High-Speed Economic Growth of 1984 US Dollar Versus Other Western Currencies Chinese Women Devoted to the Modernization Drive
Vol. 28, No. 10 March 11, 1985
A CHINESE WEEKLY OF NEWS AND VIEWS
High-Speed Economic Growth of 1984 US Dollar Versus Other Western Currencies Chinese Women Devoted to the Modernization Drive
Jin Qunying (left), deputy chief engineer at the Yibin Chemical Plant in Sichuan Province, has been rewarded for her Lin Shengrong, a university graduate, works at the Gezhouba achievements in scientific research. SPOTLIQHT Hydroelectric Power Station. She worked out the programme for the computer-controlled cement mixer, which has greatly raised work efficiency.
Zhang Aiping (right), a worker with thel Wang Hongyi, a Liuqin (a plucked string Dondong Wristwatch Plant in LiaoningI i instrument) player with a cultural troupe of ^rovince, fulfilled her 10-year prodyctioni the People's Liberation Army, often performs quota in five years. She was elected ol in border areas and on islands. She has deputy to the National People's Congress. received an award. HIGHLIGHTS OF THE WEEK
Vol. 28, No. 10 March 11, 1985 Reforms Invigorate 1984 Economy CONTENTS Among last year's economic successes was a 14.2 percent increase in the gross output value of industry and agriculture, NOTES FROM THE EDITORS 4 up to 1,062 billion yuan. More than 407 million tons of grain Party Consolidation Enters Second were harvested, keeping China's status as the word's largest Stage grain producer. Other achievements are also outlined in this article by the minister in charge of the State Economic Com• LEHERS 5 mission (p. 15). EVENTS & TRENDS 6-10 State Contracts Commercial Out• lets US Dollar Versus Other Western Currencies Auto Industry Hits Boom Times War on Rodents Marks Rot Year After analysing the factors favorable to the US dollar, this Women Claiming Their Legal article concludes that the US dollar's rapid rise will slow and Rights hover around the average 1984 level. It predicts the future de• Education, Concern Reform Con• velopment in the dollar's exchange rates with five major Wes• victs tern currencies (p. 18). INTERNATIONAL 11-14 Japan: Economic Growth Brings Changes Party Consolidation Enters Second Stage Jordan-Palestine: Middle East Stalemate Broken The second stage of Party consolidation, begun last win• India-Pakistan: Encouraging Signs ter, will be carried out in conjunction with the economic re• of a Thaw South Africa: Prosperity From forms, to help the Party contribute more to the nation's devel• Workers' Misery opment. After summing up the achievements and problems of Reforms Invigorate 1984 Economy 15 the first stage, this article defines the aim of the second stage (p. 4). Western Money Market: What's in the Cords? 18 Notes From Shonxi (IV): Miners' Loss Makers Should Be Closed Down Past and Present 21 Businesses operating at a loss have reduced China's revenue Discussion: How to Deal With and slowed down modernization. One of the ways suggested Losing Enterprises 25 to solve the problem is to close down these enterprises. The FROM THE CHINESE PRESS 27-28 advantages of this method, and the policies and measures taken to handle the consequences of their closure are discussed BUSINESS & TRADE 29-30 (p. 25). CULTURE & SCIENCE 31-32 SPORTS 33 Japan Experiencing Rapid Changes BOOKS 34 After a period of rapid economic development and single- COVER: The Dong people In Guizhou party rule, Japan is experiencing wide-ranging political, eco• celebrote one of their traditional nomic and psychological changes. An analysis spells out these festivals. Photo by Li Dongri changes and identifies some trends (p. 11).
Published every AAonday by China International TradinDistributeg dCorporatio by n I SubtcripMon prices (1 year): BEIJING REVIEW (GUOJI SHUDIAN), Awtrolo .A,$14.00 USA US$1 8.00 24 Baiwanzhuang Road, Beirmg P.O. Box 399, Beijing, China New ZealoiMl... NZ.S18.00 UK. £8.00 The People's Republic of CNna Canada Can. $15.00 NOTES FROM THE EDITORS Party Consolidation Enters Second Stage series of correct principles and take advantage of their positions byANZHIGUO policies. The first task of the and power to allocate more hous• Political Editor • present Party consolidation is to ing for themselves or to secure The Party consolidation has achieve ideological unity through• jobs for their sons and daiighters been going on for more than a out the Party. This is particularly has been stopped. Many Party lead• year. In the first stage, the con• important for the central and ers have repeatedly solicited the solidation of Party organizations provincial leading bodies which opinions and criticisms of the peo• in the departments of the Party were involved in the first stage of ple, made earnest criticisms and Central Committee and in the the movement, because they self-criticisms and have gone deep ministries ^ and commissions of shoulder the heavy responsibility into the grass-roots units to solve the State Council; in the leading problems through investigation bodies of the various provinces, and study. The improved working municipalities and autonomous re• style of Party cadres has raised gions; and in the People's Libera• the Party's prestige among the tion Army was basically com• people. pleted. The second stage of Party consolidation will be A great deal of meticulous work The.second stage began in the carried out in con'iunction has also been done in dealing with winter of 1984 and will continue what is known in China as the through the end of 1985. Party with the economic reforins, "three types of persons," namely, consolidation is now being car• so as to achieve the persons who rose to prominence ried out in the prefectural and goal of promoting the by following the counter-revolution• county organizations and in enter• economic development ary cliques of Lin Biao and Jiang prises, institutions and other units Qing in "rebellion," those who equivalent to these two levels and through Party are seriously factionalist-minded, is expected to be completed by the consolidation. and those who engaged in beating, end of this year. Party organiza• smashing and looting during the tions below the county level are "cultural revolution." The major asked to fulfil the task by the end task is to ferret out these people of next year. of implementing the current princi• from leading organizations, key At the beginning of the con- ples and policies of the Party and Party and government departments sohdation, some people were wor• state. By negating the policies, and the ranks of cadres in reserve. ried that it might go too far, as theories and methods of the Some progress has already been did past political movements. "cultural revolution" through made. Those who are found to be Others thought it would be a mere education. Party members have among the "three types" are dealt formality and would come to acquired a better understanding with differently according to their nought. But according to the Party of what damage the "leftist" specific cases. Some organizations Central Committee, the Party mistakes have caused, and have in which these people held sway consolidation should solve prob• heightened their consciousness and or which were thrown into con• lems while not affecting the determination to implement the fusion by thern have been dis• political stability and unity and Party's current line, principles banded or reorganized. Some the socialist modernization drive. and policies. people who stubbornly cling to Guided by this principle, the Units involved in the first their reactionary stand have been consolidation has proceeded in a stage of the Party consolidatioii punished according to Party dis• healthy way and much has been have earnestly investigated and cipline and state law. achieved in the past year. dealt Svith people seeking to ad• In the Party consolidation, the Since the Third Plenary Session vance personal interests by abusing overwhelming majority of Party of the 11th Central Committee, the power and the serious problems of members have been better educat• Party has systematically corrected bureaucratism. For instance, the ed. Their Party spirit and sense its "leftist" mistakes and formed a tendency of some Party cadres to of discipline have been strengthen-
4 Beijing Review, No. 10 LETTERS
Hongkong Question eral times. You give a lot of in• The signing of the Sino-British formation based on the facts of joint declaration on the question your vast efforts to develop and of Hongkong at Beijing's Great industrialize China. Hall of the People on December 19, The articles which you 1984 (see our issue No. 52, 1984), published on Tibet and Xinjiang ed and they have become more was appreciated worldwide. It is a conscious of playing the vanguard were very interesting and instruc• and exemplary role in their work turning point for China's peaceful tive. They helped me understand and among the people. open policy of "one country, two the geography of China and the systems." customs of the different ethnic Of course, the first stage of the Looking forward, the remaining groups living in those regions. Party consolidation left much to obstacles history has left concern• Your information about the devel• be desired. For example, the goal ing Taiwan and Macao will be ne• opment of salt deposits in Qinghai of streamlining Party and govern• gotiated satisfactorily. In general, Lake and a new railroad line to ment institutions has not yet been all territorial disputes among na• Tibet show China is making huge realized. In some units the leader• tions should be settled in a manner efforts to build itseJf into a mod• ship has not been reorganized well similar to the Sino-British agree• ern socialist country. and their Party consolidation has ment. not achieved desirable results. Osmanos O. Haji China had opened four special Some Party and government insti• economic zones like Shenzhen. tutions and some cadres have taken Merca, Somalia Your magazine gives a marvellous advantage of the loopholes in the "Places in This Issue" description of the region's steady current economic reforms to seek Useful development. China has also personal gain, and units involved opened 14 coastal cities to foreign in the first stage of the Party con• In your issue of January 7, I was very glad to find the liftle investment which will bring you solidation have not made sufficient more advanced technology. You efforts to correct this new unheal• map entitled "Places in This thy tendency. These remaining Issue." It was especially useful to have given a good description of problems have not escaped the at• me because I belong to an older each coastal city, including pic• tention of the authorities in charge generation who has been accus• tures of their good harbours. of the Party consolidation, and tomed to the former English China is constantly building measures are now being adopted spellings for places in China. electric power plants, reservoirs to resolve them. Arthur R. Smith and dams in all its provinces. Connecticut, USA China is also very advanced in The units involved in the sec• building factories which produce ond stage of the Party consolida• More Rural Pictures textiles, clothing, porcelain and tion will achieve better results be• Your layout is excellent and machine-tools. China produces cause they can learn from the ex• you explain so much to your read• machines it needs to meet its de• perience gained in the first stage. ers about China. However, I feel mands. The second stage of the Party con• more could be done if pictures of solidation will be carried out in the countryside, preferably colour China has a great news agency conjunction with the economic res• ones, were shown in the magazine. called Xinhua, which publishes re• tructuring, so as to achieve I suggest that the centre pages be ports, reviews and catalogues full the goal of promoting the economic set aside for these pictures. of comments and viewpoints. Chi• development through the Party na also publishes books and consolidation. Solomon Agyemfra encyclopaedias on economics, Accra, Ghana business, history, politics and Information Based on science, which sell all over the Facts world. I enjoy reading your magazine, Y. H. Wong SCO and sometimes read one issue sev• Curepipe, Mauritius
March 11, 1985 5 EVENTS AND TRENDS
State Contracts Commercial Outlets
There's an old Chinese saying their service and consequently Uneased by the drop in its seed that "the daughter of the emperor yielded higher returns. For sales, the state shop changed its has no trouble finding a husband." example, contracted hair-styling management and began producing salons, public baths and res• "Spring-Greeting Melon Seeds," a A modern counterpart might be, taurants in Jinan, the capital of product more to the taste of the "The employee of the state-owned Shandong Province, increased consumer. The state shop also store has no trouble getting pay." their monthly business volume by adopted four measures to improve Like the emperor's daughter, 22 percent, 98 percent and 9.3 its service: It hired skilled workers who did well in marriage even if percent, respectively. at high pay, reduced its costs, ex• she lacked beauty or talent, the panded its business scope and state store employee gets a good Song Tiezhu, a bicycle repair• modernized its production by con• wage even if his performance and man in Beijing, leased a bicycle tracting a foodstuff research centre attitude are bad. repair shop in the city's Shijing- as its consultant. shan district last year. Soon after But in many parts of China the taking over the shop. Song The competition has resulted in state store clerk is in danger of displayed an announcement out benefits for both the consumer losing his guaranteed wage. In an front. It reads, "Anyone who has and the state. The shop .now effort to improve service and bicycle, pedicab or wheelbarrow sells about 5 million kg of melon make retail outlets more efficient, repaired in this shop will receive seeds every year. With the 100- the state is gradually contracting a one-month warranty free of fold increase in business, each many small commercial outlets to further charge." He even sleeps in employee is producing an average individuals or collectives. And his shop just in case somebody of more than 20,000 yuan in profit with closer management, the store needs urgent repairs at night. for the state treasury. clerks must shape up or ship out. The contracting of state-owned According to a nationwide commercial enterprises has resulted survey, more than 43,000, or half in some competition between in• Auto Industry the small state-owned commercial dividual enterprises and those outlets, have been turned over to which are still state-managed. A Hits Boom Times collective or individual manage• case in point is the competition ment. Of the 43,000, 82 percent China, known the world over as between Nian Guangjiu, a pro• are still state-owned but collective• a "country of bicycles," is slowly ducer of what he calls "Fool's ly managed and 10 percent are being transformed into a "country Melon Seeds," and his rival, the fully owned and operated by of vehicles" as more and more state-owned roasted products shop, collectives. The remaining 8 per• trucks and cars take to the which has traditionally supplied cent have been leased to in• highways, dividuals. the cream melon seeds to con• sumers in the city of Wuhu, An- China's automotive industry Among the enterprises contracted hui Province. turned out more than 300,000 to collective and individual vehicles in 1984, a 27 percent in• management are hotels, vegetable Bound by the bureaucratic crease over 1983. Production, stores, restaurants, laundries, restrictions of the past, the shop however, falls far short of demand, repair shops, hardware stores, por• was reluctant to expand its and the quality of new motor trait studios, small food stores and business. Every year, it sold at vehicles is still lacking. public baths. In some cities, plans most 50,000 kg of cream melon The motor industry's growth, have been made to contract out seeds, and all were of poor quality according to Chinese auto experts, state-owned grain distribution cen• at that. came on the strength of an in• tres and small industrial enter• To challenge the shop, Nian creased demand for vehicles by the prises. introduced his tasty "Fool's Melon nation's farmers, who have be• Many of the enterprises have, Seeds'* and soon enjoyed brisk come prosperous with the agricul• after changing hands, improved sales. ture responsibility system. The
6 Beijing Review. No. W 2,000 factories devoted to automo• tive vehicles and parts. The in• dustry will be restructured and co• operation with foreign auto manu• facturers will be sought, including the assembly of imported compo• nents. Meanwhile, the industry will build up a powerful research contingent which will design and build modern vehicles for both the domestic and international markets. To meet the immediate domes• tic demand, China is taking sev• eral measures. Mass-production is being organized along specialized lines and joint ventures have been formed to assemble imported New trucks are readied for delivery to the countryside. components. The industry is giv• rapid development of the national dustry has to leap four decades into ing priority to producing trucks, economy, which has seen industrial the 1980s. How can it be done? farm vehicles and taxis, which are output value leap by 14.2 percent all in short supply. over 1983, is also a factor in the Auto industry leaders have For the time being, due to its vehicle boom. already mapped out a programme economic limitations, China will for future development. In the concentrate on producing efficient The current government policy years prior to 1990, China plans high-quality vehicles rather than of encouraging state, collective and to import the technology to pro• de luxe sedans. private highway transportation, duce 600,000 up-to-date heavy- particularly in the rural areas, has duty trucks, medium-sized vehicles, To boost rural transportation, contributed to the good times for light vehicles, jeeps and cars. the State Council recently decided China's auto industry, said He With these new models, the auto to sell 76,500 vehicles in the coun• Zhongbin, deputy manager of the industry will try to carve out a tryside. Some 70 percent of those Shenyang Automotive Industrial place in the international market. vehicles will be sold to peasant Co. Equipped by the Soviets in By the end of the century, the in• transportation co-operatives with the 1950s, the Shenyang auto dustry will be producing its own the remaining 30 percent going to plant produced more than 10,000 vehicle designs capable of compet• individuals. vehicles in 1984, up 47 percent ing on the world market. To eliminate the backwardness over 1983. The company plans to To realize this ambitious plan, of the automotive industry^ China double its output this year to meet has joined forces with auto com- the truck needs of the domestic China will renovate its more than market, said the deputy manager.
