A CHINESE WEEKLY OF NEWS AND VIEWS

Vol. 30, No.30 July 27, 1987 The Economy for First Half of 1987 Competition: Shanghai Writing I Bless You. BeijingR^r HIGHLIGHTS OF THE WEEK

VOL. 30, NO. 30 JULY 27, 1987

CONTENTS

NOTES FROM THE EDITORS 4 Mankind Must Control Its Own Explosion EVENTS/TRENDS S-9 Kohl Comes for Closer Relations p. 5 p. 22 Abnormal Weather Threatens China Stale Announces Research Awards Water Power Pays Off Humanity Must Control Its Own Expansion Summer Leaves Bcijingcrs Cold Factories Adopt New Work • Jufy 11, 1987, the "Day of the Five Billion" as designated System by the UN, serves as an alarm to the world: its population has Weekly Chronicle (July 13-19) grown too fast. Only by controlling its own expansion can humanity avert disaster (p. 4). INTERNATIONAL 10-13 USA: Irajigate Inquiry to Tackle Legal Issues The Economy So Far This Year France: Significance of the Barbie Trial • The State Statistical Bureau's update on industry, Darkar Meeting: Important Step to agriculture, the market and trade in the first half of this year. End Apartheid Overall the performance was good, although natural disasters and excessive investment in capital construction mar the figures Forecast for China's Auto (p. 27). Industry 14 ABC of Investing in China (VI): I Preparations Before Start-up IB Cradle of Scientific Talent China's Joint Ventures (Pictofiai) Centrefotd • The Beijing Institute of Technology — one of the jewels in Orattte of ^ientis^ and the crown of Chinese scientific education — can trace its Technologists 22 beginnings back to the Yanan base area of the 1940s. facts and Figures: Sustained It has since produced many of China's scientists and 27 technological inventions, (p. 22).

FROM THE CHINESE 28-29 BUSiNESSARADE 30-31 'Shanghai and Me' CULTURE/SCIENCE 32-33 • The Beijing Review and China Daily Shanghai branches COVER: Zhang Zhifiing (second, right), are holding a "Shanghai and Me" essay contest. Foreigners, professor of the automatic control overseas Chinese and compatriots from Taiwan, Hong Kong department from Beijing I-ngincering and Macao are invited to share their impressions and Institute, with his students at a experiences of Shanghai and offer their opinions and laboratory. suggestions about the work in this largest metropolis of China Xue Chao and Xu Xiangjun (p. 34).

PiAlished every Monday by General Editorial Office T«b m3666 Subscription prices 11 year): USA US$22.00 English Deportment Tel; 890051-5^6 BEIJING REVItW Auttfolia A.$22.00 Canada Can.$21.l» Olitiibutiid by China IntemaHpna) Book 34 Boiwonzhuang Road, Beijing trotting Cerporalien (CUOil SHUOIAN) New Zealand NZ.$30.00 The People's Sepubtu: of China ?.0. Box ««^iin», OHoa UK £)2.00 mt NOTES FROM THE EDITORS Mankind Must Control Its Own Expansion

by LI Li

uly 11 this year was believed by predicts that the world's popul• the 70s to 17 per thousand today. J the UN to be the day on which ation will continue to grow in the China's family planning activ• the earth's five billionth citizen coming 110 years. At the present ities comprise a number of was to be born. The day serves as pace, the world's population will elements. an alarm to the world: Its grow to 6.1 billion by the year — Extensive education work, population has grown too fast. 2000; and in 2022 when the five with the emphasis on the rural Human beings evolved around billionth baby reaches 35, the areas where 80 percent of China's 4 million years ago. The species world will be supporting eight population lives, so that the has gone on to increase its billion people—the estimated people learn to understand the numbers in the battle against the maximum by scientists. Yet by necessity of family planning and elements. By 1830, the number of 2060 when the five billionth practise it voluntarily; people had grown to one billion. person is 73, the earth will have 10 — Economic rewards and res• Following the swift development billion people on it. This will far trictions as a supplement to of medical sciences, the world's outstrip the earth's resources. education work; population rose quickly. By 1927, The growth of population — Advocacy of late marriages it had reached two billion. In 1960, ought to be kept in line with and one-child families; that is, 33 years later, the figure economic growth, resources — Free contraceptives and was a billion more; and the next availability and the ecological birth-control service, free choice billion were added in 14 years, so balance. Only by controlling its of family planning methods; the world's population was four own expansion can humanity — Running nurseries and old- billion in 1974. The latest billion extricate itself from coming people's homes well, so as to arrived in only 13 years. predicament. Family planning is guarantee healthier children and For people to be winning in the the solution. obviate the traditional concepts of battle over nature is a good thing, China is the most populous "dependence on the children in old but the pace of the population country in the world. When New age" and "the more children the increase has been too quick in the China was founded in 1949, its better"; past century, producing a "popul• population was 540 million. — Raising the status of women ation explosion" which is cause Misguided thinking during the to genuine equality and equal pay for concern. 1950s which saw only the for equal work, so that people will Ninety percent of the increase is "strength" of a big population but not seek a second child if the first is taking place in developing coun• not the problem it may cause led to a girl. tries, where the population a considerable growth of the The natural growth rate of constitutes three quarters of the population. By the end of the 60s, China's population was 14.08 per world's total. The greatest num• China's population exceeded 800 thousand last year, a rise over bers of new borns are concen• million. This serious error left recent years. One of the reasons is trated in the areas with the much trouble to the later that family planning work has backward economy and low living generations. Since the 70s, family slackened in some localities. This standards. The rapid increase of planning has been practised, and has not gone unnoticed by the the population retards economic the natural growth rate dropped government and the people, and development and cultural pro• from 25.83 per thousand in 1970 appropriate measures are being gress, and slows down the to 11.28 per thousand in 1985. adopted. Although China is improvement of living standards According to a survey done by expected to enter another baby in these areas. UN statistics show the World Bank, China's efforts in boom period in 1987, the rise of that there are at least 730 million population control delayed the growth rate can be checked since people in the world with too little "Day of the Five BilHon" by about one-third of China's couples are to eat, at least 100 million people two years and the world's willing to have one child only. And are homeless and over one billion population is thus 130 million less if half the famiHes in the people are crowded into inadequ• than it might have been. The countryside have only one child, ate living quarters. Most of these survey also shows that chiefly China can achieve its goal of people live in developing because of the slow down in the limiting its population to around countries. growth rate in China, the world's 1.2 billion by the end of this The seriousness of the problem overall annual growth rate century. goes much further. The UNdroppe d from 19 per thousand in

4 BEIJING REVIEW, NO. 30 m EVENTS/TRENDS

Kohl Comes for Closer Relations

peaking at a banquet in honour More than 2,000 Chinese Western European alliance, the S of Federal German Chan• students are being trained in improvement of relations between cellor Helmut Kohl, who arrived Federal Genriany thanks to Eastern and Western Europe, and in Beijing on July 12, Chinese scholarships from the Bonn the development of Sino- Premier Zhao Ziyang said the government, and Kohl said his European co-operation are im• close ties between the two government will soon increase the portant elements in world peace countries have become a model of number of scholarships to 3,000. and stabiHty," Zhao said. friendly co-operation between At the same time, more Federal According to a member of the developed and developing nations German students are studying in Federal German delegation, both of different social systems. China. Zhao and Kohl expressed their Kohl, whose July 12-19 trip was On international issues, Zhao appreciation for Soviet leader his third visit to China, told Zhao said China considers it important Mikhail Gorbachev's current that Federal Germany realizes to have medium-range missiles reform in Soviet Union. China's concern over the trade reduced simultaneously in Europe Kohl, the first top Western imbalance between the two and Asia. government leader to visit Tibet countries and is doing its best to "The strengthening of the since 1949, said before leaving for reduce the gap. Federal German statistics show that the difference last year was US$1.6 billion in Bonn's favour out of total trade worth US$4.2 billion. Zhao told Kohl that China welcomes Federal Germany's at• tempt to expand imports from China. But according to the head of propaganda department of the Chinese Ministry of Foreign Affairs, besides textiles, China cannot turn out enough prese• ntable products for export. Raw materials and semi-finished pro• ducts are badly needed in China. Kohl said the two countries have built a healthy foundation for long-term co-operation. "It is important for us to carry on the prospect of our co-operation to the 21st century," he said. He added that China welcomes Federal Germany's investment and suggested the establishment of a small advisory organization of senior officials from both countries to consider the expansion of bilateral relations. Federal Germany has been China's largest trading partner in Europe for the past few years and its fourth largest in the world, behind the United States, Japan and Hong Kong. Last year, trade volume between China and Federal Germany was up 16 times compared with 15 years ago.

JULY 27, 1987 5 EVENTSARENPS

Lhasa that Federal Germany and causes the death of fish and affects basin usually moves northward other countries of the intern• the global weather. It generally from late July, which will mean ational community agree that happens around Christmas every less rainfall. Also, they said the Tibet is part of Chinese territory. three to seven years and lasts water level of the river is lower After a two-day stay in Lhasa, about one year. Because it tends to than in previous years. By the end Kohl said he had experienced a come at Christmas, the pheno• of June, the highest level of the harmonious atmosphere there and menon got the name El-Nino, river's Wuhan section was just been deeply impressed by the which means holy baby in 20.8 metres, a rare low in the past efforts of the region to improve the Spanish. three decades. But they did not life of its people. He said his visit The previous El-Nino in 1982- rule out the possibility of heavy had been aimed at gaining a better 83 caused a great disaster in rains that would cause big floods understanding of China and China, Zhao said. The current in certain parts of the river. looking for areas of co-operation phenomenon started last autumn Indeed, in the provinces of between his country and Tibet. • and some people have linked it to Sichuan, Hubei, Guangdong and the abnormal weather in the first Anhui, and some other places, half of this year. recent heavy rains have already "Last winter was the warmest caused big floods, destroying Abnormal Weather since early 1950s," said Zhao. houses and farmland. Threatens China "The average temperature last In Sichuan Province, torrential December in most parts of China rains that started on the evening of was 1 -2 degrees centigrade higher July 9 hit some 45 counties, closing t's human nature to complain than normal. In January roads, cutting off communications Iabout the weather. When it's and February, the average and causing landsUdes. The rain in scorching hot in summer or temperature was 2-3 degrees 22 counties was measured at 100- freezing cold in winter, very wet or higher, and in some places 4-5 240 mm. very dry, everybody wants a degrees higher." In Hubei, the provincial change. But when unexpected Also, he said, the winter was government said 42 people died weather comes, people get nervous dry, which made it easier for forest and 120 were severely injured and vigilant. The abnormal fires to start. But while the winter during a spell of rainstorms this conditions could presage a natural was abnormally warm, the spring month. The downpours in 41 disaster. that followed was snowy and cold. counties damaged 33,600 houses, China's past winter was warmer Moreover, rainstorms, hail and flooded 778,000 hectares of and drier than usual, leading to tornadoes came earUer this year farmland, smashed 1,447 river some losses in agriculture and and affected a larger area. dykes and washed away 518 forestry, and parts of the country "In the past 37 years, the El- bridges. In the seven worst-hit are experiencing a rainy summer. Nino phenomenon has been linked counties and cities, the rain was as Will 1987 turn out to be a year of five times to disastrous floods in high as 400 mm. natural calamities? It is too early China. This summer, we have seen Zhao said, "Summer is only half to say because the weather has some local flooding. It is a rainy over, it is hard to say what the been so capricious. But scientists summer, but the precipitation is weather in August will be. We are calling for a close watch on the and will be uneven," Zhao said. should watch closely and be ready weather and for all-out prepar• He added that the rainfall will to cope with a possible large-scale ations for potential natural probably be heavier than usual in disaster." disasters. the Changjiang (Yangtze), by Li Haibo "For the seventh time since the Huanghe (Yellow) and Haihe founding of New China in 1949, river valleys. Some waterlogging we are seeing the El-Nino and floods have already occurred phenomenon in the world. Five in these areas. The Changjiang State Announces times, it affected China's weather River is the one that requires the and brought about a calamity. closest attention, he said. Research Awards This time we don't want to rely on luck; experience tells us we must be Judging from the present watchful," said Zhao Zhengguo, a situation, some hydrologists think cientists of the Ministry of meteorologist at the Central a catastrophic flood affecting the SGeology and Mineral Re• Meteorological Observatory. whole Changjiang River valley sources and the China National this year seems unlikely. Experts Nonferrous Metals Corporation El-Nino refers to an abnormal from the Planning Office of the have won a special award for rise in the temperature of the Peru Changjiang River System in developing a theory of ore Ocean Current in the equatorial Wuhan, central China^ explained formation and patterns which has area of the east Pacific Ocean. It that precipitation along the river helped locate large reserves of

