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'One Country, Two Systems'. The Way to Reunification CONTENTS [] This article discusses the concept of "one country, two systems," its connotations and theoretical basis. The concept, put forward by Deng Xiaoping as a means for China's reuni- NOTES FROM THE EDITORS 4 fication, was adopted under the new situation that emerged A Guarantee of Quality Exports in 1978 as a policy for the mainland to reunite with Taiwan EVENTS/TRENDS 5-8 (p. 14). Tibet: Stability Is Order of Day Beijing Marks PLA's 63rd Anniversary Party Session Will Stress Economy A Guarantee for Quality Exports Britain's HK Act: A One-Way Traffic [] The export of some counterfeit and sub-standard commod- Arms Shipments Halted to Iraq ities since 1988 has caused serious complaints from foreign Summer Grain Output Hits businesspeople and threatened to blur China's reputation in Record-High the foreign trade market. As part of the effort to improve the Mainland Welcomes Direct economic order, China is taking effective measures to main- Taiwan Flights tain its reputation and raise the competitiveness of its com- INTERNATIONAL modities on the international market (p. 4). The United States' 'New Economic Partnership' 9 OPEC Raises Price of Crude Oil 10 World Economic Prospects In the 1990s German Merger Brings Problems 11 World Economy in the 1990s: A Forecast 12 [] The world economy in the remaining years of this century will be characterized by several features, including the for- CHINA mation of regional trade blocs, the increasing role of transna- 'One Country, Two Systems': The tional corporations and the widening gap between the North Best Way to Peaceful and the South (p. 12). Reunification 14 China Introduces 'Green Label' Food 22 The Beifang Foodstuff Checking Summer Grain Output Hits Record-High and Testing Centre 24 Yellow River Silt--A Resource to [] Both China's summer grain output and rapeseed yield hit Be Utilized 25 a record-high this year. The former reached 99.35 million PICTORIAL tons, 6 percent more than in the previous record year of 1989, Beijing: Countdown to the Asian and the latter totalled 6.408 million tons (p. 8). Games Centrefold BUSINESS/TRADE 28-30

'Green-Label' Food On Way to Market BOOKS 31 CULTURE/SCIENCE 32-34 [] China's state farms and land reclamation system has set up COVER, Right: a "green label" state enterprises to produce high-quality and nutritious food, free farm at Dongbeiwang in the suburb of from chemical additives and contamination. Produced ac- Beijing. Left: China's "green label" food cording to strict sanitation standards, the "green-label" foods logo. will soon be available on the market (p. 22). Photo by Hu Chao

General Editorial Office Published every Monday by BEIJING REVIEW Subscription rates (1 year): Tel: 8314318 24 Baiwanzhuang Road, Beijing 100037 Australia ...... A.$30.50 TLX: 222374 FLPDA CN The People's Republic of China New Zealand ...... NZ.$40.50 FAX: 8314318 Distributed by China International Book UK...... 1~16.50 English Dept. Tel: 8315599 Ext 546 Trading Corporation (GUOJI SHUDIAN) USA ...... US$30.50 P.O. Box 399, Be ng, Ch na I Canada ...... Can.$30.50 i m |, NO. 33 AUGUST13-19, 1990

A Guarantee of Quality Exports

by Yao Jianguo

S part of the effort to improve the economic order, came to US$43.4 billion, up 10.5 percent from 1988. China's foreign trade departments are taking ef- In the first six months of this year, exports reached A fective measures to restore the country's for- US$24.05 billion, up 21.7 percent from the same period eign trade reputation and raise the competitiveness of last year. In the first half of this year, China's fulfilment Chinese commodities on the international market. of its foreign trade obligations increased 5.5 percentage At the national working conference on foreign trade points over the corresponding period last year. held in early August, Minister of Foreign Economic However, there is still much to be done regarding Relations and Trade Zheng Tuobin called for strict export quaUty and fulfillment of contractual obliga- management, supervision and examination of export- tions. These issues, which need to be dealt with seriously, oriented enterprises so as to improve the quality of were addressed by the Ministry of Foreign Economic exports and fulfil contractual obligations in time. At the Relations and Trade at the meeting last August when it meeting, those enterprises that had done well in their decided upon the following measures: foreign trade business were praised while those which --Strengthening management and supervision over were found to be exporters of counterfeit and sub- exports and adherence, to the letter, of all related rules standard commodities, thereby undermining China's re- and regulations. All producers are required to institute putation, were singled out for punitive action. a quality control system throughout the production pro- China's commodities have long been well received on cess; foreign trade enterprises must have an examination the international market. Such commodities as cotton system for export commodities; and commodity inspec- yarn, cotton grey, cotton-polyester yarn and cotton- tion departments must take samples and check and polyester grey have been rated internationally as endorse export commodities according to related regula- "24-karat gold" and are marketed in many countries tions and standards. Enterprises will have their export around the world. Beginning in 1988, however, the ex- permits cancelled if products are found to be below pansion of China's trade with other countries, combined standard. with the delegating of export power to the local level, --Administrative departments in charge of the var- resulted in a confused foreign trade order and the in- ious levels of foreign trade should oversee the quality of troduction of counterfeit and sub-standard export prod- export products and the way an enterprise honours its ucts. This has brought serious complaints from foreign contractual obligations by using such, administrative businessmen and blurred China's credibility in the for- means as planning, export quotas and issuance of export eign trade market. permits. A reduction of export quotas or a ban on To improve the situation, the Chinese Ministry of exports may be imposed on enterprises found to be Foreign Economic Relations and Trade in August of last manufacturing sub-standard products or not in timely year released the Regulations on Strictly Banning the Export of Counterfeit and Sub-standard Commodities compliance with their contractual obligations. and Strengthening the Management of Export Contracts --The need to continue to run well all export-oriented in order to institute a quality control system for the factories and workshops producing standard commodi- whole process, ranging from production to purchase and ties. At the same time, foreign-funded enterprises should storage of commodities of unstable quality. The object be encouraged to manufacture standard commodities of the regulation was to modify examination standards, with their sophisticated technology and equipment. enlarge the categories of commodities subject to legal --Instituting a rigorous reward-punishment system examination and expand the system of quality permits and a quality checking system, using the quality of for export commodities. export commodities and credit as an important condi- The results have been gratifying. The once confused tion for the contracted management of enterprises and management situation in foreign trade has taken a turn for rewarding and selecting pace-setting enterprises. for the better and there are now fewer complaints from At the meeting, 17 enterprises were rewarded for their foreign businesspeople. Strict control over counterfeit excellence, 60 others cited for their close attention to and sub-standard commodities has earned exports dra- quality, and five enterprises criticized for poor quality matically higher profits. The "Yuexiu" cement produ- products. The export licence of the Taiyuan Cotton cer, for example, located in the southern province of Textile Mill was cancelled while other makers of sub- Guangzhou, improved not only the quality of its prod- standard products and enterprises which broke their uct but also the packaging. Despite twice marking up the contracts received varying degrees of censure. price, orders for its product have continued to stream in. These measures indicate China's determination to im- According to a release of the Ministry of Foreign prove the quality of its export commodities and main- Economic Relations and Trade, China's exports in 1989 tain its reputation in the foreign trade market. •

4 BEIJING REVIEW, AUGUST 13-19, 1990 EVENTS / TRENDS Tibet, Stability Jiang urged the Party and gov- iting members of various na- ernmental organizations at all tionalities and religious circles, Is Order of Day levels to pay special attention to maintaining permanent stability this matter and handle it serious- and promoting the development iang Zemin, general secre- ly. He also stressed that it is im- of the national economy as a j tary of the Central Commit- perative to take resolute whole. • tee of the Communist Party measures to crack down on of China (CPC), has reiterated separatists at home and abroad BelJlng Marks PLA's that the central government will who are bent on creating disturb- continue to implement special ances and disrupting social or- 63rd Anniversary policies and flexible measures in der. the Tibet Autonomous Region in On Tibet's economic construc- iang Zemin, chairman of the order to accelerate the region's tion, Jiang pointed out that ef- j Central Military Commis- economic development. forts should be concentrated on sion, reviewed the achieve- There will be no changes to laying a foundation for further ments of the People's Libera- any of the policies made by the development. tion Army (PLA) in a televised CPC Central Committee, the It is necessary to put emphasis speech on the eve of August State Council and its various on agriculture and animal hus- 1 that marked its 63rd anniv- ministries and commissions that bandry, on the construction of ersary. have proved to be beneficial to energy and communications pro- Through 63 years of hard the development of Tibet's econ- jects, and on the training of per- struggle, the PLA has faithfully omy and to the improvement of sonnel, he said. safeguarded the interests of the the lot of the Tibetan people. The Party general secretary af- Chinese people. By surmounting Jiang made his remarks during a firmed the region's strategic pro- untold hardships and enormous July 20-30 inspection tour of the gramme on comprehensive de- difficulties, it has developed it- region. velopment of the valleys of the self and made indelible contribu- The CPC Central Committee three rivers of Yarlung Zangbo, tions to the national defence and the State Council, he said, Lhasa and Nyang Qu, saying the and building of China and the will as always give the necessary programme will usher in a new maintenance of world peace. help to Tibet in manpower, ma- stage in the region's economic de- During the unrest early last terials, finance and other aspects velopment. year, Jiang said, the officers and and continue to mobilize various Jiang also pointed out that up- soldiers of the PLA defended the provinces, municipalities and au- holding the leadership of the socialist system and the achieve- tonomous regions to aid Tibet in Party is the basic guarantee of ments of China's modernization a planned way. the victory of the revolution and and reform with their loyalty During his visit, Jiang listened construction in Tibet and, in the and devotion. to a report on the work of the long run,is the correct choice of The Party chief attributed the Party and government leader- the whole Chinese nation, in- PLA's success to Mao Zedong ship of Tibet, which was present- eluding the Tibetan people. and other senior proletarian re- ed by Hu Jintao, secretary of the He urged that developing edu- volutionaries. CPC Tibet regional committee. cation should be listed as a stra- He said Deng Xiaoping has put He also met with the region's tegic task to raise the scientific forward a series of principles Party, governmental and mil- and cultural quality of the peo- for improving the quality of the itary leaders at and above the ple of various nationalities in Ti- armed forces, principles that will county level. bet. be carried forward from genera- Jiang said the CPC Central Jiang also looked into the im- tion to generation. Committee and the State Coun- plementation of the Party's poli- He pointed out that as China's cil are fully confident of Tibet's cies towards nationalities and re- modernization drive cannot be stability and development and ligions. He visited the Johkang carried through without the con- place great hopes with the re- Temple and the Potala Palace in dition of social stability, it is ne- gion's people~ Lhasa and held talks with reli- cessary to maintain a powerful On the future work of Tibet, gious personalities. armed force and build up a he stressed that stability contin- Further correctly carrying out strong national defence. ues to be a top priority, because the Party's policies towards na- Jiang reiterated that the abso- it has an important bearing on tionalities and religions, Jiang lute leadership of the CPC over not only Tibet but also national said, is the key to strengthen- the army is the prerequisite for unity. ing the region's autonomy, un- strengthening China's defence