It will not be easy, however, to PLACES IN THIS ISSUE meet the growing demand. Most of China's existing auto plants are outdated, furnished with equip• ment made in the 1940s. Though China did import Soviet equipment for the Changchun plant in the 1950s and French equipment for a Sichuan plant in the 1960s, these factories Jiave never been updated with new technology. In order to produce what China Automotive Industrial Co, President Yao Bin calls "dynamic and Competitive" vehicles for the international mar• (1) Changchun (p. 7) (2) Shenyang (p. 7) (3) Yanzhou (p. 7) ket, the Chinese automotive in• (4) Zhengzhou (5) Ningling (p. 8) (6) Wuhu (p. 6) March 11. 1985 7 panics from the United States, the Varied Tactics. Han Minle, a Federal Republic of Germany and former Henan veterinarian, gave NEWS IN BRIEF other countries to produce jeeps, up his directorship of the Ningling cars and other vehicles. County Animal Hospital in 1983 More than 940,000 people In addition, China has switched when the leadership of his pest- from Hongkong and Macao over some military factories to pro• ridden county asked him to form made the trip home to ducing much sought-after heavy- the county's first rodent-ifighting Guangdong Province for duty trucks and minibuses. squad. Spring Festival (February Han trained 20 people, then 20). led them to a village where War on Rodents rats roamed in packs in broad The number of visitors daylight. In eight days they killed entering Guangdong between Marks Rat Year more than 1,000 rats and drove February 10 and 22 was 34 the rest away, at least during day• percent more than last year, In the Chinese lunar calender, time. said provincial officials. the year just passed was called Year of the Rat. But rats are not The initial success brought more At the same lime, 420,000 really as likable as the 11 other recruits to the squad, which ex• Guangdong rcsidcnib dc animals used to symbolize the 12- panded to become the Ningling parted In join ihoir relatives year lunar cycle. In fact, the past County Pest-Fighting Company. in Ilongkoiiji and Macao. 82 lunar year saw a war against the Han became its manager. percent more than in 1984. rodents. But complaints accompanied the According to incomplete statis• praise when farmers' livestock died Tran'^portatioii Drficials in tics from 17 provinces, autonomous from eating dead rats or poisoned Shon/hcti, Zhuhai and otiior regions and cities, more than 526 bait intended for the rodents. Han bi'rdcr i:rcas improved hus million rats were killed on farms and his colleagues tried to develop and ta\ ^crvicc^ to hinullc last year, meaning about 5 million a new chemical poison which ihe influx nf iravciii-M-. tons of grain and oil were saved would be fatal to rats but harm• from the pests' stomachs. less to other animals. Few ordinary Chinese people After hundreds of experiments, know why the animal was chosen they developed nine different l.\pui;s lann the Chinese to represent a lunar year. They rodent poisons which have proven mainlj:id lo I aiwun via have always seen the rat as, a sign fatal to different species of rodents Honiikoiin wcic worth of bad luck, evil and disaster. but harmless to other animals. liKS"-^''-' million ill 19J<4, or When a Chinese proverb or idiom They also developed a substance 4) percent jump fri 8 Beijing Review, No. 10 pie have learned to "sweet talks" rats to death. Zhao Shengcheng, a " rat lin• guist" from Shanxi Province, can squeak like a rat. During the rats' mating season, he can sound like a male rat calling the female rats out of their holes. Once above ground, he kills them. How• ever, it is difficult to pass on Zhao's skill to others. The "electric cat" — an electric mousetrap — is easier to apply widely. The "electric cat" needs no bait. Rats do not fear or sus• pect it, so nine out of ten are taken in by the gadget. In Chengdu, the capital of Sichuan Province, "elec• tric cats" killed about 337,000 rats Young Pioneers Run Restaurant within three months, with none of Customers at the Red Scarf Restaurant are served by a lovable the side-effects chemical killers attendant. The restaurant, which opened February 1, is in the "Big World usually produce such as poisoning of Shanghai's Children," a youth-oriented theme park. The restaurant's positions, from manager to waiter, are all filled by children. The Red livestock or people. Scarf has 60 seats and serves coffee, bread, fried beefstealc and a dozen other dishes and pastries. Some people say the best and most economical way to eliminate rats is to maintain a proper ecolog• women of all ages on legal issues tude that women are inferior, how• ical balance. An article in Renmin such as marriage and property ever, did not disappear with the Ribao (People's Daily) recently disputes. birth of a new society, said Liu, suggested that all the natural the women's federation legal Ma Yuan, a deputy presiding enemies of rats be protected. It advisor. judge of the civil division of the urged people to raise more cats to Supreme People's Court, said that Old feudal ethics which urged a kill rats. "If we do so, the plague some 70 percent of the plaintiffs woman to obey her father before will be greatly weakened and peo• in divorce cases in China are marriage, her husband after mar• ple can have a good sleep without women. Many women today are riage and her son after the death worries," the article said. showing that they know their legal of her husband still influence rights and know what to do in a some, said Liu. Women are still lawsuit, said Ma. "I am deeply maltreated and discriminated Women Claiming impressed by them." against in some places. Their Legal Rights The judge's impression is shared All this, said Liu, hal left many by her male colleague Tang Dehua, women apathetic and unaware of their legal rights in marriage, A growing number of Chinese who said many women are not family life and property in• women are seeking legal recourse only aware of what the law per• heritance. instead of remaining silent when mits, but also know how to legally their legal rights are violated. protect "themselves when their Liu attributed recent progress to rights are violated. the spread of legal knowledge and Liu Qingming, an official in the the improvement of women's edu• legal advisory office of the All- Thousands of years of feudal in• cation and economic status over China Women's Federation, said, fluence had weakened legal the past few years. "The fact that more and more a\yareness in China, especially women come to me for help shows among women. Tang explained. With economic reform, she said, that they are becoming aware of "The progress in recent years is more women, especially in the their -legal rights. I regard this as therefore encouraging," he said. country, are entering business and a reflection of the social progress Equality for Chinese women in are eager to acquire legal knowl• in recent years." all fields has been protected by edge to protect their rights. Liu and her six colleagues last law since the founding of New To meet this need, the All-China year advised more than 20,000 China in 1949. The feudal atti• Women's Federation and other March 11, 1985 9 organizations last year launched a Educating convicts is not easy, law publicity month, which focuss- because their social environment Around the Globe ed on the protection of women's and individual psychology con• and children's rights. tributed to their crimes. When Antarctic Expedition Com• labour is used as the major means, Almost all large women's federa• pletes Its Mis&ion civil management is also necessary. tions offices have legal advisory The first .Chinese Antarc- services for women. They publicize In Shenyang, a convict was iic biii\L\, the Xit;i]^- the law, give free legal advice and kicked by a staff member for some yanghvng W, is on its wa> help women plaintiffs with their reason. The reformatory's leader• back home. Chines- -.cien- court cases. ship ordered the staff member to make a self-criticism before all the tists succesiifully fulfilled convicts in order to discourage their mission of conducting Education, Concern beating, cursing, and other uncivil ^ surveys and setting up the management methods. The 63- Oreat Wall observation sta• Reform Convicts year-old convict was so moved, he tion on the southernmost said, "I know how prisoners were continent To reach the goal of moderniza• treated before liberation. Only in tion within 15 years, China has New China can we be treated as ' l4!l|e^ia Invites China to decided to encourage convicts to real people." ' ''JNmAjng Observance do their bit too. The reformatory staff show Althmighr thcri: ar.- no di- Efforts will be made to turn warmth and concern for the in• ploinitic n;liitibn& .bcivkccn existing reformatories into educa• mates, too. This often reaps un• China and Indonesia, .Judo- tion-through-labour schools within usually satisfactory results. During nc. Most of the convicts in the re• used what they have learnt in the Ihotiog. uj''vi-i-.il pii'tnary formatory are in their twenties reformatories to become jpros* e 10 Beijing Review. No. 10 INTERNATIONAL Japan period of slow but stable growth. Many Japanese think the time is right to change from an export- Economic Growth Brings Changes dominant economy to a domestic demand economy. At the same time As the structure of Japan's economy changes, the they believe adjustments in the in• politics and national psychology must also readjust. dustrial and employment structure are essential. The old industries such as steel, automobile, chemical by HUANG QING provides for some flexibility in party policies. The party members and heavy machinery, which were who do not support the policy can developed during Japan's quick "I QOC is an eventful year for make their opinions known in the growth period, are either stagnant Japan. It is 100 years JLVOD course of factional fighting. or shrinking. Technological updat• since japan established its first ing of traditional industries and the At present the Liberal Demo• cabinet, 40 years since its surren• production of durable goods are cratic Party has difficulty gaining der ended World War II and 30 also declining. Although new a stable majority in the Diet, Ja• years since the Liberal Democratic technology and new industries are pan's parliament. Of the 50 local Party came to power. The Jap• emerging, their real applications parliaments, the Liberal Democrats anese public believes their coun• are still not quite clear. The de• have a majority in only five. Su- try is at a crossroad now; mand structure of the Japanese sumo Nikaido, vice-president of the changes in politics, economics and economy is still being worked out. national psychology are taking Liberal Democratic Party, conclud• place. ed at the end of last year that the Japanese enterprises are now era of the Party's complete control changing their focus from quantity Unlike the Western countries, of Japanese politics was over. He to quality, and from capital inten• where two or more political parties said he would take part in the elec• sive industries to knowledge inten• take turns to rule, Japan has been tion for prime minister as part of sive ones. Against this background, dominated by a single party for 30 an alliance with the Komeito Party the number of medium and small years. After the Liberal Democratic and the Democratic Socialist Party. Party took power in 1955, it con• enterprises will increase again, and But the idea was opposed by former management methods will also centrated its efforts on the Prime Minister Kakuei Tanaka, the change. Analysts believe the de• economy. The Japanese economy head of a very powerful faction mand for clothes, food, housing and developed very quickly and the within the Party, and by the Party's durable goods has fallen off, and people's living standard rose rapid• mainstream faction. At the Party's a high income is not as attractive ly. Japan's progressive taxation and 45th conference last January, to the Japanese as it once was. wage system distribute the nation's Secretary-General Kanemard pub• Japanese enterprise management wealth more evenly than in most licly criticized other similar ideas methods, which include lifetime Western countries. Now, most of both inside and outside the Party. the Japanese people are well pro• employment, a seniority wage sys• vided for, and the new middle class, Japanese politics can be divided tem and extensive welfare bene• representing about 80 percent of into three periods after 1955. At fits, are special outcomes of the the electorate, accepts the present first, two major parties, the Liberal speedy development. They are political system in which a balance Democratic Party and the Socialist bound to change as the economy is maintained among the pivotal Party, confronted each other. Then changes. Liberal Democratic Party and six other parties arose. Finally a bal• The national psychology has also other parties. ance of power between the Liberal changed. While the new middle Democratic Party and other oppo• Within each Japanese party are class accepts the current system sition parties was maintained. The many factions. This is especially with its high living standard, they future may be a political coalition, true in the Liberal Democratic do not totally identify themselves some Japanese politicians predict. Party, in which some factions are with the concepts and values rep• nearly as large as a separate polit• In 1983 the Japanese economy resenting the system. Anti-indus• ical party. Although this style of pulled out of a three-year reces• trialist and environmental protec• politics has its shortcomings, it also sion, and now it has entered a tion movements show their poten- lUarch 11, 1985 11 tial dissatisfaction with japan's the overwhelming majority of Japa• Expounding on his theory on course. The generation gap is also nese people dislike war and want settling the Middle East issue, growing. Traditional values such the past 40 years of peace to con• Hussein raised the concept of as hard work, diligence and effi• tinue. They are pursuing new "peace in return for land" last ciency no longer dominate, and values, though not traditional, but October 1 before the Jordan Par• many people are pursuing a life• still Japanese. liament. And at the opening cere• style they find more meaningful. mony of the 17th session of the The problems of welfare have Palestine National Council (PNC) Will the "big nation" or "first also spread in Japan, as in most late last November, Hussein reit• rate country" mentality revive in Western countrie's. In a society erated the principle and called for Japan and lead to chauvinistic ad• with high wages, many welfare Jordan and the PLO to adopt joint ventures? This question haunts benefits and high consumption, no action on the basis of United Na• many people, both within and politician dare to face the conse• tions Resolution 242, which calls without Japan. Some believe that quences of lowering the people's for the return of occupied ter• because the Japanese refused to standard of living. ritories by Israel and respect for examine themselves after the war. the right of every state in the they have the potential for a