6 BEIJING REVIEW, NO. 30 !

copper, sulphur, gold and silver on class winners 10,000 yuan, and experiment was a success. In 1984 the lower and middle reaches of third-class winners 5,000 yuan. • the Research Institute of Chinese the Changjiang (Yangtze) River. Sturgeon Artificial Breeding, The National Committee for located near the Gezhouba Examining Scientific Advances project, incubated the fish by announced on July 14 a total of Water Power hastening parturition and threw 818 awards for research achieve• Pays Off more than 6,000 of the sturgeons ments that promote scientific and into the river. To the end of 1986, technological advances. Four the institute had artificially bred achievements won special awards; he Gezhouba hydroelectric about 1 million Chinese sturgeon 50, first class awards; 241, second Tproject on the Changjiang and had placed 467,000 of them in class; and 523, third class. (Yangtze) River, the biggest water the river. The achievement was conservancy project in China, recognized by th Ministry of The winners were chosen from generated 36.1 billion kwh of Water Resources and Electric 3,331 major scientific research electricity between 1981 and May, Power. findings across the country in 1985 1987. The total output value of The Chinese sturgeon, which is and 1986. From now on, the nearly 2.2 billion yuan equals 90 of great scientific as well as awards will be bestowed on 500 percent of the investment during economic value, is protected by scientific achievements each year. the first phase of the project. the state. Known as a "living The winning projects include a The first phase involved the fossil," the fish evolved from one micro-neutron-producing reactor, construction of a 2,600-metre- that lived during the dinosaur era, research on super-precision axles long dam, the Erjiang power and has existed for about 140 and lathes, and techniques for station, a sluice gate, a scouring million years. building tarmac roads on frozen sluice and two lock gates. The Usually, a mature Chinese ground. second phase of the project, now sturgeon enters the Changjiang Some items are firsts in China, under way, consists of the Dajiang River from the sea every autumn. including a computer-laser power station, a scouring sluice It follows the river about 3,000 Chinese character editing and and a lock gate. kilometres to the Jinsha River typesetting system; a technique to The Gezhouba project, located within Sichuan and Yunnan smash kidney stones without at Yichang City, Hubei Province, provinces, where it spawns. When surgery; and a comprehensive is designed to have 21 hydro• the young fish grows about 15 cm survey of Beijing using aerial electric generators, with a total long, it swims downstream to the remote-sensing. capacity of 2.715 million kw. The sea. It can live about 50 years and planned output is 14.1 billion kwh weigh several hundred The items with notable a year. So far, ten 125,000-kw economic and social benefits kilogrammes. generators and two 170,000-kw by Lu Yun include the building of 270,000- ones are running, with a combined ton bulk cargo ships that were sold capacity of 1.59 million kw. By the abroad, earning US$91 million for .end of this year, five more 125,000- the state; technology for develop• kw generators are scheduled to be Summer Leaves ing a low-carbon steel; a residual- in operation. Besides phase two of oil treatment technique; research the main project, two related Beijingers Cold for improving goat hide tanning; projects are also under way — the and the breeding of a new fine- 500,000-volt Dajiang transformer eijing people aren't interested wool sheep. and a 500,000-volt transmission Incomplete Statistics show that B in getting a sun-tan. Pale girls line linking Gezhouba and worry that the summer sun will 34 items which won special or Shanghai. first-class award have brought turn their skin yellowish or'dark about a direct economic return of Chinese Sturgeon: Some people grey, instead of a pretty bronze. more than 2 billion yuan. were worried that the damming of Families prefer to sit down to a 50- Awards also went to 145 the Changjiang River might to 100-fen watermelon in their scientific achievements related to hinder Chinese sturgeons from cramped house after supper. China's national defence. swimming to its upper reaches to This summer, as usual, Beijing According to the Regulations spawn and then returning to the is rainy.There are downpours on Awards to Promote Scientific sea. This would change the habits almost every week. Although the and Technological Advances, of the valuable fish and could even weatherman says 34 degrees promulgated in 1984, special cause its extinction. centigrade is the highest tempera• award winners will receive In 1981 some aquaculture ture so far, for those who are not bonuses of 200,000 yuan, first- experts suggested the testing of used to it, Beijing is unbearable. class winners 15,000 yuan, second- artificial breeding techniques. The Beijing people prefer winter's

JULY 27, 1987 7 Melons rolling Into town. LI YUTING and DING HUA wu Harmonica ensemble Li YUTING and DING HUA WU freezing cold to summer's sultry hour or two, they play chess or despite the poor transportation heat. In winter there is heating catch fish bare-handed until 11 and lodging, many government almost under every roof, but in am. For the 20, he said, swimming employees head for the beaches of summer there's hardly any air- in the lake is the best part of their Qingdao or Beidaihe, but not for a conditioning, with the proud lives. Even in the freezing winter, sun-tan, of course. exception of the CITIC building they visit the deserted lake every These days, train tickets to towering on the Chang'an Boule• morning. He said he feels Beidaihe, Qingdao and other vard and hotels catering to extremely close to the lake in popular places are so much in foreigners. Still, young people can winter, when there is no sign of demand that a temporary inspec• always find a place to cool down green around the lake and the tion office has been set up at after work. They can stroll leafless willows and poplars Beijing Railway Station to catch through the burgeoning open-air lament their bare branches and black marketeers. Earnest beach free markets with their sweet• trunks. lovers have to either get up at 4:30 hearts or their friends, eyeing Besides the crowded lake, a am or book tickets five days dumplings, trendy dresses, cheap limited number of jammed ahead. In the circumstances, many decorations and foreign cigarette swimming pools and night people are abandoning the idea of lighters. In Xidan Street, pedlars markets, there are also some leaving Beijing for their hoUdays. line the roadsides every night from ballrooms where Beijing people A young married interpreter in 6-10, crying their wares until can kill their evenings. Tickets are Foreign Ministry said, "Consider• beads of sweat well up on their priced at about 10 yuan each, 10 ing last year's struggle to get the foreheads and their eyes get red. percent of a month's wages for the tickets and survive the smoke Because of the poor quality of average person. There are also filled train compartment, and the the food and the high prices for the privately owned restaurants and murderous prices at the so-called dresses in the free market, other food stands, Celling mostly orange scenic spot, I would consciously young people swarm to Yuyuan- soda, beer and dumplings. But opt to stay at home." tan Lake Park to swim. On unlike residents of Shanghai and by Zhao Zonglu weekends, the 65-hectare lake has Guangzhou, who are beginning to to accommodate more than 2,000 appreciate night-life, decent Beij• people at the same time. One ing dwellers normally stay at particularly hot day — July home. Only a few youngsters with Factories Adopt 19 — more than 3,000 people punk haircuts are seen in the jumped into the lake and forced shabby night restaurants or at the New Work System the silt up to the surface. stands, gulping bottle after bottle At times like that, serious of beer or orange soda. ome 4,000 major industrial swimmers quickly head for the Senterprises — 51 percent of canal, where they can escape the Famous Tiananmen Square draws thousands of Beijing China's total — have adopted the large crowds, although the clean contractual responsibiUty system, part of the narrow canal is quite natives at night, enjoying the cool night air. a senior Chinese official says. limited. Speaking at a national confer• Only early birds can really enjoy Some government organiz• ence on the campaign to increase the cool tranquility of Lake ations such as the Ministry of production and improve the Yuyuantan and the weeping Culture, give their employees economy, Lu Dong, minister in willows on the banks. One of the summer holidays of seven to 20 charge of the State Economic early risers, a retired steel worker, days. People who have worked for Commission, described the system said about 20 people come to the more than five years may also get a as the "saHent feature" of the lake around 5:30 each morning. subsidy of about 70 yuan for nationwide campaign. After splashing in the water for an travelling outside Beijing. So Under the system, managers

8 BEIJING REVIEW, NO. 30 take responsibility for ensuring Weekly Chronicle months of this year hit a record production, marketing, product (July 13-19) US$16.63 billion, Guoji Shangbao quality and workers' benefits. (International Business) reports. They are rewarded for meeting quotas and penalized when they POLITICAL don't. "The spread of the system July 13 CULTURAL nationwide indicates that China's • An official of the Supreme enterprise reform has entered a People's Procuratorate says pro- July 16 new stage with the focus on curatorates at all levels handled New China's first copyright law improving the management mech• 22,740 economic cases in the first is likely to go to the NPC for anism," Lu told the conference. five months of this year, Jingji discussion this year, according to The system separates the Rihao (Economic Daily) reports. the first national conference on ownership of enterprises from Investigations were opened and copyright, which ended in Qing- managerial authority, he said, prosecutions started in 10,758 of dao today. adding that this enables enterpr• the cases. Of the total, there were The draft law ^ subject to ises to assume explicit economic 1,552 bribery cases, involving the suggestions from people responsibility, and to enjoy full arrest of 538 people, including 185 nationwide. managerial authority and Chinese Communist Party mem• economic benefits, while the State bers. Some of the bribe-takers retains ownership of the were officials above the county SOCIAL enterprise. magistrate level. The system also combines July 16 reform with enterprise develop• July 15 Beijing has opened a hospital of ment, he said. It gives impetus to • Deputies to the National traditional Chinese medicine es• tapping the full potential of People's Congress (NPC) will be pecially to serve foreigners and enterprises and encourages in• able to inspect grass-roots units overseas Chinese, Xinhua reports. creases in production and cost more easily using new identific• The Xiaoyuan International saving. ation cards issued by the General Hospital of Traditional Chinese According to a nationwide Office of the Standing Committee Medicine is named after Yuan survey by the State Economic of the NPC, Xinhua reports. Xiaoyuan, a Chinese professor Commission in localities where the Inspections used to be conduc• who has come back from the system has been introduced, both ted by groups in a centralized way. United States. She launched a managers and workers have Now deputies can go to any units fund-raising campaign for the retained their enthusiasm for the near their home whenever they hospital, — the first of its kind in system and have effectively like. They will generally be China set up without government implemented the capaign to looking at how the Constitution funds. increase enterprise revenue. and laws are being put into effect and how the resolutions and Since the system's introduction July 18 decisions of the NPC and policies in Northeast China's Jilin Pro• A minor explosion occurred in made by the government are vince four years ago, the province .Tiananmen Square at 11:50 pm on carried out. has posted high rates of growth in July 17 but caused no injuries or output value, revenue, profit and damage, Xinhua reports. taxes. ECONOMIC An unidentified man described Jilin's revenues have risen at an as a non-Beijing resident was average annual rate of 19 percent July 14 arrested by police with the help of over the past four years and grew • Work has started on China's bystanders. The public security by 16.2 percent in the first half of longest highway bridge on the department is investigating the this year. • Huaihe River, Xinhua reports. case. The bridge, located in Huaibin County, will be 1,110 metres long and 12 metres wide. It will be a vital communications link for FOREIGN RELATIONS Henan, Anhui and Hubei Provinces. July 16 An agreement on economic and July 16 technological co-operation be• • Customs statistics show that tween the Chinese and Grenadian China's export value in the first six governments is signed in Beijing.

