A CHINESE WEEKLY OF NEWS

} Democracy in Guangzhou A Large Pipe Smoking and chimneys cause air pollution.

They are a blight which should be eliminated. By Cai Chengzhong [Review HIGHLIGHTS OF THE WEEK

; VOL. 30. NO, 32 AUGUST 10. ]987 ' CONTENTS Division of Power: The Nub of Political Reform NOTES FROM THE EDITORS 4 I Di^•tsioI1 of Power Begins • The long-standing confusion of powers and functions ' With Hnlcrpriscs between Party and government has been the main cause of j EVENTS/TRENDS 5-9 bureaucratism. To solve this problem in industry and to meet China ("elobrates A\rmy"s the needs of economic reform, a new leadership system — the I 60ih .'Anniversary director responsibility sysem- was introduced into enterpr• Pl,A Promotes Overseas ises. Experience over the last few years shows that the new I Contacts system is effective in rationalizing the relations between Party, AIDS; Wilt U Spread in administration and workers' congresses and allows for quick I China'.' decision-making, effective leadership and high efficiency. The I Chinese Teens Join US Space problems which remain will be solved in the forthcoming Project political reform (p. 4). ; CAAC Refornis in the Works I Weekly Chronicle (July

\L 10-13 I \1) Calhnii tor North-South Year of the Factory Director I Co-operation OAL': Summit Tackles Common • Nineteen eighty-seven has been designated the year when the Problems director responsibility system will be fully implemented. This Kampuchea: Barrier ()b^^ructs issue carries a review of the development of the idea and an Political Solution analysis of the system (p. 14), as well as a study of how the Arms Talks; Gorbache\s the system is working in the Beijing Wool Mill, one of the first Ball Rolling enterprises to institute it (p. 17). Director Responsibility %steim in Full Swing 14 In th0 Wake of Director's New Power 17 Qaidam Basin on the Qinghai-Tlbetan Promoting Democracy In Guangzhou Plateau (Pictorial) - Centrefold Democracy Booms in Guangzhou 22 Indian Newspapers Spread Lies • Democracy with Chinese characteristics is being vigorously About Ttijet 2$ developed in Guangzhou. The role of the people's congress has Finance Ministry's Measures for the been enhanced and regular appraisal of cadres instituted. City implementation of Preferential leaders have become more accessible to the people through Tax Terms 26 suggestion drives, television programmes and newspaper interim Provisions on columns, (p. 22). Proportion of a Sino- Foreign Joint Venture's Roistered Capital and Total Investment 2i Indian Newspapers Cannot Lie Away Facts FROM THE CHINESE PRESS 28-29 BUSINESS/TRADE 30-31 • Some Indian newspapers are ballyhooing that China's Tibet TOURISM 32 has been independent in the past and thai the McMahon Line is CHINA CALENDAR 33 a legal border. But history gives the lie to their assertions, made LETTERS 34 out of ignorance if not expansionist ambitions (p. 25). COVER: Manager (lefl) and deputy manager Yanshan Pelrochcmical Company in Beijing are in discussion.

Genefal Editorial Offee lek 893860 Sabscfiptior pri<»s (1 year); USA US$22.00 Engliih &epoftmen< Tel; 890951-i46 BEUING REVIEW Atittrafla A.$22.Q0 Canada Can.$21.(» Distributed by China InteriMrt'mita) »P«* 24 Bolwonjhuang Road, Seijing Trading Corporation iGUOJI SHUOIAN) New Zealand NZ.$30.00 The People's Republic of China P.O. Box 399, Betfing, Chlno UK £12.00 •i NOTES FROM THE EDITORS

Division of Power Begins With Enterprises by Jin Qi eparating the responsibility of phenomenon is connected to the functions and powers of the Sthe Party and government to influence of feudal autocracy in director (manager) of state-owned eliminate the over-concentration China's own history and also to industrial enterprises, the Party of poVer in Party committees is at the tradition of a high degree of organization and the workers' the heart of the reform of China's concentration of power in the congress (its standing body being political structure. A blueprint for hands of individual leaders of the the trade union): this is expected to be worked out at Communist Parties of various • The factory director is the the 13th National Congress of the countries at the time of the legal representative of the enter• Communist Party of China Communist International." prise, directs enterprise produc• (CPC), scheduled for this October. "The long-standing failure to tion, exercises unified leadership The concept of this reform was understand this adequately," over management and operation set forth in Deng Xiaoping's Deng stressed, "was one import• and assumes full responsibility; speech "On the Reform of the ant cause of the 'cultural • The focus of the Party System of Party and State revolution,' and we paid a heavy organization's work in the enter• Leadership," delivered on August priee for it. There should be no prise must be shifted to supervis• 18,1980 (See Beijing Review, issue further delay in finding a solution ing and ensuring the implement• No. 32, August 1986). The speech, to this problem." ation of the guidelines and policies of the Party and state, carrying out which was adopted by the Political In recent years, the leadership Bureau of the Central Committee ideological and political work, system was first introduced in the and functioning as a fighting on August 31 that year, became the enterprises to meet the urgent force, and helping the Party guide to the reform. needs of economic reform and members to give play to their Deng had said, "Over- economic invigoration. This exemplary role; concentration of power means means "the director (manager) • The system of workers' inappropriate and indiscriminate responsibility system" was adop• congresses and other democratic concentration of all power in ted to replace the original "system management systems must be Party committees in the name of of director responsibility under established in every enterprise sp strengthening centralized Party the leadership of the Party that the trade union and workers' leadership. Moreover, the power committee." representatives can carry out their of the Party committees them• Established in 1956, the former duties of examining and discussing selves is often in the hands of a few system stipulated, "All major the enterprise's major decisions, secretaries, especially the first issues in an enterprise must be supervising administrative leaders secretaries, who direct and decide decided through Party committee and safeguarding the workers' everything. Thus 'centralized discussion, while the factory legal rights and interests. Party leadership' often turns into director is responsible for direct• All this provides for a leadership by individuals. This ing an enterprise's production and reasonable division of work problem exists, in varying degrees, administration." Over-concen• between Party and administration in leading bodies at all levels tration of power in the Party and for the unity of power and throughout the country. committee separated responsi• responsibility. It facilitates a "Over-concentration of power bility from power, and created production and management in the hands of an individual or of many difficulties for the director system headed by the factory a few people means most who found it hard to carry out his director and enables an enterprise fuctionaries have no decision• duties and in the end nobody was to function as an economic entity. making power at all, while the few really responsible. It also guarantees the democratic who do are overburdened. This The CPC Central Committee's rights of the workers, who are inevitably leads to bureaucratism Decision on Reform of the after all the masters of sociaUst and various mistakes, and it Economic Structure adopted in enterprises. inevitably impairs the democratic October 1984 called for the The power and responsibility of life, collective leadership, democ• institution of a director responsi• the factory director have thus been ratic centralism and the division of bility system. In September 1986, greatly expanded. The state labour with individual responsi• the Central Committee and the entrusts the factory director with bility in the Party and government State Council issued three sets of the power to make management organizations at all levels. This regulations, clearly defining the decisions, direct production, ap-

4 BEIJING REVIEW, NO. 32 • EVENTS/TRENDS point and dismiss administrative China Celebrates personnel, reward and punish workers. At the same time, it requires him or her to keep a Army's 60th Anniversary sociahst orientation in manage• ment, implement the guidelines and policies of the Party and state he scorching and sultry weather espcially since 1980, when Deng and observe laws and regulations. Thas slowed down most activity Xiaoping was selected as chair• The director is responsible for in China. In fact, everything seems man of the CMC, the PLA has operating the enterprise well and to have been listless lately except made outstanding achievements in achieving the goals set for his or the celebrations to mark the 60th military training, political work, her term of office. Under the new anniversary of the founding of the defence science and research, and system, the factory director can Chinese People's Liberation Army logistics, as well as contributing to count on the collaboration and (PLA). The events started in the the success of reforms and to support of the Party organization early July and the pitch of activity socialist construction. The and workers' congress. Of course, kept heightening along with the achievements were made under the director must also rely on them temperature. the Party's leadership and with the and accept their supervision. In the buildup to the an• help of people's governments at The readjustment in the func• niversary, the PLA dominated TV various levels, he said. tions and powers of the Party and movie screens, as well as A total of 500 Pl-A combat committee in an enterprise will newspapers and magazines. A 12- heroes attended the meeting and free it from the day-to-day part TV series, entitled Let History received badges and certificates production and management Speak to the Future, recounts the of honour. It was the largest duties and enable it to concentrate history of the army, from its birth meeting of its kind held to date on building up grass-roots Party on August 1, 1927, up to the and one of only two in China's organizations, and play a greater present. The series, aimed especi• history. The first was held in 1950. supervisory role. This will even• ally at the younger generation, tually improve and strengthen, not tells the PLA story in a more vivid The anniversary festivities weaken, the Party's leadership. and objective way than similar reached a climax on the eve of the By the end of June, the new programmes in the past. Mao Army Day, August 1, when a enterprise leadership system had Zedong, for instance, is shown not grand celebration was held in be«h instituted in over 36,000 as the only founder of the PLA — Beijing with more than 4,000 state-owned industrial enterprises. as he was during the "cultural participants. China's top five It is expected to be adopted in all revolution" (1966-76) — but as leaders attended the meeting, key enterprises before the end of one of the founders. Also, he is indicating the significance of the this year. Experience shows that treated as a real man instead of an anniversary and the importance of the new system is effective in omnipotent god. He is painted as the defence affairs in the country's rationalizing the relations between "a man who taught," "a graduate modernization drive. the Party committee, the directors' of a teachers' college," "a man Yang Shangkun,a member of administration and the workers' who liked to write poems," instead the Political Bureau of the Chinese congress, and conducive to of "great supreme commander, Communist Party Central Com• creating a production and man• leader, teacher and helmsman," as mittee and vice-chairman of the agement system capable of quick he was once called. CMC, spoke at the meeting. After decision-making, with effective As part of the anniversary recalling the 60-year history of the leadership and high efficiency. activities, the PLA opened a army, he said, "Our country and There are, however, some national meeting of combat heroes nation have changed a lot in the aspects of the question which in Beijing July 27-31 to promote past 60 years. These historical require further exploration. These patriotism, revolutionary heroism transformations are victories that include raising the competence of and the struggle to safeguard and have been won through the Party's the director and guaranteeing an build socialist China. leadership and the people's enterprise's decision-making The meeting, according to Yang struggle. At the same time, the power. This latter question is Dezhi, a member of the Central victories are closely related to bound up with the role of the Military Commission (CMC) and the founding, development and leading bodies of the Party and chief of the General Staff, was heroic fight of the army." Yang government organizations at all to review the PLA's achieve• continued, "In peaceful times, we levels and awaits solution during ments over the past decades still can say, 'without a people's the forthcoming political and promote efforts to modernize army, the people have nothing'." restructuring. • the army and China as a whole. He was referring to Mao's In the past, Yang said. description of the importance of

