and 1984.' the pension-cost crunch, and there "the LTV is n6t the first to file for European Economic was no relief in sight," said the bankruptcy protection, and it Community's electronics trade company's Vice-President Julian probably will not be the last." deficit with Japan and that of the Scheer. The steel industry, once the United States has increased from LTV, a conglomerate with symbol of US economic might, US$3.9 billion and US$5.6 biUion assets exceeding US$6 billion, has been in the red since 1981. with to US$8.5 billion and US$10.8 produces steel, military equipment annual average losses of about billion respectively. A radical and petroleum products. It has US$3 billion. change in this situation is a matter been in the red for years, largely According to statistics compiled of urgency for Western Europe. because of its poor performance in by the American Iron and Steel As regards politics and military the steel market. It lost more than Institute. 700 steel mills have been strategy, the United States and the US$100 million in the first three closed down since 1984, 18 sold Soviet Union are competing in the months of this year and USS724 and seven others driven out of development of high technologies. million last year, on a turnover of business. Last year, the industry The arms race of the two US$8.1 billion. employed 150,900 people, 393.400 superpowers is expanding into By filing the pefition, the less than in 1953. space and Europe will be the first company can reorganize itself, The combined capacity of the to be threatened. Europeans streamline its management, re• nation's steel mills has dropped realize that only a united, strong duce operating costs and improve about 20 percent to the present Europe with a robust economy its financial position. The 128 million tons a year from 160 and excellent technological capa• company's Chairman Raymond million tons in the peak year of bilities can be strong and secure. A. Hay said that a restructuring 1977. Wall Street steel specialist Federal German Chancellor plan would deal with the US$1.7- Charles A. Bradford predicts that Helmut Kohl said recently that no billion debt payment due over the over the ne-xt five years, another 20 European country alone could next three years, and some to 25 percent of existing capacity meet the technological challenges US$400 million in annual pension will disappear. of the United States and Japan. obligations to its 56.000 em- His projection seems to accord

AUGUST il. 1986 13 NTERNATIONAL

with recent development. In July, US industrialists and steel companies is shrinking domestic the United States Steel Corpor• experts attribute the current demand. Traditionally, energy ation, the country's largest steel trouble partly to fierce compe• and auto industries are heavy manufacturer since the turn of the tition on the world market and the consumers. But falling oil prices century, changed its name to U. S. high proportion of imported steel have curtailed oil exploration and X. Corpbration, with steel pro• in the US 'domestic market. Last development to a level unseen for duction accounting for only a part year the country imported many years. This also has an of its operating, ateo embracing 24,278,195 tons of steel, 25.2 adverse impact on the steel energy and real estate business. percent of total domestic con• industry. The company has eliminated sumption. However, this ratio is It is estimated that the auto almost one quarter of its reduced to about 23 percent so far industry will use 10 percent less production capacity by leaving this year. steel this year. Steel analyst John plant idle and laying off more than Tumazos predicts that as much as The Reagan administration has 50,000 workers over the past few 40 percent of domestic automotive since 1984 been negotiating with years. steel consumption will be cut 14 steel-producting countries in an The Bethlehem Steel Corpor• within five years as more attempt to limit their imported ation, the nation's third-largest substitutes like plastics find their share to 18.5 percent of total US steel company, is watching LTV way into car manufacturing. demand. But cheaper steel from with extreme concern. The William T. Hogan, professor of Japan and South Korea has a company lost US$92 million in the economics at Fordham University competitive edge over the US first quarter of this year and has a in New York, said of LTV's peti• product. For example, for every long-term debt totalling more tion, "for anyone looking at the ton of steel sold at a price than US$1.7 billion. A spokesman steel industry, this should be a comparable with that of rival for the company, commenting on cause for alarm." The move could foreign traders, the LTV Com• the LTV petition said, "It is represent "a bottomless pit," he pany would lose US$25. difficult at this point to assess the added. • Another major factor con• impact of the filing on the steel by Xia Zhaolong industry." tributing to the woes of US

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14 BIIJING RtVltW. NO. 32 Reforming Leadership System

by Deng Xiaoping

In August 1980 Deng Xiaoping, Chairman of the CPC our highly centralized manage• Central Advisory Committee, delivered a speech entitled "On ment in the economic, political, cultural and social fields, which we the Reform of the System of Party and State Leadership," at have long regarded as essential for an enlarged meeting of the Political Bureau of the CPC the socialist system and for Central Committee. Based on Marxism, Deng made a planning. Our leading organs at scientific analysis of the past and present of the system of various levels have taken charge of Party and state leadership, and explained clearly the many matters which they should hot and cannot handle, or cannot necessity, the content and the basic principles and policies for handle efficiently. These matters carrying through the reform. It is a programmatic document could have been easily handled by guiding China's reform of its political system in the future. the enterprises, institutions and coriimunities at the gfass-roots The report consists of five parts. The following is the full level, provided we had proper text of the third part, which describes the major defects of the rules and' regulations and they existing system and the Erection of the reform (see "Selected acted according to the principles Works of Deng Xiaoping," English edition, pp. 309-317). of democratic centralism. Dif• ficulties have arisen from the custom of referring all these things ome of our current systems and overstalTing administrative to the leading organs and central S institutions in the Party and organs; being dilatory, inefficient departments of the Party and "slate are plagued by problems and irresponsible; failing to keep government: no one is so versatile which seriously impede the full one's word; circulating documents that he can take on any number of realization of the superiority of endlessly without solving pro• complex and unfamiliar jobs. This socialism. Unless they are con• blems; shifting responsibility to can be said to be one of the maiti scientiously reformed, we can others; and even assuming the airs causes of the bureaucracy peculiar hardly expect to meet the urgent of a mandarin, reprimanding to us today. Another cause of our needs of modernization and we are other people at every turn, bureaucracy is that for a long time liable to becorBe seriously aliena• vindictively attacking others, we have had no strict administra• ted from the masses. suppressing democracy, deceiving tive rules and regulations and no As far as the leadership and superiors and subordinates, being system of personal responsibility cadre systems of our Party and arbitrary and despotic, practising from top to bottom in the leading state are concerned, the major favouritism, offering bribes, parti• bodies of our Party and govern• problems are bureaucracy, over- cipating in corrupt practices in ment organizations and of our concentration of power, pat• violation of the law, and so on. enterprises and institutions. We riarchal methods, life tenure in Such things have reached intoler• also lack strict and explicit terms leading posts and privileges of able dimensions both in our of reference for each organization various kinds. domestic affairs and in our and post so that there are no rules Bureaucracy remains a major contacts with other countries. to go by and most people are and widespread problem in the Bureaucracy is an age-old and often unable to handle independ• political life of our Party and state. complex historical phenomenon. ently and responsibly the matters, Its harmful manifestations include In addition to sharing some big or small, which they should (he following: standing high above common characteristics with past handle. They can only keep busy the masses; abusing power; types of bureaucracy, Chinese all day long making reports to divorcing oneself from reality and bureaucracy in its present form higher levels, seeking instructions the masses; spending a lot of time has characteristics of its own. That from them, writing comments on and efTort to put up an impressive IS, it differs from both the documents and passing them front; indulging in empty talk; bureaucracy of old China and that around. Some people are seriously sticking to rigid way of thinking; prevailing in the capitalist coun• afflicted with selfish department• being hidebound by convention; tries. It is closely connected with alism: they are always ducking AUGUST 11. 1986 15 ing education and ideological struggle, has to be done to solve the problems I have mentioned in the various systems. But it must be done, or it will be impossible for us to make substantial progress in our economic and other work. Over-concentration of power means inappropriate and indis• criminate concentration of all power in Parly committees in the name of strengthening centralized Party leadership. Moreover, the power of the Party committees themselves is often in the hands of a few secretaries, especially the first secretaries, who direct and decide everything. Thus "cen• tralized Party leadership" often turns into leadership by indiv• iduals. This problem exists, in varying degrees, in leading bodies at all levels throughout the country. Over-concentration of power in the hands of an individual or of a few people means most functionaries have no decision-making power at all, while the few who do are overburdened. This inevitably leads to bureaucratism and various mistakes, and it inevitably impairs the democratic life, collective leadership, democratic centralism and division of labour with individual responsibility in responsibility, jockeying for many administrative levels and the Party and government power and wrangling with others, deputy and nominal posts, all of organizations at all levels. This thinking only of the interests of which, in turn, foster the phenomenon is connected to the their own unit. What is more, we proliferation of bureaucracy. influence of feudal autocracy in have no regular methods for Hence the necessity for radical China's own history and also to recruiting, rewarding and punish• reform of these systems. Of the tradition of a high degree of ing cadres or for their retirement, course, bureaucracy is also concentration of power in the resignation or removal. Whether connected with ways of thinking, hands of individual leaders of the they do their work well or poorly, but these cannot be changed Communist Parties of various they have "iron rice bowls." They without first reforming the countries at the time of the can be employed but not relevant systems. That is why we Communist International. Histor• dismissed, promoted but not have made so little headway in our ically, we ourselves have re• demoted. These things inevitably repeated attempts to reduce peatedly placed too much em• result in overstuffing and in too bureaucracy. Much work, includ• phasis on ensuring centralism and

Now that we are engaged in the extremely difficult and complicated task of socialist construction, over-concentration of power is becoming more and more incompatible with the development of our socialist cause.