JULY 27, 1987 9 INTERNATIONAL ••••••

USA the broad issue of what went wrong in a system of government designed to prevent abuses of Irangate Inquiry to Tackle Legal Issues authority. The US Arms Export Control The Iran-contra hearings are nearing the end of their fact• Act bans any shipment of weapons to countries which finding phase. The next step is to address some legal questions. sponsor terrorist activities. Iran tops the State Department's list'of countries that accommodate and The US Iran-contra hearings Congress want the current crisis to support terrorists in the Middle ' once again overshadowed the hurt the image of the US East and elsewhere. The secret soap operas when major figures at presidency too much. House of transfer of US-made weapons last appeared before the joint Representatives Speaker James from Israeli stocks also seems to congressional committee probing Wright and Senate Majority be prohibited by the act, which the covert operations. leader Robert Byrd have re• specifies that Congress must be Since the presidentially appoin• peatedly called on people to informed before this kind of ted special review board, known as refrain from putting salt on operation occurs. the Tower Commission, issued a Reagan's wounds because of the A key question raised in the report on its investigation in late clear differences between Water• hearing is whether the members of February, there have been some gate and Irangate. the National Security Council new developments. But the most (NSC) and the Central In• Most Americans see Watergate telligence Agency (CIA) violated publicized questions have centred as something relative to factiona- on President Ronald Reagan's laws against supporting Nica• list conflict, while the Iran-contra raguan rebels. As early as 1984, it knowledge of the controversial affair is seen as the outcome of events. Did Reagan know about was learned that the CIA was efforts by the president and his involved in secret operations in the diversion of funds from the staff to rescue American hostages secret sales of arms to Iran to aid Nicaragua. As a result, the kidnapped by terrorists or to legislators toughened the Boland the Nicaraguan contras? Did he patch up the relationship between know about White House co• amendment and barred any US the United States and Iran by any military aid to the contras from ordination of possibly illegal means necessary. So Americans military aid to the contras after 1984 until 1986. This act also don't seem to be holding Irangate appears to prohibit the use of Congress prohibited such as• against the president. A recent sistance in 1984? profits from arms sales to other straw poll shows the president still countries or private donations for During this round of hearings, has the support of 40 percent of this purpose. But North said it was the three key figures in the Americans and the figure is a good idea to use the Ayatollah's operation, Oliver North, Robert expected to rise to 50 percent. money in support of the contras. McFarlane and John Poindexter, failed to produce evidence that a A blow such as the president's Some Reagan officials have "smoking gun" memo from them impeachment might be more than taken refuge in legalistic quibbles reached the Oval Office and got the economy could bear. It could about exactly what the Boland the president's signature. Daniel trigger a steep fall in prices on the amendment prohibits. They say Inouye, chairman of the US stock markets, which have the amendment only prevents the Senate's Iran-contra panel said on recently been skyrocketing. It White House from using in• July 12 after hearing North's could also give the cue for the next telligence agency funds to arm the strongly worded testimony, "I economic crisis, for which con• contras. They even maintain that haven't seen anything as far as I'm ditions are ripe. Finally, a it is unconstitutional for Congress concerned that would be sufTicient presidential crisis would lead to a to limit the president's power in grounds to impeach the president further plunge in the value of the foreign affairs by interpreting the of the United State's." The US dollar and could provoke a amendment too liberally. Reagan Democratic senator also served major dollar crisis. Such consider• and his staff also argue that the on the committee that investigated ations may be deterring con• NSC is an advisory body and not the Watergate affair more than a gressmen from sending Reagan to an intelligence agency that is decade ago. That scandal ended follow Andrew Johnson, the only bound by the Boland amendment. up with the resignation of president in US history to be Critics of these arguments say President Richard Nixon in 1974 impeached. Reagan had plenty of time to amid calls for his impeachment. After having looked into what declare that he thought the Actually, neither the Re• the president knew and when, the amendment unduly limits his publicans nor the Democrats in next phase of the probe will turn to powers before he signed it.

10 BEIJING REVIEW, NO. 30 Concerning the role of the NSC in Roosevelt, the office is the active US foreign policy. the covert operations, they say the administration's top-ranking Although the US _ constitution White House is using the council policy-maker. In particular, the has been flexible enough to survive to get around the lawmakers, who Assistant for National Security 200 years, it may be time to have are keeping a watchful eye on the Affairs — McGeorge Bundy in the another look at this historical CIA. Kennedy administration and masterpiece. The increasing power Henry Kissinger in the Nixon of the government, particularly of The dispute over the Iran- administration — has taken an the White House, often en• contra affair is expected to increasingly dominant role in croaches on areas reserved for provoke a constitutional question: formulating foreign policy and in others and can create more Do the president and his Executive crisis management. opportunities for the abuse of Office still work on the check and powers. At the same time, the US balance principle, particularly It is said that the Iran-contra government sometimes seems when formulating and conducting hearing illustrates vividly that key unable to act efficientiy. On the foreign policy? players within the Reagan admini• eve of the constitution's bicenten• Under the 1974 Hughes-Ryan stration set themselves above the law. But at the congressional nial, it seems there is a need for a amendment to the Foreign realistic assessment of the docu• Assistance Act, a president must hearing, North castigated Con• gress for pulling the rug out from ment with a view to its continual approve any covert operation by evolution. signing a "finding" that the under the White House while it operation is important to national was trying to combat Soviet security. The president must, by expansionism and carry out an by Wan Di law, provide the congressional intelligence committees with time• ly notification of covert oper• FRANCE ations by the CIA and other intelligence agencies. But some operations — including the sale of Significance of ttie Barbie Trial US arms to Iran and the transfer of the profits to the contras — The trial of notorious Nazi criminal Klaus Barbie has ended, were kept secret. The White but the case provides much food for thought. House argues that the laws barring aid to the contras did not limit the president's constitutional he trial of Nazi war criminal verdicts against him in his absence power to manage foreign policy. TKlaus Barbie, known as the null and void. He assumed that the The executive branch, knowing "butcher of Lyon," has finally distant continent on which he that it would not get an approval ended after four years of lived was beyond the reach of from Congress, decided to leave investigation and two months of France and that time could make congressmen in the dark, relying court sessions. Barbie was senten• people forget him. on the execudve privilege granted ced on July 4 to life imprisonment But he was wrong. France by the constitution or a liberal for his "crimes against humanity." would go on stalking him as long interpretation of the constitution But in a sense, the trial is not over: as he was alive. In 1972, when the in deahng with foreign policy and it lingers on in people's minds and news that Barbie was in Bolivia activities. reminds them not to let the Since it was drafted in 1787, the historical tragedy recur. Klaus Barbie being ied into court. US constitution has been based on As former French President the separation of legislative, Georges Pompidou said when executive and judicial functions. Barbie's whereabouts was confir• But the powers and limits of each med 15 years ago, time can erase branch have always been open to some memories but not all. debate. Each president, as chief Barbie's crimes against humanity diplomat and commander-in- can never be forgotten or forgiven. chief, can argue that he is free to Barbie had a comfortable life use special agents to carry out after World War II. From 1951 to foreign activities despite the 1983, he lived a life of ease in wishes of Congress. South America. He even made a When facing an unhelpful bold European tour, including Congress, a president relies more Paris, to see whether his crimes on his Executive Office. Es• had become history. The lapse of tablished in 1939 by Franklin time had made two French

JULY 27, 1987 11 Barbie's guilt, except by one small and little-known newspaper. The West German government and people condemned Barbie and had asked for his extradition and trial. West Germany's attitude to• wards the role Nazi Germany played in World War II has gone through twists and turns. France and Germany fought three wars in less than 100 years, and suspicion and distrust clouded their rel• ationship in the the early post-war years. The West German govern• ment initially evaded the subject of the war atrocities committed by Hitler's Germany. This hurt relations with France and en• couraged the re-emergence of fascist forces in West German). But in the 1960s, the West German was confirmed, then President their history." They were re• government began to face the Pompidou immediately decided to minded of the painful past, and historical realities and changed its ask the Bolivian authorities to their determination to safeguard attitude. It assumed responsibility extradite him to France. The peace was strengthened. for the war and offered to extradition failed because Bolivia But a phenomenon known as apologize to the countries that had a right-wing military govern• "historical revisionism" also re- were invaded by Nazi Germany. ment. In 1982 a civilian govern• emerged in the course of the trial. This created the conditions for ment took power in Bolivia and The "revisionists" want to reverse better relations between West French President Francois Mitter• the history of World War II. They Germany and its neighbours. On a rand strengthened co-operation say the holocaust has been talked visit to Poland in 1970, then West with the new government. After about too much by historians, and German Chancellor Willy Brandt painstaking efforts, France at last the concentration camps atid gas knelt down before the Warsaw got Bolivia to agree to deport chambers never existed. Some Jews Memorial to express his deep Barbie, and he was finally brought people gathered outside the court, repentance. Brandt, the chairman to the place where he should have distributing booklets advocating of his Socialist Democratic Party, been long ago — a prison in Lyon. this opinion. Sociologists feared had no personal responsibility for Many people have devoted their that the "revisionist" trend would the war. He was acting on behalf lives to the capture of Barbie and influence public opinion and of the West German people. His other Nazi war criminals who interfere with the trial. But polls courage and farsightedness, which remain at liberty. These Nazi conducted before thq trial showed still draw admiration, helped West hunters are seeking not merely that most people do not agree with Germany achieve a historical vengeance but also justice and this trend. On the contrary, they reconciliation with neighbouring peace. think the history of World War II countries. The West German Some people feared that 43 should be publicized more and repentance for the war also years after the war people's hatred that young people, in particular, contributed to the steady develop• of Nazi criminals has dissipated should know about it. One ment of its co-operation with and that the trial of Barbie, now a sociologist, after analyzing the France since 1963. haggard old mai>, might not results of the polls, said he felt easy The West German people have achieve the expected results. and was encouraged because they not forgotten their Nazi country• Others feared that young people meant that the "historical revi• men. According to a private born after the war might be sionism" could not dominate the organization, West Germany has indifferent in the trial, which media. The trial was not only conducted some 90,000 investig• would considerably reduce its necessary, but came in good time, ations into Nazi war criminals and educational value. But all these he said. 6,000 cases have come to court. A fears proved groundless. As a On the other bank of the Rhine thousand more cases are under French journalist wrote during the River in Barbie's homeland, the investigation. Prosecutions are trial, "The French people are re• reaction to the trial was subdued. difficult because of a lack of reading the most miserable page of No doubts were raised about evidence and witnesses, but the