AUGUST to, 1987 5 • EVENTS/TRENDS the army in 1945, during the war. which aims at transforming the about 3,000 people. Among those Yang said the army's moderni• whole park into a military park, delegations, 90 were headed by zation is a process of continuous by Li Haibo and Dai Gang PLA leaders and senior officers. reform and modernization cannot During the same period, the PLA succeed without the reforms. He hosted more than 400 military reiterated Deng's call on the PLA Promotes delegations or groups from five anniversary: "Strive to build our Overseas Contacts continents. army into a strong, modernized, Two Chinese naval vessels paid regularized and revolutionary he Chinese People's Liberation port visits to Pakistan, Bangladesh one." TArmy (PLA) will start sending and Sri Lanka at the end of 1985. Elsewhere in China, Shanghai, promising young officers to study They were the first Chinese naval the country's largest city, changed in foreign academies this year, vessels to visit foreign countries the traditional routine of Army says a senior official of the foreign since the founding of the People's Day by opening a military film affairs department of the Chinese Republic of China in 1949, the retrospective on July 25. Ministry of National Defence. official said. "We'll represent and extol, "This is another important step The PLA has become more through the lively art form of film, taken by the PLA in its overseas active in exchanges with foreign the remarkable historic contri• contacts, aimed at training senior armies since the country started to butions the Pl.A forces have military commanders," he said on implement the policy of reform made," said Liu Zhenyuan, vice- July 27. and opening up to the outside mayor of Shanghai and also chief An extensive exchange of visits world in 1978, he said. The PLA of the organizing committee of the by senior leaders of the PLA and has contacts with the armed forces film festival, entitled Ode to Our foreign armed forces, and frequent of 85 countries, and China Army Flag. exchanges of technical personnel maintains military attache offices The festival, the first of its kind are the two outstanding features in more than 60 countries, while 45 in China, aims to promote of the Chinese army's foreign countries have military attaches in familiarity and mutual under• contacts in recent years, the China. standing between the PLA and the official said. "The basic guiding "These broad contacts have people and to educate people in ideology for our contacts with the helped extricate our army from its their revolutionary traditions. armed forces of foreign countries former isolation and promote The retrospective will continue is to promote mutual understand• mutual understanding between until August 25. More than 60 ing and friendly relations, main• our army and the armed forces of military features and 20 documen• tain world peace and facilitate the foreign countries, creating sound tary films will be shown at 1.300 modernization of the Chinese conditions for friendly co• viewing centres in and around the army." operation and professional ex• city. More than 100 public The PLA has furthered its co• changes in various fields," he said. cinemas and theatres will show operation and friendship with the Besides fostering friendly rel• only military films — mostly the armed forces of socialist countries, ations, the Chinese army has latest ones— from August I to 15. including the DemocraUc People's expanded its technical exchanges An estimated total audience of 10 Republic of Korea, Romania and with foreign armed forces. More million is expected during the Yugoslavia, and has maintained than 1,000 experts, scholars and fesfival. Shanghai-based PLA frequent contacts with the forces professionals from the PLA went troops will get a chance to see at of China's friendly neighbours, on study tours, took refresher least two films a week. such as Pakistan and Thailand. courses and attended seminars Another feature of the Army The PLA has built co-operation abroad last year, and more than Day celebrations in Shanghai was with the armed forces of 700 specialists went abroad in the the opening to the public of a developing countries in .Asia, first half of this year, the official garden in Tianshan Park called the said. National Defence Garden. The Africa and Latin America on the garden will serve as a mini- basis of mutual understanding. At The PLA has also invited military museum. Defence Mini• the same time, he said, it has also foreign military experts to lecture ster Zhang Aiping did the maintained good relations with in China. These exchanges have calligraphy on the signs for ,the the armed forces of developed helped the PLA get to know the garden and the National Defence countries and has had frequent new trends among foreign armies Education Hall in it. The mini- exchanges in military technology and acquaint itself with new museum consists of the exhibition with some of them. military techniques. hall and an open plot where arms The Chinese army has sent more The PL.4 gives what military are on display. The garden is the than 200 delegations abroad in the assistance it can to countries and first phase of a larger project past eight years, consisting of people suffering from invasion 6 BEIJI.NG REVIEW, NO. 32 and oppression as part of its Although the Chinese cases A law enacted in December foreign contacts, he said. "In the seem negligible in number among 1986 sfipulates that foreigners past, wc provided many African 1 million world AIDS victims, intending to stay in China one year fighters for freedom with mihtary "Few being found does not mean or longer must have proof of a assistance in their struggle for few exist," said an epidemic negative AIDS test. And all national independence. Since they prevention official. Tests are made foreigners living in China and all won independence, we have been only on people who are the Chinese returning from a long stay supplying them with equipment likeliest to have been exposed to abroad are supposed to take an and training professionals for the virus. To date, about 7,000 AIDS test. But the rules have not their national defence. This is our tests have been conducted in been rigidly applied and few- international obligation." China. people have acttialK taken the The PLA's exchanges and co• While most Chinese think of test. An American AIDS victim operation with foreign armies will AIDS as irrelevant to them, more who was recently evacuated from continue to expand, he said. For and more city residents are China by a US military plane instance, the Hungarian People's starting to talk about it as a hazy knew he had AIDS when he came Army Art Ensemble's China threat. One Beijing college to China, according to his parents. performance tour in May this year graduate said he thinks AIDS will With the lax enforcement of the was a breakthrough. Until the inevitably spread in China, as the new law, experts warn that some tour, exchanges between the country opens its door wider to the Chinese youth who have irrespon• Chinese army and the armed world and social attitudes sible sex relations with foreigners forces of Hungary and other East change . But Public Health may become inlected vvith AIDS European countries had been Minister Chen Minzhang argues and cause an epidemic in China. suspended for 20 years. The PLA's that such a chance is slim, since The experts call for ideological contacts with the armies of these homosexuality and casual sexual and sex education for young countries can be expected to relations are both against the law people and public education about gradually increase, the official and contrary to Chinese morality. the causes and development of said. • AIDS at home and abroad, The three Zhejiang AIDS "Grave concern is more helpful AIDS: Will It patients are under quaranfine and than blind optimism," one of the are being treated, and their experts said. Spread in China? relatives and others who may be infected are being checked by the hree lives have been lost in province's health organizations, Chinese Teens Join TChina as a result of the deadly the minister said. And the state acquired immune deficiency syn• has spent 500,000 yuan (about US Space Project drome (AIDS). And other AIDS US$135,000) on AIDS research. victims have been found in Later this year, China will be able ontainers carrying two Zhejiang Province and possibly in to produce the testing reagent in CChinese students' experiments Beijing. The cases have evoked quantity. The country's efforts to will hitch a ride on the US space concern from both the Chinese combat AIDS stress prevention, in shuttle in 1988 for scientific tests in government and people in general a bid to eHminate all the possible outer space. about the new threat that is sources, of an epidemic. Two 17-year olds are the first iuiunting the world. Chinese students to participate in The first AIDS related death In 1984, a state epidemic the US Get Away Special project. recorded in China was of an prevention official said, the Their experiments involve collect• Argentine tourist, who died in government pushed through a ing space dust and solidifying Beijing in 1985. A Chinese- strict law to halt the importation liquid mixtures. American residing in Fujian of blood products. At the same The experiments were chosen Province died last February after time a massive screening of from 7,000 proposals mailed in to returning from New York. And imported blood products already the China Gel Away Special the third death involved a in the country was conducted. But contest by students throughout haemophilia patient in Zhejiang, small quantities of unapproved the country. The contest was who received an injection of products have entered China organized jointly by the Chinese imported blood products. Three through private mail or have been Society of Astronautics and the other haemophiliacs there have brought in by visitors. The American Association for the also fallen victim to AIDS, while epidemic prevention authorities Promodon of Science in China. sources say some people in Beijing are urging people with such On July 23, State Councillor have responded positively to products to hand them over for Zhang Jingfu and other Chinese antibody tests. examinaUon. officials awarded medals and

AUGUST 10, 1987 7 m EVENTS/TRENDS

worked to raise profits, their wages and bonuses stayed the same. Employees did not try to please passengers in general, but only their relatives or friends. Flight attendants wore sour faces, flights took off late, luggage was lost and strangest of all—while crowds of people waited outside ticket offices, more than 20 percent of the seats on domestic flights and about 40 percent on international flights were vacant. The responsibility system to be implemented in seven CAAC administration sub-bureaus (the Xinjiang sub-bureau will not be reformed at this time) means that seven companies will vie with one QIAN ZHIRONG Young Chinese and American Get Amy Special experimenters exchange experience another to woo passengers. The while visiting the Shahe ground satellite station In Beijing. companies will pay a fixed percentage of their profits to the state, so the more they make, the prizes to 29 students from 13 other countries have been carried more they get to keep. To make Chinese provinces and municip• out. Altogether, 147 experiments still more money, the companies alities for their designs. Zhang from 21 countries have been can expand by opening restau• said, "The Chinese government conducted on the shuttles. • rants, hotels and other services, will give full support to such said Ke. But they will not be activities by Chinese students. I allowed to raise prices for tickets hope Chinese students will make CAAC Reforms or freight services. These will be further efforts in scientific set by the central administration experiment." In the Works bureau. The two winners — Wang assengers who travel on CAAC has 164 passenger Nianqing from the No. 14 middle PChina's national airline will planes. The planes are divided school in Lanzhou, Gansu enjoy better service after the end of among the eight sub-bureaus. Province, and Tian Chunliang next year when the Civil Aviation Since 1983, when CAAC began to from the No. 107 middle school in Administration of China (CAAC) post a profit, the airline has been Shenyang, Liaoning Province — is divided into three parts — increasing its service at an annual will tour the United States in 1988 administration bureau, aviation rate of more than 30 percent. In and watch the launching of the company and airport authority, the first half of this year, CAAC space shuttle with their experi• says Ke Deming, CAAC's deputy laurvched service on 12 new ments on it. general director. routes — five international and Two containers with the Before reforms were introduced seven domestic. In the same students' experiments will be early this year, initially at CAAC's period, passenger volume rose by located in section 614 of the southwestern sub-bureau in 34.5 percent and cargo volume by shuttle. The American Associ• Chengdu, the administration 37.8 percent. The airline also ation for the Promotion of Science bureau was not only responsible added 10 passenger planes to its in China leased the section and for policy-making, but also played fleets including Boeing 747s and presented it to the Chinese Society a large role in the management of 767, BAE-146S and Y-7s. And of Astronautics as a gift. airports and flights. Higher-ups there are plans to acquire a further who were divorced from day-to• 13 planes. The US Get Away Special day operations blindly handed CAAC will open one more project is sponsored by the down directions to subordinates international route—Beijing- National Aeronautics and Space who gradually got into the habit of Shanghai-Vancouver-Toronto — Administration. During the previ• blindly following them. Emplyees and three more domestic air ous 24 space shuttle flights, 73 lost their initiative and even took routes this year. The domestic experiments designed by students advantage of loopholes to do less routes are Beijing-Shantou, from the United States, Federal than their job because, according Beijing-Haikou and Urumqi- Germany, Japan, Britain and to Ke, no matter how hard they Dunhuang.

X BEIJING REVIEW, NO. 32 Commenting on service quality, Weekly Chronicle Esperanto, Xinhua reports. Ke said that although CAAC's (July 27-August 2) Esperanto is a language inven• service standard cannot be ted 100 years ago by L.L. compared with the first-rate Thai POLITICAL Zamenhof, a Polish oculist. About airline, it is not as bad as some July 31 10 million people in more than 90 people say. He said there are • On the eve of the 60th countries are thought to have technical reasons for some of the anniversary of the founding of the mastered the language. problems such as luggage con• People's Liberation Army, Party veyer belts that often go wrong and government leaders and July 28 and luggage slips that tend to fall representatives of people's • The first group of 137 students off. Also, the flights attendants organizations all over the country has completed post-graduate pro• speak poor English. sent their hearty greetings and gramme at Huanghe (Yellow Other Chinese airlines are also expressed their grafitude to the River) University in Zhengzhou, expanding. China United Airlines, officers and soldiers of the PLA, Henan Province, Xinhua reports. the largest of the country's 17 local Renmin Rihao (People's Daly) Set' up in 1984 with financial airlines, carried more than 100.000 reports. donations by overseas Chinese passengers in the first half of 1987, In the past few days, leaders of and grants from the provincial 2.5 times the figure for the same the local governments of Beijing. government, the university began 1986 period. China United,which Tianjin and Shanghai visited PLA to admit students in post-graduate uses air force planes and airports, barracks, army hospitals, and programmes on American studies. operates 24 domestic air routes, of military institutes and colleges to English, computer soft-ware and which 16 started this year. Zhao express their interest in the work, economic management in 1985. Genbo, an official of the airline training and living conditions of said he hopes that the current the officers and soldiers and to CAAC reform will lead to the solicit suggestions and opinions SOCIAL opening of CAAC airports to the from them about the local local airlines' planes. If the government work. July 31 airports are opened to compe• • According to the Central tition, Zhao said, bureaucracy will ECONOMIC Meteorological Observatory, a bci reduced and service standards heat wave has hit a vast area of raised. July 27 north China since July 23, with an by Zhao Zonglu • Another important oil- average maximum temperature of producing region could be located up to 35 degrees Centigrade in the in a depression of the Beibu Gulf, daytime, a Xinhua report says. which flows into the South China Affected by a subtropical high- Sea, an official of the China pressure zone, it is the most wide• National Offshore Oil Corpor• spread and longest-lasting heat ation says. wave in north China so far this An oil well producing 944,000 summer, but it is not abnormal, cubic metres of natural gas, 1,320 the observatory said. barrels of condensate oil and 1,484 barrels of crude oil daily has • The All-China Women's recently been tapped in the region. Federation called on government departments and enterprises to July 28 end discrimination against female • The Aitay Prefecture in the college graudates, Xinhua reports. Xinjiang Uygur Autonomous At" Beijing University, more Region will get US$17.59 million than 100 female graduates were in aid from the World Food not able to find jobs. Eighty Programme for its animal hus• percent of the female graduates in bandry development scheme. the department of journalism at the China People's University CULTURAL returned to university because they could not find jobs. Even at July 27 the Central Institute of Finance • The Ministry of Posts and and Banking, where the number of Telecommunications issued a graduates always falls short of commemorative stamp to mark demand, three female graduates the centenary of the birth of are unemployed.

