A CHINESE WEEKLY OF NEWS AND VIEWS ev

: No Change in Party Policies Yang Shaoming HIGHLIGHTS OF THE WEEK Review vol., 30 NO. 5-6 FEB 9. 1987 CONTENTS NOTES F80IVI THE EDITORS EVENTS/TRENDS Creeling Year ot* Rabbit No Political Campaign To Be l.aiinchcti NPC Scheduler a New Session Prices to Be Kept Stable in 1987 Wang Mcng; Cultural Policies to P16 P- 17 Continue Journalist Loses Party No Change in Party Policies Membership . Retired Scieniistis Active A.s Ever • Addressing a recent Spring Festival get-together in , 'Liberation" Achieves New ruled out the possibility of a political campaign Liberation against liberalization and reaffirmed Party leadership as the Weekly Chronicle (Jan. 19-F-eb. I) core of power in the country (report on p. 6 and full text on p. ilSlTERNATiONAL 12-15 26). Latin America: A Tour For Central America Peace Deng's Speecli on tlie Four Principles OIC: Understanding Thaws • Text of a speech by Deng Xiaoping eight years ago in which Relations he first expounded the four cardinal principles stressing their USA: US Dollar to Remain in the absolute necessity (p. 29). Shade France-Australia: New Changes in Viet Nam Urged to Withdraw bilateral Relations Netherlands-Surinam: Relations • In interviews with Sefj'wg/?ei'/eu'correspondent towards the Going From Bad to Worse end of last year, leaders of Democratic Kampuchea Khieu 8-Point Proposal—Hanoi's Samphan and Son Sen analysed the situation in their country Only Way Out IB and called on Hanoi once again to accept the 8-point proposal Vietnamese Invaders' Plan for a political solution to the Kampuchean question Falls Flat 17 (pp. 16-17). Tertiary Industry Takes Off Greeting the Year of Rabbit In 18 Applying and Developing 22 • As the clock struck 12 Midnight on January 28, the Chinese Cliina's Roie in Human Rights people saw off the Year of the Tiger and welcomed the Year Field 23 of the Rabbit amidst a prolonged, deafening burst of Facts and Figures: Retail Prices firecrackers and fireworks. What better way to enjoy Spring Up 6 Percent Last Year 24 Festival than to relax with one's family, join in parties and Zhao ZIyang on the Two Basics games, or even get married! (p. 5). Of the Party Line 26 Deng Xiaoping on Upholding the Tertiary Industry Takes Off in China Four Cardinal Principles 29 CHINA CALENDAR 25 • Since the early 1980s, China's flagging tertiary industry has FROM THE CHINESE PRESS 37 begun to revive with the development of the socialist BUSINESS/TRADE 38-39 commodity economy, the need to improve people's living CULTURE/SCINECE 40-41 standards and the adoption of flexible policies and measures. LETTERS 42 However, further efforts are necessary to develop the tertiary COVER: Ceiebraltng the festival. industry at a rate commensurable with that of the primary and Yu Fuhua secondary industries (p. IX).

Sybiishetl every Mondoy by General Ed^ortal Office Tel: 893860 US$22.00 ETSiish Oepgrlment Tel: 890951-546 SSJtNG Austratia A.$22.00 Canada Can.$21.00 DHtfibuted by Chino Intemotionof ftook a 6oiw£ifl2hi»aiig Road, Beijing Trading Corporation (GUOJt SHUDtANJ New Zealand NZ.$30.00 The f'eopJe^s R©pyi>lic of Chtna P,0. 80X 399, Bei(iBB;fefl>P# UK £12.00 •i NOTES FROM THE EDITORS Policies Unaffected by Expulsions by An Zhiguo ver the last few weeks, three Fang also made many speeches continue to help them correct their O well-known Chinese against socialism at universities in mistakes and do useful work in intellectuals — . a Beijing, Shanghai, Hangzhou, their field as honest citizens. Shanghai-based writer. Fang Ningbo and . In a speech at The criticism and expulsion of Lizhi, an astrophyscist and Ningbo University last Novem• the three was long overdue. The recently dismissed vice-president ber, he said that "the orthodox delay was a manifestation of a of a Hefei university, and Liu socialism, from Marx and Lenin recent lack of firmness on the part Bingyan, a writer and reporter to Stalin and Mao Zedong, as it of certain party organizations working for the People's Daily in has developed into what it has and comrades in dealing Beijing — have been openly criti• become today, is a total failure." with an issue of major political cized and expelled from the principle. Yet the handling of the Communist Party of China three cases at more or less the same (CPC). Expulsions of disqualified time have aroused suspicion that members are part of normal Party (China's major policies the CPC is planning a purge of life. During the past year, the CPC remain unchanged as it intellectuals. has expelled hundreds who were found guilty of corruption or carries on a struggle in Recent statements by Party political degeneration. But it was political and ideological leaders have made it clear that the Party's handling of these three spheres within the only those who defied Party people who were charged with discipline, made serious mistakes advocating "bourgeois liberaliz• Communist Party. and caused great harm, should be ation" that has drawn much punished by the Party. Such comment from the Western He called for "total Westerniz• people are extremely small in media. ation," "including Westernizing number. Some newspapers described it China's political system and China will continue to imple• as a "crackdown on liberal ownership [of the means of ment its policy towards in• critics," "an assault on intellectual production]." (For details, see tellectuals and follow the policy of freedom," and an attempt to Beijing Review, No. 4. pp. 6-7) "letting a hundred flowers bloom, "control dissent" and "mute pro- Liu attacked socialism and letting a hundred schools of democracy opinions." In my other cardinal principles ad• thought contend." But all debate opinion, these are misinterpret• vocated by the Party, calling them and activity should be conducted ations of events and are based on "outdated," "conservative," and within the confines of the an instinctive sympathy for any "even reactionary." (For- more Constitution and the law. proponents of capitalism that details, see pp.8-9) China will keep its doors still emerge in a socialist country. The three were also censured for more widely open and carry on its attacking the leading role of the What is meant by "bourgeois economic and political structural liberalization?" A resolution CPC and other activities. For reforms. The fight against "bour• adopted by the CPC Central example. Fang Lizhi was condem• geois liberalization" will only be Committee last September defines ned for inciting student vnrest waged within the Party, mainly in it as "negating the socialist system because of his demagogic speeches political and ideological spheres. in favour of capitalism" — a on the campuses. Experiments in the economic transgression for which Wang, The CPC never imposes reforms, such as the shareholding Fang and Liu have been criticized. communist doctrines on anyone, system and the renting out of In the last few years. Wang nor does it force anyone to join the smaller state enterprises to wrote a number of articles and Communist Party. Wang, Fang collecfives and individuals, should made speeches on many occasions and Liu were admitted into the go on and will not be misconstrued attacking socialism and praising Party only after they had applied as "bourgeois liberalization." capitalism. At a forum in for membership. Now they have Extreme measures will not be Hangzhou last year, he described gone back on their pledges of taken to combat harmful trends. China's socialist system as an loyalty to the Party, and have The CPC and the Chinese people "illusion." saying that the capita• violated Party Constitution and have suffered too much from list mode of production is Party rules and discipline, their excesses in previous political something "most badly needed in expulsions thus became inevitable. movements to ignore their histor• China." Nevertheless, the CPC will ical lessons.

BEIJING REVIEW, NOS. 5 & 6 EVENTSARENDS

Greeting Year of Rabbit

or several days, the entire kilogrammes of fresh pork were F nation was full of cheer, with sold every day, 80,000 kilo• laughter, the aromas of wine and grammes more than usual. And 5 special holiday food and the million kilogrammes of aquatic deafening sound of fireworks products appeared on the market. Granny and me at a temple celebration. permeating the air. In traditional People stood in line to buy luxury forms, the Chinese people food items such as sea cucumbers celebrated the coming of the Year and squid, which they seldom the ancient emperors of China of the Rabbit, the first day of consume at ordinary times. A used to offer sacrifices to the earth which, on the Chinese lunar retired woman in a market said her deity was larger in scale and calendar, falls on January 29 this family of six would spend 200 presented greater variety than in year. yuan for the festival — the equiva• the two pervious years. There were Artists had prepared colourful lent of half of her family's total more than 500 stalls in the park performances for holiday makers monthly income. with some 1,000 different items of and almost all theatres had With gifts in hand, and wearing local delicacies to sell and scheduled plays, concerts, dancing new clothes, some Beijing resi• traditional arts performances to and various kinds of local operas. dents visited relatives and friends show. Visitors were attracted by The Central Television Station while thousands of others flocked whistling windmill toys, magicians presented a 4.5 hour-TV pro• to traditional fairs held at the and clowns, while their appetite gramme which attracted more city's temples. responded to the variety of than 400 million viewers across the Fairs of this type date back to traditional foods, including Guan- country on the eve of the Spring the Ming (1368-1644) Dynasty. At chaiig, sausage casing stuffed with Festival. tasty batter. Fair-goers could also that time, there were more than watch artisans making clay The festival atmosphere this 2,700 temples in Beijing figures, listen to storytellers and year was intensified by busy where annual festivals were sample typical north China shoppers in food stores, depart• celebrated. "The temple fair is an delicacies. ment stores and groceries, as fish, example of our efforts to revive the fruit, meat, clothing and electrical capital's colourful traditions," Lively fairs were also held at household appliances appeared in said Chen Haosu, vice-mayor of Baiyunguan Taoist Temple in abundance on markets. the city. western Beijing and at the Grand According to Beijing municipal This year's fair at Ditan park in View Garden in the Xuanwu commercial department. 130,000 the northern part of the city where District.

FEBRUARY 9, 19&7/ 5 m EVENTSARENDS

NPC Schedules A New Session

he fifth session of the Sixth T National People's Congress (NPC) is to be held on March 25 this year. The decision was made on the closing day of the 19th meeting of the NPC Standing Committee in Beijing on January 22. The proposed agenda of the session includes hearing the government's work report, re• viewing the plan for 1987 national economic and social development, and examining the implement• ation of the 1986 state budget and approving 1987 state budget. The session will also examine a A grand Spring Festival gathering at the Great Hall of the People. draft law on state-owned in• dustrial enterprises, and a draft decision on the number of deputies to be elected to the In the evening, a grand spring both sides of the Taiwan Straits Seventh National People's Con• festival gathering was held at the celebrate the lunar New Year, the Great Hall of the People. More All-China Federation of Taiwan gress and other electoral matters. than 20.000 Beijing residents, Compatriots sent a message of A decision to reinforce legal including Chinese Party and state greetings to Taiwan residents, education and maintain stability officials, tried their skill at saying, "We sincerely hope people and unity was adopted at the electronic games, enjoyed theatr• on both sides of the straits would meeting, which says, "All Chinese ical performances, or got involved strengthen contacts, understand• government institutions and state in chess or bridge games. ing, and friendship in various functionaries shall strictly abide At the time when people on ways." by the law, respect and protect the

He said. "In accordance with No Political Campaign to Be Launched the Party Constitution, discipli• nary action will be taken against a hina will not launch a conducted in rural areas while in very limited number of Party politicalmovement to oppose enterprises and institutions the C members who have committed bourgeois liberalization, said task will be handled in the form of serious mistakes causing grave Zhao Ziyang, acting general study and self-education." consequences and yet refuse to secretary of the Chinese Commu• He added, "Just like reform, observe Party discipline." nist Party Central Committee and and the implementation of the premier of the State Council while policy of opening to the outside He stated. We will not hurt, but addressing a Spring Festival world and invigorating the will sincerely try to unite, the gathering at the Great Hall of the domestic economy, the struggle overwhelming majority of People on January 29. against bourgeois liberalization people." calls for long and sustained Zhao said, comprehensive re• Zhao said, the current work of efforts." form, opening to the outside opposing bourgeois liberalization Even in the political and world, invigorating the domestic "will be strictly limited within the ideological fields, he added, economy, as well as the policy of and opposition to bourgeois liberaliz• respecting knowledge and trained will be mainly carried out in the ation is, in essence, centred on personnel will not be changed, and political and ideological fields. education in political orientation instead, we will work hard to make Nothing of the sort will be and principles." them better. •

6 BEIJING REVIEW. NOS. 5 & 6 righ,ts to freedom and democracy says "no organizations or indiv• range set by the government be provided by the Constitution, and iduals have the right to override increased. no one shall, by any means, the Constitution and the laws, and An official of the State Price disturb the social order, work, any act in violation should be dealt Administration (SPA) said on production, teaching, scientific with accordingly." January 16 in Beijing that to research or the social aspects of Also approved at the meeting realize a basic balance between people's daily life." was a new customs law. "The old supply and demand, the state will The decision stated that the provisional customs law pro• enhance and improve the manage• move is aimed at "developing mulgated in 1951 will be nullified ment of the national economy. socialist democracy, improving when the new law goes into effect The scale of investment on capital the socialist legal system and on July 1," the NPC Standing construction and the issue of maintaining political stability and Committee announced. • currency will be tightly controlled. unity so that economic and It is most important to keep prices political reforms can be carried basically stable. out in a systematic way under the To stabilize retail prices, the leadership of the central official said, prices of all products authorities." Prices to Be Kept will be kept at their present level except those of a few products Upholding the four cardinal Stable in 1987 which are abnormally low and principles (adherence to the would otherwise seriously affect socialist road, the people's production. democratic dictatorship, leader• hina's State Council has Cordered tighter control to keep ship of the Communist Party, and Recently, a rumour spread in Marxism-Leninism and Mao prices basically stable this year. In a circular issued on January some places saying that prices of Zedong Thought) is the common many commodities will be raised political base for uniting the 14, the State Council said that commodity prices are a matter of from January 1 this year. "That is people of all ethnic groups in their a false statement which is just a development, the decision said. principal concern to China's overall economic and social conjecture on the part of some people." the official pointed out. "Democratic elections," it stability and to the immediate noted, "are the basis for pursuing interests of the masses. Prices of goods in free markets the principle of democratic As an important step in keeping are adjusted mainly through centralism in state organs as is prices stable this year, the supply and demand factors, so it is stipulated in the Constitution." authorities in major grain- difficult to control them. But if they are raised too The decision criticized practices producing areas may set ceilings high, departments in charge of in some localities where people's on the prices of grain they buy commodity prices will interfere. congresses have not been given from local markets. State and adequate power to perform their collectively owned grain purchas• The State Council's circular duties, and where some leaders ing agencies may not raise also called for a nationwide persuaded voters to elect or not purchase prices without approval. clampdown on illegal charges and elect certain candidates or even price hikes and the establishment refused to list candidates nomi• "The authorities in major cities of a national price inspection nated by voters. "All these should ensure the production and system to protect consumer practices arc in violation of the supply of non-staple food in order interests. Raising prices without Constitution and relevant laws to keep retail prices basically approval will be severely punish• and must be corrected," the stable," the circular said. Author• ed, the SPA official warned. • decision said. ities in big cities like Beijing, Shanghai and Tianjin may set The state protects the freedom ceilings on retail prices of major and rights of citizens with regard non-staple food items such as Wang Meng: Cultural to speech, publication, assembly, meat and eggs, it added. association, parade and de• This year, the circular said, the Policies to Continue monstration. But these rights government will not increase the should not be used to affect the number of goods whose prices are he Party's principles and interests of the state, society, determined by market forces, Tpolicies on literature and art collectives and individuals, the meaning those prices that are followed since the Third Plenary decision noted. allowed to fluctuate solely accord• Session of the 1 Ith Party Central It reaffirmed the prestige of the ing to market demand. Neither Committee in 1978 will remain socialist legal system, citing a will the number of goods whose unchanged, said Minister of provision in the Constitution that prices are allowed to float within a Culture Wang Meng at a meeting