dan• Japarese products are becoming Middle East to live in peace. The gerous future. On the holiday for less competitive as their costs rise. PNC session decided to seek ties the grown-ups, a group of young If Japan lost its superiority in tech• with Jordan to take joint action people wearing black kimonos and nology and capital, it would be very in peace talks. The PLO also es• singing samurai songs marched in hard to imagine how the island na• tablished a special committee to front of the Meiji Shrine. Spirits tion could prosper. The emphasis work with Jordan as Hussein had from the past still live deep in the on technology in recent years shows proposed. minds of some, and may re-emerge clearly that the Japanese know given the right circumstances. But where their economic future lies. Early last December Hussein visited Egypt and repeated his sup• port for the principle of "peace in Jordan-Palestine return for land" as a means of settling the conflict between the Middle East Stalemate Broken Arab nations and Israel. Hussein proposed that Egypt, An agreement between Jordan and the Palestine Libera• Jordan and the PLO jointly push tion Organization to work jointly towards peace could be along the peace process. Since the basis for a Middle East peace conference. then leaders of the three countries have met frequently to co-ordinate their actions with each other. by ZHU MENGKUl in the Middle East. Egypt and Jordan stressed that Starting October 1982, Arafat Palestinian representatives must ASSER Arafat, chairman of the and Hussein held repeated talks attend the peace talks as an equal Y Palestine Liberation Organiza• on how they might organize a member and called for an opening tion (PLO) Executive Committee, joint Jordan-Palestinian delegation of an international meeting as soon and King Hussein of Jordan signed to negotiate with the United States as possible. an agreement February 11 to send and Israel. They tried to work out For several months Egypt has a joint negotiating team to a future a joint strategy on how to deal strongly urged the United States to international conference aimed at with Reagan's Middle East initia• change its stand on Palestine. solving the Palestine issue and tive and the Arab 1982 Fez Plan Meanwhile, Jordan and the PLO achieving peace in the Middle and how to establish a confedera• held their talks on joint action and East. tion. Due to differences within discussed ways to bridge their dif• The full text of the Amman the PLO and within the Arab ferences and work together for agreement was made public on world on how to achieve a Middle peace. February 23. It reaffirmed the East peace and due to the US and It was reported that King of Palestinian people's right to self- Israeli stubborn refusal to attend Saudi Arabia Fahd passed on the determination and to build their peace talks with a PLO delega• contents of the Jordan-PLO agree• own country. It also spelled out tion, their efforts have made ment to US President Ronald Rea• five principles for returning Arab little progress. As a result, the gan during his mid-February territories occupied by Israel since Jordan-PLO accord to adopt joint Washington visit. Fahd encourag• 1967 as a way of realizing peace action did not come easily. ed the United States to lose no 12 Beijing Review, No. 10 time in talcing action to solve the with the PLO and has rebuffed gerian President Chadli Ben Palestine issue as early as possible. Arafat's initiatives. Djedid, Jordan King Hussein, United Arab Emirates President Some West European countries Arafat and Hussein recently Shaikh Zaid Bin Sultan Al-Nahay- have mediated between the Arab visited several Arab countries to yan and Moroccan King Hassan II nations and Israel in the hope of inform leaders about the content will also visit the United States breaking the deadlock in Middle of the agreement and to explain in the coming weeks. East peace talks. The United their position. Both Jordan and States and the Soviet Union have the PLO have agreed to send the Some observers believe the also consulted each other on the agreement to the United Nations stepped up shuttle diplomacy be• Middle East. if they win support of other Arab tween the United States and the nations and to urge the United Arab countries could lead to the The joint action accord between States to adopt a just stand on the resumption of peace talks in the Jordan and the PLO received both Middle East. Middle East. The Jordan-PLO cheers and criticism upon its an• accord, which lays out a com• nouncement. Egypt, Morocco and Egyptian President Hosni Mu• prehensive programme for settling Saudi Arabia praised the agree• barak was due to visit the United the outstanding issues, could pro• ment, saying it provides a good States in early March. And Al- vide the basis for such talks. opportunity lo restore peace to the Middle East. Libya, Syria and Democratic Yemen attacked the accord, arguing that it deepens the India-Pakistan differences within the PLO. Some Gulf countries were cautious and kept quiet about the ]ordan-PLO Encouraging Signs of a Thaw accord. Relaxed tension between the two South Asian powers Farouk Kadoumi, head of the has given the hope that relations can be normalized at PLO's Political Department, said an early date. on February 25 that Jordan and the PLO may be interpreting the accord differently and the differ• by SHI ZONGXING in the middle of this month. This ing readings could lead to disagree• is the first time the door has been ment. The PLO Executive Com• INCE the beginning of this year open to travellers since 1947, when mittee approved the agreement S there have been signs of thaw• India and Pakistan were divided. ing relations between India and February 20, but its interpretation The third event took place Pakistan. Three events in the past of the document's wording differs during the conference of the stand• two months have brought hope that with Jordan's. ing committee on South Asian co• relations might be normalized at an operation held last month in Male, Last week Jordan agreed to early date. revise some aspects of the joint the capital of the Maldives, when plan, PLO representatives travel• The first is that the Pakistan the foreign secretaries of India and led to Amman March 4 to discuss government decided to try the cap• Pakistan met for talks. This was the revision. The Soviet news tured Indian Sikhs accused of their first contact since last July. agency TASS announced February hijacking two jet liners last year. Indian External Secretary Romesh Bhandari said their talks were de• 19 that the Soviet Union disap• It is retried that the trial will tailed and significant. Pakistani proved of the agreement. TASS take place this month. The Indian Foreign Secretary Niaz Naik noted said that both the United States government has commented that their meeting has opened and Israel hope the accord will favourably on Pakistan's decision. Indian Prime Minister Rajiv Gan• bright prospects for restoring nor• melt away resistance to the US- dhi called it the first positive step mal relations between their two Israeli Middle East plan. Reagan in improving bilateral relations. countries. welcomed the agreement, calling the accord a sign of progress in The second event was a decision Many diplomats in New Delhi the Middle East. Israeli Prime last October that each country will and Islamabad believe negotiations Minister Shimon Peres said the receive 8,000 tourists a year from on a no-war pact between India agreement does not provide a "full its neighbour. Travel agencies are and Pakistan (India's proposal is foundation" for peace talks. Israel busy preparing, and the first group for a treaty of peace and friend• has in the past refused to negotiate of Pakistani tourists will visit India ship) will be resumed after the March 11, 1985 13 Pakistani general elections and said in the Rajya Sabha (Council an unwritten law that whoever Indian state assembly elections. of States) that Zia's talk with him does not work well, or complains last November is encouraging and of dissatisfaction will be dismissed Leaders of the two countries that India is ready to respond. with his or her entire family within have repeatedly expressed their The tense relations between 72 hours. Most are sent to a Ban- willingness to improve bilateral these two countries are now re• tustan — the so-called black relations in recent months. In his laxing. India and Pakistan, being "homelands" — where overpopula• message of greetings to Gandhi on the most influential in southern tion and infertile land make life a India's 36th Republic Day on Janu• Asia, the state of their relations constant hardship. ary 26, Pakistan President Zia ul affects not only their own peo• Haq said that Pakistan will spare ple, but also the peace and According to a recent survey, no effort to strengthen mutual stability of the whole sub-con• about 81 percent of the blacks in understanding, confidence and tinent. Observers are hoping the the Bantustans live below the trust. Zia himself joined in the current relaxation will lead to poverty line and 90 percent suf• celebrations at the Indian embassy even bigger steps towards nor• fer from malnutrition. Infectious in Islamabad. Gandhi recently malizing relations. diseases are common and the death rate among children is surprisingly high. In order to avoid unemploy• South Africa ment and being driven to these Bantustans, most agricultural work• Prosperity From Workers* Misery ers suffer silently, never protesting their exploitation. The fact that Black farm workers are treated virtually as slaves, these workers almost never go on though it is mainly their toil that makes the country's strike is no indication of job satis• agricultural production flourish. faction. Many children are employed on by MA SHIKUN and On white-owned farms, what the white-owned farms. In South BAO SHISHAO farm owners say is law. Workers Africa, the school enrollment rate must silently endure severe exploi• is low and the dropout rate is high tation. At the slightest complaint, among children of farm workers. OUTH Africa is the world's they and their families are driven Schools are usually more than 3 km S sixth largest exporter of grain off the farm. from home, and children have a and third largest exporter of corn. In a recently published report, long walk each day. Facilities are This agricultural prosperity, how• one black woman in Natal com• very poor, and students who do go ever, was won by exploiting the la• plained to the local police after don't learn much. But the most bour of black South Africans, who being beaten by her white em• important reason is that many par• receive none of the benefits of ployer. According to South Afri• ents cannot afford to send their their hard work. can law, the farmer should have children to school. They need their been fined 50 rands. But he asked labour to sustain the family. As a In South Africa about 1.3 mil• the court, "What's wrong with me result, it is common to see black lion black agricultural workers la• keeping discipline on the farm by children in the fields of white- bour on white-owned farms. They whipping? This is a tradition on owned farms. Now 60,000 children are not only denied guaranteed my farm." The farmer won the between 8 and 14 years old do hard wages, duration of work, living lawsuit, and the woman's family labour for just US$0.10-0.20 a conditions, unemployment relief was put out of work. Her husband day. and medical treatment, but they complained, "My wife, my six chil• are also out of the reach of the dren and I have been driven off Black women are in an even protection of the country's labour the farm. We can't find work here more pitiable plight. Labour reg• laws. The wages of these workers and have to go to the city to find a ulations published in 1952 say are therefore squeezed to the bare way to live." But in the cities, that black women do not have the minimum and their living condi• where racial discrimination goes right to be formally employed on tions are extremely poor. Because hand in hand with unemployment, white-owned farms. That leaves of the lack of essential labour pro• they are not likely to do any them to the whims of the white tection, an average of about 1,600 better. farmers or to drift into the cities people a year die from machine illegally to look for temporary accidents, pesticide poisoning and This incident is not an isolated work. The only other alternative other accidents. one. Today white farmers follow is the Bantustans. 14 Beijing Review. No. 10 Reforms Invigorate 1984 Economy being the case, grain storage by LU DONG percent. During the four years Minister in Charge of the State from 1981 to 1984, agricultural and its alternative uses have be• Economic Commission production increased every year by come new problems. Bumper an average of 10.3 percent, while harvests and expanding economic N the past year China has industrial production grew on an diversification dictate a compre• chalked up great achievement I average of 9 percent. Industry hensive readjustment in the eco• and set many records in implement• nomics of agriculture. ing the policies of opening to the and agriculture developing in Industry. Following the increase world and enlivening the domestic tandem paved the way for the na• and diversified needs in consump• economy. tional economy to keep its mo• mentum of steady development. tion, the set-up of production and Quick Tempo, Good Agriculture. In 1984 more than 407 product mix were being readjusted. Economic Returns million tons of grain was harvested, In 1984 the ratio of light to In 1984 agriculture, industry and retaining China's status as the heavy industry was 48.1-to-51.9. services, whether state run, collec• world's largest grain producer. In Light industry production increased tively owned or individually rice alone, Chinese farmers grew by 13.4 percent while heavy in• managed, made overall progress. 