AUGUST 10. 1987 9 m INTERNATIONAL MWMMMMMWMMli

UNCTAD mercial banks and the debtor countries to ease the burden of Calling for North-South Co-operation payments by giving debtors a payment-free grace period or The seventh session of the United Nations Conference on extending payments over a Trade and Development produced some positive results that longer time. The Group of 77 has said that debts could help revitalize the world economy. cannot be serviced and repaid under present conditions and without sustained economic devel• ie recent session of the United The latest International Monetary opment. Therefore, the group TNations Conference on Trade Fund statistics show that the said, the international community and Development (UNCTAD) accumulated external debt of the should help implement a gradual ended on August 3 with the developing countries reached repayment policy based on adoption of a document entitled US$1,041 trillion by the end of uninterrupted economic 'The Final Act of UNCTAD 7." 1986. The ratio between external development. The document calls on both debt and export earnings averaged developed and developing coun• 167 percent. Many delegates Debt reduction refers to cuts in tries to adapt their national argued that the worsening world interest rates to ease the debt policies to the international economic environment, including burden. Reports say half of all environment. low commodity prices and trade external debt incurred since 1980 With the objective of revitaliz• restrictions, is the major cause of is a result of higher interest rates. ing economic growth, develop• debt problems. They called on Cancellation means reducing or ment and international trade, the developed countries to increase eliminating debts, while through 26-day session focused on four official development assistance conversion, creditors turn debts major topics: resource develop• and open their markets to exports into direct investment so as to ment, commodities, international from developing countries to promote economic development. create the conditions to improve trade and the least-developed Commodities were another the debt situation. countries. major issue under discussion. The The meeting began on July 9. Delegates suggested four ways core of this issue is prices for After a week-long general debate, out of the debt quagmire. They primary products. Most develop• four committees were established called on creditor countries to ing nations depend on the to deal with the four main issues. reschedule, reduce or cancel debts, production of raw materials for On the debt problem, representa• or convert them into investments. more than 30 percent of their gross tives from third world countries Rescheduling involves creditor domestic product (GDP). But called for concerted international countries working with intern• commodity prices on the world efforts to ease their debt loads. ational financial institutions, com• market have fallen to a 50-year low because of various factors, The seventh session of UNCTAD. including reduced demands and growing protectionism. Develop• ing countries demanded that IINCTAD take effective measures to stabilize commodity prices. One major achievement during the session was the signing of Common Commodity Fund by the Soviet Union, which became the 94th country to join the fund. The fund was launched by UNCTAD in 1980 as a means to shield the developing countries from export losses caused declin• ing raw material prices. Ratific• ation by the Soviet Union of the fund agreement would bring the fund's total percentage of directly contributed capital to 65.26 percent, only 1.4 percent short of the required two-thirds.

BEIJING REVIEW. NO. 32 The problems of the least world development lies in the modities, initiated by UNCTAD developed countries were also establishment of a new and in 1976. The agreement aims to discussed. According to the UN equitable international economic stabilize commodity prices definition, these are countries with order, Tian said. through the establishment of a a per-capita GDP under US$100, The conference also urged those common fund, and various less than 10 percent of GDP developed countries that have not international commodity attributable to manufacturing, fully observed the UNCTAD agreements. and a literacy rate among adults of resolufion on reducing, reschedul• The conference renewed a 12- less than 20 percent. The number ing and cancelling the third world year-old commitment required of of least developed countries has debt to fulfil their commitments. developed countries to halt increased from 21 in 1971 to 40 at But the conference failed to agree protectionism. present, and their economic on a demand by some developing While urging developed coun• situation has been steadily de• countries that a global strategy to tries to give special treatment and teriorating in the 1980s. To cover all debtor countries should favour trade with landlocked and improve the situation, the con• be formulated. Instead, the final island countries, the conference ference called on the developed document stressed dealing with also stressed the importance of countries to fulfil the official problems according to the indiv• trade liberahzation in a range of development assistance target of idual circumstances of each products including manufactured 0.15 percent GNP for the least country. and semi-manufactured goods developed countries or to double A consensus was also reached and tropical products. the figure if they fail to meet the on commodities. The conference target. reiterated the legality of the by Li Changjiu and As a developing country, China intergrated agreement for com- Zhang Jiansheng firmly stands with the third world and advocates more North-South co-operation OAU for global economic recovery. China's delegate to the session, Vice-Premier Tian Jiyun, pointed Summit Tackles Common Problems out that the global slowdown in economic growth, which has hit the third world in particular, is the The 23rd summit conference of the Organization of African result of "inequitable North- Unity condemned the South African regime for its apartheid South economic relations." He policy and adopted a declaration on Africa's external said today's world economic indebtedness, as well as a number of other documents. situation is characterized by increasing interdependence, and third world development is support for the frontline states becoming increasingly vital to the and liberation movements in economic growth of industrialized Southern Africa that are in the countries and a revitalized world fore of the struggle against economy. But the proliferation of apartheid. protectionism has reduced exports During the discussions, the state and slashed the price of primary and government leaders stressed products that third world coun• the need for Africa to take tries depend on. And while political and moral measures to set revenues of the developing an example for the world in the countries dwindle, -their debts are implementation of sanctions, soaring. For the first time since while taking into account the World War II, there is a net specific conditions of the frontline outflow of money from develop• Zambian President Kenneth Kaunda is unanimously elected chairman of the states. ing countries to the developed 23rd OAU summit. The summit passed resolufions ones, Tian noled. on the Chad-Libya dispute over Only prosperous developing frican leaders wound up their Aouzou strip — occupied by countries can provide a market for Athree-day summit in Addis Libyan troops for the past 13 the capital, technology and Ababa on July 30 by renewing the years — and on the need to products from developed coun• call for comprehensive and accelerate the formation of tries. Therefore, the fundamental mandatory sanctions against African Economic Community. solution to the problem of third South Africa and reiterating their The meeting also decided to hold

AUGUST 10. 1987 II m INTERNATIONAL

an Organization of African Unity provide US$45.6 billion in Addressing the closing session, (OAU) special economic summit assistance for its recovery pro• OAU Chairman and Zambian in Addis Ababa next month to gramme. But the help was not President Kenneth Kaunda said discuss economic issues affecting forthcoming and African coun• the summit agreed on the need for tiie continent, particularly tries remain. net exporters of the OAU to continue seeking ways strategies to ease the debt burden capital. The summit issued a to resolve the continent's pro• of African countries. declaration on Africa's external blems. "Africa must remain During the disastrous three- indebtedness which drew the united. It is the only way to solve year drought, many African attention of the international the problems facing us," he countries reformed or adjusted community to the need to improve declared. He also expressed their economic development African economies to enable the confidence that all the decisions of policies. An OAU summit in 1985 countries to service their external the summit will be implemented. formulated the African Priority debt. by Chang Qing Programme for Economic Recov• ery. Under this programme, priority is given to agriculture, and KAMPUCHEA investment in agriculture is to account for 20 to 25 percent of national resources in the annual Barrier Obstructs Political Solution budgets of African countries. Last year, overall agricultural output in Africa increased by 3 percent, with The third international meeting on Kampuchea ended recently cereal production estimated at in Bangkok. Delegates pointed out that Viet Nam is still the 77.4 million tons, about 6 percent main obstacle to a political solution in Kampuchea. more than in 1985. Ft was the first time in the past 15 years in Africa that the food supply increased at a faster rate than the population. bout 300 delegates from more These statements are deliberately Meanwhile, Africa's growing Athan 30 nations met on July 25- misleading. The Soviet Union has indebtedness, coupled with declin• 26 in Thailand to seek a political not changed its position on ing commodity prices, is endan• solution to the Kampuchean Kampuchea and Viet Nam. is gering the recovery programme in problem. Delegates noted that the talking about a political solii^^pn some regions. In 1986 the United people of Kampuchea have only to confuse world opinion. Nations held a special General suffered great disasters since Assembly meeting on the critical Viet Nam occupied their country Chinese representative Ling economic situation in Africa and nine years ago. An early end to the Qing said in his speech at the adopted the UN Programme of war would not only restore the meeting that Viet Nam's state• Action for Economic Recovery right of self-determination to the ments abo"ut its readiness to and Development in Africa (1986- Kampuchean people but would withdraw its troops and seek a 90). But the African countries also contribute to peace and political solution in Kampuchea have been disappointed at the stability in Asia and the world. are empty promises made under response of the developed coun• The meeting adopted a resolution international pressure. It is well- tries and international financial which reiterated support for the known the Viet Nam's so-called institutions, which they say have United Nations' resolutions which withdrawal of troops from not translated their political call for a total withdrawal of Kampuchea every year is nothing commitment into concrete as• Vietnamese troops from Kampu• but the relief of its forces. Viet sistance by increasing the net chea and democratic elections Nam's real intention is to establish financial flow to Africa and supervised by the UN to set up an de facto rule over Kampuchea, improving the global economic independent, non-aligned and Ling said. Khieu Samphan, vice- environment for the continent's neutral Kampuchea. chairman of the Coalition Gov• development. Soviet leaders have recently said ernment of Democratic Kampu• they are ready to solve the chea (CGDK) and the person in Africa is burdened with foreign Kampuchean question politically. charge of foreign affairs, said Viet debts totalling US$200 billion. In This seemingly suggests they have Nam has no intention of 1986 Africa countries paid out become more fiexible on the withdrawing its troops from US$14 billion in debt payVnents matter. Viet Nam has also said Kampuchea in 1990, 2000 or even and interest. The OAU asked the that in light of new developments, after that. The Vietnamese will advanced countries and intern• it is willing to withdraw and seek a insist on establishing an "Indo- ational financial institutions to political solution in Kampuchea. chinese Federation" and imple-

12 BEIJING REVIEW. NO. 32 menting a strategy of regional community must step up political the weapons has also posed hegemonism, he said. and economic pressure on Viet difficulties. The US side proposed Observers consider that the key Nam to support the Kampuchean that the Soviets act first because to a political solution in people in their fight. Chinese they have more of the weapons, Kampuchea is the withdrawal of President Li Xiannian recently while the Soviet side insisted on Vietnamese troops, while the reiterated to Democratic Kampu• simultaneous action. The inten• concrete measures to be taken are chean President Norodom Sih• tion of the United States to move outlined in the UN resolutions on anouk that the Chinese govern• land-based cruise missiles to the issue and an eight-point ment and people will continue to warships patrolling the European proposal put forward by the firmly support the CGDK's eight- coast was also opposed by the CGDK in March 1986. Viet Nam point proposal and the Kampu• Soviets. has shown no sign of any chean people's struggle aginst Viet The Soviet Union's acceptance increasing flexibility on either the Nam. If all the justice-upholding of the global double zero option resolutions or the proposal. The nations and peoples of the world has given an impetus to the Kampuchean people are at a unite behind the Kampuchean stalemated arms talks because it complicated and difficult stage in people, a fair solution the will greatly simplify verification their political and military strug• Kampuchean question will be for both sides and end the gle against Viet Nam. The people realized. wrangling over the site of the of the world and the international by Xin Wen remaining 100 INFs. But the 72 Pershing-1A short- range missiles in Federal Ger• many, which have been a major headache in previous arms talks, ARMS TALKS are emerging as a last obstacle to an agreement. The Pershing-1 As Gorbachev Keeps the Ball Rolling belong to Bonn, but their nuclear warheads are controlled by Washington. The Soviets have If the hurdle of Pershing-lAs in Federal Germany can be stressed that the Pershing-1A missiles of the Federal Germany cleared, the dream of cutting medium- and short-range must be included in the prospec• missiles to the bone could come true. tive agreement. Kampelman de• clared that the United States would reject any treaty that includes the removal of the oviet leader Mikhail Gorba• suggestion. The chief US nego• missiles. Schev said on July 22 that his tiator at the Geneva talks. Max country favours dismantling all Kampelman, said, "It eliminates a Arms control experts do not medium- and short-range nuclear number of problems in the way of rule out the possibility of missiles in Europe and Asia — the an arms control treaty long sought compromise by the West. De• so-called global double zero by the United States." ployed in the 1970s, the Pershing- option. To waste no time, the 1 As have been in active service for Soviet delegate at the arms talks in Since the arms talks reopened 15 years and will be out of service Geneva formally tabled a pro• when the Soviet Union dropped its in 1989. It is still undecided posal based on this stand the next insistence on trying space weapons whether they will be replaced. day. The Soviets are optimistic to the INF package in February Since the double zero option is to about the possibility of a Soviet- last year, the negotiations have come into effect in five years, if all US summit in the near future, stumbled on blocks put up by the goes smoothly, a compromise which would lead to the signing of Soviets and Americans. In re• could be struck if no replacement an arms control agreement. sponse to an earlier US initiative is named for the missiles. The Although somewhat taken by on global double zero, the Soviet Reagan administration, just turn• surprise, the Western press praised Union insisted that the two ing the corner in the Irangate the Soviet offer, saying that it countries retain 100 warheads on crisis, might think that an removes the biggest obstacle to medium-range missiles outside agreement on arms control is just reaching an agreement on eli• Europe. Washington agreed, but what it needs. And if such an minating the superpowers' in- the Soviets could not bear the site agreement could be reached and terrriediate nuclear forces (INF) chosen by the United States for its implemented, it would be warmly globally. The United States was 100 INF—Alaska. applauded. also pleased by Gorbachev's The timetable for dismantling by Zhang Yunwen

AUGUST 10. 1987 -13 ARTICLES

Director Responsibility System in Full Swing Director responsibiiity system wiii be fuliy implemented this year. In the future, it is the director who will be the legal representative of an enterprise, decides on production and management and be answerable to the state, the enterprise and the workforce.

by Gao Qinglin

he Chinese government has breaks the mould which has themselves will be fmancially Tdecided that 1987 will feature a dictated that the Party committee rewarded. Those who do worse determined effort to invigorate the secretary is chief leader of an will be paid commensurately. 400,000 state-owned industrial enterprise. Under the new system enterprises. deputy directors within a factory The problem which has been and middle-level administrative Party Committee's Role dogging this issue — who should personnel will all be appointed or be held ultimately responsible for removed by the factory director. The director responsibility an enterprise, the factory director This breaks the traditional power system combines economic and or the Party committee secretary of the factory's Party committee to political structural reforms, for — has finally been solved, and the appoint and transfer cadres. the role of the Party committee director responsibility system is will change in the process of giving due to be fully implemented this The factory director will have the director production responsi• year. Already the director respon• full responsibility for making bility. The Party committee will sibility system has been instituted decisions, directing production concentrate on supervising the in over 30,000 Chinese enterprises. and recruiting personnel. A implementation of principles factory director will be paid two to and policies, on Party construc• four times more than an ordinary tion, and on the ideological and Powers of Factory Director worker, directors who distinguish political work of the enterprise.

