On Bourgeois Liberalization Wang Xian of Xujiagou vil• lage, Yanan, Shaanxi Province, is a well-known papercut ex• pert. Here she is making a pap• ercut for a window decoration, a popular activity during the Spring Festival. Photo by He Ping

Most Chinese farmers needn't usually do outdoor farm work in the mid-winter now but can live an easy and comfortable life. These two pho• tos show the lifestyle of farmers in the north and south.

Organized in 1988, a farm• ers' orchestra from Xixiashu vil• lage, Wujin County in Jiangsu Province now has four bands for wind, string, folk, and electronic instrumental music. These members rehearse a per• formance for other farmers. Photo by Yang Lei BeijingR^view VOL. 33, NO. 7 FEBRUARY 12-18, 1990 Why Rejects Bourgeois Liberalization • China criticizes bourgeois liberalization because it does not CONTENTS want to abandon socialism and change to capitalism. The struggle does not affect economic and technical exchange with EVENTS/TRENDS 48 Spring Festival: Leaders' Busy Day the West. An article by our political editor answers a number Anti-Illiteracy Gains Momentum of questions on this key political issue in China today (p. 14). Amendment on Sanctions Condemned Counties, Townships to Elect 'Prairie Fire Programme' Trains New Farmers Congress Resettlement Plan Makes Headway • The programme, sponsored by the State Education Commis• China Launches Fifth Telecom-Sat sion, aims to help Chinese farmers modernize their farming Foreign Experts Help Shanghai Out methods. Successes achieved in little more than a year's time INTERNATIONAL convince economists that a wide implementation of the pro• UK's Decision a Violation of Its gramme will improve the rural economy significantly within a Commitment 9 few years (p. 18). Third World Struggles to Develop Its Economy 11 Soviet-US Relations Face New Test 13 UK's Offer of Residence to Hong Kong Families CHINA Why does China Oppose Bourgeois e Britain's recent decision to grant 50,000 Hong Kong house• Liberalization? holds full British citizenship is seen as a gross violation of its 'Prairie Fire Programme' Trains New 14 solemn commitments. A signed article points out that the Farmers British and Chinese governments should both abide by their The Population Boom and Family joint declarations instead of acting in violation of them (p. 9). Planning 22 Serving Mankind With Knowledge 25

DOCUMENTS Third World Countries Revamp Their Economies Decision on Further Improving the Economic Environment, e To surmount current difficulties, most third world countries Straightening Out the Economic have taken major steps to revamp their economic strategies. Order, and Deepening the These include readjusting the economic structure, cutting Reforms (Excerpts) (centrefold) public expenditure, limiting imports and encouraging exports. Some countries have also streamlined state-owned enterprises, FROM THE CHINESE PRESS 29 reduced administrative interference and started to control population growth {p. 11). BUSINESS/TRADE 30 31 CULTURE/SCIENCE 32-34

COVER: To foster a new generation of Anti-Illiteracy Target Proposed farmers, Niucun village of Linyi Coun• ty in Province runs a school of e Ushering in the US-sponsored "international year for erad• agronomy for farmers. Here, students do icating illiteracy," China sets the goal of eliminating illiteracy a laboratory analysis on soil structure. among the young before the end of this century (p. 5). Photo by Liu Quanju

Unless written by Beijing Review correspondents, the opinions expressed in signed articles do not necessarily reflect the view of the Beijing Review editorial board. General Editorial Office Published every Monday by BEIJING REVIEW Subscription rates (1 year): Tel: 8314318 24 Baiwanzhuang Road, Beijing 100037 A.S 29.00 TLX: 222374 FLPDA CN The People's Republic of China New Zealand NZ. 39.00 FAX: 8314318 Distributed by China International Book UK C14.50 English Dept. Tel: 8315599 Ext. 546 Trading Corporation (GUOJI SHUDIAN) USA US$29.00 P.O. Box 399, Beijing, China Canada Can.$25.00 EVENTS / TRENDS

Spring Festival: Leaders' Busy Day

s the Chinese lunar New when China was enjoying politi• form and opening to the outside Year was ringing in at cal, economic and social stabili• world. A midnight on January 26„ ty, its people were living a happy Later that day, Jiang and other , general secretary of the Communist Party of life and the nation was making government leaders went to Da China (CPC) and Premier Li solid headway along the course Gao Village of Li Yuan Town• Peng appeared in a nationally of socialist modernization, re• ship on the outskirts of Beijing to televised Spring Festival gala to On January 27, Premier Li Peng holds a young boy at Tiananmen Square while extend holiday greetings to the getting together with holiday makers on the first day of the Chinese lunar New nation. WANG JINGDE As fireworks lit up the Beijing Year. night sky, the two leaders also extended festival greetings to compatriots in Hong Kong, Ma• cao and Taiwan, overseas Chinese and foreign friends. Jiang told television viewers: "Let's all wish our country stabil• ity and unity and the people hap• piness! A happy Spring Festival and every success to you all!" Li also gave a short speech. He noted that the Spring Fes• tival was celebrated at a time

On January 19, Communist Party's General Secretary Jiang Zemin (second from right) chats with miners at the Yongang Coal Mine in , Shanxi Province. DONG RONGGUl

BEIJING sKE-nSEW^rEBRUARY 12-18,1990 EVENTS / TRENDS

visit local farmers. Jiang told them that the army ical Culture and Sports Com• Since 1985, the village has has always adhered to Marxism- mission, the general secretary been a model in both produc• Leninism and wished the Chinese women's vol• tion and the promotion of social• Thought and has made merito• ley ball team great success in the ist culture and ethics. The vil• rious contributions in the long Asian Games in September. lage's per capita income last year years of revolutionary struggle Qiao Shi, Yao Yilin and Song amounted to 1,250 yuan, double of the Chinese people. Ping, also members of the Stand• ing Committee of the Political the national average. He stressed that the armed During the visit, Jiang said Bureau of the Party Central forces must be under the exclu• Committee, visited farmers of that unswerving attention must sive leadership of the Commun• be paid to agriculture because underdeveloped areas in Guang• ist Party always in order to be dong Province, workers in a feedinjg China's 1.1 billion people invincible. was still a major problem. state-owned grocery market and While visiting athletes at a street cleaners in Beijing respec• The premier paid a visit to training centre of the State Phys- tively. • armed policemen guarding Tian• anmen Square. Li extended festi• val greetings to all the officers Anti-Illiteracy Gains Momentum and soldiers of the People's Armed Police throughout the tate Councillor Li Tieyihg development of the whole world. country. recently called on people's Since the founding of the Peo• The armed police, Li said, S governments at all levels as ple's Republic of China in 1949, must first of all be politically well as the entire society to strive the Chinese government has al• qualified, loyal to the Commun• for the eradication of illiteracy ways regarded wiping out illitera• ist Party and the people, and among young people before the cy and raising the quality of the must absolutely obey the com• end of this century. Chinese nation as an important mand of the Communist Party's Speaking on January 8 at a task for socialist construction. It Central Committee, the State national telephone conference to has put a great deal of manpow• Council and the Central Military usher in the UN-designated "in• er and resources into the task, Li Commission. ternational year for eradicating said. Chinese President Yang illiteracy," Li said, "We should By the end of 1988, more than Shangkun and retired leader grasp this favourable opportunity 546 million people had been grad• spent the holiday and mobilize the whole of society uated from primary school, over in Shanghai with local leaders to this end." 163 million adults had learned and citizens. In 1985, at its 23rd conference, how to read and write and mil• Yang also met with comman• the United Nations Educational, lions more were receiving contin• ders of the People's Liberation Scientific and Cultural Organiza• ued education. The proportion of Army (PLA) and the People's tion (UNESCO) said the elimina• illiterates among the total popula• Armed Police units stationed tion of illiteracy before the year tion of the country fell from more there and inspected Shanghai 2000 was one of the most pressing than 80 percent before 1949 to garrison forces stationed at tasks, and wanted a year designat• 20.6 percent in 1987. Wusong area and the PLA naval ed "international year for eradi• In the past few years, some forces at Wusong military port. cating illiteracy." UNESCO said Chinese provinces and counties During the first few days of stamping out iUiteracy should be• —Jilin and Hunan provinces, Ba- the Spring Festival, Jiang and come a top priority for the entire zhong County in Sichuan Prov• other Party and government international community. ince, Wulian County in Shandong leaders also called on factory In December 1987, the United Province and Songtao Miao Au• workers, shop assistants, street Nations decided that the year tonomous County in Guizhou cleaners and the PLA soldiers. 1990 would be the "international Province—have won internation• Jiang, also chairman of the year for eradicating illiteracy." al prizes for eradicating illiteracy Military Commission of the Cen• Illiteracy has become one of the awarded by UNESCO. tral Committee of the CPC, and most serious problems confront• However, China still has about other high ranking officers of the ing today's world, a commentary 220 million illiterates, or a quart• PLA visited a number of officers in Renmin Rlbao (People's Daily) er of the world's total, due to its and soldiers of the ground, naval said. Ignorance and poverty mere• large population and backward and air forces stationed in Bei• ly produces more ignorance and economy and culture, Li said. jing and wished them a happy poverty. Illiteracy is increasingly Among China's illiterates, 92 Spring Festival. affecting the social and economic percent live in rural areas and 70

BEIJING REVIEW, FEBRUARVIMS, 1990 •5 EVENTS / TRENDS

percent are women. About one- he said. gress from adopting anti-China third of agricultural workers are "I am instructed to express our bills again and again, Liu said. illiterates. utmost indignation," he said, "and The problems in Sino-US re• Li, who is also in charge of lodge a strong protest with the US lations have been caused single- the State Education Commission, government against the hegemon- handedly by the United States, called on all people with some ed• istic act of the US Congress he added. And the United States ucational background, especially which, basing its legislation on ru• must lift the sanctions if Sino-US in the countryside, to teach their mors, has wilfully trampled on relations are to return to normal, neighbours to read and write, and the basic norms governing inter• Liu stated. all people who are illiterate to national relations and wantonly On February 3, the National learn. interfered in China's internal af• People's Congress Foreign Affairs Unless illiteracy is wiped out, fairs." Committee also issued a statement Li warned, the popularization of Liu pointed out that in accord• strongly protesting the adoption scientific and technological re• ance with China's constitution of the amendment on sanctions search findings and the develop• and laws, the Chinese government against China. ment of agricultural production last June quelled the foreign- History has proved that no for• will be hampered. Furthermore, backed rebellion in Beijing aimed eign power, no matter what meth• the principles and policies of the at subverting the People's Republ• od it may use, will succeed in iso• Communist Party and the govern• ic of China. The Chinese govern• lating China, the statement said. ment and the laws of the country ment succeeded in defending the On the same day, the Chinese will not be well implemented, he socialist system chosen by the People's Political Consultative said. Chinese people, he said. This con• Conference Foreign Affairs Com• State Councillor Chen Jun- forms with the fundamental in• mittee also issued a strong protest sheng said at the conference that terests and aspirations of the against the amendment. • the work of wiping out illiteracy Chinese people of all nationalities should be carried out in both rur• and is purely China's internal af• al and urban areas, with emphasis fair, in which no foreign govern• Counties, Townships on rural areas. • ment or parliament has the right to interfere, he added. To Elect Congress Martial law imposed in parts of ocal Party committees have Amendment on Beijing has now been lifted, Liu said, and the whole country is en• been urged to strengthen Sanctions Condemned joying political, economic and so• I their leadership and work cial stabihty with the people lead• conscientiously to ensure the suc• rrihe .adoption by the US Con- ing a peaceful and happy life. cess of the election of county and I gress of an amendment on However, certain US congress• township people's congresses, a sanctions against China has men, disregarding reality and ad• task to be accomplished before the caused strong reaction on the part dicted to bias, have readopted the end of this year. of the Chinese government. amendment on sanctions against A circular recently issued by On February 2, China lodged a China, he said. This only reveals the Party Central Committee said strong protest with the US govern• their stubborn anti-China position the election of new people's con• ment when Chinese Vice-Foreign and their true nature of pushing gresses at county and township Minister Liu Huaqiu met by ap• power politics. levels is a major event in the coun• pointment in Beijing with James "No economic sanction can try's political life. Success of the Lilley, American Ambassador to prevent the Chinese people from congresses is important for imple• China. forging ahead," Liu said. "Facts menting the policies and princi• Liu said that the US House of will prove that, with their anti- ples adopted at the Fourth and Representatives and the US Sen• China actions, those members of Fifth Plenary Sessions of the 13th ate voted last November 21 and the US Congress are lifting a rock Party Central Committee, conso• again on January 30 to readopt an only to drop it on their own feet." lidating the grassroots political amendment to the State Depart• In the end, it is the United power, and ensuring political uni• ment authorization bill on sanc• States' own interests that will be ty and stability. tions against China. The action harmed, Liu continued. Appended to the circular was was an attempt to continue to The American government a report from the leading Party impose sanctions against China ought to have met its commit• group of the Standing Committee through legislation in disregard ments under the successive Sino- of the National People's Congress of strong opposition from the US joint communiques and concerning the forthcoming elec• Chinese people and government. promptly stopped the US Con• tion.

6 BEIJING HJ3[lE>Vp FEBRUARY 12-18, 1990 EVENTS / TRENDS

The report said that according widely scattered over the vast er Valley, where the farmland is to the Constitution and relevant countryside, and the lack of in• irrigated with river water. They laws, new people's congresses at terest in elections on the part of a now have plenty of food to eat the county and township levels few local officials. and many have started to sell sur• should be elected before the end The report also stressed that plus grain to the state. of this year to replace those elect• education in socialist democracy, This represents an initial suc• ed in the second half of 1986 or in the legal system and the situation cess in the country's programme 1987, whose terms expired in the in the country should be enh• to resettle residents from the second half of 1989 or will expire anced, and the Party's leadership poverty-stricken areas of Gansu this year. over the organization of the elec• Province and the Ningxia Hui Not only people's congresses at tions should be strengthened. Autonomous Region. Resettle• all levels should strengthen their In carrying out the election, it is ment began in 1983 and is expect• leadership over the elections, the necessary to adhere to the Four ed to be completed by the end of report said, but Party committees Cardinal Principles, fight against the century. at all levels should as well. bourgeois liberalization, give full Repeated dry spells through the Since the Fourth Plenary Ses• scope to socialist democracy, ages have brought deflation and sion of the 13th Party Central strictly observe the laws, respect destitution to the more than 7 mil• Committee which was held from the wishes of the electors and pro• lion rural people who inhabit the June 23 to 24, 1989, the entire tect their rights, and pay due at• arid mountainous area in central Party and nation have further tention to the qualifications of the Gansu and south Ningxia. The re• enhanced their consciousness in deputies. gion was thus called "the poorest implementing the Party's basic The report emphasized that area in China." line, the report said. Education in laws and regulations concerning Moreover, about 1.4 million of the Four Cardinal Principles and the direct election of people's con• these people lived in a tucked- criticism bourgeois liberalization gresses at the county and town• away area inaccessible by either are proceeding smoothly in a ship levels should be strictly im• land or water. They had to rely on deep-going ,way, and increasing plemented. state relief. importance has been attached to The relevant laws stipulate, After careful investigations and the role of the people's congress among other things, that; feasibility studies, the govern• system in the state's political life, —There should be more candi• ment decided in early 1983 to it added. dates than the number of deputies move 900,000 people from the Years of education in the le• to be elected; poor area before the end of the century. gal system, coupled with partici• —Information about the candi• pation in three rounds of elections dates should be made known to According to the programme, of people's congresses at the coun• the electoral committee or the 700,000 would be moved to the ty and township levels since 1979, presidium of the congress; Yellow River Valley and 200,000 have fostered a stronger sense of —The procedures for the regis• to the Gansu Corridor, where the democracy and the legal system tration of electors should be sim• farmland is irrigated by snow run• off down the Qilian Mountains. among the masses. They have be• plified ; come quite familiar with the pro• —No rigid ratio should be im• The programme aims to reduce cedures of direct elections, the re• posed on the composition of depu• the population density in the poor port said. ties. • area and to allow those who stay Local people's congresses at var• behind more space and a chance ious levels have also gained ex• to prosper by developing agricul• perience and, having experienced ture and animal husbandry. previous elections, their staff Resettlement Plan At the same time, the resettled members have been mentally well Makes Headway people are expected to help speed prepared to make future elections up the development of the Gan• a success. ver the past seven years su Corridor and the Yellow Riv• "All this provides favourable China has moved 320,000 er Valley, where there are 460,000 conditions for the coming elec• O people from an arid moun• hectares of reclaimable waste tions," the report said. tainous area in the northwest and land. But it also called attention to resettled them in places with plen• Since 1983, the central govern• possible difficulties, such as an in• ty of water. ment has allocated more than 70 crease in the number of those who Of the resettled people, 95 per• million yuan (US$15 million) ev• tend to move around the country, cent have grown used to their new ery year for the programme. The the trouble of calling meetings lifestyles and homes in the Gan- money is used for building new of farmers whose residences are su Corridor and the Yellow Riv• houses for the resettled people, re-

BEIJING REVIEW, FEBrtUARVlZ-lS, 1990 7 EVENTS / TRENDS claiming waste land and building water conservancy facilities. As China Launches Fifth Telecom-Sat well, every resettled person has been given 800 yuan as a settle• hina successfully sent into the spot in Xichang or before the ment allowance. orbit February 4 its fifth monitoring screen at the Beijing Two dozen settlement bases C telecommunications satel• command centre. have been built in counties and lite from its launch site in Xich- On behalf of the Party Central cities in Gansu and Ningxia, such ang in Sichuan Province. Committee, the State Council and as Jinta, Anxi, Zhangye, Yin- The satellite, the country's 26th the Central Military Commission, Li extended warm congratulations chuan, Qingtongxia and Pingluo. launch, was rocketed into space to all the personnel involved. Each of the bases has received by a Long March III launch vehi• between 7,000 and 20,000 new cle at 20:27 Beijing time and en• Ding Henggao, minister of the dwellers. tered orbit about 20 minutes later. Commission of Science, Technol• ogy and Industry for National Statistics from a monitoring Generally, the resettled peo• Defence, said that the successful centre in Xian, the capital of ple were able to become self- launching of the satellite had sufficient in grain in the first year Shaanxi Province, showed that proved again that China had en• of their resettlement. In the se• the satellite moves according to tered the mature stage in launch• cond year, their annual per-capita the designated orbit and the ing its telecommunications satel• grain output usually would exceed equipment aboard was function• lites. 500 kilograms and they would be• ing normally. Ding said "that China has the gin to sell some of it to the state. Premier Li Peng, Vice- capability to provide launching With the resettlement of the Chairman of the Central Military services for foreign clients. 320,000 people, nearly 1 million Commission Liu Huaqing, State It is predicted that in April hectares of farmland were left be• Councillor Zou Jiahua and Chief China will launch for the first hind. The average area of farm• of General Staff of the Chinese time AsiaSat-I, a US-made tele• land for those left in the arid re• People's Liberation Army Chi communications satellite which gion has increased to 0.8 hectares Haotian watched the launching on will serve Asian countries. • from 0.33 hectares per head and the population density has been reduced to 20 from 50 per square Foreign Experts Help Shanghai Out kilometre. n its ambitious modernization maceutical Factory, using val• As a result, the ecological en• drive, China's largest city has uable expertise provided by an vironment has improved and the I been the beneficiary of the American-Chinese expert, introd• economy has started to pick up. talent and hard work of many for• uced new technology and devel• Grain output of the arid moun• eign experts it has invited to its oped a new kind of cephalosporin, tainous region in central Gansu many factories, research institutes an antibiotic which earned the and south Ningxia has increased and schools over the past few factory a profit of US$5 million. at an average rate of more than 5 years. Another innovative programme percent annually in the past seven Since 1984, Shanghai has em• added 8.67 million yuan to the years. Thus, the government has ployed 330 foreign experts in such revenue of a Shanghai petrochem• been able to reduce relief grain fields as machinery, chemistry, ical plant. for the area by 7 million kilo• building materials, pharmaceuti• Meanwhile, Shanghai experts grams in each of those years. cals, agriculture, animal husban• have been contributing their share The total grain output in south dry and education. They have to the development of foreign Ningxia alone reached 460 mil• helped major factories in Shang• countries. While studying at a lion kilograms last year. It was hai to update technology and im• only 145 million kilograms in prove management. Dutch seed company, Liu Siying, a specialist from the Shanghai In• 1982. The annual grain output in Experts from the United States the area has increased to 252 kilo• and Britain, working with Chinese stitute of Horticulture, developed grams from 91 kilograms per per• colleagues, solved long-standing a new seed culture method that son and the annual net income to technological problems for the had eluded the Dutch for years. 285 yuan from 25 yuan per capita. Shanghai Film Factory and Shanghai has exported more The area is no longer called the trained hundreds of technical and than 300,000 saplings to Holland, poorest in the country. Only about managerial personnel. earning US$30,000 for China. 12 percent of the people are still New products have been devel• The two countries are discussing living under the poverty line as oped in co-operation with foreign the setting up of a gardening joint against 70 percent in 1982. • specialists. Shanghai No.3 Phar- venture. •