37 percent of the world's total. dustry production rose by 14.2 The gross output value of industry Average grain possession per percent. Energy resources hit a and agriculture combined reached capita has already caught up record of 772 million tons of coal 1,062.7 billion yuan, up 14.2 per• with the world's level. Such and 115 million tons of crude oil. cent from 1983. The national in• come grew 12 percent last year, An ethylene rectifying tower, 72.17 metres tall and weighing 204 tons. Is registering the biggest increase installed at the Jiangsu Yangii Ethylene Factory. since 1979. Output value was far more than 871 billion yuan, the target set for 1985 in the Sixth Five-Year Plan (1981-85). The tempo of growth was quick and economic returns improved impressively. Nationwide, industry, agriculture, sales, profits and rev• enues all went up. Revenue and expenditures were basically balanced while capital construction was being expanded, scientific, technological, cultural and educa• tional work was being strength• ened, and reforms were being carried out. In the past few years industry and agriculture have been growing rapidly. In 1981 the rate of in• crease was 4.6 percent more than in 1980. They grew 8.7 percent in 1982, 10.2 percent in 1983 and 14.2 percent in 1984. This is evidence that China's readjusted economy is on the right track, sound and steady. Judged within the perspective of the Sixth Five-Year Plan (1981-85) agricultural production increased by 14.5 percent in 1984 compared with the previous year and in• dustrial production rose by 14 March 11, 1985 fundamentally guaranteeing the develop on their own. This will picture. One-third of Shanghai's energy for economic growth. contribute to the present economic newly added industrial output The light and textile industries growth. value in 1984 was credited to its increased by leaps and bounds, The aims of technological trans• technological improvements. And especially in high-grade and formation are to save energy, to one-fifth of its mechanical equip• durable goods, which satisfied the use fewer materials, to improve ment is now up to international demands of the domestic market. the quality of goods and to increase standards. The machine-building industry the production of goods badly grew 20 percent over 1983 and the needed by the state. Any shortage Energy and Transporta• output of electronic products in• of funds should be resolved by tion Stepped Up creased by more than 50 percent. applying for bank loans, raising Administration over key capital Metallurgical, chemical and build• money locally and increasing construction projects was tight• ing material industries increased depreciation funds. ened in 1984. Capital management by 10-15 percent while the food In 1984 enterprises owned by underwent extensive reforms. and tailoring industries made the whole people invested 42.5 In 1984 enterprises owned by substantial progress. billion yuan (30.4 billion yuan was the whole people invested 73.5 bil• The service trades are booming. part of the state plan) for equip• lion yuan in capital construction, People are turning their attention ment renewal and technological 14.1 billion yuan more than in 1983 to improving transportation, com• transformation. This was 18.8 per• for an increase of 23.8 percent. munications, information and con• cent more than the year before. Investment in energy projects in• sultation services. creased by 25.1 percent and trans• Last year 79,000 projects were portation, post and telecommunica• Upgrading Existing begun and 39,000 were completed. tions investment rose by 34.2 per• Enterprises Of the 550 projects in machine- cent. Energy and transportation Investment in fixed assets has building and electronic industries, projects took up 35.8 percent of been increased in recent years in 93 were finished by the end of the all capita! construction investment. order to meet the needs of today's year. The volume of business in Raw and semi-finished materials, production and to amass reserves technological imports bought with science, research, culture, educa• for future development. state foreign currency increased 2.5 tion and health services also got Renovation and expansion will times over the previous year. The bigger shares of the total invest• be the main tasks in updating and plan to import 3,000 pieces of ment. transforming existing enterprises. advanced technology within the The state listed 123 key large Enterprises must rely upon their three years of 1983-85 will be and medium-sized projects to be own technological improvements overfulfilled. Some of the techno• completed within a reasonable and on imported technology to logical transformation and import• time limit. Funds and building gradually improve production ed technology have already been materials were guaranteed, thus techniques and to become able to brought into the development speeding up construction. Con• struction on key coal mines, The Shenzhen Canning Factory imported an automatic soft drinlc production line and now produces 240,000 cans of soda water every day. Its product oilfields, power stations and sells in Honkong, Macao and Southeast Asia. railroads exceeded its quotas in 1984. The contracted responsibility system was used in 815 industrial and 1,980 non-governmental projects. Contracts were made ac• cording to the projects' budgets and contractors had to assume sole responsibility for profits and losses. This reduced material consumption and shortened the construction time. Foreign Trade Expands According to customs statistics, imports and exports in 1984 valued at US$53.63 billion, up 21.8 per• cent from the year before. Exports 16 Beijing Review, No. 10 accounted for US$25.96 billion, up 15.3 percent and imports made up US$27.67 billion, up 28.7 percent. The increase in imports last year was equal to the total import in• crease for the previous five years. Because imports were greater than exports, for the first time in four years China had an un• favourable trade balance. Last year foreign trade increased 36 percent with Japan, 50.6 percent with the United States and 73.3 percent with the Soviet Union as compared with the year before. Foreign Capital Pours In Peasants in Liaoning Province buy colour TV sets. Joint ventures with overseas partners have been successful in opens more to the outside world. goods, in using capital and in con• China. In 1984, 2,050 agreements They will become important bases trolling organization and personnel and contracts were signed with for more Chinese goods to enter management. companies outside China and 700 the international market. On the first of the year, the more joint ventures were approved state financial system entered the by the state, a 7.6 times increase. Reforms Shifting to Cities There were 26 businesses owned second phase of reform, substitut• solely by foreign entrepreneurs, In October 1984 the Party Cen• ing taxes for turning in profits. The overseas business men invested tral Committee decided to extend scope of mandatory planning will 6.8 times more money than in its reform programme to China's be reduced, and that of guidance 1983. Now, except for Inner urban areas. The State Council planning and market regulation be Mongolia and Tibet, all of China's then published a series of reform enlarged. Reforms are now being 27 provinces, municipalities and regulations to practically imple• considered for the pricing and autonomous regions on the ment the policy. wage systems. mainland have their own joint The keys to the reform of the By the end of 1984 about 80 per• ventures. In the past year China urban economy are invigorating cent of all state-owned enterprises has also set up 47 joint ventures businesses, eliminating egalitarian and commercial units came under abroad, bringing the total to 113. distribution and bringing into play the leadership of younger and the initiative, enthusiasm and more competent directors. This In Shenzhen, Zhuhai, Shantou creativity of workers and staff greatly improved management. In and Xiamen, China's four special members. 1984 China trained 1,469,000 economic zones, industry increased cadres in economics. Of these, by 51.5 percent in 1984 and in• Reforms underway include: 1,200,000 worked in different vestment in capital construction Further implementation of the 10 enterprises. This training made was 77.6 percent more than the regulations for giving enterprises invigorating economic reforms year before. Two hundred more more decision-making powers; possible. joint ventures were approved. transferring capital construction funds from state grants to bank In 1984 provincial officials In Shanghai, co-operative proj• loans with interest; the import and signed 17,000 inter-province con• ects with overseas partners were export corporations may join in tracts and letters of intent for broadened and the influx of management or act as the agents of economic and technological co• foreign capital rose by five fold. producers, combining industry operation. This was double the A nationwide effort was with trade, imports with exports 1983 figure. launched to assirnilate imported and technology with trade; com• advanced technology and to raise modity circulation is to be changed Better Living Standards the ability and capacity of Chinese and circulation channels will be In 1984 the national industrial businesses to absorb foreign capi• extended. Businesses will be given and agricultural output value per tal. China's coastal regions are more initiative in production and in the forefront as the country administration, in marketing (continued on p. 24.) March 11, 1985 17 Western Money Market What's in the Cards? 1985 will see a continued strong US dollar, plunging oil prices, low inflation rates and a slowdown in the Western economies. What happened to the exchange rates of Western currencies in US economy, with the gross na• 1984 and what can be expected iri 1985? These questions have prompted tional product increasing 10.1 foreign readers to ask about China's views on these matters. "Beijing percent in the first quarter and Review" has therefore invited Zhang Debao, a monetary expert, to 7.1 percent in the second over offer his views. In response, he wrote the following article last 1983. Corporate profits increased January. —Ed. as well. All this, coupled with a prevailing confidence in President plummeted to an all-time low of Ronald Reagan's re-election, was by ZHANG DEBAO 1 to 1.102, and it was also devalu• enough to keep investors bullish OR the Western money ed in relation to other West on America. market, 1984 was a year of European currencies. Compared F One more plus for the buoyant mercurial change. While the US with the beginning of last year, American economy lies in its per• dollar grew strong, other Western the dollar's January l4 exchange sistently high interest rates. In currencies slid downhill. Though rate on the New York market was the first six months of last year many predicted that the dollar up 27 percent against the pound the Federal Reseve Banks' dis• would be debilitated by the Unit• sterling, 15.1 percent against the count rate rose from 8.5 percent ed States' trade and current-ac• German mark, 20.9 percent to 9 percent and the commercial count deficits, the crash never oc• against the Swiss franc, 15.7 per• banks' preferential loan interest curred. cent against the French franc, 9.2 rate increased from 11 percent to percent against the Japanese yen 13 percent. The high yields of The dollar did suffer several and 6.2 percent against the US Treasury bonds and corporate setbacks, but its high-powered Canadian dollar. position prevailed. In fact, each bonds also helped attract massive setback ended with the dollar re• Gold prices have also been go• amounts of foreign investment. bounding with a vengeance, and ing down incessantly, at least par• It was estimated that in 1984 West European currencies always tially, as a result of the spiralling foreign countries spent a total of suffered the most. US dollar. The price of a troy US$20 billion buying US ounce of gold on the London Treasury bonds. The dollar enjoyed yet another market dropped to US$296 at the upturn shortly after New Year's Rampant speculation on the ex• beginning of this year, the lowest Day, 1985. Its exchange rate was change market, too, played a part since 1982. The gold prices are 1 to 3.1965 against the Deutsch in boosting the dollar's exchange unlikely to pick up, but they will status. ' mark, the highest rate since 1973, not fall far beyond their current and 1 to 256 against the Japanese price. This is because once the The hefty dollar is in sharp yen, the highest in the last couple prices become too low, they will contrast to other Western curren• of years. be pushed up by the increased cies, which have been chronically plunging exchange rates. The The robust dollar, nosediving gold needs of industry and jewel• lers. currency woes have been pri• oil prices and ineffectual Bank of marily blamed on domestic England intervention have com• The dollar's sustained strength factors, including sluggish econom• bined to send the pound sterling and high exchange rate are ic growth, turbulent political steadily sliding. The pound's ex• ascribed in part to the United situations and frequent labour change rate against the dollar States' high-speed economic de• strikes. velopment and the nation's high The pound sterling was hit The writer is a staff member with interest rates. The first half of the International Monetary Research hardest by Britain's coal miner Institute under the Bank of China. 1984 witnessed a new surge in the strike, oil price cuts and a de- 18 Beijing Review, No. 10 teriorating trade balance. At one To boost the economy, the US many factors in the dollar's point, eacli pound was sold for Federal Reserve Board may favour. oaly US$1.16, an all-time low. further lossen its rein over the First, the US economy may money market. If Reserve Board The Japanese economy reduced slow down in 1985 but not with Chairman Paul Volcker resigns speed in 1984, and the country's the thud of a crisis. It will, some his post, Reagan will probably monetary officials were jittery economists say, enter a period of fill the vacancy with someone about slashing interest rates. The low but stable growth, with hs loyal to his economic policy. By widening gap in interest rates be• growth rate staying near 4 per• that time, the United States may tween Japan and the United cent, slightly lower than that of turn around its austerity policy States and the much-vaunted Japan but a cut above Western and as a result the interest rate liberalization in Japan's monetary Europe. Inflation should remain may fall. affairs served to siphon off large low and the political situation sums of investment. In the first The United States ran a trade should stay stable. These factors 11 months of 1984, the country deficit of US$130 billion in 1984, provide a safe climate that over• was drained of a net value of and this year its current-account seas investors can count on. US$41,532 billion in long-term balance may sink further into Second, a major factor account• capital investment as against the red. The dollar will be con• ing for the persistently high in• US$13,487 billion in the cor• siderably weakened once the terest rates in the United States is responding period of 1983. market begins to lose its con• the government's huge budget fidence in the US economy. The US dollar has built up its deficit. The Reagan administra• strength over the long past by Furthermore, the West Euro• tion has so far achieved little relying on the momentum of the pean central banks may intervene in its attempt to cut the def• US economy and high interest if the US dollar continues to rise icit. Reagan recently vowed to rates. However, it is certain that at a rate they find hard to reduce defence expenses by the American economy will de• stomach, so as to forestall wild US$28.1 billion over three years velop more slowly in 1985 while fluctuations in their own curren• — with US$8.7 billion cut in the economies of Japan and some cies. All this may prove to be the fiscal 1986. That is insignificant West European countries will see bane of the dollar. But it should compared to the budget's sea of better times. also be noted that there are still red ink, which, according to the latest US Budget Office estimate, grew from US$175.3 billion in fiscal 1984 to US$210 biUion in Exchange Value of Dollar Against 10 Other