16 BEIJING REVIEW. NO. 32 From the Zunyi iVIeeting to the socialist transformation due attention was paid to collective leadership and democratic centralism. Unfortunately, this fine tradition has not been upheld, nor has it been incorporated into a strict and perfected system. unification by the Party, and on Revolution," and we paid a heavy normally. There was a constant combating decentraiism and any price for it. There should be no growth of such patriarchal ways as assertion of 'independence. And further delay in finding a solution letting only one person have the we have placed too little emphasis to this problem. say and make important decisions, on ensuring the necessary degree practising the cult of personality of decentralization, delegating Besides leading to over- and placing individuals above the necessary decision-making power concentration of power in the organization. Lin Biao propa• to the lower organizations and hands of individuals, patriarchal gated the "peak theory," saying opposing the over-concentration vvays within the revolutionary that Chairman Mao's words were of power in the hands of ranks place individuals above the supreme instructions. This theory individuals. We have tried several organization, which then becomes was widespread throughout the times to divide power between the a tool in their hands. Patriarchal Party, army and country. After the central and local authorities, but ways are an antiquated social smashing of the Gang of Four, the we never defined the scope of the phenomenon which has existed personality cult continued for a functions and powers of the Party from time immemorial and has period of time. Commemorative organizations as distinct from had a very damaging infiuence on activities in honour of some other those of the government and of the Party. Chen Duxiu, Wang leaders also sometimes smacked of economic and mass organizations. Ming and Zhang Guotao were all the cult of personality. Recently, I don't mean that there is no need patriarchal in their way. During the Central Committee issued a to emphasize centralism and the period from the Zunyi Meeting directive insisting that there unification by the Party, or that it of the Political Bureau of the should be less publicity for is wrong to emphasize them under Central Committee [in 1935] to the individuals. It pointed out. among any circumstances, or that there is socialist transformation [in the other things, that improper never any need to oppose mid-50s], the Central Committee commemorative methods not only decentraiism or the assertion of and Comrade Mao Zedong mean extravagance and waste and independence. The problem is that invariably paid due attention to lead to divorce from the masses, we have gone too far in these collective leadership and democ• but also imply that history is made respects, and we have even failed ratic centralism, so that democra• by a few individuals— a notion to clarify what we mean by tic life within our Party was quite which is detrimental to education decentraiism and assertion of normal. Unfortunately, this fine in Marxism inside and outside the independence in the first place. tradition has not been upheld, nor Party and to the elimination of Now that ours has become the has it been incorporated into a feudal and bourgeois ideological ruling party in the whole country, strict and perfected system. For influences. This directive, which and especially since we have example, when major issues are contained some regulations desig• basically completed the socialist discussed inside the Party, very ned to correct undesirable pract• transformation of the ownership often there is insufficient democ• ices, is a very significant of the means of production, the ratic deliberation. Hasty decisions document. Here I must also Party's central task is different arc made by one or a few mention that after 1958 residential from what it was in th past. Now individuals and votes are seldom quarters were built in many places that we are engaged in the taken, as they should be under the for Comrade Mao Zedong and extremely difficult and com• principle of majority rule. This some other comrades on the plicated task of socialist construc• shows that democratic centralism Central Committee, and that after tion, over-concentration of power has not yet become a strictly the downfall of the Gang of Four is becoming more and more applied system. After the criticism work still continued on some such incompatible with the develop• of the opposition to rash advance building projects in Zhongnanhai. ment of our socialist cause. The in 1958 and the campaign against All this had a very bad infiuence long-standing failure to under• "Right deviation' in 1959, democ• and entailed much waste. FLU- stand this adequately was one ratic life in the Party and stale thermore. to this day a few high- important cause of the "Cultural gradually ceased to function ranking cadres are still given

AUGUST 11. 19X6 17 ARTICLES

In the draft of the revised Party Constitution discussed at the Fifth Plenary Session of the Eleventh Central Committee, it was proposed that life tenure in leading posts be abolished. As we see it now this provision needs to be further revised and supplemented.

welcoming and farewell banquets, relations in the old society ment, impeachment and rotation and traffic is held up and great between monarch and subject, or of cadres and, in the light of publicity made wherever they go. father and son, or the leader of a specific conditions, to work out This is most improper. All the faction and his followers. The appropriate and explicit regul• practices I have mentioned, which patriarchal ways F have described ations for the terms of office and seriously alienate us from the are partly responsible for the grave retirement of leading cadres of all masses, must be banned at all mistakes some comrades categories and at all levels levels from the top down. make. Even the formation of the (including those elected, appoin• counter-revolutionary cliques of ted or invited). No leading cadre Many places and units have Lin Biao and Jiang Qing was should hold any office their patriarchal personages with inseparable from the patriarchal indefinitely. unlimited power. Everyone else ways surviving inside the Party. In has to be absolutely obedient and a word, unless such ways are During the "Cultural Revo• even personally attached to them. eliminated once for all, the lution," Lin Biao and the Gang of One of our organizational prin• practice of inner-Party democracy Four did everything to procure a ciples is subordination of the in particular and of socialist privileged life style for themselves lower Party organizations to the democracy in general is out of the and inflicted great suffering upon higher, which means that a lower question. the masses. At present there are still some cadres who, regarding organization must implement the Tenure for life in leading posts is themselves as masters rather than decisions and instructions from linked both to feudal influences servants of the people, use their the higher one. This does not, and to the continued absence of positions to seek personal privi• however, preclude relations of proper regulations in the Party for leges. This practice has aroused equality among Party comrades. the retirement and dismissal of strong mass resentment and All Party members, those who cadres. The question of retirement tarnished the Party's prestige. take on leadership work as well as did not arise during the period of Unless it is firmly corrected, it is the rank and file, should treat each revolutionary wars when we were bound to corrupt our cadres. The other as equals, equally enjoy all all still young, nor in the fifties privileges we are opposed to today rights to which they are entitled when we were all in the prime of are political and economic and fulfil all the duties they are life, but it was unwise of us not to prerogatives not provided for by expected to perform. Comrades at have solved the problem later. law or the existing regulations. the higher levels should not Still, it should be acknowledged The appetite for personal privilege imperiously order about those at that it could not have been solved, shows that there are still lingering lower levels; and they certainly or at least not completely, under feudal influences. From old China must not make them do anything the conditions then prevailing. In we inherited a strong tradition of in violation of the Party the draft of the revised Party feudal autocracy and a weak Constitution or the country's Constitution discussed at the Fifth tradition of democratic legality. laws. No one should fawn on his Plenary Session of the Eleventh Moreover, in the post-Liberalion superiors or be obedient and Central Committee, it was pro• years we did not consciously draw "loyal" to them in an unprincipled posed that life tenure in leading up systematic rules and regu• way. The relationship between a posts be abolished. As we see it lations to safeguard the people's superior and a subordinate must now, this provision needs to be democratic rights. Our legal not be the one repeatedly criticized further revised and supplemented. system is far from perfect and has by Comrade Mao Zedong, the What is essential is to improve the not received anywhere near the relationship between cat and systems of election, recruitment, attention it deserves. Privileges are mouse. Nor should it be like the appointment, removal, assess• sometimes restricted, criticized