12 BEIJING REVIEW, NO. 30 West Germans are persevering in it might be too late to investigate Some distinguished members of the hope that the historical other Nazi escapees, but it is never the ruling National Party of South tragedy will never be repeated. too late to analyze the Nazi Africa—including a member of The remnant fascist forces in phenomenon from a historical parliament, Wynand Malan, and West Germany, unlike in another perspective. This echoes the voice former ambassador to Britain defeated country, can not stir up of the people of the world, who Denis Worrall—have broken big trouble today. Public opinion oppose aggression and war and away from the party. They does not tolerate them. are calling for peace. publicly stand for the repeal of all A French journalist wrote that By Zheng Yuanyuan the racist laws and giving the black people political freedom. Twenty- eight professors and lecturers at DAKAR MEETING Stellenbosch University, of which Botha is the president, have quit the party because the Pretoria Important Step to Ending Apartheid authorities have refused to accept more reforms. About 330 ac• ademics at the university wrote to The Dakar Declaration, jointly issued by the African the president urging him to National Congress and a group of white South Africans, abandon the racial discrimination represents the gravest challenge so far to P. W. Botha's racist laws and end white rule. The opposition PFP has exerted regime in South Africa. constant pressure on the Pretoria regime. Zyl Slabbert has asked the n 18-member delegation of the Frederik van Zyl Slabbert, who South African authorities to AAfrican National Congress headed the PFP delegation at the engage in a dialogue with the ANC (ANC) and more than 50 South 1985 meeting with ANC leaders in and pointed out that Botha's African whites have agreed on the Lusaka, capital of Zambia. reforms are a hoax. He pledged to need to remove apartheid and The South African authorities co-ordinate the opposition forces build a united, democratic and have denied the status and role of to realize the aim of destroying non-racial South Africa. The the ANC in negotiations to find a apartheid. By leading a big agreement is set out in the Dakar solution to the country's pro• delegation to talks with the ANC, Declaration, jointly issued by the blems. But an increasing number he put his pledge into action. two sides on July 12 after a three- of white people in South Africa Diplomatic and political ana• day meeting in Dakar, capital of and the West have recognized the lysts said the meeting has paved Senegal. The parties called for a ANC. The head of the white the way for further talks between negotiated resolution of the delegation in Dakar said the ANC the ANC and white South conflicts in South Africa and held .will be a decisive part of any Africans who reject both the the Pretoria regime mainly settlement in South Africa. ideology and practice of the responsible for obstructing negoti• Danielle Mitterrand,wife of the apartheid system. Senegalese Pre• ations. "The unconditional release French president and leader of the sident Abdou Diouf described the of all political leaders in prison or France Liberte foundation, helped meeting as "one of the most detention and the lifting of bans organize the talks. Before the significant meetings of the cen• on organizations are fundamental meeting some Western officials, tury." South Africa "is living prerequisites for such negotiations including US Secretary of State through a period of transition, a to take place," the declaration George Shultz, held talks with the decisive moment in its own history says. ANC leaders to discuss the future and in the history of Africa," The meeting in Dakar was the of South Africa. So the ruses of the Diouf said. However, the Pretoria first of its kind since a group of South African authorities to regime sharply attacked the Afrikaner businessmen met ANC isolate the ANC have not meeting. Pretoria-run Radio representatives in Zambia in succeeded. South Africa and the Afrikaner September 1985. The white The apartheid policy of the Resistance Movement called the delegation included politicians, Pretoria regime is unpopular and whites' meeting with the ANC an scholars, farmers, businessmen, many white people in South Africa "act of betrayal." The analysts artists and sports figures. It was have lost confidence in President said Pretoria's attack on the led by former leader of South Botha's ability to solve the Dakar meeting reflects its fear of Africa's opposition Progressive country's problems. The cen• future contacts between the ANC Federal Party (PFP) and president trifugal tendency within the ruling and white South Africans. of the Institute for a Democratic clique is growing stronger and Alternative for South Africa contradictions are widening. by Xu Dewen

JULY 27, 1987 13 •i ARTICLES

Forecast for China's Auto Industry by Gao Hanchu*

merging as the major prop for prises and institufions, and more needed by the taxi department can E the economic development in demand will accompany the rapid only grow with increasing de• the Seventh Five-Year Plan period development of the 1.7 million mand. Forecasts on these three (1986-90), China's auto industry township enterprises and the areas show that a total of 2 to 2.5 will base its growth on the forecast 150,000 urban collectively owned million cars will be needed. Of the of future requirements. This is enterprises. It is estimated that total, 1-1.2 million will go to based primarily on the demand for their total output value will government departments, cars in China. The importance of increase by more than 10 percent organizations, state-owned enter• car production is obvious if we annually in the remaining years of prises and institutions, 800,000-1 look at its worldwide develop• this century. One of the striking million to township enterprises ment. The annual world output of characteristics of these enterprises and urban collectives and 200,000- motor vehicles totals 42 million; is that they are small in size and 300,000 to taxi and tourist cars make up 75 percent of this. widely dispersed. To develop their departments. For a long time, demand for business activities, they are in With the expansion of the cars was straitjacketed in China, desperate need of convenient national economy and rising and their production did not grow transport facilities. A recent incomes, private car ownership as it should have. Today, the survey of 1,000 township enterpr• will soon be put on the agenda. A annual output of cars only ises shows that at least one car will few Chinese households can now accounts for 2 percent of China's be needed for every two put aside the money for a car, but motor vehicle industry's output. enterprises. given the development level, the Neglect of the development of cars With the development of the growth rate of the national is one of the major reasons for the tourist and taxi services, the economy and the huge population auto industry's sluggish growth. number of cars needed will also in China, it will take a long fime Without promoting cars, it will increase. There are more than for cars to be owned by Chinese not become a major industry. 40,000 taxis in China's big cities. households. It is expected that a There is a limit to the demand for Taxis will spread in other urban heavy private demand for cars will heavy-duty lorries, but cars have a areas in the years to come. Given be apparent next century. This huge potential market in the the incomes of the Chinese people, century's demand will be confined country. it is impossible for many of them to the very high-income bracket. More cars are an inevitable to use taxis. The number of cars The forecast for consumption outcome of economic develop• ment, and China is no exception. A multi-purpose truck which can drive on the road or run on railway tracks. In recent years, along with the ZHAO YUQING implementation of the open policy and development of the domestic economy, the number of cars needed has increased rapidly. Between 1980 and 1985, the total number of cars in use and available for sale increased by 100 percent, from 240,000 to 480,000, an average growth rate of 15 percent a year. From now to the end of this century there will be a growing demand for cars in the public and commercial fields. A large number of cars are expected to be needed by government departments, or• ganizations, state-owned enter-

*Gao is a researcher of the Jechnical and Economic Research Institute of the State Economic Commission.

14 BEIJING REVIEW, NO. 30 Forecast for the Number of Motor Vehicles In Use and in Demand Year Vehicles in Use (unit: 10,000) Vehicles in Demand

Total Cars Goods vans Coaches Trucks Total Cars Goods vans Coaches Trucks 1990 500-550 70-80 25-35 35 370-400 67-84 9-13 5-9 6 47-56 1995 805-915 140-170 70-90 55 540-600 114-147 26-34 16-20 8 64-74 2000 1,300-1,520 300-400 150-200 80 770-820 186-212 60-73 29-39 10 87-90 patterns shows that housing and township enterprise, or three of 10 percent, and the number of household electrical appliances specialized households. Accord• people involved in the year 2000 will top the demand list for the rest ing to estimates, a total of 1.5-2 will be four times greater than in of this century. High-income million vans will be needed by the 1985. households which already own year 2000 including those needed Buses are the chief means of these things will then turn to the in the cities. transport in Chinese cities. Under• purchase of cars. According to a ground trains and trams will be sample survey, the potential car Demand for coaches will developed in a few big cities, but buying households this century continue to grow with the buses will remain primary. With are 5 percent of all households. expansion in highway passenger the growth of the urban Although the figure is small, it transport and the development of population, the number of buses represents about 15 miUion public transport in the cities. The needed will also increase. Many households. Of course, not all average annual growth rate of coaches will also be needed by these potential households will road passengers between 1979 and government departments, actually buy a car. 1985 was 22 percent. Road organizations, enterprises, insti• A recent survey of 1,000 high- passenger transport will continue tutions and tourist departments. income households shows that 10 to grow at an average annual rate According to forecasts, a total of to 15 percent of them wish to buy a car. They Uve in big cities or Assembling "Dongfeng" brand trucks which are made by the No. 2 Motor Vehicle around them and in other Plant and the Xinjiang Motor Vehicle Plant. developed areas, ranging from CHEN ZONGLIE specialized production house• holds, cadres, business people to a small minority from the ranks of middle-aged and young workers, staff members and farmers. They want cars for all the usual purposes — for business and household errands, for transport to and from work, and for traveUing. According to the survey, it is estimated that the total number of cars for private use in the century will be 1 to 1.5 million. Given the characteristics of the growth of the economy and particularly of the township enterprises and specialized house• holds, there will be an increasing need for goods vans also. Studies of these rural businesses show that the number of such vans needed will be greater than cars. The people involved say that vans are better suited to the rural economy. One van will be needed for each JULY 27, 1987 15 ARTICLES

800,000 coaches will be needed in THE ABC OF INVESTING IN CHINA (VI) this century. Of these 400,000 will be for highway transport, 200,000 for urban transport and 200,000 Preparations Before Start-up for other purposes. The continuous growth in the volume of highway freight trans• by Our Correspondent Yue Haitao port is bound to be followed by a corresponding growth in the number of heavy-duty lorries f the enterprise in which one and building materials, and the needed. Between 1979 and 1985, invests has the buildings and all delayed delivery of some equip• the volume of highway freight I auxiliary facilities ready, it can ment, it is estimated that the transport registered an average start operation immediately upon construction will be put off for at annual growth rate of 15.5 obtaining the licence. If not, it has least four months. percent, totalling 177 billion to go through a process of capital Shanghai is China's largest kilometres, or 14 percent of the construction. industrial metropoUs with many nation's total volume of freight Shanghai's Yaohua-Pilkington special advantages for investment, transport. It is expected that the Glass Ltd. is so far the largest co• such as fairly well developed volume of highway freight trans• operative project between China industry and commerce, a better port will continue to increase at an and Britain, with a total educated labour force, good average annual rate of 8 to 10 investment of JJSSl 19.51 million. transport facilities and China's percent. By the year 2000 it will be Located on what was a piece of largest seaport. Despite all this, it three to four times greater than in wasteland on the fringe of is plagued with an inadequate 1985. The forecast shows that a Shanghai proper, the entire infrastructure, as are most of total of 7.7 to 8.2 million heavy- project has to be built from China's open coastal cities. In duty lorries will be needed by the scratch — from the power gen• general, all the developed areas in year 2000. erating station and factory China, which are densely popu• According to the forecast, there buildings to the canteen. Accord• lated and have plenty of factories will be 13 to 15 million motor ing to the plan, the construction and mines, face shortages of vehicles in China by the end of this was expected to be completed by energy and raw materials, and century, or 5 to 5.7 times that of May 31 this year and the project to inadequate telecommunications 1985, (which would be equivalent go into operation on September 1. and transport faciUties. to an average annual growth rate Due to problems with the design, In order to avoid many of the of 9.8 to 10.3 percent). Of this, the acute shortages of manpower troubles in capital construction there will be 3 to 4 million cars, 23.1 to 26.7 percent of the total, or The Beijing Yinyan Camera Flash Co. Ltd. established with Hong Kong investment.