Major Currencies fiscal 1985. The government's enormous appetite for loans and (March 1973 -100) 1 36.6 individual and corporate needs for credit will exert heavy pres• sure on the market. Government decontrol of financial institutions will also intensify competition among banks and other monetary organizations for funds. ,M1 this will keep interest rates high. Third, the sustained high in• terest rates in the United States have left other countries cautious about reducing their own interest rates, even when their econoimes are slumping. They will not re• lax their money market controls and reduce interest rates until the United States takes the lead, lest this should cause a massive 969 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 exodus of investment funds that 1984 average fhrourh October, ai orhec years, annual average. might destabilize their own cur• & Source: U.S. News vVorld Repott, Dec. 3, 1984. rencies. This being the case, the interest rate gaps between the March 11, 1985 19 United States and these countries characterized by a low inflation unabated worker strikes. Oil will hardly be narrowed. rate and a huge current-account prices are declining, reducing the surplus. Japan's huge trade sur• country's North Sea oil revenues Futhermore, even if US in• plus with the United States — and inflicting a deficit on its bal• terest rates went down, US gov• US$31.32 billion in the first 10 ance of international payments. ernment bond and corporate months of last year — is yet an• The interest rates and the pound's bond yields would remain high. other stabilizing factor for an exchange rate are sliding con• US Treasury bonds bring a yield already robust Japanese yen. tinuously due to inept Bank of of 8 percent — against 5.6 per• England intervention. And no cent in Britain, 4.25 percent in However, Japan's balance of fundamental improvement is in West Germany and 4.5 percent in international payments is de• sight. The falling oil prices, in Japan. Such an 8 percent yield teriorating as a result of the big particular, have dashed any hopes may well continue to catch the gap in interest rates between that the pound will rally to fancy of overseas investors. Japan and the United States (re• strength. When worse comes to Fourth, no other currency can sulting from the yen's low in• worst, the pound will be weakened now replace the dollar as the terest rate) and • the massive further in the future. world's reserve currency. Be• exodus of Japanese funds (result• French Franc, The French econ• cause it is currently used for set• ing from a sluggish domestic de• omy has just begun to climb out tling accounts in most of the world mand for investment). The coun• of a slump, but the recovery pace trade and debt repayments, the try's red ink in its total interna• is slow. The country is still deep demand for the dollar will remain tional payments hit US$13.96 bil• in red in its balance of interna• strong. lion in the first 11 months of 1984, as compared with a tional payments and inflation is Fifth, any drastic crash in the US$4.14 billion surplus in the high. So the franc will retain its dollar would cast shadows over same period of 1983. If this situa• status as a doddering currency in exports from Western Europe tion continues, chances are slim the West. and Japan to the United States. that the Japanese yen will grow Hongkong Dollar. Hongkong's These exports are key to these much stronger. But, in the final current healthy economic develop• countries' economic development. analysis, there are still many ment is highlighted by its growing Therefore, a very weak dollar is factors which should keep the yen foreign trade, which has enjoyed a the last thing these nations want relatively healthy. surplus since last July. The trade to see. The Reagan administra• deficit was reduced from HK$ tion, for its part, regards the Deutsch Mark. The economy of 10.62 billion in January-September powerful dollar as a symbol of the Federal Republic of Germany 1983 to just HK$ 2.6 billion in the US economic and monetary has been picking up steadily since same period of 1984. Inflation is strength and will do everything the worker strike ended. Trade diminishing, gaining a respite for possible to prevent the dollar and current-account balances are the Hongkong dollar in search of from tumbling. Reagan's team improving and inflation is falling, stability. Hongkong's British fears that if the dollar plunges, furnishing favourable conditions authorities have repeatedly stated inflation will be aggravated and for the strengthening of the mark. that' the current guiding exchange interest rates will go up. But there is no denying the hid• rate system will continue into the All in all, a collapse of the den threat to the stability of the future as a long-term policy. This dollar is unlikely this year, even Deutsch mark. A politically sen• is designed to keep the Hongkong if it falls from its zenith of last sitive country. West Germany is dollar from fluctuating in times of year. It will more likely ebb and often stalked by political tur• "confidence crisis" caused by un• flow on the average 1984 level. moils. The worker strike of last certainty about the future. This is reason enough to predict that the The dollar's exchange rate spring was followed by the Flick exchange rate will fluctuate only against other Western currencies Corp. bribery case in the autumn. marginally and that the current is, to varying degrees, influenced The scandal forced some ranking rate of HK$7.8 against US$1 by economic and political changes officials to resign — a telling blow will be intact for at least the first in the other countries. The fol• to Chancellor Helmut Kohl's gov• sixth months of this year. lowing is a prognostication of ernment. And the Flick case, still future development in the dol• developing, may trigger a govern• ment crisis. To sum up, 1985 will see a con• lar's exchange rates with five tinued strong US dollar, plunging major currencies. Pound Sterling. The British econ• oil prices, low inflation rates and Japanese Yen. The Japanese omy is besef with difficulties, a slowdown in the Western econ• economy will remain strong. which have been worsened by omies. • 20 Beijing Review, No. 10 Notes From Shanxi (IV) Miners* Past and Present This is the final instalment in our series on the mining areas in Shanxi Province. It discusses the lives and problems of the miners. The preceding three articles appeared in issue Nos. 49, 51, 1984 and 7&8. 1985. —-Ed. come can reach 160 yuan. "I am by JING WEI Our Correspondent getting older now," he said. "I only do some auxiliary work in the mine. The young miners can earn HANXI has one of the highest more than I.*' S concentrations of miners in China. The number of miners has Nearly every miner's family has increased from 30,000 in the early a TV set, a washing machine, an 50s to 400,000, not counting the electric fan and some even have several hundred thousands of refrigerators. All of the young peasant-miners working in small workers dress fashionably. But township mines. They bring peo• the old workers wear plain clothes, ple warmth and light, and in turn and when they talk about their Zhang Wanfu society looks after them. Now lives, they like to recall the past. their lives are getting better and Nation^ People's Congress and Zhang Wanfu has been working better. chairman of the trade union of in the Datong mine for 47 years. the Datong Coal-Mining Adminis• He said he began to shoulder coal Earning More Than a trative Bureau. in the mine when he was only 13. Mayor He has experienced two different With a view to protecting the One among the 120,000 workers societies in China. miners' interests, the government and staff at the Datong Coal-Min• enacted a series of labour in• Zhang said that in the past ing Administrative Bureau, the surance regulations and establish• workers going to the mine were old miner Zhang Wanfu said, ed a workers' club, a recreation escorted by mine policemen. Al• "Now underground young miners room, a gymnasium, a library and though they had to work 12 hours can earn around 200 yuan a month. various schools around the mine. a day, they ate only bad flour mix• Some even can earn 300 yuan, More mining machinery and safety ed with black soybeans, sorghum more than a mayor!" (In China equipment were brought in. With and peanut skins and wore ragged the highest monthly pay of a the improvement of the miners' gunny sack clothes. They lived in mayor is about 200 yuan). working conditions and livelihood, old cave dwellings or in tempor• the workers' enthusiasm is even ary sheds. In the evening 30-40 Because the miners' working higher than before. conditions are hard and the prin• miners slept on a kang (a Chinese ciple of distribution according to brick bed). At that time mining Now Datong's mines are 70 per• work has been gradually imple• safety equipment was very back• cent mechanized. The tunnelling mented, miners, construction ward and explosions were com• and loading is up to 76.8 percent workers and porters are becoming mon. An average of four miners mechanized. Its annual output the highest paid workers in China. died to produce each 1,000 tons went from 80,000 tons in 1949 to of coal. 27 million tons in 1983, increasing Chen Huanming, a 51-year-old 328 times. miner, said that when he began "After liberation the situation to work in the mine in 1959 his was quite different." Zhang said. No Marriage Worries monthly pay was only 63 yuan. "The biggest change is that the But in the past five years his miners became the masters of the In the past, a miner had a very wages have been raised three mines. The mines established hard time finding a marriage part• grades. Now he earns 102 yuan a trade unions, and many exemplary ner. With the improvement of liv• month. Adding his bonus for workers have been selected to ing standards and labour in• overfulfilling his quotas and work• leading posts." Zhang is a nation• surance, this problem has been ing underground, his monthly in• al model worker, a deputy to the solved. March 11, 1985 21 Yang Yunsui, 35, said, "Every one of us 200 young miners com• ing from middle schools have got• ten married except three who are too short." Yang's wife is a music teacher in the mine's primary school. They met in a party. Now they have two children and live a happy life. "In our mine, as long as the miners are healthy, eager to learn and work hard, they will surely find a good wife," Yang said. Another 28-year-old miner, Yang Runsheng, added, "It is still difficult to find a working city woman for our miners." This is because the mining areas are far from the city proper and the miners'.work is difficult and dan• gerous. The city girls and their parents do not always want to be worrying about a miner's safety. Yang said that when he became a miner nine years ago he had not graduated from senior middle school. At first he looked for a Workers are chatting in the pavilion of a mine park. wife among the working city women, but he did not succeed. Is it also difficult for the peas• several thousand yuan. Then Ihey Last year he married a temporary ant-miners to look for a partner? go back to their hometowns and worker who is a junior middle "No, it is easier for them," Yang can quickly find a good wife." school graduate. Now they have a said. "After several years' work• lovely baby. ing in the mine they would save Working for the Miners Many leaders of Shanxi's mines are selected from among the or• Single workers in Guandi coal mine are having their birthday dinner. dinary miners, so they have a strong affinity for the workers. The leaders always try to work for the interests of the miners. The Ciuandi mine of the Xishan Coal- Mining Administrative Bureau in Taiyuan is a good example. Xu Lianyun, 48, is the Party secretary of Guandi coal mine which employs 10,000 workers and staff members. He has been a miner for 36 years. After libera• tion he studied in a coal-mining school and was later promoted as a leader of the mine. He said, "The miners provide our country large amounts of coal; we should care for them and serve them." Assistant general engineer Tang fintao said that in recent years the 22 Beijing Review, No. 10 leaders had done many good things tens of thousands of yuan in educa• labour safety are not as good as for the miners. tion, including hiring good city those for miners in state enter• • They built a 30-bed rest home teachers for the mine's middle prises, the peasant-miners' incomes to give miners working under• school. are much higher than those in the ground a month's rest. During In recent years 120,000 square state mines. this period the miners go sight• metres of residential buildings There are several .reasons for seeing twice and do only 2-3 hours have been completed. Now 70 per• their success. In recent years the of light work a day. They spend cent of the miners live in new state has adopted a series of meas• 1.5 yuan a day on meals, of which homes. Another 10 buildings are ures to support the small mines. one yuan is paid by the mine. under construction. It is estimat• The state levies no tax in the in• ed that by 1986 all the workers itial, stage of their running. After • Birthday celebrations are al• and staff will move into new several years the state only col• ways held for unmarried miners. buildings. This includes food and wine and lects very low taxes. Besides, the jiaozi (a sort of meat dumpling In addition, the mine provides small mines do not support large loved by northerners), according to the miners working underground groups of administors and provide the miners' tastes. with a free lunch every day and no service such as clinics, schools, regular silicosis check-ups. dormitories, and clubs, so their • A TV room, a reading room, expenses are very low. a clinic and a recreation centre High Incomes of One such small mine is Beizu, are all opened in the singles' Peasant-Miners quarters. Their clothes, quilts and run by Yujing Township in north• rooms are washed and cleaned by About one-third of 1983 coal ern Shanxi. In 1983 the mine attendants, and they pay no rent. output in Shanxi was produced by produced 100,000 tons of coal, small mines scattered throughout and it is estimated that the 1984 • A miners' training centre was the province. These small mines output will be 150,000 tons. In established. It teaches about 200 are run by townships, and all of the busy farming seasons there are workers a day. In the three-storey their workers are local peasants. only 200 miners working there, building TV university, training They do not have fixed wages. but in the slack season up to 350 courses on mining machinery, en• Their pays are determined by the people are at work. Near the mine terprise management, and literacy incomes of their mines. Although is a row of one-storey rooms classes are conducted. Some uni• their production conditions and where the head of the mine, the versity professors give lectures, and all fees are paid by the mine. New two-storey buildings in Shangzhangjiafen village. • The new recreational centre includes four classrooms for cal• ligraphy, music, science and tech• nology and political theory, a thea• trical troupe, an orchestra, a wushu (martial art) team, a bas• ketball team, a singing group and a dancing group. The mine has signed a contract with the China Coal Miners' Art Troupe to hire seven or eight actors and actresses to train the miners who have talent. A worker's club which can hold 1,700 people will be complet• ed soon. • A service centre concerns it• self in building dormitory for the miners (including parks) and other public utilities as well as in raising the teaching quality in kindergar-i tens, primary schools and middle schools. In order to help more miners' children enter universities, the mine has planned to invest March U, 1985 23 deputy head and the accountant Now 24 families have moved square metre less than the state live. IJ Fazhi, .32, is head of the from cave dwellings to new two- stipulated quota. mine. He said that a peasanl- storey houses and each family has Wang thinks that if 200.000 miner's monthly salary can reach 110 square metres on average. square metres of housing are built 300-350 yuan, and their medical Most homes are beautifully fur• every year it will take at least expenses are covered by the mine. nished. All the villagers enjoy eight years to meet the state re• He and the deputy head of the free medical care and their chil• quirements. But during this period mine work under a contract. If dren go to school free. The vil• 30,000 young miners will marry they fulfil the annual output quota, lage will give 500 yuan to anyone and the need for housing will they get a 1,000 yuan bonus each who goes to college atid 300 yuan increase. in addition to their tnonthly sa• to those who enter senior middle laries. Li said confidently, "It is school or a secondary technical Wang also said the mines are re• no problem to fulfil the quota." school. The village also provides forming the way they recruit childless elderlies with food, workers — to get more contract Another small mine is run by clothing, housing and 15 yuan workers and fewer regular ones. Shangzhangjiafen Village in Zuo- every month, and another 50 yuan Authorities are encouraging in• yun County. In the past the vil• on New Year's Day or other dividuals to build their own lagers lived on stale relief funds. In festivals. In addition, when the homes, with state assistance. 