BEIJING RBWEW/FEBRUARY 12-18,1990 INTERNATIONAL UK^s Decision a Violation Of Its Commitment by Chen Yang

ritish Foreign Secretary ' and the related memorandum. 1 ation. The joint declaration Douglas Hurd said in Lon• Lee Peng-Fei, a major member states that the Chinese govern• B don on December 20, 1989, of the Legislative Council of ment will resume the exercise of that up to 225,000 Hong Kong Hong Kong, expressed surprise sovereignty over Hong Kong be• residents will be offered full Bri• at the Chinese Foreign Minis• ginning July 1, 1997, at which tish citizenship, giving them the try's reaction. He noted that time the British government will right to settle in Britain. The fol• China had said earlier that it was restore Hong Kong to the Peo• lowing day a Chinese Foreign a British matter and he did not ple's Republic of China.. The iVIinistry spokesman responded understand why the Chinese had joint declaration clearly sti• at a weekly news briefing that changed their attitude. Some pulates that the transitional per• the Chinese government was still ! newspapers said the memoran• iod runs from the date of the studying Kurd's plan and would dum was not part of the joint declaration was signed five years comment on it later. The spokes• declaration and was not bound ago to June 30, 1997. man did say, however, that the by law. Therefore, disregarding But what does the transitional Chinese government believed the memorandum was allowed. period mean? It is the time be• Britain and China should act ac• Xu Shimin, a member of fore July 1, 1997, when the cording to the Sino-British Joint the National Committee of the Hong Kong Special Administra• Declaration on the Question of Chinese People's Political Con• tive Region government will be Hong Kong and the memoran• sultative Conference and direc• established. The United King• dum exchanged on the signing of tor of the Hong Kong newspaper dom will be responsible for the the declaration. Ching Bao (the Mirror), noted administration of Hong Kong On December 30, the Chinese that Britain's action violated the until June 30, 1997. During this Foreign Ministry spokesman joint declaration and was against period anything harmful to the called Britain's decision to grant international practice. It failed transition does not conform to 50,000 Hong Kong households to resolve the question of Hong the spirit of the joint declara• full British citizenship "a gross Kong residents' confidence and tion. The British government's violation of its own solemn com• would cause problems for Hong decision to grant full citizenship mitment." Kong's future administration. to some Hong Kong residents The Chinese government will lead to divisions among asked Britain to change its un• A Violation of tlie Joint Hong Kongers and have adverse warranted practice. Otherwise, Declaration? effects on the future administra• the spokesman said, it would tion of Hong Kong. have to bear the consequences. Is granting Hong Kong re• According to the British gov• China's reaction to Hurd's an• sidents full British citizenship ernment, the right of abode will nouncement has prompted dif• covering the right of abode in be given to some Hong Kong ferent responses from Britain the a violation employees including key bus• and Hong Kong. The British of the joint declaration? The inessmen and professionals. Foreign Ministry's statement Chinese say it is. The British say What will happen if those who said that Britain's decision com• it isn't. But whether it is or not have the right of abode in Bri• plied with the joint declaration can be found in the joint declar- tain settle there during the tran-

BEIJING REVIEW, FEBB€A»S 12-18, 1990 9 INTERNATIONAL sitional period? The British plan j provisional agreement — is de• who possess British dependent of granting the right of abode cided by the signatories accord• territory citizenship and hold differs from that of other coun• ing to its content, nature, degree British passports would enjoy tries. Britain permits some resi• of importance, method for sign• the right of abode in Britain. So dents of its dependent territo• ing, position of parties, concrete why is it necessary for the Bri• ries to become British citizens. conditions of parties and num• tish government to give some Therefore, if a public servant ber of signatories. However, no Hong Kong residents the specific living in Hong Kong becomes a matter what it is called, it is right to settle in Britain? British citizen but chooses not to equally authentic in law and all live in Britain, where will his parties should strictly comply Do Chinese Comments allegiances lie in the future gov• with it. Contradict Each Other? ernment of the Hong Kong Spe• One of the basic principles of Last year, when the British cial Administrative Region? international treaties is that the parliament sent a foreign affairs The declaration states: signatories must be bound by the group to China, the Chinese said "Chinese and foreign nationals treaty and implement it in good the British government's plan to previously working in the public faith. They cannot invoke the grant some Hong Kong people and police services in the gov• provisions of-their internal law the right of abode was Britain's ernment departments of Hong as justification for breaking a own affair. But when the British Kong may remain in employ• treaty. These principles have government made its plan of• ment." been written in the Vienna Con• ficial, the Chinese government This regulation was worked vention on the Law of Treaties. contradicted itself and voiced its out five years ago on the basis According to Article 26 of the disapproval. that the British government af• convention, "Every treaty in In fact, at that time the British firmed that all Chinese employ- force is binding upon the parties side only stated its intention I ees in Hong Kong government to it and must be performed by and had not offered any official departments would not become them in good faith." Article 27 plan. Certainly, it is Britain's British citizens. If they now can notes that "A party may not in• own affair to express its inten• choose to become British ci• voke the provisions of its inter• tion. But, when an official plan tizens, there will be difficulties nal law as justification for its is announced, it must conform to for Hong Kong's government in failure to perform a treaty." the joint declaration. Before the 1997, thus damaging the smooth Britain's promise in the me• British government announced transfer of government power. morandum means clearly that its plan, the Chinese government In view of this, the Bri• before luly 1, 1997, some Hong had warned it to consider the tish government's announce• Kong residents are citizens of a issue prudently and take into ac• ment does not conform to the British dependent territory but count harmful results that might memorandum exchanged by they will not possess this status arise. However, the British gov• both sides and does not observe after luly 1, 1997. The British ernment ignored the warnings. the joint declaration. government will then issue them China is consistent in its posi• Should the Memorandum Be suitable passports, which China tion, and it is the British govern• Complied With? refers to as travel certificates. ment that has changed its atti• Later, this status was defined as tude. Some noted that the memo• "overseas British citizen." The randum was not a part of the difference between an "overseas What Are the Basic joint declaration and therefore British citizen" and a British na• Interests not binding, so the British gov• tive citizen is that the former Of the Hong Kong People? ernment overlooked it. These has no right of abode in Britain. people have actually recognized Therefore, if no difference ex• The people of Hong Kong that Britain has broken its prom• ists, why is it necessary to use want their region to remain ise on the memorandum but the word "overseas?" After more stable and prosperous. The fu• they consider the violation per• juggling of words, some say it ture of Hong Kong will be bright missible. means that the British govern• if its people adapt themselves to The name given to an interna• ment will not grant these people the changes on the international tional agreement — treaty, con• the right to settle in Britain after stage, open up new markets, im• vention, agreement, accord, ex• July 1, 1997, but it may do so prove its institutions and give change of notes, declaration, beforehand. If this explanation full play to its role in the inter• statement, memorandum or was tenable, however, all people national economy.

10 BEIJING REVIEW,-FEBRUARY IZ-18, 1990 INTERNATIONAL

In general, the situation in Hong Kong is stable. But there are many unstable elements lurking within its boundaries. Unrealistic slogans have been Third World Struggles to causing anxiety among the Hong Kong people. The issue of Viet• Develop Its Economy namese refugees remains uhre- solved. Imbalances exist in the by Yie Zhixiong interests of various classes, and some social problems exist. A combination of these could or the third world, the past What is worse is that the make Hong Kong unstable. Lack decade featured wide re• North-South gap is still widen• of confidence and the exodus of F gional imbalances in eco• ing. Estimates put last year's av• skilled personnel are problems nomic development. Some areas erage economic growth rate of that will harm the stability and achieved dynamic expansion, but the major industrial countries at prosperity of Hong Kong. Surely most others suffered severe diffi• 3.3 percent, 6 percent for Asia it is important to increase the culties and were forced to ex• and 0.8 percent for Latin Amer• confidence of the Hong Kong plore adjustments in their econo• ica. Africa, though having an people. However, some people mic strategies. economic growth rate of 2.2 per• are forever insisting on raising The rise of East Asia and cent, had a 3.3 percent increase unrealistic demands. They are Southeast Asia was the most in population, which means a also trying to make use of some prominent feature of this imbal• drop in actual per capita income. Hong Kongers' misunderstand• ance. The gap in per capita national ings about the mainland to make Socialist China introduced in income between developed coun• demands that the Chinese gov• late 1978 a policy of reform and tries and low-income developing ernment cannot accept. They are opening to the outside world, countries was 30 fold in 1955, 40 playing on "the will and confid• which enabled the country to de• in 1980 and 50 m 1989. ence of the people." They are not velop rapidly its national econo• The economic difficulties can trying to tackle the issue of con• my and raise considerably the be attributed to instability in the fidence; rather, they are inten• living standards of its people. pohtical situation, endless wars, tionally undermining the confid• Marked expansion was also mismanagement and other fac• ence of the Hong Kong people. achieved in other East Asian tors in some countries, but main• areas. In Southeast Asia, Singa• This is completely against the ly they should be attributed to pore has risen to become a new• principle of keeping Hong Kong the irrational international eco• ly industrialized country, while stable and prosperous. nomic order. , Malaysia and Brunei Fluctuations in oil prices The stability of Hong Kong are catching up. India, though caused major problems to third depends on China's mainland, as burdened with a population of world countries. While going up, well as Britain and Hong Kong 800 million, has also made the prices consumed one-third to' itself. As a result, friendly co• steady progress in its economy. one-half of the foreign currency operation between China and While the Asian economies are income of oil-importing third Britain should be increased. The dynamically prospering, those in world countries. When going harmonious relationship and are seriously down, the prices plunged the friendly co-operation between thwarted by heavy debts, and Af• nearly 30 oil-exporting countries the mainland and Hong Kong rica is mired in a deep crisis. into crisis. should also be enhanced. There Ac*cording to the 1989 annual re• New technologies that devel• should also be more unity and port by the World Bank, since oped in the 1980s, such as mi• co-operation among the Hong 1980, per capita national income croelectronics and biotechnol• Kong people themselves. There• has grown by 60 percent in ogy, have steadily decreased the fore, the British government's Asia, slightly decreased in Latin price of raw materials and other plan to grant some Hong Kong America and dropped by 15 per• primary products that make up residents full citizenship in the cent in black Africa, except for the bulk of third world countries' United Kingdom will harm Nigeria. It is estimated that 85 exports. But at the same time Hong Kong. (Reprinted from percent of the African popula• prices of manufactured goods Hong Kong Wen Wei Po, Janu• tion is living below the poverty from the West have increased, ary 9, 1990.) • line. severely worsening trading con-

BEIJING REVIEW, FEBRUAKY 12-18,1990 11 INTERNATIONAL

ture; easing inflation; limiting imports and encouraging ex• ports; lowering foreign exchange rates; reorganizing state-owned enterprises; reducing administra• tive interference and expanding the role of market regulation; increasing food production and controlling population growth. To meet the challenge of the trend towards regionalization in the world economy, the third world has strengthened econo• mic co-operation to resist grow• ing Western protectionism. Re• gional co-operative organizations have been established in Latin America, western Africa, south• ern Africa, central Africa, the Middle East and Southeast Asia. In addition, a global trade pre• ferential treatment agreement, Bananas from Somalia are mainly exported to Italy and Arab countries. signed by 46 developing coun• tries in Belgrade, took effect in WANG ZHENHUA April 1989. ditions for third world More and more devel• countries. oping countries have real• To surmount the pre• ized that a fundamental sent difficulties, many solution to their difficul• third world countries bor• ties lies in the altering of rowed money from the the current irrational in• West. Taking advantage ternational economic or• of the hardship. Western der. Since the 1980s, the creditor nations raised the United Nations has con• value of their currencies vened many extraordi• and interest rates and de• nary sessions to discuss creased overseas invest• the third world economic ment and loans. This problems. On December sparked a debt crisis in 4, 1989, the 44th UN Ge• 1982 and the situation neral Assembly, despite continues to worsen. In opposition from the Unit• 1989, third world debt to• ed States and other West• talled US$1.3 trillion, 40 ern countries, passed a re• percent of its gross domes• solution that reasserted tic product. Africa owed the just demand for a US$235 billion, or 44 per• new international econo• cent of its gross domestic mic order. product. Without development of the third world, which To get out of this vi• constitutes three-quarters cious circle, most third of the world's population, world countries have tak• global economic develop• en major steps to revamp ment and stability will be their economic strategies. out of the question. It is These include readjusting A homeless child in Beirut symbolizes the severe chaos time for both the North the economic structure; the Lebanese people have been subjected to due to years and the South to realize cutting public expendi- of war. the importance of this. •

12 BEIJING REVIEW, FEBRUARV 12-18,1990 INTERNATIONAL

cided to support Gorbachev in order to exploit the situation for Soviet-US Relations its own benefit. Based on the "beyond contain• Face New Test ment" policy, the United States will, politically, utilize Gorbach• by Zhou Borong ev's "new thinking" to promote the trend in the ilateral relations between ciate a new policy could lead to towards openness, democracy, the United States and the confusion between it and other freedom and plurality. B Soviet Union improved Western countries that could be It will gradually increase con• greatly in 1989, characterized by exploited by the Soviet Union. In tacts with Moscow and prudently detente and dialogue. It could fact, divergent approaches have and conditionally provide econo• even be said that US-Soviet rela• already emerged among some of mic and technological aid. Wash• tions have entered a new period. the main Western countries. In ington will encourage Moscow The decision by the two coun• late 1988, while the United to expand the private sector and tries' leaders to hold informal States was still taking a wait- market economy. talks in Malta last year and the and-see attitude, some West Eu• The White House will contin• increasing exchanges of high- ropean countries were showing ue high level dialogue with level military personnel were great enthusiasm for enhancing Kremlin and increase exchanges signs of the improved relation• their relations with Moscow. The in every field including the mili• ship. prime ministers of West Ger• tary. It will further develop bila• many and Italy and French pres• This development came after teral relations and promote the ident visited the Soviet Union in the United States adopted a pos• process of detente. succession and soon afterwards itive attitude in its relations with At the same time, it will con• banks in West Germany, Italy, the Soviets following a few years tinue its efforts to maintain mil• , Britain and the Nether• of indecision in its Soviet policy. itary superiority and try to reach lands agreed to provide a total of The new attitude is reflected in disarmament agreements with US$6.4 billion in loans to the President George Bush's policy the Soviets in favour of both the Soviet Union. In the face of the of "beyond containment," which United States and the North At• Soviet craze in Western Europe, stresses the use of political, eco• lantic Treaty Organization. It the United States had to develop nomic, technological and cultur• will strive to reach agreements a definite policy towards the So• al means in dealing with the So• on reducing conventional wea• viet Union that was co-ordinated viet Union. Washington has also pons in Europe, banning the with its European allies to prev• responded to Soviet disarma• production and use of chemical ent Moscow from utilizing the ment measures by deciding to weapons and cutting Soviet contradictions in Western ap• cut its defence budget, withdraw and American strategic nuclear proaches. some military personnel and forces by 50 percent. equipment from Europe and Second, as the Soviet domestic The short-term aim of the US close some domestic military situation got more and more ser• approach is to strengthen Gor• bases. ious, the Bush administration bachev's position and enhance The policy of "beyond con• feared it could lose a historic op• results of detente. Washington tainment" is not the result of a portunity to develop its relations considers Gorbachev to be the change in Washington's estima• with Moscow. The five-year So• easiest man to deal with in the tion of Moscow's strategic goals. viet reform has not brought any Soviet Union. The long-term aim Nor is Washington convinced obvious benefit to the people of is to keep the Soviet reform pro• that the Soviet Union will give the country, only more difficul• cess on a track favourable to the up its socialist system. In this ties. Ethnic disputes take place West and at last merge the So• writer's opinion, the US govern• frequently and disagreements viet Union into "the internation• ment took the following consi• within the party have been al community." derations into account: brought into the open. The So• It has been said that detente First, it was time for the US viet press has even boldly ques• between the United States and government to work out a de• tioned the leadership of Presi• the Soviet Union means the cold finite policy towards the Soviet dent Mikhail Gorbachev. Given war has ended and a period of m Union after five years of watch• such unstable conditions and af• peace and co-operation has be• ing and waiting. Washington ter weighing the advantages and gun. In my opinion,, it is too early knew that the failure to enun- disadvantages, Washington de• to reach such a conclusion. •

BEIJING REVIEW, FEBRUARY 12-18,1990 13 CHINA Why Does China Oppose Bourgeois Liberalization?

by An Zhiguo

lot has been said and written abroad world," Dulles said: about China's criticism of bourgeois lib• "We must always have in mind the liber• Aeralization.. Many people wonder what ation of these captive peoples. Now, libera• the Chinese have against it. To answer the tion does not mean a war of liberation. Lib• question, we must begin by pointing out, first, eration can be accomplished by processes that "liberalization" has a specific meaning in short of war " ("Testimony of the New Se• this context, and second, that what is meant is cretary of State at a Senate Hearing," Janu• bourgeois liberalization, not liberalization in ary 15, 1953). general. "It must be and can be a peaceful process," Let us examine the concept of liberalization Dulles said, "but those who do not believe that as seen in China today and see why it is being results can be accomplished by more pressure, criticized in the Chinese media. by the weight of propaganda, just do not know what they are talking about." The Origin of tlie Term He therefore urged the Voice of America and the US media in general to work up antagonis• The term "liberalization" is not a Chinese tic sentiments among the people of countries invention but a political one first used by the behind the "Iron Curtain" (i.e., the socialist West. Chinese theoreticians have added an ad• countries), and assure them of the "moral sup• jective to form the phrase "bourgeois liberal!- port" from the United States. Dulles further asserted, "We believe that it is almost certain that there will be an evolutionary change —probably evolutionary" ("Secretary Dulles' News Conference on July 2, 1957"). Since then ' ince the days of Dulles, Western Dulles' name has been associated with the term anti-socialist forces have pursued a "peaceful evolution," and the term "liberaliza• strategy of "liberalization" or "peaceful tion," used in this context, has become synony• evolution" within the socialist countries mous with his brand of "peaceful evolution." Since the days of Dulles, anti-socialist forces and publicized the values of the Western in the West have constantly pursued a strate• bourgeoisie and its pattern of "free gy of "liberalization" or "peaceful evolution" society." within the socialist countries. Through the me• dia and other means, such as cultural exchange, they have sought to infiltrate the socialist coun• zation," indicating something totally different tries and publicized the ideology and values of from the proletarian concept of liberty. the Western bourgeoisie and its pattern of "free In many public speeches he made in 1953-57, society." They have incited "dissidents" in these the then US Secretary of State John Foster countries to seize every opportunity to create Dulles repeatedly averred that it was the esta• splits, stir up riots and subvert their govern-, blished policy of the United States to promote ments. The turmoil in Beijing that finally de• "liberalization" in the Soviet Union, China and veloped into a rebellion against the Chinese other socialist countries and to place its hope on government in late spring and early summer the third and fourth generations in these coun• last year was just such a result of joint efforts tries. by anti-socialist elements at home and abroad Calling the people of the socialist countries to achieve their strategic goal of "liberaliza• "enslaved" and the capitalist countries the "free tion" or "peaceful evolution" in China.