18 BEIJING REVIEW, NO. 32 and attacked, but at other times Here, the most important thing is Some serious problems which they are allowed to proliferate to have definite organizations to appeared in the past may arise again. To eradicate privilege, we exercise impartial supervision. again if the defects in our present must solve both the ideological systems are not eliminated. Only problems involved and problems It is true that the errors we made when these defects are resolutely relating to rules and regulations. in the past were partly attributable removed through planned, sy• All citizens are equal before the to the way of thinking and style of stematic, and thorough reforms law and the existing rules and work of some leaders. But they will the people trust our regulations, and all Party mem• were even more attributable to the leadership, our Party and social• bers are equal before the Party problems in our organiz• ism. Then our cause will truly have Constitution and regulations on ational and working systems. If a future of boundless promise. these systems are sound, they can Party discipline. Everyone has We cannot discuss the defects in equal rights and duties prescribed place restraints on the actions of bad people; if they are unsound, our system of Party and state by law, and no one may gain leadership without touching upon advantages at other's expense or they may hamper the efforts of good people or indeed, in certain Comrade Mao Zedong's mistakes violate the law. Whoever does in his later years. The resolution violate the law must be subjected cases, may push them in the wrong direction. Even so great a man as on certain questions in the history to investigation by the public of our Party since the founding of security organs and brought to Comrade Mao Zedong was influenced to a serious degree by the People's Republic of China, a justice by the judicial organs document now being drafted, will according to law. No one is certain unsound systems and institutions, which resulted in include a systematic exposition of allowed to interfere with law Mao Zedong Thought and a enforcement, and no one who grave misfortunes for the Party, the state and himself. If even now reasonably comprehensive assess• breaks the law should go ment of Comrade Mao's own unpunished. No one may violate we still don't improve the way our socialist system functions, people merits and demerits, including the Party Constitution or disic- criticism of his mistakes during the pline, and anyone who does must will ask why it cannot solve some problems which the capitalist "Cultural Revolution." As be subjected to disciplinary action. thoroughgoing materialists, we No one is allowed to interfere with system can. Such comparisons may be one-sided, but we must not Communists cannot but accept the enforcement of Paty discipline, what should be accepted and reject and no one who does should be just dismiss them on that account. Stalin gravely damaged socialist what should be rejected, basing allowed to escape disciplinary our judgement strictly on facts. sanctions. Only when these legality, doing things which Comrade Mao Zedong once said Comrade Mao rendered immortal principles are implemented re• service to our Party, our country solutely can such problems as the would have been impossible in Western countries like Britain, and our people throughout his life. pursuit of privilege and the His contributions are primary and violation of law and discipline be France and the United States. Yet although Comrade Mao was his mistakes secondary. But to eliminated for good. There must avoid mentioning his mistakes be a system of mass supervision so aware of this, he did not in practice solve the problems in our system because of his contributions that the masses at large and the would not be a materialist Party rank and file can supervise of leadership. Together with other factors, this led to the decade of approach. Neither is it a the cadres, especially the leading- materialist approach to deny his cadres. The people have the right catastrophe known as the "Cul• tural Revolution." There is a most contributions because of his to expose, accuse, impeach, mistates. The "Cultural Revo• replace and recall, according to profound lesson to be learnt from this. I do not mean that the lution" was a blunder and a failure law, all those who seek personal ' because it ran completely counter privileges and refuse to change individuals concerned should not bear their share of responsibility, to the scientific tenets of Mao their ways despite criticism and Zedong Thought. These tenets, education. The people have the but rather that the problems in the leadership and organizational which have been tested and right to demand that these persons proved correct through long years pay for what they have unlawfully systems are more fundamental, widespread and long-lasting, and of practice, not only guided us to taken and that they be punished victory in the past but will remain according to law or through that they have a greater effect on the overall interests of our our guiding ideology in the years disciplinary measures. Regul• of struggle ahead. It is incorrect ations must be worked out country. This is a question that has a close bearing on whether our and against the fundamental governing the scope of powers interests of the Chinese people to attached to particular posts and Paty and state will change poHtical colour and should therefore have any doubt or to waver to any the political seniority and material degree on this important principle benefits of cadres at all levels. command the attention of the entire Party. of our Party. •

AUGUST II, 1986 19 Deng Jiaxian: China's Father of A-Bomb

Because of what he saw as the humiliation China suffered at the hands of foreign aggressors and because of his patriotic desire to build up China's defence capabilities, nuclear physicist Deng Jiaxian, 62, devoted his life to designing and building China's atom and hydrogen bombs. Great as his accomplishments were, it was only recently, a few months before his death on July 29, that the cloud of secrecy surrounding Deng has been lifted and that he has begun to be publicly known as the "Father of China's A and H bombs."

by Ku Mainan

any may still remember that Min the early 1940s a group of internationally recognized nuclear physicists suddenly "disap• peared" for years until July 16, 1945, when the United States exploded its first atom bomb. China also has scientists who \anished from view and set out to build a bomb for China. One of them was Deng Jiaxian.

A few years ago when the Chinese-American professor Chen-ning Yang asked a physicist who had graduated from Beijing University in the 1960s whether had ever seen or heard of Deng Jiaxian. the physicist said "no." The secrecy of Deng's work was so thorough that even his wife, Xu Luxi, did not know what he had done. "I discovered what my husband was doing when 1 read the recent newspaper reports about him," she said.

True. Deng is not as well-known as J. Robert Oppenheimer, who was widely recognized as the brain behind the United Stales" atomic bomb. Deng was, however, the most important of China's nuclear scientist and the architect of its nuclear industry.

His Choice In 1950, a year after New China was founded, Deng Jiaxian

20 BEIJING REVIEW. NO. }2 1

lb 1 Deng's memorial meeting in Beijing on August 3 was attended by Chinese ieaders Zhao Ziyang, Wan Li and others, wu THENHUI

returned to China with a doctoral bombs that exploded during the teaching model of the atomic degree in physics from Purdue July 7, 1937, Marco Polo Bridge bomb. Deng and his colleagues University in the United States. Incident were fresh in their ears. In prepared for its arrival. In the end, He was then 26. When he reported their mind emerged the images of however, the model did not arrive, for work at the newly founded unarmed Chinese falling in front for the agreement was scrapped Modern Physics Research In• of the Japanese machine-guns. and all the Soviet experts in China stitute of the Chinese Academy of "A defenceless country is bound were called back. Natural Sciences, some of the to be bullied, and its people will One day, Vice-Minister of the elder physicists like Qian San- suffer," Deng told his wife. Second Machine-Building Indus• qiang, Peng Huanwu and Wang try Liu Jie said to Deng: "You'd Ganchang were especially pleased. better prepare to do the job on They regarded Deng as an Years of Sweat your own." energetic 'injection of new China was left alone without blood." He was appointed head of the guidance or data. Deng remained In autumn 1958, a high-ranking theoretical department of the optimistic, however, and hand- official of the Second Ministry of Nuclear Weapons Research In• picked a group of college Machine-Building Industry told stitute in 1958. The institute was graduates, all in their 20s. He Deng he had been chosen to head nothing more than an empty plot worked during the day and China's team of physicists wor• of farmland staffed with a few instructed his trainees at night. king on the country's first atomic scientists. All its work was begun Sometimes he prepared lectures bomb. from scratch, with only a few until after midnight, slept briefly Deng told his wife only that he pieces of in the office and was back at work ,was going to change jobs. "I will equipment. Deng laboured day before dawn. have to do something special and and night at the institute for leave you and the children. The several months with construction If the whole production process job is so important that it is well workers until a decent building of an atomic bomb were likened to worth my life." he said. was erected. a dragon, theoretical design would He and his wife sat up the night be the head. Deng was at the head recalling their past — their happi• Years earlier, the Chinese of the dragon that was China's ness, their sorrows and those of government had signed a new atomic bomb production. their country. Both remembered defence technology agreement "We were struggling alone in World War II, which decimated with the Soviet Union. According the dark at that time," said one of their country and left many of to the agreement, the Soviet side Deng's students, now in his early their countrymen homeless. The would supply China with a 50s. "It was Deng who showed us