6.3 to 8.3 times more than in 1985. XUE CHAO In order to meet the forecasted needs, China must raise funds, rely on its own efforts, import advanced technology from abroad, and expedite the growth of its auto and related industries. Major efforts will be devoted to the development of cars and their mass production. By all estimations, this century will witness a rather important development in the Chinese auto industry, but still greater achieve• ments will' be chalked up in the next. •

16 BEIJING REVIEW, NO. 30 The MD-82 aeroplane, made jointly by the Shanghai Aircraft Manufacturing Plant nnd McDonnell Douglas of the United tates, has been put into service in 911 China.

China's Joint Ventures

The Nantong Soussan International Co. Ltd. a Sino-French joint venture, processes goat skin for export. 1

^^^^^^^^^^^ ' ^

.4 XUE CHAD XUE CHAO The China Otsuka Pharmaceutical Co. Ltd., built with Japanese The Tianjin Otis Elevator Co. Ltd. produces with 90 investment, and its finished products workshop. percent Chinese-made parts.

A workshop at the Chemical Fibre A modern dairy products production technology development Factory jointly built by the Tianjin No. centre run jointly by China and Denmark recently opened in 6 Garment Factory and a Hong Kong Harbin. HUWEI trading company. XUECHAO Tianjin Chengbao Orange Juice Factory An audio-visual class at a training centre run by BP for established with Hong Kong investment is the the joint drilling for offshore oil in South China Sea. first factory to produce high-quality soft drinlts in China's mainland. L r-L \. • Santana limousines being manufactured at the Shanghai Volkswagen Automobile Co. built with FRG investment. ° CHEN ZONGLIE Tionjin Science and Technology Co. and a Singapore company have established the first and only technology research enterprise in China. In the picture is a New Zealander, one of the 25 experts the enterprise invited, from the United States, Nev/ Zealand and Australia, and his wife in their kitchen. XUE CHAO

XUE CHAO A workshop at the Jiali Colour Television Factory involving Hong Kong investment in Shenzhen.

Jin Rong Co. Ltd., a Sino-Japanese joint venture producing radio cassette recorders and developing new technology.

XUE CHAO and to save money, many only move in and install their investors, sxicii as the American equipment after signing their Motors Corp., rely on the original contracts. buildings, te9hnology and workers The land fees and wages for of their Chinese partners. TMs Chinese workers in these develop• reduces the time needed for ment zones are on average about preparation and speeds up the 30 percent lower than in'other recovery of the investment. places. The charges for gas, water, electricity, heat and building are For those needing new factory the same as for state-owned and office buildings, they would enterprises. best go to the special economic zones and the economic and Foreign investors outside the technological development zones special economic zones and in the open coastal cities. The four development zones will pay 5-20 special economic zones of Shen• yuan in land fees and development zhen, Zhuhai, Shantou and charges per square metre each Xiamen have the best infrastruc• year. Those who build their own ture facilities in China. They have facilities need to pay 3 yuan at the adequate transport and tele- most. Enterprises that possess communicatipns as well as a CAI HAIFENG advanced technology and produce secure supply of water, heat and The Wuhan ChangJIang Brewery Is a Joint for export can enjoy, certain electricity. Once agreement is venture with Federai German funds. special treatment. reached on a project, capital Wei Fuhai, mayor of Dalian, construction can start ment zones costs about 100-150 says that preferential treatment is immediately. million yuan per square kilometre. not enough to attract foreign Dalian, Tianjin and the other 12 Dalian and Tianjin have done best investment. Only by putting top- open coastal cities have also been in this regard. class service, nigh efficiency and making great efforts to improve The first of its kind in China, the quality "hardware" on top of fair their investment climate. Since Dalian Economic and Technolog• economic terms could foreign August 1984, the Chinese govern• ical Development Zone covers 20 investors really feel satisfied. ment has approved the establish• square kilometres and is located Last November the Dalian ment of economic and technolog• 33 kilometres from the city centre. development zone set up a foreign- ical development zones in these It has an ample supply of water funded projects promotion centre, cities, which enjoy more or less the and electricity as well as solid which is staffed by the zone's top same preferential treatment as ground (geologically speaking) administrative officials and lead• granted to the special economic and a good climate. By the end of ing members of the various zones. By the end of October 1986, March, the Dalian city govern• departments, and provides com• governments at various levels in ment had invested 340 million prehensive services to overseas China had invested several billion yuan in building an industrial area investors. Recently, members of a yuan in building up the energy, and a residential area over five Sino-US joint venture went to the transport, telecommunications square kilometres. This is development zone to sort out their and public utilities in these equipped with a water supply future water, power and gas development zones. system, a drainage project, gas and supplies. They planned to spend a These zones are similar to the heat supply systems, a power few days going through the export processing zones in other supply project, imported tele• procedures. To their surprise, it Asian countries of the Pacific rim. phone and telegramme facilities, took them only one morning to The difference is that the foreign- apartment buildings for have all papers signed. A Sino- funded enterprises in the Chinese foreign partners, as well as a Japanese joint venture applied to development zones still need to middle school, a primary school have telephones installed. The pay income tax of about 15 and a kindergarten. The resident• work was cqmpleted in three days. percent and customs duties, which ial arid office buildings, a hotel, a Tang Qishun, deputy mayor of nevertheless can be reduced or petrol station and a fire station Dalian and chairman of the exempted, depending on how will be completed before the end of development zone administrative much an enterprise can benefit this year. In addition, two committee, said work involved in China's construction. standard factory buildings (each a similar request would take three The State Economic Com• covering 12,000 square metres) months to complete in Dalian city mission estimates that infrastruc- have been put up in the proper and three weeks in Japan. tural construction in the develop- development zone. Investors need

JULY 27, 1987 21 •i ARTICLES

Cradle of Scientists and Technologists by Our Correspondent ^uangl^h'^)4in

LJN-7" aeroplanes, designed He is also the general manager of relieve angina. Yand manufactured by the Xian the Shenzhen Zhonghua Automo• Altogether in the past 47 years Aircraft Manufacturing Com• bile Corporation. the Beijing Institute of Tech• pany, have flown for ten years The new type of variable speed nology trained more than 30,000 with a good record of perfor• hydroviscous drive regulates the specialists who are now working in mance, safety and reliability. Shao speed and saves energy on blowers all fields of endeavour, making Guobin, president of the aircraft and pumps. According to the tests important contributions to company, is a graduate of the and usage of the machine, a 500- economic construction and the Beijing Institute of Technology. kw pump can save over 700,000 development of astronautics and Xie Guangxuan, a former kwh of electricity a year using the carrier rockets for China. teacher at, and Fan Shihe and new drive. It won a silver medal at Wang Zhiren, graduates of the the 35th Eureka World Inventions Beijing Institute of Technology, Fair held in Brussels, and the are all involved in the Long inventor, Wei Chenguan, who was March-3 carrier rocket project. awarded a Croix de Chevalier, is From Yanan to Beijing Xia is chief designer and Fan and again a graduate and now a Wang his deputies. professor at the Beijing institute. The Beijing Institute of Tech• Peng Shilu, chief engineer of the The electronic dephlogistic and nology grew out of the Yanan Ministry of Nuclear Industry and, pain-killing membrane invented Academy of Natural Sciences. The Hao Yan, deputy commander in by Sun Caomin, also a graduate Shaanxi-Gansu-Ningxia Border charge of the automatic command and now an associate professor at Region where Yanan is located system at a satellite launching site, the Beijing Institute of Tech• was blockaded by the Kuomin- were once students of the same nology, was awarded a gold medal tang troops during the War of institute. at the 35th Eureka World Resistance Against Japan. This The "Zhonghua BS-111," the Invention Fair in Brussels. Sun's caused great difficulties since the first plastic car in the world, went invention, sometimes called a region was then very backward. on display at the Beijing "Chinese membrane" by some Industries were nonexistent and International Fair in July 1986. foreign experts, can be used to paper, cloth and soap had to be Chief researcher for the project. treat mastitis and all kinds of soft shipped in. To counter the Tang Jinsheng, is a graduate of the tissue injuries, accelerate the rate enemies' blockade the Central Beijing Institute of Technology. at which fractures mend and Committee of the Chinese

22 BEIJING REVIEW, NO. 30 Between 1949 and 1985 China had Science and Engineering Education 20,983 science, and 42,449 en• gineering postgraduates (includ• ew China has registered a and engineering or had science ing those trained by the research Nrapid development in higher and engineering departments. institutes). All these graduates education since its founding in They were all in Beijing, Shanghai, have made great contributions to 1949, especially in science and Tianjin and coastal areas such as economic, social, scientific and engineering. At the end of 1986, of Jiangsu and Guangdong pro• technological construction. the 1,054 schools of higher vinces. There was no institute of These colleges and universities learning, 271 were devoted to science and engineering at all in of science and engineering have science and engineering. An Qinghai, Ningxia, Xinjiang, Inner played an important role in additional 45 colleges and univer• Mongolia, Tibet and other remote promoting China's scientific and sities had science and engineering areas. All these places now have technological development. Dur• departments. their own science and engineering ing the Sixth Five-Year Plan institutes or departments. period (1981-85) they won 56 state By the end of 1985, there were In 1947 China had 37,484 prizes for natural sciences, 270 11,760 discipUnes of 823 kinds in students and only 424 postgradu• state invention prizes and 337 the schools of higher learning. Of ates majoring in science and scientific and technological pro• them 3,757 disciplines were in engineering. At the end of 1986 gress prizes. Also during that five- engineering, of 368 kinds, and 884 China had 747,270 science and year period, the colleges and were science disciplines of 125 engineering students, a 21-fold universities under the State kinds. In 1985 China had 344,262 increase over 1947; by the end of Education Commission joined the university teachers, including 1985 it had 87,331 postgraduates scientific and technological re• 96,046 engineering teachers and of science and engineering, a 207- search and concluded 146 con• 79,613 science teachers. fold increase. tracts for scientific and technolog• In 1947, educationally the best Between 1949 and 1986, China ical research projects. They year before nationwide liberation, trained a total of 359,083 science sponsored 75 of them and have China had only 207 schools of graduates and 1,749,443 engineer• gained good results in 154 of these higher learning. Of them, 61 were ing graduates (55.7 times the total research projects. colleges and universities of science for the 20 years before hberation). by Shao JInrong