In the second half of 1986 the s CPC Central Committee and the State Council jointly issued three LU Mingling (first rigiit), director of the Shanghai No. 2 Radio Factory, conducting an regulations and a circular on the impromptu survey in a shop. ZHANG LIUREN state-owned industrial enterprises. These regulations are the frame• work for the system: the factory director takes responsibility under the democratic supervision of the enterprise's Party committee and the workers congress. The Enter• prise Law which will soon be enacted stipulates that enterprises must institute the factory director responsibility system. It is the factory director, not the Party committee secretary, who will be the representative of the enterprise's legal person, leading the enterprise. The factory director will decide on production and management, and will also be answerable to the state, the enterprise and the workforce. This

14 BEIJING REVIEW. NO. 32 carrying out the director responsi• bility system on a trial basis. The conclusion drawn in the recent document on the basis of experiments in the two cities says that the Party is the political organization of the working class, but not the administrative and production organization; the Party should exercise leadership over ideological and political work, and the implementation of policies and principles, but not direct production and manage• ment.

Strengthened Powers

WANG JIAN Zhao Zikun (left), director of the Dalian Hongqi Machinery Plant, being gWen a Experiments in various parts of demonstration of the assembly of imported equipment. the country have shown that with the implementation of the director responsibility system, enterprises In 1956 the system ofhaving the of the management of a factory have quick access to management factory director under the leader• and disadvantageous to the and information; administrative ship of the Party committee began consolidation of the Party's work decisions can be made quickly; to be widespread. At that time the in the factory. He urged that the production can be easily directed; factory director and deputy system, which made a distinction and higher work efficiency has directors were responsible to the between Party leadership and been attained. A case in point is Party committee, which had all the enterprise management, should be the Beijing Cashmere Sweater production and management dissolved as quickly as possible. Plant, which has in the past two powers. All affairs of an Deng also suggested that the years turned out 52 new products enterprise, big or small, were to be system where the factory director with 469 designs and colours, ten discussed by the Party committee assumes responsibility under the times more than the combined and approved by the Party leadership of a management figures for the two years prior to secretary. The factory director had committee (for a factory), a board the implementation of the Sirector limited directorial powers and the of directors (for a company) or a responsibility system. Last year Party committee had no time to joint committee (for an economic the plant manufactured more than attend to its own construction and association) should be tried out at 30,000 cashmere sweaters, and the the political and ideological work selected units. This was tried, and supply of its products fell short of of the staff. it was found that there was a lot of demand. One member of the staff resistance to it and often the Party said: "One person is needed to be During the ten chaotic years of committee kept its powers. in charge of a family; even of 1,000 the "cultural revolution" (1966- Deng Xiaoping brought this members." 76), the factory revolutionary problem up again in 1983, and According to statistics of the committee and Party committee Peng Zhen, chairman of the NPC State Economic Commission, practised a system of "unified Standing Committee, was entrus• over 95 percent of the enterprises leadership" which often led to ted with the task of putting the that have adopted the director leadership and managerial confu• experiment together. He organi• responsibility system have reaped sion. Since the Third Plenary zed an industrial enterprise law economic rewards. Session of the 11 th Party Central study group and visited eastern Committee held in 1978, the and northeastern China in early factory director has been taking 1984 to make on-the-spot investi• Supervision on responsibility again under the gations. In May 1984, the CPC leadership of the Party committee. Central Committee and the State The director responsibility sys• Since 1980, Chinese leader Council issued a draft enterprise tem does not mean that the Deng Xiaoping has been com• law and decided that state-owned factory director has the final say plaining that this system is enterprises in Dalian and Chang- on everything. Experiments in the detrimental to the modernization zhou should take the lead in past two years have yielded a series

AUGUST 10, 1987 15 I m ARTTCLES

of systems for important decision• making. The three recently issued regulations provide for a manage• ment committee to assist factory directors in making important decisions. This committee must include representatives from the enterprises' Party, Youth League and trade union organizations, the chief engineer, the chief accountant, and representatives elected by the workers congress. The factory director is to be the director of the management committee. Important problems in the operation and management of an enterprise must be decided on by the factory director after cousultation with the manage• ment committee. If the Party committee has any objection to DAI JIMING Fu Haozhou (second left), director of the Haiyan No.2 Garment IMIil, ZheJIang the decisions made by the factory Province, informing himself about market trends at a saies exhibition. director, it has the right to report the problem to the higher Machine Plant tried this system. It state-owned enterprises. They authorities. In this way, decision• convened the workers congress account for perhaps 30 percent of making errors on the part of the three times in a year to formulate the workforce in some enterprises. factory director can be dis• the enterprise's goals, and The problem of how to arrange for couraged and rectified. The examine their implementation. these people to work for the systent also gives an organiz• Every delegate is given the factory implementation of the director ational framework for co• director's work report on which to responsibility system without ordinating relations between the base their discussion. In 1986 the hindering it remains. The Pen^pu various interests. workers congress of the plant Machinery Plant in Shanghai To ensure against a few factory organized five inspection groups simply reduced the staff of .its directors, who are absorbed in the to supervise the progress of the Party committee. There are no immediate interests of the factory, plant's goals in operation and full-time Party committee secre• neglecting the long-term interests welfare and the implementation of taries in some small state-owned during their term of office, the workers' proposals. enterprises in Jiangmen city of enterprises in China have also Under the factory director Guangdong Province. But the experimented with the "director "auditing system," when the successful handling of this pro• (manager) goal responsibility factory director leaves his or her blem depends ultimately on the system." In this system careful post, an "economic responsibility political structural reform now assessment is made of the auditing" is carried out. This under deliberation. achievements of the directors in auditing checks whether the The issue of allegiance is still their terms of office in the plant's financial transactions are being debated. Does the factory following areas: the output value, all legal, whether the books director represent the state or the the number of products manu• balance, and whether the plant enterprise, or both at the same factured, the products' quality, makes a profit or is in the red. This time? There are other questions technical improvement in the auditing system has been im• too. How to define the relation• enterprise, technology imports plemented in some localities and ship between the powers and the and the development of new will be spread more widely this obligations of the factory director? products, personnel training, the year. Should the decision-making development of intellectual re• power be separated from the sources, and the improvement in management power? It is still the well-being and living stan• Outstanding Problems unclear how to reconcile the dards of the staff members. The director's right to employ Party committee, the trade union personnel and Party's leadership and the workers congress of an There is a huge force of people over cadres. These problems enterprise do the supervision. whose job is political work and remain to be elucidated in theory The Shenyang Heavy-Duty who staff the Party committees in and solved in practice. •

16 BEIJING REVIEW, NO. 32 In the Wake of Director's New Power

Changes have taken place In the Beijing Wool Mill following the Introduction In July 1984 of the director responsibility system. To find out how this factory—one of the first to try the system—has fared, our correspondent talked to the factory's Party committee secretary, the trade union chairman and, of course, the director.

by Our Correspondent Han Baocheng

efore the director acquired the Bdecision-making power in managing the wool mill, it was led by the Party committee. All decisions on production and management had to be submitted to the Party committee for discussion. Since all the members of the committee, except for the factory director, were Party or trade union leaders not directly involved in production and ignorant production and marketing matters, the committee often found it difficult to make proper decisions and find good solutions to production problems. *rhe Party committee followed a majority decision policy which neutralized the director if he was in the minority. Zhou Wenkal (second right) and Zhang Heyu (second left) wKh trade union cadres.

Director's Power and Responsibilities product mix, the arrangements for cadres and nominate candidates large projects, or the use of funds. for the posts of deputy directors, First the director makes pro• chief engineer and chief account• While the enterprise had no posals. The deputy directors will ant, traditional standards for autonomy, following the state then organize feasibility studies choosing cadres still hold sway. mandatory plan, the drawbacks of and draft plans. Their reports are The Party committee, which used the system were not clear. As an submitted to the factory manage• to be in charge of personnel, tends independent socialist commodity ment committee for discussion. to stress loyalty and reliability in producer, however, the mill's The committee is made up of the selecting cadres. Zhou says he policy makers are required to director, chief engineer, chief prefers political integrity, ability respond quickly to market accountant. Party committee and initiative. changes. Director Zhou Wenkai secretary, trade union chairman Zhou often consults the Party says: "Now I can decide, in line and workers' representatives. committee secretary before nomi• with the market, the kind of Zhou says some questions are nating cadres, and the candidates products we make. Sometimes I solved in one sitting while others are appointed only after the ask the chief engineer to make are decided upon only after personnel department has looked prompt decisions in his talks with repeated discussions. foreign business representatives." into them. Zhou says, "I do not Changes in personnel are insist on my nomination if Of course, the director does not always contentious. Although someone recommended by others make hasty decisions on import• formally the director has the compares favourably with mine. ant questions such as changes in power to appoint middle-level But 1 refuse to give up on those I

AUGUST 10, 1987 17 Qaidam Basin on the Qinghai-Tibetan Plateau The Qaidam Basin, 240,000 square kilometres in area, is located on the Qinghai-Tibetan Plateau. It is known for its beautiful scenery and rich resources, both agricultural and mineral. So far 34 kinds of mineral reserves have been verified. Qaidam, which used to be sparsely populated, now supports over 290,000 people, and a dozen chemical and industrial enterprises, including some producing petroleum and asbestos. Various state farms have also been set up.

• n g Breeding freshwater fish in Keluke Lake which is 2,800 metres above sea level.

The Goimud hydroelectric power station.

Watermelon in Qaidam Basin where wheat, peas, rape and other vegetables also flourish. (Photos by FAN RUJUN) •I ARTICLES

members should realize that an enterprise is not a political organization but an economic entity. It has the status of a legal person and needs a legal person as a representative. But the Party committee secretary. cannot take up the role, only the factory director is fit for it. The new system has divided the work of the Party leadership and the manage• ment, and linked the director's responsibilities with his power. Second, a clear understanding of the changes in the status and role of the Party organization must be reached. The focus must shift from handling everyday administrative affairs to supervis• ing the implementation of the A workshop at the Beijing Wool Mill. HAN BAOCHENG principles and policies of the Party and state, assisting the factory director, and improving the think most suitable." Party Committee's committee's own work. The managing deputy director Changed Role Third, ideological education is is a university graduate in his 30s. not hot air. It should be linked to He is quick to pick up on market the realities of production and trends, but his appointment gave Zhang Heyu, the present Party reform and take varied forms. In rise to some controversy. Some committee secretary, is seen as a the latter half of last year the felt he was young and unreliable, democratic person and has and moreover, he is not a Party member. Zhou backed him and suggested he work on probation. The young man proved himself and was accepted. Zhou says his power now is not small, and to wield that power properly the director must en• hance his sense of democracy and be good at pooling the wisdom of the masses. He thinks it is essential to establish a number of consultation systems. All import• ant decisions in the mill must be first submitted to the factory management committee. More routine issues are discussed at a weekly office meeting; a Party- administration joint meeting is held once a fortnight; and a in the mill's clinic. HAN BAOCHENG workers' congress meeting is held every six months. The director regularly reports on his work to worked well with the factory quahty of the mill's products the Party, committee and the director. He feels that with the began to deteriorate. At the workers' congress. In addition, it introduction of the director director's suggestion, the manage• is routine for the director, the responsibility system, some tra• ment committee decided to launch Party committee secretary and the ditional practices of the Party a quality competition in the mill. chairman of the trade union to committee must be changed. First, The Party committee started meet every day. he says, the Party committee special courses for the mill's 400