AUGUST II. I9i<6 21 the orientation and urged us to To their joy, a research group in professor of anatomy, fell prey to concentrate on theoretical study." Shanghai discovered a the "cultural revolution" too, Deng demanded much of his shortcut for the manufacture of because 6f her academic accompl- students, but never pulled rank on tlie hydrogen bomb in 1965, only ishmertts. Deng was frustrated and them. Hf also demanded a great several months after Deng had disappointed. deal of himself. In his work begun his research. Deng immedi• All he wanted was to continue schedule, there were no days off. ately flew to Shanghai and decided his research. Every day that the At 7:30 pm on Sundays, however, to begin experiments without "cultural revolution" stole from Deng allows his students to rest. delay. his work, Deng felt as a national Because Deng believed that Deng was the leader of his loss. He lobbied the two factions everything is possible, he and his group and willing to bear all risks. and persuaded them eventually to group pushed themselves to the "In case of danger, we die mend their fences and allow limit until 1959 when they together," he told his colleagues. research to continued. As a result, sketched out the theoretical design "In what we are doing, every trifle China's first hydrogen bomb of China's first atomic bomb. is important and potentially exploded successfully in June China then had no sophisticated hazardous. Any mistake could 1967. computers. Using four hand- mean disaster," Deng said. It took the United States seven driven computers and sometimes One day, after midnight when years to go from atomic bomb to even abacuses, Deng and his he had just got in bed, the phone hydrogen bomb, the Soviet Union group went on three shifts for nine rang. Something had gone wrong five years and France eight years. months until they had calculated, in processing a component and It took China only two years and confirmed and reconfirmed every Deng was needed immediately. He eight months. detail. They asked theoretical set off in his pajamas and slippers. physicists Zhou Zhaoguang and In pitch dark, his car bumped others to double-check their data. along a rugged road for three A Ufe Without Rest When both calculations proved to hours before reaching the work• tally with each other, they began a shop. Without delay, he grappled Deng was a man who knew no series of experiments and with the problem and solved it. rest. In 1984 when he was "forced" succeeded. by colleagues to relax, he visited It was 3 pm on October 16, Another time when an under• the West Lake in scenic Hang- 1964, that a mushroom cloud ground test was about to begin, a zhou. An engineer who went with heralded by a deafening explosion signal disappeared from the him asked: "Because of your rose to the sky in China's west. monitoring screen. accomplishments and seniority, China's first atomic bomb had "What's happened?" everyone you could have had all the been exploded. asked. Again, they called Deng. comforts. You could have Deng arrived and fixed the trouble travelled around, giving some on the spot. In the desert where the lectures and sightseeing. Why do 'How Could I Leave the pit was located, the wind was Battlefield?' you choose such a difficult course strong and the weather was biting anddemand so much of yourself?" No sooner had Deng calmed at more than 30''C below zero. "I feel no regret for what I have down from the excitement over the When somebody saw how tired done," Deng said. "A man has to successful explosion of China's Deng was and asked him to go do something for his country." first atomic bomb than he and his back for a rest, Deng said: "No. When they walked to the nearby group began a much more difficult This is a battle. How could I tomb of Yue Fei, a 12th-century task, researching the hydrogen leave?" No' sooner had the test hero known for his patriotism, bomb. ended than Deng fainted with and saw the tombstone inscribed Like atomic bomb technology, fatigue. The first thing he asked with the words: "Devotion to the the technology behind a hydrogen after coming to: "Did you get all country," Deng said to the bomb is jealously guarded by the the data?" engineer: "Come, please take my superpowers. Again, Deng and his Unfortunately, just as the photo in front of the tombstone." group had to start from scratch. testing of the hydrogen bomb was Like Yue Fei, Deng devoted all his The responsibility of creating a about to go ahead, the 10 chaotic life to the defence of his theoretical design for the hydro• years of the "cultural revolution" motherland. gen bomb was considerable. They began in 1966. The people Deng directed 15 of China's 32 had periods of success and periods involved in the project were split nuclear tests. Years of hard work, of failure. But for the most part into two warring factions, and however, so taxed his health that Deng's days spent on the many of the scientists were framed he-was finally stricken down by hydrogen bomb were frustratingly for "misdeeds" and forced to leave cancer. He died in a Beijing non-productive. their posts. Deng's wife, a hospital on July 29, 1986. •

->2 BEIJING REVIEW, NO. 32 ARTICLES

The Lopsided Japan-US Economic Ties by Zhou Zhixian n the uneven development of the bonds, mainly financial bonds, ticularly that with the United I world economy, Japan is and exported US$72.4 billion States, is its powerful industrial setting new world records in its worth of goods to the United export capacity developed foreign trade surpluses. Japan's States. Nearly one-third of the through its policy of "establishing favourable balance of trade with United States financial deficits the country through trade," and the United States has increased now have to be made up by its tradition of "export first." For five-fold in the first half of the Japanese funds. Analysts are this reason, Japan's surplus in 1980s, from US$9.11 bilHon in beginning to wonder how long the foreign trade has become a 1980 to US$49.7 billion in 1985. In United States, harassed as it is by "structural" problem. Recently, 1985 alone Japan's trade surplus the so-called "twin deficits" — a Japan frankly declared itself to be increased by 34 percent. budget deficit of US$200 billion the "big country of trade surplus" According to forecasts made by and a trade deficit of nearly in the world. the OECD, Japan's trade surplus US$150 billion—can hold out by The present situation is that in 1986 will reach US$77 billion, relying on foreign funds for GNP Japan's pressure on the United equalling the gross national growth. In the US Congress, there States has reached or almost product of Belgium (US$77.1 are more than three hundred reached the "limit" that the billion in 1984) and will be ten protectionist bills against Japan at United States can sustain. A times higher than the highest trade various stages of enactment. review in Britain's influential surplus ever attained in history by The economic "friction" be• Financial Times compared "the the United States (US$7.73 billion tween Japan and the United States rise and fall of the dollar empire" in 1957). has reached such a pitch that some to the movement from prosperity American officials accuse Japan of to decline of the British empire — carrying out "economic colonial• the so-called "Imperial cycle." ism" against the United States.' It does not really . matter A Historical Turning-Point In September 1985, the G5 whether this comparison is conference (the financial summit appropriate or not. But it is a fact Japan has accumulated a huge of five developed industrial that 40 years after the war, an amount of funds in foreign countries) decided to intervene important change has taken place exchange and in a matter of four jointly and internationally to in the balance of strength between or five years transformed itself bring down the high exchange rate Japan and the United States. into the largest creditor nation in of the US dollar. In the months Looking forward to the year the world. By March 1-986, its net isince then the Japanese yen has 2000, Japanese official and semi• assets abroad reached US$124 risen invalue by 20,30 and now 40 official experts agree that after the billion. At the same time the percent. According to a study by passing of fhe Pax Britannica in a United States ceased to be a the Japanese Bureau of Economic modern history, the Pax American creditor nation in 1985 for the first Planning, for every 10-percent rise is on the verge of decline. The time in seventy years, becoming a in the exchange rate, Japan's United States still possesses debtor nation. exports decrease by 2.22 percent. considerable strength and the On the other hand, as the prices newly emerging "super-creditor In the fiscal year April 1985- Japan pays fox its imports become nation" Japan is not yet strong March 1986 Japan bought US$67 relatively lower, combined with enough to replace the United billion worth of American foreign the sharp drop in oil prices, States. But in 10 to 15 years, the Japan's trade surplus has not been Tokyo financial market will rival The author is a Senior Fellow of the reduced at all. New York's as an international Institute of Contemporary International The principal cause of Japan's financial centre. It is probably true Relations in Beijing foreign economic imbalance, par• to say that the Japan-US alliance AUGUST II, 1986 2.^ ARTICLES has reached a "historical turning- becomes relatively lower, there is a Richard D. Lamm, have pointed point" as far as its economic growing drive in Japan for out that Japanese factories in the relations go in the latter half of the engaging in "overseas United States means that the 1980s, despite the fact that their production." children of Americans will be political and military alliance working for the Japanese for a remains what it was. Japanese big business and long time to come. American transnational corpor• People found it difficult to ations have joined hands in imagine that one day Japanese monopolizing the production of investors will play the role of the Elation and Uneasiness brand-name products, buying up old colonial factory owners on the factories that are losing money, American continent. But the fact and producing fast-selling Japa• that a first-rate industrial power nese goods locally on a consider• has to prop up its economy with Over the last few years, Japan's able scale. An automobile factory capital, technology and employ• huge banking and industrial built with Japanese capital with an ment opportunities furnished by capital resourses have swamped annual output of 50,000 cars, for its former "junior partner" cannot the American market both in example, needs to employ, directly but make people think deeply. In terms of trade and in the export of and indirectly. 50,000 American Japan the phenomenon is known capital. As described by some workers. A recent semi-official as "the hollowing of the American Japanese reporters, the offices and Japanese research report says that economy." It is said that apart subsidiaries of Japanese banks, by the year 2000, direct foreign from the fields of nuclear businesses and stock companies investments by Japanese manu• technology, space, and some based in Wall Street and in the facturers will have increased nine camputer high-tech, the United many skyscrapers built with times over the 1984 figure, and the States is falling behind. There are Japanese money are shon'- Japanese manufacturing industry some "hollows" in its national one voice: "Whoever can domi• as a whole will have shifted 20 economy which are being filled in nate the American market can percent of its production capacity by Japan. dominate the world." overseas. It is obvious that most of the "overseas producton" will be Despite the fact that there are Of course, the inflow of done in the United States. It can be clear signs of "interdependence" Japanese capital into the United calculated that by then the in today's international economic States means "transfusing" huge international markets, mainly the relations, the advance of history is credit capital into American American market, will be flooded still far away from the time when business and "contributing" to• with about US$100 billion worth the "nation states" will die out. wards the growth of the United of products turned out by overseas Whether Japan is making "contri• States' GNP. This is welcomed by Japanese businesses. butions," or filling in "hollows," the latter. In 1985, Japan invested in the American economy, in the USS60 billion in American bonds, From the Carter administration last analysis, all the long-term and which equalled the total US to the Reagan administration, the short-term investment bonds and private investment in the same federal authorities and many direct investments have to be paid year. Japanese non-governmental state governments and even some for with investment benefits, both direct investments in the United trade union leaders have en• in capital and interest. The States amounted to only US$230 couraged Japanese businessmen essential difference between a million in 1970 but rose sharplv to to make investments and set up nafional economic system and the US$17 billion in 1985, a 73-fold factories in the United States. international one lies in the fact increase. The more than 500 Today, California is in the lead that within a country, debts of Japanese factories in the United with 140 Japanese-financed fac• whatever size between the govern• States employ a million American tories. Next comes Texas with 38 ment and citizens, or between workers and staff, and to furnish factories, Georgia with 31 fac• citizens, only involve money being these factories with spare parts tories and some other states with transferred from A's purse to B's; and transport and other services, about 20 Japanese-financed fac• there is no question of any loss or an additional three million are tories. Public opinion, welcoming gain to the national economy. But employed in support industries. Japanese capital, tells Japan has a transaction between the United Moreover, another half million brought to the United States States and Japan means either a Americans are employed by 4,500 "employment opportunides," gain or a loss in the national non-manufacturing Japanese "advanced production tech• accounts of the two countries. companies. As the Japanese yen nology" and "good methods of However clever an economic rises in value and the cost of management." At the same time, theory, this simple fact of life making foreign investments some senior officials, among them cannot be avoided. Over the last