BEIJING REVIEW, AUGUST 13-19, 1990 5 EVENTS / TRENDS

1990s will be the session's central topic. To focus a Party session on economic matters, according to Yuan, "indicates the increasing political, economic and social stability in China." "This shows that the Party and government will strive to rally the whole Party and nation to achieve the goals set for the four modernizations," he said. "Therefore, it will be a forward- looking session." Asked why China needs to combine the five-year plan with a 10-year development programme, Yuan said that years of Top Party and 8overmaent leaders lian 8 Zemin and IA Pen 8 (left) consratulate the experience have shown that it is artists on their perfozmance at an evening party to celebrate the PLA's 6~1 birthday not enough to foresee issues over on Ausust WANG JLANM.~. a mere five years when drawing up medium- or long-term devel- forces. glorious tradition of being loyal opment programmes for the na- Only under the Party's leader- to the Party, the motherland and tional economy. ship can the army maintain its the people and to our socialist On the one hand, he explained, proletarian character, serve the system, and spare no effort to some big projects cannot be com- people and preserve a correct build our army politically," Qin pleted in five years. On the other, political orientation under com- said. "We must try to bring even economic development is a con- plicated circumstances, Jiang closer the relations between offi- tinuous process. Thus, in draft- said. cers and soldiers, and the army's ing the five-year plan, the longer Therefore Party leadership ties with the government and the prospects of economic develop- should remain unshaken under people. We should serve the peo- ment need to be taken into ac- all circumstances, he stressed. ple wholeheartedly and see to it count, he said. Jiang also said that unity be- that the PLA is always qualified "While drafting the Eighth- tween the army and the peo- politically." • Five-Year Plan~ we will look into ple's government, and between the trend of development in the the army and the people is an Party Session entire decade of the 1990s," he important factor in maintaining said. The 10-year programme social stability. Will Stress Economy will provide the framework, and On July 31, the Ministry of the five-year plan will be a de- National Defence held a recep- hina's Eighth Five-Year tailed one, but the two will be tion in Beijing honouring the Plan (1991-95) and a ten- linked, Yuan added. PLA's anniversary. Defence c year development pro- The Eighth Five-Year Plan Minister Qin Jiwei, proposing a gramme are to dominate the will continue the effort to co- toast, said that today the PLA Seventh Session of the Chinese ordinate the economy and im- shoulders a great historic mission Communist Party's 13th Central prove efficiency, with priority with China undergoing a very Committee to be held later this given to agriculture. important period of develop- year, a senior Chinese official In opening up to the outside ment. said. world, China will continue to He vowed that the PLA will The date of the session will carry out its economic develop- "always be under the absolute depend on the speed of prepara- ment strategy in coastal areas leadership of the CPC." tions, said Yuan Mu, a spokes- with emphasis on the construc- He described the present- man for the State Council, in a tion of the Pudong development day international situation as July 28 interview with Kazuhiko zone in Shanghai. "changing constantly and highly Mitsumori, Beijing bureau chief Asked whether China will es- complicated" and urged the PLA of the Japan Economic Journal. tablish diplomatic relations with to remain vigilant. The five-year plan and the Singapore in the near future, "We must carry forward the 10-year programme to cover the Yuan said that both China and

6 BEIJING REVIEW, AUGUST 13-19, 1990 EVENTS / TRENDS

Singapore are preparing to do Britain's HK Act. Hong Kong Chinese citizens full this. He added that China shares British citizenship, including the Premier Lee Kuan Yew's hope A One-Way Traffic right of abode in the United that the diplomatic relationship Kingdom. ihe Chinese government will will be established in two to three This action of the British side not accept the British Na- months' time. contravenes the spirit and ess- tionality (Hong Kong) Act Asked if heads of state and T ence of the relevant agreement 1990 adopted by British Parlia- leaders of other Asian countries between China and Britain and ment, said a Chinese Foreign and regions will come to the the Sino-British Joint Declar- Ministry spokesman on July 28 opening ceremony of the l lth ation on the Question of Hong in Beijing. Asian Games in September, Kong and stands to impair Chi- The British Parliament adopt- Yuan answered in the positive, na's sovereignty, said the spokes- ed the act on July 23 to unilater- man. It is unacceptable to the adding that the forthcoming ally change the nationality of a Asiad will be a magnificent Chinese government, the he ad- number of Hong Kong Chinese sports meet designed to promote ded. citizens. The spokesman said the unity, progress and friendship Therefore, the Chinese govern- Chinese government cannot but ment solemnly states that it will among Asian countries. express regret over it. Because China does not have not recognize the "British citi- He argued that the nationality zenship" granted to any Hong authoritative relations with of Hong Kong Chinese compa- South Korea, he said, China has Kong Chinese citizens by the triots is a matter that falls within British government according to no plans to invite South Korean China's sovereignty according to President Roh Tae-woo to attend the act. After the return of Hong international law and the Na- Kong to China on July 1, 1997, the Asiad's opening ceremony. tionality Law of the People's Re- Yuan also said that China be- the United Kingdom will not be public of China. The Chinese in a position to provide consular lieves in peace and stability on and British sides had long the Korean Peninsula when it protection to any Chinese citi- reached a common understand- zens in the Hong Kong Special looks at relations between the ing in this regard in their nego- Administrative Region and other two halves of the divided penin- tiations on the question of Hong parts of China, and no Chinese sula. Kong, and on this basis, ex- citizen will be allowed to use He noted that there are people: changed memoranda with each "British citizens' passport" for to-people relations, including other. entry into and exit from the re- some economic and trade con- In its memorandum, the gion and other parts of China. tacts between China and South Chinese side solemnly pointed This erroneous action of the Korea. out that under China's National- British side on the question of Speaking of the economic ity Law, all Hong Kong Chinese the nationality of Hong Kong sanctions imposed on China by compatriots, whether they hold Chinese citizens will inevitably Western nations after last year's the "British Dependent Territo- cause confusion in Hong Kong crackdown on anti-government ries Citizens' (BDTCs) passport" society--to the detriment of riot, Yuan said they were actual- or not, are Chinese nationals. smooth transition, stability and ly political sanctions and "abso- The British side in its memoran- prosperity of Hong Kong. By lutely unreasonable." He added dum clearly undertook not to looking for "beneficiaries" of the that although the economic sanc- confer on people who were form- act in key posts in Hong Kong, tions have had some negative ef- er BDTCs the right of abode in the spokesman said, the British fects, China is capable of over- the United Kingdom. side is obstructing the implemen- coming the difficulties by itself. Then, in order to honour the tation of the Sino-British Joint Yuan also pointed out that the British commitment, the British Declaration. Houston Summit had the seven Parliament enacted the Hong Therefore, the British side industrialized nations loosen up Kong Act 1985 and promulgated must bear all the consequences the so-called sanctions, but this the Hong Kong (British Nation- arising from its action, the step didn't go far enough. China, ality) Order 1986. However, only spokesman added. The Chinese he added, appreciated Japan's a few years after that, the British government reserves the right to positive stand on the sanctions side went so far as to publicly take further measures in res- issue. And China, he stated, will break its solemn commitment by ponse to the British action at an definitely send high-ranking offi- enacting the British Nationality appropriate time. cials to Japan for the coronation (Hong Kong) Act 1990 in an at- The Chinese government has of Japan's emperor, Akihito. • tempt to accord a number of all along scrupulously abided by

BEIJING REVIEW, AUGUST 13-19, 1990 7 EVENTS / TRENDS the international law. Whatever settlement of the dispute through tion. Moreover, they have object- difficulties it may encounter, the peaceful negotiations." • ed to the sports delegation flying Chinese side will as always ear- derectly to Beijing on a charter nestly implement the Sino- Summer Grain Output flight to the forthcoming Asian British Joint Declaration and ad- Hits Record-High Games but demanded the delega- here to the principle of "one tion fly via Hong Kong, he added. country, two systems." c hina's summer grain output The Chinese government "A detour to Hong Kong costs hits a record-high of 99.35 extra time, energy and money, hopes that the British side will million tons this year, take into consideration the in- and takes much more trouble," 5.595 million tons or 6 percent he said. terests of bilateral relations and more than in the previous record maintenance of Hong Kong's In a bid to further promote the year of 1989, according to the exchanges between the two sides stability and prosperity, and State Statistics Bureau. of the straits and allow the ath- make efforts to develop co- Of the 25 summer grain prod- letes to compete in an atmos- operative relations between the ucing provinces, autonomous re- phere of peace and national un- two countries. • gions and municipalities, all but ity, the spokesman said, the four -- Henan, Shaanxi, Gansu CAAC decided to make a spe- Arms Shipments and Jiangxi m reported increases cial concession to allow chart- Halted to Iraq in summer grain harvests. ered planes carrying the Taiwan Figures provided by the athletes to fly to Beijing via lacing an arms embargo on bureau show that the rapeseed Hong Kong. p Iraq, China has urged Iraq yield totalled 6.408 million tons He pledged that the CAAC to stop its invasion of Ku- this year, 22.1 percent, or 1.159 will handle, according to the re- wait immediately. million tons, more than last levant regulations, all the neces- Li Daoyu, Chinese Ambassa- year's. sary formalities for the chartered dor to the United Nations, told Analysts attributed the bum- planes. However, the chartered a meeting of the UN Security per harvest this summer to the planes whould only be used to Council on Iraq's invasion of increase of sown area, higher carry the athletes, coaches and Kuwait on August 2 that China per-unit yield, better application team leaders, and only on this has consistently maintained that of agro-technology and favour- one occasion, he stressed. disputes between nations should able weather conditions. During the Asian Games there be settled by peaceful means in- The area sown to summer will also be a contingent of Tai- stead of force. grain in the country totalled 32 wan compatriots coming to Bei- Expressing his regret over the million hectares this year, 600,- jing, including news correspon- Iraqi invasion of Kuwait, Li said 000 hectares more than last year; dents. The CAAC spokesman that Iraq should cease its inva- the per-unit yield averaged 207 said he hoped the Taiwan authorities would allow chartered sion immediately and withdraw kilogrammes, 4 percent higher. • planes from one of China's air- its forces to where they were be- lines to fly them direct to Bei- fore the invasion. Mainland Welcomes jing. He expressed the hope that Direct Talwan Flights The spokesman reiterated that Iraq and Kuwait, with which any airline, organization or indi- China enjoys friendly relations, ihe Taibei sports delegation vidual willing to make concrete would co-exist in a peaceful can fly direct to Beijing for contributions to realizing direct way and settle their disputes by T the l lth Asian Games if air services between the two sides peaceful means. the Taiwan authorities clears the of the Taiwan Straits will be en- At the meeting, China voted self-imposed obstacles before it is couraged and supported. on UN Security Council Resolu- too late, said a spokesman from Approval of applications for tion 660 against the Iraqi inva- the Civil Aviation Administra- direct charter flights by Taiwan sion, and on August 5 declared tion of China (CAAC) on organizations during the Asian that it would stop selling arms to July 30. Games will continue to be valid, Iraq. Noting that CAAC has always and the CAAC will extend all A Chinese Foreign Ministry advocated the inauguration of necessary assistance, he added. spokesman also spoke of the direct air service between the two The CAAC will, as always, Chinese government's concern sides of the Taiwan Straits, the give enthusiastic support to all over the invasion, saying that spokesman pointed out that the applications for direct charter China "appeals for an immediate Taiwan authorities are still set- flights presented by any Taiwan end to the military action and for ting up hurdles for its realiza- airlines. •