20 BEIJING REVIEW, NO. 32 Party members to help their women, as half of the mill's reported the problem to the trade understanding of market forces employees are women. The union. After investigation the and competition. This, combined workers' congress holds a meeting trade union found that one of the with the administration's rewards every six months to listen to the problems was the unfair system of and penalties and the co-operation director's work report and the reward. They suggested the of the trade union, helped quickly decisions on motions forwarded director introduce the contract improve the quality of the mill's by workers' representatives. It system. The suggestion was products. At a national quality also examines and disciisses the immediately accepted and the mill contest late last year, it was found factory's work plans. If there are logged 670,000 yuan in profit that that the mill's rate of first-grade disagreements, the representatives year, having spent a small sum on products was the highest of all the may suggest that the director extra bonuses. wool mills in China. revise his plans. Workers' suggestions also con• Although the workers' congress cern management, technical up• is not a decision-making body, it grading, market management, has a say in all matters, planning, workers' well-being and particularly those with a direct appointing and removing cadres. bearing on the interests of the Zhang says that as the standing workers, such as bonuses and body of the workers' congress, the housing distribution, wage reform trade union naturally should and the use of collective welfare safeguard the workers' interests. funds. The workers' interests, however, Zhang Chengzhao, chairman of vary: There are long-term and HAN BAOCKENG the mill's trade union, says that the immediate interests, individual A workshop at the Beijing Dongdan union used to concern itself with and collecfive interests. Then they Leather Shoe Factory. recreational activities, workers' must be judged against thfc interests of the state. Reconciling In the new system, the welfare and production compe• these is the responsibility of the relationship between the director titions. Now it has strengthened its trade union, the Party committee and the Party committee secretary function of democratic man• and the administrative leading directly affects the performance of agement. body. Although no serious labour- an enterprise. Shan Fanghui, a Soon after the mill introduced capital conflicts like those in cadre of the Beijing Textile the director responsibility system capitalist businesses exist in Industry Corp., the unit in charge in 1984. there were great changes socialist enterprises, contradic• of the mill, says: "In enterprises in the market and the mill found it tions among the people persist. which practise the director hard to adapt. There was waste of "Our job is to investigate these responsibility system, we make raw materials and overstocking of problems, voice the just demands sure that the director and the products. The workers' represen• of the workers and safeguard the Party secretary work as a team. If tatives at relevant workshops they conflict and mediation does not help, we have to transfer one Newly built workers' Ihring quarters. HAN BAOCHENG of them to another unit. That is the only choice at the moment."

Democratic Management

The workers' congress is the channel through which workers exercise their power of democratic management. The trade union is its standing body and the chairman of the congress is also chairman of the trade union. Of the 2,900 workers and staff at the mill 182 are representatives — 56 percent of them are workers, and 44 percent technicians and managerial personnel. Over 50 percent of the representatives are

AUGUST 10. 1987 21 •i ARTICLES

workers' legitimate interests," Chen Jie, director of the Beijing should complete certain tasks Zhang says. Television Factory, complains, during their terms of office (three In the last couple of years, as the "Although we practise guidance to five years), and list correspond• mill has been able to retain more planning we are required to hand ing rewards and penalities. Zhao of its profits, the workers' over 60 percent of our products to Guozhen, director of the Beijing congress has suggested the mill the Beijing municipal government, Dongdan Leather Shoe Factory, improve its provisions for women and 15 percent to the electronic forces a smile and says, "It's by no workers during their periods, industrial bureau. We are not means easy to enforce the rewards pregnancy and nursing, and give allowed to raise the prices of our and punishments." Since his all workers regular cancer TV sets, while we buy raw factory introduced the director checkups. materials at negotiated prices responsibility system, the profits Zhang says the workers have which are much higher than state handed over to the state have confidence in the trade union, and fixed prices." greatly exceeded the state's target, many tell the trade union about Liu Chunqin, of the Industrial and according to the contract their concerns over the reform and Economic Research Insfitute Zhao should receive about 10,000 even their personal problems. under the Chinese Academy of yuan as bonus every year. But he Social Sciences, says that in a has not received the money. Even As China's reform is still in recent poll, 75 percent of the if he were offered the money, he progress, the old system still factory directors said it was says, he would not dare accept, maintains some force, and the new difficult to be a director today. because of the egalitarian mindset. system has its problems. Not all There are many reasons. One is Liu Chunqin of the research enterprises saw the reform incompetence of directors them• institute says that after the through as smoothly as the Beijing selves. Quite a number of old introduction of the director Wool Mill, and factory directors directors know little about responsibility system, the perfor• often found themselves besieged modern management skills. mance of an enterprise is seen as with contradictions both inside Although many of the newly depending on its director. Factory and outside their enterprises. For promoted directors have the directors bear very heavy re- instance, in some places although knowledge, they lack the expe• sponsibilifies. but their incomes the director responsibility system rience and organizational ability, are quite moderate. The salary of was introduced, the upper-level and are not good at handling directors of larger factories only authorities have not ensured that labour relations. They are anxious averages 150 yuan a month, and Party leadership and administra• to push forward the reform, but their bonuses are the workers' tive management are properly their methods tend to be too average. Egalitarianism must be demarcated. The power of the simple. eliminated before the reward and factory directors has been delayed The regulations of the new punishment rules are to be or withheld. system stipulate that directors enforced, he concludes. • Democracy Booms in Guangzhou by Our Correspondent Yang Xiaobing

uangzhou was one of the first is gradually coming to Guang• the municipal government held a G cities to institute economic zhou. For instance, in the past, meefing with deputies to the reforms and implement the open democratic discussions in the municipal people's congress to policy. In recent years the growing people's congress would, more discuss how best to proceed in democratic awareness among the often than not, vanish with the 1987. Six similar discussions were citizens and their efforts in urban conclusion of the people's con• held last December and January. construction have contributed to gress. But now the Party and Much has been done to the promotion of economic government leaders in Guangzhou facilitate the exchange of opinions growth in Guangzhou. are more conscious to draw on the between the citizens and leading Yang Ziyuan, deputy mayor of initiative of the deputies to the members of the municipal Guangzhou, said; "Building a people's congress, so as to make government. high level of democracy is government departments' deci• compatible with the development sions suit the wishes of the citizens. If I Were the Mayor of production." The day before this correspondent Qiu Jinhua. a cadre at the public Yang also said that democracy met Yang, the leading members of relations section of the municipal

22 BEIJING REVIEW, NO. 32 horticultural bureau, wrote an The drives have attracted now 100 such telephone lines, and article in the context of a people from all trades and they are forming a network. suggestion drive entitled "If I professions who are concerned Were the Mayor." In it he said, as with their city. Among the would- mayor, he would not allow be mayors who were awarded 'Public Servants and gardens in Guangzhou to be prizes were Liang Peilin, a Jinan Citizens' Programme occupied by work units. His article University student from Macao, brought him the second prize in and Zhu Jianyi, the youngest the competition, and there winner, 11 years old when he "Public Servants and Citizens" followed a meeting between the participated in the drive. His is a special programme jointly run prize winning would-be mayors proposals concerning traffic safety by the Guangzhou People's and the staff of the mayor's office for primary school pupils and the Broadcasting Station, the Guang• in Guangzhou. There Qiu was able zhou municipal Parly committee to put his grievances direct to the and the municipal government. people in charge—who took The programme is broadcast every notes. Sunday and Monday. A leading member of the municipal Party The suggestion drives were held committee or the municipal under the auspices of Nanfeng- government makes a 10-minute chuang , a magazine in the city, address, or holds a dialogue with and the Guangzhou Soft Science members of the public. He or she Development Company. In April may also answer questions from 1985 Nanfengchuang proposed the masses. Problems discussed that suggestion drives be launched VANG XIAOBING range from electricity supply, the in the city. The slogan would be Yang Ziyuan, deputy mayor, talking labour system, the traffic situation "Guangzhou's business is about democracy. and the appearance of the city. everybody's business." Ye Xuanp- In the summer and autumn of ing, then mayor of the city, gave elimination of urban pollution 1986, Guangzhou had a serious his support to the proposition, impressed the mayor of shortage of electricity, which saying that the municipal govern• Guangzhou. greatly inconvenienced the resi• ment should not only support but Jiang Shuying, a sanitation dents. There were frequent also co-operate with the sponsors. worker, also got a prize. Before blackouts during the daytime, and What is important now, he said, is liberation Jiang joined a reaction• household refrigerators and fans to encourage people to put their ary organization and was condem• were unusable. The special minds to the city's problems, and ned as a counter-revolutionary in telephone line to the mayor it does not matter even when they 1954. Her suggestions were for received 109 complaints one day. complain. cleaning up Guangzhou. After the The municipal government, there• prize giving, she said: "1 have fore, ordered a cut in the electricity Four such drives have been heard that visitors to Guangzhou used by industries and deputy launched, and 8,000 letters with have all commented on how dirty mayor Yang Ziyuan twice ap• about 20,000 suggestions have Guangzhou is. I feel bad when I peared on the "Public Servants been received. Cheng Dajun and hear that. I feel I must put forward and Citizens" programme, analy• his family were awarded first prize my suggestions?" sed the reason and made an in the third suggestion drive. The municipal government has apology. He explained what Cheng works at the Guangdong also set up a special telephone line remedial measures were being Geological Society. Cheng, his son to the mayor of Guangzhou, and taken by the municipal govern• and daughter-in-law went on five people answer it round-the- ment and discussed the prospects holiday to Baiyunshan on the clock. They solicit opinions from for the future electricity supply. outskirts of Guangzhou last the masses and pass them on to the After that complaints about the summer, and worked out a plan mayor. In 1986 this line received power supply dropped for developing scenic spots there. 6,650 telephone calls, and most of considerably. They made drawings and sent the problems were dealt with In December 1986, Guangzhou them to the Urban and Rural promptly. Leading members of launched a campaign to improve Construction Commission of various districts and bureaus in the appearance of the city. Some Guangzhou. Their plan was Guangzhou have also set up their private traders and street stall• praised by the commission, and special telephone lines. Including holders worried that the policy of some of their suggestions have supervision and complaints lines encouraging private businesses been taken up by the municipal in the various departments of the would be reversed. A deputy government. municipal government, there are mayor of Guangzhou went on the

AUGUST 10. 1987 23 programme to reassure the private "Think-tanks" are valued too. cadres also gave appraisals of 24 traders, saying that the campaign The Guangzhou Soft Science cadres of the municipal Party would not affect the economic Development Company, together committee and the municipal position of the self-employed. with a number of experts and government. The owner of a private photo scholars, conduct their strategic studio near the government discussion meetings on economic While an appraisal is being building said: "1 tune into the and social development in Guang• conducted, officials who are being 'Public Servants and Citizens' zhou once every two months. It appraised are not allowed to be programme every week, and we also examines the tertiary industry present. Only the main points can see and hear from the city in Guangzhou and the programme which arise may be noted and not leaders and follow what they are for giving priority to social order the names of speakers. The doing." in Guangzhou. The discussions appraisal record is then sent to the are regarded by the municipal department concerned and the In 1985, the municipal people's Party committee as fully credible results shown to the appraised government began holding press forums and the Guangzhou Soft cadres. The appraisals of the briefings. These are usually Science Development Company leading cadres of the municipal presided over by the mayor or was entrusted with the task of Party committee and the deputy mayor of the city, and organizing one of its strategic municipal government is sent to members of the municipal govern• discussion meetings on cultural the organizational department of ment answer questions. The development in Guangzhou. The the provincial Party committee. municipal government has also documents which arose from the taken over a special column in After the appraisal of cadres, meetings, were sent to the Guangzhou Daily which reports on secret ballots are held to municipal Party congress and the the special telephone line to the recommend the promotion and people's congress and became the mayor. removal of cadres. One can tick guiding principles for the "competent," "basically compet• Leading members of the municipality's cultural develop• municipal government have their ent" and "incompetent" boxes for ment. The Guangzhou Soft every cadre. During the 1986 poll, special accesses for the grass• Science Development Company roots. They also make personal 97 percent of the cadres were voted has tackled 13 topics for the "competent" or "basically com• investigations of the local situ• municipal Party committee and ation regularly. petent" by over 50 percent of the government. voters. Seven of the 22 cadres who Pan Qingzhu, head of the were voted incompetent by over 50 Democratic Decisions organizational department of the percent of the voters have been Guangzhou municipal Party com• removed or demoted, including mittee, said: "In recent years the bureau heads and deputy heads of Yang Ziyuan said: "In our masses have been encouraged to the municipal government. The modernization drive decisions give democratic appraisals of municipal Party committee also made by the leading members officials. I have appraised others stipulated last year that all those should be scientific, and democ• and been appraised myself." The voted "incompetent" by the racy is a prerequisite for scientific scope of these appraisals has masses should not enter the decisions." Traffic jams in Guang• gradually been expanding and reorganized leading bodies. If a zhou, Yang continued, are improving. person who has been re• terrible. An underground railway commended by a majority of is necessary, but that is simply too people in his or her unit can not be expensive. Then the suggestion appointed to a leading post there, was made for flyovers to be built. Appraisals of Officials then the higher authorities should> A total of 100 million yuan would publicly explain why. be needed, a major investment for The appraisal of government Guangzhou. The municipal gov• officials in 1986 lasted several Pan Qingzhu noted that there ernment conducted an extensive months. It was carried out from are drawbacks in this system. For enquiry, held various kinds of the institutions of the municipal instance, where officials were discussion meetings and solicited Party committee and the various deemed incompetent, leading opinion from experts, the police, bureaus under the municipal members in some units did not drivers, cyclists and local resi• government to the districts and follow up and deal with them. But dents. The municipal government counties. A total of 27,000 cadres the appraisal of cadres is, in the concluded that the advantages of and workers from 138 units took final analysis, a good thing, sa>s building the flyovers would part in the appraisal and 875 Pan. The cadres must accept outweigh the disadvantages, and leading cadres were involved. supervision by the masses. W itii decided to go ahead. After that 1,400 junior and senior this system there will be a basis on