[ EBRUARY 9, 1987 7 m EVENTSARENPS

allended by direclors of cultural He said. "We should learn from • Attention will be given to departments of various provinces, the advanced science, technology implementing state laws and municipalities and autonomous and managerial know-how as well decrees on the protection of regions. as the outstanding cultural cultural relics and actively streng• The meeting was held from achievements of capitalist coun• thening the use and management January 17 to 24 in Beijing. tries. But in no way should v\ take of cultural relics. "In the current struggle against the capitalist road. 'Complete • While ensuring the imple• bourgeois liberalization," Wang Westernization" is absurd in mentation of inter-governmental said, "it is natural for people to theory and harmful in practice. It i'igreements for cultural ex• show concern for whether the can never be implemented in changes, efforts will be made lo Party's principles and policies on China." increase the number of commer• literature and art will change. In cial perfoimances by Chinese my opinion, the principles and Wang stressed that Chmesc iroupcs in foreign countries. policies adopted by the Party at writers and artists should boldly • State prizes will be issued to the Third Plenary Session of the uphold the four cardinal prin• outstanding literary and art works i 1th Party Central Committee will ciples, adopt a clear-cut attitude in on an exneriniental basis. • remain unchanged."" opposing bourgeois liberalization, and make efforts to safeguard the He reiterated the principles and social and cultural atmosphere policies he stressed at a similar which is characterized by uni!\ meeting held in July last year. democracy and harmony, so as lo These include upholding the Journalist Loses promote the long-term and steady orientation to serve the people and development of cultur;jl ur.derta- Party Membership socialism. Lipholding the prin• king;.. He called on vvrilcrs and ciples of letting a hundred l1ov^ers ar!isl'^ to pay atteiUion to the bloom and a hundred schools of social i'csults of their works and iu Binyaf'. a staff reporter of thought contend, guaranteeing L pla> a greater role in fostering with People's Daily, organ of the freedom in writing and academic their ncii. co'ourifii o.nd hcaitliv CFC Centra! Committee, and discussion and encouraging ex• works a new gencrt!b>i'i uf people vicc-chairmaii of the Chinese ploration and creation of new with lofty ideals, sob,:vi ;:;or-.;i\l;,, Writers' Association, was expelled things and enhancing the people"s culturiil knowledge and ;; s:rise <:J from the Chinese Communist enthusiasm to keep forging ahead; discipline. rlv, according to a decision by taking social results as the highest : li'ic Party discipline inspection criteria for literary and art work; cii.nmittee of the newspaper. encouraging and commenting on The minister also ouilined tiic literary and art works that are following programmes tor !'v8'7: j • Tlie reform of pcrlormiiiL' rhc decision. which was conducive to socialist economic I :!nnoi-inced on January 24 by the construction and the development I art troupes should aim at breakijig I with C'>freme egalitarianisrri. cn- ! p._;t-i I principles as ""outdated, rigid and with Chinese characteristics. flavour in conneciiori Vviiii dogmatic concepts and wornout At the recent meetmg. the economic iind toiii'ist ai;'.i\!'ies phrases that have led China to minister explained. "These and sport compcii'loi". , calamines several times." He also policies are consistent and form a • I'ct)ple will be firos I'.lcu with said that the principles are very whole. It is what runs counter to a richer arid inore xancd cuUu.rLil good in wording but conservative the Party's principles and policies life in their leisisre lime through and even reactionary in content. on literature and art that we are concei'ts, tea parties, dances, video Liu attacked Marxism to which opposed to." tape shows and park acuvuies. the Party adheres as "outdated

s BFJ.iiN(i RHVIEW. NOS. 5 & 6 ideology," the decision said. He Relaxed in their otTices, 71- Fujian Province, he taught at also vilified the Chinese Commu• year-old Professor Lu and Profes• Xiamen (Amoy) University and nist Party as "having de• sor , aged 68, who directed the work of the Fujian generated" and he said that he was recently relieved of admini• Institute of Research on the wrote Between Man and Demon strative duties as Vice-President Structure of Matter before and Merits and Crimes Over One by the NPC Standing Committee, officially joining the CAS top Thousand Years in order to show discussed their future plans leadership. Both Lu and Yan hjve the truth, that is the degeneration together with the newly-appointed been long-time members of CAS. of the Chinese Communist Party. president, . Prof. Yan Dongsheng has been Liu gravely violated the journ• "I've never tried to be an researching for more than thirty alistic principle of respecting facts administrator alone," said Prof. years on inorganic materials. and cross-checking to make sure Yan, "even though for my last six After receiving his B.S. and M.S. facts are accurate, the decision years in the office I've been pretty Degrees at Qinghua and Yanjing said. In writing his reports, Liu busy. In fact I have often been Universities, he look up post• even went so far as to fabricate involved in various forms of graduate work in the United facts to attack the Party and international scientific collabor• States and obtained his Ph.D. at mislead readers unaware of the ation and academic activities. I the University of Illinois, return• truth. have already been invited to sit on ing to China in 1950 soon after the Liu also vilified the effort to the advisory committee of several founding of the People's Republic. encourage people to learn from international meetings. I'll prob• advanced individuals and collec• ably be lecturing in West Germany Speaking highly of the contri- tives as an attempt to "turn people starfing in May. We'll have bufions the two men have made in into servile tools." He refused to another bilateral meeting in the both scientific research and the accept Party leadership, saying United States in September, and administration of the academy. that for a journalist to accept as Vice-President of the Feder• Prof. Zhou Guangzhao. himself a Party leadership is degrading. ation of Asian Scientific Acad• theoretical high energy particle The decision says that Party emies and Societies. I have a physicist, mentioned in particular organizations criticized him for council meeting scheduled for this two crystals developed under their his mistakes on many occasions year, in Bangkok. So there is personal guidance at the Fujian but he refused to accept the plenty to do, in fact there is institute and the Institute of criticisms. Liu Binyan has totally probably still too much...." Ceramics in Shanghai. Both have lost the qualifications necessary found ready world markets. for Communist Party member• The two professors became the Barium Metaborate (BBO) ship, the decision noted. • president and vice-president of Low Temperature Form is a non• CAS in May 1981. In fact Lu Jiaxi linear optical crystal first devel• was the first natural scientist to oped in China, and Bismuth really take over the academy's Germanate (BGO), which is a very Retired Scientists administration. The noted his• useful scintillating crystal for the Active As Ever torian and archaeologist Guo detection of high energy particles, Muoro was president of the won first place in an international academy since its founding in 1949 competition in the United Slates ow that I've been relieved of but that was before the Chinese and is being exported to CERN in N my administrative work, I'll Academy of Social Sciences was Geneva for use in Prof. Samuel be able to find time to go back to established as a separate organiz• Tin's laboratory. Fuzhou to help the Fujian ation. Later, Fang Yi, then Vice- "I will continue to seek their Institute of Research on the Premier and a leading figure in the opinions and help on matters of Structure of Matter. We're Communist Party Central Com• science policy," said President developing new crystals in connec• mittee, was appointed the Zhou, adding that he hopes Prof. tion with new technology and in academy's president. Lu will continue his project for the field of transifion metal Prof. Lu Jiaxi, a well-known developing China's colour film clusters — the two fields I've been scientist in physical chemistry, industry in Xiamen. And for his rather successful in." This is one of received his Ph.D. in 1939 from contributions to closer interac• the things Prof. Lu Jiaxi plans to the University of London and was tions between scientific research do having retired from his post as doing post-doctoral work at the and industry. Yan Dongsheng wiH President of the Chinese Academy California Institute of Technology be invited to serve as an honorary of Sciences (CAS). He was talking when Japan surrendered at the end member of the Science and with Radio Beijing's reporter in an of World War II. In 1945 he was Technology Fund for Economic interview during the Spring among the first batch of Chinese Development soon to be Festival holidays. to return from abroad. A native of established.

FEBRUARY 9, 1987 EVENTS ARENDS II

The Fund is an outcome of the 'Liberation' Achieves j gramme against another, the policy CAS has pursued over the board decided to introduce a new past two or three years under the A New Liberation type of CA 141. They also decided leadership of Lu and Yan. I that they would fund the project According to Prof. Lu, the he 30-ycar history of the by continuing to produce the old academy has intensified its work Tuniformly drab-coloured Jie model. on applied research, and actively Fang (Liberation) lorry at last Thanks to the state's economic but selectively developed products came to an end when a long queue reform adopted since the early 80s, in specific areas to be put on the of CA 141s, in bright orange, sky- the auto works received a new world market. But it has never blue, cream, white and other lease on life and more say on its overlooked the importance of colours, chugged their way off the own trade and finance. Immense basic research, he says. "We are assembly line on New Year's dav changes in its production lines, putting them on a fairer basis," 1987. including the construction of 68 explained Prof. Yan. "The 1 new ones and the adaptation of 81 This second-generation "Liber• transition from basic research to old ones, bagan on July 15, 1983, ation" attracted many foreign applied research and finally to just as the factory was celebrafing businessmen when it was shown at developmental work takes less its 30th anniversary. In order to the 1986 Autuinn Commodities time than it used to." cover the expense of all these Fair in Guangzhou. Orders for changes, the plant had to increase more than 500 of the lorries were However, in Prof. Yan's view, its production capacity over a placed during the fair, setting a the overall reform of science and three-year period from 67,000 record in the country's automobile technology is not an easy thing lorries to 85,000. "It's pioneering exporting history. An Australian and he foresees many changes as work, even harder than the work auto dealer climbed into the the academy pursues its way in the we started 30 years ago." said driver's cab, inspected the facilities genera! direction set by the State Huang Zhaolan, the plant's carefully and said he found Council. He places great hopes on director. the new leadership, which he nothing inferior about them compared with the world's leading believes will develop new expe• But with the factory staff busy models assembled in the early riences in the general period of sweating away at the reforms,, they 1980s. reform. This reform, he predicts, failed to realize the mistake of will probably take quite a number This new lorry, which is safe, advertising their new products too of years to accomplish. efficient, cheap and comfortable, soon —at least before they could is manufatured by Changchun manage to sell enough of the "old" When the topic turned to the No. 1 Automobile Works, which models to finance the "new" ones. speculation in some international made China's first truck in 1956. After admiring pictures of the media regarding the professors' Since then more than 1.28 million second-generation bright retirement from the CAS top "Liberation" — half of all China's coloured 'oeauties, who would leadership, Lu Jiaxi said, "Feeling heavy-duty lorries — have been want to spend money on the rather exhausted because of the driven out of this plant. obsolete first-generation versions? heavy administrative work, I have been thinking of retiring from the The improvements in the As a consequence of this post for at least a couple of years." "Liberation," however, were slow- oversight, the price of the "old" "We've been working very hard," in coming. Apart from some lorries had to be cut by a margin of added Yan Dongsheng, "as the minor alterations, its basic model 14,000 yuan, and the plant's five academy is a very big one with had not been changed since the deputy directors hurried across more than 120 institutes and a 1940s. But effors to bring the the country to sell them. But even total staff of 80,000, half of whom lorry's design and construction then, problems persisted and it are scientists and engineers. But up-to-date were fraught with was the state's working loans that we've been working very happily difficulties, the most critical of rescued the programme. for the last two and half years." which was financial. The plant successfully managed The factory's executive board to shift from first-generation to As a lover of sports, Yan says invited several world-famous auto second-generation "Liberations" now he'll find more time to play Hants to give their diagnoses of the on schedule, de'spite several tennis, confiding that he's a problem. Their prescriptions for setbacks. And as the auto workers member of the "old timers" tennis six projects would have cost 2.3 watched the new lorries rolling off team." He also likes swimming. "I billion yuan, too much for a plant the assembly line, they smiled, think I'll try to add that to my supported by the state economy. feeling proud of their achievement agenda." • and inspired to possibly build Nevertheless, in July 1980. after several future generations of by Qingnian a carefully weighing one pro- "Liberation" lorries. •

10 BEIJING REVIEW. NOS. 5 & 6 Weekly Chronicle production, cutting expenses, separately with Robert Mugabe, raising economic efficiency and prime minister of Zimbabwe. (Jan. 19-Feb. 1) ensuring a sustained, steady and Mugabe is in China for a three- co-ordinated economic develop• day visit starting from January 19. POLITICAL ment. Jan. 21 Jan, 20 Jan. 27 A Foreign Ministry spokesman Vice-Premier declares says at a weekly news briefing that that opposing bourgeois liberaliz• A spokesman of the China the personnel change in the Party ation and increasing production International Trust and Invest• Central Committee will not affect and practising thrift are two major ment Corporation (CITIC) re• China's internal and foreign tasks China faces in 1987. veals that the CITIC (Hong Kong) Ltd. has been authorized to policies. Jan. 22 acquire 12.5 percent shareholding Vice-Minister of Foreign The 19th meeting of the NFC in Cathay Pacific Airways Ltd. Economic Relations and Trade Standing Committee approves the CULTURAL Zhang Haoruo reveals that three Customs Law. Jan. 19 sets of detailed rules will be ECONOMIC Renmin Ribao reports that promulgated to better implement Beijing has so far set up four the State Council's document on encouraging foreign invest• Jan. 19 special schools for mentally ment enacted late last year. Renmin Rihao (People's Daily) retarded children, one for the reports in 1986 China signed 744 blind and six for deaf-mutes, with A Foreign Ministry spokesman contracts for technology imports a total enrolment of 2,055. says that the Sino-Pakistan totalling US$4.4 billion in value. boundary agreement reached in Jan. 21 1963 has nothing to do with the Jan, 20 Xinjua reports the State Coun• status of Kashmir. cil has decided to set up a media Xinhua says the average per- and publications administration capita income in East China's Jan. 23 to strengthen leadership over prosperous Zhejiang Province Vice-Premier Tian Jiyun makes work in these areas. reached 1,037 yuan in 1986, 13.7 a four-point proposal for future Jan. 22 percent more than in 1985. development of Sino-Japanese Zhou Guangzhao and Teng economic relations while address• ing Japanese entrepreneurs in Jan. 22 Teng are appointed president and Tokyo. Xinhua reports the state will vice-president respectively of the invest 20 billion yuan to revamp 52 Chinese Academy of Sciences. key enterprises in northeast Former President Lu Jiaxi and Jan. 28 China. Vice-President Yan Dongsheng A contract is signed between the retired from their posts because of China Great Wall Industrial Jan. 24 old age. Corporation and the US Terasat Renmin Rihao reports China Inc. for launching a Westar-VIs has established a total of 7,738 Jan. 26. satellite to a geostationary trans• enterprises involving foreign in• Zhang Guanghou, noted fer orbit at China's Xichang vestment. Of them there are 3,210 Chinese mathematician, died at launcing centre with a Long Sino-foreign joint ventures, 4,390 the age of 50 in Beijing following a March-Ill carrier rocket in the Sino-foreign co-operative enterpr• long illness. first half of 1988. ises and 138 independent foreign enterprises. Feb. 1 Jan, 30 The State Economic Inform• Detailed rules foJ- the imple• Lawrence MacDonald, a ation Centre is inaugurated in mentation of the Weights and Beijing-based reporter for AFP, is Beijing, Fifth-two big- and Measures Law of the People's expelled from China after the news medium-sized computers have Republic of China are pro• agency refused the requirement been installed in its 37 computing mulgated and put into effect. put forward by the Information centres throughout the country. Department of the Chinese FOREIGN RELATIONS Foreign Ministry on January 26 to Jan. 25 transfer the reporter out of China The national conference on Jan. 20 as soon as possible because of his economic work decides the central CPC Central Advisory Com• recent activities that did not tasks for 1987 as deepening the mittee Chairman Deng Xiaoping accord with his status as a reform of enterprises, increasing and Premier Zhao Ziyang meet journalist.

FEBRUARY 9, 1987 Hi INTERNATIONAL

LATIN AMERICA backing of the contra rebels in Nicaragua. A Tour For Central America Peace Nicaraguan newspapers report• ed that Honduras, Costa Rica and El Salvador had refused the nine- Eight Latin American foreign ministers along with < idf-'f of K point Nicaraguan proposal, the United Nations ( UN) and the Organization of * . raeanwhiie, the Nicaraguan gov• States (OAS) toured Central America recent!) mi, * ),to ernment described the Honduran revitalize peace talks in the area. proposal as "unrealistic" and an "intervention." in Nicaragua's •nternai affairs. iO-mcmber peace mission (JMt nd Costa Jr. preparation for the peace , r. Amade up of foreign ministers r)ll 'I! ' talks to' a ,e . , on US A ,tanl Secretary of from the Contadora group bo 1 1 ^ontliet n t ) inter-American Affairs (Mexico, Panama, Colombia and an It (. the l'\ eou.ujii-'^ ' 1 ii \h ams and other Amer- Venezuela) and the Lima support• no mutual Aiii I -> ion; V. w ' were reported to have ing group (Brazil, Argentina, Peru irtLitt, CT e 1 1 .h. 1 rmO- jff: \ th the Costa Rican and Uruguay) along with the Oi j in Miami. US secretaries general of the UN and !ted Panama. the OAS, visited five Central 1 Ji < , and all the American countries — Costa Hoi'du a" 1 v' ""-Ji Rica, Nicaragua, El Salvador, Rican boidci a.^ tragua I Pf ui'fcs n the Contadora Honduras and Guatemala — to also promised gcncr il amre 1 1 ti 11 It was reported r tuplomaiic efforts mediate in local peace initiatives. anil govt mn, it „• The need for such a joint peace dit.o. t'^u iht 1 i«. at aligning allies with mission was decided when the ai ms. . IK 1 to consolidate various groups met last December El Salvador H w •ind action against Nicaragua. in Rio de Janeiro, Brazil, to Costa Rica rai' pro- The peace mission ended its discuss possible solution to posais, demand! > Centra! American tour with the conflicts in the area. between Nicaragu < release of a joint communique in Observers in Central America troops and anti-s;c\f'rntir( g'jer- which toe foreign ministers maintain that the mediation effort rilias, in addition tlogue declared that negotiation is the will exert a positive influence on between the two sides, tree orCy practical way to peace the easing tension in the region. So elections in Nici" ragua. non- Central American people desire. far, however, the positions of all aggression between neighb juring sides involved in the conflict have countries, and a h; ,!t to t' K US by Li Wen not visibly changed. At the beginning of last December, a serious military conllict erupted in the region bordering Nicaragua and Hon• Understanding 1i ^-f. ^tViations duras. Reports said the US- The Fifth Summit ^, ih' backed Honduran troops and US atitn (fif Islamic Conference troops directly intervened in the has achieved a ^'•'rt-r ^'i . emb'Tidies the spirit of conflicl. "consuitation and bJ During the recent tour, Nica• ragua, Honduras, El Salvador and Costa Rica put forward four eaders of Islamic couRtre? on serious challenges to the Islamic separate proposals for Central LJanuary 29 ended their lirgest world. America peace, while Guatemala gathering in nearly two decade;; by Several encounters showed reiterated its policy of "active hailing the positive outcoiTie of signs of improving relations neutrality." their Kuwait summit: I'rderstand- between long-standing toes — ing and solidarity. The Nicaraguan proposal calls Egypt and Syria. Syria and the for a halt to US military T)';c four-day Fifth Sumrnu of Patcitinc Liberation Organization operations in Nicaragua; the the Organization of IsUinsic (FLO). The meeting between reopening of discussions on Conici-cncc (QIC) issued a finui Ec;p:^aii President Hosni unresolved questions brought up 33-poiiit commuiiique, renewini; i'H:",.i;aK and his Syrian counter- by the Central American peace earlier calls for unity, understand• jcirl Hafez Assad at the summit mission; an invitation to Hon- ing and co-operaiion in the iace of' could also signal an Arab effort