24 BEIJING REVIEW, NO. 32 It is hard to imagine that one day Japanese investors will play the role of old colonial factory owners on the American continent. But the fact is: A first-rate industrial power is propped up by a "junior partner. " In Japan, the phenomenon is known as "the hollowing of the American economy."

year, some alarming forecasts Therefore, the trend for the future posture" and have little in the way have appeared in the United is not as optimistic as Japan's of specific content; "clear targets States. For instance, E. G. Western partners have estimated. but short on means," said the Corrigan, President of the Federal The higher exchange rate of the authoritative Japanese Economic Bank, declared: If the present yen may curb the growth of News. situation continues for five more Japanese exports for a short time, New Forms of years, America's accumulated but eventually the West will find foreign debts will reach as high as itself facing a graver challenge International Co-ordination US$500 billion in 1990 and from Japan. US$35-45 billion will have to be The problem of the United paid as interest every year. The On the eve of the seven-nation States and Japan is, when viewed Morgan Guaranty Trust Co. summit in Tokyo, Japan pub• in a broader perspective, actually a forecast in April 1985 that if no lished a report by the Research "tripartite" problem involving serious measures are taken, the Society for Internationally Co• Japan, the United States and United States will amass US$943 ordinated Economic Structural Europe; it is also affects the billion in foreign debts by 1989 Readjustment — a private con• relations of Japan and the United and will have to pay out yearly sulting body of Prime Minister States with the Asian and Pacific interest of US$90 billion. There is Nakasone, which admitted that if countries and the whole of the no doubt that Japan, the biggest Japan's foreign economic "im• third world. It is difficult to see a creditor nation in the world, will balance" continued, it would not reasonable solution being found reap the largest share of the benefit the "regulated develop• to the problem that does not take interest and investment benefits. ment" of Japan and the world the overall international economic economy, and that its "structural situation into account. It may be noted that with the foreign trade surplus" has gen• At the end of 1985, the rise in value of the Japanese yen by erated "a state of crisis." It distribution of the world's large margins in the last two expressed an intention to make a economic forces can be roughly months, a drive is gaining "historic change" in the structure indicated by the proportion of momentum in Japan to raise of the Japanese economy. It each country's GNP, as follows: a) efficiency and cut down costs. proposed 1) to expand domestic the United States, 28 percent; b) Managers of big businesses demand; 2) to bring about a the European countries, 17 obviously want to avail themselves change in the industrial structure percent; c) Japan, 10 percent; d) of the "grave situation" of the to fit in with "internationally the western Pacific region (includ• rising value of the yen to intensify regulated development;" 3) to ing China, the ASEAN countries. technical renovations, improve improve access to Japan's domes• Northeast Asia, Australia and management, make further efforts tic market and promote imports; New Zealand), 6 per cent; e) the to "save manpower," "save 4) to safeguard the stability of Soviet Union and the East materials" and "raise output," so international monetary values and European countries, 17 percent; 0 as to adapt themselves to promote financial liberalization other parts of the world, 22 expanding exports under con- and internationalization; 5) to percent. didons of high exchange rates. An promote international co• Japan and the United States, exporter of capital today, Japan, operation and contribute to the which make up 38 percent of the because of its export tradition, will world economy; 6) to improve world's GNP, have formed not forget to continue to improve Japan's finances and banking. The excessively close market connec• its competitive edge in export above six basic policies are. taken tions and at the same time come markets. Japan has gone through together, policies for increasing into "confiict". In 1985, 85 the onslaughts of two rises in the imports and domestic consump• percent of Japan's trade surplus oil price and yet managed to tion, expanding the export of came from the United States. The increase its competitiveness. As a capital and curbing the increase in two countries each made up about Japanese saying goes: "A sparrow, regular foreign exchange sur• 14 percent of the export volume of even when it is a hundred years pluses. But these measures still the world's manufacturing indus• old. will not forget to hop." look like "assuming a correct try in 1985. In reality, the United

AUGUST II, 1986 25 ARTICLES

States is being elbowed out by This plus the nearly US$150 problem of Japan's imbalance of Japan in the international market billion trade deficit actually makes foreign trade through "intern• while its domestic market is being the close economic ties betwen ational co-ordination?" The only infiltrated by Japan. The Japanese Japan and the United States hope is for Japan and the United domestic market, even when the difficult to maintain. The same is States to liberate their thinking "customs and non-customs bar• true with Japan-Europe economic from the narrow alley of Japan- riers" which have been the target relations, Japan here having a US bilateral or Japan-US-Europe of much criticism are removed smaller trade surplus. tripartite relations solution and cannot take much more than The international economy has take a broad view of the world US$130 billion of imports. But therefore been bogged down by a economy and North-South rel• Japan's actual potential for "circulation blockade." For ations, and link the third world exports far exceeds the present many years, Japan and the United with the economic "benign volume of US$175 billion. (Ac• States, Japan and Europe, or circulation" of the developed cording to a survey made by the Japan, the United States and countries. Morgan Guaranty Trust Co., Europe have been talking about The existing lop-sided economic there is- often a surplus of 5.4 relations between the United percent between the latent produc• States and Japan are characterized tion capacity of Japan and its by either intense friction or output volume, sometimes reach• blockages of monetary circul• ing 8.9 percent. The actual figure The only hope is for ation. Without a satisfactory probably far exceeds this.) In Japan and the US to take a solution to the North-South short, Japan has a "structural" question, North-North frictions surplus of production capacity. broad view of the world economy and link the third will grow increasingly more acute. This is the lesson of the past few The most interesting thing is world with the "economic decades.,To deal with the problem that Japan has, a part from the circulation** of the of the third world's accumulated United States (which takes 37 developed countries. debts, more constructive measures percent of its exports and China 7 should be adopted in addition to percent), only a few "groups of taking emergency measures. Post• small markets," the largest being poning the repayment of debts or South Korea, which takes 4 many kinds of "international co• repaying old debts by contracting percent of its total exports. In fact ordination." But this has always new debts can after all only except for the United States, been limited to a bilateral or temporarily tide over a "debt Japan has no sizable export tripatite co-ordination. The •crisis." If Japan, instead of heavily market. No country in the world greatest effort has been placed on gravitating all its foreign can "expand and at the same time urging Japan to "open" its economic activities towards the balance" its trade with Japan. The domestic market which does not United States, were to divert more European Common Market's have much potential, or on of its industrial capacity and trade with Japan has for many expecting Japan to strengthen its investment potential to develop• years shown annual deficits of "security system" and "sharing ing the Asian-Pacific third world US$15-20 billion. defence responsibility," in the market, helping these countries to hope of supplying Japan with The developing countries of the develop their economies, and some weapons and military third world had, by the end of increasing their capacity to earn equipment and thus reduce some 1985, accumulated debts amount• foreign exchange, so that they of the foreign exchange deficit. ing to USS865 billion, of which could trade with Japan, the United These measures, leaving aside US$ 140 billion were due to be paid States and the European devel• their advantages and disadvan• back in both principal and oped countries, this would tages, have had little effect as far as interest. Debts owed to Japan genuinely help reduce Japan's relaxing "economic friction" is totalled US$40-50 billion, of excessive surplus against the concerned. The basic fact is that which US$7-8 billion is due for United States. In the same way, Japan is in possession of excessive repayment. At present, many of the United States can correspond• capacity for industrial export, the mature debts are being ingly increase its imports from the having accumulated a huge rescheduled. third world of the Asian-Pacific amount of capital. Unless the Today, the United States has region so that this region may have United States is willing to allow its become the world's No. 1 debtor more foreign exchange to increase industries at home to "hollow," nation. Its overseas net debts the purchase of American pro• there is no way to ease the pressure (amount after balancing debts ducts and thereby reduce the from Japan. against credits) have been es• foreign trade deficit of the United timated at about US$100 billion. Is there no hope of solving the States. •