Communist Party decided to a veteran revolutionary and Japan in the liberated base areas. develop the economy in the border educator, was the founder presi• After the war, the Yanan area by its own efforts. dent of the Yanan academy. Other academy merged with other It was against this background presidents of the academy have colleges in 1945. It moved to that the Yanan Academy of been the late Vice-Premier Li Beijing in 1949 and was renamed Natural Sciences was founded in Fuchun; Chen Ka^ngbai, a chemist the Beijing Institute of Tech• August 1940. Its aim was to train with a German doctorate; and nology in 1951. scientists and technicians for the former Minister of Foreign Trade creative and independent work Li Qiang. On September 21, 1985, the needed by the war effort for the institute celebrated its 45th salvation of the country. The Row upon row of cave anniversary, and a stone laying founding of the Yanan academy dwellings and 30 single-storey ceremony in honour of Xu Teli was financially supported by New houses were built on the mountain was held. Among the guests were Zealander Rewi Alley and his slopes in the southern part of alumni Minister of Light Industry 86-year-old mother. Soong Ching Yanan. On September 1, 1940. Zeng Xianlin; Minister of Metal• Ling, the late honorary president classes started. lurgical Industry Qi Yuanjing; of the country, also gave her Besides physics, chemistry and Vice-Minister of the State Com• support to the academy. Xu Teli*, mechanical engineering depart• mission of the Machinery Industry ments, the Yanan Academy of He Guangyuan; Vice-Minister of Natural Sciences had geology, Astronautics Industry Bao Ke• * Xu Teli (1877-1968) was in France on a rning; Vice-Minister of Electronics work-study programme in 1919 and ran mining and biology departments. schools after his return. He took part in the Graduates played an important Industry Zhang Xuedong; Mini• Long March in 1934 when he was 58 years part in improving the people's ster of Labour and Personnel old, and his writings were published in the living standards and in supporting Zhao Dongwan; Minister of Civil Collected Works of Xu Teli. the War of Resistance Against Affairs Cui Naifu; as well as Li JULY 27, 1987 23 ARTICLES

The institute's library, bulging with books, is equipped with micro-films, audio-visual devices and computers. There is an auditorium, a gymnasium, a sports ground, a swimming pool, a skating rink, a hospital and dormitories. There is also a kindergarten and an affiliated primary school for the teaching staffs children. At present, the entire institute has nearly 1,400 faculty members, of whom 600 are professors and associate professors, and 800 are lecturers, as well as a large number of engineers and technicians working in the laboratories. The 16 departments offer 33 speci• alities and 766 courses. Its 20 research organizations and 60 modern laboratories are equipped with advanced precision appara• tus, including 235 micro• computers. Peng who is now vice-premier of located on the pleasant western Since the 1950s the institute has the State Council, all about 60 edge of Beijing. researched locomotive engineer• years old. They hoped that the The institute covers an area of ing, applied optics, chemical Beijing Institute of Technology 75 hectares with 310,000 square engineering, radar, explosion and will carry forward the Yanan spirit metres of school buildings. It has a safety techniques and mechanical in training scientists for the computer centre, a mixed-media engineering. In order to keep up socialist modernization of our education centre, an affiliated with the new technological country. machinery plant, an electronics revolution, the institute has in Li Qiang, the 4th president of plant and an optical workshop. recent years strengthened its the Yanan academy, says that the academy had many fine traditions, such as seeking truth from facts, Xia Guangxuan (left), chief combining theory with practice, designer of the Long IVIarch-3 criticism and self-criticism, hard carrier rocket, with Fan ShIhe. work and plain living. Great HANG TIAN changes have taken place since Wang Zhiren, deputy designer China opened to the world in of the Long March-3 carrier 1979, said Li Qiang. "But we rocket. HANG TIAN should still carry forward the fine traditions of hard work and plain living and build our country through self-reliance. That com• bination will speed up the modernization drive."

Keeping up With the Times

One of China's key institutions of higher learning, the Beijing Institute of Technology is a comprehensive institute, with science and engineering, manage• ment and liberal arts faculties. It is

24 BEIJING REVIEW, NO. 30 research in such new disciplines as materials science, photoelectric and robot technology. The institute has a total enrolment of 6,000 students. The graduate school has 11 speciahties for doctorate degrees and 37 specialities for master's degrees. A total of 434 courses have been offered for graduate students. There are now 1,300 graduate students enrolled in the institute. In addition, the institute has trained staff sent in by other units and set up 63 correspondence centres in 17 provinces and municipalities in the country. Teachers of the institute have offered a number of courses for the Central TV and Beijing TV universities.

Professor Wang XInyl guiding a student. Reform and Achievements applied mathematics, mechanics train senior technical personnel The former unitary engineering and physics, an industrial manage• who not only master the theory of institute has been changed into a ment department has been set up.. modern industrial design but can comprehensive institution of In 1985 combining engineering also be creative. higher learning. Besides the newly with art an. industrial design The institute has moved from added science departments such as department was established to the training of engineers and

Professor Ma Yonghual (pointing) Inspecting Ms energy saving device for boilers. ARTICLES

technicians to cultivating specia• students have on hand the most The institute has also forged lists with a creative mentality. This up-to-date material. friendly ties and carried out requires that students master basic Since 1978, over 1,500 experts research with universities in the theory, experimental techniques and scholars from tl countries, United States, the Federal Repub• and basic engineering, have including the United States, lic of Germany, Switzerland and organizational skills and be Japan, Britain, France and the Japan. able to carry out research Federal Republic of Germany, independently. They must also have been invited to visit and Apart from completing the learn to use computers and have a lecture at the institute, and a teaching tasks stipulated by the good command of foreign number of foreign professors and state, members of the faculty have languages. experts have become honorary also taken on training specialists In view of the fact that the and advisory professors in the for other departments. In co• development of modem sciences institute. Over 400 teachers and operation with other units they and technology is the product of a graduate students of the institute have undertaken scientific re• marriage of liberal arts with have studied, researched and search tasks, transferred scientific science,students are required to attended symposia abroad. research results, conducted techn• study some history and human• The institute has signed an ical consultancy, acted as advisors ities courses to help activate their agreement on joint graduate for other units in the economic, thinking and cultivate their training with the Technische scientific and managerial fields creative ability. The institute has Universitaet Berlin. The agree• and Have been entrusted by other set up a research institute of ment is that students of the Beijing organizations with the task of humanities and social sciences, Institute of Technology, after negotiating industrial and techn• and noted scholars are invited to taking science courses for one and ical business with representatives give lectures on aesthetics and the a half years at home, should spend of foreign firms. The laboratories science of law. the same amount of time and factories of the institute have The institute has done much to experimenting and writing their also undertaken testing, inspect• combine teaching with research. dissertations in Berlin. They ing and processing for 200 The latest discoveries are in• defend their theses after returning factories and enterprises in the corporated into the teaching, and to China. country. •

FACTS AND FIGURES Sustained Economic Development

by the State Statistical Bureau

ince the beginning of this year compared with the first half of last finished materials continued to Sthe campaign to "increase year, and that for heavy industry grow steadily, at a rate slightly production and practise economy, totalled 246.6 billion yuan, up 14.4 lower than industry as a whole. increase revenue and reduce percent. Light and heavy indus• In the first half of this year the expenditure" has been unfolding tries developed in a balanced way. now of funds embodied in finished throughout the country. Supply Output of commodities such as products in state-owned industrial increased and demand began to colour TV sets, refrigerators, enterprises was accelerated, and ease. PreUminary statistics show washing machines,bicycles, alum• their profits and tax payments that in the first half of this year the inium household goods, beer, rose by 6.5 percent. Labour GNP was 10 percent larger in real chemical fertilizer and mixed productivity in industry was up by terms than in the corresponding fodder increased by a big margin. 6.6 percent over the same period period of last year. Rapid progress was also made in last year. Industry. Total industrial out• the production of exports. The Agriculture. Sales of capital put value in the first six months of total value of industrial products goods in the agricultural sector this year was 492.7 billion yuan, a purchased by foreign trade were worth 35.6 billion yuan this 15 percent increase over the same departments was 34.8 billion year, 25 percent more than the period last year, and 51.6 percent yuan, an increase of 36 percent same period 1 ast year. of this year's plan. The output over the corresponding period last The acreage for summer crops value of light industry came to year. Energy generation, and this year was down by 3.4 million 246.1 bilUon yuan, up 15.6 percent production of raw and semi• mu (1 WM = 0.0667 hectares), and

26 BEIJING REVIEW, NO. 30 there were comparatively more 30 percent over the corresponding projects dropped to some extent, natural disasters. Output of period last year. and construction funds were not summer crops still totalled 90.82 State grain and oil purchases spread out. Some 13.2 billion yuan million tons thanks to improved were high. By the end of June, the were invested in the 187 key field management. This is 2.4 amount of grain purchased by the construction projects designated million tons less than the record state was 7.6 percent more than in by the state during the first half of output of 1986. Real increases in the same period last year, and this year. This is 42 percent of the summer crops were registered in edible oil was 1 percent more. year's planned investment, 10 Henan, Anhui, Hubei, Hunan, Purchases of fresh eggs by state- percent higher than the country's Yunnan, Guangdong and Fujian owned commercial departments annual average fulfilment of provinces, and decreases in and supply and marketing co• capital construction investment. Shandong, Hebei and Shanxi operatives were up 3.1 percent. The amount which went into provinces. The number of pigs purchased by productive projects was 27 billion The rapeseed harvest was 6 these departments fell slightly yuan, 67.1 percent of the total, as million tons this year. Even after compared with the same period against the 61.7 percent of the last year's bumper harvest it was last year. Meat and eggs were in same period last year; investment 270,000 tons (4.7 percent) greater. short supply in a few large cities. in non-productive construction Autumn crops are doing well. Foreign Trade. China's exports dropped. The acreage for autumn grain and were worth US$16.6 bilHon, an A number of construction cotton increased considerably. increase of 24.3 percent over the projects were put into commission Without further serious natural corresponding period last year. in the first half of this year. Newly disasters, a good harvest will be in Imports totalled US$18.6 billion, added production capacity sight. 6.2 percent less than in the same includes 1.18 milhon kw of Cattle and sheep headage is up period last year. The trade deficits installed capacity, the extraction this year, especially of sheep in dropped from US$6.4 bilhon in of 4.48 million tons of crude oil cultivated areas. However, the the first half of 1986 to US$2 and 750,000 tons of coal. number of stock and adult pigs billion this year. The deficit in Reform. By June this year the dropped sUghtly and the number ordinary trade (which excludes proportion of small state-owned of sows plummeted in some aid, grants; imports of Sino- industrial enterprises that had localities. foreign joint ventures, co• carried out management reforms Market. Retail sales of com• operative and wholly foreign- was 37.8 percent, as against 8 modities reached 276.2 billion owned enterprises; processing percent by the end of last year. yuan, up 17.5 percent over the with supplied foreign materials; Parts of large and medium-sized corresponding period last year. and compensatory trade) was only industrial enterprises have im• Sales of consumer goods grew US$100 miUion more. plemented the contract responsi• overall. The non-trade foreign exchange bility system. Over 50 percent of Retail turnover in food was accounts were healthy. Up to June small state-owned commercial 126.3 billion yuan, up 17.7 20, the nation's non-trade income enterprises also implemented the percent. The volume of edible oil was US$1.67 billion more than its system of collective management, retail sales jumped 5.1 percent; non-trade expenditure. leasing and the individual contract vegetables, 7 percent; meat, 14 Investment. In the first half of system while retaining state percent; fresh eggs, 5 percent. this year, the amount of ownership. Most enterprises with Aquatic products, cigarettes, investment in fixed assets in state- new systems already operating wines, sweets, pastries and tinned owned units totalled 59.4 billion performed well. foods also saw higher sales. yuan, 21 percent more than the Problems. Consumption funds Clothing sales were worth 40.3 same period last year. Investment increased too fast. In some places biUion yuan, up 10.1 percent over in capital construction came to there was indiscriminate handing the first half of last year. 40.2 billion yuan, up 19.3 percent. out of bonuses or subsidies in The turnover in the retail trade Investments for technological kind. Investment in capital in household goods stood at 74 transformation increased by 24.8 construction projects outside the billion yuan, up 18 percent over percent, reaching 19.2 billion state plan rose sharply. In the first the same period last year. yuan. Much of this was money six months of this year, the retail Household electrical appliances taken from last year's budget, but sales price index was 6 percent such as colour TV sets, re• installed this year at a cost in fees higher than in the corresponding frigerators and twin-tub washing and building materials which has period last year. Prices for machines sold well. After price risen considerably. vegetables, meat, poultry, eggs adjustment and sales promotion, Space under construction and and aquatic products rose mark• retail sales of tape recorders which the number of construction edly in the larger cities. Real had slowed down for a while rose projects and newly opened income in some families dropped. JULY 27, 1987 27 FROM THE CHINESE PRESS