ELJiNG REVIEW, NOS. 5 & 6 for greater understanding and co• lution adopted by the summit and international conferences operation. stressed the need to convene an relating to southern Lebanon, It Egypt has until this year been international Mideast conference also called for immediate ceasefire excluded from OIC summits since to solve the Arab- conflict. and cessation of armed attack on the late President Anwar Sadat On tlie Afghan issue. The the Palestine refugee camps in signed the Camp David peace resolution emphasized that only a Lebanon. treaty with Israel in 1979. Soviet pullout of its forces from On terrorism. The resolution Afghanistan can remove the major adopted by thissummit condemns Other meetings included those obstacle in the relations between all acts of criminal international between Assad and Lebanese Islamic countries and the Soviet terrorism and calls on all Islamic President Amin Gemayel, King Union. It also expressed the states to co-operate among Hussein of Jordan and Yasser "serious concern" of the Islamic themselves and with the intern• Arafat, chairman of the PLO. countries over the continued ational community to eliminate Reports also said five Arab Soviet military intervention in international terrorism. The sum• leaders held a "mini-summit" on Afghanistan. mit also adopted another reso• the sidelines involving Saudi On the Iran-Iraq war. The lution which denounced the Arabia, Jordan, Syria, Algeria and summit decided to continue its attempts to equate terrorism, with OIC summit host Kuwait. mediation efforts to stop the six- the legitimate struggle of people These encounters were not, year-old Iran-Iraq war. The for liberation. It voiced support however, regarded as sufficient in leaders agreed to assign Chairman for the idea of convening an themselves to heal the deep rifts in of the Fifth Islamic Summit, the international conference to be the Arab world — there has been Amir of Kuwait to co-ordinate sponsored by the United Nations no full Arab summit since 1982. and co-operate v^ith the OIC to define international terrorism. But Arab newspapers all viewed general secretariat in following However, co-operation and the summit as a promising Gulf war deve?opments. solidarity within the Islamic world indication of future relations in On the LebsE^ss® situation. are widely regarded as necessary if the Middle East. The summit condemned IsraeFs the challenges it faces are to be Meanwhile, Iran boycotted the occupation of Lebanese territory, tackled, and the warm atmosphere summit on the ground that the demanded its immediate with• evident ai i he ^. uwait summit may host country Kuwait was an drawal from all Lebanese ter• well indicate the beginning of a "unsafe venue" and that it was ritories and reaffirmed all reso• new Islamic unity. supporting its foe Iraq in the Gulf lutions and statements of Islamic by Chang Qing war. Afghanistan did not attend the meeting. The OIC had condemned the Soviet invasion of Afghanistan and suspended USA Kabul's membership at the 1981 OIC summit in Mecca, Saudi Arabia, so the delegation of Mujahideen, Moslem guerrilla US Doilm Remain in the Shade fighters, had been invited to this summit as observers. In order to reduce its trade deficit and keep up the momentum The Kuwait summit adopted a of economic expansion in the remaining two years in office, series of resolutions and re• the Reagan administration has allowed the dollar drop commendations on issues con• further, though at the cost of its trade partners. cerning the Moslem world. On the Mideast issue. The mergency discussion between yen, also an all-time low. Alarmed resolution declared the United E Japanese Finance Minister by the drastic fluctuation of the Nations Security Council Reso• Kiichi Miyazawa and his Amer• yen-dollar exchange rate, the lution 242 "inadequate" as the ican counterpart US Treasury Japanese government sent its basis for solving the Palestine and Secretary James Baker in Washin• finance minister to Washington, Mideast issue. The UN resolution gton in January ended with'no eagerly seeking co-ordinated in• asks Israel to withdraw its troops clear-cut pledge of government tervention with the US to prop up from the Arab land it occupied in intervention to prevent the dollar the dollar and to discuss other the 1967 Mideast war, and refers from dropping further. financial policy matters, such as to the Palestine issue only as a The dollar nosedived to a possible interest rate cuts, but all refugee problem and does not postwar record low of 149.98 yen efforts were in vain. recognize the right of Palestinians at one point in the middle of The US dollar, whose fall in the to self-determination. The reso• January and finished at 150.49 past two years was launched by a

FEBRUARY 9, 1987 INTERNATIONAL

meeting of the Group of Five (G- administration favouring a lower — The United States lacks 5) in New York in 1985 and fuelled dollar, no efforts by the Federal products that can penetrate the by the continued US trade deficit, Germans or the Japanese, alone, world market the way goods from plunged sharply against the will reverse the current trend. Japan and Federal Germany have Japanese yen and German deut- According to some Western done. One major US export — sche mark last December after the economists, as the US trade deficit grain and food products — is announcement of a record US reduces, the dollar will move back faced with a world glut. trade deficit of US$ 19.2 billion for up gradually. However, there are — Some countries peg their November. Before Miyazawa"s signs that day may be slow in currencies to the dollar, and are Washington trip, the dollar rallied coming: now seizing the opportunity of the a little in anticipation of a foreign — America's trade partners, declining competitiveness of Japa• exchange agreement but showed especially Japan and West Eun?"- nese and European products to signs of falling again after the pean countries, are willing to boost exports to the United States. meeting. sacrifice some of their profits for — Latin America, traditionally one of the largest markets for US The Reagan administration the moment in order to retain their manufacturers, is still heavily in made it clear recently that it is market shares in the United States, debt and continuing to tighten its pleased with the current situation except in sectors of low belt. of the dollar and will not intervene competition. unless there is "disruption in the — American consumers are Under these circumstances, the market." willing to pay higher prices to buy Reagan administration seems wise to continue pursuing its policy of a Another uncertain factor that foreign products because they lower dollar. makes people bearish on the dollar regard them being of higher j is that Reagan may remove Paul quality. by Shao Zijian Volcker as chairman of the Federal Reserve Board. Volcker. who is widely believed to have FRANCF-AUSTRALIA contributed greatly to bringing down the country's double-digit inflation rate, has all along New Changes in Bilateral Relations opposed further cuts in discount rates for fear of a free-falling dollar. Relations between Paris and Canberra have become tense Since 'both the House of since the hej^inninq of the year, when France announced that it Representatives and the Senate would suspend ministerial visits between the two countries and came under the control of the expel the Australian consul general from New Caledonia, a Democrats late last year, the French overseas territory. Reagan administration has been anxious to maintain its leadership, initiative and prestige. The ne of the reasons leading to the facing the French government. reduction of the trade deficit, or O deterioration of French- They decided to hold a re• efforts in that direction, will offer Australian relations is the New ferendum on the island's political such opportunity. Caledonia problem. There has future before the end of 1987. Heeding the protectionist senti• been a prolonged dispute over the French leaders consider the ments expressed by Congress as sovereignty of the South Pacific New Caledonia problem to be an well as in business circles, the island, which has been one of internal affair which has nothing White House first tried to France's overseas territories since to do with the international encourage Japan and Federal mid-19th century. Aborigines on community. However, last Germany to heat up their the island demand independence August, 13 South Pacific coun• domestic economies so as to while the French descendents tries, including Australia and New absorb more American exports. there want to keep up the Zealand, voiced their support for Failing to get co-operation on that relationship with France. The the independence of New front, the Reagan administration disagreement climaxed into an Caledonia in the annual South then tried the only means at its upheaval in 1984. In January 1985 Pacific Forum, and submitted the disposal and orchestrated the New and August 1986. French Presi• issue to the United Nations, which York G-5 meeting in September dent Francois Mitterrand and will investigate it in February this 1985 to drive down the dollar. Premier Jacques Chirac travelled year. The South Pacific countries With the US economy in a separately to New Caledonia in clearly want to keep France out of sluggish condition and the Reagan the hope of removing the difficulty the region.

14 BEIJING REVIEW, NOS. 5 & 6 Another factor contributing to anti-nuclear activities. It is also towards the Surinam government recent French action against viewed as a display of France's in encouraging and stipporting the Australia is associated with determination to maintain its terrorist activities of the rebels. French nuclear tests in Polynesia, presence in the Pacific region and Surinam military leader Desi France's South Pacific protecto• to prevent the UN from sending Bouterse, who came to power in rates and its major nuclear test observers to supervise the re• 1982, said in a New Year's speech spot. In 1973. amid outcries from ferendum in New Caledonia in that "1986 has shown clearly who South Pacific countries against July 1987. are our friends and who are our France's nuclear tests in the However. France appears ready enemies" and that the Neth• region, Australia and New to reconcile its differences with the erlands "has shown its true face Zealand brought a suit against South Pacific coimtries in order to more clearly than ever before," as France in the World Court. Later, avoid further deterioration of the rebel leader continues to act the South Pacific Forum re• French-South Pacific relations. with support from the Dutch. He peatedly asked France to halt its Paris has stressed its intention to said he would take measures nuclear testing. The 1985 incident talk and co-operate with these against such "foreign involving the Greenpeace flag• nations, saying that it would interference." ship. Rainbow Warrior, which was inform them of New Caledonia's The Dutch government has bombed at the Auckland port. vote with confidence and rejected Surinam's charges as New Zealand by French agents openness. "totally unfounded." It declared while on its way to the French Although Australian Foreign that it has always adhered to South Pacific Atoll of Mururoa lo Minister Bill Haydcn described international law, and insisted protest French nuclear tests, (he receiU French action as that it opposes "human rights resulted in a diplomatic crisis 'Aaxwaril. unilaiera! and un- \iolations" in Surinam. between New Zealand and France necessar). it is generalK believed The Netherlands claimed that it which lasted for a year. that the tension between France was upholding human rights when and Australia will not escalate The recent French decision is it issivcd protests and urged the because the two countries have generally believed to be a members of the European Com• important economic ties. retaliation measure against Aus• munity and the Organization of tralia for its involvement in the by Zhen Yunyun American States to take action against Surinam alter the Dutch press gave publicity to killings of NETHERLANDS-SURINAM innocent people by the military in Paramaribo in its "mopping up Relations Going From Bad to Worse operations" against the rebels. The Surinam government uni• The exchange expulsions of diplomats between the laterally downgraded its diploma• Netherlands and Surinam signal a worsening of relations tic representation in the Hague to charge d'affaires level in May 1985 between Holland and its former South American colony. in protest against the Dutch government's decision. elations between the Neth• ster Hans Van Den Broek Their relations worsened when Rerlands and Surinam deterio• announced on January 10 that the rebel leader Ronnie Brun• rate after the Netherlands decided Mr. Spier should also be swijik launched a guerrilla war last to expel the Surinam charge withdrawn from the Hague before June in an attempt to overthrow d'affaires in retaliation for January 25. the military government of Desi Surinam's demand on January l(t The SLirinam government has Boutcrsc. that the Netherlands recall its on many occasions charged the • Several opposition groups of ambassador in Paramaribo. Netherlands with backing up Surinam exiles in the Netherlands Surinam charge d'affaires in the rebels led by former soldier are reportedly active in supporting Hague, Carlo Spier, delivered a Ronnie Brunswijik who aim to rebels. In addition. Dutch poli• diplomatic note to the Dutch overthrow the Desi Bouterse ticians have obviously sided with Foreign Ministry on January 10. government. the rebels politically and financi• saying that the Dutch ambassador Earlier in January Surinam ally as large quantities of Dirk Jan Van Houtcn must leave threatened that it would consider "humanitarian aid" donated by Surinam before January 25 asking the Dutch government to Dutch chanty organizations have because of his "interference in the downgrade its diplomatic repres• been sent to the rebel-controlled internal affairs" of Surinam. In entation in Paramaribo, in protest areas in Surinam. retaliation. Dutch Foreign Mini• auainst its "hostile altitudes" by Hua Xin

FEBRtJARY 9. I9S7 15 •1 ARTICLES 8"Point Proposal —Hanoi's Only Way Out On December 27, 1986, at an undisclosed location in Kampuchea, Khieu Samphan, vice-president of the Coalition Government of Democratic Kampuchea, met with "Beijing Reivew's" correspondent Chen Ouang and talked about Viet Nam's invasion of his country.

oday, as the military situation accordance with the 8-point pro• Tclearly shows, Viet Nam has posal of the Democratic Kampu• been bogged down in its war of chean Coalition Government will aggression against Kampuchea, benefit all parties concerned. Yet, and the frustrations of the thus far, there has been no sign battlefield have caused Hanoi that Viet Nam is willing to pull out serious economic, political and of kampuchea, nor that the Soviet social troubles at home, as well as Union would halt its support for many difficulties m tlie everyday Viet Nam. On the contrary, both life of the Vietnamese people. If are plotting to hoax the interna• Viet Nam continues its war of tional community into recogniz• aggression against Kampuchea, it ing Vietnamese occupation of will not be able to solve its Kampuchea as a fait accompli. In economic problems. Soviet aid, no this situation, the task facing the aggression againt Kampuchea will matter how huuc. will do little to Kampuchean people and the not only have an adverse impact help. Demociatic Kampuchean Coa• on their economy, but also weaken .All the Vietnamese government lition Government is to carry on their influence in the Asian-Pacific their struggle for independence organs are now overcast with a region and in the whole world. mood of pessimism, a crisis in and peace. To remove the cause of Conversely, if the tension in Southeast Asia and the faith and the prevailing corrup• stops backing Viet Nam and urges tion. Although ihey have made Pacific region, it is hoped that all it to withdraw from Kampuchea, peace-loving countries will bring calls for remedying these ills, no it will have many things to gain. one paid any attention to them. diplomatic pressure to bear upon F'or example, it will resume Viet Nam, stop giving Hanoi any For Viet Nam. the only way out is normal relations with the member to accept the 8-point proposal put kind of aid and suspend economic slates of the Association of and trade ties with it. The forward by the Democratic Southeast Asian Nations, Japan Kampuchean Coalition Govern• combined force of the Kampu• and China on the basis of mutual chean people's resistance and ment for a political solution to the trust, respect and benefit. Kampucliean qtiestion. international diplomatic pressure As for the question of whether will be powerful enough to compel Viet Nam to accept a political The proposal is a very generous Viet Nam's tranquility or peace settlement of the Kampuchean one, for. although the Vietnamese will be threatened after it issue. war of aggression has brought withdraws from Kampuchea, the enormous damage to the Kampu• Soviets needn't worry. No one will chean nation, the Kampuchean go and make trouble in Viet Nam. The Kampuchean people and people and the Democratic On the contrary, if Viet Nam the Democratic Kampuchean Kampuchean Coalition Govern• withdraws from Kampuchea, it Coalition Government headed by ment raise no other demand than will win the applause of all the President Norodom Sihanouk are that the Vietnamese withdraw nations in the region. Kampuchea deeply grateful to all who support from their country. Furthermore, is a tiny country; it v/ill not make their struggle and demand that the Kampuchean people are war with Viet 'Nam. What Viet Nam withdraw from Kampu• creating conditions for an orderly Kampuchea wants is to live in chea. They want especially to and decent Vietnamese pullout, peace within its current borders as express their thanks to the and they are prepared to sign a an independent, peaceful, unified, People's Republic of China for its treaty of mutual non-aggression neutral and non-aligned country support and assistance in various with Viet Nam that will guarantee without the presence of foreign forms, and to the ASEAN trade and peaceful coexistence. troops on its soil. countries for their diplomatic As for the Soviets, continued In short, a political settlement efforts to force Viet Nam to pull support for Viet Nam in its war of of the Kampuchean problem in out of Kampuchea. •

Id BEIJING REVIEW, NOS. 5 & 6 Vietnamese Invaders' Plan Falls Flat

Son Sen, commander of the National Army of Democratic Kampuchea, in an interview with "Beijing Review's" correspondent Chen Guang in Kampuchea on December 27 last year, analyzed the 1986 military situation in his country.