26 BEIJING REVIEW, NO. 32 SPO Mountaineering Heroine: 10 Years Later

came to Wuxi, she seemed at a loss. She couldn't understand the Wuxi dialect, and she found the local foods too sweet and the weather too wet. And most of all. she said she found that to be a deputy director, issuing directives and listening to reports everyday, is not like mountaineering. Yet she is working hard to adapt herself to the new Job and is doing well. She said though she had come to like Wuxi's mild and sweet foods, she disliked its cold wet winters withoiu indoor heating and its hot, humid summers. She said she often longed for her home and family in Tibet and had returned there September last year for a visit that included much Phanthog (centre) with her friends in Wuxi. celebration. Today she doesn't have a colour hanthog. the first and only "Yet, you are so determined to TV set or refrigerator at home and P Chinese Tibetan woman to reach the top that you forget all her three children speak only conquer Mount Qomolangma about the possible crevasses under Mandarin. Her husband, Deng (Mount Everest as called in the your feet and avalanches from Jiashan, the former political West) has settled to a quiet life in above." commissar of the national moun• the picturesque city of Wuxi for Phanthog was selected as a taineering team, is now a middle five years. "But," she told member of China's national school head master in Wuxi and reporters recently, "I still miss the mountaineering team in 1958 the family's chef "Compared to mountains that tower above my when she, at 20, was working in a Han cuisine," Phanthog said, native Tibet." factory in Tibet's Chamdo "mountaineering is simple." On May 27, 1975, when she was Prefecture where much of her She said she thought she could 37 and mother of three children, family remains. At first, she said, still conquer mountains as high as Phanthog and nine others reached she had no idea how important 6,500 metres, or even 7,000 metres the summit of Mount Qomo• mountaineering would become to despite her 48 years of age. langma from the north slope. her. Standing 1.68 metres tall and Their ascent came just 15 days ' Speaking fluent Mandarin, with weighing 65 kg., Phanthog said after the first woman, a 35-year- a Beijing accent, Phanthog said she wished there were mountains old Japanese, climbed atop the she had lived in Beijing for 10 around Wuxi for her to climb. mountain from the south slope on years before she followed her Phanthog said if a good May 12. husband, a Wuxi native, to his mountaineer was not afraid of With typically Tibetan dark hometown. She now works as death, conquering a summit could skin and a broad smile, Phanthog deputy director of the Wuxi Sports become a most rewarding expe• said though she could still feel the and Physical Culture rience. Before Mount Qomolan• aftereffects of reaching the peak, Commission. gma, her other major climbs she could no longer remember the Before she entered the Central included Mount Dutaka, 7,546 details of the climb, during which College of Minority Nationalities metres above sea level and Mount she lost three toes to frostbite. She two decades ago, Phanthog had Gongger Jiubie, 7.595 metres said she also remembered the little schooling. Moving to south above sea level, both in the strain she had suffered at 7,000 China proved yet another chal- Xinjiang Uygur Autonomous metres above sea level. "I feels linge to her. Her colleague Xu Region. • half-asleep," she said. Qinghn said when Phanthog first by Zhao Zonglu

AUGUST 11. 19X6 27

1 FROM THE CHINESE PRESS

Capitalists might go after max• Commodity Production and IVIoral Life imum profits at the expense of social welfare. Under a socialist system, however, the producer and seller are to be responsible to for the negative phenomena is the society; their work should en• "RENMIN RIBAO" socialist commodity production, ( People's Daily, Overseas Edition) courage the improvement of there are arguments against such people's livelihood. reasoning. To the socialist commodity Since competition is essential he current development of producers, since they are also the for commodity production, it is Tcommodity production has sellers, it is necessary to bear suitable for both capitalist and engendered both economic and competition in mind and to pay socialist commodity production. social progress in China's rural attention to the relations between How to understand and apply areas. time, efficiency and money. When competition, however, differs in Since the implementation of the they say "time is money," the the two systems because owner• responsibility system, the farmers purpose is to raise the economic ship patterns and ideologies differ have become independent pro• efficiency of the socialist enter• in the two systems. ducers and sellers; they may leave prises. Their ultimate aim in the land and engage in different For instance, every producer production is not to exploit others kinds of mdustrial and commer• has to pay attention to time, speed or to seek profits. However, some cial activities. Because of this and efficiency in doing competi• under the socialist system have inobility. their social position has tive business. The Western adage tried to harm the consumer, and risen considerably. "time is money" reflects the law decadent Western ideas have also Also once farmers become governing commodity production infiltrated into China because of producers and sellers, they often and is applicable to both capitalist the open policy. travel to different parts of the and socialist commodity produc• It is inevitable that under fierce country looking for markets for tion. The saying, however, is market competition, there are their goods. Occasionally they applied differently under a those who will put money abo\ settle down in these new places. socialist system than it is under a everything else. The fundamental This has made it possible for them capitalist one. reason behind the negative aspects 10 establish wider social contacts Under capitalism's private of competition is the idea of with others and to develop their ownership of the means of exploitation that has managed to skills and abilities. The commer• production, profits are the goal. endure through the ages in China. cialization of the rural economy has, therefore, resulted in hundreds of millions of China's farmers making the most of their individual potential. Remnants of feudalism and \Nho Enjoys Subsidies? Who Pays? patriarchy linger in rural China, and such things as arranged marriages, widows remaining unmarried, male domination and "ZHONGGUO RIBAO" make an average of about 100 ihe preference for male children (China Daily), yuan (about US$30) per month. continue to shape some rural lives. . College graduates may make These ideas are at least in part only 60 yuan, and their monthly founded in the natural economy, t is understandable when foreig• contribution to society may be which cannot be shaken unless I ners staying in China complain worth far in excess of this. They commodity economy is devel• about certain inequities. For may have just helped design a new oped. Only then can such ideas be instance, foreigners pay 150 yuan electronic system worth thousands done away with. to fly from Beijing to Shanghai, of dollars, or have helped policy However, aside from rural while the Chinese next to them pay makers avoid a costly planning social progress, commodity pro• only 90 yuan. Unfair? mistake. Their contribution to duction has had other effects. But if they care to aSk how society is not fully rewarded in Along with the commercialization much their Chinese companions currency. the economy, some negati've earn per month and compare the Naturally, their share of public .oc\ii\s have also been on sum with Western salaries, they wealth is not tied entirely to ihe increase. Though some have may feel an even greater sense of money. They eat state-subsidized held that the fundamental reason unfairness — for the Chinese food, live in state-subsidized

BEIJING REVIEW, NO. .^2 houses, enjoy free medical care, and their children get free Suggestions on Agriculture education. And, when they fly, they get charged affordable rate. "GUANGMING RIBAO" regions in Henan, Hubei and There are some foreigners who (Guangming Daily) Anhui provinces and the Fenghe complain they are routinely and Weihe valleys in Shanxi and charged more than the Chinese. Shaanxi, has about 31,000.000 Their arguments have some Chinese expert recently sug• hectares of land under cultivation, justification. Different air fares Agested that in the next 15 years, accounting for nearly one-third of are just the .tip of the iceberg, China should consolidate its the country's total arable land. followed by an almost endless list northern and southern regions, And the climate in this region is of other things: Chinese may pay improve the environmental con• well suited to agricultural pur• 10 yuan to get a nice restaurant ditions of its northwest and poses. The region's per-hectare dinner, while foreigners may have southwest and develop its central yield, at the country's average to pay 20; Chinese may also pay region. Liu Xunhao, a professor at level, has great . potential for half of the foreigners' rate for a Beijing Agricultural University, further development, he said. hotel room. said China should also consider its At present, central China is the central region as a major area for nation's production base for rice, Charging visitors higher prices development. This region, which cotton, edible oil, soybeans, is by no means a Chinese tradition. covers the drainage areas of the tobacco, livestock products and Nor do the Chinese take Huanghe (Yellow), Huaihe and fruit. Liu said that with the foreigners, especially Westerners, Haihe rivers, the hilly country in development of agriculture, this to all be capitalists. (This, of Shandong Province and the area may become the major course, does not include some Changjiang (Yangtze) River producer of wheat, maize, peanuts reprehensible street vendors and basins, the mountainous and sesame. • sales clerks, some of whom indeed try to "rip off foreigners.) Foreigners do not have to agree Now that writer Wang IVleng has become IVlinister of Cuiture wiil he still be able to write good novels lil