24 BEIJING REVIEW, NO. 32 which to select cadres. Party committee secretary, the included Wei Yin, an evening Last year the press in Guang• mayor of Guangzhou and a newspaper columnist and critic of zhou launched a competition to deputy secretary-general of the social problems, and Meng choose the "top ten public municipal government were all Weinuo, the principal of a servants" and held a well-attended selected, but not all the leading privately run school for retarded discussion meeting. The municipal cadres got voted. Those elected children. •

Indian Newspapers Spread Lies About Tibet

Tibet has always been part of China's territory and administered by the central government. The McMahon Line is illegal and should be considered null and void. by Radio Beijing Commentator

n India, some newspapers are called McMahon Line. Central duct of the colonialist policy of i urging the government of Rajiv authorities in Beijing were not aggression — is the chief source of Gandhi to use a new strategy in the informed about these activities. the current border dispute be• border dispute with China. The The McMahon Line placed 90,000 tween China and India. The papers are asking the government square kilometres of Chinese governments of the two countries to insist that Tibet has been territory under the administration have held seven rounds of talks independent in the past and that of British India. since 1981 to settle the issue. But therefore China should honour Tibet has always been part of no substantial progress has been the so-called McMahon Agree• China's territory and adminis• made because the Indian side ment signed by local Tibetan tered by the central government. refuses to follow the principle of officiials in 1914. This runs counter Local Tibetan officials had no mutual understanding and mutual to the aspirations of the Chinese right to sign territorial treaties accomm.odation and insists that and Indian peoples for a just and with foreign countries. Therefore, China make concessions uni• reasonable solution to the border the McMahon Line is illegal and laterally. issue. should be considered null and The border between China and void. China's central governments China takes a reasonable India has never been formally have never recognized this line. position on the Sino-Indian delineated. However, a traditional The British colonialists were so border issue. We believe it is customary line was accepted for embarrassed by their skulduggery necessary both to respect history many years. No border disputes that they did not make the and to consider the present occurred until after Western McMahon Line public for a long circumstances and take into colonialists came to the East. time. It was only in 1936, 22 years account the national feelings of After the British took control of after the Simla Conference, that both peoples. Disputes exist in the India in the 19th century, they the line appeared on a British map eastern, central and western directed their expansionist am• for the first time. And even then, it sectors of the border, but the bitions towards the southwest and was as an undecided border. biggest dispute is in the eastern northwest border regions of sector. China thinks that a just and China. They attempted to separate Today, some Indian figures are reasonable solution can be Tibet from China. The Simla playing the old tune that Tibet was reached through a deal covering Conference held in 1914 represen• formerly independent in an all three sectors and through ted an important step in realizing attempt to support the position mutual understanding and mutual this plot. The conference itself did that the McMahon Line is a legal accommodation. Such a solution not discuss the border question. border. These people are either conforms with the interests of However, outside the conference, ignorant or expansionist. Colonia• both peoples and is winning the British representative in India, lists of the past failed to separate approval from more and more Sir Henry McMahon, and a Tibet from China and not a single Indian people. It is our hope that representative of the Tibetan country has ever recognized substantial progress will soon be regional authorities secretly ex• Tibetan "independence." made. changed letters, inventing the so- The McMahon Line -a pro• •

AUGUST 10. 1987 25 m DOcuiviENTS wmmmamammmmmmmmmmmmmmammm Finance Ministry's Measures For the Implementation of Preferential Tax Terms January 30, 1987

hese measures are hereby formulated for the tax, the rate at which an export enterprise pays Tpurpose of implementing the relevant articles income tax is lower than 10 percent, the said export concerning preferential tax treatment in the enterprise shall pay the enterprise income tax at the Provisions of the State Council of the People's rate of 10 percent. Republic of China for the Encouragement of III. Article 9 of the Provisions states Foreign Investment (hereafter called the "technologically advanced enterprises may extend Provisions). for three years the payment of enterprise income tax I. Article 7 of the Provisions states "when at a rate reduced by one half after the expiration of foreign investors in export enterprises and the period of reduction or exemption of enterprise technologically advanced enterprises remit abroad income tax in accordance with the state provisions." profits gained from such enterprises, the amount This applies to technologically advanced enterprises remitted shall be exempt from income tax." Thus with or without a period for reduction or exemption the 10 percent income tax shall not be levied when of enterprise income tax under the existing tax laws the foreign investors remit abroad the said profits in and relevant regulations. 1986 and subsequent years so long as these are joint ventures confirmed as export enterprises and/or 1. The a'bove-mentioned technologically technologically advanced enterprises. Income tax advanced enterprises, whose period for reduction or levied on the profits remitted abroad by foreign exemption of enterprise income tax has not yet investors before the date of the promulgation of the expired under the existing tax laws and relevant Provisions shall be refunded, provided the remitted regulations, may pay enterprise income tax at a rate amount is advance payment of profit for 1986. The reduced by one half for three years starting from the levy of income tax on remitted profits before 1986 is first year following the expiration of the period. The subject to the stipulations of the existing tax laws enterprises may pay enterprise income tax at the and regulations. reduced rate from the year when they are confirmed II. Article 8 of the Provisions says "after the as technologically advanced enterprises, where they expiration of the period for the reduction or have run out of their period for reduction or exemption of enterprise income tax in accordance exemption of enterprise income tax, or do not have with the state provisions, export enterprises whose a period for reduction or exemption of enterprise export products' value amounts to 70 percent or income tax under the existing tax laws and relevant more of the value of their products for that year, regulations. Enterprises established after 1986 may pay enterprise income tax at one half the rate of which do not have a period for reduction or the present tax." This applies to export enterprises exemption of enterprise income tax under the with or without a period for reduction or exemption existing tax laws and relevant regulations, may pay of enterprises income tax under the provisions of enterprise income tax at the reduced rate for three existing tax laws and relevant regulations. years starting from the first year when they show 1. Export enterprises whose export products' profits. value in that year exceeds 70 percent (including 70 2. That part of the provisional payments made percent) of the value of the total products for that in quarterly instalments by the above-mentioned year shall present relevant certificates issued by technologically advanced enterprises in 1986 in competent authorities and have them examined and excess of the amount as computed in the final confirmed by the local tax authorities before they settlement of the year shall be refunded by the tax may pay enterprise income tax at one half the rate of authorities and deficiencies made good by the the present tax for that year. taxpayer. 2. For those enterprises which have paid 3. If by halving the tax rate the above- enterprise income tax provisionally on a quarterly mentioned technologically advanced enterprises basis in 1986 and which are confirmed as export pay income tax at less than 10 percent, the enterprises for that year, that part of the provisional enterprises shall pay enterprise income tax at the payments in excess of the amount as computed in rate of 10 percent. the final settlement shall be refunded by the tax IV. Article 10 of the Provisions says "foreign authorities or deficiencies be made good by the investors who reinvest the profits gained from their taxpayer. enterprises in order to establish or expand export 3. Where by one half reduction of the present enterprises or technologically advanced enterprises

26 BEIJING REVIEW, NO. 32 for a period of operation of not less than five years, or Article 9 of the Provisions but it cannot enjoy the shall be refunded the total amount of enterprise preferential treatment provided in both articles. The income tax already paid on the reinvested portion technologically advanced enterprise may enjoy after application and approval by the tax preferential treatment of Article 8 of the Provisions authorities." Foreign investors are eligible for tax after the expiration of the three-year period for refund when they reinvest in China the profits made reduction of enterprise income tax as stipulated in by their enterprises in 1986 and subsequent years to the Provisions, provided that the enterprise meets establish or expand export enterprises or the requirements of the article. technologically advanced enterprises. The provi• VI. The preferential treatments stipulated in sions of the existing tax laws and regulations shall the Provisions do not apply to taxes payable by apply when the foreign investors reinvest the profits Chinese-foreign co-operation enterprises engaged made before 1986. in the exploration and development of such V. Where an enterprise is confirmed by resources as petroleum and precious metals. competent authorities as both a technologically VII. Government departments at all levels advanced enterprise and an export enterprise in the throughout the country shall carry out the same year, the enterprise may choose to enjoy the preferential tax policy stipulated in the Provisions in preferential treatment stipulated either in Article 8 accordance with these measures. • Interim Provisions of tiie State Administration for Industry And Commerce oh Proportion of a Sino-Foreign Joint Venture's Registered Capital and Total investment March 1, 1987 Article 1 These provisions are hereby including US$30 million, its registered capital formulated in accordance with the Law of the should account for at least 2/5 of the total People's Republic of China on Joint Ventures Using investment; if the total investment is below US$ 12.5 Chinese and Foreign Investment, and the million, the registered capital must not be lower Regulations for the Implementation of the Law of than US$5 million, the People's Republic of China on Joint Ventures (4) When a Sino-foreign joint venture's total Using Chinese and Foreign Investment, in order to investment stands at above US$30 million its determine the relative proportions of registered registered capital shall account for at least 1/3 of the capital to total investment of Sino-foreign joint total investment; when the total investment is less ventures. than US$36 million, its registered capital must not Article 2 The registered capital of a Sino- be less than US$12 million. foreign joint venture should be commensurate with Article 4 If a Sino-foreign joint venture should the scale and scope of the venture's production and encounter special circumstances and is unable to operation. The parties to the joint venture shall meet the above provisions, approval can be given share profits, risks and losses in proportion to the jointly by the Ministry of Foreign Economic registered capital. Relations and Trade and the State Administration Article 3 In determining the proportion of for Industry and Commerce. registered capital to total investment of a Sino- Article 5 If a Sino-foreign joint venture foreign joint venture, the following provisions increases its investment, the relative amounts of should be abided by: additional registered capital and the increased (1) When a Sino-foreign joint venture's total investment shall be determined in accordance with investment is up to and including US$3 million, its these provisions. registered capital should account for at least 7/10 of the total investment. Article 6 The proportions of registered capital (2) When a Sino-foreign joint venture's total to total investment of a Sino-foreign joint co• investment is in excess of US$3 million, up to and operative enterprise, or of a foreign enterprise, shall including US$10 million, its registered capital be determined in reference to these provisions. should account for at least half of the total Article 7 These provisions are applicable to investment. If the total investment is below US$4.2 companies, enterprises, other economic organiz• million, the registered capital must not be less than ations or individually invested enterprises of Hong US$2.1 million. Kong, Macao and Taiwan. (3) When a Sino-foreign joint venture's total Article 8 These provisions go into effect from investment is in excess of US$10 million, up to and the date of their publication.

AUGUST 10, 1987 27 m FROM THE CHINESE PRESS

research that will enrich socialist Developing Trends in Chinese Ethics ethics. 4. Ethics will be studied in conjunction with new and out history. These studies investi• related disciplines. Ethics cannot "LILUN XINXI BAO ' gate the nature and role of morals be separated from philosophy, (Theoretical Information) in a society's history, philosophy, economics, study of education, art, religion, etc. Chinese resear• psychology, physiology, aesthe• u Qixian, an associate profes• chers must study the history of tics, folklore, social customs and Xsor of ethics at the China ethical thinking in China, the East religion. They permeate each People's University, described the in general and the West. other and develop together. In a trends in China's study of ethics in. 3. Some studies will focus on way, ethics belongs to the frontier a recent article. particular topics and others will science. New and related disci• be comprehensive. In order to plines have influenced and 1. Theoretical research into meet the needs of social develop• broadened the vision of people ethics will be closely Integrated ment, various branches of applied studying ethics. These disciplines with current and future realities. ethics are needed in specialized have spurred the study of ethics, China's current reforms, which fields. The ethics of medicine, while at the same time, the study of are bound to affect all corners of sports, management, education, ethics has propelled other disci• society, have brought about great the military, the stage, commerce, plines forward. economic advances and led to economics, the family and eco• 5. New methods of study will major changes in people's moral logy, for example, must be looked be used. While historical materi• concepts and life style. Many new at separately. Different methods alism will continue to form the questions have arisen in the are required in each branch of basis for the study of ethics, new relations between ethics and the study depending on the nature of methods of study will be found reforms, the economy, compe• the topic. In addition, the useful. These include cybernetics tition, money, management, specialized studies must be used as and sociolosical methods. power, culture, science and the basis for comprehensive (May 25. 1987) technology, ect. Researchers must investigate human relationships that have changed and are still changing. They must study new China's Institutions of Higher Learning types of people, new ways of thought, new morals, socialist and communist morality, professional concrete tasks and train teachers ethics, the root causes of "BAN YUE TAN" and social science researchers for unhealthy tendencies and ways to (Fortnightly Forum) the institutions of higher learning. correct them, and other moral The universities of science mainly questions that arise in public life. y the end of 1986, China had train teachers and scientists. Such studies should direct at B1,054 universities and colleges, • Universities of engineering. providing a solid theoretical basis offering 824 specialities including China has 271 universities training for socialist and communist moral liberal arts, history, philosophy, engineers and technicians. education and the development of science, engineering, agriculture, • Teacher training univers• a socialist ethical system. Resear• medicine, forestry, teacher- ities. There are 257 institutions chers must leave their ivory towers training, finance and economics, mainly training teachers for and gear their studies to the world politics, law, sports, and foreign secondary schools. as it is now and to the future. languages. The institutions of • Institutes of foreign lan• higher learning consist of 592 guages. A total of 43 languages are universities, 336 colleges for 2. Studies will be both micro- offered mainly to prospective The professional training, and 126 cosmic and macroscopic. translators and teachers. term "microcosmic" refers to vocational colleges. In addition, studies which probe basic ques• there are a number of military • Arts and physical education tions of ethical philosophy such as academies, institutions for adults institutes. Since the founding of the moral sense, the moral and religious seminaries. New China in . 1949, arts and psychology, the structure of moral The higher-learning institutions physical education institutes have actions and the function of moral include: developed rapidly. By the end of regulation. Macroscopic studies • Liberal arts and science 1986, there were 29 arts institutes look at morals in the context of the universities. The universities of training people in the fields of whole culture of society through• arts prepare people of ability for music, drama, fine arts, dance and