he Vietnamese invaders had Second, more and more puppet TU\ ambitious plans lor 1^*86. soldiers deserted their units and One was to seal oil the transport joined the National Army of routes and otlier passage-v;ays by Democratic Kampuchea, frustrat• which the patriotic K.Mnputht in ing the Vietnamese plan to use the resistance forces move ammu- puppet troops and village govern• nili'jn and troops to \'v'>> i.. > •- • ments as a supporting force. the eoimirv's inierio T' (\)nnicts between the puppet was 10 i'lunc a liirgc i i army and Vietnamese troops have X'ieiiKmicsc irocjis grown more acute. Kairipiichea\. areas to the liinterlanJ. M i^i n i'liird. the three resistance sH'ongholds there rti dutu' groijpis (Sihanoukists, Khmer Phnom Penh and other niajor R.'oaee and the Son S;imi-lcd cities around Tonle Sap, and guard the strategic highways, Khmer Pet^plc's National Liber• especially Highways No. 5 and f he military situation in ation !-roni F.d.) better co• No. 6, and the Phnom Penh- ift*5 fpas gratifying as ordinated their operations in the Battambang railway. light against their common many more villages were enemy. the Vietnamese ag• These two plans have been gressors. This new development foiled by the troops and people of liberated, more puppet has filled the Kampuchean people Democratic Kampuchea, with the soldiers defected to the as well as their friends throughout help from those who were forced National Army of the world with joy. The military by the Vietnamese to work for puppet Khmer army, self'-aefence Democratic Kampuchea, co-operalicm of the three groups, corps and puppet local govern• and ihe three resistance like their co-operation on the ments. The Vietnam.ese aggressors forces fought in much diplomatic front, is important to could neither blockade the pushing forward the battle against National Army of Democratic better co-ordination. Viet Nam: it is the guarantee for Kampuchea nor prevent it frorr. the victoiA of the present anti- smashing the puppet governraents Vietnamese struggle for the in villages, attacking small arid liberation of Kampuchea, and it medium-sized towns and raiding sunoiinding areas of Phnom Penh iilso will be the guarantee of the some important cities, such as and :)thcr cities around Tonle Sap. defence and construction of the Phnom Penh, Siemreap, Bat- or along Highways No. 5 and No. countr\r Vict Nam is forced tambang, Kompong Thom and 6 yrnd the Phnoni Penh- out. Pursat. The remarkable develop• BatUnyi^ang raiiwav. Capturing In short, the military situation ments m the military situation in these viii-ugcs can pin down a in 1986 was favourable lo the 1986 were as follows: subsian'i-.il part ofthe Vieinaniese patriotic Kampuchcan resistance First, the num.ber of vi!!;i;.!e:- tioop stic'Ltli useti lo defend forces and unfa\ourable to the liberated by the National Arni> of major eiiic., and strategic high• Vietnamese aggressors. It was the Democratic Kampuchea ii tne ways, ilms making ii impossible fruit of the joint efforts by the last dry season and the rainy for the e!icni\o concentrate a National .Army of Democratic season of 1986 was many times the litige force dixisions of Kampuchea ;ind all the patriotic previous figure. Most of these troops — to launch sweeps aigainst forces in the country; a product of liberated villages are in the the Natic'Siai Arniv. their arduous struggle. •

i-FBRtlAR\. 1987 17 •1 ARTICLES Tertiary Industry Takes Off in China

Since the early 1980s, with the development of the socialist commodity economy, the improvement in living standards and the adoption of diverse and flexible policies, China's flagging tertiary industry has begun to boom. But to keep its development at a rate compatible with that of the primary and secondary industries (which are also growing considerably) continued efforts are necessary during the late 1980s through the 1990s.

by Our Correspondent Li Rongxia

n front of Wangfujing Depart• supply products and relied wholly primary industry is agriculture, I ment Store in one of the on the production sectors. These including forestry, animal hus• capital's major shiopping centres, a doctrinal theoreticians said tert• bandry and fi.jheries. Industry and computer controlled route plan• iary industry was the notion of building belong to the second. So ner has been installed. If you put a capitalist economics and did not mining, manufacturing, water and five-fen coin into the computer fit in with the traditional the power industry are included and tell it where you want to go, definition of the means of here. Tertiary industry is redivided the shortest bus route will appear on the screen and you will also get a piece of paper with directions. The verdict of a visitor from out of town — "It's great." This stall is a tiny step in China's progress towards better public services, but it is a signal of a major change. The concept of tertiary in• dustry, now the standard by which social and economic develop• ments are measured, was first put forward by the British economist Albert Fisher in 1935 and has since been accepted worldwide. In China, however, tertiary industry was not recognized for a long time. It did exist. For example, the service and catering trades which developed in the early 1950s. But since it was considered non• productive labour, statistics for its production and means of into four parts: I) transport, output value was not available. subsistence. telecommunication, commerce Discussion of the tertiary As the economic structural and catering, storing, supply and industry began in the early 1980s. reforms progressed, the need to marketing, and other circulation The service and catering trades recognize the tertiary industry sections; 2) finance, insurance, helped develop production, and became more apparent. In 1984 geological surveys, real estate, improved people's quality of life, the State Council confirmed it. public services, neighbourhood it was claimed. It was important to The next year, the State Statistical committee work, tourism, con• recognize it, and count it in. That Bureau began to compile statistics sultancies and information ser• would help in comparing the on the tertiary industry, published vices, technical service, and other Chinese economy with other the figures for its output value and departments concerning produc• countries. The traditional view• included them in the GNP figures. tion and the quality of life; 3) point persisted, however, saying The definitions of the three education, health, sports and that the service trades did not industries are not set in China, the social welfare; 4) government and

18 BEIJING REVIEW, NOS. 5 & 6 Party organs, public organiz• were paid much less than workers infrastructure and public service ations, the army and the police. and farmers, they had no in the cities. The government also The output of this last, fourth motivation and simply did not encouraged people, particularly category, is not included in the work hard. Urban dwellers had collective and individual enter• output calculations of the tertiary difficulties in shopping, eating in prises, to start up services. Since industry. restauiants, making clothes, dwel• 1980, many people, newly avail• lings, transport, hair-cutting and able for work or surplus to the hygiene facilities. primary and secondary industries, Reversals By 1980, the proportion of have moved into the tertiary tertiary industry output fell to 18.7 sector, making up over 73.65 Chinese tertiary industry has percent, far lower than the average million people in 1985. Employees suffered reversals over the last 30 of 61 percent in the developed in collective and individual years (see the table). countries and 29 percent in the tertiary industry enterprises jumped from 38 percent of all Output value of China's Three Economic Sectors (%) employment in 1980 to 59 percent in 1985. Year 1952 1957 1970 1980 1985 China had 11.15 million units of commerce, service and catering Primary 52.0 42.2 37.0 34.5 35.9 trades in 1985, 4.7 times more Secondary 21.7 30.7 40.4 46.5 42.3 than in 1980. They had some 31.38 Tertiary 26.3 27.1 22.6 IS.7 21.3 million employees. 2.2 times more than in 1980. Price reform, meanwhile, increased the pay of The drop between 1957 and developing countiies. employees to a parity with other 1980 in the share of the lcrtiar\ fhc (in-ning point came in 1981, workers in China. industry in China's economy was the beginning of th.e Sixth five- During the Sixth Five-Year certainly not due to a decrease m Ycar Plan. The out|Hit value of the Plan (1981-85), transport, com- demand. Because the service trade tertiary indusli'v iias since in• mei-ce. service and finance devel• was regarded as a non-productive creased faster than the primary oped rapidly, encompassing 75 industry, little money or effort and secondary. In 1985. it earned percent of the output value and 61 were directed to it. With the 165.7 billion yuan, 17 percent percent of all employees in the campaign for public ownership of more than in 1984 and accounted tertiary industry. Meanwhile, the means of production, m.any for 21.3 percent of total GNP. information and consultancy collective service trades were The reason for this was the service, technical services and taken over by the state, and increase in state investment in the tourism also made great progress. individual enterprises were almost tertiary industry this amounted to completely eliminated during the 57 billion yuan in 1985. 51 percent •"."" The em• of the nation's total investment in Requirement and Policy ployees in the tertiary industry construction. This improved the The main motive force behind Manager Zhai Xiaoyan pouring wine for customers. the tertiary industry is the drive to XUE CHAD develop the socialist commodity economy, and raise people's living standards. Shopping: Jinghua self-service market in Sanlihe Street is the most attractive of the 46 self- service markets in Beijing. It is in an area where many cadres live, and everyday the customers come pouring in. Huang Chengxian, 30. the general manager, said: "Our market sells 3.700 commodities including food, drink, fruit and vegetables, and articles of every• day use. We have more than 40 kinds of high-quality aquatic products and poultry, and on

I EHRUARV 9, 1987 19 m ARTICLES

banks reached 930 billion yuan which is 2.8 times as much as in 1980. An official in the People's Bank of China said, "the situation calls for increasing our business scope. We have started individual cheque-book accounts and indiv• idual credit cards as well as current and deposit accounts. We have also opened discount bill, redis• count bill services and mortgage loans and have strengthened contacts with other banks to make full use of the money." Bathing: Most of China's homes do not have bathing facilities, so the public bathhouses are very crowded. Last year a

WANG ZIJIN Beijing bathhouse had a lawsuit Shanghai Jingan Hospital for the Elderly recently established family beds so that filed against it by the environment patients can stay at home and doctors visit the patient there. bureau for its bad sewage disposal. The bathhouse was hoping to lose Sundays and holidays ihcre will be convenient to shop there because the suit, for if it was closed down, aboul 70 kinds. Sometimes we gel there is less queuing. it could switch to other business euslomers who live on the Banking: Service in China's and in all probability make more outskirts very far away from here. banks are still very backward. A money. The charge for taking a There's one teacher, who lives on lot of work needs to be done by bath is very low. it does not pay to the outskirts of town, who comes hand. Although many banks have open a bathhouse. So the here lo buy sweet chicken-legs for been equipped with money municipality decided that no her mother every week." counting machines, they are often bathhouse can be closed down or Thei'e is only a small number of out of order. At the same time the switch to other business. In 1986, self-service markets in Beijing and scope of business is widening. In the charge for a bath was the price of the commodities is a 1985. the total volume of the increased from 0.26 yuan to 0.60 little hiiilier. but still it is more deposits and loans in China's yuan.

Beijing AnIe Taxi Company always gives preferential service to pregnant or lying-in women, old or weak women. YUAN RUXUN

20 BEIJING REVIEW, NOS. 5 & 6 Housework: Housework is not Touring: Tours are no longer a they must not be neglected in considered a part of social labour. pleasure too luxurious for most favour of the tertiary industry. As Most people have to do house• people. In 198.5. some 250 investment in the tertiary industry work after work. A woman of million Chmese and foreign already amounts to half of all about 30 said: •"Fveryday when I people toured the counlrv. investment. China should carry leave work, I have to buv ic.ci. rrom 1981 to 1985. 55.85 million out economic structural reform, prepare the meal, wash < 1 11^1 ,1 iti d China, increas- and subsume tertiary industry's and look after my chiln ' md lotinst income According to the Seventh Five- life. I wish society couki luip * .1 increasing at an Year Plan ("1986-90), the output offering us more services. . 1 I ate of 15.2 value of the tertiary industry in

In recent years, maids ha-e pLi^>n T u.st I'l (.)nie has now 1990 should reach 281 billion become very popular. In BcMing become one ol C hma's major non- yuan, 71.3 percent more than in there are more than 10,000 trade sources of income. Cliiiia is 1985, with an average annual housemaids from Wuwei Count\ aware thai there are stiii many increase of 11.4 percent. In the Province alone. Yet there prohleiTis to be solved, for a U.surisl corresponding period GNP are only a small number of may still enccninter primitive should increase at an average rate families who ca>i aiford '.X|uipment. high cha.rgcs anti bad of 7.5 percent. The output value of

housekeeper. So fast food, tinned SC-.ViV.C. ;he tertiary industry will account food and kindergartens h-.ive for 25.5 percent of the gross become \ery popular. national product in 1990. China Quicker Development must do its utmost to boost the Eating out: In Beijing, 23-ycar- tertiary industry so that its old Cui Xiaoyan runs the Pingan There is a school of thought development will be that of the restaurant which is noted for its which says that since die tertiary primary and secondary industries. jellied bean curd. She said she lefi niv .:str; :s rehitively backward in In principle, every trade of the her job to open this restMur;-,.;. mdi::;! :ia! struciure. China tertiary industry should be Her parents are in the (or;.,: ; >::, 'J increase its investment to de\eloped, but China v\ill give trade deparlmcni and oiixw r. ,".!•:; the lerliar) industry to the priority to the development of the her what lhc\r c seen '>n forciL:": '.eve! of (he olhcrs. They say China important trade which will eoimtries, and help her vvuli u^e should adjust prices, create a inlluence the national economy. restaurant. Cui ;says: '"I love ire. raiiona! moncy-ci rculalion sy• Because China is still short of work, because it pro\ides a re;..! stem, improve the ma.nagemenl funds, qualified technicians, re• service to travellers and earns me ;! system of the icniary industr\ sources and raw materitils. it will good living. I plan to build li no-'-' and work out a principle for its concentrate on communications t v\ - s t o re y r e s t a u i a n t.'" de\. and irtmsport. post and tele• Advertising: Commercial ad• CHhers argue lha.t since China's communications, commerce, fin• vertising may be one of the rr.e. i primary and secondar} industries ancial insurance and home service popular things in China now slil'i recpiirc great improvemenl in the Seventh Five-Year Plan. • 1984, 4.000 companies advertised on television, 41 times more tli;.r, in 1982. In the last two year:,, advertisements for township en• Beijing Review terprises also appeared on televi• j ' k ( . tor my suhcription to Beijing Subscription Rates ji I year(,s). sion, radio, newspapers and bri Courilrv 1 year 2 years 3 years boards. [ - in payment thereof. Nn,i.i,! USA (USSl n 37 52 Information: In the bigger cmes I [ngiand (El 12 22 30 and developed areas, information, Resi ol Europe (USS) 16 27 37 advice and various kinds of technical services have become Ausualia |AS) 22 37 62 very widespread. At the end of New Zealafid |NZS| 30 52 72 1985, there were 4,600 unit-; Canada ICS) 2! 36 50 offering scientific and technolog• Swii^eiland |SF| 77 lOB

ical services. In Shanghai and W Getmany |0M) 50 90 125

Ciuangzhou. there are 46.{i(H) Austria (SchI 330 560 780 employees and 400 units providing Italy Itirel 29,000 49,000 68,000 consultancy services on the cconomy. science. technolog\ Please mail tins form. logether wan your payment, to your local dealer or either of the followmg addresses, m I'-n, Hhet Irri-i^ L.I-, iCimr Shiid'ani PP Bn* 399 Benintj Chirj • Martage'iu'n: management and trade. 'l-'i'fiilirt I'l Be rii Hi V '••f- ''^ •<,-i.A,i[rhi^^ni( fluni,' HH , ; • ' HH,i:;cf; 'ti Chiiin may suDSLnbti in Bei|in:j HPVII^^V ?A local pusl.'^l cf •

1••F.BR^J,^R^ 9, 19X7 m ARTICLES Applying and Developing IVIarxism by Hu Sheng*

e athociiic the study of" their conclusions, but those need ern bourgeois social and polit• WMarxism, but we do not not reflect the views of the Party ical theories were incompatible intend to force people to accept it and th£ government. with our revolution, as they would ihroiigli administrative measures The policy of opening to the either maintain the old system or and we do not require all scholars world can also be applied to the advocate reformism. So we to become Marxists. Some non- study of social sciences. Our rejected them. However, even Marxist scholars can also make research must seek nourishment then, the Chinese Marxists did not valuable contributions in their from the advanced science and indiscriminately negate all Wes• field. Some sciences and scientific culture of other countries while tern culture. reseai'ch. such as linguistics, logic, promoting the best of our great Since we succeeded in our textual I'cscarch. and archaeology, traditional culture. In the modern revolution and started our cons• don't have to be arbitrarily period. China has imported truction, the situation has changed labelled Marxist. democracy. Marxism and other completely. Our main task has new concepts and methodologies The Marxist approach is to shifted from destroying an old from modern philosophies and lespcct all reseaich which is world to building a new one. social sciences, which have been condLicivc to the development of Along with the change of our indispensable to the ideological science and ciiliure. and to absorb mission it was necessary for us 10 and cultural development of the from them whatever is useful to change our poliev towards the country and the progress of its the development of Marxism. social sciences. However, for a society. In the social sciences, we persist long lime we failed to do so. We in the practice of "letting a To speed up the development simply abandoned political handled llowcrs blossom and a of the social sciences. China science and sociology because hundred schools of thought con• must overcome the conser• some of the connected theories tend." and uphold freedom in the vative ideas and the iM'laiion originating in the West were academic field: we support and which existed in our research. tainted with the mist of bourgeois encoLn'age bold explorations Academic theories from various thought. That was a mistake. based on scientific research and countries must be examined so Since we must build a socialist free debate in oider to animate the that we are able to reject or theory on sociology and politics, theoretical research of Marxism assimilate them. A nation v.'ould we must both constantly sum up and place all policy decisions on a not advance and would continue our own experience and conscien• moi-e democratic and scientific to lag behind if it could not draw tiously study all relevant theories basis. Academic research knows on the intellectual resources of the including the bourgeois ones. no foi'biddcn /ones. All subjects whole world; and Marxism would beneficial to socialist construction not develop if it failed to aborb Capitalism is the highest stage and the dcxelopment of sciences nourishment from the new of the class society. To bLiild should be studied. advances in other branches of socialism we must learn and adopt learning, to enrich itself or to many things from capitalism. VVe Academic researchers should compete with other doctrines. must learn from the developed abide by the Constitution, submit In the process of opening to the capitalist countries their advanced to Partx and government leader• outside world, foreign culture, science and technology and their ship and seive socialist construc• both the good and the unscientific experience in large-scale produc• tion. However, they should do or even the decadent and the tion. Capitalist countries have their research independently and degenerate, will enter. As to what accumulated many experiences in arrive at their own conclusions. attitude we should take towards the field of economics and politics They should be responsible for the bourgeois social and political and in science and culture. Their theories, let us look back to our experiences are reflected in the the ;iullu the prosidcnl >i IN of [he revolutionary period. We see that bourgeois sociological and polit• Cliincsc AcadciiiN of Social Sciences. Hie when the Chinese people were ical theories. Of course we cannot arlicle is eMiacl froni his speech on the .111 transforming the old semi- copy these experiences and apply .ippliealion and de\elopnient ol' Marxism ilehveied a! llie National Pliilosophs and colonial and semi-feudal society them in our socialist country, but Social Sciences Planning Conl'crence foi" through revolutionary struggle we may borrow and use them so ihe Se\enth r'i\e-'l ear Plan period hold at imder the leadership of the long as we are good at analysing the end of 19X6. Chinese Communist Party, West• them first.