14 BEIJING REVIEW, FEBRUARY 12-18, 1990 CHINA China's Struggle Against ing principles for building a socialist society Bourgeois Liberalization with an advanced culture and ideology. It said: Imperialist activities to subvert the coming "Bourgois liberalization, which means negating new state of China placed the Chinese people the socialist system in favour of capitalism, is on the alert even before the birth of the Peo• in total contradiction to the people's interests ple's Republic. In a Letter of Transmittal to and to the trend of history, and it is therefore President Harry S. Truman on July 30, 1949, firmly opposed by the masses." US Secretary of State Dean Acheson openly Addressing the session on September 28, declared that "... ultimately the profound civil• Deng Xiaoping said, "'Liberalization' means, ization and the democratic individualism of by itself, confrontation with, opposition to or China will reassert themselves...." revision of, our current policies and system. In Answering the challenge, Chairman Mao Ze• actual effect, 'liberalization' leads China onto dong pointed out that Acheson and his like had the capitalist road." a flimsy social base in China. He called on the Then again, in March 1987, referring to the "democratic individualists" among the Chinese few intellectuals who had whipped up campus who still had illusions about US imperialism to unrest in Beijing, he said that these people "cast away illusions and prepare for struggle" and take the side of the people instead of being pulled over by the imperialists (Mao Zedong: '"Cast Away Illusions, Prepare for Struggle," August 14, 1949, Selected Works of Mao Tse- Lfiberalization" means, by itself, tung. Vol. 4, p. 428). confrontation with, opposition to or Ever since 1978, when China adopted a poli• revision of, our current policies and cy of reform and opening to the outside world in 1978, her leadership has kept a constant system; it means nothing but the wholesale watch on bourgeois liberalization. Westernization of China and shifting In an interview with American-Chinese scho• China to the capitalist road. lar Chen Guu-ying on May 20, 1985, Deng Xiaoping said, "A new trend of thought has appeared after the '' was toppled in "want to reject the socialist system and promote 1976 and it is called bourgeois liberalization. bourgeois liberalization. What is called bour• Its believers worship the 'democracy' and 'free• geois liberalization means nothing but the dom' of Western capitalist countries and negate wholesale Westernization of China and shifting socialism—This cannot be done." the country to the capitalist road" ("China Can "While carrying out the policy of opening to Only Follow the Socialist Road," March 3, the outside adopted at the Third Plenary Ses• 1987). sion of the Uth Party Central Committee," he The facts cited above make it clear that Chi• added, "we should also do something to curb na's policy of opposing bourgeois liberalization the tendency towards liberalization. The two did not take shape after the student unrest in tasks are interrelated. Without holding the ten• late 1986 or in 1989, as some people allege, nor dency towards 'liberaUzation' in check, the did it come into effect only after the quelling open policy can hardly be implemented." of the anti-government rebellion in Beijing last At the 12th Party Congress held in Septem• year. Rather, it has been repeatedly stressed ber 1982, the four cardinal principles (adher• since the Third Plenary Session of the 11th ence to the socialist road, to the Communist Party Central Committee in December 1978; it Party's leadership, to the people's democratic was actually adopted at the same time as the dictatorship and to Marxism-Leninism and policy of reform and opening to the outside Mao Zedong Thought), with Party leadership world. To oppose bourgeois liberalization at the core, were reiterated and the nation was means to oppose the rejection of the socialist urged to criticize and check the tendency to• system and the adoption of the capitalist sys• wards bourgeois liberalization and strike hard tem. at criminal activities against socialist construc• tion. Some Misunderstandings In September 1986, a resolution adopted at Here are some misconceptions concerning the Sixth Plenary Session of the 12th Par• China's criticism of bourgeois liberalization ty Central Committee expounded the guid• that call for clarification.

BEIJING REVIEW, FEBRUARY 12-18,1990 IS CHINA First, some say that the struggle indicates a least designed to stop economic and technical change or a retrogression in China's policies. exchanges with the Western countries or to keep foreign capitalists from investing in The quotations given above show that it is China. China's consistent policy to uphold the four General Secretary Jiang Zemin of the Cen• cardinal principles while combating bourgeois tral Committee of the Chinese Communist Par• liberalization. China has always emphasized ty reiterated, in his speech delivered at a meet• the importance of opposing bourgeois liberali• ing to celebrate the 40th anniversary of the zation and will continue to do so in the future. People's Republic of China, that in China, "the Only those who want to four cardinal principles are the foundation of change this policy advocate our state, and the reform and opening up to the "liberalization." They talk outside world are the road to its strength and about reform and opening prosperity" (Beijing Review, issue No. 41, 1989, ppositwn to to the outside world but say p. 15). o China extends a sincere welcome to foreign ''liberalization" in nothing about the struggle against bourgeois liberaliza• business people who come for investmant and China is not in the tion or about the four car• other forms of business, for co-operation and least designed to dinal principles. Therefore exchange on the basis of equality and mutual stop economic and opposition to "liberaliza• benefit. Our effort to root out corruption and technical tion" actually means oppos• profiteering by government functionaries, to exchanges with the ing a change in China's cur• eliminate tax evasion and to establish a fair and rent policies. equitable market order can only help improve Western countries Second, the criticism of the investment environment for foreign busi• or to keep foreign bourgeois liberalization is nesses. We are also wiping out pornography, capitalists from sometimes seen as contrad• drug trafficking and prostitution—vices which investing in China. icting the policy of opening are also despised by the general public in the to the outside world. capitalist world. In fact, such criticism is Fourth, the struggle against bourgeois liber• alization is sometimes mistaken for "suppres• designed precisely to ensure better implementa• sion of democracy." tion of the policy of reform and opening to We always maintain that there are two types the outside world. There are two different ap• of freedom and democracy. One is bourgeois proaches to the policy of reform and opening to freedom and democracy which belongs to a the outside world. While the Chinese Party and small minority of people. The other is socialist government see the policy as a means of im• freedom and democracy for the vast majority. proving the socialist system and accelerating What we need is the latter, not the former. In socialist development, those who long for "lib- present-day China, the people already enjoy erahzation" want to replace socialism with cap• extensive rights to freedom and democracy that italism. The reason why China has achieved are free from control by capital, and we are universally recognized successes over the last working to expand such freedom and democra• decade is exactly her adherence to the four cy still further. By opposing bourgeois liberalir cardinal principles and rejection of bourgeois zation, we are safeguarding the people's rights liberalization while carrying out reform and to freedom and democracy. We are keenly opening to the outside world. It is a pity that aware of the importance of democracy. As the vigour of the struggle has been affected by Deng Xiaoping says, "Without democracy interference from time to time, which prevent• there can be no socialism and no socialist mod• ed the nation from achieving more. ernization" ("Uphold the Four Cardinal Prin• Third, China's opposition to bourgeois liber• ciples, Selected Works of Deng Xiaoping, p. alization has given rise to worries that foreign 176). The continuous expansion of the scope of business people may not want to have economic democracy is a salient feature of the reform of exchange and co-operation with China. the political system in China. As stated above, by bourgeois liberalization Fifth, some people are afraid that opposition is meant the negation of the socialist system to bourgeois liberalization will give intellec• and the adoption of a capitalist system in tuals a hard time. China. Opposition to such "liberalization" in This fear seems to take it for granted that the China has nothing to do with the capitahst intellectuals in China are for "liberalization." system in foreign countries. And it is not in the If this were true one could hardly explain Chi-

16 BEIJING REVIEW, FEBRUARY 12-18,1990 CHINA

na's enormous successes in socialist revolution water and vice versa—none may encroach and construction, especially during the decade upon the precincts of the other."' that has just passed. Such achievements would These words are a clear indication that op• have been impossible without the support and position to "liberalization" on the Chinese participation of the intellectuals. mainland has nothing to do with the policy In fact, only a tiny number of intellectuls of "one country, two systems" towards Hong advocate bourgeois liberalization, while the Kong and Macao. Socialism for the mainland, vast majority are for socialism and reject the capitalist road. Together with the workers and capitalism for Hong Kong and Macao—this is farmers, China's intellectuals have long been a precisely the true sense of basic force counted on by the Party and the this policy. government. Since the Third Plenary Session of Long-Term Struggle the 11th Party Central Committee held towards combat the end of 1978, the Party and government China's struggle against have attached greater importance than ever ' 'liberalization'' bourgeois liberalization has before to the role of intellectuals. As General an important bearing on the means to oppose Secretary Jiang Zemin put it, "Without know• the rejection of the ledge and intellectuals, it would be impossible future and destiny of the to build socialism" ("Speech at the Meeting in Chinese nation and the Peo• socialist system Celebration of the 40th Anniversary of the ple's Republic of China, on and the adoption of Founding of the People's Republic of China," whether we can preserve a capitalist system September 29, 1989, Beijing Review, issue No. the fruits of revolution for 41, 1989, p. 15). which so many martyrs on the mainland; it The Party and the government have reso• shed their blood and laid is not at all lutely carried out the principle of "respecting down their lives and on directed against knowledge and respecting talents" and thus whether the socialist cause the capitalist won the support of the great majority of the pioneered by the proletar• intellectuals. This was one of the reasons why ian revolutionaries of the system practised in the anti-government rebellion last year was put older generation can be car• Taiwan, Hong down so quickly and the situation returned to ried through to the end. Let Kong and Macao. normal so soon. no one have the illusion Sixth, there are also people who think that that China will make any the struggle against "liberalization" contradicts concession on so great an the policy of one country, two systems. issue. It is China's unswerving policy to realize the However, the struggle against "liberali• reunification of Taiwan, Hong Kong and Ma• zation" is bound to be a protracted one. As cao with the mainland in accordance with the Deng Xiaoping has said, "This struggle will run concept of one country, two systems. To com• through the entire process of modernization. It bat "liberalization" means to oppose the rejec• will be carried on during this century and will tion of the socialist system and the adoption of continue into the next century. Because the a capitalist system on the mainland; it is not at struggle will be so protracted, we will not all directed against the capitalist system prac• launch any campaign but will devote our major tised in Taiwan, Hong Kong and Macao. efforts to education. Hence the process is not Chinese leaders have repeatedly stated that only one of struggle but also one of persuasion they will not export socialism from the main• —but we cannot finally convince those who do land to Taiwan, Hong Kong or Macao. But they not believe in socialism until we have built up have also asked people in these regions to re• the country" ("Educating Our Young People in frain from any attempt to change the socialist system on the mainland. Chinese History," February 18, 1987). During a recent meeting with journalists When China has steadily achieved the stra• from Hong Kong, Party General Secretary tegic goal for her development, when her social• Jiang again stressed that after 1997, interior ist system has almost been brought to perfec• China and Hong Kong will follow the policy of tion through reform, when this system has fully one country, two systems. "You practise your displayed its superiority over capitalism—that capitalism, and we maintain our socialism," he will be the time when there is hardly any mar• told his guests, "so that, as the saying goes, 'the ket for the ideas of bourgeois liberalization, well water does not interfere with the river which cannot but wither away. •

BEIJING REVIEW, FEBKUARY 12-18, 1990 17 CHINA

Trairie Fire Programme'' Trains New Farmers by Our Staff Reporter Cui Lili The goal of this rural education programme is to help Chinese farmers modernize their farming methods. Its success over little more than a year's time has convinced economists that its wide implementation will bring about significant improvements to the rural economy within a few years—Ed.

iwo years ago, scores of 80 percent of the Chinese popu• siasm, which greatly exceeds the county-level, secondary lation, with a comprehensive, ge• programme designers' initial ex• T technical schools in rural neral education through the pri• pectations. Hunan Province began a new mary and middle school level, special course of study. During followed by special adult techni• Orientation of a three-year, 12-course pro• cal training, in 15 years or less. Rural Education gramme, students focus on sev• The idea behind the programme en subject areas including crop is that farmers with a solid Providing good rural educa• growing, breeding and agricul• general educational background tion, though of central concern tural processing and manage• are more comfortable in making to the Chinese government be• ment. After completion of their use of new scientific and technol• cause of its fundamental import• studies, the students are required ogical methods. ance to rural development, has to return to their hometown and The programme was first tried always been a difficult under• put their newly learned skills in a few counties and townships taking. The "prairie fire pro• into practice. By the end of 1989, in September 1988, and has now gramme," however, is the latest some 10,000 people had under• spread to 786 counties and 2,870 and most highly regarded effort gone training in Hunan Prov• townships in 29 provinces, mun• in this regard. ince alone, while rural secon• icipalities and autonomous re• In the last 40 years, more than dary technical schools in more gions. Its success is, in part, ev• 150 million rural people have re• than ten other provinces and au• idenced by the farmers' enthu- ceived a middle and high school tonomous regions The Farmers' Secondary Technical School in Ynanjiang County, Hunan level education, the have begun or are Province, now teaches how to cultivate ramie. LIU QUANJU number increasing planning to begin annually by 10 rail- similar programmes. lion. Of all counties The programme nationwide, 66.8 is dubbed "prairie percent or 1,368 fire" perhaps be• have brought about cause of the late popular, compulsory Chairman Mao Ze• primary school edu• dong's famous say• cation. ing, "A single spark This progress is can start a prairie obviously signifi• fire." Sponsored by cant, especially if the State Education one compares it to Commission, it en• the former situa• deavours to provide tion when the over• most rural people. whelming majority

18 BEIJING REVIEW, FEBRUARY 12-18, 1990 DOCUMENTS Decision on Further Improving the Economic Environment, Straightening Out the Economic Order, and Deepening the Reforms (Excerpts)

(Adopted at the Fifth Plenary Session of the 13th Central Committee of the on November 9,1989.)

At the Fifth Plenary Session of the 13th all fields; and profound changes have taken Central Committee of the Communist Party of place throughout the country. This is the main• China (CPC), earnest discussion and serious stream in China's historical development. At analysis of the nation's economic problems re• the same time, many problems and difficulties sulted in unanimous agreement that firmly con• have arisen in the course of economic advance. tinuing the policy of improving the economic We should fully recognize the seriousness of the environment, straightening out the economic existing problems and find their causes so as order and deepening the reforms is the basic to further enhance our awareness and resolve way to solve the existing economic problems while readjusting the economy. and to guarantee a sustained, stable and co• 2. The current economic problems have been ordinated development of the nation's econo• accumulating over several years. Only by realiz• my. Accordingly the following decision was ing this can we deeply understand the need for the drawn up and adopted. present economic readjustment and the arduous- ness of the task. The problems confronting us are mainly manifested in the obvious worsening I. Achieving Throughout the Party of inflation, imbalance between supply and de• a Uniform Understanding of the mand, an irrational economic structure, and Current Economic Situation economic disorder. These are not new occurr• ences of the past couple of years but represent 1. We should recognize the achievements but a concentrated expression of deep-seated prob• realistically size up the problems as well. The lems which have piled up over several years. main thing for Party leaders at various levels to The main problems are: guard against is underestimation of the difficul• —Total social demand has far exceeded total ties. In the decade since the Third Plenary social supply. The country's available resources Session of the Uth Central Committee of the and social productivity can no longer sustain CPC in 1978, we have upheld the four cardinal the tremendous scale of construction and exces• principles and implemented a policy of reform sive consumer demand. Between 1984 and 1988 and opening to the outside world with economic national income increased 70 percent (or 149 construction as the center. As a result, the na• percent if calculated according to current quo• tion's economy has experienced a sustained de• tations) while total capital investment in fixed velopment; its economic strength has increased assets increased 214 percent and the cash in• remarkably; the life of residents in both urban come of urban and rural residents went up 200 and rural areas has improved a great deal; percent. The increase in both investment and tremendous achievements have been made in social consumption is largely sustained by

I DOCUMENTS draining our accumulation, deficit financing, the national total. Similarly, the share of for• the excessive issuance of banknotes, domestic eign exchange controlled by the various prov• loans and the use of foreign exchange reserves. inces, autonomous regions and municipalities The country's internal debt amounts to more also dwindled. Materials for centralized distri• than 80 billion yuan and a repayment peak is bution decreased in terms of both variety and approaching. The amount of money in circula• quantity. As a result of decentralization in the tion far exceeds the needs of economic growth. control of financial and material resources, the This situation must not be allowed to continue. state has not been able to curb the inflated —A serious disproportion exists between in• demand, or readjust the deteriorating structure, dustry and agriculture. Agriculture can no lon• however much it wanted to, while production ger support the excessive scale of industrial and construction of ordinary processing indus• production. A slow agricultural growth rate tries increasingly overlapped, and it became over the last few years, marked by a four-year even more difficult to undertake key projects or stagnation in grain production, has combined reinforce the weak sectors. with a population increase to account for a drop —The phenomena of high consumption ver• in per capita grain yield to 365 kilograms. Cot• sus low efficiency, big investment versus small ton output has also decreased by a wide margin. returns, enormous expenditure versus poor per• On the other hand, industry has undergone an formance, accompanied by appalling waste, are over-rapid growth on a snowballing scale. Par• widespread in production, construction and ticularly noteworthy is the fact that in many circulation. Many enterprises have become a rural areas, water conservancy facilities have heavy burden on the state's finances due to fallen into disrepair or have even been dam• their sub-standard products, rising consump• aged, large tracts of farmland have been put to tion of materials, and increased costs and defi• other uses, too much of the rural labor force has cits. As too many projects have been start• been switched prematurely to non-agricultural ed, the scale of capital construction is over• pursuits, and investment in land by the state, extended and many of the projects have failed collectives and farmers has decreased. With a to go into production on schedule, tying up weak foundation and inadequate reserves, Chi• immense amounts of funds and materials for na's agriculture is in a grave situation. too long. This situation is fatal to the nation's —The basic industry, the infrastructure and economy and is the main cause of the present the processing industry are seriously out of economic difficulties. balance. Energy and raw material supplies, 3. The Party Central Committee and the State transport and communication facilities are un• Council bear major responsibility for the diffi• able to support the over-extended processing culties and problems which have arisen in the industry. Nation-wide shortages in coal, power, economic life of our country, and it is necessary oil and steel have long left idle vast numbers of to draw profound lessons from our experience. industrial production facilities. Transport and Since the Third Plenary Session of the 11th communications have fallen far behind in de• Party Central Committee, the Party Central velopment, and limited transportation capacity Committee and the State Council, while imple• has strained freight and passenger services. menting the correct line, principles and poli• —Inordinate decentralization in the distribu• cies, have also committed errors in the specific tion of funds, foreign exchange and materi• guidance they gave to economic construction als has seriously weakened the state's macro- and to the reform and opening to the outside control powers. The distribution of national world. They failed to take timely and decisive income has tilted too far towards enterprises measures to solve such problems as an over• and individuals, while funds and materials con• heated economy, the excessive issuance of cur• trolled by the state have been dwindling. From rency and the excess distribution of national 1984 to 1988, the state revenue dropped, in income, which began to surface in the latter proportion to national income, from 26.7 per• half of 1984. Though the Party Central Com• cent to 22 percent, and the financial revenue of mittee and the State Council put forward, in the central government dropped, in proportion 1987, a policy of retrenchment for finance and to national income, from 56.1 percent to 47.2 credits, it was not implemented thoroughly, re• percent. Foreign exchange controlled by the sulting in the emergence of more and more central authorities made up only 40 percent of problems. In recent years, we have been over-