28 BEIJING REVIEW, NO. 32 film. The 16 physical education inhabited by minority ethnic institutes train teachers in sports, groups. Men in Tiieir 60s coaches, researchers and sports • Military academies. Some Prone to Diseases officials. The physical education 100 academies train commanding departments of the teachers officers and professional techni• training universities mainly pre• cians for the People's Liberation pare people to teach sports in Army. secondary schools. • Universities for adults. An "ZHONGGUO SKIPIN BAO • Nationalities institutes. important part of China's higher (News of Chinese Foodstuffs) There are 10 such institutes, the education, there are 142 such largest being the Central Institute universities, which train pro• ince the early 1950s, the Beijing for Nationalities in Beijing. They fessional technicians for the S Medical Research Institute for mainly train various kinds of country. the Aged has been monitoring the people for construction in areas (No. 8. 1987) physical condition of 200 men. To date, all ofthe men are alive and in good health. Their average age is Chinese-Foreigner: Intermarriage 74. As a result of regular physical with Httle or no education were "ZHONGGUO FAZHI BAO" examinations, the researchers often found to be m.arried to (China Legal News) found that the subjects were most Shenzhen women who had likely to contract certain frequ• completed senior middle school. ently occurring diseases when they ince the establishment of the Finally, more foreigners are were 60-69 years old. The diseases SShenzhen Special Economic marrying people who are em• include hypertension, gastric and Zone, the number of marriages ployed. In the past foreign men duodenal ulcers, haemorrhoids, between Chinese and foreigners in tended to marry Shenzhen rural chronic tracheitis, diabetes, the zone has gone up from 279 in women. But in 70 percent of the cataracts, coronary heart disease, 1979 to 894 by the end of 1986. 894 intermarriages, both spouses prostatitis and tumours. The The intermarriages involve people were employed. occurrence of such diseases mainly from 13 countries and regions, The intermarriages in Shenzhen relates to physiological changes, including the United States. generally seem stable and the rate particularly in the endocrine Canada and Japan. of divorce is low. Only nine system. These physiological Statistics provided by the couples were divorced in 198.5. changes can easily cause disease. Shenzhen Registrar of Intermar• (May II. 1987) (April 10. 1987) riage With Foreigners indicate that the composition of such Form left to right: marriages has begun to change. 1. Girl dressed «vith money from her parents' old-age pension. 2. A scientist ponders Formerly, nearly all the husbands what to talce home to eat after work. 3. When he was a worker, hellked to quarrel with the boss. Now he's a boss, he quarrels with the workers. canoon by ZHAN TONG came from abroad. In 1979, only one foreign woman was married to a Chinese man. But by the end of 1986, 33 foreign women had married Chinese men. The second change is narrowing the age disparity between husband and wife. For instance, marriages in which the husband was more than 10 years older than the wife made up 72.7 percent of the total in 1979, but only 27.1 percent in 1985. Third, the educational standards of husband and wife are now roughly the same. The figures show that about 87 percent of the people from abroad who have secondary school or higher education have married Chinese people with similar education. Previously, however, foreign men

AUGUST 10, 1987 p

m BUSINESSARAPE

one-year scientific and technolog• Chrysler, Changchun Make A Deal ical co-operation agreement with the International Rice Research fter three years of studying Right from the start, the annual Institute (IRRI) in the Philippines A various options in Europe, output is expected to be 150,000 last month in Beijing. This is the Japan and America, the China vehicles and the move up to eighth such agreement since 1979. Changchun No.l Automobile 300,000. Lu Liangshu, head of the Works has chosen to import the The variety and number of academy, told reporters that there four-cylinder engine of the US vehicles and parts produced will have been all kinds of agricultural Chi-ysler Motors Corp. An fulfil the requirements for light science co-operations between agreement for transferring the trucks and cars which the China and the IRRI. technology was signed in Beijing Changchun Works has set itself. — The institute has trained over this month. Changchun is one of the biggest 200 Chinese scientists and techni• It is one of the most important vehicle manufacturers in China, it cians gratis. pieces of vehicle technology produces about 100,000 automo• — Through participating in the transfers from the United States biles annually including 5-ton institute's rice experiment pro• since China opened ..p in 1979. truck with six-cylinder engines, gramme, China has been able to Under the agreement Chrysler will cars and minibuses. choose many new rice strains provide Changchun with the 198! After importing the Chrysler including alkali-, cold- and engine and its manufacturing technology, the Changchun drought-resistant strains as well as technology. Works plans to produce light those more resistant to disease and The US company will also sell trucks of 1-2 tons capacity, pests. its 1.8-litre engine technology minibuses and touring buses, all — Using the imported rice strains, which has been developed so with the Chrysler cylinder engines. China has bred some new varieties recently it has as yet not been put Meanwhile it also plans to sell the of rice and popularized them in into operation. Changchun has engines to its various Chinese many places. All the famous already bought 217 key pieces of subsidiary factories. Chinese hybrid rice strains were equipment from the US company. by Yao Jianguo bred by using plants introduced from the institute. Recently China has also bred some early-maturing varieties, which again come from Metal Exports USS50 million. Over 300 com• strains imported from the panies from 27 countries held institute. Being Expanded discussions with the corporation at the symposium, half of them for — Through collecting, exchang• ing and storing, analysing and n the first six months, the China the first time. Zheng Rugui, general manager of the corpor• choosing these improved strains, I Nonferrous Metals Import China has learnt a great deal and Export Corp. signed export ation, believes that the symposium helped significantly to open up the about advanced research and agreements worth USS280 mil• testing technologies. lion, an increase of 49.9 percent American market for Chinese over the same period last year; in nonferrous metals. Lu confirmed that the intern• that time US$170 million were According to Zheng, the ational institute is one of the most actually earned, twice as much as corporation will hold a sym• prestigious in the world. Since its in the same period last year. posium on nonferrous metals in establishment in 1960, the institute Holding nonferrous metals fairs Melbourne, Australia in Novem• has bred many good varieties of is the corporation's major means ber this year, and participate in the rice, made great contributions to of expanding its exports. For trade exhibition to be held by the the popularization of new tech• instance, export agreements worth China Council for the Promotion nology, and crop management USS130 million were signed at the of International Trade in Osaka. systems. It has trained many Guangzhou Spring Commodities Japan in August. Zheng is agronomists and been active in Fair and the symposium on confident of his corporation's international exchanges. The in- nonferrous metals in Hong Kong exports for the rest of this year. sfitute won an internafional prize last March. At the symposium on by Han Baocjieng m 1982. Its director Dr M.S. nonferrous metals in New York Swaminathan, an Indian agrono• last June and July, the value of International Rice mist, recently won the First trade agreements signed by the Annual General Foods World Chinese corporation surpassed Research Exchange Food Prize. USSlOO million; exports were he Chinese Academy of This latest agreement will worth USS60 million, imports TAgricultural Sciences signed a enable the Chinese and other

BEIJING REVIEW, NO. 32 agronomists to proceed to new years ago. The output value of Establishing joint ventures achievements. foreign-funded enterprises now abroad is a new field for by Yao Jianguo accounts for over 60 percent of the Guangdong. Last year the pro• city's total industrial output. vince held talks on 23 projects with Shenzhen Enjoys In the first half of this year, foreign businesses from 14 places exports made by foreign-funded abroad and signed nine letters of Investment Boom businesses in Shenzhen were 93 intent for projects abroad in the percent more than in the same fields of forestry, agriculture, nused factory buildings in the period last year. Most of the medical service, engineering con• UShenzhen Special Economic enterprises were doing well and sultancy, ceramics production, Zone have recently been much in making profits. Some have light industry and Chinese restau• demand by foreign businesses. increased their investment and rants. By now seven joint ventures Many factories under construc• workforce. have been established in Hong tion have been reserved by foreign The Shenzhen Special Kong, Macao, Malta, Surinam businesses. Shenzhen industry is Economic Zone has been improv• and Sri Lanka. coming under a new high tide of ing its investment environment to by Li Wanming foreign investment. attract more foreign funds. The Foreign investment in Shenzhen first 350,000 kw generator at the Trade News in Brief industry has increased rapidly this Shajiao Power Plant has started year. In the first half of the year, 92 generating electricity. A group of • By the end of June, China foreign-funded industrial projects 34 enterprises has been recognized had exported about 6 million tons were established here, up 46 as technologically advanced and of coal, 24 percent more than the percent over the same period last export-oriented enterprises, and same period last year. The coal is year, fhc investment involved in will be given preferential treat• exported to over 20 countries and foreign contracts totalled HK$320 ment in taxation and other fields. regions, including Japan, the million, an increase of 16.2 percent Philippines, Belgium, France, over the same period last year. Of Denmark, Argentina, Indonesia the newly signed agreements for Guangzhou Extends and Hong Kong. direct mvcstment by foreign Co-operation • The first Chinese garden in businesses, industrial projects Africa has just been completed in accounted for over 90 percent. uangdong Province near Hong N'sele, 60 kilometres from Kinsh• In addition, big financial Kong and Macao is making asa, the capital of Zaire. The organisations and transnational G major efforts to expand its foreign garden, which was built by the consortia have been showing an economic and technological co• China National Complete Plants interest in Shenzhen and expected operation. The province plans to Export Corp., covers an area of to sign large investment agree- sign co-operation contracts worth 14,000 square metres. It has an menu soon. An Arab business US$23 million this year. Between artificial lake, rockeries, pavil- group has decided to invest January and May, 14 contracts lions, artificial waterfalls, restau• US$320 milhon in Dapeng worth US$14.11 million were rants with ancient Chinese Peninsula in Shenzhen to build an concluded. Meanwhile Guang• furniture and lamps, ect., and bars oil refinery with an annual dong will also undertake to and a dance hall. capacity of 3 million tons. The participate in 19 aid projects in 14 • The 302-km Guangzhou- Hitachi Corp. of Japan plans to set countries and 24 other multilateral Shenzhen-Zhuhai expressway will up a colour television tube factory and bilateral aid projects spon• begin to be jointly built by China in Shenzhen involving an invest• sored by the United Nations and and Hong Kong in October. ment of US$120 milhon. The K.T. certain other countries. The total investment is 3.7 International Corp. registered in Guangdong was one of the first billion yuan (about US$1 billion). Britain recently agreed to invest The first phase of the project — US$1.5 billion-US$2 billion in provinces to set up foreign economic and technological co• from Shenzhen to Guangzhou — building a large petrochemical is expected to open to traffic by factory in Shenzhen. operation. By the end of last year, it had singed 192 contracts with 23 1990. The term of the co• Shenzhen is China's first SEZ, countries and regions in Asia, operation is 30 years. • and by June this year, 322 foreign- Europe, Africa and Latin America funded industrial enterprises had as well as Hong Kong and Macao. \ been established there. The The total value of the contracts is proportion of foreign money US$169.6 million. The province going into Shenzhen's industry had also completed 120 aid was 76.8 percent last year, a huge projects in over 30 countries and increase over the 8.5 percent three regions.