BEI.IING REVIEW, NOS 5 & 6 W'c arc going lo take on all the criticism Marxist theory will be capitalism and feudalism. But this inerilorioLis achievements in tempered. Ft is wrong to consider ideological struggle should be woild ideology and culliu'e. and Marxism an outdated doctrine or conducted by means of discussion make them serve our socialism; at blindly worship some bourgeois and reasoning. Only by adopting the same time, we should also philosophy and sociological and these approaches can we be sure to criticize the ideology of capitalism political theories. combat and overcome mistaken which protects exploitation and tendencies and promote our oppression and tlie unscientific We must struggle against the scientific researches to develop theories. Through this kind of rotten and degenerate thinking of Marxism. •

China's Role in Human Rights Field

by Guo Shan

hile engaged in socialist the right to development is an people are also deprived of their W construction. China is pro- inalienable human right. People's right of national existence. The moling socialist democracy and economic, social and cultural armed invasion and occupation of perfecting its legal system, it has rights now enjoy the same Afghanistan and Kampuchea gi\en priority lo respecting the importance as their civil and constitutes grave violations of democratic rights and freedom political rights. human rights. which the Chinese people enjoy China, upholding justice and. under the Constitution. Intern• Human rights are part of the truth, condemns these human ationally. China observes the international moral and legal rights violations at international principle of "piomoting and codes. The development of the forums. It calls upon the encoiii-aging i"cspccl for human scope and content of human rights international community to give rights and foi' I'undamenlal is dictated by the needs of the foremost attention lo and lake freedoms for all without distinc• economic and social development practical actions against these tion as to race, sex, language, or of mankind. violations. religion" and is playing an active Since the 1960s a great number role in the human rights realm of countries have rid themselves of In some countries human rights w'ithin the United Nations system. colonial rule and won their and basic freedoms have not been fully realized due to historical and The concept of human rights, independence. With their impro• economic reasons. China supports which was first put forward in the ved economies, their human rights the international community in bourgeois revolution. has situations have also been impro• showing its concern about large- hundreds of years of de\elopm.ent ved. China is inspired and en• scale human rights violations in an behind it. After World War 11. as couraged by all these improve• appropriate manner so as to help more and^ more third world ments. It joins the majority of improve and promote human countries became independent. countries in strongly condemning rights situations in these countries. the_\d in their aspirations gross violations of human rights But China also believes that in the to strengthen national inde• when they occur, especially when field of human rights, as with pendence, revitalize their they deny or undermine national other things, the way one country economies and improve the living self-determination, encroach handles its human rights issue standards so as to guarantee the upon the sovereignty and the should not be held up as mode! for fundamental human rights of their territorial integrity of another all other countries to follow, people. The concepts of national country or force dependence on neither should it be the sole self-determination and of others. China condemns genocide, criterion for judging other coun• sovereignty of all countries over persecution of people and plunder tries" human rights situations. their natural wealth and resources of another country, which cause China opposes any external have gradually been accepted and the emergence of large numbers of interference in a country's internal found their place in the intern• refugees in all parts of the world. affairs on the pretext of safeguard• ational instruments on human In southern Africa the human ing human rights. rights. Not long ago the United rights and fundamental freedoms Nations General Assembly adop• of the South African blacks and There have been consistent im• ted the Declaration on the Right the Namibian people are being provements in human rights in the to Development, confirming that crudely infringed. Palestinian People's Republic of China. With I HBRUARY 9. 1987 23 ARTICLES

the founding of New China, the years, the economic reforms and Convention on the Suppression Chinese people threw away their the policy of opening to the and Punishment of the Crime of miserable past when they had no outside world, as well as the Apartheid, the Convention on the political and economic rights at structural reforms in the political Prevention and Punishment of the all. Today, building the socialist field that are under consideration, Crime of Genocide, the Conven• legal system has put it on the right have greatly stimulated China's tion on the Elimination of All track towards greater civil liber• economic development and will Forms of Discrimination Against ties. The Constitution of the enable the Chinese people to enjoy Women, the Convention Relating People's Republic of China greater democracy and freedom to the Status of Refugees, and the stipulates in detail the basic than ever before. Protocol Relating to the Status of political, economic, social and Refugees. Since 1979. China has cultural rights of its citizens. A The People's Republic of China taken part in the work of the series of relevant laws have is steadily involving itself in the United Nations Commission on provided legal guarantees lor international human rights move• Human Rights and other relevant these rights. The socialist system, ment. Its government has so far organs of the United Nations. aimed at eliminating the op• ratified its participation in six pression and exploitation of man international conventions on By its activities in the human by man, constitutes a reliable human rights, namely, the Intern• rights field at both national and political foundation for the ational Convention on the Elimin• international levels. China proves realization of the democratic ation of All Forms of Racial itself to be a vigorous and healthy rights of the people. In recent Discrimination, the International force. •

FACTS AND FIGURES Retail Prices Up 6 Percent Last Year by the State Statistical Bureau

n 1986 the Chinese government The Total Index Numbers of Social in 1978, an average annual I paid careful attention to price Retail Prices in 1986 (1985 = 100) increase of 8.1 percent. The reform. Retail prices in the first average retail prices for "primary" half of 1986 remained constant at Jan. I0S.5 .luiy 1().\ non-staple foods such as eggs, the December 1985 level. As the Feb. 107.-S Aug. 103.7 pork, beef, aquatic products and prices of non-staple foods Mar. 106.4 Sept. 105.0 fresh vegetables rose .30 to 90 throughout the country were Apr. 104.4 Oct. 104.6 percent, dried vegetables and fresh decontrolled between March and May. 103..1 Nov. 105.8 fruits also rose rapidly. The prices May 1985, compared with those June. 102.8 Dec. 106.2 for grain, cigarettes, wine and tea months, the price rises of spring went up less, with an average 1986 were much lowers (estimated) annual increase of 3 percent or so. In the second half of 1986. It is estimated that the retail prices 101 for non-staple foods in 1986 rose 8 measures to raise prices were in percent. taken. The prices of industrial m consumer goods. including \ U6 bicycles, washing machines and m \ 2. Goods for Everyday Use. black-and-white televisions, and m \ From 1979 to 1985. the price of the prices of goods for everyday M V y such household goods went up b\ use, were all decontrolled. There• Ml 0.9 percent annually, but last \car fo( fore the price index went up it is estimated that the rise was 6 fM somewhat. The retail price index \ 3 4 5 6 7 8 9 10 11 IZ percent, which is due mainly to the rose more sharply than during the rise in prices of raw materials. same period of the preceding year. higher than in 1978, an average Since prices for industrial con• It is estimated that the general annual increase of 5.1 percent. In sumer goods (including bicycles level of the annual social retail 1986, it is estimated, there was a 7 and washing machines) were prices in 1986 rose about 6 percent rise over the year before. decontrolled between August and percent, (see table and chart). Non-staple foods set the pace. The September last year the retail 1. Foodstuffs. Retail food retail price for non-staple foods in prices for all kinds of articles of prices in 1985 were 49.4 percent 1985 was 72.5 percent higher than everyday use went up.

2-4 BEIJING REVIEW. NOS. i & 6 The Index of Social Retail Prices expected to have reached 890 yuan in 1986, 2.8 times more than in Average annual Rise in 1985 Estimated Hse 1978. Factoring in a 43.7 percent growth' (1979-85) over 1984 in 1986 rise in prices leaves actual income almost double (96 percent) what it Total retail price 3.9 8.8 6.0 was in 1978. The per-capita net Foodstuffs 5.9 14.4 7.0 imcome in the countryside is Clothes -0.5 0.9 3.5 estimated at 425 yuan, more than Articles for three times the 1978 figure. everyday use 0.9 2.7 6.0 Adjusting for the 29.4 percent rise Leisure goods -1.2 1.5 1.0 Medicines and in rural retail prices, actural medical income increased 2.4 times in that apparatus 2.4 3.8 2.0 period. Fuel 1.3 4.0 4.0 As urban and rural incomes increased, the consumption level 3. Clothes. The price of consumer goods, have been falling also improved. For example, the chemical fibres dropped between in recent years, but it is estimated average annual per-capita con• 1978 to 1985. Prices for clothes that there was a 1 percent increase sumption of pork rose from 7.7 kg overalf dropped 3.3 percent, an in 1986. Medicines and medical in 1978 to 14 kg in 1986, and cloth, average annual decrease of 0.5 apparatus and instruments went from 8 metres to 11.7 metres. Per- percent. The retail clothes price up by 2 percent, and fuel rose 4 capita annual expenditure on increased a little in the first eight percent. Over the previous seven articles for everyday use went months of 1986, but as the prices years these two categories of from 28.8 yuan in 1978 to 93.5 of high-quality fabrics and goods went up 18 and 9.8 percent yuan. In 1986, demand for food garments were rising from Sep• respectively. Particularly high increased. Consumption of eggs, tember last year, it is estimated were the rises in traditional poultry, fish and shrimp, fresh that the price of garments in 1986 Chinese medicine and kerosine. fruit etc. was 10 percent higher went up by an average of 3.5 As retail prices went up, than in 1985. It is estimated that in percent. people's incomes increased faster, 1986, spending increased by an 4. Leisure, IVIedlclnes and and average living standards average of 4 percent in real terms. Fuel. The prices of leisure goods, improved. According to a sample This was 85.2 percent more than in for cultural and recreational survey, urban people's average 1978, an average annual increase purposes, particularly electrical annual per-capita income is of 8 percent. g

China Calendar

Business and Trade Engineering Exhibition. Partici• mances by the Soviet State March 10-16, Beijing. Intern• pants include the United States, Chamber Music Troupe. ational Hydropower Exhibition. Japan, West European countries, March 3-22, Beijing. Japanese China International Exhibition Canada and Hong Kong. exhibifion of photos taken by Centre. March 22-27, Nanjing. Intern• Hiroji-Kubota. March 13-18. Shanghai. Intern• ational Packaging Technology March 30-April 10, Beijing. ational Woodworking Machinery and Equipment Exhibition. Exhibition of Moroccan art, Exhibition. Participants include March 28-April 3, Beijing. China Art Gallery. the United States, Japan. Canada, Second Internationa! Sound and West European countries and Video-Recording Equipment Sports Hong Kong. Sales Fair, Beijing Exhibition March 14-20. Beijing. Intern• Hall. February 15-22, Jilin Province. ational Food Processing and March 30-April 5, Beijing. Asian-Pacific Youth Ice Hockey Packaging Equipment Exhibition, International Glass Industry and Championships. China International Exhibition Glassware Exhibition, Beijing March 8-11, Beijing. Paris- Centre. Participants include Exhibition Hall. Beijing Plane Fuel Economy .lapan. the United States. Britain Contest. and Canada. Cultural Exchanges March, Shanghai. Baogang Cup March 18-23. Shanghai. Intern• February 5-27, Beijing and International Men Volleyball ational Municipal Planning and other cities in China. Perfor• Invitational Tournament.

FHBRUARY 9. 19X7 25 m DOCUMENTS

Zhao Ziyang On the Two Basics of the Party Line

Addressing a Spring Festival get-together at Beijing's Great Hall of the People on January 29, the Chinese Lunar New Year's Day, Zhao Ziyang ruled out the possibility of a political campaign; he reaffirmed Party leadership as the core of the four cardinal principles. The following is a slightly abridged translation of Zhao's speech, delivered in his capacity as Acting General Secretary of the Party Central Committee and Premier of the State Council.

ecently the Central Committee of the outside world and invigorating the home economy R Communist Party of China called the serious on the other. These two cornerstones are attention of the whole Party and the people interrelated, and neither can do without the other. throughout the country to the issue of upholding To deny the four cardinal principles is to pull the rug the four cardinal principles (the socialist road, the from under the reform, the open policy and the people's democratic dictatorship, leadership of the effort to activate the domestic economy. All these Communist Party, and Marxism-Leninism and policies will lose their orientation. And without Mao Zedong Thought) and combating bourgeois reform, opening to the outside and a thriving liberalization. Everyone is concerned with this issue domestic economy, it would be impossible to because it is crucial for China's destiny. rapidly boost the social productive forces and build socialism with salient Chinese features. To talk about one cornerstone without mentioning the other is inconsistent with the Party line which we Persevering in the four cardinal principles have followed since the Third Plenum. and opposing bourgeois liberalization is for Obviously it is also against the Party line to the sole purpose of comprehensively and turn one's back on reform, the open policy and domestic economic invigoration. Where would correctly following the line formulated at socialism with Chinese characteristics be, how- the Third Plenary Session of the 11th Party could the people ir. both cities and the countryside Central Comittee. have gained what benefits they enjoy today, and how could China attain its goal by the end of this century if reform were not taking place in the urban Eight years have elapsed since the Third and rural areas, if the country were still locked Plenary Session of the 11 th Party Central behind closed doors and if our urban and rural Committee was convened towards the end of 1978. economy remained a backwater? This question, The progress we have made during these years is being self-evident, does not need elaboration. there for all to see, and many people in the world are saying that China is prospering. Indeed the Party I'd like to talk at some length about why we line is benefiting one billion people. Today, the "line should adhere to the four cardinal principles, which laid down since the Third Plenum" has become the have been laid down, in both spirit and letter, in the most endearing political term for people across the state and Parly Constitutions. It is common sense country: but it does not follow that everyone has that all citizens should observe the Constitution and gained a comprehensive and profound understand• all Party members should also abide by the Party ing of the line's true meaning. What, then, does this Constitution. We have all placed our hope on the line entail? In the opinion of the Party Central development and reform of China, a big developing Commiitee, it entails proceeding from the country's nation handicapped by a huge population, a weak actual situation to build socialism with distinctive economic base and uneven development. Given the Chinese ch;u-acteristics. It is fashioned on two numerous difficulties and contradictions entailed in cornerstones: persisting in the four cardinal transforming China from a poor country into a rich principles on the one hand; and sticking to the one, we have got to concentrate our efforts and policy of carrying out reform, opening to the resources on development. But could anyone

26 BEIJING REVIEW, NOS. 5 & 6 concentrate on this endeavour in a situation of exist in a state of upheaval or, to say the least, turmoil? A stable political and social environment is become a pile of loose sand. True, the Party has indispensable to the on-going reform, which made mistakes in the course of successfully leading comprises the open policy and the effort for the Chinese revolution and construction, but it is economic invigoralion. none other than the Party itself that has corrected The on-going reform has yielded tremendous these mistakes in a most resolute and courageous benefits for the people of the entire nation and will manner. True, there are not a few weaknesses in the bring even greater well-being to everyone in the Party, but it is precisely the Party itself that has future. But in the process of reform, changes in taken the initative to openly expose and overcome certain interests are inevitable. This necessitates them. This explains why the people trust the Party, timely and appropriate readjustments of various which, in return, does its utmost not to let them relationships, so that contradictions can be down. resolved, stumbling-blocks removed and inter• ference done away with. Could our reform continue We never see it as our prerogative to be the for one day if the political situation were in chaos party in power; rather, we have, as always, taught and social order in turmoil? Everyone is eager to see our members to serve the people wholeheartedly a take-off of the Chinese economy, but who can and refrain from seeking special privileges and achieve it amidst an earthquake? Only political and personal power. In performing our duties, we have economic stability can bring hope to China. We tried and are still trying our best to improve our have all suffered during the "cultural revolution." work. Could wc have carried out reform and developed The Communist Party of China has initiated our economy in those years? Chaos in a single economic restructuring and is providing the province or a single city — not to mention the entire guidance to promote it. It has also timely set forth country — would be enough to leave us no peace the task of political structural reform as well. We and get us nowhere. have set highly developed democracy as one of our unchangeable targets in building a socialist country. It is. however, no easy job to ultimately achieve this goal - 10 prepare the conditions for achieving this goal requires protracted efforts. (China's chances lie in political and Due to historical reasons, there are instances in economic stability; a stable political which the functions of the Party are entangled with environment cannot do without a powerful those of the government; but it is the Party itself that leading core. has set forth the task to separate Party functions from those of the government and is searching for practical ways and means to fulfil it. To maintain political stability it is necessary to Over the past eight years since the Third have a powerful leading core. This is not a Plenum, the Party has been striving to develop complicated theoretical issue but a very practical socialist democracy and tighten up the socialist legal one. China has found in the Communist Party a system in the light of China's conditions. We are very powerful core capable of leading the reform also prepared to take further tangible measures to and construction. Bourgeois liberalization is, in improve socialist democracy, including opening up essence, designed to write off Party leadership. As various avenues that will make normal democratic Comrade Deng Xiaoping put it, "A big country like consultations and lively social dialogue possible. China would be torn apart and accomplish nothing Many people have been concerned about without the leadership of the Communist Party." In elections, and this year, electoral methods will be no uncertain terms he pointed out. "To uphold the further revamped at the county level, where more four cardinal principles, the key lies in upholding than one candidate for each post will be nominated Party leadership." for the electorate to choose from. In the days to Only under Party leadership can the nation come election methods will continue to be remain politically stable and focus its people's will overhauled and improved. But 1 don't think that to and strength on reform and development. Yet we go single-mindedly after certain formalities when have people. Party members in name, who are given and where conditions are immature will help to distorting the image of the Party and sowing achieve democracy — it will only be waste of money discontent and pessimism against it. Have they ever and manpower and divert people's attention from thought about the consequence their actions would the current construction and reform. This bring? consideration of ours is designed to serve the Without the leadership of the Communist people's interests by concentrating our strength on Party of China there would be no New China or a down-to-earth effort to achieve smooth progress socialist modernization, and the country would in economic development and reform.