8 BEIJING REVIEW, AUGUST 13-19, 1990 INTERNATIONAL

part of developing countries' foreign debts. It encouraged commercial banks to cancel part of The United States' 'New these debts.) Economic Partnership' US Concerns Bush's initiative was proposed by Guan Yanzhong at a time when the United States faces enormous challenges and changes in the Western Hemis- n June 27, US President plan catering to those countries phere. It was also a move by the George Bush proposed "a that have taken important mea- United States, as tensions ease in o new economic partner- sures to clear away international US-Soviet relations, to retain and ship" with Latin America, known investment barriers. Bush pro- strengthen its position in Latin as the "Enterprise for Americas posed a new investment fund for America as "backyard." Initiative." Reflecting American the Americas be created. This It was necessary for the United policy trends towards Latin fund, administered by the Inter- States to adjust its relationship American countries in the 1990s, American Development Bank, with Latin American countries to it has caused strong repercussions would provide up to US$300 mil- the needs of long-term strategi- in Latin America. lion per year in grants in response cal benefits, thereby improving Bush pointed out that his initia- to market-oriented investment re- its ability to compete at world tive had three key elements: To forms and progress in privatiza- levels and helping in its move towards developing an economic strengthen trade, to improve in- tion in Latin American countries. trade bloc. It was obvious that vestment conditions and to ease The United States intends to con- the American proposal to build "a the debt burden of Latin Ameri- tribute US$100 million to the new economic partnership" with can countries. fund and will seek matching con- Latin American countries and To encourage the current ten- tributions from Europe and Ja- move towards establishing a free dency of free market reform that pan. trade system was aimed at form- is emerging in the Americas, the The United States planned to ing a powerful economic bloc to United States has formulated a increase its efforts to reduce La- challenge the European unified three-point plan. In it, Washing- tin America's debt burden in or- single market (which will be ton has pledged to co-operate der to create a climate attractive formed in 1992) and Japan. closely with other countries in to new investment. Bush proposed American analysts think that the Western Hemisphere in the the Inter-American Development Washington's Latin American GATT Uruguay Round to realize Bank participate in efforts by the policies are shifting from securi- free and equal trade. The United International Monetary Fund ty issues to economic issues. Cur- States is also ready at any time to and the World Bank in support- rently, the hot spots in Central sign free trade agreements with ing commercial banks' reduction America have already cooled Latin American countries in or- of Latin America's debt burden. down, and major Latin American der to achieve its ultimate goal of Washington would reduce Latin countries are dedicating them- a free trade system encompassing America's official debt of nearly selves to developing economy and the whole of North and South US$12 billion owed to the US national stability. These formed America. And for those countries government. Meanwhile, the Un- important basis for Washington's that are not ready to join a ited States would support the shifting its Latin America policy. free trade agreement, the Unit- creation of environmental trusts Becaose Latin American coun- ed States will negotiate with them where interest payments owed on tries are badly in need of funds to open up their markets and de- restructured US debt would be and their foreign exchange re- velop closer trade relations. made in local currency and set serves are low, they have been While calling on Latin Ameri- aside to finance environmental anxious to get foreign investment can countries to "turn around the projects in the debtor countries in and more loans. They have been conditions that have discouraged the form of preferential loans and quite vocal in their requests to both foreign and domestic invest- commercial loans according to ease their debt burdens and ex- ment," the United States is pre- the Brady Plan. (This plan, an- pand foreign trade. While Latin pared to co-operate with the nounced in March 1989 by American countries placed hope Inter-American Development US Treasury Secretary Nicho- in US aid, they also worried that Bank to formulate a new loan las Brady, was to reduce or remit the United States and other West-

BEIJING REVIEW, AUGUST 13-19, 1990 9 INTERNATIONAL ern industrialized countries would transfer funds and technology to Eastern Europe. There- OPEC Raises fore, Bush's initiative pandered to the economic needs of Latin American countries and showed Price of Crude Oil that the "new economic partnership" was sincere, dispelling their by Chang Qing misgivings and mending relations that had been damaged with the or the first time in four to limit the daily ceiling at American invasion of Panama. It years, the price of crude oil 22.491 million barrels. Though also creates a cordial atmosphere F has been raised to US$21 this number is higher than the for Bush's visit in September to a barrel from US$18. The price current quota of 22.086 million the Latin American countries hike was agreed upon at the re- barrels per day, it will reduce of Venezuela, Brazil, Argentina, cent two-day 87th OPEC (Organ- nearly 1 million barrels of the Chile and Uruguay. ization of Petroleum Export- actual daily output of the first ing Countries) ministerial con- three months of this year, or Latin America's Reaction ference held in Geneva. The dai- about 500,000 barrels of OPEC's current daily output. In general, Latin American ly output quota has also been increased, to 22.491 million bar- It was in 1960 that the oil- countries have welcomed Bush's producing nations took the ini- initiative, believing the plan to rels from 22.086 million. The oil pricing issue was the tiative and set up the interna- build a free trade zone will prov- tional organization of OPEC to ide chances for regional integra- main topic at the conference because of a continuing decline in oppose the plundering of their tion. They also feel the sugges- resources by international oil tions to ease their debt burdens the price of crude oil on the in- capital and safeguard their com- and increase investment were pos- ternational market. The price per mon interests. For 30 years, itive, indicating that Washington barrel had fallen below the offi- members of OPEC have co- had reconsidered and attached cial OPEC price. importance to relationship with This decline caused major eco- operated to achieve great suc- Latin America. nomic losses to oil-producing cesses in a series of world political and economic struggles. But But businessmen and some countries. It is reported that during the 1980s, OPEC's influ- newspapers warned that Bush's each day Ecuador was losing ence shrank because of an in- initiative shouldn't be touted too US $ 850,000; Colombia creasing number of disputes loudly. Some Latin American US$800,000 and Mexico US$1 countries worry over whether within the organization and million. Losses for the Gulf na- member states failing to reach a they will have an equal position tions were even heavier. OPEC and obtain mutual benefits in any consensus on many issues. President Sadek Boussena, the However, OPEC Secretary Ge- future trade bloc encompassing Algerian mines minister, warned North and South America. They neral Ali Subroto has noted that that if OPEC did not take ef- OPEC's success is unrivalled in have also realized that the US fective measures to prevent oil proposals to ease the debt burden the history of third world econo- prices from falling, it would lose mic development because no oth- and increase investment have US$7 billion annually. strings attached. And there are er group of developing countries At the beginning of the Gene- differences in the economic de- has successfully used its natural va conference, the oil minis- velopment level and policies of resources to challenge the pre- Latin American countries, a fact ters were unanimous in believ- dominance of consumer nations that will be an added restriction ing that it was necessary to raise by providing them with the raw in realizing a free trade bloc. Oth- the official price of crude. And, materials they need. er negative factors in realizing after analyzing supply and de- Regarding global consump- the goal include huge US finan- mand and considering the in- tion, Subroto said that the de- cial deficits and the wait-and-see terests of the oil-producing coun- mand for oil worldwide has been approach of US private capital. tries, OPEC's member nations on the upswing since 1986 and Although Latin American co- finally reached a consensus on the world will increasingly de- Muntries hope the "new econo- the price. pend on the oil cartel to cover mic partnership" will become a To guarantee a rebound in oil future demand. He added that reality, they are fully aware that prices on the international mar- nearly 80 percent of the planet's there will be no major changes in ket and the realization of a new proven oil reserves are located in the short term. • benchmark price, OPEC decided OPEC member nations. •

10 BEIJING REVIEW, AUGUST 13-19, 1990 INTERNATIONAL

German Merger Brings Problems by Wang Defeng

A rising inflation rate, en- man marks (about US$9.3 bil- Western goods were first introd- terprise bankruptcies, lion) in loans. The government uced soon gave way to com- unemployment and promised 0nly five billion West plaints and discontent over infla- worsening social order have oc- German marks (about US$2.96 tion, which was almost absent in curred in the German Democrat- billion). East Germany for more than 40 ic Republic since the Deutsch- In addition, the state reduced years. mark replaced the Ostmark in subsidies to enterprises that ex- Price hikes for staple food= July. port to the Soviet Union and oth- stuffs such as meat and bread A state treaty between the two er East European countries. Sur- rose 50 to 100 percent follow- Germanies on their economic viving on state loans, enterprises ing the German currency unifi- merger took effect on July 1, for- have incurred a debt of 130 bil- cation. The price for beef -- al- mally unifying the two curren- lion West German marks (about most a daily necessity for the cies into one common German US$76.96 billion) to the state. Germans -- increased three to mark. All these difficulties have four times. Furthermore, a com- West German commodities forced many enterprises to de- modity can be sold with a 50 to flooded into East Germany, al- clare bankruptcy, raising the 100 percent price gap in different most dominating the markets. In number of the unemployed from shops. major department stores in De- 142,000 at the end of June to In the housing market, it is mocratic Germany, more than 220,000 by the end of July. reported that home rental may 80 percent of the goods were An average of 4,000 to 5,000 increase four to six times be- from West Germany or other people are losing their jobs in ginning January 1, 1991, which Western countries via West Ger- Democratic Germany every day. means an average monthly rental many, elbowing local products Regine Hildebrandt, Democratic increase of 300 marks (US$175) from the shelves. German Minister of Labour and per family. In order to earn more West Social Affairs, said the number The country also saw an in- German marks, the commercial of unemployed will soon reach crease in theft, blackmail and sector, in both wholesale and re- looting throughout July. Bank tail sales, unilaterally terminated 1.5 million. order contracts signed with local More worrying to East Ger- robberies, theft of police wea- pons and neo-Nazi activities production departments. This mans is the fact that some en- caused an excessive stockpile of terprises, which were once con- have also grown considerably, light industrial and textile prod- sidered very promising, have also threatening social security. ucts in local warehouses, result- begun to reduce the number of Observers believe enterprise ing in a serious shortage of float- employees. In a sylvite mine -- bankruptcies will continue and ing funds in enterprises. sylvite is Democratic Germany's so will the number of jobless Meanwhile, Democratic Ger- major hard currency earner -- over the next two years. Some many's agriculture reached a rumours began to circulate in predict that East Germany can state of crisis in July, and the mid-July that half of its 30,000 make its economy, expand again government was forced to prov- miners would be jobless. There- only when West Germany in- ide 800 million West German fore, even those people who have vests more than 50 billion West marks (about US$473.4 million) jobs are worrying about their fu- German marks yearly over the as emergency loans to finance ture. next three or five years. the country's ailing agricultural East Germans are also experi- However, others have cast sector. encing confusion over commodi- doubt over such a prediction. More than 5,000 businesses are ty prices with the introduction of Even Hildebrandt agreed that struggling for survival, burden- the West German mark. The ju- more and more people have lost ing the government with a re- bilance and elation widely hope of a bright future under the quest for 15.7 billion West Ger- felt when beautifully-packaged present situation. •