1978 the average per-capita in• peasants are too old to work in Together these may help solve the come was only 72 yuan. Since the fields they can retire and get housing shortage. the Party adopted more flexible 30 percent of their average pay • Finding sufficient water is policies, the small village has in the previous 10 years. another problein. In some mining changed a great deal, in 1979 the areas under the Datong bureau villagers opened a small mine to Unsolved Problems workers are even short of drink• the west of the village. At the ing water. The drinking water beginning its annual output was However, in the midst of all must be brought by truck. 20.000 tons of coal, but now it has these improvements some prob• Now the bureau has invested 6 reached 50,000 tons. In 1983 its lems remain. million yuan to build a water sup• income from coal, transportation • Housing is still in great de• plying project. service, agriculture and animal mand. Wang Shuanzhu, manager' • Most small and medium-sized husbandry reached 1.39 million of the Datong Living Service Com• mines are lagging far behind in yuan. Subtracting expenses and a pany said that although in the last technology. The miners' work public accumulation fund, the three years 538,000 square metres is still labour intensive. Drilling, per-eapita income was 2,538 of housing has been completed, blasting holes, loading and unload• yuan, 31 times that of 1978. Half every family has only 30 square ing are still done by hand. The of the peasant-miner households! metres, 60 percent of what the miners have asked that technolog• earned more than 10,000 yuan a state has stipulated. Single miner ical transfonnation and mechani• year. has just five square metres, one zation be accelerated. (continued jrom p. 17.) commodities changed greatly. Sales weaknesses. Production of con• went up for all kinds of goods: sumer goods does not keep up capita was 1,026 yuan, up 15.7 food (18.6 percent), clothing (16 with market demands. Technologi• percent from the year before. percent), and daily necessities (20 cal transformation is still held up percent). by the lack of funds, materials and The average peasant netted 355 labour power. Economic returns, yuan for the year, up 14.7 percent, By the end of 1984 urban and while workers averaged 961 yuan rural residents had deposited 121.5 as a whole, are not very per capita, up 16.3 percent from billion yuan in China's banks, up satisfactory. 1983. Added to the newly em• 36.1 percent from 1983. This year reforms will spread to ployed workers, the total wage planning, pricing, wages, materials increase in 1984 reached 19 Problems Remain control, foreign trade and other percent. Purchasing power grew in both Successful as the past year was, sectors. Conditions in production urban and rural areas and, in we must realize that the domestic and circulation are due for changes. response, retail sales reached 335.7 economy still needs further These plans will all test the billion yuan in 1984, 17.8. percent readjustment. Energy and trans• adaptability of China's enterprises. more than in 1983. The supply portation remain China's biggest • and demand patterns for various 24 Beijing Review, No. 10 Discussion How to Deal With Losing Enterprises As the urban economic reforms penetrate to all aspects of economic value; their workers and staff life, the profit picture of an enterprise has become an important criterion members work hard but have to in judging its management and a key to realizing the four moderniza• live on state subsidies. Their jobs tions in China. Economists have recently been discussing how to deal are meaningless. Maintaining these with those enterprises which have suffered losses over a long lime. The enterprises will lov/er the econom• views elaborated here by Yan Kalin, a worker, have received much ic level of the whole society, attention. — Ed. Advantages of Closure by YAN KALIN Protecting these backward en• terprises is egalitarianism. But it We must adopt comprehensive has long been misunderstood as Main Reasons for Losses measures to deal with these the "superiority of socialism." backward enterprises. First of all T present China has a number Many people are blinded by we should adopt effective meas• A of backward enterprises which dogmatism and think that because ures to help turn their deficits have suffered great losses because state enterprises are owned by all into profits, or try to reorganize of their poor management. In the people, the state is their them through readjusting pro• 1982, 10,898 industrial enterprises "boss." They believe that even if duction quotas, suspending pro• lost a total of 4.2 billion yuan, they continue to suffer losses, the duction, conversing to other prod• averaging 390,000 yuan each. The state will never allow them to ucts or replacing enterprise next year they lost 2.79 billion close down. And although the leaders. If all these measures yuan. state-owned economy will not go bring no results within a fixed In the first nine months of last bankrupt as a whole, it is likely time, they have to be closed down. year the losses were 20.1 percent that certain enterprises will. less than in the same period of The property of these state Our first step now should be to 1983, but the total deficit of in• give these backward enterprises a dustrial and commercial en• enterprises belongs to all the people of the country. The leaders push and make it known that if terprises throughout the country they continue to suffer losses they was still quite large. It is estimat• and staff members are entrusted to manage them and, as an indepen• will be closed. This measure will ed that 20-30 percent of the make it impossible for backward enterprises nationwide are on a dent commodity producer, the enterprise is responsible for profits enterprises to continue dependence downward spiral, and may never on state subsidies. show a profit. The percentage is or losses. If an enterprise has suffered losses for a long time, if even higher in certain areas. Because backward enterprises its deficit is near or more than the vie with more advanced factories These backward enterprises real value of its assets, and if it for raw materials and energy, they have seriously reduced China's is unable to pay its debts and stand in the way of progress. macro-economic returns and state continue its economic activities, it Closing down some backward revenue and slowed down modern• is natural that the enterprise should factories will help the efficient ization. They have gravely hin• be closed down. dered national economic deve• ones press ahead at full speed, and raise each enterprise's economic lopment. Bankruptcy is not exclusive to results. capitalist countries. It is common Enterprises suffer losses because to all commodity economies. It of their outdated technology and In 19Sl, 109 small nitrogenous is an inevitable outcome of market poor management. But the most fertilizer plants either stopped competition and the result of important reason is an incomplete production or merged with other making enterprises responsible for economic management system. For plants. As a result, the coal con• their profits or losses. a long time, the Chinese govern• sumed to produce one ton of ment has been protecting and Some people believe that even nitrogenous fertilizer decreased making allowance for these losing enterprises at least give jobs from 3.3 tons in 1978 to 2.2 tons backward enterprises. Otherwise, to people, and so should not be in 1981, and the consumption of they can no longer exist without closed. In fact, these enterprises electricity dropped from 1,800 state subsidies. consume much but produce no kwh to 1.467 kwh. Total losses March 11, 1985 25 were cut from 600 million yuan to cannot renew their fixed assets in Next, we must remove all 40 million yuan. time to turn things around. Their leaders from their posts and lower capital circulation is stagnant. their wages. Economic and disci• From 1978 to 1982, 339 small plinary sanctions are appropriate iron-smelting factories, 72.6 per• In order to show the positive for those who seriously neglected cent of the total, were closed or role of closing down some back• their duties, including engineers, merged with other factories. The ward enterprises, the government technicians and skilled workers. rest were updated in technology must first formulate policies and Some may even have legal action and management, and the per-ton laws concerning closure. The de• taken against them. cost of producing iron decreased partments responsible for the from 303 yuan to 239 yuan. The decision should set the limits for Finally, workers and leaders total deficit was cut from 630 closing enterprises according to should not be kept on the payroll. million yuan to 70 million yuan. the amount of deficits and the They can find jobs for themselves duration the enterprises suffer Facts have shown that closing or wait to be assigned jobs by the losses. down backward enterprises can labour and personnel departments. save raw materials, capital and Banks should be forbidden to This is quite different from the labour while at the same time grant loans to enterprises on the way bankruptcies are handled in exerting pressure upon other verge of bankruptcy because of capitalist countries. enterprises. This has the overall losses due to poor management. effect of sp.eeding up the develop• Any subsidies or preferential terms First, socialist enterprises are ment of the nation's economy. should be cancelled. Measures publicly owned. After an enter• should be adopted to handle their prise has closed down, the means In addition, because the staff assets and workers after the of production are still owned by members and workers take some shutdown. If losing enterprises the people. The state can transfer responsibilities for the closure of exceed their loss quota, the leader• them to other enterprises or their factory and suffer certain ship should file a bankruptcy ap• departments which need them or losses, they therefore share the plication and the industrial and can manage them better. same fate with the factory. Thus commercial administration depart• the sense of being the masters of Second, China has a planned ment should announce their the factory will be greatly economy. Such a situation where closure. heightened and the democratic large numbers of enterprises go management of the factory Usually, enterprises are closed bankrupt will not occur in China improved. down for two reasons: One is as happened in the capitalist their backward technology, out• countries due to economic crises. dated equipment, poor-quality Closure Policies Third, in socialist China the products and high resources con• Practically speaking, • closing government does its best to make sumption. The other is their poor down an enterprise will invariably proper job arrangements for management and the waning bring varying degrees of losses to workers and staff members when enthusiasm of their workers. the state, the collective or the in• their factories close. Local labour dividual. But the advantages When enterprises close, equip• departments also help in this area. outweigh the disadvantages, if the ment and labour become avail• An insurance system for workers matter is considered comprehen• able. The equipment should be and staff members is also being sively. Therefore, when dealing transferred to other factories. set up. Under it, enterprises hand with the matter specifically, our Among the people, those leaders over 5-8 percent of the wages of measures must be appropriate. and workers responsible for the their employees for labour in• That is, we should give play to the failure of their enterprise should surance. The money will be used positive role of the "closure" be punished if necessary. as subsidies for people who lose method and limit its negative their jobs. aspect. After Closing Active efforts should be made to Enterprises near bankruptcy After an enterprise has closed manage labour service companies usually refer to those which find down, we must first check the well and gradually turn them into it hard to sell their products and equipment and materials and open a "reservoir," so to .speak, to take back payments for their goods bidding for their sale. If the debts absorb or transfer labour to where and so get into the red. As a are more than the assets, the state it is needed. These companies result, they are unable to com• will make up the losses. If the should also train people according pensate their workers or to pay assets are more than the debts, the to the needs of the labour for their raw materials. They state will keep the difference. market. • 26 Beijing Review, No. 10 FROM THE CHINESE PRESS senior citizens live a comfortable Tianjin*s Elderly Describe Their Lives and stable life in government-run now receive free medical care in homes. Living expenses average from "BAN YUE TAN