FEBRUARY 9. 1987 27 • DOCUMENTS

shortcomings in their work, foster closer relations Opposing bourgeois liberalization is between the Party and the people, and expand the strictly an inner-Party issue, to be handled patriotic united front. We will, on the premise of the four cardinal principles, continue to enliven the mainly in the political and ideological fields, atmosphere of democracy and unity. Having with the emphasis on straightening out become more mature through the stress of the problems related to political principles "cultural revolution." our Party will never allow and orientation. "leftist" practices to repeat themselves in the current education in opposing bourgeois liberaliz• ation. Therefore, it will never fiare up into what is Some people worry that taking issue with called a political campaign. bourgeois liberalization will lead to yet another political campaign. On behalf of the Party Central Committee, I'd like to say, responsibly, that we have no intention of launching a political campaign. We ^Jombatting bourgeois liberalization know only too well that campaigns can do nothing will not impede the ongoing reform and to solve the problem of bourgeois liberalization and that it is absolutely impossible to eradicate the development. influence of the tendency of bourgeois liberalization Some comrades and friends are worried that by launching one or a few political campaigns. Just opposing bourgeois liberalization will adversely like reform and the implementation of the policy of affect the current reform and development. The opening to the outside world and invigorating the Communique of the Enlarged Session of the Party domestic economy, the struggle against bourgeois Central Committee Political Bureau issued on liberalization calls for long and sustained efforts. In January 17 has formally announced that all policies opposing bourgeois liberalization, the main effort concerning rural and urban areas will remain will be devoted to solving problems related to unchanged. No change will be made in the political principles and orientation. This work will comprehensive reform or the policy of opening to be strictly limited within the Party and will be the outside world and invigorating the domestic mainly carried out in the political and ideological economy. Knowledge and trained personnel will be fields. Nothing of the sort will be conducted in rural duly respected as before. Instead of changing these areas, while in enterprises and institutions the task policies, efforts will be made to make them work will be handled in the form of study and self- better. For this very reason, the Party Central education. Even in the poHtical-ideological field Committee and the State Council call on workers, education will be conducted with regards to peasants, intellectuals and cadres across the country political orientation and principles. to foster a comprehensive understanding of the Party line adopted at the Third Plenum, and to It goes without saying that, in accordance with better understand the four cardinal principles and the Party Constitution, disciplinary action will be the work to oppose bourgeois liberalization. They are also called on to resolutely implement the taken against an extremely small number of Party various principles and policies concerning reform, members who have committed serious mistakes opening to the outside world and enlivening the causing grave consequences and refused to home economy and, acting on plans already observe Party discipline. In taking our stand against mapped out, do a good job in their work, bourgeois liberalization, we should be at once particularly in increasing output, practising determined and discreet and follow the line set forth economy, increasing revenue and cutting produc• at the Third Plenum. tion costs — all for the purpose of fulfilling the We should unequivocally uphold the four various tasks laid down for this year. cardinal principles and stand firm against bourgeois liberalization. But in the meantime we should be extremely careful and act strictly within the framework of Party policies, so that we will iStudying China's situation by applying the sincerely unite, instead of disaffecling, the Marxist stand, viewpoint and method and overwhelming majority of people, including most of rallying more closely around the Party by those directly engaged in the political and ideologi• following the line formulated at the Third cal fields. We welcome all comrades who have Plenum, erred, including those who have committed grave mistakes, to change their ways. We will pay due attention to improving our work and conduct. Comrade Deng Xiaoping was the earliest to Party organizations at various levels and Party speak out, most frequently and profoundly, about members will spare no effort to overcome reform and the policy of opening to the outside

2X BEIJING REVIEW, NOS. 5 & 6 world and enlivening the domestic economy. He home economy? It is my belief that so long as we was also the earliest to dwell, most frequently and study these practical issues in the spirit of seeking profoundly, on the need to safeguard the four truth from facts, we will come to the same, or at cardinal principles and oppose bourgeois liberali• least very similar, conclusions and become more zation. He made his observations about both fields conscious in upholding the four cardinal principles of endeavour through deep-going study of China's and more determined in implementing the policies reality. We should all earnestly study his expositions for reform, opening up to the outside world and on both points as they incorporate the true elements activating the domestic economy. To build of the concept of socialism with distinctive Chinese socialism the Chinese way requires that we integrate features and make up the basic tenets of the Party the universal truth of Marxism-Leninism with the line formulated at the Third Plenum. I propose that practice of China's development and reform. While all comrades and friends wishing China enduring facing up to reality and earnestly studying the stability and prosperity use the stand, viewpoint situation of China, we will rally more closely around and method of Marxism-Leninism and Mao the Party by following its line set at the Third Zedong thought to study the real situation in China Plenum. China has done better in each of the eight in earnest — for instance, what is the country's past years since that session. Today, with the Party line and present, where does China actually stand in its carried out in a still better and all-round way, I'm historical development, what are the basic needs of sure we will do still better with each passing year in the one billion Chinese at the present stage, what are the future. the Chinese people's cultural level and political Today I have shared some of my points with experience, how can China's reform be promoted in you all in the hope that they will attract the both the economic and political arenas in a down- attention of young comrades and those engaged in to-earth manner, what are the basic guarantees for theoretical and practical work. It is my hope that in the smooth working of the current reforms and the studying these points you will proceed from the effort to open to the outside world and enliven the actual situation of China.

Deng Xiaoping On Uphiolding tlie Four Cardinal Principles

In this Issue we carry excerpts of the speech delivered by Deng Xiaoping on March 30, 1979 at a forum on the principle for the Party's theoretical work. In it he emphasizes the need to uphold the four cardinal principles and oppose bourgeois liberalization. The title and subheads are ours.

n our democratic revolution, we had to act in of technical personnel. From Liberation to last I accordance with China's specific situation and year, the average annual rate of growth in our follow the path discovered by Comrade Mao industry and agriculture was fairly high by world Zedong of encircling the cities from the rural areas. standards. Nonetheless, because of our low starting Now, in our national construction, we must likewise point, China is still one of the world's poor act in accordance with our own situation and find a countries. Our scientific and technological forces Chinese path to modernization. are far from adequate. Generally speaking, we are At least two important features of our situation 20 to 30 years behind the advanced countries in the must be taken into account in order to carry out the development of science and technology. In the past four modernizations in China. three decades our economy has gone through two First, we are starting from a weak base. The reversals. The havoc wrought by Lin Biao and the damage inflicted over a long period by the forces of gang of four in the decade 1966-76 has had imperialism, feudalism and bureaucrat-capitalism particularly grave consequences. reduced China to a state of poverty and Second, we have a large population but not backwardness. However, since the founding of the enough arable land. Of China's population of more People's Republic we have achieved signal successes than 900 million, 80 percent are peasants. While in economic construction, established a fairly there are advantages to having a large population, comprehensive industrial system and trained a body there are disadvantages as well. When production is

FEBRUARY 9. 1987 H DOCUMENTS i

insufficienlly developed, il poses serious problems study and acquisition of advanced technology from with regard to food, education and employment. abroad. We have tried to act in accordance with We must greatly increase our efforts in family objective economic laws. In other words, we have planning; but even if the population does not grow adhered to scientiilc socialism. for a number of years, we will still have a population We have smashed the feudal fascism of the problem for a certain period. Our vast territory and gang of four, redressed many injustices, solved rich natural resources are big assets. But many of many problems left over from the past, these resources have not yet been surveyed and consolidated the dictatorship of the proletariat, and exploited, so they do not constitute actual means of restored and extended socialist democracy. And production. Despite China's vast territory, the particularly since the Third Plenary Session, wc amount of arable land is limited, and neither this have created a lively political situation of the type fact nor the fact that we have a large, mostly peasant Comrade Mao Zedong had long looked forward to population can be easily changed. This is a in his lifetime. distinctive characteristic which we must take into We have restored the three major features of account in carrying out our modernization the Party's style of work,* which had been trampled programme. upon, improved the system of democratic To accomplish modernization of a Chinese centralism in the Party, and reinforced unity type, we must proceed from China's special throughout the Party and between the Party and the characteristics. For example, modern production masses. All this has enormously enhanced the requires only a small number of people, while our Party's prestige and strengthened its leadership of population is enormous. How shall we reconcile the state and society. these two facts? Unless we take all factors into We have broken the mental shackles forged by account, we shall be faced for a long time with the Lin Biao and the gang of four and have insisted that social problem of insufficient employment. There leaders should be regarded as human beings, not are many problems in this connection which Party demigods. We have always tried to understand comrades doing practical and theoretical work must Marxism-Leninism and Mao Zedong thought study together. We can surely find ways of solving correctly and as an integral, scientific system, and these problems. But I am not going to discuss them have always proceeded from reality and sought today. truth from facts. In other words, we have restored What I want to talk about now is ideological the original features of Mao Zedong thought and and political questions. The Central Committee defended the eminence of Comrade Mao Zedong as maintains that, to carry out China's four a great figure in the history of the Chinese modernizations, we must uphold the four cardinal revolution and of world revolution. principles ideologically and politically. This is the Nevertheless, the Central Committee believes basic prerequisite for achieving modernization. The that today there is still a tremendous need to stress four principles are: propaganda on the four cardinal principles. This 1. We must keep to the socialist road. need continues because some Party comrades have 2. We must uphold the dictatorship of the not yet freed themselves from the evil influence of proletariat. the ultra-Left ideology of Lin Biao and the gang of 3. We must uphold the leadership of the four. A handful have gone so far as to spread Communist Party. rumours and calumnies, attacking the principles 4. We must uphold Marxism-Leninism and and policies adopted by the Central Committee Mao Zedong thought. As we all know, far from since the toppling of the gang of four and being new, these four cardinal principles have long particularly since the Third Plenary Session as been upheld by our Party. The Central Committee running counter to Marxism-Leninism and Mao has been adhering to these principles in all its Zedong thought. It is necessary to continue guidelines and policies adopted since the smashing emphasizing the four cardinal principles also of the gang of four, and especially since the Third because a handful of people in society at large are Plenary Session of the Eleventh Central Committee. spreading ideas which are against them or at least cast doubt on them, and because individual Party We have criticized, on both a theoretical and a comrades, instead of recognizing the danger of such practical level, the phoney, ultra-Left socialism ideas, have given them a certain degree of direct or pushed by the gang of four, which boils down to indirect support. Although the number of such universal poverty. We have always followed the persons both inside and outside the Party is very principles of socialist public ownership and distribution according to work. We have always followed the policy ofdeveloping socialist economic * Ttie three major features of the Party's style of work are construction mainly through self-reliance — the integration of theory with practice, the forging of close hnks supplemented by foreign aid — and through the with the masses and the practice ol self-criticism.

30 BEIJING REVIEW, NOS. 5 & 6 small, we must not overlook their impact on that or even thousands of years. Our economy has account. Facts show that they can do great damage attained a fairly high rate of growth. Now that we to our cause and that they have already done so. have summed up experience and corrected errors, it Therefore, it is not enough for us to keep on will undoubtedly develop more rapidly than the resolutely eliminating the pernicious influence of economy of any capitalist country, and the the gang of four, helping those comrades who have •development will be steady and sustained. Of been misled by it to come to their senses, and course, it will take a considerable period of time for rebutting the reactionary statements of those who the value of our national output per capita to catch slander the Central Committee. While continuing to up with and surpass that of the developed capitalist do all these things, we must also struggle countries. unremittingly against currents of thought which In the third place, let's ask: Which is better, the throw doubt on the four cardinal principles. Both socialist system or the capitalist system? Of course the ultra-Left and Right currents of thought run the socialist system is better. In certain counter to Marxism-Leninism and Mao Zedong circuinstances, a socialist country may make serious thought and obstruct our advance towards errors, and even experience such major setbacks as modernization. We have conducted massive the havoc created by Lin Biao and the gang of four. criticism of the ultra-Left thinking spread by Lin Naturally, this has its subjective causes, but Biao and the gang of four (there is no question that basically it is due to influences inherited from the this thinking too is in opposition to the four old society with its long history, influences that cardinal principles, only it is opposition from the cannot be swept away overnight. Capitalist "Left"), and we will go on criticizing it relentlessly. countries with a long feudal history — such as Biit what I want to emphasize now is criticism of a Britain, France, Germany, Japan and Italy — all trend of thought which is sceptical of, or opposed experienced major setbacks and reversals at to, our four cardinal principles, but which comes different times (counter-revolutionary restorations from the Right. occurred in Britain and France while Germany, Japan and Italy had periods of fascist rule). But relying on the socialist system and our own Socialist Road strength, we toppled Lin Biao and the gang of four without too much difficulty and quickly set our First, we must keep to the socialist road. Some country back on the road to stability, unity and people are now openly saying that socialism is healthy development. The socialist economy is inferior to capitalism. We must demolish this based on public ownership, and socialist production contention. is designed to meet the material and cultural needs In the first place, socialism and socialism alone of the people to the maximum extent possible — not can save China — this is the unshakable historical to exploit them. These characteristics of the socialist conclusion that the Chinese people have drawn system make it possible for the people of our from their own experience in the 60 years since the country to share common political, economic and May 4th Movement [1919]*. Deviate from social ideals and moral standards. All this can never socialism and China will inevitably retrogress to happen in a capitalist society. There is no way by semi-feudalism and semi-colonialism. The which capitalism can ever eliminate the extraction overwhelming majority of the Chinese people will of supper-profits by its millionaires or ever get rid of never allow such a retrogression. exploitation, plundering and economic crises. It can never generate common ideals and moral standards In the second place, although it is a fact that or free itself from appalling crimes, moral socialist China lags behind the developed capitalist degradation and despair. countries in its economy, technology and culture, this is not due to the socialist system but basically to On the other hand, capitalism already has a China's historical development before Liberation; it history of several hundred years, and we have to is the result of imperialism and feudalism. The learn from the peoples of the capitalist countries. socialist revolution has greatly narrowed the gap in We must make use of the science and technology economic development between China and the they have developed and of those elements in their advanced capitalist countries. Despite our errors, in accumulated knowledge and experience which can the past three decades wc have made progress on a be adapted to our use. While we will import scale which old China could not achieve in hundreds advanced technology and other things useful to us from the capitalist countries — selectively and according to plan — we will never learn from or *The May 4th Movement was a patriotic campaign, which import the capitalist system itself, nor anything began with a rally on May 4. 1919 in Beijing, to fight against repellent or decadent. If the developed capitalist imperislism and feudalism. It raised the curtain on the New- Democratic Revolution. countries were to rid themselves of the capitalist

FEBRUARY 9. 1987 31 DOCUMENTS

system, their economy and culture would certainly a special form of the leftover, under socialist make greater progress. That is why the progressive conditions, of the class struggles of past history. It is political forces in the capitalist countries are trying still necessary to exercise dictatorship over all these to study and propagate socialism and are fighting to anti-socialist elements, and socialist democracy is eliminate the injustices and irrational phenomena impossible without it. endemic in capitalist society and to carry out This dictatorship is an internal struggle and in socialist revolution. We should introduce to our some cases an international struggle as well; in fact, people, and particularly to our youth, whatever is the two aspects are inseparable. Therefore, so long progressive and useful in the capitalist countries, as class struggle exists and so long as imperialism and we should criticize whatever is reactionary and and hegemonism exist, it is inconceivable that the decadent. dictatorial function of the state should wither away, that the standing army, public security organs, courts and prisons should wither away. Their Proletarian Dictatorship existence is not in contradiction with the democratization of the socialist state, for their Second, we must uphold the dictatorship of the correct and effective work ensures, rather than proletariat. The dictatorship of the proletariat hampers, such democratization. The fact of the means socialist democracy for the people, matter is that socialism cannot be defended or built democracy enjoyed by the workers, peasants, up without the dictatorship of the proletariat. intellectuals and other working people, the broadest democracy that has ever existed in history. In the past, we did not practise democracy enough and we Party Leadership made mistakes. Lin Biao and the gang of four, while boosting their so-called "all-round dictatorship," Third, we must uphold the leadership of the exercised a feudal fascist - dictatorship over the Communist Party. Since the inception of the people. We have smashed this dictatorship, which international communist movement, it has been had nothing in common with the dictatorship of the demonstrated that its survival is impossible without proletariat but was its diametric opposite. Now we the political parties of the proletariat. Moreover, have corrected the past mistakes and adopted many since the October Revolution it has been clear that measures to constantly expand democracy in the without the leadership of a Communist Party, the Parly and among the people. socialist revolution, the dictatorship of the proletariat and socialist construction would all be Without democracy there can be no socialism impossible. Lenin said: "The dictatorship of the and no socialist modernization. Of course, proletariat is a persistent struggle — bloody and democratization, like modernization, must advance bloodless, violent and peaceful, military and step by step. The more socialism develops, the more economic, educational and administrative — must democracy develop. This is beyond all doubt. against the forces and traditions of the old However, the development of socialist democracy society Without an iron party tempered in the in no way means that we can dispense with the struggle, without a party enjoying the confidence of proletarian dictatorship over forces hostile to all that is honest in the given class, without a party socialism. We are opposed to broadening the scope capable of watching and influencing the mood of of class struggle. We do not believe that there is a the masses, it is impossible to conduct such a bourgeoisie within the Party, nor do we believe that struggle successfully." ("left-wing" Communism, an under the socialist system a bourgeoisie or any other Infantile Disorder). This truth enunciated by Lenin exploiting class will re-emerge after exploiting remains valid today. classes and the conditions of exploitation have In our country, in the 60 years since the May really been eliminated. But we must recognize that 4th Movement, no political party other than the in our socialist society there are still counter• Communist Party of China has integrated itself revolutionaries, enemy agents, criminals and other with the masses of the working people in the way bad elements of all kinds who undermine socialist described by Lenin. Without the Chinese public order, as well as new exploiters who engage in Communist Party there would be no socialist new corruption, embezzlement, speculation and profit• China. The misdeeds of Lin Biao and the gang of eering. And we must also recognize that such four aroused the resolute opposition of the whole phenomena cannot be all eliminated for a long time Chinese people as well as of the whole Party to come. The struggle against these individuals is precisely because Lin Biao and the gang cast aside different from the struggle of one class against the Chinese Communist Party, the long-tested another, which occurred in the past (these leading force that maintains flesh-and-blood ties individuals cannot form a cohesive and overt class). with the masses. And if the Party's prestige among However, it is still a special form of class struggle or the people throughout the country has been