II DOCUMENTS optimistic in our evaluation of the situation not carried out effectively. Limited by time, we in the countryside and have not effectively have not been able to solve many in-depth stopped the unbridled development of the pro• problems in the national economy. We have not cessing industry; we have neglected to exercise yet bridged over the difficult phase. necessary and an appropriate degree of central• The process of economic readjustment has ization in our effort to revamp an economy that recently been accompanied by a sluggish mar• had suffered from overcentralization and too ket, the slowing down of sales for some enter• much control; and we have neglected compre• prises and a sharp fall in industrial growth. hensive balancing and the strengthening of While this situation is on the whole conducive macro-control while emphasizing invigoration to readjustment, it also produces some negative in a microeconomic sense. We have also shown effects which call for serious study and concrete impatience for success in both construction and analysis and must not be ignored. On the one reform due to our lack of a comprehensive, hand, we should grasp favorable opportunities deep understanding of the country's conditions to increase the enterprises' economic efficiency and a sober estimation of the country's strength. and improve their performance by turning the These problems in economic work are connect• market pressure on them into a motive force ed with the weakening of the Party's leadership and actively adjusting the economic structure. and ideo-political work. The responsibility for On the other hand, necessary macro-guidance all this does not lie with the grassroots depart• must be provided to actively develop domestic ments. The Party Central Committee and the and international markets, increase effective State Council should seriously draw lessons, do supply, and ensure the stable development of more investigation and stick more to the mass the economy. line so as to make their decisions as correct and Economic stability is the foundation of polit• scientific as possible. ical stability. If the economy remains in diffi• 4. We have achieved initial success in improv• cult straits for long, the political situation can ing the economic environment and straightening not be stablized, nor can social stability be out the economic order. We must seriously study maintained. Our effort to improve the econo• the new situations and solve the new problems mic environment and straighten out the econo• and thus deepen our efforts. The decision adopt• mic order must be deepened, and there must be ed at the Third Plenary Session of the 13th no wavering on the implementation of the prin• Party Central Committee to improve the econo• ciples for this effort. mic environment and straighten out the econo• 5. We should fully understand the favorable mic order is a correct one. After a year's effort, conditions for overcoming difficulties and in• the excessive rate of industrial development has crease our confidence in improving the economic been slowed down; better harvests have been environment and straightening out the economic brought in; investment in fixed assets has been order. We are facing serious economic difficul• brought under control to a certain extent; price ties, but they are, after all, temporary difficul• increases have tended to relax; the withdrawal ties that have arisen in the course of develop• of currency from circulation has been relatively ment, and are entirely surmountable. Over the effective; and the whole economy continues to past decade of economic development and re• advance in the course of readjustment. The form, the economic strength of our country has State Council's whole series of policies, focused been greatly enhanced and the people's lives on controlling demand and adjusting the econo• have markedly improved; the year-long read• mic structure, have played an active role in all justment has provided us with some experience this. However, the Third Plenary Session of the and we have made a good beginning; the re• 13th Party Central Committee, limited by the cent victory in stopping turmoil and quelling a prevailing circumstances, did not analyze tho• counter-revolutionary rebellion and the convo• roughly enough the problems and difficulties in cation of the Fourth Plenary Session of the 13th economic life and their causes. As a result, Party Central Committee have brought about a people in quite a few departments, units and political situation of ideological agreement and regions lacked a full understanding of the ne• enhanced unity in the whole Party. These are cessity, urgency and difficulty of improving the favorable conditions for overcoming difficul• economic environment and straightening out ties. Fear of difficulties, pessimistic ideas and the economic order and many measures were inertia are all unjustifiable. As long as we face

in DOCUMENTS up difficulties, draw the proper lessons from croeconomic control system that operates in experience, pull ourselves and work in unity, line with the principle of combining a planned we will surely accomplish the task of readjust• economy with market regulation, and that fa• ment and set the economy on a course of long- cilitates the comprehensive use of economic, term and stable development. administrative and legal means. 8. We must grasp four important links for improving the economic environment and straigh• II. The Duration and Goals tening out the economic order. of Economic Readjustment 1) Continued efforts should be made to cut the total social demand, so as to eliminate the 6. Three years or a somewhat longer time are problem of earmarking an excessive portion of needed to basically complete the task of improv• the national income for consumption. ing the economic environment and straightening 2) Vigorous efforts should be made to adjust out the economic order. Since the existing prob• the structure of industry, increase effective sup• lems and difficulties are numerous and hard to ply, and build up the reserve strength for future cope with, we cannot hope to achieve quick economic development. results in a short time. The Party Central Com• 3) Effective steps should be taken to straigh• mittee has decided, in three years or more, to ten out the economic order by overcoming the gradually resolve the contradiction of total so• serious confusion in the realms of production, cial demand exceeding total social supply, grad• construction, circulation and distribution. ually bring down inflation and set the national 4) The campaign for increasing production economy on the track of stable and coordinated and practising economy, and for increasing development so as to lay a sound foundation for revenue and cutting expenditure should be achieving the strategic goal of quadrupling the deepened to vigorously raise the economic effi• gross national product by the end of this cen• ciency in all fields. tury. What we must stress is that, in the course 7. The major objectives of the economic read• of improving the economic environment and justment are: straightening out th6 economic order, educa• —Gradually lower the inflation rate and tion, science and technology must be accorded keep the increases in the national consumer a strategic position and priority for develop• price index under 10 percent a year. ment. We must strengthen the construction of —Put an end to the situation in which the and education in national defense, control po• issuance of currency exceeds the economic pulation growth strictly and strive to raise the growth rate and gradually achieve, on a yearly quality of the population, make rational use of basis, a compatibility between the amount of resources and protect the ecological environ• currency issued and the rational needs of eco• ment. nomic growth. 9. During the period of economic readjustment —Strive for a balance between revenue and and after this task is completed as well, China expenditure and gradually wipe out financial must at all times pursue the principle of a long- deficits. term sustained, stable and harmonious economic —Maintain an appropriate economic growth development. In the process of developing Chi• rate, that is, an average annual growth rate of na's economy, we have learned a most impor• 5-6 percent in the Gross National Product, on tant lesson in the past 40 years: losing sight of the basis of an intensified effort to raise econo• the nation's conditions; transcending the na• mic efficiency, economic quality and the scien• tional strength; and being impatient for success, tific and technological level. all of which caused ups and downs in econo• —Change the irrational industrial and agri• mic development. Such mistakes in the guid• cultural structure, and striye for a gradual in• ing principle were crucial problems in China's crease in the supply of major agricultural economic work as they dampened the enthu• products and for the gradual alleviation of the siasm of the masses and often caused enormous shortage of energy and raw materials and the losses. Therefore, during the period of econo• inadequacy of transport. mic readjustment as well as after this task is —Further deepen and improve the various completed, we must keep these lessons in mind reform measures and gradually establish a ma- and must at all times proceed according to the

IV DOCUMENTS country's basic circumstances, pursue the prin• the investment structure. Local governments ciple of a long-term sustained, stable and har• and policymakers in various trades and profes• monious development, and refrain from any sions should assume more responsibility in so one-sided pursuit of high speed of development. far as the construction of basic industry and And in economic matters priority should al• infrastructure is concerned. ways be given to the constant improvement of 12. The excessive rise in consumer demand efficiency. must be checked. The erroneous practice pre• vailing in recent years of blindly advocating high consumption must be corrected to keep the III. Continuing to Control Social increase of consumption funds below that of the Demand, Finance and Credit national income and labor productivity. Funds for wages and salaries should be better man• 10. Resolute control of total social demand aged; in particular, private incomes other than remains the most important task during the salaries and bonuses should be strictly con• further readjustment. Basically, the problems trolled; indiscriminate distribution of bonuses and difficulties in the national economy result and articles and unauthorized increase of allow• from the continual excess of total social de• ances and subsidies should all be prohibited; mand as compared with total supply over many and the method of linking an enterprise's total years, and from the distribution of national volume of wages with its economic efficiency income beyond a reasonable quota. Without a should be improved and perfected. Institutional firm resolution to reduce social demand and purchasing power will also be curtailed and enforce austerity measures for a few years, it purchases of controlled or uncontrolled goods will be hard to solve problems like improving must be restrained. Basically, all government the economic setups, rectifying the economic organizations and agencies must stop buying order and raising efficiency, nor will there be a new equipment. real, solid turn for the better in the national 13. Gradually alleviate the contradiction aris• economy. All Party members should have a ing from an unfair distribution of social wealth. clear understanding of this point. Unfair distribution of society's wealth has be• 11. The total scale of investment will be furth• come a matter of concern for the public in er reduced, and the investment structure will be general and has caused resentment among the strictly readjusted. The central authorities de• laboring people in particular. Full attention mand that the total investment in fixed assets should be paid to this problem and conscien• in 1990 and 1991 remain at the 1989 level or tious efforts should be made to solve it in below. With this as the prerequisite, investment the process of putting consumer demand un• in ordinary projects will be cut down sharply to der control. The wage and bonus systems must allow for the investment needed by the primary be improved to eradicate equalitarianism in the industries. During the period of readjustment, distribution of workers' income. Concrete mea• no construction of non-essential buildings will sures should be taken to strengthen supervision be allowed. In principle, no ordinary projects and control over the incomes of company staff, for the processing industry will be considered, certain moonlighters, private business owners especially those with high energy consumption and self-employed commercial and industrial or dealing in goods that are beyond consumers' households. Illegal earnings should be banned, purchasing power. Construction of major pro• legal incomes protected. A system for reporting jects in basic industry should be arranged taxable personal income should be introduced, whenever and wherever financial and material and measures taken to improve the levying and resources and other conditions permit in order handling of the regulatory tax on personal in• of priority and should not be undertaken all at come. once; priority should be given to projects relat• 14. Adhere to the policy of tightening control ed to agriculture, coal, crude oil, electricity, over finance and credits. This is a fundamental railways and some raw and processed materials measure for reducing total social demand. The industries. Before approval for any new project policy, which has proved effective over the past is granted, normal procedures must be observed year, should not be given up simply because and strictly supervised. A tax will be levied on some enterprises are short of funds. Flexible investment to direct the investment flow, and measures may be adopted to overcome the shor• different tax rates will be employed to improve tage of funds for some key projects in the

V DOCUMENTS interest of a stable growth in production. The opment of agriculture is the basis for economic, measures, however, must not be used to expand political and social stability. It is vital to the the scale of capital construction or increase security of the country and the key to economic consumption funds. restructuring. A vigorous campaign to emphas• —Efforts should be made to cut expenditure ize, support and develop agriculture should be while increasing revenue. Measures should be launched immediately within the Party and adopted to strengthen tax collection, especially across the country so that concerted efforts can from collectively-owned and privately-owned be made to boost agriculture and guarantee the enterprises and self-employed people. Exemp• steady increase of major farm products such as tion and reduction of taxes not in accordance grain and cotton. The all-round development of with the industrial policies of the state must agriculture, forestry, animal husbandry, fish• be eliminated. By adopting appropriate poli• ery, and side-line occupations should be prom• cies and transitional measures, we should grad• oted. ually transfer some funds not in the budget into budget receipts so as to enlarge the proportion —Party committees and governments at the of state revenue in the national income and of central, provincial, prefectural, city and county the revenue of the central government in total levels must put agriculture high on their agenda state revenue. Except for the defense expenses, and carry out the principle of taking agricul• key project construction funds, and necessary ture as the foundation of all economic work. price subsidies, other expenses within the next Those at the provincial level should strengthen two years will remain largely at the 1989 level. their leadership in agriculture. Provinces im• Some expenses, especially operating and admin• porting grain from other parts of the country istrative expenses, will have to be less than the must work out plans to steadily increase self- 1989 figures. Organizations which are repetitive efficiency in grain. Party organizations and and of no great importance, including some governments at the prefectural and county lev• administrative setups and some of the academ• els should devote their major efforts to the ic societies, association and centers, must be development of agriculture, especially grain streamlined or dissolved and the size of their and cotton production. Whether the output of staff cut down. grain, cotton and other farm and side-line prod• —The central bank must keep the cash flow ucts has been increased, and whether agricul• and the scale of credits under its tight control. ture has gained strength for further de• The total sum of new loans and the currency velopment will be set as the major criteria supply for 1990 will basically remain at the for evaluating the work done by Party commit• 1989 level. In accordance with the industrial tees and governments at the provincial, prefec• policies of the state, new loans will be granted tural, city and county levels. by giving priority to key industrial sectors, pro• —Input for agriculture originating from var• jects, products, and enterprises. Storage facili• ious fields of endeavor should be increased. The ties must be cleared and the inventories put to central government will increase investment in use in order to avoid tying up funds unneces• agriculture year by year within its budget sarily. Enterprises must not increase their own for capital construction. Local governments circulating funds beyond the proportion speci• at provincial, prefectural, city and county levels fied in the regulations. The cash flow must be should allocate as much of their reserve funds strictly controlled. More effective steps must be as possible to agriculture production. Township taken to clear debts and collect payments and enterprises, after paying their taxes, should to minimize the circulation of funds beyond the gradually increase the portion of their profits channels of the banks. for subsidizing agriculture. The major channel for increasing agricultural input lies in encour• IV. strengthening Agriculture and aging the farmers to invest more in farming and the Other Basic Industries and to increase their accumulated labor in the form of irrigation and other farmland improvement Readjusting the Economic projects. It is imperative to organize the farm• Structure ers into a sustained drive to build those farm• 15. The whole Party and the nation should he land capital construction and water conservan• mobilized to run agriculture well. A stable devel• cy projects that dan yield tangible results. All

VI DOCUMENTS households should be encouraged to collect and sibility system based mainly on households use farmyard manure to increase soil fertility. should be maintained and improved. Networks The construction of pastoral areas should be for production and scientific services during stepped up and animal husbandry should be the whole farming process should be established vigorously developed. In light of their specific or completed. The dual operation system com• needs and local conditions, governments at all bining centralization with decentralization, by levels should draw up and earnestly carry out which the farmers sell their produce to the state plans for the construction of water conservancy and also market in on their own, should be projects, the development of agricultural re• improved in order to promote the development sources, the transformation of medium and of the rural commodity economy. In areas low-yielding farmland, and the expansion of where the conditions are suitable, scale opera• agriculture and poultry farming, the promotion tion may be developed voluntarily by the farm• of farm mechanization, afforestation, as well as ers to an appropriate degree for the develop• construction of rural highways and other facil• ment of a new collective economy. State-run ities. farms should be further improved. —Advanced and practical agricultural —While going all out to develop agriculture, the nation should continue to conscientiously science and technology should be popularized. carry out the basic state policies of family plan• Agrotechnicians should be encouraged to go to ning and farmland protection. Efficient mea• the countryside and concentrate their efforts on sures should be taken, and a quota system insti• promoting certain highly effective techniques tuted to control the birth rate so as to remedy for improving crop strians, cultivation and fer• the situation of the past few years in which tilizer application which cost little money but birth control was loosened and population help increase production noticeably. At the growth was out of control in rural areas. Land same time, more should be done to train farm• resources should be protected and reclamation ers in scientific techniques. Governments at all should be carried out in a planned way. The levels should give full support to this effort in practice of indiscriminately diverting farmland terms of funds, materials and technical person• for other uses must be strictly forbidden. nel. 16. We should maintain a steady growth of the —All trades and professions should energeti• production of energy and major raw and pro• cally support agriculture. Relevant departments cessed materials, and strive to improve transpor• of the State Council and local governments tation efficiency. In the coal industry, priority should attach great importance to the develop• should be given to better management of the ment of the industries manufacturing agricul• mines subject to unified state allocation of their tural means of production. In allocating funds output. Production in the eastern area should and arranging the supply of energy and raw be stabilized while coal mines in the central and materials, priority should be given to the prod• western areas are to be developed. Meanwhile, uction of chemical fertilizer, pesticides, plastic efforts should also be made to build and devel• sheeting and farm machinery. Industries prod• op local mines. The production of crude oil and ucing materials for farming should strive to the output of electricity should be increased meet the production and supply quotas fixed in steadily. The iron and steel, nonferrous me• the state plan. The method of placing some tal, chemical and building material industries agricultural means of production under special should actively readjust their product mix, turn control will be perfected and continued. out more products in short supply and im• —To promote agricultural development, the prove product quality. The transportation de• state will, where necessary and possible, grad• partments should raise their overall efficiency ually readjust the purchasing prices for impor• by enlarging the traffic-handling capacity of tant agricultural products in a planned way so the "bottleneck" sections of railways and tap as to balance the comparative returns in the the potentials of available facilities. Highway, rural economy and encourage farmers to prod• waterways and aviation management should uce more grain and cotton. also be improved to render well-coordinated —We should carry on with the rural reform service and increase transport efficiency. Com• and uphold rural policies than will remain un• munications will be further developed. changed for years to come. The contract respon• —To increase the production of energy and