addition to their pensions, and 28 1,000 yuan a year in such homes, (Fortnightly Forum) percent enjoy half-price medical and the cost is paid by the state. care. About 97 percent said they Those who prefer not to live in HAT is life like for the were satisfied with China's pen• such retirement homes are often elderly in China? sion system. voluntarily adopted or are looked That question was posed to after by relatives, friends, neigh• 1,076 senior citizens (males 60 All of the elderly people said bours or workers in the neighbour• and older and females 55 and they hope to see more social ser• hood committee. older) in Tianjin. Some 33 per• vices opened for them. Regard• Both Li Xiuzhen and her hus• cent of those polled said they do ing their hopes, one-third wish to band, Deng Kongru, have passed not feel old and hope to continue be healthier, one-third hope to their 80th birthdays. Their only making a contribution to socialist have better housing conditions or daughter died 10 years ago and construction. Another 37 percent better food, and 16 percent hope they were left without the support said they feel too old to work in to see more harmony in their of a family. But their neighbours, the society, but still feel like doing family life. policeman Guo Zheng and his chores for their children. And Chen Huating, an 82-year-old wife, often lent a hand with house• 16.8 percent replied that they hope man, lives with his second son and hold chores. In 1982 Guo Zheng to prolong their lives. his daughter-in-law. Two of his and his wife went through the pro• In Tianjin 8.94 percent of the grandsons are in school. Chen's cedure of adopting the old couple. population is 60 years old or bedroom is decorated with a New On the adoption form they wrote, older. In a recent survey of the Year picture on the wall and some "We will treat the old couple like elderly, Tianjin officials investi• flowers and a TV is set up on the our own parents." gated their family life, their hopes table. Said Chen, "Before retire• Illness is one of the chief wor• and their needs. The data showed ment, ! repaired houses. Now my ries of the elderly. Over the past that 27 percent of the elderly are monthly retirement pay is 61 yuan. two years, 65 percent of the still working at their jobs. The My son and daughter-in-law do not 28,000 newly established family average monthly retirement sti• take a single cent and often bring beds were reserved for the aged. pend for the 66 percent who me extra foods for variety." He Every year the Red Cross provides had jobs before is 71 yuan. Of said that his other children often free physical checkups for people that group 61 percent arrange their buy him good wine, cakes and over 60. Many neighbourhood finances themselves and 32 percent pastries to celebrate New Year's service centres for the elderly have have their finances arranged by Day or other festivals. been established in Tianjin. And their spouse. Chen lives a good life. Every today the childless elderly are morning after rising, he listens to guaranteed the following: Daily The investigation also showed the newscast, does his exercises in necessities delivered to their doors, that 72 percent of the elderly live the park, and then goes to the help with chores, personal visits with their children. Of them, 91 movies or plays chess or cards on New Year's Day and other fes• percent said they have harmonious with his friends. After a two-hour tivals, medical service, personal relations with their families. And nap, he reads newspapers and does care when it is needed and help 85 percent of the elders living with home repairs. with their children arrange the chores. And after his supper, he whole family's daily expenses. always takes a walk and watches The elderly have established Some 90 percent enjoy the same TV shows. their own sports, calligraphy, hom• food and drink as their children, Most of the elderly live with ing pigeon and fishing clubs. They and 8.6 percent actually eat better their children, but those who have also have organized sports com• than the younger generation. no children are protected by social petitions, calligraphy exhibitions institutions. There are 12 retire• and a series of lectures on health Most elderly people are respect• ment homes in Tianjin's urban dis• care. Some elderly refuse to sit ed by their families. More than tricts and 180 old folks' homes in back and take it easy. Many re• 60 percent of the elderly people the rural areas. More than 2,700 tired professors, engineers, tech- Marck 11, 1985 27 nicians, workers and medical pro- ficult problems and have trans- strangle the personality. fessionals continue to work. Since lated 600,000 words of foreign 1980 a group of 140 retired Tian- technical publications for other — Mencius said 2,000 years jin engineers have solved 90 dif- units. ago, "Before someone will be en• trusted with a grand task, he must ascetically train his mind, tire his muscles and thin his body." His Changing Attitudes Towards Life theory has been taken as a criterion for self-cultivation. In wartime it may be correct to ask of looking forward or even look• from "JIEFANG RIBAO" people to do so, but in the course ing around. They are afraid to (Liberation Daily) of socialist construction it is a be in the limelight or to discover shame to ask the people to act new things. Their clothing, food, PERSON'S attitude towards like that. During the "cultural shelter, transportation and daily A life decides and also guides revolution," young couples were the way he or she lives. In the necessities have remained un• changed for several decades. The forbidden to eat anything good three and a half decades since on the first day of their marriage. liberation, the Chinese people rhythm of their lives is slow. They This is nothing short of asking have greatly changed their at• know quite well that time is pre• them to "thin their bodies." titudes towards Hfe. This is es• cious, but they are used to living in a leisurely and unhurried way. pecially true since the imple• Now the attitude of the Chinese mentation of the open policy in • — A man who is full of desire people towards their lives is the last few years. is active. But the ancestors of changing from isolation to open• But China had a feudal society the Chinese people believed one ing to the world and hoping for with a small-scale peasant econ• should control all desires. The change, from maintaining the omy for a long time and the Chi• humanists in Western countries doctrine of the mean to valuing nese people were almost entirely have risen to oppose this idea, creativity, from controlling de• cut off from the rest of the world. but the Chinese people have kept sires to emancipating the per• They were also greatly influenced silent. Some even are apathetic to• sonality and from practising by Confucian and Daoist wards actions and theories which asceticism to enjoying and de• thought. Their attitudes towards run counter to humanism and veloping their lives. life sometime reflect feudal at• titudes. This is unsuitable today. — Chinese people long believ• ed that isolation from the rest of Soybean Leaves Yield Whole Plants the world was the best policy. This was not considered back• from roots, stems or leaves. ward 1,500 years ago. But today from "GUANGMING RIBAO" there are still a few people living (Guongming Daily) Researchers at the Agricultural isolated in the remote mountains Scientific Research Institute in the who are satisfied with their lives Chinese researchers have for the city of filin began their experiments there. Even some who move first time succeeded in cultivating with soybean leaves in 1982. After from these isolated areas to the soybean plants from a single leaf. more than two years of testing, busy cities are always thinking The results of the soybean experi• they successfully bred six plants, about how to keep to themselves. ments were reviewed at a recent of which two blossomed, produced They give and receive no informa• meeting of the Jilin Provincial beans and generated seeds for tion. Science and Technology Commis• planting a second generation. sion in Changchun. — Confucius maintained that Many agricultural experts see people must uphold the doctrine Cultivating plants from cells is both scientific and economic im• of the mean. Lao Zi believed that a major field of study for genetic portance in the Jilin findings. If a man who was unsatisfied with engineering researchers. Scientists the method can be developed, his situation would bring himself believe that they can cultivate agronomists will be able to speed suffering. Influenced by these whole plants from a single cell of up the propagation of fine soybean ideas, many people are satisfied the plant. But prior to the Jilin ex• strains and overcome some prob• with their present lives. In this periments, none had been suc• lems which caniiot be solved in way, they look backward instead cessful in growing soybean plants ordinary breeding. 28 Beijing Review, No. 10 BUSINESS AND TRADE New Trends in China's Silk Exports In 148 BC a group of camels, fully loaded with silks, walked westward across the vast desert. The colourful silks on their backs shimmered in the dazzling sunshine. Thus the Chinese people opened the Silk Road, and this fine white fabric became the fashion in Europe. Now, 2,000 years later, Chi• nese silk still dominates the world market. The output of co• coons and natural silk, and silk exports from China rank first in the world. Wang Mingjun, president of the China Silk Corporation, said in an mterview that since 1978 China's silk exports have been rising (see graph below). ,j i9n iiJi ii»i> nil i9t2 /Hi >9it Hongkong business representatives inspect silk products at the The natural fabric will continue Guangzhou Export Commodities Fair. to be popular on the world textile market this year, and the prospects ment trade has changed its tradi• terprise with an annual designed for China's silk exports are bright. tional export structure: the exports capacity of 2 million metres of silk, Chinese silk sells briskly in the of embroidered garments have was funded by China and an United States, is stable in the West given way to the exports of silk Italian firm. It went into trial European market and has great garments. In the past three years operation last December. potential in Hongkong. It is es• the number of silk garments ex• timated that the value of exports ported has increased 200 percent this year will reach US$1 billion. over that of embroidered garments. Chinese silk garments sell especial• The major part of these exports CATIC Praised by ly well on the US market. are raw silk, silk fabrics and cloth• King of Jordan ing. China's raw silk exports ac• Wang said China's silk garment count for 90 percent of the world's trade has mainly been turning out Ninety percent of the housing total. China's silk and satin ex• less profitable, ordinary goods, in• project in the sixth, seventh and ports make up 40 percent of the stead of'high-quality items. There eighth districts of Abu Nuseir, a world's total. are also problems in the treatment new town in Jordan, were complet• after printing and dyeing and of China will mainly export pure ed last year, the biggest overseas late delivery of goods. In order silk piece goods. It will also be project ever undertaken by the to solve these problems, China showing a number of new designs China National Aero-Technology will use more foreign capital and and varieties, such as paj, spun silk, Import and Export Corporation import more advanced technology. crepe satin jacquard and heavy (CATIC). The work began in De• fabrics. The Yantai Silk Printing and cember 1981 and is expected to be Since 1982 the Chinese silk gar• Dyeing Factory, a co-operative en• completed by the end of this year. March 11, 1985 29 A corner of the eighth district of Abu Nuseir in Jordan. The project covers 184,400 square tracts have mainly been for air• ways have also been started. The metres and the contract is valued plane and machine processing fac• infrastructure and some of the at US$50 million. tories, airports, substations, and standard factory buildings and toporaphic surveys, geological warehouses will be completed this A housing project for glass prospecting and other industrial year. A number of ventures using factory and electrical factory and civil construction projects. Chinese and overseas investments workers at Maan and another one and co-operative enterprises in the for Maan railway workers were CATIC has a branch in Amman development zone will also be set completed last December. In the and representative offices in Abu up this year. course of construction. King Hus• Zabi and Kuwait. sein and Crown Prince Hassan in• Address:5 Liangguochang Hutong, In 1984 Qingdao authorities spected the worksite and expressed Meishuguan Houjie, Beijing, China reached agreement with, foreign their satisfaction with the quality Telex: 22318 AEROT CN businesses on 121 projects using of the work. King Hussein wrote, Cable Address: CAZD overseas capital and imported "We highly appreciate the Chinese technology. These projects are brothers who have wholeheartedly valued at US$163 million. Twenty- devoted themselves to the most im• Qingdao Makes two projects went into operation portant project in Jordan." Prime and made profits the same year. Minister Mudar Badran and other Project List ministers inspected the worksite several times and said the construc• A total of 178 co-operative pro• Joint Development tion technique of CATIC is excel• jects will be proposed at the Shan• lent, and its work is superb. dong Province economic and tech• Of Scenic Spot nical co-operation and trade talks, The China Hunan Huaxiang Co. Hu Ke, vice-president of CATIC. scheduled for March 25-April 3 in signed a contract last November explained that the corporation is a Qingdao. Of these, 115 projects with the Ontario-Hunan Develop• state-run enterprise handling im• will involve importing technology ment Investment Co. of Canada to ports and exports of aero-technical and 63 will be joint ventures and jointly operate the Suoxiyu Tourist products and non-aviation prod• co-operative projects with overseas Centre in Cili County, Hunan Prov• ucts. It has a contracting en• investors. ince. gineering department with a solid These projects cover textiles, base. In the past 30 years CATIC light industry, foodstuffs, elec• The natural scenic area in has built and repaired 50 airports, tronics, meters, rubber, chemicals, western Hunan covers 14,700 more than 1,000 kilometres of high• machinery and building materials. hectares. Its picturesque scenery ways and has designed and built and secluded caves make it an ideal Qingdao is one of the 14 coastal 10 million square metres of'factory spot for a top-notch tourist centre. cities opened to international busi• buildings and housing in China. ness last year. City officials are According to the contract, initial Since 1980 it has also offered working hard to improve the in• decisions have been made to utilize construction and labour services in vestment environment. Construc• foreign capital and import related other countries. In the past five tion of hotels and office buildings technology and equipment. More years it has contracted for 16 proj• on (wo square kilometres of the de• than 20 projects such as a civil ects valued at US$140 million iri velopment zone began last year. airport, a hotel, roads and a recrea• Jordan and Kuwait. These con• Water diversion works and high• tion centre will be built in stages. 