BEIJING REVIEW, AUGUST 13-19, 1990 11 INTERNATIONAL

World Economy in the 1990s: A Forecast

by Shi Min

ntering the 1990s, the regional trade has reached nearly that of West Germany. In world's economy is under- one-quarter of total world trade science and technology, Japan E going a transition. Several and is expected to reach one- has caught up with the United features characterize this transi- third by the end of this centu~ States in many areas, posing a tion, including the establishment ry. In the 1990s, a large regional grave challenge to the over-all of large trading blocs, who will economic bloc is likely to emerge superiority of the United States. become the driving economic in the Asian-Pacific region. West Germany, meanwhile, is powers, the increasing role of These trade blocs, while adopt- also closely following the Unit- Asian-Pacific nations and the wi- ing preferential policies towards ed States. For many years West dening gap between the devel- member nations, will inevitably Germany has been the world's oped and developing countries. practise some discriminatory pol- biggest exporter. When West and The most prominent features of icies against non-member na- East Germany unite, the com- this economic change are as fol- tions. However, in light of the bined German economic might lows: growing internationalization of will approach that of Japan, The trend towards multi- the world economy, the blocs threatening to become another polarization will evolve into sever- will not become self-contained major rival to Washington. al large regional blocs. closed alliances. The United States' economic The European Community The United States, Japan and Eu- strength has been on the dec- plans to establish a unified single rope will play a decisive role in line. Since 1985, it has been the market in 1992 and, after that, the world economy. world's biggest debtor nation -- extend the market to countries of It is estimated that in the by the end of 1989, its net debts the European Free Trade Asso- 1990s, the gross national prod- amounted to US$600 billion -- ciation and absorb some East Eu- uct (GNP) of develol~d capital- and the biggest trade deficit na- ropean nations into the system. ist countries will continue tO action. However, in terms of its In North America, the United count for about 60 percent of over-all economic power today, it States and Canada began to im- that of the world, and the re- still ranks No. 1 in the world. plement their free trade pact ear- maining 40 percent will be Therefore, in the 1990s the ly in 1989. The United States is shared by socialist countries and United States, Japan and Europe trying to sign a free trade agree- third world nations. will continue to be the dominant ment with Mexico in order to In the 1970s and 1980s, Ja- forces in the world economy. The expand the US-Canadian free pan emerged as a world econo- growth rate of Japan and a unit- trade zone into a North Ameri- mic power. Japan's population ed Germany will continue to be can free trade zone. is only half that of the Unit- higher than that of the United In Asia and the western Pacif- ed States, and its gross domes- States, whose economic position ic, economic and trade links be- tic product was only 20.2 percent will continue to decline. tween Japan and the "four little of the United States' in 1970. But Asian-Pacific nations will contin- dragons" (South Korea, Taiwan, that figure rose to 60 percent ue to lead other areas in economic Hong Kong and Singapore) and in 1989. In terms of per capita growth, becoming the most vigo- other Southeast Asian nations GNP, Japan has already sur- rous region in the world. are increasing rapidly. In recent passed the United States. Finan- Included in the Asian-Pacific years investment and trade be- cially, the world's top 10 banks region are Japan and the "four tween the region's countries and are all Japanese. Japan has be- little dragons." By the end of this areas have expanded dramatical- come the world's biggest creditor century, the average per capita ly and intra-regional technologi- nation: In 1989, its net credits GNP of the "four little dragons" cal co-operation is increasingly reached US$400 billion. In will be close to that of the devel- developing. The volume of intra- trade, Japan has for years been oped countries and their industrial structure will also come The author is deputy director of the the world's biggest surplus na- Institute of Asian-Pacific Studies, tion, US$80 billion in 1987 and close to that of the industrialized Chinese Academyof Social Sciences. US$71 billion in 1989, next to nations. In exporting goods, cap-

12 BE][JING REVIEW, AUGUST 13-19, 1990 INTERNATIONAL ital and teclanology, they will facturing industries will be sup- deteriorate. The continued compete with WeStern countries. plied by overseas companies, slump in the prices of primary In Southeast Asia, where re- mostly the subsidiaries in coun- products will deprive most devel- sources are rich and labour is tries where labour is cheap. Cur- oping countries of a large portion cheap, the average growth rate rently in the United States, one- of their foreign exchange reven- of Thailand, Indonesia, Malay- third of the 4 million spare parts ues, with the exception of oil- sia and the Philippines last year of a jumbo airliner and of the exporting countries which will overtook that of the "four little 40,000 spare parts of a car are benefit from a considerable rise dragons." In the future, they provided from overseas, and by in oil prices. Protectionism will will maintain the momentum of the end of the century, this pro- also become more fashionable, growth through introducing for- portion is likely to rise to one- adding to the difficulties of eign capital, accelerating struc- half. third world countries in export- tural adjustment and improving Although developed countries ing goods. infrastructure. By the end of the are aware that this situation will 3. Third world nations will decade, Thailand and Malaysia make their domestic economies probably stumble in their at- are very likely to become the vulnerable, they cannot avoid it tempts to adjust their economic fifth and the sixth newly indus- in order to gain maximum prof- structures and explore new de- trialized nations in Asia. its. velopment strategies. A big power in East Asia, While promoting the interna- Within the third world, vast China has led the world in the tionalization of economies and differences will lead to an inter- past decade in economic growth. raising international productivi- nal polarization. In Asia, some Though the rate dropped last ty, transnational corporations developing countries, especially year, China's economy will con- put third world countries in a the newly industrialized nations tinue to grow steadily after mea- disadvantageous situation, be- and regions, are witnessing a rap- sures to rectify the economic cause the developed nations be- id economic growth and a drastic order, improve the economic nefit the most -- most of the increase in average per capita in- environment, deepen the reforms consortiums are based in the come. Several of these nations and further open to the outside West. will probably join the ranks of world are carried out. As the economic and technological developed countries. South Asia Transnational corporations will gap between the North and South will continue to confront a slow play a bigger role and the inter- widens, so too will divisions with- economic growth rate, with some dependence of national economies in the developing nations. countries continuing to be the will further increase. The gap in technological devel- least developed nations. For sub- Transnational corporations opment between developed and Sahara African countries, where have played a major role in developing nations will widen in economic development has been world economic development. the 1990s for two reasons. Devel- slow and population growth rap- With the mutual infiltration of oped countries will continue to id, it will be remarkable in the international consortiums and monopolize advanced technology 1990s if they are able to suc- the development of international and developing nations will be cessfully feed their people while joint ventures, a new "boundless impeded in their efforts to devel- keeping the average per capita economy" is taking shape. op in this field because of a lack income at or slightly higher than Transnational corporations are of funds and a low technological the current level. Latin America instrumental in transforming the base. Needless to say, this will used to be able to point to a industrial structures of national result in a corresponding econo- sound economic base. But in the economies by investing funds, mic polarization. 1980s, a debt crisis and mistakes transferring technology and Several other factors will play in economic planning in some monopolizing sales channels. a role in the widening of the eco- countries brought down the eco- This industrial shakeup will re- nomic hiatus: nomic growth rate. In 1989, av- sult in the formation of a new 1. The third world's heavy erage per capita income was international division of labour, debt burden, now standing at down by 10 percent compared in which an "assembly line" con- US$1.3 trillion, and the ensuing with 1979, making the 1980s a necting the parent corporation shortage of funds will continue "lost decade." In the 1990s, if the and the subsidiaries in various to hamper any further expansion downward trend can be reversed, countries is looming. of the economies of developing a positive growth achieved, and In the 1990s, 40 to 50 percent countries. rocketing inflation curbed, the of the spare parts and semi- 2. Developing countries' trad- region will enjoy a certain degree finished products of US manu- ing conditions will continue to of prosperity. •

BEIJING REVIEW, AUGUST 13-19, 1990 I3 CHINA

'ONE COUNTRY,TWO SYSTEMS' The Best Way to Peaceful Reunification

by Wen Qing

ne country, two systems" tion of relations between China In a talk given on April 20, is a scientific concept put and the United States further 1980, Deng Xiaoping stated: o forward by Deng Xiaop- places before us the prospect of "Taiwan is allowed to keep its ing for the peaceful solution to the return of our sacred territo- social system and lifestyle in- the issue of China's reunifica- ry Taiwan to the embrace of our tact. It is even permitted to tion; it is a new policy adopt- motherland and the accomplish- function as a local government ed by the Communist Party of ment of the great cause of reu- and retain its armed forces, as China (CPC) towards Taiwan nification." long as the Taiwan authorities under the new situation. On January 1, 1979, the recognize Taiwan as part of the Standing Committee of the People's Republic of China. It is Formation of the Concept Fifth National People's Con- a local government with a wide gress at its Fifth Session pub- range of autonomy." The "one country, two sys- lished the Message to Compa- In his interview with a Xin- tems" concept was formed after triots in Taiwan, making known hua correspondent on Septem- repeated discussion and careful to the world the cardinal policy ber 30, 1981, the late Ye Jiany- consideration. for reunification of the country. ing, chairman of the Standing On December 15, 1978, while The message stated, "In accom- Committee of the National Peo- speaking about the work related plishing the great cause of reu- ple's Congress, elaborated on to Taiwan, Deng Xiaoping pro- nifying the motherland, we res- the policy concerning China's posed a third round of pect the status quo on Taiwan peaceful reunification, (referred Kuomintang-CPC co-operation and the opinions of people in all to as the 'nine-article statement' to bring about reunification of walks of life there; we adopt rea- for short). Article 3 says, "After the country. According to him, sonable policies and measures in the country is reunified, Taiwan Taiwan's socio-economic sys- settling the question of reunifi- can enjoy a high degree of au- tem, lifestyle and foreign invest- cation so as not to cause the tonomy as a special administra- ment will remain unchanged people of Taiwan any losses." tive region and it can retain its and its army will become local On January 30 the same year, armed forces. The central gov- armed forces. The watchword is Deng Xiaoping told a meeting ernment will not interfere with patriotism, or, in Deng's words, of the Sino-US Friendship As-- local affairs on Taiwan." Article "All patriots belong to one big sociation and the All-America 4 says, "Taiwan's current socio- family." Chinese-Americans Association: economic system will remain The Communique of the "We no longer use the phrase unchanged, so will its way of life Third Plenary Session of the 'liberate Taiwan.' So long as Tai- and its economic and cultural 1 lth Central Committee of the wan returns to the embrace of relations with foreign countries. Communist Party of China, the motherland, we will respect There will be no encroachment adopted on December 22, 1978, Taiwan's reality and its current on the proprietary rights and pointed out: "The normaliza- system." lawful right of inheritance over