VII DOCUMENTS raw materials, expand transport capacity and restructure the setup in these fields, it is essen• ines and implements geared to actual needs. tial to involve the staff members and workers —All departments and localities should, in in these departments in an effort to fully tap accordance with the requirements of readjust• the potential, increase production and practice ing the processing industry and the criteria set economy. In the mean time, proper measures for judging economic efficiency, work out a will be taken in terms of investment, loans and catalog of products whose production shall be supplies to help key enterprises in these depart• limited, stopped or guaranteed. As to goods ments alleviate difficulties in production and whose production has been banned or suspend• management. ed by government decrees, banks should stop —While doing a good job in increasing prod• extending loans, power departments should uction in energy and raw materials and improv• cut off the supply of electricity, supply depart• ing transportation, we have to further conserve ments should withhold supplies of fuel and raw energy, raw materials and transportation capac• materials, and transport departments should re• ity. People in all areas should be urged to fuse to provide services. In view of the redun• economize on the use of coal, electricity, oil, dant production in the processing industry and raw materials, water and transportation capac• the shortages of energy and raw materials, publ• ity. ic bidding will be conducted among localities 17. Major efforts should be devoted to read• and enterprises for the provision of supplies for justing the processing industry and overcoming major production projects so that the stronger blind development. A major task in economic competitors will get the business while the restructuring is to bring the growth of the pro• weaker ones will be the losers. cessing industry in line with that of agriculture, 18, We should give full play to the role of big the other basic industries and the infrastructure and medium-sized state-run enterprises as the and adapt it to changes in market demand. In backbone of the national economy. It is neces• curtailing the processing industry, the emphasis sary to foster the understanding that only by will be laid on 1) the overlapping production of running well the big and mediumn-sized state- ordinary goods marked by a low technical level owned enterprises can the overall economic si• and a high rate of consumption of energy, raw tuation be stablized, the economic strength of materials and foreign exchange; 2) trades and the nation strengthened and modernization products that serve no purpose but to boost realized gradually. Bearing this idea in mind, consumption and induce people to buy more we should work in real earnest to free these than they can afford to. Simultaneous efforts enterprises from their worries and help them should be made to continue the technological achieve progress. transformation of existing enterprises, improve —All big and medium-sized enterprises must the organizational structure of these enterpris• put themselves on a sound basis by improving es, give full play to the great potential of enter• their management, raising their own quality prises in machine-building, electronics and de• and that of the workers, bringing the initiative fense industries, turn out more products that of the staff and workers into full play, carrying will effectively augment supply, and increase out technological transformation and innova• the output of goods which can earn foreign tion, and increasing economic results through currency through exports or serve as import managerial and technological improvements. substitutes. They should also strengthen their ability in —The light and texile industries should grad• acting as their own bosses, bearing the respon• ually change their product mix according to the sibility for their profits or losses, seeking varying demand and purchasing power of ur• self-development and restraining themsevles ban and rural residents, with due attention paid whenever necessary. This is the key to enabling to developing goods for daily use in the rural these enterprises to play their role as the back• areas. The machine-building and electronics in• bone of the national economy. dustries should develop complete sets of equip• —Each industry should put its enterprises ment and basic components necessary for prod• into different categories according to their qual• uction in the fields of energy, raw materials, ity. It is required to come up with a list of transport and telecommunications; they should enterprises, which will be given priority in the also increase the manufacture of farm mach• supply of energy, raw materials, transportation facilities and funds.. This should be done in VIII DOCUMENTS compliance with the state's industrial policy, in lines enterprises marked by a high rate of ener• light of the availability of energy, raw materials gy consumption, low product quality and ser• and shipping capacity, and on the principle of ious pollution problems, and those enterprises a rational distribution of resources according to which are poorly managed but tend to scramble the economic efficiency of the enterprises. It with large enterprises for energy and raw ma• is impermissible to misappropriate the funds, terials. Structural improvement should be made energy and raw materials earmarked for back• among rural enterprises through economic bone enterprises. readjustment and consolidation, so as to re• —Firm steps will be taken to stop the practice vamp their management, update their tech• of forcing enterprises to pay unnecessary fees or nology and increase their efficiency. make monetary contributions unreasonably ap• 20. Developing a variety of economic sectors portioned to them. This will reduce their finan• on the premise of adhering to public ownership as cial burden and create better conditions for fair the mainstay. In China, the economic sectors competition among them. under individual ownership and private owner• 19. Active guidance should be given to town• ship are a helpful and necessary supplement ship enterprises for their healthy development on to the socialist economy. Better administration the principle of readjustment, consolidation, re• and guidance should be provided through eco• molding and improvement. Since the Third Plen• nomic, administrative and legal means to en• ary Session of the Uth Party Central Com• courage their continued development within mittee in late 1978, township enterprises have made major contributions to supporting agri• the scope prescribed by the state. Thus the culture, solving the employment problem, individual and private sectors will be able to promoting economic prosperity, increasing peo• play its due role in developing social produc• ple's income and earning foreign currency tion, bringing more conveniences to the people through exports. They have become an impor• and creating jobs. At the same time, the nega• tant pillar of the economy in the rural areas and tive aspects of these sectors detrimental to so• also an important component of the national cialist economic development should be res• economy. As township enterprises developed, tricted. however, problems also arose, such as poor 21. More support should be given to economic product quality, a low level of management, development of the former revolutionary bases, poor economic results and competition with minority nationality areas, remote places, and large and medium-sized key enterprises for raw poor districts. In the process of economic read• materials and energy. These problems should be justment, supportive policies should be contin• solved in line with the principle of readjust• ued to help these areas develop production and ment, consolidation, remolding and improve• strengthen their ability to make themselves ment, step by step and in a planned way. prosperous by their own efforts to gradually —As township enterprises develop, they overcome their backwardness. should 1) be based on the processing of agricul• 22. Wide opportunities should be opened up for tural and side-line products and local raw ma• employment and appropriate arrangements made terials, instead of scrambling with large enter• for job seekers. Along with the retrenchment of prises for raw materials and energy; 2) bring the investment scale and readjustment of the their advantages into full play in labor- industrial setup, some projects will be stopped intensive and traditional handicraft prod• and some enterprises will be closed down, sus• uction, actively developing products for export; pended, merged or shifted to other production and 3) serve as adjuncts to major industries. lines. The policy of overall arrangement, social They should be encouraged to develop along relief and personal initiative in seeking employ• the above-mentioned lines under the prerequis• ment should be adopted, and new production ite of developing agriculture on a large scale. fields should be developed in rural and urban —Local governments should make a serious areas in order to create jobs for surplus labor. effort to streamline the township enterprises in This is important for guaranteeing the smooth accordance with state industrial policy by en• progress of economic readjustment as well as an couraging the development of those enterprises important guarantee for social stability. Care• with good returns and closing down, suspend• ful guidance and well-considered arrangements ing, merging or shifting to other production will be necessary for work in this area.

IX DOCUMENTS V. Straightening Out the "double-tier" prices of coal subject to central• Economic Order In Earnest, ized allocation will first be phased out and replaced by a single price, after which more Especially the Circulation Order and more commodities will be brought under a 23. We should proceed further in cleaning up single-price system. As for goods for which and streamlining the companies, especially those "double-tier" prices are difficult to abolish in a engaged in circulation, so as to gradually elimi• short time, the gap between the two different nate the chaotic situation in commodity circula• kinds of prices should be narrowed gradually tion. A breakthrough should be made first in by properly raising the prices governed by state the coal market in 1990. The coal produced by plans, keeping demand under tight control and state-owned mines, coal handed over to the supervising the prices of commodities sold by state by local mines, and coal transported by the producers. rail beyond provincial boundaries in excess of 26. Much more has to be done in market the state plan will be brought under state ad• administration and price control. Departments ministration for centralized distribution, order• handling commerce, the supply of materials ing, transportation and management. No indi• and foreign trade should have a healthy mana• vidual or institution other than those approved gerial philosophy and style, draw up necessary by the state or designated by the departments rules and regulations, forbid illegal sales of concerned may be involved in the coal business. materials and goods in short supply or in great As for the management of other capital goods, demand, and improve their services. Industrial efforts should be made to clean out companies and commercial administration and tax depart• and units engaged in profiteering as middle• ment should be better staffed and the capability men, as well as service companies set up by of their present members should be raised so as productive enterprises to raise ex-factory prices to resolutely crack down on illegal businesses in disguised ways and engage in re-selling at a and ban them altogether. As for commodities huge profit. The intermidiate links designed to whose sales are under thr exclusive control of seek huge profits, disrupt the market and boost departments designated by the state, experience prices must be eliminated. should be summed up in order to improve and 24. The market must be restored to good order. perfect the methods of handling the exclusive All capital goods produced in excess of the state sales. The price control system should be streng• plan and marketed by the enterprises them• thened, price control personnel reinforced, and selves should be sold openly, that is, by making supervision by the public and by the media public the quantities, prices, buyers and meth• tightened. Price gouging must be forbidden. ods of settling the accounts. No individual is Indiscriminate price-raising, raising prices in allowed to engage in the handling of important disguised forms and the shifting of commodi• means of production. All local governments, ties to another place for sale at higher prices departments and units should strictly limit must be stopped. themselves by the price ceilings fixed by the 27. We should firmly curb and correct the state. In the circulation of major consumer wanton charge of fees, compulsary apportion• goods, wholesale business should be handled by ment of financial burdens and unreasonable im• state-run commercial departments and supply position of fines. All these forms of extortion, and marketing cooperatives in order to give full for which various pretexts are used, have grown play to their function as the major channels. No to serious proportions in some departments, individual is allowed to handle long-distance offices, and institutions in the areas of produc• wholesale business. tion, construction and circulation, and have 25. The "double-tier" price system in the mar• caused wide dissatisfaction among the people keting of capital goods should be gradually in urban and rural areas. Effective measures phased out. The "double-tier" system is a tran• should be taken to resolutely curb and correct sitional measure adopted under our country's such practices. No department, office, institu• specific conditions, and its disadvantages have tion or enterprise is allowed to resort to such now become increasingly clear, as it has become extortion on any excuse. Those who act against a hotbed of corruption and economic disorder. this principle will be held responsible and pun• It has been decided that, in 1990 and 1991, ished. All enterprises, institutions and indivi• as part of the price readjustment effort, the duals have the right to refuse to pay the fees

X DOCUMENTS and fines or share the financial burdens im• —In line with the requirement for the imple• posed in violation of state regulations. mentation of the state's industrial policy, large and medium-sized enterprises and research in• stitutions will be organized in an effort to effect VI. Improving Economic Efficiency technical breakthroughs. The items to be tac• by Every Possible Means kled will be chosen from among items of technical transformation in traditional indus• 28. We should shift our economic work to the tries that have an important bearing on the right track by focusing on the increase of econo• nation's economic development, from among mic efficiency. In the process of improving the imported items of technology that are being economic environment and straightening out adapted to China's conditions and from items the economic order, every locality and depart• related to high-tech products, products for ex• ment should adopt the correct guiding ideas port or products intended to be import substi• and take effective measures to rectify the ten• tutes. The purpose is to revamp the traditional dency of placing undue emphasis on the rate of industries, speed up the domestication of im• development, aimlessly expanding the scale of ported equipment and develop high-tech indus• production and resorting to random price in• tries. creases for the purpose of raising income. They —Appropriations for technical transforma• should make big efforts to improve manage• tion should be strictly used for this purpose, ment, raise their scientific and technological including raising product quality, reducing ma• levels, seek high economic efficiency, and take terial consumption and upgrading products; on a course of economic development by which no account should they be spent on the expan• investment is minimized while output and eco• sion of the productive capacity of enterprises nomic returns are maximized. Effective mea• handicapped by low technical levels. sures should be worked out to specify the 30. Enterprise management should be streng• requirements for lowering the costs and the thened and improved. The phenomenon of "sub• consumption of materials and funds, improving stituting contract system for management" the quality of products and increasing product must be overcome. Serious efforts should be variety; these measures should be implemented made to improve all the essential aspects of an at all levels and taken as a major criterion for enterprise's management, including the rules assessing the work done by economic organiza• and regulations concerning quotas, costs, funds, tions at various levels and by various enter• quality control and business accounting; tigh• prises. ten up technical rules and labor discipline; 29. Imroved economic efficiency should be comprehensively raise the quality of the work• based on scientific and technological progress. ers and the enterprise; give full play to the Amidst the vigorous development of the world's employees' enthusiasm; raise labor productivi• new technological revolution, science and tech• ty; increase production at reduced cost; and nology are playing an increasingly obvious and raise economic efficiency by revamping the important role in economic development and management. The principle of "putting safety social progress. The promotion of science and first, with the emphasis on prevention" should technology should be put in a pivotal strategic be carried out to ensure safty in production. position in our efforts to overcome China's cur• 31. Efforts should be made to eliminate defi• rent economic difficulties, ensure a long-term, cits and increase profits. The authorities in var• stable economic development, and accomplish ious localities and departments should draw up the tasks of socialist modernization. plans for eliminating deficits and increasing —In the process of improving the economic profits and further improve the various forms environment and straightening out the econo• of the responsibility system designed to enable mic order, technical resources and research enterprises runnning at a loss to make good funds should be pooled to popularize, on a their losses and earn a profit. They should also large scale, selected scientific and technological earnestly help the trades and enterprises run• achievements which need little investment but ning at a loss so that they can reduce and yield high economic returns. The purpose is to gradually eliminate their deficits by improving effect a general improvement in the enterprises' their management and tapping their potential. productive and technical level. Trades and enterprises making a profit should

XI DOCUMENTS also work hard to eliminate products on which velopment of the reforms and, at the same time, they are losing money and should further in• needs the coordination provided by the reform crease their profits. effort. Secondly, the reforms should be cen• 32. We should carry on in an all-round way the tered on and placed at the service of economic movement for increasing production and prac• readjustment. Finally, neither improving eco• tising economy, increasing revenue and cutting nomic environment * nd straightening out the down expenditure. Waste is a serious problem in economic order nor deepening the reforms is virtually all units in production, construction the end. Both are instrumental for achieving a and circulation, in organizations and institu• sustained, steady and well-balanced economic tions. This shows the great potential for increas• growth. Therefore, the two must not be se• ing production and practising economy, for in• parated, nor should they be set against each creasing revenue and cutting down expenditure. other. Lack of enthusiasm for economic read• All Party and government organs, public organ• justment means apathy towards the reforms. izations, institutions and enterprises should do 34. We should adhere to the socialist orienta• a good job of increasing production and reven• tion of the reforms and clarify the focus of the ue and practising economy, make a thorough current effort to deepen the reforms. The social• investigation of their assets and funds, streng• ist economy in China is a planned commodity then the management of state-owned property, economy based on public ownership. The cur• make every cent count in all spheres of work, rent reform is the self-perfection of the socialist practise strict economy, oppose extravagance economic system. The key to the reforms lies in and waste, eliminate any waste of raw materials the gradual creation of an economic mechanism and fuel through leakage or evaporation, and which combines a planned economy with mar• improve work efficiency. Strenuous efforts ket regulation. The extent, forms and scale of should be made to strengthen auditing and su• such a combination will have to be adjusted and pervision of various kinds of economic activi• readjusted with ever better results in the light ties and to strictly enforce financial discipline. of actual conditions. Delegating more decision• Throughout the socialist modernization pro• making powers to localities and enterprises and cess, the workers and staff must be fully in• allowing them to retain more profits in order to volved in the socialist labor emulation drive energize the economy is a reform; rationally with increasing production and practising coordinating the interests of different quarters economy as its major content, a drive which and perfecting the macro-control system is also should be launched in a protracted and pro• a reform, and the more arduous one at that. found way. During the period of economic The major tasks for the current period of readjustment, this campaign should be carried readjustment include: 1) stabilizing, enrich• out in real earnest. It is of vital importance not ing, readjusting and improving the reform mea• only for overcoming economic difficulties, but sures introduced over the past few years on the also for establishing a clean government, im• basis of combining a planned economy with proving the social moves and maintaining close market regulation; 2) increasing centralization ties between the Party and government and the to an appropriate extent to meet the require• people. ment for more planning in the period of im• proving the economic environment and straigh• tening out the economic order. Such centraliza• tion should be effected to a moderate extent on VII. Deepening the Reforms and the basis of bringing into play the initiative of Opening Wider to the Outside local governments and enterprises; it is by no World means the kind of over-centralization that tends to deny localities and enterprises their decision• 33. We should correctly understand and handle making power; and 3) establishing a macro- the relationship between readjustment and the economic control system which promotes a deepening of reforms. First of all, to improve the stable development of the economy while at the economic environment and straighten out the same time continuing to invigorate the micro- economic order does not mean to hold up or economy. It is expected that the reforms will be even relinquish the reform effort. On the con• put on a sounder footing and will be further trary, the endeavor will provide conditions in- deepened after the economic environment is despensable to the in-depth and healthy de• xn DOCUMENTS markedly improved through readjustment. over to the central authorities by provinces and To deepen and perfect the reforms, emphasis municipalities which are required to do so will will be laid on the following points: be raised somewhat according to their abilities —The contract responsibility system in enter• for the purpose of tiding over the financial prises should be continued because it is good for difficulties in 1990 and remedying the unbal• further arousing the enthusiasm of enterprises anced financial burdens of different localities. and employees for developing production. In In the meantime, special subsidies allotted by the meantime, efforts should be made to ear• the central government to localities will- be cut nestly sum up the experience and by eliminat• down somewhat. ing the drawbacks, continuously perfect the —Reforms in the financial system must favor system. If the base output quotas and the con• unified control. The macro-control of the cen• tracted part of the production task as specified tral bank should be strengthened, and the scale in an enterprise's contract are too small, they of currency issues and the total amount of should be increased appropriately. Local au• credit should be put under tight control. The thorities should looks for diversified forms of central bank will exercise unified leadership the contract system which will correctly handle and authority over all specialized banks. The the relationship between the state and the enter• monetary situation must be further straigh• prises, and try them out step by step under tened out. The illogical overlapping of services proper guidance. The system whereby the direc• among different financial institutions must be tor of a factory assumes overall responsibility ended. Loans should only be provided accord• for its operations should be maintained and ing to the government's industrial policies and improved as well, so that management can be credit plan. The need for banks to be managed strengthened, and reforms advanced in the en• in the manner of enterprises should not be terprises. The leading role of the Party organi• over-emphasized. It is necessary to resolutely zation in an enterprise in political and ideolog• close down or merge financial institutions other ical work should be enhanced so as to give full than banks and trust and investment companies play to the enthusiasm, initiative and creative- run by banks. Private banks including old-style ness of the workers and staff. The Party organ• money shops, must be banned. Reforms in the ization and management should work in close financial system should be brought in line with coordination, and the factory director and the readjustment of the credit structure and the Party secretary should support each other and checking of loans already issued. coordinate their actions in a joint endeavor to —The current contract system adopted in run the enterprise well. Horizontal cooperation foreign trade has played an active role in deve• between enterprises should be further promoted loping foreign trade, but it has also contributed and the establishment of enterprise groups en• to the dispersion of foreign exchange and the couraged. disorder in foreign trade. Appropriate measures —The current system of financial contracts should be taken to gradually alleviate the over- between the central and the local authorities decentralization in foreign trade and foreign has both advantages and disadvantages. The exchange management and establish a proper advantages lie in that it brings into play the measure of centralized control. The export of enthusiasm of local authorities for financial primary products in bulk and import of major management and increasing revenue. The di• goods will be placed under the unified admin• sadvantages are that it leads to the erection of istration of foreign trade corporations designat• barriers between different localities, split up the ed by the state. Foreign trade companies will be market and encourage overlapping construc• banned if they are not state-owned specialized tion. The current reform does not aim at a foreign trade companies, companies that are return to the old system under which local authorized to integrate industrial production revenue and expenditure were all under central with foreign trade and other production enter• government control. Rather, it is intended to prises empowered to carry on foreign trade. tap the strength and eliminate the weaknesses Individuals are not allowed to conduct foreign of the system and enable the central authorities trade. Production enterprises with foreign trade to increase their financial resources to a certain licenses are not allowed to purchase other enter• degree. Until the current financial contract sys• prises' products for export or resell imported tem is changed, the portion of revenue turned goods for a profit. The portion of foreign ex-

XIII DOCUMENTS change earnings retained by localities and en• appropriately enlarging the scope and propor• terprises will be readjusted, and the preferential tion of products covered by mandatory plans. treatment for various localities in this regard The mandatory plans should be strictly carried will in principle be abolished. All foreign trade out and the methods for carrying out the guid• transactions should be conducted through ance plans should be perfected. Power to exam• banks, except for those governed by specific ine and approve construction projects already government regulations. Unified management delegated to lower levels will be taken back by of foreign debts will be strengthened. Channels authorities at higher levels. Large and medium- through which loans are borrowed from foreign sized capital construction projects as well as countries should be regulated so as to avoid those whose investment exceeds the stipulated duplication of borrowing. The ceilings for bor• norms must be examined and approved by the rowing set by the state must not be exceeded. central authorities and the norms of investment —The system of materials management will for some industries will be readjusted according be improved. The proportion of important ma• to the industrial policy of the state. In princi• terials subject to state unified allocation will be ple, small local construction projects and those raised appropriately. The previous quotas of whose investment is below the norms will be materials an enterprise turns over to the state examined and approved by the authorities of for unified distribution should not be de• provinces, autonomous regions or municipali• creased, and quotas which are relatively low ties directly under the central government. To should be increased properly. Newly commis• keep pace with the reforms in the systems of sioned enterprises should turn over a certain finance, investment, material supply and for• amount of their products in proportion to state eign trade, it is necessary to define the planning investment. Enterprises marketing their own and managing powers vested in the central gov• products are required to set aside a certain ernment and the authorities of provinces, au• amount for sale to customers designated by the tonomous regions and municipalities directly state and according to the state quotas to meet under the central government, and the way the needs of the nation's key construction pro• large and medium-sized enterprises and enter• jects. Strong measures will be taken to carry out prise groups are managed according to a cen• the state plan for the unified distribution of tralized plan should be improved and perfected. materials and the fulfillment of contract orders. The relations among the planning, financial The supply of important materials will be sus• and banking departments will be straightened pended for producers which fail to provide out so as to give full scope to the planning goods for distribution according to the state department's role in effecting an overall bal• targets. ance of the economy and implementing the —The reform of the pricing system should be state's industrial policy and as an economic advanced step by step in a steady way on the lever for close cooperation between the plan• basis of reinforced macro-control. Power to ners, financiers and bankers so that they can manage prices should be further centralized for work in sync according to the requirements of stricter administration over prices of goods of economic readjustment. vital importance for state construction and peo• 35. We should persist in opening to the outside ple's livelihood. Effective measures should be world and expand foreign trade and economic taken to stabilize the prices of daily necessities. and technological exchanges more effectively. The relaxation of control over the prices of Opening to the outside world is our country's certain commodities will be continued. If neces• consistent,, long-term policy. During the whole sary, ceilings may be set for the prices of some period of improving the economic environ• of these commodities, or a system of submitting ment and straightening out the economic or• plans for price increases for approval may be der, China must make full use of all favorable introduced. The reform of the price structure international conditions that can be used, min• should be carried out step by step, under com• imize unfavorable factors, and accomplish all petent leadership and by focussing on the prices work well so that opening up and the economic of some commodities at a given time on the readjustment may promote each other. principle of a strict control of the general price —We should make every effort to guarantee level. a sustained development of the country's for• —The planning system should be improved eign trade. Stick to and improve the policies