jointly run by households, the state and collectives. With abund• ant funds, technical skills and Family-run Enterprises in Rural Areas equipment, such units have great vitality and their products find a ready market. "ZHONGGUO HEZUO JINGJI" while others contribute only one 3. Enterprises operated with (Chinese Co-operative Economy) or the other. The unit's income is hired labourers. Such enterprises distributed to the members often involve complex work according to shares or work done processes and need modern skills. hina's rural family-run enter• after paying taxes and keeping Therefore, they usually employ Cprises can be divided into three enough funds for reproduction. some technicians and helpers. types: The last form of co-operative is (May 23. 1987) 1. Businesses run by single families. Most of these units consist of father and sons or brothers, depending on family composition. They mainly process Grain Problem Remains to Be Solved agricultural and sideline products or produce traditional handicrafts with their special skills. Within the annual per-capita grain ration "DILI ZHISHI" units, the work is clearly divided averaging less than 200 kg. among the members, and a system (Knowledge of Geography) China's average annual grain of rewards and penalties has been output per capita is below the established. With flexible methods ince the founding of the world level. For instance, despite of management and independent S People's Republic of China in an excellent harvest in 1984, the production, the members have 1949, the government has adopted country's per-capita grain output high enthusiasm and a strong a series of measures to alleviate the averaged only 397 kg, 41.5 kg less sense of responsibility. Moreover, grain problem. The measures, than the world average. such units need little investment which include centralized pur• Chinese people's average an• but yield quick returns and can chasing and distribution, ration• nual grain consumption is also easily change direction when their ing and bringing the urban below the world level. For products are unmarketable. How• population under control, light• example, annual grain consump• ever, because they are private ened the pressure on the state but tion in the United States averages enterprises, family-run units lack had not solved the grain problem 800 kg per capita, 183 kg of which access to up-to-date information fundamentally. After the Third is eaten directly by people, 595 kg and so find it hard to compete on Plenary Session of the 11th by animals; the Soviet Union the market. This restricts their Central Committee of the Party in consumes 845 kg per capita, 218 ability to expand production. 1978, the situation took a turn for kg directly by people and 448 kg as the better. With the implement• fodder for animals; while Japan 2. Co-operatives. These units ation of correct economic.policies consumes 493 kg per capita, 218 combine aspects of collectives in rural areas, there was so much kg directly and 188 as fodder. with pronounced features of grain in some parts of the country Direct consumption accounts for private enterprises. They tend to that it was difficult to sell and 42.3 percent and fodder for 42.9 be loosely organized and unstable. transport. This created the false percent of world grain consump• There are three forms: First, there impression that China had solved tion. But in China direct are units jointly established by its grain problem. consumption accounts for 75 relatives. Members enjoy equality Actually, the basis of China's percent and fodder for only 16 and mutual benefit and decisions grain production is still weak and percent. are made through democratic yields remain low, although in If Chinese people's food discussions. Payment is based on recent years they have had their patterns change a little, grain piecework or time worked. A ups and downs. China has the consumption would rise greatly. second form of co-operative is set capacity to produce more than 400 For example, if grain consump• up by several households. In such million tons of grain a year and tion in all other parts of the units, the separate households has basically solved the problem country rose to the average level in generally pool their labour, of feeding its 1 billion people. But Beijing, Tianjin and Shanghai, technical skills, equipment and several tens of millions of people where the annual per-capita funds. Some households may in outlying areas are still living consumption averages 450 kg (150 invest both funds and labour, below the poverty line. Their kg consumed directly), the

28 BEIJING REVIEW, NO. 30 country would need an additional was difficult to sell grain in some 50 million tons of grain a year. areas during the past two years. Therefore, we must not jump to Raising grain production must the conclusion that China has remain a priority. solved its grain problem because it (No. 6, 1987)

International Studies More Than 200 Million Wear Glasses (Formerly known as Journal of International Studies) A quarterly in Chinese ational activities. The survey "RENMIN RIBAO" Contents of Issue No. 3 1987 (People's Daily, Overseas Edition) showed that poor eyesight affects about 60 percent of senior middle Treasure and Further Develop the school students, 40 percent of Friendly Relations Between middle school students and 20 China and Japan — In Com• hina produced 30 million pairs percent of primary school pupils. memoration of the 50th Anni• versary of the July 7th C of glasses last year, second So many people need glasses only to the United States. The Lugouqiao Incident—Zhang that shop assistants can't attend to number reflects China's huge Wenjin them all. Moreover, China does population. According to a recent The Taiwan Authorities Have no survey, about 210 million people not have the capacity to produce Right to Sue in Japan's Courts in China wear glasses. Of these, the quantity of glasses needed. To — A Comment on the Kokario one third live in urban areas. deal with this problem, the Case — Shen Jianming government decided that during Old people and students are the period of the Seventh Five- The US Trade Deficit and the among the main customers. About Year Plan (1986-90), the output of Western Economy—Xie Yao 120 million of those who wear glasses should increase at an A Brief Discussion of the Present glasses suffer from short• average annual rate of 10 percent. US Trade Deficit and the sightedness, far-sightedness or Western Economy — Xie Yao presbyopia (far-sightedness as a With the steady rise in living The Twenty Years of the ASEAN result of old age). standards, many people want Co-operation — Wei Qiang Doctors and teachers say there glasses that are beautiful as well as Changes in the US-Nicaraguan are many reasons why students functional. These people are Relations and Their Impact develop poor vision. The main one willing to spend a lot of money on — Xiao Yu is that they are often overloaded glasses considered suitable for The European Free Trade Asso• with lessons and homework and their profession, age, shape of face ciation— Feng Jianwu don't have enough time for and colour of skin. The Present State and Future of sleeping, sports and other recre- (May 21, 1987) Federal Germany's Social De• mocratic Party—Zhu Weige A Visit to China's Old Friend, Mr. Gerhard Schroder— Wang Shu

China's Foreign Relations: A Chronicle Published by World Affairs (Shijie Zhishi) Publishing House. Subscribed from China Inter• national Book Trading Corpora• tion (Guoji Shudian). Annual rate: RMB3.20 (at RMB 0.80 per copy) plus postage. • BUSINESSARADE

Astor Hotel Opens in Tianjin

ie Astor Hotel, jointly man• raged by the Tianjin General Tourist Co. and the Zapata Group of Hong Kong went into operation on July 11 after renovation. The hotel involves a total investment of US$10 million and a co-operation period of 15 years. According to its general man• ager Zhang Zhixian, the hotel had a 90.25 percent occupancy rate and logged a profit of US$1.6 million in its trial operation in 1986. As Tianjin opens wider, the hotel looks brighter. The hotel is in the downtown commercial and financial district. It retains its original classical British style and has 240 well- furnished suites. •

Great Wall Hotel

Promotes Business XUE CHAD Assembling elevators at the TianJIn Otis elevator Factory, a SIno-US Joint venture. hallenged by other new hotels, Cthe Great Wall Sheraton Hotel As part of its drive to improve import insurance (exports up by in Beijing has been looking to its its marketing, the hotel will 30 percent, imports by 13 percent). marketing. This year the hotel sent participate in the international The premiums on shipping, groups of people to the United tourist awards conference in international airliners and oil States, Japan and the Federal Chicago in September and in the drilling insurance dropped, ac• Republic of Germany to improve international tourist fair in cording to Wei Runquan, general its public relations there. December in London. The hotel manager of the company's A Sino-US joint venture, the will also develop its publicity work overseas business department. hotel went into operation in 1984 in northern Europe and Australia and its clients in the early days to expand its business in the next The international market is were mainly from the United two years. good, said Wei. The increase in States. Later this changed as its by Yao Jianguo premiums is due to improved marketing in Japan and Europe exports. The decrease in shipping strengthened. insurance is due to a fall in the According to Max Wilhelm, a price of ships. As accidents manager of the hotel, the US$129 Million involving foreign ships have percentage of the US visitors was decreased, the company cut the 58 percent in the first half of this in Premiums cost of its insurance correspond• year, and 70 percent in the past, ingly. The decrease in petroleum while that of Europeans increased n the first five months of this exploitation insurance income was from 15 percent to 30 percent. He I year, the People's Insurance caused by the fall in oil prices, and calculated that the hotel's income Co. of China received US$129 the drop in air insurance was due in the first six months of this year million in premiums from insur• to an insurance price cut by the was greater than the same period ance covering foreign concerns, a British reinsurers. last year and that the second half 7.52 percent increase over the Almost all enterprises involving of this year will see a further same period last year. Of this, foreign investment in China have increase. US$75 million were for export and applied for insurance. In the first