14 BEIJING REVIEW, AUGUST 13-19, 1990 CHINA private property, houses, land station neither troops nor ad- more relaxed for Taiwan than and enterprises, or on foreign ministrative personnel in Tai- for Hong Kong and Macao on investments." These two articles wan. Taiwan's party, govern- matters such as the stationing of outhne the basic content of the ment and army departments are troops. Third, the "one country, "one country, two systems" con- managed by Taiwan itself. The two systems" concept is designed cept. central government will reserve to address the issue of Taiwan, In his talks with foreign some seats for Taiwan." Deng but it will first be implemented guests on January 11, 1982, also pointed out, "The systems in deeling with question of Deng Xiaoping summed up for can be different, but only the Hong Kong. Fourth, "one coun- the first time the idea of "one People's Republic of China can try, two systems" is a strategic country, two systems." He said, represent China in international decision. In the course of resolv- "The 'nine-article statement' affairs." ing the Taiwan issue, the con- made in the name of Vice- On October 15, 1984, the cept will be enriched, supple- Chairman Ye (Ye Jianying was weekly Outlook published an ar- mented and brought to per- then vice-chairman of the CPC ticle quoting Deng Xiaoping as fection in accordance with the Central Committee), actually saying, "The 'one country, two different opinions of various means 'one country, two sys- systems' concept is an important quarters. tems.' Two systems are permissi- strategic decision; it is not a ble. They (Taiwan) should not measure of expediency." The Connotations undermine the mainland's sys- On December 19, 1984, when tem, neither should we under- the joint declaration on the issue The contents of the "one mine theirs: Roughly speaking, of Hong Kong was signed in Bei- country, two systems" can be these articles apply to not only jing between China and Britain, summed up as follows: Within the question of Taiwan, but the the "one country, two systems" the unified People's Republic of issue of Hong Kong as well." formula was written into an in- China, the mainland practises Since then, the CPC's concept ternatioiaal accord for the first socialism, while the current cap- for the solution to the Taiwan time. This fact proves the pract- italist system of Taiwan, Hong issue has basically taken shape. .icality of the concept. Kong and Macao will remain In a meeting with British From the above fact it can be unchanged. With socialism as Prime Minister Thatcher in Sep- seen: First, the starting point of the main, the whole country will tember 1982, Deng Xiaoping the "one country, two systems" include the three special admin- publicly presented the "one concept is the solution to the istrative regions under a differ- country, two systems" concept. question of China's reunifi- ent social system. He said, "....with regard to the cation, that is, the solution to The "one country, two sys- recovery of sovereignty over the issues, of Taiwan, Hong tems" is, in the first place, one Hong Kong, it can be resolved Kong and Macao. Second, a country, i.e., the People's Re- by following the 'one country, comparison between the ques- public of China, not "two coun- two systems' formula." tion of Hong Kong and Macao tries." This is the prerequisite, a In June 1983, when meeting and that of Taiwan shows that precondition. There can only be with Dr. Winston L.Y. Yang, they are different in two as- one China in the world, there professor of a university in New pects: first is the difference in cannot be "two Chinas." There Jersey, Deng Xiaoping clearly nature and second is that condi- cannot be "two Chinas" in a dis- noted that "after the reunifica- tions for solution are different. guised form nor can the "inde- tion of the motherland, the Tai- Hong Kong and Macao are a pendence of Taiwan" be toler- wan Special Administrative Re- matter of resuming exercise of ated. gion can have its own independ- sovereignty, which requires ne- With regard to reunification ence, practise a system different gotiation with foreign countries. with Taiwan, a few points have from that of the mainland, and Taiwan is a matter of internal to be made: First, the reunifica- its independent judiciary and affair among the Chinese, which tion of China's mainland with right of final judgment need not is to be resolved through co- Taiwan is China's internal af- reside in Beijing. Taiwan can re- operation between the ruling fair which brooks no interfer- tain its army so long as it does parties of the two sides across ence from outsiders. Second, not constitute a threat to the the Taiwan Straits. With regard China's peaceful reunification is mainland. The mainland will to the terms of solution, they are in the interest of peace in Asia

BEIJING REVIEW, AUGUST 13-19, 1990 15 CHINA and the whole world. With re- and that, after China's peaceful concerned, there are only two gard to China's peaceful reunifi- reunification, the "one country, methods, through force or cation, we welcome efforts, if two systems" would be put into through peaceful means. But any, made by politicians and practice. peaceful means are obviously people of all circles in foreign The policy of allowing Tai- the ideal choice. This is because, countries to promote this cause wan, Hong Kong and Macao to first, China needs a peaceful en- through their own influence. keep the capitalist system for 50 vironment for construction, not Third, we firmly oppose any years means that the mainland a destructive war; second, any country or individual who ob- government will not force its conflict between the compatriots structs or sabotages China's reu- system on them or interfere in in the mainland and Taiwan can nification in whatever manners. their internal affairs. Reunifica- only weaken the Chinese nation, We will never tolerate any plot tion will be based on reality. It to the benefit of outsiders; third, and act to create "two Chinas," does not mean that one side gob- liberation by armed force "one China,. one Taiwan," or bles up the other. Relevant sti- will inevitably consume large the "independence of Taiwan." pulations have been laid down amounts of human, material Fourth, under the principle of in the state's Constitution and and financial resources and one China, the central govern- specific policies. hamper the development of the ment has no objection to Tai- With regard to the varions Chinese nation; and fourth, Tai- wan's economic, cultural and factions and divergent opinions wan compatriots oppose the pos- other non-governmental rela- existing in Taiwan, Hong Kong sible consequences of a war and tions with foreign countries. and Macao, it is up to their res- do not want to change their pre- Taiwan can join non- pective authorities to handle. sent way of life. Peaceful reuni- governmental or certain special- The central government is con- fication conforms with the wish- ized international organizations cerned with only two matters: es of the people on both sides of in the name of "China's Tai- one is that Taiwan, Hong Kong the Taiwan straits. wan" or "China's Taibei," attend and Macao cannot be separated A peaceful solution requires non-governmental international from the motherland; and, se- consideration of the interests of conferences and take part in spe- cond, they should not constitute the various related quarters, in- cific multilateral foreign affairs a threat to the mainland and eluding the Kuomintang and activities, but in doing so it must should not serve as a base to other political parties, organiza- change its flag, anthem and em- subvert socialism and the Peo- tions and people of all strata. Of blem. This policy demonstrates ple's Republic of China. course, the overall interests of the CPC's respect for reality. the Chinese nation are of par- The "two systems" is an im- Theoretical Basts amount importance. Only the portant component of the "one method of "one country, two country, two systems" concept. There is a theoretical basis for systems" can make all this possi- Without the "two systems," the the "one country, two systems" ble. This method enables Tai- concept would be non-existent. concept. wan to return to the embrace of The "two systems" will continue First, it was adopted after the the motherland without suffer- at least 50 years as the Sino- Third Plenary Session of the ing major turbulence and guar- British Joint Declaration clearly llth Central Committee, the antees Taiwan's prosperity and stipulates that after the recovery Communist Party of China res- stability. It helps accomplish of sovereignty over Hong Kong, tored the ideological line of seek- China's (eunification and allows its capitalist system will remain ing truth from facts. At that Taiwan to remain in touch with unchanged for 50 years. After time, the whole Party and the the various parts of the world, the reunification of Taiwan with people of the whole country particularly the capitalist world, the mainland, the duration of were confronted with "three ma- and retain the necessary interna- time during which it will retain jor tasks for the 1980s.": con- tional conditions for further de- capitalism will not be shorter struction, combating hegemony velopment. Although Taiwan is than that allowed for Hong and reunification. Although different from the mainland, Kong. The Communist Party of these tasks cannot be complet- the two can form close ties, com- China has long indicated that ed in the 1980s, they must be plement and help each other for peacefully reunifying the moth- placed high on the agenda. common progress. erland was an established policy As far as "reunification" is Since a peaceful method is ad-

16 BEIJING REVIEW, AUGUST 13-19, 1990 Beijing: Countdown to the Asian Games

The 11th Asian Games to be held from September 22 to October 7, 1990 will be a grand presentation of both participants and the events. After two recent trail-runs, Beijing is ready to play host to visitors from the 38 members of the Asian Olympic Committee and make the Asian Games a success.

The Steroid Testing Centre. It has beer approved by the Inter- nationa.~ Olympic Committee and will be used for medical testing during the i lth Asian Games.

The Computer Centre.

The Im~national Conference Mansion, thd headquarters of the Asian Games Organizing Commit- tee and the press' centre.

J The Gymnasium of the National This newly built pass-over links all the stadiums and gymna- Olympic Sports Centre. siums with the Village of Asian Games,

The Beijing Workers' Stadium where the opening and closing ceremonies and the final football match will be held. The Natatorium in the National Olympic Sports Culture Centre.

The Guangcai Gymnasium, to be use~. fencing competitions, was financed by don~ from individual labourers across the countrj . ,m # "

The uniquely designed Beijing The Changping Velodrome covering a total area of 5,670 square Chaoyang Gymnasium will be metres. jased for volleyball competitions.

The Yuetan Gymnasium will be used for judo competitions.

The Qinhuangdao Sportsfield on the Sea, Hebei Province.

¢r / Waitresses who have received special training will serve the Asian Games.

On March 16, 1990, Presi- dent of the Asian Olympic Council Fahd inspected the construction site of the Asian Games and planted a tree of friendship.

The Board Shoes Dancing, a Zhuang nationality dance group which has been invited by the Asian Games Organ- izing Committee to perform at the Asian Games.

Souvenir cards of the Asian Games. XU XIANGJUN

o i CHINA vocated for reunification, why century, basically accomplish in a socialist country. This is doesn't the CPC promise refrain modernization, that is, the per- a development of great signif- from using force? The Com- capita GNP will reach the level icance. munist Party of China has re- of a moderately developed coun- Fourth, the "one country, two peatedly declared that it does try and the Chinese people can systems" concept is an applica- not want or prepare to use force, live a comparatively affluent tion of the principle of "peaceful there are three main reasons life." Throughout the period, coexistence" for settling domes- why it does not commit itself to the mainland will be in the pri- tic questions. It also provides an give up the use of force: First, mary stage of socialism while example for solving certain in- matters that concern national Taiwan practises capitalism. ternational disputes. dignity must not be handled at That is to say, the "one coun- The peaceful co-existence be- the beck and call of a foreign try, two systems" will persist tween countries~with two differ- country and any promise that throughout the primary stage of ent social systems was proposed would harm national dignity socialism. by Lenin. In 1954, the prime must not be made. For matters The solution of the issue of ministers of China and India in- relating to China's internal af- Hong Kong and Macao will put itiated the Five Principles of fairs, we will not tolerate any an end to the century-old na- Peaceful Coexistence and, in foreign country's indiscreet re- tional humiliation and set the April 1955, the Five Principles marks. Since some foreign coun- stage for the settlement of the were confirmed by the Bandung tries have always cast greedy Taiwan question. Conference. When the principle eyes on Taiwan, we must not Third, the "one country, two of peaceful coexistence was tak- bind ourselves hand and foot systems" represents a devel- en to apply to China's domestic and thus be at a loss what to do opment of Lenin's strategic idea affairs, the "one country, two if foreign involvement should of "taking advantage of capital- systems" concept was put for- occur. Second, the statement is ism." Shortly after the founding ward. On October 31, 1984, also directed against the plot for of New China, the Communist when meeting with Burmese the "independence of Taiwan." Party of China creatively ap- President U San Yu, Deng The "movement for independ- plied this idea when it adopted Xiaoping noted, "Viewed from ence of Taiwan" is making in- a policy of utilizing, restricting international experience, the creasing noise and so we must be and transforming the national Five Principles of Peaceful on the alert. Third, the state- bourgeoisie. Coexistence have a strong vital- ment is aimed at those Kuomin- After 1978, in order to build ity," and, as we further consider tang members opposed to reu- socialism with Chinese charac- such questions, the principle of nification. If we promised to teristics, the Party adoped the 'peaceful coexistence,' when ap- relinquish the use of force, these policy of diversifying the econo- plied to solving a country's people would wax cocky and my with socialist public owner- domestic problems, is perhaps never accept peace negotiations. ship as the mainstay and giving also a good guide because the Second, the "one country, two full play to the role of the in- 'one country, two systems' we systems" concept fits in with the dividual economy, the private have put forward entails yet an- theory on the primary stage of economy as well as Sino-foreign other form of peaceful coexist- socialism and constitutes one joint ventures, co-operative en- ence." characteristic of Chinese-styled terprises and wholly owned for- In the world today, there is no socialism. eign enterprises as necessary lack of precedent for the us~ of According to Deng Xiaoping's supplements to the socialist the armed forces to solve many plan, China's socialist moderni- economy. In addition, special knotty problems. The solution zation should proceed in three economic zones and open cities of the Hong K0ng issue by steps: First,. double the 1980 were established. All these poli- China and Britain demonstrates gross national product (GNP) cies are aimed at making capi- that it is entirely possible to to solve the problem of clothing talism serve socialism. solve certain international dis- and feeding the Chinese people; The "one country, two sys- putes by the method of "one second, redouble the 1980 GNP tems" formula developed the country, two systems." There- by the end of the century so that idea of "making use of bour- fore, the "one country, two sys- the people will become well off; geois capital" by allowing two or tems" concept has enriched the third, by the middle of the next three capitalist regions to exist principle of peaceful coexistence