But should the Chinese allow people working for these firms to make 20 times as much as those working for Chinese companies? Should there be a whole different price system so that those working for foreign companies do not have access to state-subsidized food, housing, education, medical care, and so on? One way to solve all these small but complicated issues might be a government notice specifying where foreigners should be charged more and where they should be charged the same. •

AUGUST II. 1986 29 BUSINESS/TRADE

Foreign Loans On Expanding Foreign Under the principles of equ• ality, mutual benefit, pracfical the Rise Co-operation results, variety in form and common development, the n the first half of 1986, China n the first six months of 1986, Chinese government has approved I foreign loans increased and its I China signed 326 contracts operation of 35 new' non-trade foreign investment decreased. The worth US$688 million of foreign enterprises in foreign countries. change was announced by Liu projects and labour co-operation. This kind of Chinese enterprises, Xiangdong, spokesman of the Of this, US$400 million worth has located in 49 countries and Ministry of Foreign Economic been used. At the moment, 50,000 regions, now comes to 214, Relations and Trade at a July 30 Chinese are working abroad under totalling US$340 • million in press conference. these contracts, said Liu Xian• investment. The Chinese invest• Liu said during its Seventh Five- gdong, spokesman of the Ministry ment accounts for US$195 Year Plan (1986-90), China will of Foreign Economic Relations million. continue to use foreign funds by and Trade, at a press conference improving its investment environ• on July 30. Liu said these new develop• ment and perfecting its foreign Liu said three more contracting ments are playing an active role in economic legislation. and labour co-operation com• promoting South-South co• panies were established in the first operation and in strengthening Initial statistics show China half of 1986, bringing China's economic ties between China and concluded from January to June total number of such companies to countries and regions all over the US$2.57 billion worth of contracts 66. world. • . on foreign loans. Of this, US$2.5 billion has been used, three times more than the same period last year. Contracts of foreign invest• ment amount to US$1.24 billion, Harbin Flax and 90 percent of it is sold to more which is 2t)perceni lower than last than 90 countries and regions year. The amount of investment Exports Successful including Japan, the United comes to US$722 million, an he Harbin Flax Mill, which the States. Itlay and Hong Kong, increase of 6.9 percent. T state gave foreign trade occupying 85 percent of the Liu said during the same period, autonomy, transacted USS18 country's flax exports. In 1985, the • 304" joint ventures, 252 co• million in the first half of 1986. mill exported 8 million metres of operative ventures and 10 foreign The mill also met its export order flax fabrics worth US$12 million, ventures received business lic• quotas. accounting for 25 percent of the enses, in addition to the signing of Output of the mill accounts for textile exports of Heilongjiang an offshore oil prospecting 90 percent of China's flax total. Province, as against its 198T contract. These new ventures involve all departments of the An automated 5,000-spindle workshop of the Harbin Flax IVIill. national economy, Liu said. Seventy percent of them are production enterprises. Direct investment from Hong Kong and Macao makes up 80 percent of the total amount of foreign invest• ment. They are followed by the United States, Japan, Sigapore and West European countries. Liu said, during the seven and a half years from 1979 to 1986, China has approved the establish- . ment of 2,645 joint ventures, 4.075 co-operative ventures and 130 foreign ventures. One-third of these have gone into operation, and 90 percent of them are doing well. a

by Li Rongxia

30 BEIJING REVIEW, NO. 32 exports of only 400,000 yuan. In Beidaihe (North of the Daihe Funing County, in which Nan• addition, negotiations are under• River), the 100-year-old summer daihe is located, abounds in way with overseas Chinese in resort, is one of China's 10 most building materials such as cement, Western Europe on jointly popular scenic spots and received bricks and granite. The county running garment factories in 160,000 vacationers daily in 1985 administrator said what Nandaihe France and other countries. during the summer. The number lacks are technology and funds. The Harbin Flax Mill was built far exceeded Beidaihe's ac• The development of Nandaihe in the early 1950s with Soviet aid. commodation capacity. accounts for part of the construc• Reform of management and Nandaihe, 200 km east of tion plan of Qinhuangdao City, to technology started in 1982. Beijing, is also favourably endo• which Funing County belongs. Today, it has signed technical wed by nature. Its mean The city authority plans to exploit contracts worth US$3.5 million temperature in summer is 24.5°C, all the beaches in Funing and with Japan and the Federal and that of the sea water is 25°C. Changli counties. These beaches Republic of Germany. The 24 The 3,000-metre long and 150- run to dozens of Kilometres in spindle frames and weaving meter wide beach is beautiful and length. a machines from Japan and the well-protected by a tree line. The Yang Xiaobing finishing equipment from Federal sea is one metre deep 50 metres Germany will go into full beyond the shore and two metres operation soon. In additon, it has deep at 500 metres. It is free of imported spinning installations pollution and contains a minimum from the Soviet Union under amount of bacteria. credit trade. One of the nation's The government says it will French Open Joint 309 key technical upgrading build tourist facilities on more projects, the Harbin Flax Mill will than 200 hectares in Nandaihe. Of Timber Venture spend 60 million yuan on putting this. 100 hectares to the west will up five production lines for be for service centres. The bleaching, dyeing, printing and investment is estimated at 50 e Helin Furniture Co. Ltd., to mercerized finishing. • million yuan. Eight sanatoria are rbe jointly run by the Hejiang now under construction. A Forestry Administration of recreation centre, occupying 100 China's Heilongjiang Province hectares, will be built to the east to and the Seribo Corp. of France, is Nandaihe Developments serve both Nandaihe and Beida• now under construction. This will ihe. be China's first joint venture for andaihe (South of the Daihe timber processing and utilization. N River) in Hebei Province on Telephone services, power the Bohai Sea has recently been supplies, fresh water and sewage The total investment accounts designated a tourist area. are all available in Nandaihe. for 75 million yuan, of which the French will provide USS14.5 million. The project's annual A scene at Nandaihe. designed capacity comes to 50,000 square metres of shaving boards, and the period of operation will be 15 years. Profits due the French side will be paid with income from exports of shaving boards, 30 percent 9f which are to be sold in France. Talks on this joint venture began in 1982. The Chinese partner then was Jiamusi City of Heilongjiang Province. The talks were suspended when the question of raw materials and funds came into consideration. A joint venture contract was signed on September 29, 1984, however, after the Hejiang Forestry Administration replaced Jiamusi. by Yang Xiaobing

AUGUST II. 1986 .31 CULTURE/SCIENCE

Americans Catch Spirit of Beijing Opera

rehearsing The Phoenix Returns to Its Nest, a romantic comedy created and performed by late Beijing opera master Mei Lanfang in 1928. In 1985. for its performance of The Phoenix, the group won first prize from the Hawaii State Operatic Commit• tee. Elizabeth Wichmann was awarded best director for the programme.