AUGUST 10, 1987 31 •1 TOURISM w^^ma^mm^mammmmmmmmmmmmmmmmm^m

Enchanting Scenery Around Yichang

ichang city in Hubei Province dynasty poets came and wrote old. In this temple, there is a 900- Y is situated at the mouth of quite a few oft-quoted pieces. The kilogramme iron pickaxe made in Xiling Gorge, one of the Three Tang Dynasty poet Li Bai's 615. The stupa of Tathagata, built Gorges on the Changjiang (Yang• "Leaving Baidi City at Dawn" is in 1061, is a 22 metres high 13- tze) River. Boating from here famous because it has been storey iron pagoda weighing upstream takes one through all included in primary school 53,300 kg. It is an exquisite three gorges. textbooks. The legend goes that example of ancient Chinese The Three Gorges are called during the Three Kingdoms (220- architecture and technology. Xiling, Wuxia and Qutang Gorges 280), the emperor Liu Bei of the and they stretch 204 kilometres. State of Shu was defeated in a New Routes to Jiuzhaigou The river courses round the battle. Before his death, he mountains and the waters are entrusted his son Liu Chan to the Located in the Aba (Ngawa) turbulent. Sheer cliffs and steep guardianship of Prime Minister Tibet Autonomous Prefecture in mountains rise on either sides, Zhuge Liang. The pictures in the Sichuan Province, Jiuzhaigou, a creating fantastic sights. There are Ming Liang Hall, one of the natural reserve under state many scenic spots and places of traditional Chinese buildings in protection, is famous as "the historical interest along the way. the city of Baidi, depict this story. world of fairy tales." Recently Gezhouba Hydropower Pro• More than 1,000 items from the three new tourist routes were ject. It consists of a huge dam, a various dynasties are on display at opened from Chengdu to Jiuzhai• power plant, ship locks and a sand the four exhibition rooms to the gou. The first is by bus through scouring gate. One of the ship side of the hall, including artifacts Hongyuan County, where Qiang locks is big enough for 10,000-ton over 2,000 years old and minority people live*. On the way class ships. calligraphy on stone from the 14th one can see old stone Tibetan The Chinese Sturgeon Re• century. buildings like blockhouses, and search Institute. Chinese stur• grasslands scenery. The second geon is a living fossil going back Qu Yuan and Wang Zhaojun's route is by bm through Jian^you over 140 million years. After the Hometown. Yichang is an ancient and Pingwu counties. Travellers river was dammed at Gezhouba, centre of culture with 2,500 years can visit the Baocn Temple and the institute succeeded in artificial of history. Sixty kilometres to the Tang Dynasty poet Li Bai's breeding of this endangered west of the city is the birth place of former residence as well as the species and has so far put 467,000 the ancient patriotic poet Qu Yunyan Temple. The last route is young sturgeons back in the river. Yuan, and the famous Wang by train through Zhaohua or Zhaojun. who was married to a Guangyuan, then by bus to The "Small Three Gorges" on minority chieftain in nc/thern Jiuzhaigou. the Ninghe River. These span 50 China by the Han impeja^i court kilometres along a tributary of the as a token of goodwill. The Qu Tailpieces Changjing River at the western Yuan temple and his tomb, and • Chinese lunar year 1988 will entrance to Wuxia Gorge. The Wang's house as well as their be the year of the "dragon." The water is clear and, fast-flowing. memorial halls were built by the Beijing Tourist Bureau has Trees growing on jjoth banks local people in their memory. designated the year as "Beijing make for a sense of beauty and International Tourist Year." stillness. Here, the visitors can see The Dangyang Battlefield 74 There will be a national tourist ancient coffins 500 metres up on kilometres to the northeast of programme of dragons emphasiz• the precipices as well as the Yichang. Here Liu Bei and Cao ing the dragon lanterns on remains of a famous ancient plank Cao troops confronted and January 15, on May 15, the road along the cliff face. fought. There are 37 stories in the dragon boat festival and the Baidi City. At the entrance of novel The Three Kingdoms that ' lantern fair on July 7. Qutang Gorge on the north bank took place here. Many places such • Recently hotels in Beijing of the river, its beautiful as Changbanpo Slope, Balingqiao held an English competition for traditional houses are set among Bridge and Guanling Temple the staff. Competitors were all dense green trees. From the which are mentioned in the novel young employees. This is one of seventh to the 13th centuries, still exist here. Yuquan Temple is a the measures taken to improve many famous Tang and Song Buddhist temple over 1,700 years service.

32 BEIJING REVIEW, NO. 32 1 CHINA CALENDAR

Business and Trade September 19-25. China Intern• Agricultural Economy and the ational Exhibition Centre in China Society of Agriculture. September 1-5. Guangzhou. Beijing. International Manu• October 19. Beijing. Symposium International Environmental facturing, Processing, and Tech• on Chemical Reaction Engineer• Testing and Measuring Equip• nical and Economic Co-operation ing in China, Japan and the ment Exhibition. Sponsored by Exhibition. Sponsored by the United States. Sponsored by the the China Electronic Products and China Exhibition Management China Chemical Society and the Environmental Technology Com• Company of the United.States. China International Conference mittee and the Chinese Society of Participants coming from the Centre. Electronics. Participants coming United States, Canada, Brazil, from the United States, Japan, France, Italy, Switzerland, Japan Cuiturai Exclianges Britain, France and Hong Kong. and Hong Kong. September 3-9. Guilin, Guangxi. September 20-26. Nanjing, Jiangsu Province. International September 1-4. Beijing. Onono Foreign Restaurant, Catering and Komachi, modern Japanese drama Food Processing Equipment Exhi• Micro-electronics and Motors Technology and Equipment Exhi• to be-jointly staged by Japanese bition. Sponsored by the Guangxi and Chinese artists. Sponsored by Foreign Exhibition Company and bition. Sponsored by the Jiangsu International Exhibition Com• the China International Cultural the Hong Kong Exhibition Co. Exchange Centre, Literature and Participants coming from Japan, pany. Participants coming from the United States, Britain, France, Art Department, and the Japanese the United States. Western Association of Social Culture. Europe and Hong Kong. the Federal Republic of Germany, Japan and Hong Kong. September 5-25. Beijing. First September 5-10. Nanjing. Nan• Chinese Arts Festival. Sponsored jing International Scientific In• by the Ministry of Culture and the struments and Technology Exhi• Science and Tectinoiogy Beijing municipal people's bition. Sponsored by the Jiangsu government. International Exhibition Com• September 21-24. Changsha, September 5-25. Beijing. Con• pany. Participants coming from Hunan Province. International cert by Philip Wu, a Taiwanese . the Federal Republic of Germany, Symposium on Metallurgical singer of US nationality, and Zhu Italy, the United States, Japan and Engineering. Sponsored by the Zongmao, a Chinese musician Hong Kong. China Zhongnan University of residing in the United States. Science and Technology. September 5-11. Beijing. US September 17-19. China Art October 3. China International Nucfear Technology Exhibition. Gallery in Beijing. Exhibition of Conference Centre for Science and Sponsored by the US Nuclear Paintings by Shiu Wai-Lan, a Technology in Beijing. Fourth Society. Participants corning from Canadian overseas Chinese, and Asian and Pacific Regional the United States, Canada, Japan, her son Chen Ping-chung. the Soviet Union and Denmark. Conference of the International Astronomical Union. Sponsored September 8-17. China Intern• by the Asian and Pacific Regional ational Exhibition Centre in Astronomical Union affiliated to Sports Beijing. International Office the International Astronomical October 6-13. Zhaoqing, Guang• Automation and Commercial Union. Attended by 240 Chinese dong Province. Asian Canoe Telecommunications Equipment and foreign scholars and experts. Tournament. Exhibition. Sponsored by the Mid-October. Tianjin. Sym• China International Exhibition posium on Brain and Respiratory October. Yantai, Shandong Prov• Centre. Participants coming from Physiology. Sponsored by the US ince. International Motorcycle Japan, Australia, Hong Kong and Medical Society and the Socio• Invitational Tournament. some European and North logy Department of New York October. Beijing. Beijing Intern• American countries. University. ational Marathon. September 10-15. Guangzhou. October 13-18. Shanghai. World October is. Beijing. International Racing Boat Tournament. International Carpentry Tools Symposium on Urban Ecology. and Furniture Exhibition. Spon• Sponsored by the China State sored by the Guangdong Intern• Committee of the Man and ational Trade & Exhibition Biosphere Pragramme of the UN Corporation. Educational, Scientific and Cul• September 12-19. China Intern• tural Organization. ational Exhibition Centre in October 15. Shanghai. Intern• CORRECTION: In our issue No. 29. line Beijing. Second International ational Symposium on Rural 33 on p. 20, central column, should read "In Medical Instruments and Equip• Development Strategy. Sponsored 1945. We admil to its . , - ment Exhibition. by the Society of International

AUGUST 10, 1987 33 •1 LETTERS

The Kokario Case political affairs. The constitution as experts and they confirm this. allows the Diet to handle relevant The layout suits the contents Japanese court in Osaka ruled domestic affairs. If government which has improved. A that the student dormitory, officials really wish to see t would like to read more which is China's property, is government policies endorsed by \ articles about China's minorifies, owned by Taiwan. Towards the the Diet, then problems can be not only from the cultural point of Kokario case there were many solved quickly. view but also from a political angle illjudged and misleading opinions which would suit your magazine which appeared in the Japanese Therefore, we should put Sino- Consider starling a "National press. Japanese friendship first and uphold 'the principles of the Sino- Minorities" column. Headlines such as '"Communist Japanese Joint Statement to solve Hans Warner, country's old tricks for threaten• the Kokario case properly. PRC ing another country," and "Why do China and Japan's views Shushin Murakami US-Japan Trade Friction differ?" obfuscated the real issues. Yamato. Japan The Chinese government re• I read with interest your recent peatedly demanded that the Comments & Suggestions article, "US-Japan Trade Fric Kokario case be reviewed, but the tion: Review and Preview," by The most important sections of Japanese government, on the Chen Baoshen in issue No. 19. On your magazine for me are the pretext of the so-called "division the whole it is a balanced and "Events and Trends" and "Intern• of powers between the three informative account of economic ational" columns. .Articles in these branches" of the legislature, the rivalry between Wa.shington and sections relating to China should executive and the judiciary, Tokyo. However, I feel that the be separated from the "Intern• rejected this. author left out two important ational." I gain an understanding With this in mind I think people reasons for Japan's present of China's policies from these should consider the following: economic superiority over the US. articles, which I could not bet 1. The Osaka court's decision in First and foremost, the US otherwise. The new column favour of the Taiwan authorities' government — especially since "Weekly Chronicle" is a useful ownership of the student dormi• Reagan took office in 1980 — has addition. tory is a violation of the Sino- spent an enormous proportion of "From the Chinese Press" Japanese joint statement which its resources on war preparations. column nicely supplements your states, "The government of the One recent study put the US own reports. If you give a simple People's Republic of China is the military spending — direct and explanation about the papers you sole legal government of China;" indirect — to be 40 percent of the quote, note their locality and the "Taiwan is an inalienable part of annual federal budget. With such target readership, it would help the territory of the People's a wasteful stockpiling of weapons, readers gain more from the Republic of China." This decision is it any wonder that the American articles. recognizes "two Chinas." economy's ability to compete with I am also interested in the 2. As stipulated in the Japanese Japan is seriously handicapped? "Culture and Science" column. Meiji Law, the powers of the Secondly, in the past two Though I always hope for more executive are greater than the decades the American economy from it than I get. I know Beijing judiciary's. After World War II, has been rapidly changing from an Review is a weekly dealing with the MacArthur Constitution div• essentially "production economy" current events and only has ided the powers of the three into one of "speculation," based limited space, I still look forward branches, and forced the new law increasingly on debt financing. to reading this column every time. on .Kipan. Bui when major Instead of the traditional reliance criminals fled Japan, measures The "Books" column gives me on re-investment of hard-earned which go beyond the law can be the kind of information 1 feel I profits from manufacturing adopted. Because of these could not get elsewhere. industries, more and more Amer• changes. China feels it hard to The "Tourism" column is of ican businesses are using bor• understand why Japan can not great value to me, its reports on rowed funds to buy out other firms handle the Kokario case properly tourism are interesting and I hope or to speculate on a variety of and in the right way. you will keep this column. "get-rich-quick" schemes. Result? Beijing Review's reports on Less investment in the productive 3. The most important power of China are the basic reason why I sectors, more corporate and the Japanese Diet is to make laws. subscribe. Because it publishes individual debt, both leading to a As the superior organ of power in real news from China. I have often stagnant economy. Japan, it should have the talked with people who have responsibility to supervise and travelled to China, especially Daniel Li guide Japanese government and those who have worked in China Honolulu, Hawaii

BEIJING REVIEW, NO. 32 ART PAQE

Papercuts by Chen Chunyan Picking Mulberry Leaves. Chen Chunyan, born in Nanjing City in 1 945, now works at the Jinhu County Cultural Centre in Jiangsu Province. Combining traditional skills with her styel of drawing she creates bold and vigorous modern-looking papercuts.

Local Opera Figure.

The Boating Folk Dance. Toilet articles & detergents

CHINA NATIONAL LIGHT INDUSTRIAL PRODUCTS 1/E CORP, TIANJIN BRANCH 164 Liaoning Road, Tionjin, Chino iixni Coble: INDUSTRY TIANJIN Telex: 23142 TJLIP CN