BEIJ][NG I~EVIEW, AUGUST 13-19, 1990 2I' CHINA and made it possible to avoid sharp domestic and international conflicts. It is not difficult to see that the "one country, two systems" concept will become an China Introduces important factor for long-term stability in the world; it is where .'Green Label" Food its significance to world peace lies. by Sun Panqi Fifth, the law of unity of opposites is the theoretical basis of the "one country, two systems." China's state farms and land reclamation system, with Unity of opposites is the basic some 4.3 million hectares of land under cultivation, has law governing everything in the set up factories to produce nutritious and high quality universe. According to Mao Ze- food. Adopting strict sanitation standards, the dong's explanation, two conflict- producers will soon put the first batch of "green label" ing aspects struggle against and foods on sale.--Ed. depend on each other at one and the same time, and, under given conditions, they coexist in one c hina's state farms and land Socialist China has always entity; under other given con- reclamation system will placed protection of the environ- ditions, one side may be trans- promote for the first time a ment and improvement in peo- formed into its opposite. number of new foo~ds--the so- ple's health as a national policy. Undoubtedly, socialism and called "green label" foods or The government has formulated capitalism are antagonistic, but "green foods"--before the l lth the necessary laws and regula- they also maintain close ties. So- Asian Games to be held in Sep- tions and established testing and cialism is established on the cap- tember this year in Beijing. The supervisory organizations in or- italist material foundation; they green foods refer to foods prod- der to guarantee the sanitation and safety of the nation's food two are linked in the chain of uced under strict sanitary monitoring from the time of seeding, supply. In response to this, Chi- development of human history. during growth and in processing, na's State Farms and Land Re- In a certain historical stage, they storage, transportation and sale clamation Department decided a will coexist and infiltrate each stage so that they are not con- few years ago to develop green- other. The value of the "one tamined. label foods in order to enhance country, two systems" concept is With the industrialization and the level of sanitation in the food that in a socialist country, it is the increased use of chemical industry and raise the public's possible to keep several capital- fertilizers, agriculture faces the consciousness about the environ- ist regions intact, a practice problem of contamination. Un- ment. The effort indicates that which also benefits socialism. sanitary foods pose a great threat China's agriculture, food pro- In short, the "one country, to people's health. To produce cessing and storage technology two systems" is a strategic policy healthy foods, China stresses the will reach a new level. adopted by the Chinese Com- production of highly efficient munist Party in the highest .in- fertilizers which leave no toxic Advantages terests of the Chinese nation and material in the soil, water and encourages the use of organic State farms are large in scale in light of the status quo of the and green fertilizer. The prod- and boast high technology. Af- two sides. Making China united, uction of the green-label foods, ter four decades of construction, prosperous and powerful is the therefore, indicates that China they now can monitor the whole common desire of all the has made progress in this respect. growing process, a key factor Chinese people. The issue of The new foods are expected to in the successful production of Taiwan will eventually be enjoy great popularity. green label food. solved; the "one country, two Currently, China has more systems" concept will become * The author is the director of the De- than 2,000 state farms with 4.3 partment of the State Farms and Land the best method to achieve Chi- Reclamation under the Ministry of million hectares of cultivated na's.peaceful reunification. • Agriculture. land and over 5 million workers

22 BEIJING REVIEW, AUGUST 13-19, 19!10 CHINA

advanced technology for food processing, packaging, storage and transportation. Moreover, the system boasts complete testing and evaluation methods for food sanitation. The Beifang Foodstuff Checking and Testing Centre of Chi- na's State Farms has passed the state's technical appraisal. China's state farms and land reclamation system has also set up an enterprise network to in- tegrate scientific research with production, processing, storage, transportation and market- ing. XUE CHAO Lu Zheuguo (first left), the smdor a8ronomist in Dm~beiwang Farm in BeijJns, discusses the production and variety of vesetsbles with Yang Delu (middle), head of the farm's Measures to be Taken vesetable oH/ce. The green foods pro- and staff. They have become green foods. ject will be developed in three China's commodity bases for sta- Most of the production bases stages: ple farm produce and are thus of China's state farms and land --The stage of development able to provide a substantial sup- reclamation system are located and promotion. During the stage, ply of goods for the domestic in thinly populated areas, far products meeting or exceeding markets. For instance, their com- away from industrial enterprises the standards will be marked modity grain makes up 10 per- and mines. Developed a short with the green label and put on cent of the country's unified pur- time ago, they are blessed with sale. Consumer recognition and chase of grain while their good natural conditions for prod- protection of law will thus be machine-processed sugar and uction such as a good supply of initiated. prawn respectively account for clean water, air and soil. In addi- --The stage of selective es- 10 percent of the country's total tion, the system is eqilipped with tablishment and renovation of output, their fruits 7 percent and Muskmelons in Xbtotmsshn's poIlution-h~.e yes.able production base in Beijin8 the meat products 1 percent. are ready for harvesting. ZHt:NG 5HUFU The state farm system's capacity for food processing is quite good. For example, the Sanjiang Foodstuff Co. of the state, farm system in Heilongjiang Province is the largest plant protein processing factory in the Far East. More than 500 types of the system's products have been rated Quality Products at the state and provincial levels and a dozen of them have won gold medals in international competitions. Some of these products have already reached a high standard of sanitation and can be turned into

BEING REVIEW,AUGUST 13-19, 1990 23 CHINA green food production bases. of raw materials, processing, monitoring stations in majar ci- During the stage, efforts will be storage and transportation and ties and environmental monitor- made to perfect the environmen- testing. The following projects ing stations on state farms. tal monitoring and food evalua- will be also carried out during The development of green tion organizations to form a the stage: establishment of a san- foods is a significant project. China has a vast area of land, guaranteed system for high qual- itary feed base, expansion of a plenty of labour, abundant ma- ity, sanitary food. biological pesticide plant, reno- terial resources and huge poten- --The stage of perfecting the vation of several food processing tial markets. Foreign businesses production process. This in- plants, establishment of green and individuals are welcome to cludes each link of scientific re- foods shops or counters in large co-operate with us in developing search on foodstuff, production cities and the setting up of food production of green foods. •

The Beifang Foodstuff Checking and Testing Centre

by Our Staff Reporter Han Baocheng

n a four-storey building in won fine Quality Product priz- firming that it is up to the green-' downtown Tianjin, scores of es," Liu said, adding that among food standards. I scientists and technical staff 300 checked samples, 95 percent The centre has a staff of 50, are busy conducting sanitation reached the required standard. and 30 of percent of them are tests and evaluation on more Testing is rigidly conducted. scientific and technical person- than 1,000 kinds of foods sent Liu said the centre has four test- nel. Since the mid-1980s, the from all over the country. Qual- ing and evaluation groups for centre has imported from the ified products will receive a bacteria, heavy metal, pesticide United States and Japan many "green food" tag and be placed remains and other harmful ma- high-tech evaluation instruments on sale in Beijing before the 1 lth terials. Each product is double such as high pressure liquid Asian Games to be held on Sep- checked and each test result has chromatograph, gas chromato- tember 22. to be confirmed at three levels: graph and multi-purpose record- In the sample rooms, various mutual check by testing staff, a ing spectrophotometer. Such foods are arranged separately. check by the department heads equipment makes the centre the Fresh, live products are either and the final check by the busi- nation's most advanced foodstuff safety and quality checking sta- checked and tested immediately ness department. tion. or refrigerated for later testing. Liu said that although these "However, our testing and ev- Except for a few crops such as sample products have undergone aluation means are found to fail grain, beans and peanuts, and local checkup, his centre con- to suit development needs," Liu edible mushroom, fish and poul- ducts higher-level examination. said. "The centre will be entry, most are processed products. During my recent visit to the larged. We hope to strengthen They include dairy products, centre, I was shown Shengbao exchange with foreign counter- meat products, beverage, tinned Cola, a beverage sent by Hei- parts." food, tea, wine and flavouring. longjiang Province, which was The centre has collected more Liu Fengyan, deputy director accompanied by a 21-page test- than 6,000 listings of measure- of the centre, said the products ing and animal experiment re- ments used in foodstuff evalua- had been strictly selected before port completed by both the tion by other countries and over they were sent to the centre. provincial Foodstuff Sanitation 200 handbooks on international Each sample product must be Monitoring and Checking Insti- standards. "China's standards are accompanied, by two documents: tute and the Harbin Medical based on both its own conditions one is the data form completed Science University. The report and international requirements," by the local environmental pro- says animal experiments includ- Liu said. "Although China is tection department, and the oth- ing slow and acute poisoning a developing country, its sani- er is the report of quality test- tests, have already been conduct- tation and safety standards for ing by a provincial department. ed. However, Liu said, the centre foodstuffs are no lower than that "Many of them have previously made further tests before con- found in developed countries." •