XIV DOCUMENTS and measures for encouraging exports, effec• work harder to incorporate more direct foreign tively solve the difficulties that exist in the investment which accords with our country's production of key export items, in major areas industrial policy, set up more equity and con• producing exports and in key export-oriented tractual joint ventures based on the transforma• industries as a way to actively develop export tion of existing Chinese enterprises, and active• commodities. We shall continue the readjust• ly seek available long-term, low-interest loans ment of the mix of export commodities based from foreign governments and international on the principle of giving consideration to sales financial organizations. The contracting, use both at home and abroad. Exports of resources and repayment of foreign loans will be kept and related products that are scarce in China under tighter control. and exports of primary products will be con• —We should redouble our effort to run the trolled and reduced. Actively increase the ex• special economic zones well and give full play ports of manufactured goods like machinery to their function as windows and bases for the and electronic products, and finely-processed policy of opening to the outside world. We and high-tech products, and furthur expand should continue to encourage coastal areas to exports of agricultural products to earn foreign develop export-oriented economies. The basic currency. Efforts will be made to update de• policies and measures in respect to the special signs and varieties, improve product quality, economic zones and open coastal areas remain abide by contracts, improve sales promotion unchanged and will be perfected gradually in service and strengthen China's competitiveness the course of practice. in the international market. —While making every effort to increase ex• ports and foreign currency earnings and reduce VIII. strengthening the Party's imports, we should spare no effort to seek a Leadership Over Economic Read• balance of revenue and expenditure in foreign justment and Reforms trade and even to gain a surplus in foreign trade in order to repay our foreign debts, including 36. Strengthening the Party's leadership is the principle and interest. Strictly ban imports of fundamental guarantee for realizing the tasks of luxury goods, high-grade consumer commodi• improving the economic environment, straighten• ties and general machinery and electronic prod• ing out the economic order and deepening the ucts, so that the limited foreign currency can be reforms. To extricate ourselves from economic spent on importing badly needed equipment difficulties, we should strengthen Party leader• and materials. Positive measures should be tak• ship, give full play to our political superiority en to produce raw materials, machinery and and unite the whole Party and the people of electronic products that can be. produced do• all nationalities throughout the nation to work mestically. Various regions and departments hard as one in a down-to-earth way. must actively develop import substitutes, speed —The nation's stability is precisely where the up the process of the domestication of imported basic interest of the whole Party and the whole products and try to reduce the impact of re• nation lies. Political stability is the premise and duced imports on national production and con• economic stability the foundation. Neither can struction and people's lives. be dispensed with. Party organizations at all —We should continue to actively use foreign levels, especially those in economic depart• funds and import advanced technology, and to ments, enterprises and villages, should, pro• reinforce scientific and technological exchanges ceeding from the overall interest of the state, and co-operation with foreign countries. In or• see to it that the Party's role as the core of der to further improve the investment climate, leadership and a fighting bastion is brought into we should go to great length to carry out laws full play, and conscientiously carry out the and regulations concerning China's foreign eco• Central Committee's principles and policies. nomic affairs. Concentrated efforts should be While firmly safeguarding the political situa• made to make sure that the Sino-foreign equity tion characterized by stability and unity, they joint ventures and contractual joint ventures should do their best to ensure the smooth pro• which have already been set up are run well, so gress of economic readjustment. They should as to enable them to play an exemplary role and strengthen public security, crack down on var• to attract more foreign investment. We should ious law-breaking activities and create a social

XV DOCUMENTS environment conducive to stable econon\ic de• 38. We should get rid of corruption, foster a velopment. clean administration, and promote the Party's —We should strengthen Party's ideological fine working style. Depraved Party and govern• and political work, study Marxism-Leninism ment officials who damage the cause of the and Mao Zedong Thought in earnest, deepen Party and the people must be sternly punished education in current affairs and the nation's in accordance with the law, without being treat• situation as well as the ideological education ed with indulgence or tolerance. Otherwise, it designated to foster patriotism, collectivism and would be impossible for the Party to maintain socialism among the people. We should carry its high prestige, and the Party would surely be through to the end the long-term education in divorced from the people and even exposed to the Four Cardinal Principles and the protracted the danger of becoming morally degenerate. struggle against bourgeois liberalization; on no The Party's working style is a matter of life and account should we give up these endeavors half• death for the Party. We must persevere in the way. principle of serving the people heart and soul —All Party members and cadres, especially and in the fine style of integrating theory with leaders, must maintain close ties with the peo• practice, of maintaining close ties with the ple, be the first to bear hardships and the last masses and of criticism and self-criticism. We to enjoy comforts, conduct investigations, im• must run the Party strictly according to the prove their ways of thinking and working style Party Constitution. We should, by adopting and play an exemplary role in uniting with the firm and effective measures, surmount all ob• people of all nationalities throughout the coun• stacles, stop all forms of corruption and bureau• try in the socialist modernization drive. What cratic styles of work, and renew and develop the the people are required to do, the leaders, espe• flesh-and-blood ties between the Party and the cially the high-ranking leaders, must do first. people. What the localities are required to do, the cen• tral authorities must do first. Thus we can 39. The spirit of self-reliance and of doing surely rally the people to tide over the difficul• arduous pioneering work should be carried for• ties. ward. The Chinese people never gave in to any 37. We should enhance unity and a sense of external pressure and will never do so, nor will organization and discipline and combat decen- they abandon the socialist road and national tralism. In order to accomplish the arduous and independence to barter for charity from others. complicated task of readjustment, each Party The Chinese people are fully able to solve the member and Party official must bring his ideas, problems they face. We are not frightened by words and deeds in line with the political line, temporary economic difficulties or trouble- principles and policies of the Party Central making by hostile force at home and abroad. So Committee, so that the whole Party can be long as we make unceasing efforts, rely on united in thought and in action. Only in this ourselves and work hard, our country will sure• way can we have the strength to overcome the ly grow stronger and more prosperous to the present difficulties. We must firmly oppose de- admiration from the people in the rest of the centralism, because any kind of decentralist world. action or tendency is bound to weaken the The Central Committee believes that our so• Party's fighting power. The nation's economy is cialist modernization, reform and opening up to an organic whole. Only by working as one in the the outside world have won great achievements current economic readjustment and achieving a and are continuously forging ahead. The diffi• fundamental turn for the better in the country's culties confronting us are, after all, occurances entire economic environment can all localities in the process of making progress. So long as the and departments develop soundly. Those who whole Party and the people of all nationalities refuse to abide by the orders or insist on doing of the country rally closely around the Party what is forbidden, and those who take counter- Central Committee, raise their enthusiasm, im• measures toward state policies or feign compli• merse themselves in hard work, make concerted ance but act otherwise, should be criticized efforts and unite in struggle, we will certain• severely; serious cases should be dealt with ly surmount the present temporary difficul• according to Party and administrative discip• ties and achieve new and greater victories. line.

XVI CHINA of rural Chinese dency to encourage children could not many students to en• read or write. One ter schools of higher factor of concern, learning should give however, is that rur• way to the training al education, to date, of talented people for has often been un• the development of practical in rural local agricultural work. A case in point production. In order is Yangyuan County to enable education to in Province. have a practical use, Although the county it was proposed that, was a national model along with providing for popularizing pri• a general elementary mary education in education, efforts be 1964, its annual per- On September lO, 1988, farmers from Quzhon County, Hebei increased to provide Province, erect a gigantic tablet in honour of local rural university capita income was teachers and students who helped improve 18,666 hectares of professional, adult ed• still below 200 yuan saline-alkali land and raise the per-unit output by nine times. ucation. "Only by im• in the mid-1980s and, TANG SHIZENG proving the quality of countywide, 33.3 percent of all farmers' scientific methods and at a loss when they returned the villages had an annual per- management," they asserted, home. It was little wonder that capita income below 120 yuan. "will it be possible to improve farmers said "all our children the rural economy within a few Nationally, of course, the ne• were reading at school but we years." gative effects of an inability still could not rid ourselves of to adopt scientific methods are poverty." A consensus was reached and magnified. Some 70 percent of To change the situation, the the "prairie fire programme" de• all research results, for example, CPC Central Committee issued veloped. The programme stresses cannot be used in the field. Con• the Decision on the Reform not only training talented people sequently, 66.6 percent of the of Educational System in 1985 for rural employment but also farmland is still of low yield and which says, in part, "Education the need to develop voc-ed pro• the rate of livestock which die of must serve socialist construction, grammes jointly because of the diseases is as high as 10 percent. and socialist construction must mutual dependency of education One reason for the discrepancy rely on education." This decision and economics. The programme, between rural education and the shifted the orientation of rural therefore, is entirely different needs of the local economies lies education. from past campaigns to wipe out in the orientation of China's rur• In the discussions which fol• illiteracy and so has received wi• al educational system. Although lowed this decision, many people despread attention and support only 3 percent of China's rural pointed out that the former ten- in rural areas. secondary students Associate Professor Zhou Jixiao (third right) of Hebei Agricultural could enter college or University helps promote technology for high-yield date production Becoming Rich universities, almost in Fuyuan County. LIUQUANJU Through all rural schools Education geared themselves ex• clusively towards this Encouraged by the purpose of sending as "prairie fire pro• many students as pos• gramme," special sible to school of schools were set up higher learning. For in areas like Chenxi- a variety of reasons, an County in Hun• however, the attempt an Province. Many doesn't pay off. The farmers quickly real• majority of students, ized benefits as their having learned almost incomes soared. One nothing useful for such farmer is Zeng agricultural work, of• Baobao, a middle ten found themselves school graduate who

BEIJING REVIEW, FEBRUAKY 12-18, 1990 19 CHINA has, since the late 1980s, started school in Yangyuan County, He• piled a textbook entitled How to a chicken farm, a pig farm, a fish bei Province has set up a rabbit Prevent and Treat Pig Diseases farm and an orchard. Applying breeding farm, a sheep farm, and for local middle schools. Various what he has learned to increase a chicken farm, covering a total localities also stipulate that pri• production, he uses chicken area of 8.6 hectares, plus eight, mary, middle and high school droppings to feed pigs, pig drop• out-of-school bases to popular• graduates must receive pre-work pings to feed fish, and silt from a ize technology in selected near• technical training provided joint• fishing pond to supplement the by villages. Thus far, they have ly by primary and middle soil of fruit trees. In 1988, he introduced and experimented schools, secondary technical sold 25,000 chickens, 7,500 kg of with some 20 scientific and schools and special technical fish and 100 pigs and planted technical research projects, dis• schools for farmers. Only those fruit trees on more than 1.5 hec• seminated 20-odd items of pract• students holding two kinds of tares of land, reaping a gross in• ical technology, and supplied diplomas—those issued by both come of 280,000 yuan and net• more than 2,000 breeding rab• the "regular" school and techni• ting some 45,000 yuan in profit. bits, 20,000 breeding chickens cal training school—can ob• The "prairie fire programme" and over 200 sheep to local farm• tain employment in agricultur• has taken root in many other lo• ers. In addition, this school dis• al production. cations. In Hebei Province, for patched 214 teachers and stu• As part of the reform in the example, special cultural and dents to local villages to help existing rural primary and mid• technical schools for farmers build up household production dle schools, efforts also are have been set up this past year in bases, provided more than 100 made to closely link school pro• 259 pilot villages and townships kinds of information materials, grammes with technical projects needed for local production. For example, to increase grain, veget• able, meat, milk and egg produc• tion, various schools in a town• ship in the suburbs of Chifeng City, Inner Mongolia, organized a technique training class for lo• cal farmers. In 1984, the town• ship's income from these prod• ucts hit 4.18 million yuan, aver• aging 355 yuan per person, and made up 35.5 percent of the total township income. Another exam• ple is Gushi Town in Nanxiong County, Guangxi Zhuang Au• tonomous Region. To increase production of yellow tobacco, for which the town is famous, var• ious local agricultural schools sponsored technical training classes for farmers. The result was that, in 1989, the town's yel• low tobacco output topped 1.4 and provided training to over and run scores of training classes million kg, the value of its out• 1.07 million people, including for village agricultural schools. put 1.8 million yuan more than 400,000 rural middle school Reforming the existing the previous year, and its per- graduates. 800,000 rural primary and mid• capita income topped 1,000 Nationwide, there are some dle schools is also an important yuan, or 16 percent higher than 33,000 and 180,000 schools, res• part of the "prairie fire pro• 1988. pectively, of this type at the vil• gramme." To this end, profes• lage and township level which sional education, such as farm- have become educational centres work, is included in the teach• Promoting Education and hubs of economic develop• ing materials for primary school Tlirough Production ment. For example, a county- pupils. One township in Chuan- Local governments and farm• level secondary professional sha County of Shanghai com• ers in areas which have introd-

20 BEIJING REVIEW, FEBRUARY 12-18,1990 CHINA uced the "prairie fire pro• gramme" have all shown a high• er awareness of the importance of education. This is most evi• dent by an increase in funding. A survey of Shanghai, Henan, Hu- bei and three other provinces show that more than 30 million yuan has been invested in educa• tion, in addition to the special state allocations. And farmers in Huatang Town, Chenxian Coun• ty of Hunan Province, invested 80,000 yuan, an average 4 yuan per person, to construct a new building for a local middle school, in addition to the 170,000 yuan provided by the county Li Zhenqing (left), a lecturer with the veterinary department of Hebei Agricnltnral government. University, and Zhao Yongfo from the Dingxian Livestock Bnreaa, work together This increased willingness to to promote chicken breeding with scientific methods. LIU QUANJU spend money on education is not tied to any particular locality. County, Hebei Province in 1987, those who did go back were Various counties and townships Associate Professor Gong Nai- found to be of little use in agri• involved in the "prairie fire pro• chuan and his colleagues went cultural production. The new gramme" have spent huge there almost every month to in• programme, however, prompted amounts of money improving vestigate the programme. They the university to introduce a ser• school facilities and replenishing helped the local county govern• ies of reforms, including the res• teaching materials and aids to ment formulate plans for overall toration of experimental plots boost education. Most plan to development, train primary and and technical training, to en• have the nine-year compulsory middle school teachers and com• courage the students to be more educational project in place by pile teaching materials. Other productive. Students majoring in the late 1990s, but it is estimat• universities such as Qinghua livestock breeding, for example, ed that many will meet their University in Beijing, Nankai are now required to learn veter• planned target five or less years University in Tianjin, Tianjin inary medicine and freshwater ahead of time. Qingpu County in University and Hebei Agricul• fish breeding. Shanghai, chosen to experiment tural University also worked to Perhaps the most productive with the programme earlier than help implement the programme reform of all, however, is the in• other locations, planned to univ• in various pilot counties of Hebei troduction of a new subject, rur• Province. al household management, to se• ersalize nine-year compulsory condary technical schools. It is and elementary technical educa• Support provided by universi• clear, though, that all aspects of tion by 1990. It also plans to im• ties and colleges for the "prairie the "prairie fire programme," prove the quality of its basic ed• fire programme" includes scien• taken together, are necessary to ucation and develop a plan for tific and technological consult• have a significant impact on the intermediate technical education ing services, training of senior rural economy. Rural China is around 1995, and secondary and middle-level agronomists populous but scarce in farmland school education and interme• and management guidance. The and a further increase in the rur• diate technical education before implementation of the pro• al population is sure to make the year 2000. gramme, in turn, has promoted the country's economic situation changes in the schools' curricu• more difficult. The best way out, The Role of Schools of lum, especially those of agricul• experts agree, is to raise per-unit Higher Learning tural universities and colleges. production. They also point out A few years ago, the cur• that the comprehensive "prair• The Beijing Teachers' Univ• riculum at Hunan Agricultural ie fire programme" is the best ersity is an enthusiastic support• University was divorced from method developed to date to en• er of the "prairie fire the reality of rural life; many sure the educational system programme." Since it began graduates were reluctant to re• meets the economic needs of Chi• its co-operation with Yangyuan turn to the countryside, and na's rural economy. J BEIJING REVIEW, FEBRUARY 12-18,1990 21 CHINA

The Population Boom and Family Planning by the State Statistics Bureau

n April 14, 1989, the po• thousand; 1963 saw the highest restoring production, develop• pulation of China sur• rate of 43.6 per thousand. Dur• ing the economy and improving O passed 1.1 billion. Such ing the 14 years, the natural the standard of living for all the an explosion in the nation's po• growth rate exceeded 15.77 per people. It was wrongly thought pulation makes it necessary to thousand; in 1963 it was as high at the time, however, that the take stock of the aftereffects, problem of over- population did fully assess the consequent not exist in a socialist society. problems and come up During the first population measures to adequately con boom, the former president trol any possible future ex• of Beijing University and pansion. economist. Ma Yinchu, devised family planning Historical Lessons guidelines and mea• Since the founding sures for controlling of the People's Re• the size of the popula• public of China in tion but, at the time, 1949, there have been was wrongly criticized two dramatic periods for his work. of expansion in the po• Mistakes in policy. pulation. During the early years During the first in• following the founding crease in the population, of the People's Republic from 1950 to 1957, some of China, the nation adopt• 167.73 million people (20.97 ed the policy of encouraging million a year on an average) people to bear many children, a were born. The annual bir• policy for which China has paid thrate in the eight years exceed• Praying for a son. a high price because of the re• ed 31.9 per thousand and after sulting population boom. five years had surpassed 37 per as 33.5 per thousand. There was The cost of this boom has thousand. The annual natural an overall increase of 270 mil• been evident in the following: growth rate was more than 19 lion people. Uneven social development per thousand and the net in• Reason Behind the and a lower standard of living crease in the population over Population Expansion than otherwise possible. Accord• the eight years was 100.54 mil• ing to the statistics, from 1953 lion people. Mistakes in population re• to 1987, consumption volume The second expansion oc• production theory and in the in China's national income curred from 1962 to 1975 when guidance of the leadership. At grew 6.4 times along with a 5.5 361.36 million people were born the founding of the People's percent annual growth rate. in 14 years( 21 million annual• Republic of China, the entire This occurred at a time when ly). The annual birthrate in the country faced the urgent tasks the population nearly doubled 14 years was more than 23 per of healing the wounds of war. and the per-capita consumption