30 Beijing Review, No. 10 CULTURE AND SCIENCE Korean Culture Highlighted An exhibition on the history, low and it can be warmed by a satin are displayed in wooden cuhure and customs of the Korean stove that heats the air under• wardrobes, trunks and cases carved nationality in China recently neath. In summer, the platform with flowers and other patterns. opened in Longjing County of the is cooled by the trapped air. Yanbian Korean Autonomous Pre• There is a sitting room with a fecture, Jilin Province. The stove, located in a corner south-facing window for the of the main room, is ventilated patriarch of the family in the main Longjing County is densely with a chimney. There are three room. The window of the sitting populated with ethnic Koreans large pots on the stove used for room is barely one foot off the who emigrated from the Korean cooking. Although they look floor, which is the perfect height Peninsula a century ago. During clumsy, they work like pressure for someone sitting on the plat• the Japanese occupation of cookers and are perfect for rice form. A glass case containing a northeast China at the turn of the cooking. family tree diagram, a marriage century, the county served as the The main room and four rooms certificate and classical Korean capital and cultural centre for the on the west serve as bedrooms. literary works and paper currency local government. The family members live in dif• are displayed on a tea table. Other The exhibition centre is a Ko• ferent rooms according to their rooms are filled with daily items rean-style wood house with a tile seniority and sexes. The two such as irons, incense burners, a roof. A farm-tool shed is attatch- rooms at the cast end serve as a small-bowled long-stemmed tobac• ed to the house. storehouse and a cowshed. co pipe, shoes and caps. The house has five doors. En• Various cultural relics are Every exhibit is labelled with tering the middle door, the visitor displayed throughout the house. information about its origins, the goes into the main room, which There are bowls, spoons, pans and provider's name and when it was is connected by doors to the other other- cooking utensils made of used. Some labels are written in rooms of the house. A platform, copper, as well as pottery or both Korean and Chinese. about one-foot high, covers the wooden vats, jars and other dec• whole room. The visitor must take orated kitchen vessels. Some look This kind of exhibition is not off his shoes once he enters the very delicate and fine, while others unique in China. The museum of room. People sit on the platform are simply functional. Colourful the Yanbian Korean Autonomous during the day and sleep on it at clothes and bedding materials Prefecture has begun to collect night. The platform is half-hol• made of cotton, linen, silk and relics for a full-fledged nationality exhibition. Seven staff members of the museum have travelled throughout the Korean districts collecting articles which reflect the ethnic traditions. (The 1.76 mil• lion ethnic Koreans mostly live in northeast China.) So far they have obtained more than 3,000 pieces. Another folklore exhibition opened two years ago in the Xin• jiang Uygur Autonomous Region where more than 40 minority na• tionalities live. The exhibitioji describes the culture and customs of 12 ethnic groups, including the Uygurs, Uzbeks, Mongolians, Huis, Xibes, Manchus and Russians. The exhibition includes more than March II. 1985 31 Building museums to house minority cultural relics is the best way to make sure such artifacts don't disappear altogether. Ancient Relics Found in Tibet Man lived on the "Roof of the World" in Tibet 3,000 years ago. This has been proved by a recent discovery of New Stone Age ruins on the northern outskirts of Lhasa, the capital of the autonomous re• gion. Archaeologists have so far dis• covered a cave dwelling site and two ash pits, which contained a number of stone and bone imple• 1,000 exhibits featuring clothes, delicate and beautiful. They in• ments and a large quantity of pot• ornaments, jewelry, daily articles, clude batik, embroidery, cross- tery fragments. furniture, tools and architecture. stitch work, weaving, knitting and Among the stone objects exca• carpets. They have their own vated were three stone shovels of literature, music, entertainment, various designs. Museum to Feature recreation and sports traditions. The pottery fragments include It would be highly interesting to Minority Artifacts some black pottery pieces decorat• see all these minority artifacts in a ed with flowing rhomboid patterns. museum. Unfortunately, of the 400 A plan to establish a museum museums throughout the country, The most valuable ancient arti• devoted exclusively to China's few have adequate collections of facts uncovered were a crude jade minority nationalities was an• minority relics. axe and a bone needle about 7 cm nounced at the National Con• long and 3 cm in diametre. The ference on Cultural Relics of Conference delegates pointed out jade axe is beautifully shaped and Minority Nationalities held last that the establishment of these very smooth, though it is slightly November. The Beijing conference museums is important because damaged. also decided to set up a Minority there is an urgent need to rescue Archaeologists believe the relics Nationality Cultural Relics Com• minority cultural relics before they to be about 3,000 years old. They mittee under the State Nationalities disappear. For instance, the aboli• say the excavated relics bear some Affairs Commission. tion of the slave system in Tibet brought about the destruction of similarity to those unearthed in The new museum would provide the iron chains by the former the Huanghe (Yellow) River an even better look at the customs slaves, and the barbarous imple• basin, and they are also similar to and lifestyles of the nation's 55 ments are no longer to be found. those excavated in 1977 near minorities than is available at Also, during the "great leap for• Kharuo village in eastern Tibet. museums like Beijing's Cultural ward" in the late 1950s, many The New Stone Age Kharuo ruins Palace of the National Minorities. minority people melted down include the foundations of five Many of the 67 million minorities their copper cooking utensils to houses, nearly 300 stone and bone live in the country's frontier areas. help produce iron and steel. The artifacts and pottery pieces, and They have their own religion, cul• wide use of modern techniques and skeletons of birds and animals. ture and distinct lifestyles. They equipment resulted in the destruc• celebrate their own festivals, and The recent discovery sheds addi• tion and disappearance of many tional light on the development of their clothing and ornaments are cultural relics. In addition, some often colourful and rich in style. human history in Tibet, which has valuable relics were stolen or pur• a recorded history of only 1,300 Many minority handicrafts are chased by foreigners. years. 52 Beijing Review, No. 10 SPORTS Challenging Climbers Charge to China In the world of sports, 1982 in 1985. from China's side. An Italian- was the year of soccer; 1983 was Austrian-Swiss team is planning the year of track and field; and China is the home of the world's to ascend the world's 14th tallest 1984, the year of the Olympics. highest peak and its rugged south• mountain, Xixabangma (Mt. Gos- Now many are saying 1985 may west has long been a magnet for ainthan, 8,012 metres), also from well be the year of mountaineer• mountaineers. Eleven of the China's side. ing. world's 14 highest peaks are in the Himalayas, all more than 8,000 The 1985 climbing list also in• As the Alps and Pyrenees be• metres above sea level. cludes Ku-erh-la-man-ta-t'a Moun• came too familiar to trigger fur• tain in Tibet (7,694 metres); Muz- ther interest, southwestern China The king of mountains, Qomo- tagata Mountain (7,546 metres) seems a nice change of scene. langma (Mt. Everest, 8,848 me• and Bogda, Mountain (Mt. Bogdo More than 30 climbing teams from tres), will be assaulted eight times Ula, 5,445 metres), both in Xin• Japan, Italy, Austria, Canada, in the heat of the 1985 climbing jiang; Gongga Mountain in Si• Britain, France, New Zealand, craze. Climbing teams are expect• chuan (Mt. Minya Konka, 7,556 West Germany, Switzerland, Ro• ed to ascend the peak from the metres); and A'ynemaqen Moun• mania, the United States, Spain north face on China's side. tain in Qinghai (Mt. Amne Mach- and Hongkong are preparing to One US team will scale Qogir in, 6,000 metres). Each offers a scale the heights of the Himalayas Mountain (Mt. K2, 8,611 metres) unique climbing challenge. people, including 12 professionals from China. There are also scien• China, Japan to Tackle Unclimbed Peak tists, journalists and service per• sonnel. Li Menghua, minister in Ku-erh-la^man-ta-t'a Mountain in ties. The suggestion was praised charge of the State Physical Cul• Tibet will be a mecca not only for by Party General Secretary Hu ture and Sports Commission of Buddhist pilgrims, but also for Yaobang during a tour of Japan. China, is the honorary captain. Chinese and Japanese mountain• Last July the China Mountaineer• The team captain is Hirabayashi eers who are due to scale its ing Committee signed an agree• Katsutoshi from Japan, which has heights from April to June. ment with the Japanese. also organized a logistics commis• Situated on the Sino-Nepalese The joint team consists of 69 sion for the coming climb. border, the mountain rises 7,694 metres above sea level, at the west• ern end of the Himalayas. Preci• pitous and elegant, it poses a spec• ial challenge for mountain clim• bers the world over. This spring's assault will be the first ever. Known also as Gurla Mandhata in Sanskrit, Ku-erh-la-man-ta-t'a is the source of the Yarlung Zangbo, Konqi and Indus rivers. The whole area is 4,500 metres or more above the sea, hence the name "Roof of the World." The joint assault of Ku-erh-la- man-ta-t'a was initiated by the Kyoto Japanese-Sino Friendship Association and Kyoto Daigaku and Doshisha Daigaku universi- March 11, 1985 BOOKS Encyclopedia Volume Examines the Law Science of Law, which was in a socialist society. The pro• Tokyo, Khabarovsk and Nurem• recently released as part of the letariat should, and will inevitably, berg, the section on the Shenyang voluminous Encyclopedia Sinica carry forward the useful legal and Taiyuan trials in the "Law of (in Chinese), is the result of years systems and concepts as part of War" chapter may provide new of painstaking efforts by 200 mankind's rich cultural legacy. insights. Based on historical editors and contributors. Many of archives, this section describes those who worked on this new Legislation on debts, for China's handling of Japanese volume also participated in the example, cannot be dispensed with prisoners of war according to the revision of the Constitution in until communism is achieved. merits of each POW's case, 1982 or helped draft the Criminal Although China has not yet drafted ensuring each person his legal Law, the Law of Criminal Pro• its civil law, which will deal with rights and combining punishment cedures and the Law of Civil Pro• the issue of debts among other with leniency. Facts are cited to cedures (on trial). Others are things, the book devotes one-fifth show how these Japanese prisoners experienced lawyers and judges. of its civil law section to a were transformed into champions The whole book fuses legal theory detailed explanation of the rela• for Sino-Japanese friendship and tionship between the creditor's world peace. ^j, and practice and probes into every rights and liabilities. aspect of the science of law in a "Letting a hundred schools of ^" lucid and eloquent way. From the historical materialist thought contend" is onp of the ii. point of view, the Marxists never book's guidelines, so . different * Science of Law acquaints the theories are all represented. jjg. reader with various legal schools, denies the progressive role of some ancient and contemporary, Chinese bourgeois revolutionary slogans in For example, many hold that -t- and foreign, while using Marxist the fight against feudal autocracy. economic law is the inevitable ^ theory to analyse them. In the same spirit. Science of Law result of, and develops with, high _ confirms the strong points of economic growth, thereby enjoying ^ The "Law: Its Classification" capitalist law during the bourgeois great promise for future develop- ^ section, for example, presents revolution and points out its ment. Others maintain that it is -f- different ways of classifying the reactionary nature during the later merely a component of both ^ law. In another section, the period of bourgeois rule. administrative and civil law. With -f various schools of law are analysed all the controversy, the editors ~ to demonstrate how the law has Marxist- legal theories are compiled a section on economic jb reflected the will of the ruling emphasized, but adequate coverage law for the reader's reference. JK- class throughout mankind's histor• is also given to various bourgeois With the help of the State Coun- ^ ical development — from the slave legal theories and oppressive laws, cil's Economic Law Research Cen- at society, to feudalism, to capitalism including the anti-labour "Taft- tre, the editors have presented eco- ^ and on to socialism. Another Hartley law" and South Africa's nomic law in a system parallel to — section examines the law's essence apartheid law. China's economic legislation, ^ and its role as an apparatus for There is an unmistakable which goes beyond the scope of ^ the ruling class. "Chineseness" in the book's in• traditional commercial law. — ternational law section. In the • While, on the whole, the law is chapter on the "Five Principles of As a pioneering effort. Science * a tool for the ruling class, not all Peaceful Coexistence," the book of Law is centainly not without its ^ of its nuts and bolts serve class praises China's contributions to drawbacks. Chinese jurisprudence, ^ oppression. In fact, some or• international law and discusses the for instance, could have been pre- ^ dinances and provisions are ap• interests, demands and ideas of sented better. It is hoped this iz. plicable to all societies and classes. the third world. and many other pitfalls will be ^ So the book, which emphasizes corrected when the second edition ^; the law's class nature, unfailingly To foreign readers familiar with comes out. ^ points out that the law can be used the post-World War II trials in — Zhang Youyu ^ 34 Beijing Review, No. 10 Women Weaving Carpets. Deep in Thought ART PAQE Sketches by Shao Dadi Born in 1 938 in Beijing, Shao Dadi now teaches at the Beijing School of Applied Arts. Shao sketched these figures during a trip to Xinjiang. 4 I Old Man on a Donkey. Mosque. 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