24 BEIJING REVIEW, AUGUST 13-19, 1990 CHINA

Yellow River Sflt A Resource to Be Ut'dized

by Our Staff Reporter Li Rongxia

n the past 40 years, much pro- The serious water and soil ero- would probably become a desert. gress has been made in water sion on the Loess Plateau creates China's successful attempts to I and soil conservation and in great difficulties for the develop- harness' and develop the Yellow the use of silt at the middle and ment and harnessing of the Yel- River over the past 40 years, upper reaches of the Huanghe low River. Each year about 400 however, show that the river can (Yellow) River. However, con- million tons of mud and sand, be conquered. By means of water tinued efforts by several genera- flowing into the river through and soil conservation, engineer- tions will be required before the thousands of ravines and large ing designs, drainage and utili- river is completely harnessed. and small tributaries, silt up the zation of various flood control The Yellow River is known lower reaches of its course, so measures such as sand dykes and worldwide for its mud and sand. that the riverbed gradually rises other means, the mud and sand Every year, an average of 1.6 and the river becomes a "hanging content of the river has not only billion tons of sand is washed river." Moreover, the flood con- decreased, but the benefits of the down by the rain into the lower trol barriers are less effective be- Yellow River have begun to be reaches of the river, 37.6 kg for cause of the deposits. Some pro- tapped. each cubic metre of water. In jects which have already been comparison, the annual sand vol- completed have large deposits of Water and Soft Conservation ume of the Ganges River in silt and so cannot be fully util- Bangladesh is 1.45 billion tons; ized. In Shanxi Province, for ex- From 1951 to 1954, the gov- close to that of the Yellow Riv- ample, the reservoir storage ca- ernment organized experts, engi- er. However, its water volume is pacity is reduced by 50 million neers and technicians from the higher than that of the Yellow cubic metres every year due to Chinese Academy of Sciences, River, and the sand content in mud and sand deposits. Some tri- the Ministry of Water Resourees, each cubic metre is less than that butaries and irrigation channels the Ministry of Agriculture and found in the Yellow River, only in mountainous areas are com- the Ministry of Forestry to make 3.9 kg. The sand content of the pletely blocked. a comprehensive survey of more Colorado River in the United Soil erosion has brought about than 20 tributaries, each with States is some 27.5 kg per cubic a decrease in cultivated land over 1,000 square km of water metre, only slightly lower than and natural fertilizer runoff and and soil erosion area, in the up- the Yellow River's, but its an- damaged the environment. It is per and middle reaches of the nual sand volume is only 135 estimated that every year more Yellow River with a total soil million tons. The high sand vol- than 30 million tons of nitrogen, erosion area of 370,000 square ume and content per cubic metre phosphorus and potassium fertil- km. Following this, a group of found in the Yellow River is thus izers are drained off at the river's scientific experimental stations unique among the world's rivers. middle and upper reaches. Some for water and soil conservation The Yellow River contains a 430,000 square km of land has work were set up one after anoth- great amount of sand because it been eroded. Given this situa- er in Snide, Tianshni, Yulin and passes through the world-famous tion, the difficulties of harness- other places. The result of these Loess Plateau, an area full of hag the river are clear. steps in the effort to harness the gullies and steep slopes, the sur- At an international flood prev- river has been tremendous over face of which is layered with ention conference held in 1950 the past four decades. loose deposits of yellow earth in India, Western scholars ex- Water and soil conservation is soil ranging from some dozens to pressed a pessimistic view on the achieved mainly by engineering several-hundred metres in thick- possibility of controlling the Yel- and biological measures. En- ness. In summer and autumn, low River. They held that the gineering measures include the rain storms carry great amounts river would never be conquered building of terraced and strip of sand away, an average of and that after several thousand fields on sloping, arable land 3,700 tons of sand per square kin. years, the North China Plain and the construction of mud and

BELLING REVIEW, AUGUST 13-19, 1990 25 CHINA sand dams in gullies and wat- stitute in Mizhi County, also sent ies of the Yellow River will both er diversion projects to chan- people to make inspections, prov- generate electricity and make use nel flood water into fields. Biol- ide guidance and set up an exper- of the sand deposits. ogical measures include the imental site in Quanjiagou Vil- planting of water and soil con- lage. Harnessing the Sand servation trees using improved The water and soil conserva- seeds, developing grass ground tion measures have effectively It has become increasingly cover and spreading the methods stayed mud and sand. Testing in- clear that reservoirs can effec- and technology of crop rotation, dicates that terraced fields can tively intercept water, mud and intercropping and undersowing. reduce the soil erosion by 80 to sand and, by controlling the wat- According to initial statistics, 100 percent and the construction er level at the dam during the in the past 40 years, more than of dams and the selective silting flood season, the mud and sand 100 large and medium-sized re- up of land can intercept 60,000 silted up during the low water servoirs have been built and tons of mud and sand per hec- season can be hauled away. Such about 30,000 silt attesters have tare. An analysis of the tributar- sand and mud can then be rede- either been repaired or built, ies of the Yellow River show that posited on land. This not only readjusts water and sand in the more than 4 million hectares of an average of 297 million tons of reservoir but also develops agri- terraced and strip fields have mud and sand is prevented from cultural production through the been completed, over 3 million entering the river annually. use of the muddy waters. hectares of farmland has been Water and soil conservation In the past, people worried' reclaimed in gullies, some 4.7 has improved basic agricultural, that muddy water containing a million hectares of land has been forestry and animal husbandry great amount of sand could silt planted with trees and 6 million production conditions so much up and block irrigation channels. hectares of land grass, and more that the local residents are not- It was stipulated, therefore, that than 100,000 square km of land iceably more prosperous. In the muddy water that would be in danger of water- and- soil- ero- 1979, per-capita grain output was used to irrigate fields should not sion protected. only 64 kg in Wangjiagou village contain more than 15 percent of The Food and Agriculture Or- of Ansai County, Shaanxi Prov- sand. However, there are often ganization of the United Nations ince. Since 1980, the local people droughts in the hot summer days (FAO) and the World Food Pro- have planted trees on barren hills of Guanzhong Prefecture of gramme (WFP) provided crucial and slopes, totalling 1,200 hec- Shaanxi Province when it is a assistance in improving the con- tares in area, built 200 hectares good time for growing crops. If ditions of the Loess Plateau. of terraced fields and construct- muddy waters weren't used, agri- One project in Mizhi County, ed dams and silted up more than cultural production would be Shaanxi Province, "for example, 50 hectares of land. Since water seriously affected. was funded by the two UN or- and soil erosion has been basical- In the early 1980s, the techni- ganizations. Since 1984, the ly controlled, the village's total cal problem of transporting mud- WFP has given wheat gratis as grain output has increased by dy water over a long distance subsidy to farmers who work on about 80 percent, raising the per- and irrigation was basically the project to treat the Loess Pla- capita grain output to 450 kg an- solved. At present, the volume of teau. The FAO, in addition to nually. sandy water, diverted from the providing funds for the Loess- Building hydroelectric projects Yellow River into several large Plateau Harnessing Research In- on the main stream and tributar- irrigation areas in Guanzhong Prefecture in flood seasons, has LI RONGXIA Slit deposits have turned some places alon8 the Yellow River into farmLand. reached, on the average, 30 to 40 percent, and a high of 60 percent in the Luohui channel. Long- distance channelling of water can reach dozens of km--and 200 km in the Baojixia irrigation area--without any silting up problems. After land is irrigated by muddy water, the soil is improved and there is an obvious increase in production. Tests on the silted

BEIJING REVIEW, AUGUST 13-19, 1990 CHINA

land in Yangjiazhuang along the that the long-used 3 million cu- thus help to protect the dams and Luohui channel found that in the bic metres of the reservoir stor- dykes. At present, more than 70 20 cm-thick silted earth layers age could be maintained. Since culvert gates are used to divert nitrogen increased 71.4 percent 1962, about 15 million tons of the river water and more than 60 and phosphorus 19.7 percent. mud and sand siphoned off from pumping stations have been set Compared with fields not using the reservoir have all been div- up on the lower reaches. As well, muddy water for irrigation, the erted into irrigation projects. more than 200 dredging boats silted fields generally see an in- This not only prolonged the ser- have been put into service. As creased output of 21 to 39 per- vice life of the reservoir but also of now, some 200 million cubic cent. Statistics show, for exam- promoted production. metres of land have been silted ple, an increased output of about From that time on, such meth- up and a more than 600-km-long 55 million kg grain within five ods have been used at other re- dyke reinforced. years in the Jinghe, Luohe and servoirs along the Yellow River, Weihe river irrigation areas in providing the middle and upper A More Arduous Task Ahead Guanzhong Prefecture. reaches with the wherewithal to Some 76 million tons of mud make use of sandy flood waters. It has, of course, been impossi- and sand were used over a five- ble to do all the water and year period, deposits which oth- Usage of Sandy Water soil conservation work neces- erwise would have flowed into sary within a short time because the lower reaches of the Yellow The mud and sand of the Yel- too vast an area is subjected to ' River. low River are abundant in fertil- water and soil erosion on the Such work, however, is not ac- izers, and thus beneficial for eco- Loess Plateau and a variety of complished easily. The method nomic development. problems need to be tackled. used to divert water and sand in In some places, people divert During the past four decades, the early 1950s resulted in a huge rain and flood waters into their only about 100,000 square km of amount of mud and sand block- fields from roads, while some land were controlled; there are ing reservoirs. The Sanmen others intercept rain and flood vast areas still to be harnessed. Gorge Reservoir began to store waters on hillsides. In appro- Moreover, some places, where water and intercept sand in Sep- priate locations, a series of small soft erosion has already been con- tember 1960. By October 1964, earth-filled dams are built in a trolled, need continuous over- the reservoir's total silt volume ditch, forming a series of dams to sight and upkeep. It is estimated, reached 4.2 billion cubic metres, divert sandy flood waters. though, that in the next five or a situation which seriously af- Because the course of the Yel- six decades, even more notice- fected its designed holding ca- low River has changed many able achievements will be made pacity. times over the past centuries, a in water and soil conservation In order to improve reservoir vast saline-alkali land and sandy along the Yellow River valley efficiency, efforts had to be wasteland was all that remained and that there will be decreasing made to deal with sandy water. after the waters receded. During silt waste and increasing produc- The Sanmen Gorge project was flood seasons, to divert the Yel- tion. renovated twice in 1964 and low River water into the saline- The people along the Yellow 1969, in order to increase the alkali lands and to drain off in a River valley should be congratu- flood and sand drainage capaci- timely way, the clear water can lated for controlling and making ties. Measures to store clear and eliminate alkalinity and salinity. use of sand deposits; they have drain muddy waters were taken, Since most silt comes from the solved many problems on their so that the silt was greatly re- surface layer of the Loess Pla- own and made a marked reduc- duced. teau during the flood season, it tion in the volume of silt in the The Heisongling Reservoir was contains a high rate of fertilizer. river. Every year, however', the seriously silted up after only Therefore, saline-alkali land can total volume of mud and sand three years of its completion in be turned into fertile farmland flowing in the river remains the 1959. In 1962, the method to after being silted up. highest volume in the world and store water and intercept sand The low-lying lands behind the quite a lot of them deposit along was changed. It then began to dykes can also be used as grit the river's course, posing a great store clear water, drain off mud- chambers. Through culvert and threat to the lower reaches of the dy water and use the muddy wat- siphon gates, the sandy Yellow river. The solution to the prob- er to cover the land. The average River water is diverted into the lem lies, without a doubt, in the sand drainage rate in the reser- grit chambers and the silt can continued effort of future gener- voir reached over 90 percent, so raise the low-lying lands and ations. •