22 BEIJING REVIEW, FEBRUARY 12-18,1990 CHINA volume grew only 3.4 times children to be born before the inoculated against measles and or 3.6 percent in the annual end of this century, the country 38.79 percent had not had BCG growth rate. Moreover, nearly will need to pay out 500 billion vaccine inoculations. Today, 50 percent of the newly in• yuan, more if inflation is taken many rural areas still lack doc• creased consumption material into account, a sum equal to tors and medicines. was used to satisfy the need of half of China's national income —The poor transportation the new population born during in 1988. In regards to teaching service and inadequate housing the same year. standards, there is a need to are unlikely to improve. Coun- Gradual disappearance of eco• improve the quality of teachers tinual upgrading of transporta• nomic advantages. Many of Chi• to keep up with the demands tion capacity cannot keep up na's natural resources are the of a changing society. In 1988, with the demand for bus, rail• most abundant, and the output there were still 42 percent of way, plane and ship transport. of many of its industrial and rural primary, middle and high In housing, 16 percent of urban agricultural product, the high• school teachers who did not residents do not have sufficient est in the world. Its cultivated have the formal schooling offi• or convenient living conditions. and prairie land, for example, cially required of them for their Some people have no housing. rank fourth internationally. Its The situation wherein several output of coal, cement, cloth, generations live in one room is grain, pork, beef, mutton, cot• frequent occurrence. ton, peanut and rapeseed —The population boom rank first; televisions and has brought public security tea second; chemical fer• problems. There is special tilizers and soyabeen concern for the hidden third; and steel, ce• perils which future ex• ment and chemical fi• pansion of the popula• ber fourth. The bur• tion will bring. geoning population, however, has eliminat• Family Planning ed any advantage such The pressure of the a large output in prod• population expansion uction might have pre• on China's economic sented to the population. and social life and the contradiction between its The burden on society unchecked growth and the has increased. inadequate increase in econo• —Advancement opportuni• mic production have become ties for employees are contin• an increasingly acute problem ually shrinking. The phenome• StUl praying fat a son after several since the beginning of the 1970s. non of waiting a long period of years. Faced with the gravity of time for jobs and of at-home respective teaching posts. the situation, the government unemployment is compounded —There has been an increas• brought the family planning by the growing surplus of urbah ing burden placed on the prov• work to the fore of the national and rural labourers. ision of medical care. By the agenda. Birth control depart• —Compulsory education has end of 1988, there were only ments were set up at the central been confronted by two out• 23 hospital beds and 34 doc• and local levels. For the better standing difficulties: financing tors and nurses per 10,000 peo• implementation of the govern• and teaching standards. Ac• ple. Only 12 provinces and ment policy of one or two child• cording to rough statistics, if municipalities out of 30 ren per couple, the economic the nine-year compulsory edu• reached the planned number of and administrative measures cation is provided to the cur• immunity inoculations. About necessary were taken. These ini• rent 300 million children under 17 percent of children, aged tial steps in family planning 14 and, later, to the 200 million five and under, had not been were successful and the mo-

BEIJING REVIEW, FEBRUARY 12-18,1990 23 CHINA mentum of the population in• be perilous legacy for the po• pulation and elimination of the crease thereby checked. pulation of the next century. difficulties brought about by There are 200 million fewer There are thus some major the people boom to China's so• births because of the policy of problems to be dealt with by the cial and economic life requires family planning. This is a great current generation. comprehensive measures. These achievement. If China's popula• Some farmers still believe measures must include educa• tion had reached the 1.3 billion that many children bring pros• tional, administrative, econo• mark, there would have been perity and that a family with mic and legislative means such even less room for the country few children, particularly if as firm implementation of on• to deal with its current difficul• there is no son, brings unhappi- going family planning policies ties. ness. Their desire for large fam• and acceleration of legislative The increasing rate of popula• ilies is very strong. In some work; strict rules on the allow• tion growth has slowed. Between areas, there is no control over able age for births, marriages 1954 and 1973, when China's the number of births, a major and the number of children; population grew from 500 mil• contributing factor to the exces• prohibition on the birth of the lion to 900 million, the time sive increase in the population. mentally retarded; and fines period for each increase of 100 million people was respectively for exceeding the allowable ten years, nine years, five years birth limit. and five years, a particularly In the long term, it is ne• high rate. Since the 1970s, cessary to carry out an ef• however, the rate has fective educational cam• slowed. The increase in paign and improve peo• the population from ple's cultural level 900 million to 1 billion mainly in the rural took seven years, and areas. The effort to nine years were re• eliminate illiteracy, quired for the popula• enforce compulsory tion to increase from 1 education and prov• billion to 1.1 billion. ide vocational educa• Renewed understand• tion should be integrat• ing of the need for a ed. There's no doubt sound population policy. that improving the litera• The public, especially ur• cy level of farmers will play ban residents, have begun to decisive role in effective realize the benefits to be gained family planning. from fewer births and from eu• From this date on, it is neces• genics, and have set a good ex• After several decades, too many chUd- sary to gradually set up and ample in their exercise of fami• aU ren, daaghters. Drawn hy ZHAO REN implement the old-age pension ly planning. Under the new economic sys• system to eliminate people's Problems to Be Faced tem, there are no effective mea• fear that fewer births will spell sures to control people who trouble in their old age. A third boom in the popula• disregard the family planning It is also clear that more re• tion can not be avoided. When policy. The former economic search needs to be done on con• this occurs, the number of means do not have much force venient and acceptable con• women of child-bearing age will behind them and there is little traceptive measures and that grow from 280 million to 340 incentive on the part of the sufficient medical and technol• million, 12 million of whom will rural population to check early ogical means for birth control reach their peak age for bear• marriages and increased births. operation, especially for people ing children annually. If fami• in rural, outlying and backward ly planning of this age group is Measures districts, must be provided. • not carried out well, there will Planned increases in the po•

24 BEIJING REVIEW, FEBRUAKY 12-18,1990 CHINA

Serving Mankind With Knowledge by Our Staff Reporter Huang Wei Intellectuals plax; an important role in China's socialist construction. Many of them have emerged as model workers, whose outstanding accomplishments have inspired hundreds of millions of fellow citizens in the ongoing modernization drive. Following are the stories of three of them—Ed.

in Qingmin, 50, is a Chinese Qingmin, the only geologist and the United States government geologist who became the the only woman on the team, de• asked each explorer to sign a con• J first woman in the world to monstrated her intelligence, and tract agreeing, in case of a fatal travel far into the Antarctic con• warm and cheerful disposition accident, to burial on Antarctica, tinent and the first to discover along with her lofty sense of res• she signed without hesitation. mineral deposits there. Jin, now ponsibility as the team explored "If I die during the explora• an associate research fellow, the mysterious Antarctica. When tion," Jin said to her compa• works at the Nanjing Geolo• nions, "would you please lay gy and Miner• my head in the direction of al Research In• my motherland and my feet stitute. ' towards the South Pole. After pass• Then, even if I die, I'll con• ing a strict tinue walking to the pole." screening in After flying over thou• October 1987, sands of icebergs, the party she took part of six finally arrived at the in China's first foot of the Vinson Massif at round-the- an elevation of 5,140 metres. world marine ^ To the north of the range are exploration Qingmin. many precipitous mountains and third expedition to the and valleys and to the south Antarctica. At the Great lies a vast expanse of snow- Wall observation station clad grassland studded with built on the King George Is• glaciers. A cold and desolate land off the Antarctic con• place, the temperature year- tinent, she withstood the round is between 40-80 de• subfreezing temperature and grees below zero Centigrade. won high esteem for 77 days They got straight to work of remarkable activities. upon arrival, however, as she In December 1988, as a and five other male compa• member of a Sino-US moun• nions chiseled rocks and ice taineering team, she and two in order to build a settle• other Chinese scientists re• ment. Every day, when she visited central Antarctica for collected samples, conducted a scientific survey of Vin• ]in Qingmin (front) beside the group's monntain- analysis and took photos son Massif mountain range, climbing camp on the Vinson Massif monntain on glaciers about 400-500 called "the death zone." Jin lange. metres in height, she had to

BEIJING REVIEW, FEBRUARY 12-18,1990 25 I

CHINA carry several instruments on five papers were twice read at person annually. her back and wear mountain- international symposiums and in Yuan, a senior research fellow climbing boots fitted with 1981, Jin was transferred to the with the Hunan Hybrid Rice Re• steel awls weighing three kil• Nanjing Research Institute of search Institute, is the first per• ogrammes. She often worked Geology and Mineral Resources. son in the world to succeed in more than a dozen hours each Since then, she has conducted re• cultivation of hybrid rice. The day. In one four-day stretch, re• peated exploratory researches on "Nanyou No.2" hybrid rice de• lying on her wealth of geological the Yunnan-Guizhou Plateau veloped by him can produce knowledge and field work exper• and collected more than a dozen 1,125-1,500 kg more per hectare ience, she drew five geological boxes of geological materials. than ordinary varieties. This suc• cross sections in locations she Jin has a deep affection to• cess of his has been a key to had surveyed. With her drawings wards deserts, mountains and increasing the output of rice and and 40 kg of rock samples she mineral deposits. Her strong spir• to alleviating shortage in food had collected at the site, she was it was reflected in the message supply. In the late 1980s, Yuan able to determine the distribu• she gave her daughters before succeeded in growing hybrid rice tion of mineral resources in this she left for Vinson Massif in in vast tracts of farmland, thus area. On December 2, 1988, she November 1988. "If something making China the first country discovered an iron ore seam hid• unexpected happens," she wrote, in the world to apply high-yield den deep in a rocky mountain "you should console your grand• hybrid rice in large production ridge at an elevation of 3,000 mother and dad. I also hope you areas. metres. A preliminary survey will study diligently, work hard, Yuan began to study hybrid showed that the red iron mineral and face life bravely." rice in 1964. In the process of formation was more than 20 km After returning from the An• breeding new strains of rice, he long, 200 metres wide, and had tarctica, Jin was cited as a na• found that certain hybrids had an iron content of some 30-50 tional model worker. When ex• a distinctive potential for high percent. It was later verified by plaining the motive behind her yields. Encouraged by the suc• other scientists that the mineral work in the Antarctica she said cessful application of hybrid bed had a geologic age between she was concerned about the fact maize and sorghum in produc• 322 million and 327 million that China's geological study of tion, he thought about how to years. the Antarctic started several de• cultivate a hybrid rice marked When she finally left the An• cades later than other countries. for fast growth, high resistance tarctica, she had to discard her "To catch up with advanced to adversity and high output. precious mountain-climbing gear world level in this field, I think The universally accepted view• to make room for the 40 kg of we should start with the most point at that time in the agricul• mineral samples she had collect• dangerous place, the place where tural circles was that no vigorous ed and packed in three boxes. no one has gone. The Vinson hybrids could be produced for In the 1950s, Jin Qingmin had Massif range is still a blank page self-pollinating plants such as studied in the Beijing Institute of in geological study; it is there• rice and wheat. Yuan's assump• Geology. After her graduation in fore an ideal place for geologists tion was, therefore, regarded as a 1960, she volunteered to work to display their talent. If I'm challenge to the theory of genet• with a geological team in Xin• lucky enough to have another ic inheritance, and some people jiang. Her husband, a former chance, I'll try to go there again." even accused him of "genetic ig• schoolmate, also went to Xin• norance." Yuan insisted, howev• jiang from scenic Hangzhou in 'The Father of Hybrid Rice' er, that the theory derived from south China, and the two worked his observation of hybrid rice together there for 20 years. Jin I started to study hybrid rice was in conformity with biologi• has participated in the explora• out of a strong desire to help cal laws. tion of more than a dozen large people rid themselves of hun• Yuan began to look for a plant and medium-sized mines and, to• ger," said , the suitable for experiments in pad• gether with her colleagues, drew man honoured as the "Father of dy fields. Using a magnifier, he a map of mineral resources in Hybrid Rice" by world agricul• observed individual plants one Tianshan Mountains. In 1980, tural circles. by one, working several hours a Jin discovered a "breccia-mica- China is a big agricultural day under the hot sun. To find olive" rock mine in the Tarim country, but with the growth of one plant which retained all its Basin in northwest China, which its population, its cultivated area hereditary features. Yuan and was determined by the state to be is proportionately decreasing and his assistants spent nine years a new geological discovery. Her provides only 350 kg grain per conducting countless experi-

26 BEIJING REVIEW, FEBRUARY 12-18,1990 CHINA merits in the fields. In 1973, they output over the hybrid rice strain autics. { finall bred a hybrid rice "Nan- now in use, and a 40 percent Huang, who majored in electr• you No.2" which produced over increase over standard varieties. ical inachinery at the National 7,500 kg of rice per hectare. Yuan said that after several Central University, studied in Yuan's success, which opened years of experimentation, the re• Britain in the early 1940s with a new trail for China's grain search has brought remarkable the aspiration of saving China production, had a wide interna• progress and that the new variety with science. In 1947, he got his tional impact. The populari• is expected to be planted over Master's Degree in radio technol• zation of hybrid rice in produc• vast rice-growing areas in the ogy and returned to China. In tion was hailed as the "second near future. If this new rice hy• 1957, he began his rocket re• green revolution" in the world. brid is used to replace a conven• search at the Fifth Institute of For his effort, in 1981, Yuan was awarded a special invention prize from the Chinese govern• ment, the first of its kind since the founding of the People's Re• public, and the UN Food and Agriculture Organization award• ed him a gold medal for his ac• complishments. He also received a UNESCO science prize of US$15,000 for 1986-1987, which he contributed as a fund to culti• vate young scientists. In 1988, he won another prize from an inter• national foundation. He visit• ed the , the United States, Italy, France, Britain, Ja• pan and Iran on academic ex• changes and lectures. Yuan said that in 1988 China's Yuan Longping (centre) is warmly greeted in Beijing by the State Commission of hybrid rice-growing area reached Science and Technology after he was awarded UNESCO's 1986-1987 science prize 12.6 million hectares, making up on November io, 1987. YANG WUMIN 39 percent of the nation's total rice-growing acreage and that tional rice strain over 100 mil• China's Defence Ministry. hybrid rice made up 48 percent lion mu (about 6.67 million hec• Huang said that in the early of the country's total rice output. tares) of paddy fields, there will 1960s it was very hard for them The remarkable production in• be an annual increase of 2.5 bil• to conduct research. Due to pol• crease and the resultant eco• lion kg in grain yield. itical reasons, technological aid nomic returns have attracted originally available from abroad agronomists from many coun• A Pioneering Rocket Expert was cut off, and China had no tries to China in order to ob• option but to continue its re• tain the seeds. Hybrid rice be• It was hard to believe that the search by relying on its own came China's first agricultural plain-dressed, lean man was one scientific and technical re• technology to be transferred to of New China's first rocket- sources. During that period, Occidental Inc. of the United launching experts. Huang Weilu, Huang, as head of a control sys• States. 73, is still active as the general tem research institute, worked In 1985, Yuan put forward technical adviser for the Second more than ten hours each day, new proposals for simpUfying Research Institute of the Minis• sometimes deep into the night. seed breeding procedures and try of Aeronautics and Astron• In 1964, Huang and his col• lowering the cost. He also at• autics. He has, over the past 30 leagues successfully developed tempted to develop new strains years and more, participated in and tested their first carrier by the use of hybridity bridging the development and launching rocket. Several years later, they rice subspecies in order to furth• of dozens of carrier rockets of launched China's first man-made er increase the per-unit output. various types. His history leaves satelhte. The new variety is expected to no doubt that he has made great As rocket research is a com• bring a 20 percent increase in contributions to China's astron• plicated, systematic project and

BEIJING REVIEW, FEBRUARTP, J2-18, 1990 27 CHINA costs a huge amount of money. Huang said that China's Huang says each system must submarine-launched carrier mis• be carefully developed to en• sile technology ranks fourth in sure they are precisely integrat• the world, behind the United ed with one another. States, the Soviet Union and In 1982, Huang acted as the France. general designer for developing a With the introduction of the new submarine-launched car• policy of reform and opening to rier missile. He worked several the outside world, China began months at the testing site togeth• to exchange astronautical infor• er with his colleagues until the mation and technology with for• experiment succeeded. For his eign countries. Although it is just effort, the state awarded him a a beginning, Huang said, it helps special prize for scientific and to promote the development of technical progress. the space technology of both Over the years, Huang had sides and makes for a promising worked under the Ministry of future. Aeronautic and Astronautics as Though a strict scientist, deputy director of the Science Huang is easy to get along with. and Technology Committee, Huang WeUo. ZANG XINHAN He lives a plain life with his re• vice-president of the Second Re• tired wife and eldest daughter in search Academy and chairman grounds are spread around the an ordinary department in Bei• of the academy's science and country, researchers always have jing's western suburbs. His son technological commission. to rush from one place to anoth• is studying in the United States, Referring to his 30-year career er. In 1988, he became the gener• and his youngest daughter is a in rocket research, Huang said al technical adviser and no lon• doctor in a Beijing hospital. In that it was not just a matter of ger participated in the trial prod• his spare time, Huang plays chess sitting in an office reading docu• uction of rockets, but he was with his young friends and some• ments. Since the factories, ex• still very much needed to help times goes sightseeing with his perimental sites and launching submarine-based carrier missile. wife. •

China Reconstructs Renamed China Today

China Today is the new name of China Reconstructs, the general interest monthly founded by Soong Ching Ling (Mme. Sun Yat-sen) in 1952. Starting with the January 1990 issue, the magazine will use the new name, but continue to provide readers with varied, colourful and informative articles about China and its people. The 72-page illustrated monthly still presents news, features, regular columns and up to 20 pages of colour pictures, plus many black-and-white ones. It is pubUshed in seven languages—English, French, Spanish, Arabic, German, Portuguese and Chinese, and in eight different editions. The extra North American English edition is printed and distributed in the United States. The Arabic and Chinese editions are printed and distributed in Egypt and Hong Kong respectively. China Today is distributed worldwide to 153 countries, plus Hong Kong and Macao. China Today Press (formerly China Reconstructs Press) also continues to publish and distribute books, art and photo albums, postcards and audio-visual materials. We welcome subscriptions and advertisements in China Today! China Today (formerly China Reconstructs)