30 BEIJING REVIEW, NO. 30 half of this year, the Guangdong Most of the foreign-funded foreign companies to react and Daya Bay Nuclear Power Co. and enterprises in Tianjin yielded good conducted seismological survey of the Pingshuo Coal Mine, both economic results. According to the Zhujiang River basin. When it involving foreign investment, 1986 statistics, their sales totalled failed to win the bid, the company applied for insurance. They 527 million yuan (about US$140 withdrew. ensured properties to the value of million); and profits 105 miUion Speaking at the opening US$1 billion and US$500 million yuan (about US$28 million); the ceremony of the new office, Mr. respectively, making them the return rate on investment was 19.9 Paul J. Hoenmas, president of the biggest cUents with foreign percent. Foreign exchange earn• company's exploitation and pro• interests of the Chinese insurance ings were registered at US$43 duction department, said that his market. • million, so the foreign exchange company is not disappointed in accounts of the enterprises were the exploitation of Chinese balanced or better. offshore oil resources. China Exports Foreign-funded enterprises en• Although offshore oil and gas gaging in industrial production drilling has its risks, the invest• Rubber Products have done relatively better. The ment is well worthwhile in China value of their exports was which has some of the best hongnan Rubber Plant in US$25.35 milUon, averaging a 24 oilfields in the world. The Chinese Yichang City, Hubei Province Z percent rate of return on offshore oil corporation will sell began to export rubber products investment; 26 joint ventures some of its oil data in September, in the 1970s. Its transmission V- which started operation over two and Mobil will buy them for study belts, cloth-inserted rubber hoses years ago registered-a 32.4 percent and analysis. and industrial bakelite plates find rate of return. a ready market in Southeast Asia, According to Mr. Hoenmas, Most of the 13 foreign-invested Africa and the Middle East Mobil is also interested in enterprises now in deficits are in because of their good quality. mainland oil exploitation in south the service trades. Their problems and northwest China. The factory, one of China's are due to poor management and Mobil entered China before the major rubber manufacturers, has losses in adjusting the interest rate founding of the People's Republic in the last few years imported of Renminbi. in 1949. It sold a number of oil advanced equipment and instru• Li Ruihuan, mayor of Tianjin, products at that time, including ments from the Federal Republic said, "In order to promote Sino- kerosene and kerosene lamps. of Germany, the United States, foreign joint ventures, Tianjin will In 1973, the company again Britain and Japan. revise and improve unreasonable began dealing with China. It sold At present the factory produces or incomplete policies and regul• phosphate, polyethlene and resin about 500 products in over 4,000 ations." He added that in line with as well as distilling dewaxing and types. The factory's transmission the city's conditions, it will also catalyst technologies. It also V-belts, cloth-inserted rubber seek to extend contract periods to bought oil products from China. hoses and eight other products help foreign-funded enterprises by Yao Jianguo have won the state or provincial earn a profit. high-quality product prizes. by Yao Jianguo A Pakistan businessman has ordered 360,000 AM of transmis• Trade News in Brief sion V-belts in the last two years. Mobil Oil Corp. • The Shanghai Hudong Ship• • Returns to China yard will build a 62,000-ton-oil tanker for a shipping company in Foreign-Funded Chile. This has brought the s the price of petrol has risen number of shipbuilding contracts Firms ivial

JULY 27, 1987 31 CULTURE/SCIENCE

Dragon-Boat Race Offers Something for All

rums were beating; spindrifts Dflew. On the wide river, dragon boats forged ahead Hke dragon- flies skimming the surface of the water. People on the long, narrow boats paddled at top speed, singing work songs to synchronize their movements. On the banks, crowds of joyful spectators, holding colourful banners and umbrellas, cheered the paddlers on. What a sight! This was the scene at the dragon-boat races held in Leshah, Sichuan Province to celebrate the traditional Chinese Dragon Boat Festival, which falls on the fifth day of the fifth lunar month annually (May 31, this year). The festival dates back to that A dragon-boat race in l«siiari, Sichuan Province. HUANG tUKUl day in 278 BC, when Qu Yuan, a great Chinese patriot and poet, a spirit—a big golden carp. She attention of some monsters, but committed suicide. Qu threw put his corpse on her back and not all. Then the people got the himself in a river because his swam towards his home town. On idea of decorating their boats like talents and concern for his country her way, she met some river dragons. (According to legen^, the and people were rejected by rulers monsters. She struggled to drive dragon is the king of all aquatic of Chu State during the Warring them away, but failed. Seeing her animals.) People on the dragon States Period (475-221 BC), who plight, people on the bank boats paddled and shouted and believed false charges against Qu dropped some rice wrapped with finally all the monsters were lodged by treacherous officials. It reed leaves (called zongzi today) frightened off. Since that time, is said that Qu's patriotism moved into the river. This diverted the Chinese people throughout the country eat zongzi and race dragon boats that day to show "Snatching ducl

32 BEIJING REVIEW, NO. 30 to take part in dragon-boat races. At the Leshan festival, women participants in colourful costumes on more than 20 dragon boats threw themselves into the race with determination and gusto. The spectators cheered the paddlers on, and applauded enthusiasti• cally when a dragon boat finished first in the 1,000-metre event with a time of five minutes and five seconds. Foreign business people at the Leshan trade and economic fair. HUANG LUKUI Competition in the men's events was more intense. Boat racing fair. Business volume at the trade colours from red to yellow to blue. requires physical strength, con• fair reached 1,100 million yuan The mouth opened wide, juggling summate boating skills and good and contracts were signed for a with seven colourful moving balls. team work. The prizes always go number of economic and co• It seemed like the dragon's to the teams that can work as one. operative projects. Products at the momentum could overturn a river The festival reached a climax fair included motors, household or the sea. with "snatching ducks." On a electrical appliances, silk, tea, The most interesting dragon section of the river several medicine and other local products. was made of vegetables. Its eyes hundred metres wide and nearly The event drew 15,000 foreign and were tomatoes; its nose mustard 1,000 metres long, more than Chinese businessmen. tubers, its horns bitter gourds and 2,000 ducks were driven into the The festival and trade fair began its beard cowpeas. The 17-metre- river. About a hundred dragon with a parade of dragon boats long dragon, with a head 3 metres boats and fishing boats vied with featuring plastic decorations. high, was constructed from 56 each other to seize the ducks. The People on the bank saw dragon kinds of vegetables weighing 350 ducks, scared out of their wits, fled boats decorated with exquisite kg. Nine farmers spent three days in all directions. Some would raise ancient Chinese buildings, scenes putting the unique beast together. their head on sensing a movement from classic Chinese dramas, Many foreign and Chinese and then suddenly dive into deep dancers and acrobats, and other spectators had their photos taken water. Experienced players artistic creations. A burst of sound with the vegetable dragon. squatted at the head of their boats. from one boat drew the attention In recent years, dragon-boat When a chance came, they of the spectators. On the boat they racing has become popular in immediately dived into the water, saw 30 young peasants, each other countries. Since 1984 China, and quickly reappeared holding holding a bamboo folk pipe—an the home of the dragon boat, has one or two ducks, drawing cheers ancient musical instrument that is sponsored national dragon-boat from the spectators. Sometimes, very popular in the Leshan area. races several times. A nationwide several boats dashed for one duck, Arranged at the head of the boat dragon-boat association has been resulting in a boat crash. The duck were five pipes, each 2.5 metres founded. escaped in the confusion. long; the other 25 instruments Not satisfied with only watch• were 1.2 metres in length. This At the seven-day Leshan ing, some spectators joined the kind of pipe has a smooth sound festival which drew 100,000 game. Some women who failed to and vigorous tone quality. Using spectators, more than 200 dragon snatch any ducks decided to seize different volumes of breath, boats, fishing boats and other some from the boats that were various mouth shapes and tongue boats participated in races and driving the ducks into the water. movements, the player can competitions for the best decor• Male competitors were annoyed produce rich local tunes. ations. Eight teams from foreign and amused at the same time. countries took part in the races. Watching the boats was like Other events at the festival Night fell, but it was as bright as watching a parade of dragons: included displays of canoeing and day in the ancient city. There were some dragon heads were spurting yachting. Colourful lanterns were lights everywhere—in homes, on names; some dragons seemed to floated on the river and heated the colourfuUy decorated be sailing in the sky; some were balloons were released from the gateways and the floating dragon painted silver, gold or other boats. boats. The festival ended with a gorgeous colours. There was a 45- display of fireworks, leaving a metre-long dragon decorated with Women's dragon-boat races wonderful and unforgettable im• 60 coloured lanterns. As its long drew much interest. In the old pression in the people's minds. body moved gently, it changed days, women were not permitted by Hong Lanxing

JULY 27, 1987 33 1 'Shanghai and Me'

We are holding a "Shanghai and Me" essay contest with the aim of strengthening understanding and friendship between foreigners and the people of Shanghai, and in the hope of helping the local authorities make the largest metropolis in China more attractive by giving them your suggestions. All foreigners, overseas Chirlese and compatriots from Taiwan, Hong Kong and Macao, who have been to Shanghai or are staying in the city for whatever reason, are eligible. Your essay can come in any form — your impressions of or experiences in Shanghai, a person, a family you are familiar with or single event you have encountered. Your comments or suggestions are also welcome: on the city's reforms and how to open it to the outside world, on its investment environment, its urban reconstruction, economic development or other topics. Detailed reports on special subjects related to Shanghai or the texts of speeches, published or not, of no more than 5,000 words, are encouraged. Entries may be submitted in Chinese, English, Japanese, French or German. Any style or form is permissible. All essays will be judged by the "Shanghai and Me" panel which is composed of personnel from several organizations including China Daily, Shanghai Branch, and Beijing Review, Shanghai Office. The best 10 entries will receive Excellent Essay Awards and 20 other finalists will get Encouragement Awards. Each entrant will receive a souvenir. A collection of the best essays will be compiled in a book and some of the articles will be published in China Daily, Beijing Review and other newspapers and magazines or broadcast by local radio stations. All entries must be sent in before October 31,1987 by the postmark. Print on all the entries your full name and detailed address and send it to:

"Shanghai and Me" Office

c/o China Daily, Shanghai Branch Sponsors: 2/F 1 380 Fuxing Road (C) Beijing Review, Shanghai Shanghai, China Office; and China Daily, Shanghai Branch

34 BEIJING REVIEW, NO. 30 ART PACE

Rlverview.

Lacquer Paintings by Qiao Shiguang Qiao Shiguang, born in 1937 in guantao County, Shandong Province, now teaches at the Central Academy of Arts and Crafts. Qiao, whose favourite medium is lacquer, is much influenced by lacquerware techniques and his works are distinctive in their rustic simplicity.

A Thai Girl.

Tibetan Woman With Cattle. CHINA Just Off the Press OCI ECONOMY

An Outline History (1949-1984)

Incorporating the results of research by well-known Chinese economists, this work is a first attempt to give an account of the development of China's socialist economy. It includes many previously unpublished details of events and figures which have emerged through the sifting of a large quantity of historical documents. Readers interested in China, especially students of China's economic history, will find the book invaluable. The outline history is divided into five parts:

Rehabilitation (1949-52); The First Five-year Plan (1953-57); The "Great Leap Forward" and Readjustment (1958-65); The "Cultural Revolution" (1966-76); A New Plan for Socialist Modernization (1976-84).

Tracing the course of developments Published by Beijing Review through the ups and downs of each Printed in the People's REpublic of China period, the authors sum up basic achievements and analyze shortcom• Distributed by China International Book ings and mistakes in each period since Trading Corp. (Guoji Shudian), P.O. 1949. Box 399, Beijing, China The book is also available in French, Address: 21 Chegongzhuang Rd. West,^ German, Japanese and Spanish. Beijing, China Tel: 8022023 Cable: CIBTC BEIJING Telex: 22496 CIBTC CN