32 BEIJING REVIEW. NOS. 5 & 6 enhanced since the downfall of the gang of four, and and make trouble, the four modernizations will particularly since the Third Plenary Session of the vanish into thin air. This is not an exaggerated Eleventh Central Committee, it is precisely because statement I am making to scare people; it is the the entire nation pins all its hopes for the future on objective truth corroborated by a wealth of facts. leadership by the Party. Although the mass movement of 1976 that culminated in the incident at Tiananmen Square where the people gathered to Marxism-Leninism and IVIao Zedong mourn Premier Zhou Enlai was not led by the Party Thought organizationally, it staunchly supported the Party's leadership and opposed the gang of four. The Fourth, we must uphold Marxism-Leninism revolutionary consciousness of the masses in that and Mao Zedong thought. One of the key points of movement was inseparable from the education our struggle against Lin Biao and the gang of four given by the Party over the years, and it was was opposition to their falsification, doctoring and precisely members of the Party and the Communist fragmenting of Marxism-Leninism and Mao Youth l.eaguc who were the principal activists Zedong thought. Since the smashing of the gang, we among them. Hence we must on no account have restored the scientific character of Marxism- consider the mass movement at Tiananmen Square Leninism and Mao Zedong thought and have to have been a purely spontaneous one like the May guided ourselves by them. This is a resounding 4th Movement, which had no connection with Party victory for the whole Party and people. But a few leadership. individuals think otherwise. Either they openly oppose the basic tenets of Marxism-Leninism, or In reality, without the Chinese Communist else they uphold Marxism-Leninism in word only Party, who wouid organize the socialist economy, while in deed opposing Mao Zedong thought, politics, military affairs and culture of China, and which represents the integration of the universal who would organize the four modernizations? In truth of Marxism-Leninism with the practice of the the China of today we can never dispense with Chinese revolution. We must oppose these leadership by the Party and extol the spontaneity of erroneous trends of thought. Some comrades say the masses. Party leadership, of course, is not that we should uphold "correct Mao Zedong infallible, and the problem of how the Party can thought," but not "erroneous Mao Zedong maintain close links with the masses and exercise thought." This kind of statement is also wrong. correct and effective leadership is still one that we What we consistently take as our guide to action are must seriously study and try to solve. But this can the basic tenets of Marxism-Leninism and Mao never be made a pretext for demanding the Zedong thought or, to put it another way, the weakening or liquidation of the Party's leadership. scientific system formed by these tenets. When it Our Party has made many errors, but each time the comes to individual theses, neither Marx and Lenin errors were corrected by relying on the Party nor Comrade Mao could be immune from organization, not by discarding it. The present misjudgements of one sort or another. But these do Central Committee is persistent in promoting not belong to the scientific system formed by the democracy in the Party and among the people and is basic tenets of Marxism-Leninism and Mao Zedong determined to correct past errors. Under these thought. circumstances, it would be all the more intolerable to the masses of our people to demand the Now I want to talk at some length about Mao liquidation or even the weakening of leadership by Zedong thought. China's anti-imperialist and anti- the Party. In fact, bowing to this demand would feudal revolution went through innumerable cruel only lead to anarchism and the disruption and ruin defeats. Was it not Mao Zedong thought which of the socialist cause. Lin Biao and the gang of four, enabled the Chinese people — about a quarter of as they put it, kicked aside the Party committees to the world's population — to find the correct road "make revolution." and it is clear to all what kind of for their revolution, achieve nationwide liberation revolution they made. If today we tried to achieve in 1949, and basically accomplish socialist democracy by kicking aside the Party committees, transformation by 1956? This succession of isn't it equally clear what kind of democracy we splendid victories changed not only China's destiny would produce? In 1966 the Chinese economy, but the world situation as well. having gone through a few years of readjustment, While conducting our modernization pro• was in a position to develop rapidly. But Lin Biao gramme in the present international environment, and the gang of four did it grave damage. Only now, we cannot help recalling Comrade Mao's under the leadership of the Central Committee and contributions. Comrade Mao, like any other man. of the State Council, has our economy returned to had his defects and made errors. But how can these the road of sound growth. If a handful of people are errors in his illustrious life be put on a par with his again allowed to kick aside the Party committees immortal contributions to the people? In analysing

FEBRUARY 9. 1487 3.3 •I DOCUMENTS

his defects and errors, we certainly should recognize that cannot be met at present or are altogether his personal responsibility, but what is more unreasonable. They have provoked or tricked some important is to analyse their complicated historical of the masses into raiding Party and government background. That is the only just and scientific — organizations, occupying offices, holding sit-down that is, Marxist — way to assess history and and hunger strikes and obstructing traffic, thereby historical figures. Anyone who departs from seriously disrupting production, other work and Marxism on so serious a question will be censured public order. by the Party and the masses. Isn't that natural? Moreover, they have raised such sensational Mao Zedong thought has been the banner of slogans as "Oppose hunger" and "Give us human the Chinese revolution. It is and always will be the rights," inciting people to hold demonstrations and banner of China's socialist cause and of the anti- deliberately trying to get foreigners to give hegemonist cause. In our forward march we will worldwide publicity to their words and deeds. There always hold the banner of Mao Zedong thought is a so-called China Human Rights Group which high. has gone so far as to put up big-character posters The cause and the thought of Comrade Mao requesting the President of the United States to Zedong are not his alone; they are likewise those of "show concern" for . Can we his comrades-in-arms, the Party and the people. His permit such an open call for intervention in China's thought is the crystallization of the experience of the interna! affair? There is also a so-called Thaw Chinese people's revolutionary struggle over half a Society which has issued a declaration openly century. The case of Karl Marx was similar. In his opposing the dictatorship of the proletariat on the estimation of Marx, Frederick Engels said that it ground that it "divides mankind." Can we tolerate was only thanks to Marx that the contemporary this kind of freedom of speech which fiagrantly proletariat became conscious for the first time of its contravenes the principles of our Constitution? own position and demands and of the conditions In Shanghai there is a so-called Democracy necessary for its own liberation. Does this mean Forum. Some of its members have slandered that history is made by any one individual? History Comrade Mao Zedong and put up big counter• is made by the people, but this does not preclude the revolutionary posters proclaiming that "proletarian people from respecting an outstanding individual. dictatorship is the source of all evils" and that it is Of course, this respect must not turn into blind necessary to "resolutely and thoroughly criticize the worship. No man should be looked upon as a Communist Party of China." They allege that demigod. capitalism is better than socialism and that, To sum up, in order to achieve the four therefore, instead of carrying out the four modernizations we must keep to the socialist road, modernizations China should introduce what they uphold the dictatorship of the proletariat, uphold call "social reform," by which they mean that it the leadership of the Communist Party, and uphold should turn to capitalism. They publicly declare Marxism-Leninism and Mao Zedong thought. The that their task is to settle accounts with those whom Central Committee considers that we must now the gang of four called the capitalist roaders but repeatedly emphasize the necessity of upholding whom it had failed to deal with. Some of them have these four cardinal principles, because certain asked to go abroad to seek political asylum, and people (even if only a handful) are attempting to some have even made clandestine contact with the undermine them. In no way can such attempts be Kuominlang secret service, plotting sabotage. tolerated. No Party member and, needless to say, no It is obvious that these people are out to use Party ideological or theoretical worker, must ever any and all means to disrupt our effort to shift the waver in the slightest on this basic stand. To focus of our work to the achievement of undermine any of the four cardinal principles is to modernization. If we ignored these grave problems, undermine the whole cause of socialism in China, our Party and government organs at various levels the whole cause of modernization. would be so harassed that they would find it impossible to function. How, then, could we concentrate on the four modernizations? On Incidents Provoked By a Few People It is true that there are very few such incidents Is the Central Committee making a mountain and that the overwhelming majority of our people out of a molehill when it takes this view of the disapprove of them. Nevertheless, they merit our matter? No, it is not. In the light of current serious attention. First, these trouble-makers developments the Party has no choice. generally say they speak in the name of democracy, In the recent period a small number of persons a claim by which people are easily misled. Second, have provoked incidents in some places. Instead of taking advantage of social problems left over from accepting the guidance, advice, and explanations of the time when Lin Biao and the gang of four held leading officials of the Party and government, sway, they may deceive some people who have certain bad elements have raised sundry demands difficulties which the government cannot help to

34 BEIJING REVIEW, NOS. 5 & 6 clear up at the moment. Third, the trouble-makers of the interests of the part and those of the whole, have begun to form all kinds of secret or semi-secret and of immediate and long-term interests. We must organizations which seek to establish contact with adjust the relations between these various types of each other on a nationwide scale and at the same interests in accordance with the principle of taking time to collaborate with political forces in Taiwan them all into proper consideration. Were we to do and abroad. Fourth, some of these people work the opposite and pursue personal, local or hand in glove with gangster organizations and immediate interests at the expense of the others, followers of the gang of four, trying to expand the both sets of interests would inevitably suffer. In the scope of their sabotage. Fifth, ihey do all they can to final analysis, the relations between democracy and use as a pretext — or as a shield — indiscret centralism and between rights and duties are the statements of one sort or another made by some of political and legal expressions of the relations our comrades. between these diverse interests. This is precisely why All this shows that the struggle against these Comrade Mao Zedong said that our aim is to create individuals is no simple matter thai can be settled a political situation in which we have both quickly. Wc must strive to clearly distinguish centralism and democracy, both discipline and between people (many of them innocent young freedom, both unity of will and personal ease of people) and the counter-revolutionaries and bad mind and liveliness. That is the political situation elements who have hoodwinked them, and whom which exists when there is true socialist we must deal with sternly and according to taw. At democracy — the situation wc must strive to create the same time, we must educate comrades today and in the years to come. throughout the Party about the necessity of Wc have not propagated and practised sharpening their vigilance, bearing in mind the democracy enough, and our systems and interests of the country as a whole and uniting as institutions leave much to be desired. The constant one under the leadership of the Central Committee. promotion of democracy is therefore a firm, long- We must encourage them to continue the term Party objective. However, while propagating emancipation of their minds and consistently democracy, we must strictly distinguish between promote democracy so that they can mobilize all socialist democracy on the one hand and bourgeois, positive forces while at the same time endeavouring individualist democracy on the other. We must link to clear up the ideological confusion among a small democracy for the people with dictatorship over the section of the people, especially young people. enemy, and with centralism, legality, discipline and the leadership by the Commimist Party. At persent Democracy when we are confronted with manifold difficulties in We must make a special effort to explain the our economic life which can be overcome only be a question of democracy clearly to the people, and to series of readjustments and by consolidation and our youth in particular. The socialist road, the reorganization, it is particularly necessary to stress dictatorship of the proletariat, the leadership of the publicly the importance of subordinating personal Communist Party and Marxism-Leninism and Mao interests to collective ones, interests of the part to Zedong thought — all these are tied up with those of the whole, and immediate to long-term democracy. interests. Only when everyone — whether inside or What kind of democracy do the Chinese people outside the Party, in a leading position or among the need today? It can only be socialist democracy, rank and file — is concerned for the overall interests people's democracy, and not bourgeois democracy, shall we be able to overcome our difficulties and individualist democracy. People's democracy is ensure a bright future for the four modernizations. inseparable from dictatorship over the enemy and Conversely, departure from the four cardinal from centralism ba.sed o-n democracy. We practise principles and talk about democracy in the abstract democratfc centralism, which is the integration of will inevitably lead to the unchecked spread of centralism based on democracy with democracy ultra-democracy and anarchism, to the complete under the guidance of centralism. Democratic disruption of political stability and unity, and to the centralism is an integral part of the socialist system. total failure of our modernization programme. If Under this system, personal interests must be this happens, the decade of struggle against Lin subordinated to collective ones, the interests of the Biao and the gang of four will have been in vain, pan to those of the whole, and immediate to long- China will once again be plunged into chaos, term interests. In other words, limited interests must division, retrogression and darkness, and the be subordinated to overall interests, and minor Chinese people will be deprived of all hope. This is a interests to major ones. Our advocacy and practice matter of deep concern not only for the Chinese of these principles in no way means that we can people of whatever nationality but also for all ignore personal, local or immediate interests. In the people abroad who wish to see China strong, and final analysis, under the socialist system there is a even for those who merely wish to expand trade unity of personal interests and collective interests. with China.

FEBRUARY 9. 1987 35 Social Conduct and Party's Work Style comrades at all levels set a good example. The Party is a model for entire society, and the leading Party comrades at all levels are models for our entire Here I would like to raise the question of Party. If the Party organization ignores the views standards of social conduct. Thanks to the correct and interests of the masses, how can it expect to win leadership of the Party and government, these their trust and their support for its leadership? If standards were quite sound in our country for a leading cadres in the Party do not set strict decade or more after the founding of the People's standards for themselves and observe Party Republic. Most of the young people who grew up discipline and the laws of the state, how can they be under the Party's education had high ideals, expected to help reform the standards of social ardently loved the socialist motherland, responded conduct? How can they do so if, in violation of actively to the calls of the Parly and government, Party principles, they engage in factionalism, use defended the people's interests, helped safeguard their positions to obtain personal privileges, seize public order, and generally displayed a fine spirit of advantages through connections or infiuence, dedication and discipline. This type of conduct on indulge in extravagance and waste, and seek the part of young people had a good infiuence on personal gain at the expense of the public interest? the conduct of other members of society, and vice How can they do so if they fail to share the joys and versa. And this won the praise of foreigners as well sorrows of the masses, refuse to be the first to bear as of our own people. However, in the decade of the hardships and the last to enjoy comforts, disobey "cultural revolution," Lin Biao and gang of four the decisions of the Party organization and reject plunged our Party, government and society into supervision by the masses or even retaliate against chaos, poisoned the minds of many young people those who criticize them? In the present period of and did grave damage to socialist moral standards. historical change, when problems have piled up and The situation has improved considerably since the a thousand things wail to be done, it is crucial for us downfall of the gang of four, but we must not to strengthen the leadership of the Party and correct underestimate the residue of their pernicious its work style. Comrade Mao Zedong said: "Once influence in certain spheres. The present state of our Party's style of work is put completely right, the affairs is entirely incompatible with the people all over the country will learn from our requirements of the shift of focus in the Party's example. Those outside the Party who have the work. same kind of bad style will, if they are good and We encourage normal contact between honest people, learn from our example and correct Chinese and foreigners, because it is essential to the their mistakes, and thus the whole nation will be growth of understanding and friendship between infiuenced" (Rectify the Party's Style of Work. our people and other peoples and to the acquisition 1942). Only if we improve the Party's style of work of foreign technology and funds. There will be a vast can the standards of social conduct be improved increase in such contact in the future. However, and the four cardinal principles be upheld. some unhealthy phenomena have emerged among a Is anything I have said here out of keeping with small number of young people, because we have not the spirit of the Third Plenary Session of the Party's adequately educated or guided them. Some young Eleventh Central Committee (held in December men and women blindly admire the capitalist 1978). No, everything I have said relates to countries, and some even show a blatant disregard measures that must be taken to carry out the for both national and personal dignity in their principles and policies laid down at that session. Let contact with foreigners. This is a matter requiring me repeat: If we fail to adopt these measures, these our serious attention. It is imperative that we principles and policies will come to naught. So will educate our younger generation, take effective our effort to shift the focus of our work, so will our measures in all spheres to raise the standards of modernization programme, and so will the social conduct and deal sternly with offensive promotion of democracy inside and outside the behavious which seriously lowers them. Party. Therefore, it is entirely wrong to say, as some To raise the standard of social conduct, we have said, that the Central Committee has decided must first of all improve the Party's work style, and on a "tightening up" policy, or that it has changed in particular this requires that leading Party its policy of promoting democracy. n