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28 BEIJING Rfi<»n:tv; FEBRUAHY 12-18,1990 FORM THE CHINESE PRESS old industrial centre of Shang• hai, the newly emerging econo• mic province of Jiangsu, and Science Helps Change Farmers' Lot Liaoning and Shandong prov• RENMIN RIBAO oriented carpet factory and inces each buy more than 10 mil• (People's Daily) planned to send 23 people to a lion tons of coal from the prov• TT Tnder a new practice in seven-month course to learn the ince annually. I Qidong County in soutti carpet-making business. The cost In the past four decades, the China's Hunan Province, to send each worker was about state has invested 13 billion yuan groups of farmers have been 1,000 yuan, an amount quickly in the province's coal mines and sending some of their educated raised by the local technology- turned Shanxi into the biggest youth off to study new farm• learning groups. Later, after they energy centre in China. Datong, ing techniques. Afterwards, the came back, the 23 young workers Yangquan, Xishan, Luan and young people pass along what taught the others what they had Jincheng have become large coal they have learned and everyone learned. Today, the factory em• centres with an annual output of benefits in the battle to get rid of ploys 130 workers and produces more than 10 million tons. Adv• poverty and become affluent. 300,000 yuan worth of carpets anced technology and manageri• In the past three years, about annually. al expertise have been adopted 500 groups of farmers have tried (December 13, 1989) for the Antaibao Opencut Coal this method which has proved Mine in Pingsu, a Sino- effective in promoting rural eco• American joint venture. Town• nomic development. China's Leading ship coal mines which started With economic reform in rur• when China adopted the policy Energy Centre of reform and opening to the al areas, Qidong farmers realized outside world a decade ago have The value of science and technol• CHENGXIANG KAIFA ogy, and many learned new (Urban and Rural Development) opened a new chapter in the de• techniques for farming, animal velopment of Shanxi's coal in• breeding and the processing of fter four decades, Shanxi dustry. In 1989, output of town• farm produce at their own ex• Province has become the ship coal mines reached 96 mil• pense. Though eager to learn new A most important energy lion tons, for the first time techniques, some farmers could centre in China. surpassing the output of coal not because of shortages of funds Statistics show that one in four produced under central plan• and labour. They decided to get industrial enterprises in China ning. together and formed what relies on coal provided by Shanxi Since the policy of reform and they called technology-learning Province; 25 percent of China's opening to the outside world was groups. The groups not only paid revenue is linked to coal from introduced, the output of Shanxi the expenses of those sent to Shanxi; 500,000 tons of coal per coal has increased 2.5 times and learn new technology but also en• day are shipped out of the prov• that for 1988 amounted to 246 sured that the work at home was ince and an average of ten trains million tons. During the period, done while they were away. are used to transport Shanxi coal China saw an additional increase Last March, six farmers of every hour. The trains pass the of 330 million tons of coal, and Liuya Village wanted to attend a Beijing-Baotou Railway in the that from Shanxi accounted for course in Yueyang City on the north, cut across Fenglingdu in 45 percent. cultivation of edible fungus. Be• the south, go beyond the Niangzi Shanxi Province also supplies cause it was the busy spring Pass in the east and cross Yu- electricity to other parts of the ploughing season, nobody could menkou in the west. Thirteen country. With 3 million kw of afford to be away so they decided thousand trucks loaded with newly equipped generators, the to send an educated young farm• Shanxi coal speed along the 12 province supphed 58 times more er to the course. While he was main highways from Shanxi to electricity to the Beijing- gone his farm work was done by other parts of the country. Tianjin- grids over the the other farmers. When he re• Since the founding of New past ten years. Electricity trans• turned, he taught them what he China in 1949, coal shipped out mitted from Shanxi to other had learned, therefore helping of Shanxi has topped 2 billion parts of the country exceeded 6 all six farm households rise tons. Eight out of 10 tons of coal million kwh in 1989, making it above poverty. transported from coal-producing the biggest power supplier in In 1987, Chengguan Township areas to various parts of the China. decided to set.up_an export- country come from Shanxi. The (Issue No. 84)

BEIJING REVIEW, FEBRU*|^X.12-18, 1990 BUSINESS/TRADE

of considerable scale, the an• Donnell Douglas-82s in 1990 as Shantou: nual handling capacity of Shan• well as more than 100 other jum• 100 New Projects tou Port is about 2 million tons bo jets, the most sophisticated and air routes to Hong Kong, available in the world by the hantou, a city in subtrop• Bangkok, Singapore and a dozen year 2,000 in order to improve ical Southeast China, re• of domestic cities have opened service. S cently offered 100 new up. Most foreign investors, hav• Although China boasts nearly joint venture projects to for• ing economic returns, have ex• 200 planes, some 97 civilian air• eign businessmen, ranging from panded production scale and in• ports and opened more than 360 a large ethylene project, aquatics creased their investment. Only international and domestic air preservation, a ground satellite two foreign-funded enterprises routes, it is still unable after the station and traditional pottery broke contracts because of poor 40 years of the constructions to and porcelain factories to agri• management. meet the increasing needs of pas• culture and light, mechanical, Granting more favours to senger and cargo transportation. medicinal, building materials investors in addition to the pre• More than 30 planes were put and food industries. ferential state policy has made into service in 1989, 20 of which The city's special economic Shantou more attractive. Re• were purchased from abroad. In zone for overseas investors, has cently the administration com• addition, China invested 2.1 bil• demonstrated a healthy vitality mittee of the special economic lion yuan in renovating and after eight years of continuous, zone decided that land prices for building over 20 civilian airports steady development. foreign industrial projects would including international and Last year, the special econo• decrease 5-10 percent below that domestic air routes such as Har• mic zone started 138 new foreign of the previous year to support bin (China)-Khabarovsk (the funded projects having a value the development of small indus• Soviet Union) and Chengdu of US$121 million. In addition trial districts. in China's Sichuan Province- to a large number of small and Shantou is one of China's most Changchun in norheast China. medium-sized projects, 11 ov• densely populated areas and pos• In addition to the purchase of erseas investors have invested sesses abundant labour re• planes in 1990, China also plans US$21 million in developing the sources. With a comparatively to open international air routes zone area by area. There are high cultural standard and lower to Egypt, Indonesia, Nigeria, now 283 joint ventures and co• cost (only one-fifth that of Hong Bangladesh, Sri Lanka and oth• operative and foreign-owned en• Kong workers). Under such con• er countries. Meanwhile, China's terprises in the zone, one-third ditions, foreign businessmen en• comprehensive, long distance, of which are exclusively foreign- joy high profits in assembly in• ticket ordering centre for owned business. dustry for foreign customers and both international and domes• The authority of the special by way of compensatory trade. tic scheduled flights will begin economic zone strictly imple• Shantou Special Economic operation on July 1 of this year. ments all contracts and ensures Zone has 52.6 square km of land by Li Ming the legitimate rights and in• available for development. At terests of investors. For ap• present, only one-eighth has proved foreign enterprises,' it been developed and so there is was recently re-emphasized that a much opportunity for foreign contracts would continue unaf• investors. • Sino-US Venture in fected despite any problems re• Container Industry sulting from the revision of state regulations. The investment and ince China's first Sino- managerial environment has in• China Purchases foreign harbour joint- stantly improved due to efforts S venture, the Nanjing Iner- of all sides. The correct policy New Planes national Container Loading and of developing support services Unloading Co. Ltd., started bus• while projects are under con• u Yizhou, director of the iness two years ago, the contai• struction gives investors a guar• Civil Aviation Admin• ner shipping business has ex• antee of workshops, water and H istration of China panded its connections to more electric supply, transport, tele• (CAAC) announced that China than 40 harbours around the communication and, life services plans to buy 19 jumbo jets in• world. In 1989, the number of and amusement facilities. Now cluding Boeing-747s and Mc• containers handled at the port

30 BEIJING REVtt:W,.t^EBRUARY 12-18, 1990 BUSINESS / TRADE

reached over 20,000 standard 1989 import and export value technological imports with for• containers, a 6-fold increase over totalled US$81.55 billion. Of eign countries involving com• 1988. The 1989 revenue was more this total, exports were worth munication, electric power and than 3 million yuan, a 5-fold in• US$43.28 billion, an increase of raw materials having a total val• crease compared with 1988. 6.5 percent over 1988 while im• ue of US$2,926 billion in 1989, The Nanjing International ports were worth US$38.27 bil• Liu added. The number of ap• Container Loading and Unload• lion, a 3.9 percent increase. proved contracts and their tran• ing Co., a joint venture between There was a favourable balance saction volume were reduced by China's Nanjing Harbour and of trade worth US$5 billion and 25 percent and 18 percent res• the US Encinal Wharf Co., has a contributed to the large increase pectively because of economic registered capital of US$3 mil• in the country's foreign ex• sanctions applied by some West• lion. The Chinese side provides change reserve. ern countries and the reduction such facilities as wharves, stack• Over the past year, MOERT of foreign loans to China. ing area, warehouses, container spokesman Liu Xiangdong said, Technological exports devel• loading and unloading lines and China's trade with Hong Kong oped rapidly. China concluded personnel etc., while the US side and Macao basically remained 168 contracts with foreign coun• provides advanced equipment at the 1988 level, while trade tries for technological exports in hke computers. with the United States increased 1989. The total export value was Since the company was esta• by 13.7 percent. In the first 11 US$879 million, an increase of blished, its business scope has months of last year, for continuously expanded, spread• example, the value of ing across six provinces and ci• China's trade to the Eu• ties and along the middle and ropean Economic Com• lower reaches of the Changjiang munity rose by 4.9 per• (Yangtze) River. It has forged cent and to the Soviet business ties with over 100 for• Union by 28.9 percent eign trading firms, opened up while trade to Japan container navigation routes dropped by 5 percent. from Nanjing to Hong Kong, Generally, trade with and Nanjing to Kobe and Yoko• most other countries hama of lapan, and made bus• grew at varying rates. iness relations with over ten countries and regions including The mix of imports Japan, the USA, Western Eu• and exports, however, improved. The propor• All of the high quality, Westem-style clothes, rope, Australia and Hong Kong. produced by the Xinghua Qothing Co. in the The result of the good co• tion of industrial prod• ucts among exported Jiangzhou aiea, Dalian City, are exported to Ja• operation between China and pan. XUE CHAO the US is the decision by both commodities, for inst• sides to the company to extend ance, soared to 71.6 percent, but 26 percent and 405 percent res• the time of the contract from the the proportion of primary prod• pectively over 1988. Exports original 15 years to 25 years. • ucts dropped. In imports, the were mainly complete sets of proportion of imported key technological equipment involv• equipment and raw materials ne• ing machinery, electronics, cessary for production rose, chemical industry, agriculture while imports of high-grade con• and textiles. Foreign Trade sumer goods were limited. Spe• Liu is confident that China's cifically, the import value of foreign trade will further devel• Increase in 1989 high-grade consumer goods de• op in 1990. He added that with creased overall by 20.3 percent. the economic rectification and espite the turmoil in Bei• Of this figure, the import value consolidation, China's export jing and consequent sanc• of cars went down by 54.2 per• base will be further streng• D tions adopted by Western thened. Imports are also expect• cent, TV colour sets by 56.3 per• countries, China's foreign trade cent, washing machines by 95 ed to develop apace with the in• still grew strongly in 1989. Sta• percent and refrigerators by 15.5 crease in exports and its foreign tistics of the Ministry of Foreign percent. trade value is expected to exceed Economic Relations and Trade that of the 1989. (MOERT) show that China's China signed 328 contracts for by Yao Jianguo

BEIJING REVIEW, FEBRfiA^X IZl*, 1990 31 CULTURE / SCIENCE

Cutting Pictures on Photo Paper woman painter from in southern China. The Maiden Jiangsu Province in east• and Her Straw Hat sketches A ern China has mastered a the purity and tenderness of a new art form after two years girl standing with her back to of research. Zhao Yili, 31, uses prying eyes. The Consciousness coloured photographic paper as of Hunting allows the viewer to a background for im- ages she cuts into the paper. Zhao colours the ^^^B photographic paper by allowing it to be ex- posed to light in the darkroom. The length of exposure dictates the background colour. She ^HH then uses knives to carve out the image her HjH creative whims seek to express. Often her pic- I^H tures have just three H^H colours, black, white and gold or red—care- fully cut silhouettes in Unlike ordinary ^ painting styles, which ZHAO YILl Lotus at night. ZHAO YILI express their artistic concepts let his imagination capture the a new road for herself and by piling colours on to the can• hunter's life in the United been highly praised by many vas, cutting images on photo• States' West. The viewer sees experts. Many lovers of her graphic paper goes into the op• the tools of hunting—a rifle, a work have written to her seek• posite direction by cutting straw hat and a pair of specta• ing instructions and advice. through layers of colours. How• cles. Zhao said future subjects in ever, Zhao's artistic creations Zhao, an art designer with also share characteristics of or• the Changzhou Tape Recorder her artistic creations will be dinary painting styles, such as Factory in Jiangsu Province, about life, love, the human the artistic concepts of trad• is currently a member of the body and rural life. itional Chinese painting, the province's Young Artists Asso• A well-known artist once colours of oil painting, con• ciation. Instead of going to re• commented: "Though no deci• trasts as shown in silhouettes, gular art schools, she has parti• sion has been made as to which and also the sense of reality of cipated in correspondence category cutting pictures on a photograph. and television teaching pro• photographic paper belongs to, Zhao's artistic works come in grammes and training classes. it has been appreciated and ac• a variety of styles. Return at However, with her keen in• claimed since its appearance Dusk, depicts the peacefulness sight, rich imagination and re• and will have a bright future." in a region of waters and lakes fined art skills, she has opened by Li Ming

32 BEIJING REmW; "FEBRUARY 12-18, 1990 CULTURE/SCIENCE based on overall analyses of the illness and the patient's condi• tion, doctors rely mainly on trad• itional Chinese medicine with the support of some Western medicine for treatment. For all examinations and diagnosis, however, they use advanced medical apparatus and instru• Retina Pigment Degeneration ments. The hospital's ophthalmolo• Treated in China gists began study and treatment of degeneration of retina pig• ment after considerable progress they made in treating cataract with acupuncture therapy, and optic-atrophy and keratitis with traditional Chinese medicine he news that Chinese No progress had been made in therapy in the early 1960s. ophthalmologists at the clinical treatment of degener• One patient, a navy admiral, TBeijing Guanganmen Hos• ation of retina pigment since is a successful example. Doctor pital of Traditional Chinese 1853. With the development of Tang Liangchen used Chinese Medicine are treating patients of ophthalmology, many diseases medicine to treat him and af• retina pigment degeneration has which cause blindness are now ter treatment for more than 20 traveled fast. In recent years, the treatable, but the proportion that years, his vision was restored to Guanganmen Hospital has not retina pigment degenerations to 0.6 and has since remained at the only given treatment to patients blindness has continued to grow. level even though he is now 70. from Beijing and other parts of The number of patients suffering According to Dr. Li, the Guan• the country, but has received from such disease in Japan is be• ganmen Hospital now uses the many letters soliciting medical tween 40,000 and 50,000 and has following comprehensive thera• help from Greece, Iran, Thai• left ophthalmologists there quite pies in clinical practice. land and other countries. Most at a loss as to the best form of Traditional Chinese medicine. recently, on December 29, 1989, treatment. Based on the patients' conditions, six Japanese patients returned After their treatment in Bei• doctors will ask them to take a home after receiving three jing, however, 65 Japanese pa• variety of medicines including months of treatment at the hos• tients improved their vision, and decoction, pills, powders and ta• pital. 47 of them had demonstrably blets. Since November 1988, some 70 better visual field. In addition, Auxiliary medicine treatment. male and female patients from such symptoms as diabetes mel- This is the use of medicinal Japan have come to Beijing in litus and anaphylactic colitis, aids to improve patients' micro- three groups to receive treatment which degeneration of retina pig• circulatory functions. The re• at the Guanganmen Hospital for ment patients often have, were sults of study and clinical prac• degeneration of retina pigment. alleviated. Sixty-nine patients in• tice show that the ideal medicine Among them, 17 had suffered dicated a desire to come again to is a injection made of radix sal- from the eye disease for over 30 Beijing to continue treatment if viae mitiorrhizae, rhizoma ligus- years and 28 for 16-30 years. necessary. tici chuanxiong and radix puer- Nearly one-fourth had associated The Guanganmen Hospital, a ariae. complications such as cataract. key hospital attached to the Acupuncture. Pinking eight Degeneration of retina pig• Chinese Medical Research Aca• points near the eyes and other ment is one of many hereditary demy, has a department of parts of the body has achieved diseases and the illness of some ophthalmology established in good effects. Based on the pa• patients has been tied to the 1955, which has become known tients' conditions, the doctor will problem of family inbreeding. because of its successful combi• give acupuncture treatment on Patients first begin to suffer nation of Western and tradition• two or three points at each treat• from night blindness, hypopsia, al Chinese therapies. ment session. After the patient contraction of visual field and, Under the guidance of a diag• feels sensation at the acupunc• finally, loss of sight in both eyes. nostic and treatment theory ture points, the needles are kept

BEIJING REVIEW, FEBRUjffly 12-18, 1990 33 CULTURE/SCIENCE at the point for about half an ing breathing is considered good Most ophthalmologists of the hour and twirled every 10 min• for the treatment of eye diseas• hospital have received both trad• utes. In recent years, doctors es. Self-exercises for regulation itional and modern medical edu• have often used what is called of breathing include standing cation and so have rich experi• the "plum-blossom" acupuncture and sitting posture as well as eye ence to fall back on in treating therapy to satisfactory results. exercises. eye diseases. In the future, they Massage therapy. According to Doctors of the Guanganmen hope to supplement this with traditional Chinese medical theo• Hospital say that the final break• ry, there are 12 channels and col• through in the treatment of de• wide contacts with foreign laterals of sensation in human generation of retina pigment de• ophthalmologists. body. The clinical results indi• pends on an improvement in ge• The latest results of treatment cate that degeneration of retina neral medical science and the for degeneration of retina pig-, pigment is connected with prob• joint efforts of Chinese and for• ment will be read at the 1990 lems in the liver. Doctors mas• eign medical personnel. They in• international symposium on sage the patients' related chan• tend to continue to combine traditional medicine organized nels and collaterals for 15-30 traditional Chinese and Western by the International Society of minutes each day. therapies in treatment of this Ophthalmology. Breathing techniques. Regulat• problem. by L. Y.

The finding has excited many Chinese archaeologists and historians. Shen Zhu, de• puty chief of State Administration for the Shang Artifacts Found Protection of Cultural Relics, led a group of renowned experts to the excavation site in ever before have so many Shang Dynas• October. ty (16th century—11th century BC) They said that they have not yet deter• N bronze wares been found in Jiangxi, a mined if the site was a burial ground or a southern province far from Central China's site for ritual ceremonials. Henan Province which was considered the But they noted that such excellent bronze home of the Shang civilization. wares had never been found before in South Archaeologists in Jiangxi Province discov• China. Some of them were apparently lo• ered a trove of more than 300 bronze pieces, cal products with Southern characteristics. nearly 100 jade ornaments, about 40 pottry These works may shed light on the hfe and wares and other artifacts last October in Day- culture of South China during the Shang angzhou, Xingan County, after local farmers period. reported finding some artifacts. Chinese history books have long deemed The farmers were digging for sand on barren that the people south of Yangtze River in land when they found several ancient objects. this era were barbarians. The finding in The Jiangxi Provincial Archaeology Institute Xingan County may change this notion. immediately rushed to the scene and began Earlier, scientists discovered Shang Dy• excavation in October. nasty ruins 20 kilometres away in Qingjiang The excavation in a pit 15 metres long and 9 County, but the evidence they found there metres wide has uncovered an array of bronze was too meagre to present a clear picture. wares, including pots, wine containers, animal Since the new discovery was made known masks, plows, stoves, spears, arrowheads, and to the public, many people went to the site halberds. to satisfy their curiosity. The influx of visi• The Shang Dynasty is noted for its splendid tors posed problem to relic protection and bronze culture. Some of its smelting and cast• research. Now Jiangxi Provincial Archaeol• ing technology continues to puzzle modern ogy Institute and the county government engineers. have erected a bamboo fence around the It is believed Xingan County was merged excavation site. into the Shang map some 3,200 years ago. by Lai Houxiang

34 BEIJING REVIEW, FEBRUARY 12-18, 1990 Fu Hong's Chinese Paintings

Born in Liaoning Province in 19A6, Fu Hong, now in charge of a Beijing art studio, undertakes not only fine art creations but also both oil and Chinese paintings. These are some of his favourite Chinese landscape paintings.

The Sun Sets in the West.

ART PAQE

A Mountain Road. Morning at a Riverside Village. ZHEJIANG SILK

CHIC & ELEGANT

China National Silk Import & Export Corporation, Zhejiang Branch 55 Tiyuchang Road, Hangzhou, China Tel: 554249 Cable: "ZJSILK" HANGZHOU Telex: 35016 TZCSBCN Fax: 558411