Wichmann was among the first group of American students to study in China in 1979. During her stay in China, she studied the A scen^ from the Beijing opera "The Phoenix Returns to Its Nest" performed by a opera piece the Drunken Beauty troupe JFrom the University of Hawaii in English. from Shen Xiaomei of the Jiangsu Beijing Opera Theatre. Later troupe from the University of international education, requires when she returned to the United A Hawaii recently proved its students of drama and music to Slates, Wichmann decided to foreigners can perform Beijing study both Western and Oriental introduce the art of Beijing opera opera and master its unique style drama and music. Courses on to American audiences in English. and difficult acting and singing Beijing opera began there in 1984 According to Wichmann, many techniques. when the university invited three Americans are interested in With its performance in English Beijing opera experts — Yang Oriental art. Yet, because of the of the Beijing opera The Phoenix Qiuling, Li Jialin and Wan differences in language, history, Returns to lis Nest on July 19 in Ruixing of the China Beijing culture and custom, exchanges Beijing, the company became the Opera Theatre — to coach its between Western and Oriental art first to stage a whole Beijing opera singers and musicians. They also and culture have been difficult. in a foreign language. Its efforts spent six weeks in early 1985 Beijing opera, the singing of which were warmly applauded by full- house audiences during the week- Yang Qiuling (first right) and director Elizabeth Wichmann (back role, second right) long engagement at the People's helping an actress' hair-dressing. Theatre, one of the capital's major opera houses. The 1,200-seat theatre was packed for the premiere, and more than 100 people waited outside the theatre hoping for tickets even long after the opera had begun. The troupe was invited by the China Association for the Ad• vancement of International Friendship. Its performance came close to perfectly imitating the real thing, showing its members had learnt a great deal about the letter and spirit of Beijing opera. Especially good was the perfor• mance by Lynne Weber as the heroine Cheng Xuer. The minute she set foot on the stage, Weber received a long standing ovation. The University of Hawaii, which pays much attention to

BEIJING RFA'IF.W, NO. 32 is often difficult for some Chinese to understand, can be nearly impossible for foreigners. Wich- mann said she decided to concentrate first on drafting as good a translation of The Phoenix as possible. Though she speaks and reads Chinese, she said she was often confused by the complicated language of the opera. In overcoming the pro• blems of tonality, local humour and rhyme, Wichmann said she was unable to achieve a literal translation. She was, however, The troupe's orchestra. PHOTOS BY ZHANG XIAOHUA successful in capturing the drama and comedy in the work. Chinese opera uses standar• dized singing, acting, dialogue and dancing. Wichmann and the Hawaii troupe did the same and tains more than 200 entries about rhetoric, food, clothing, furnish• performed The Phoenix as a 30 subjects ranging from lingu• ings, utensils, poems and ci*. Beijing opera piece down to every istics, literature to ancient culture. drama, music, painting, anti• detail. The company's singing and For example, the computerized thetical couplets, riddles, educ• acting was well co-ordinated, and reference file can help linguists ation, ancient classics, descrip• the American student actors and find the exact location of a term, tions of love, of psychology and actresses looked like Beijing opera how many times it occurs in the appearance. The publication of actors and actresses not only novel, and how it is used in the the series will mean the end of through their make-up and sentences. Writers can usd the much page-flipping for resear• gestures, but also through their programme to find information chers who do not have access to expressions and more subtle about the poetry in the novel, the the computerized s\stcm movements. The orchestra's ac• use of certain styles of rhetoric, as According to new data obtained companiment, too, was equally as well as descriptions of appearance, from the file, there is some doubt "genuine." • love or psychology in the novel. In addition, there are also entries on about who continued author Cao the novel's food, dress, gardening, Xueqin's unfinished writmg. In Classic Tome toys, medicine and healthcare. the past, Du Zhifang, Cao's second wife, was thought to have On May 6, the programme was Computerized written the last 40 chapters of the evaluated by a committee made up novel. New information shows, of linguists, researchers and however, that the written lan• o you want to know which computer experts, who said the guage used in the later part of the D Chinese idiom is most used in programme was a useful applic• novel reflects the Beijing dialect A Dream of Red Mansions? Or, ation of modern .scientific tech• more than in the first 80 chapters. would you like to read all the nology into Chinese classics. It seems unlikely that Du, a detailed descriptions of how Jia Researchers have used the southerner who lived with Cao Baoyu and Lin Daiyu, the twoprogramm e for a variety of only three years in Beijing in major characters in the classic projects. The programme reveals northen China, could continue novel, expressed their love for one that the novel runs to 731,017 Cao's writing in Beijing style. The another? Now you need not search words, including 4,462 Chinese exploration of this and other ideas for such items by flipping through characters and 1,623 idioms and aided by the new programme is the volumes of the work. With the phrases fixed with four Chinese sure to shed additional light on A help of a computerized file on the characters. Users also learn that Dream of Red Mansions. • Qing Dynasty novel this and other there are 24 rhetoric skills used in information can be called up the novel. Of these the most used is within a minute or so. the metaphor. The programme, which took 16 * ii. poetry written to certain lune.'i .viib strict tonal patterns and rhyme sche^lc^. in months to compile and the work The data from the computerized fixed numbers of lines and words, of 30 Chinese-language teachers file has been compiled into a series originated in the Tang Dynasty (61,'<-'">^' and computer professionals at of books on 18 special subjects, and was more tuliy developed in the Shenzhen University, also con- including phrases and idioms. Dynasty (960-1279).

.\UGUST 11. 1986 LETTEI

Pillar of Majesty' rights to education in some rural with too limited space to report areas because of feudal ideas held several special subjects, (such as by their parents and the families' the Xiaozhiling Injection, the What is the history and desire to make money. couching-nettin extraction proce• symbolism behind the tall pillar It has never been easy for a dure and the Huayu decoction which is usually pictured in your developing country to carry out used for treating kidney stones.) "Notes From the Editiors"? (For compulsory education. Even de• example, p. 9, issue No. 19) veloped countries have met some A. Jimeneg Ron Fumival difficulties in this regard. Japan Colombia Pittsburgh, USA has had such problems and has been- grappling with conflicting- The stone pillar which is carved views on education. As education with clouds and dragons has a long is my profession, these problems Beijing's Quadrangles history. Known in Mandarin as always worry me. "Hua Biao," or column of majesty, The importance of education, When I visited Beijing last the pillar is said to date hack to the particularly of primary education autumn I lived in a quadrangle in Yao and Shun era. when it was and compulsory education should the Dongcheng District. I lived in called "Slander Pillar." During not be over looked. this yard for 10 days and was very that period, the pillar was wooden, Your article also said: "Com• comfortable. Though it was my and would he located at hiisy pulsory education emphasizes that first time in your country, I learnt intersections or on a main street, students should develop in an all- a great deal. I particularly and people would write their round way moraly, intellectually appreciated the beauty of the .suggestions or grievances on it: and physically." I hope the quadrangles. Emperor Yao was then said to Chinese people will, through the During my visit, I noticed collect the thoughts at the pillar ami four modernizations, further de• construction everywhere, and saw apply the ideas he found useful to velop education and build a peace- innumerable buildings and his• his rule. loving country of truth, democ• toric sites under repair. I hope The pillar later became a road racy and civilization. Beijing's quadrangles will be sign, an ornament of stone and then preserved. Tamot.su Kuroyaki on bridges, palaces and tombs. Toyama, Japan "Hua Biao" pillars are most Senzuru Hijiri common today in north China, .such Kagayama, Japan as the Emperor Taizu Mausoleum of the Qing Dynasty in Liaoning Chinese Medicine Province and the two columns of Suggestion 'Hua Biao" that have added to the I am a Colombian doctor majesty of Beijing's Tiananmen residing in China, and I was May I suggest that Beijing Square. —Ed. attracted by your articles in your Review include the times of and issue No. 20 on traditional departments involved m the medicine. The first was entitled commemorative activities in such "Traditional Chinese medicine article as "Hunan Honours Making Its Mark on the World" Master Geologist" in issue No. 18, Compulsory Education and dealt with traditional Chinese 1986. The news sources also medicine as compared with new should be indicated. If the article is scientific ideological trends. The reprinted from People's Daily or In your issue No. 19 "Notes article contained valuable inform• Guangming Daily, this too should From the Editors" column, the ation for people interested in be made known. article said; "The Fourth Session traditional Chinese medicine. of the Sixth National People's The article was, however, too Naoki Hasama Congress (NPC) has adopted a general when discussing such Kyoto, Japan new law which will gradualy put things as "blood clotting dis• into practice a nine-year com• eases," "cerebral angiography pulsory education system." It also diseases and the preparation No. You are right. Please accept my said: "This is a major event that 2." I thought there should be an thanks. The comme• will promote the cultural quality attached list or chart to explain morative activities for Ding of Chinese people and will affect more clearly what these were. Wenjiang were held in Changsha, the future of the country." The next article "Traditional Hunan Province, from April 23-25, According to your report, as medicine Works Wonders" also and were sponsored by the Science things stand today, a number of had the same problem. The and Technology Association of children were deprived of the contents seemed too sweeping Hunan province. — Ed.

34 BEIJING REVIEW, NO. 32 Feeding a Child. by Xu Longhua.

ART PACE

Wood Carving

These unique pieces are carved in various types of wood by Chinese sculptors.

Son. Sisters. hy Cao Ouochang. hy Liu Wenlu.

At the Cattle Market. hv Xu Kan. • Colourful • Always available

Orders for processing according to clients' samples and designs are also welcome.

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