BEIJING REVIEW, NOS 5 tk 6 m FROM THE CHINESE PRESS

make good friends with them and Multi-Party Co-operation in China support them in the exercise of their democratic rights. There are the conditions and needs for these "RENMIN RIBAO" necessary to have a clear view of the basic changes that have taken parties to exist in a long time to (People's Daily) place in the democratic parties, come. The policy of "one country, that is, most members of the two systems" will be used in unify democratic parties are intellec• the country. It will be still tuals of the working class, and implemented after reunification is an Mingfu, head of the United other workers and patriots who achieved. Then, the non- Y Front Work Department of support socialism. Each party Communist parties would be in a Chinese Communist Party Central accurately reflects the opinions of position to shoulder heavier Committee, recently called for different sections of people. So the responsibilities and able to more co-operation between the Communist Party of China should develop their role to the full. Communist Party and the other political parties of China. Such co• operation would be of great significance in extending the Remarriage of the Elderly patriotic united front, developing socialist democracy, promoting "JINGJI RIBAO" from their friends, relatives and national unity and fulfilling the (Economic Daily) children when they announced tasks of the new period. their intentions of finding a Yan said that in recent years the partner who could help and Chinese Communist Party has ccording to 1982 statistics, support them in their journey corrected the erroneous view that A45.79 percent of people aged through life's twilight. Some the non-Communist parties are 60 or over in China — some 35 young people maltreated and "bourgeois" parties, and stressed million people — are widowed, pressured their remarried parents respecting independence of these divorced, or unmarried. Of this so much that the old couples had parties, and their political freedom number, about 68.6 percent are to get divorced. and equal status before the law women. Clearly, potential isol• If the Chinese Marriage Law within the limit of the Consti• ation and loneliness among the guarantees freedom of marriage tution. Efforts should also be elderly is an important social for young people, it guarantees the made to help them contribute to problem. same freedom for their elders as socialist modernization, and to One possible solution to this well. Both are citizens with equal expand their ranks. problem may be voluntary civil rights. If parents must not The past few years have seen the remarriage. This would benefit interfere in their children's Chinese democratic parties which society, their families, and their marriage plans, then children opposed Chiang Kai-shek before health. The elderly need spiritual must not obstruct their parents' 1949 play a part in the formation comfort and special care in their own matrimonial decisions either. of China's principal policies, daily lives. So society should At present, there is in China a helping to implement them, and create positive conditions that general lack of legal awareness, contributing to the country's encourage the remarriage of old and remarriage of the elderly is modernization in various other people. In keeping with the times, considered a family dispute, not ways, including forging links of marriage agencies for the elderly an issue that is protected by the friendship with other countries. have sprung up around the law. This tendency should be "This shows that the various country and should be supported brought to the attention of political parties in China are co• in all respects. Chinese legal scholars and the operating more now than at any However, feudalism dominated relevant judicial departments. As time since 1949," Yan said. China for more than 2,000 years soon as possible the departments China has eight democratic and its legacy still influences concerned should promulgate a parties, with about 80,000 mem• people's lives today. Some feudal special law to protect the bers, many of them recruited in ideas still prevalent in society are legitimate rights and interests of recent years. In order to carry out unfavourable to the remarriage of the elderly. Moreover, the whole the principles of "coexistance for a the old. especially old women. society should go into action to long period of time and mutual Frequent reports about these strongly condemn unlawful deeds supervision" and "showing ab• negative attitudes have been which interfere in the remarriage solute devotion to and sharing drawing increasing public atten• of the old. Those who maltreat the honour or disgrace with one tion. For instance, some old old should be punished according another," Yan explained that it is people met with strong opposition to the law. •

FEBRUARY 9. 1987 37 • BUSiNESSARADE

should be bettered in order to meet the demand of China's foreign co• Utilizing Foreign Investment operation. The contracts signed for absorbing foreign capital in the hina made steady progress in followed by the United States and latter half of 1986 were 150 C using foreign capital in 1986. Japan. percent more in number than in The statistics from the Ministry of The utilization of foreign the first half of the year. This is due Foreign Economic Relations and capital in 1986 had the following to a series of policies China has Trade show that in 1986 China features: adopted to encourage foreign signed foreign loan agreements Foreign loans increased, investment and improve the totalling US$6,936 billion and because projects with the financial environment for foreign invest• used USS4.831 billion, up by 96.3 assistance from the World Bank, ment (including the Provisions for the Encouragement of Foreign The Liwang Shoe Factory, a Sino-Japanese joint venture in Nantong, Jiangsu Province, Investment isssued by the State exports ali its products to Japan. Council on October II, 1986, the 10 detailed rules and regulations and other preferential treatment offered locally). Between 1979 and 1986 China established 3,210 Sino-foreign joint ventures, 4,390 co-operative enterprises and 138 wholly foreign-owned enterprises. Nearly half of them have gone into operation and shown good economic results.

Co-operation With African Countries

n the first 10 months of 1986, I China signed 105 contracts on percent and 92.7 percent respec• the International Monetary Fund constructing projects and provid• tively over 1985. Contracts (IMF) and the Overseas Economic ing labour services with African involving direct foreign invest-, Co-operative Fund of Japan countries through international ment totalled US$3,308 billion, a entered a period of imple• bidding. These contracts are valued^at US$430 million, or 1.63 drop from 1985, and US$2,155 mentation; commercial loans also times the total value of contracts billion were put into use, up 10 increased substantially. percent. signed in 1985 with Africa. The value of new contracts Over 90 percent of these In 1986 China signed 1,460 involving direct foreign invest• contracts are valued at USffO contracts, 870 for establishing ment fell. The main reason is that million each and most of them are Sino-foreign joint ventures, 560 China began controlling the paid for in cash by international for co-operative enterprises, 18 for number of non-productive enter• financial organizations and other wholly foreign ventures and 6 for prises. At the same time China has multi-national organs. In ad• jointly exploiting offshore oil, all put more emphasis on encourag• dition, China also contracted together worth US$2.8 billion ing investment in advanced- some projects paid in kind. including USS1.8 billion already technology and export-oriented Last year, China not only put into use. These joint ventures enterprises. It is therefore only increased the value of such and co-operative enterprises natural that there was a drop in contracts in Egypt. Algeria and spread through all sectors of the the number of the newly approved Zaire but also opened new national economy and more than joint ventures with direct foreign markets in Benin, Ivory Coast and 70 percent of them are productive investment. Certainly, the envir• Zimbabwe, thus increasing the enterprises. Direct foreign invest• onment for foreign investment number of countries with whom ment from Hong Kong and should be improved and the China has concluded such con• Macao accounts for 80 percent. management and legal svstem tracts to 30.

38 BEIJING RFVinW, NOS. 5 & 6 Between 1979 and October 300,000 tons. Some of these ships European, African and Asian 1986, more than 30 Chinese are built to a high technical level, countries. companies concluded 621 con• according to Gu Guangshun, a In 1986 China met some tracts with African countries for spokesman for the China Ship• difficulties in exporting ships as constructing projects and provid• building Industry Corporation. international demand decreased ing labour services abroad, worth Gu said that ships to be and the price of raw materials and USff.68 billion, and established 30 exported in 1987 include two production costs rose. Despite co-operative enterprises in 69.000-ton-class oil tankers for this, China still made some African countries. Norway, a 64,000-ton Panama- progress, concluded contracts for type container ship for Hong building 13 ships with a total Kong and two 2,700-ton-class tonnage of 242,000 and finished Ship Exports Up multi-purpose ships for Denmark. and exported four ships with a To increase exports of ships, total tonnage of 123,000. Together China has also signed shipbuilding with platform ships and repair hina will export ships with a contracts with the Soviet Union ships, China exported ships valued Ctotal tonnage of 240,000 in and East European countries as at USSlOO million in 1986. 1987 and will contract another well as with companies from West The value of ships for export built by the Dalian Shipyard in 1986 ranks first in the Chinese Aeroplanes country. MIAO MING On Show in Paris

hina will show its A5-C attack Caircraft, FT-7 trainer and Y-1 2 ^^^^^ multi-purpose transporter for the first time at the 37th International Aviation Fair to be held on June 11-21 in Paris. These three aircraft will be shown complete with their missiles, bombs and auxiliary tanks. At the fair Chma will also demonstrate models of high- altitude, high-speed attack air• craft, bombers, helicopters, pilot- less aeroplanes, aviation motors, passenger aeroplanes, air-to-air missiles and sea defence missiles. At an international fair held in Sepiember 19S6 in Britain. China displayed models of its 8-11 attack aircraft for the first time, drawing great attention from international aviation circles.

FEBRUARY 9. J^gT .39 CULTURE/SCIENCE MLi&M^msmmmi^m^^mmk.^jah.

Thus began Yangjiabu's long Rustic Woodblock Pictures association with woodblock printing. angjiabu Village, in Shan• painted picture of a door god. The By the 18th century. Weifang Y dong's northern Weifang picture, which was painted by an had established 60 workshops county, is noted for its woodblock imperial artist, was enjoyed by which were producing 50 million prints depicting scenes celebrating everyone so they asked to have it prints annually. These were sold to the Chinese New Year. These copied. An engraver was found six neighbouring provinces and famous prnits first appeared who carved the picture onto a cities. Today, Weifang is still one during the late Ming Dynasty block of hard wood. Dipping the of China's three famous centres 11368-1644), when a eunuch, sturdy woodblock in ink, he was for these special Spring Festival returning to visit his family, able to make many copies which woodblock prints. The other two brouaht with him a coloiirfullv he then distributed to the viliasiers. major centres are Yangliuqing in Tianjin and Taohuawu in Suzhou. This originai printing plate of a Henan Province new year picture dates back to tlie Qing Dynasty. The colourful pictures are WANG GANGFA produced as a result of four main processes: drawing, engraving, printing, and mounting. The oriuinal drawing is first painted on a plain sheet of paper which is then pasted onto a flat board, usually made of birch leaf. A carver then begins engraving the woodblocks with the major images, using a separate block for each colour. The stack of paper which the pictures will be printed on must be carefully and securely mounted so. as each new colour block is applied, no movement vs'ill occur which would ruin the colour and continuity of the prints. The pictures are used chiefly as decorations during the Spring Festival. Quintessentially rustic 'X i vX! •.•;~•• and simple in form, the wood• block pictures are symbolic and romantic in content. The bold lines and bright colours often represent farmer's hopes for a peaceful and prosperous New Year, Among the most popular and symbolic prints are the door god, which is protectively pasted to the main entrance, the large character \\\\. "Happy Lot," which is tradition• ally placed on an inner wall facing m the main gate, the "Gods of For• tune, Emolution. and Longevity" would be put up on an inner gate, and the "qilin," a unicorn symbolizing fertility, would adorn a young couple's bedroom door asking to bring them happy, healthy children in the New Year. The folk art of Yangjiabu's woodblock printing has also

40 BEIJING REVIEW, NOS. 5 & 6 served as a medium for research• ing thelocal customs of Shandong Province. To preserve and study this traditional art, the Yangjiabu New Year Picture Research Institute was set up in 1979. It,has collected some 500 varieties of traditional New Year pictures and put out some 10 publications, including an Album of New Year Pictures. In addition to meeting domestic needs, the pictures have been exported to some 20 countries and regions including the United States, Japan, France, Holland, Southeast Asian coun• tries and Hong Kong. •

An Old Legend Finds New Expression Chen Yuanlin at work. \e;'ir on .lui\ iif the lunar Guiyang, Guizhou Province Here new dance-drama based on the caiCiidar. Ii0V'c\er. e\er during he received imnieasurabi.; expo• A legend of Niulang and Zhinu this cnchantirig annual reunion sure to traditional local operas (Cowherd and Girl Weaver), our heroic couple is separ,iie(j h\ and folk music In ! 978. he entered combines modern electronic music the Milky Way—in Chinese a.c ' \-,v»al CoS'^tiv.non ol with traditional Chinese folk "Silver River " The distraugjii " u M. ! .onvc- f on Mudeni. music. It was performed recently couple shed so inan> tears that, he o i>i,t o! 'Is r<. p ,indents, at China's Central Conservatory today, each year on July 7. people I ' r ' ""to the of Music in Beijing. Chen still expect heavy rain. ..on-ena J t I ' po- Yuanlin, a graduate student at the Ciien, a 29-year-old nati\ of siiK)r. ' „ .1 in V p, T-,r ed by conservatory, has turned the Gui/hou Province, developed his Pro!es.-.or ^-V u Z'lq ;'ng Caen's ancient legend into an innovative version of the legend for his nialO! vU' - .i - 1 J.h iii- experiment of music and drama. master's degree thesis. He ex• eiude .1 nj a iohn In the renovation, traditional plained his intention was to create sonata )!iJ a pu n u'. singing and lively dance are now- a work that was original, easy to Chen's interest in ekciroi\iC and accompanied manily by modern understand, and characteristic of compute; i.^ed composing carne to electronic instruments. Chinese folk music. the foie in 1984. when the The version of Niulang and "The story is very beautiful, and conser\;,'oiy held its first Zhinu on which Chen based his also very colourful," says Chen. "1 electronic music concert. He has score was written by playwright hoped that the electronic instru• since necome one of C'hinas Wu Zuguang in 1943. "Niulang" ments would be able to create j pioneers in this field, and the is the legendary name for Altair, special effects and give it a ; conservatory has already offered and "Zhinu" for Vega, two bright mysterious quality. Jo achieve ; him the job of siq^ervisisig its and steady stars in a constellation continuity among the story's electronic and com.putenzed com- in the heavens. The legend tells of episodes, Chen kept the structure j posinu iaboralcry upon his the story of Niulang, a mortal of the composition simple, 1 graduation. young man, who falls in love with building the score on small motifs Chen feels that there is more Zhinu, a beautiful fairy. They get which are repeated and inter• work lo 0.Q on 'tiu'ang and Zhinu. secretly married, despite the mixed. The .score uses Western Although the electronic instru• heavenly laws forbidding such twelve-tone compositional prin• ments have given tiie old story a unions. As a result, they are kept ciples and computerized compos• new and original quality, the asunder by the powerful Queen ing methods which are applied to music seemed imitative of the Mother of the Heavenly Emperor. traditional Chinese musical ideas. effect of a band. "1 plan to give it After their repeated requests to be C^hen began studying violin one more try, using only electroinc joined again, the couple is finally when he was nine. Six years later, instruments, in order to eliminate allowed to see each other once a he joined a Beijing opera troupe in this effect," he said. •

FEBRUARY 9,:19h7 LETTERS

Chinese Reform country, except China, has dared You gave a good analysis of the — Developing Marxism to face the facts, overcome these situation. faults, and eradicate those that Samora Machel's death was a were not in keeping with material tremendous loss for the people and cultural needs in the I have been reading Beijing struggling against racial dis• economic, political and cultural Review regularly for almost nine crimination. China has always construction. years, and find the magazine of supported people suffering racial great interest, for two reasons. discrimination around the world. I Finally, I would hke to say, admire China for this. Firstly, it gives reports on many reform may bring about some big aspects of modern China. This After the "cultural revolution," problems and many small mis• China overcame many difficulties, reason alone is enough to make it takes, but if corrected and of interest for anyone. But for me, and has solved many of the new examined in time they need not be problems that have arisen. It also the main reason is the second one; harmful. I think the CPC has been learning how such a complicated actively helps poor countries in working along these lines since its their fight for freedom. In military and vast country as China founding. develops Marxism in its national policy, China remains neutral Juantxo Aneaga between the two superpowers. In economy and political Guipuzcoa, Spain construction. this way it maintains friendly contacts with many other By reading your magazine I countries. know the Chinese people, their political leader the CPC, and other I agree with China's domestic democratic parties and people Domestic & and foreign policies, and oppose with no party affiliation, are international Events racial discrimination. China holds facing an unprecedented challenge a balance in, the world, it always to build China, with its population stands for world peace. of over a billion, into a highly I read Beijing Review No. 45, Your articles on world events modernized country, and that 1986 with great interest. In BR I are fine, and show that China has China's cultural progress is get news of China and other a deep understanding of diploma• unparalleled. countries, which I don't from tic affairs. People's China and China Pie- Alma Van de Pol Recent articles on political and torial. For instance, the articles in Holland economic reform have been very that issue "US-Soviet Relations, interesting. Especially the follow• Twists and Turns After the ing two: the reprinted "Resolution Summit." "Dr. Sun Yat-sen's of the Central Committee of the Message for Today," "The Tujia Communist Party of China on the People: A New Image" were very Guiding Principles for building a interesting. However, I think you Socialist Society With an .Advan• should print photographs to show ced Culture and Ideologv" (issue more graphically what you say No. 40, 1986) and "Why the about national minorities or Political Svstem Needs Further scenery. It was very interesting to Reform" (issue No. 33. 1986). read about the Tujia nationality, China's present reform — an but you ought to have introduced unprecedented event in the history its traditional customs and culture of socialist construction is being while dealing with their new life. led by the CPC. Eiji Asano The CPC again is the party, Shimane, Japan which dares to break away from existing models and ideas, and while applying Marxism, is combining socialist construction and development with modern Struggle Against times, and is -taking a historical Racial Discrimination step forward. All socialist countries have some shortcomings. This applies I liked the report about the also to China not only in the past death of President Samora Machel but in the present too. But no (in Beijing Review No. 45, 1986).

42 BEIJING mvirew. NOS. 5 & 6 New Year's Woodblock Prints'

Beijing Opera.

The Door God.

Peace and Happiness.

Child with Chickens.

^Jr :K. »

Woodblock prints are part of the Chinese New Year's (Spring Festival) tra• dition. The pictures here come from Yang- jiabu, a village in the Shandong Province city of Weifang.

ART PAqE

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