BEIJING REVIEW, AUGUST 13-19, 1990 27 BUSINESS / TRADE Reduced Investment lion in the first half of this year, With the change of trade form, an increase of 109 percent over the mutual benefit in the bilater- In China the same period last year and, al trade will bring in a still broad- since May of this year, foreign er prospect for co-operation. • According to statistics released investment in China has picked by the Ministry of Foreign Eco- up with a slight increase in in- Developed Oilfield nomic Relations and Trade, vestment items and negotiated China approved the establish- value. With improvements in Jointly With Japan ment of 2,784 foreign-funded en- both the domestic and interna- terprises in the first six months of tional environment, the general A modern offshore oilfield de- this year, an 8 percent drop from trend of increasing investments is veloped in co-operation with Ja- the same period last year. The likely to resume in the second pan, the Bozhong 34-2/40ilfield, value of negotiated investment half of this year. • began commercial production in reached US$2.351 billion in for- mid-July. eign exchange, a 22 percent drop. Located in the southern sea Moreover, some US$1.227 bil- Spot Trade With area of Bohai Bay, the oilfield lion, already processed into USSR, E. Europe .can produce 440,000 tons of oil China, represented a 2.3 percent annually in an exploration area decrease. China will conduct spot ex- of 13 square km. It consists of After the June 4th turmoil in change trade instead of barter two extracting platforms, one China, some Western countries with the Soviet Union and East water floating platform and one suspended their loans and credit European countries starting next floating storage tank which are guarantee, China conducted its year, reported Liu Xiangdong, a linked up by undersea petroleum economic readjustment, limited spokesman for the Ministry of and water pipelines and submar- the growth of its money supply Foreign Economic Relations and ine cables. and paid much attention to the Trade at a news briefing held in It is estimated that the crude quality of foreign-funded pro- late July. oil has high use value due to its jects. All these actions resulted China has already conducted lightness, low viscosity and low in reduced investment during the spot exchange trade with Poland sulphur content. first half of this year. and Yugoslavia, Liu said, adding Petroleum experts noted that Of the 2,784 enterprises, 1,569 that it has reached agreements the oilfield's completion marks are joint ventures, 570 co- on changing trade forms with the first time China's maritime operative enterprises and 645 other countries. After the change petroleum development has solely foreign-owned enterprises. of major trade forms, the barter reached the international stan- Some 90 percent are production trade will.still be reserved, main- dards and resulted in a one-third and export-oriented enterprises ly used in special and border increase in production capacity involving chemicals, machinery, trades with the mentioned coun- for the Bohai Sea Oil Co. electronics and garments. tries' enterprises. China, which began to develop Both the number and value of Statistics indicate that China's the Bohai Oilfield in co-operation Taiwan-funded projects was dou- trade was basically normal with with Japan in 1980, now marks bled in the first six months of this the Soviet Union in the first half its i l th year of operation. The Bozhong 34-2/4 Offshore Oilfield year. For example, the establish- of this year, showing a slight drop was the third after the Bozhong ment of 134 Taiwan-funded en- from the corresponding months 28-10ilfield and the Cheng- terprises was approved in the last year. Meanwhile, there was a bei Oilfield, developed in co- first quarter of this year with ne- large drop in the trade with the operation with Japan accord- gotiated investments of US$117 East European countries. The ing to international technologi- million. Currently, Taiwan is the fact that the unsteady political cal standards. • second largest investor only after situations of the East European Hong Kong on the mainland. countries had not only affected In addition, more than 1,000 mutual trade but also the signing Fenghua to Open foreign-funded enterprises have of new projects with China. In invest_ment Zone already begun operation. So far, addition, many signed contracts the number of operating foreign- have been hard to be carried out. The city government of Ning- funded enterprises nationwide Over the last decade, China's bo, Zhejiang Province, recently exceeds 10,000, most of which trade has shown a great develop- decided to make Fenghua City a have done very well. For inst- ment with the Soviet Union and special investment zone for Tai- ance, exports reached US$2.2 bil- the East European countries. wan and foreign business people

28 BEIJ][NG REVIEW, AUGUST 13-19, 1990 ! BUSINESS / TRADE by giving them preferential treat- Industrial Town for Control Conference will be held ment. The construction area dur- in 1991 in Beijing together with ing the first stage of investment Taiwan Businessmen the International Measurement covers 4 square km. and Control Technology Exhibi- Qian Zihui, mayor of Fenghua, The first Taiwanese industrial tion and Trade Symposium ac- said that in the first stage, the town on the mainland will begin cording to the China State investment zone will mainly im- construction in Shanghai on New Bureau of Technical Supervision. port new technology and materi- Year's Day 1991. The project The conference has been als involved in machinery and will be designed jointly by well- planned for Beijing in 1985 by known architects from the main- electronics, intensive processing, the General Council of Interna- land and Taiwan. biological engineering, building tional Measurement Confedera- The project has a total invest- materials, light industry and tion. More than 1,000 scholars, ment of US$80 million and cov- experts and officials from over 30 foodstuffs and set up 50 to 70 ers an area of 42,724 square Taiwan- and foreign-funded en- countries and regions will come metres. Under the agreement, ar- to exchange research views and terprises. After this, the second chitects and engineers from the phase will begin. conduct discussion, and various two sides of the Taiwan Straits advanced measurement and con- He noted that. investors in this will be responsible for general de- zone are free to choose such in- trol technology and equipment in sign and contracts for tasks to lay the fields of physics, chemistry, vestment forms as land develop- out the pipelines. The first task .ment, joint ventures, solely biology, mechanics, electronics will be to consult, design, exam- and high-technology systems will foreign-owned and co-operative ine and hold a public bid for enterprises, contracting for, leas- be exhibited. construction of two industrial China has made big progress ing, sharing and transferring ex- centres with 16 standard factory isting enterprises, processing sup- in the field of measurement and buildings. The contract to build a control research in recent years plied materials, assembling im- service building will be signed in ported parts, compensatory trade following the establishment of August this year. The two build- systematic networks combining and leasing. ings will be leased or transferred Investors in Fenghua, Qian scientific research with produc- to either Taiwanese or foreign tion and trade. Many civil and said, may enjoy a variety of pre- business people. ferential treatments in addition space technologies have reached Located in the Caohejing New the advanced world level. Since to those granted by the State Technology Development Zone the early 1960s, China has esta- Council and the city of Ningbo. on the outskirts of Shanghai, the blished technological and scien- For instance, enterprises sched- Taiwanese industrial town has tific exchange and trade relations uled to operate for more than a a good infrastructure and more with more than 50 countries and decade are exempt from income than 60 research institutes and regions, and attended and spon- "tax for three years beginning foreign-funded enterprises, all of sored many international activi- from their first profit-making which are engaged in the re- ties. year. Starting in their fourth search, development and produc- A grand gathering on measure- profit-making year, they may be tion of high-tech products. Some ments and control, the confer- world-famous companies such as granted a 50 percent reduction of ence will actively promote ex- income tax. After the expiration the Philips Co. of the Nether- lands, the 3M Co. of the United change and co-operation between of exemptions and reductions, in- China and other countries. As come tax will be levied at a rate States and the Bell Co. of Bel- gium have already made invest- there are many opportunities of 80 percent in line with the for co-operation and investment, current tax rate. ments to set up factories in the zone. • China warmly welcomes foreign Located in the northwest of businessmen to come to invest Fenghua in the Ningbo Econo- and set up joint ventures in mic Development Zone, the new- Beijing to Host China. ly developed investment zone is World Conference This conference together with close to the Iirovincial highways the exhibition, scheduled to be and about 15 km from the Ning- In order to strengthen tech- held on September 6-11 at the bo International Airport. The nological exchanges and co- International Conference Centre zone has a favourable supply of operation between China and in Beijing Asian Games Village is water, convenient communica- other nations in the field of mea- sponsored jointly by China State tions and easy access to the power surements and control, the 12th Bureau of Technical Supervi- nlant. • International Measurement and sion, the China Association for

IIEIJING REVIEW, AUGUST 13-19, 1990 29 BUSINESS / TRADE

Science and Technology and the it exported nearly 1.8 million 420,000 bicycles in the first half Chinese Society for Measure- quartz and mechanical clocks of this year, an increase.~ of 20 ments. and watches, up 36.8 percent percent over the same period last by Liu Jianjun from the previous year. Watch year. This year 1.05 million bicy- moulds, diamond processing, cles are expected to be exported. 'Polar Watch' works of mechanical watches and toys, which are being added to Exports Rise the list of export products have already brought in some 9.2 mil- News In Brief The Polar Watch Group Co. of lion yuan. Last year, the com- Yantai in Shandong Province, es- pany attracted US$1.72 million $ The Sino-Brkish Shanghai tablished in 1987, now be- in foreign investment and com- Yaohua Pilkington Glass Co. comes an export-oriented enter- pleted the establishment of seven Ltd. has earned a profit every prise group with more than 70 Sino-foreign joint ventures, five month since it began operation a subsidiaries exploying 12,000 enterprises are now under con- year and a half ago. Total profit people and nearly 200 million struction and another six joint to date is 16 million yuan. Dur- yuan in fixed assets. Last year, ventures are in the negotiation ing the first half of this year, it it's total output value was 310 stage. Of these, the first trans- earned US$16 million in foreign million yuan, including 31.43 national company, a joint ven- exchange by exporting products million yuan in exports and ture with Canada, the Polar to more than 30 countries and US$6 million in foreign exchange Darong Industrial Co. Ltd., will regions. earnings, increases of 52.8 per- be opened soon. In addition, Po- Located in the Pudong District cent and 20 percent respectively lar has signed more than 30 con- of Shanghai, the enterprise has a over the previous year. tracts and letters of intent with total investment of 430 million One of the 15 important key foreign countries for processing yuan and a designed production enterprise groups in the nation's with supplied materials and de- capacity of 200,000 tons. It is one light industry and a machinery signs and assembling supplied of China's biggest foreign-funded and electronics export base, the parts and compensatory trade. enterprises. company has gradually perfected The production of Polar's best $ As of now, China has its centres for supply and sales, watches according to the sample opened 90 foreign-exchange co- fund accommodation, scientific of an American company demon- ordinating centres across the development, quality test, infor- strated the advantage of wood country. The business volume in mation and education. As of clock manufacturing technology. 1989 amounted to US$8.5 billion now, 140 million yuan has been Last year, more than 30,000 were against US$6.26 billion in 1988. invested in the import of 22 prod- exported, earning about US$1.3 This year, each foreign-exchange uction lines from Britain, the million in foreign exchange. co-ordinating centre has regis- United States, West Germany, •by Lu Yun tered an increase in its business Switzerland and Japan, forming a complete production series volume. from mechanism works, watch China Purchases • Recently, a large fertilizer exteriors and electronic com- WSi factory up to the advanced in- ponents to precision moulds. ternational technical level of the There are now 21 production The Shenzhen Zhonghua Bicy- 1980s was set up in Puyang City, lines which have been completely cle Co. Ltd. (SZB) in Guang- Henan Province. A key project of installed and debugged and be- dong Province recently pur- the Seventh Five-Year Plan per- gun full or trial production. chased WSI, the second biggest iod (1986-1990), the factory is These investments injected new bicycle producting company in designed to produce 300,000 tons energy into Yantai's 70-year-old the United States. of synthetic ammonia and 520,- watch industry and accelerated The United States has always 000 tons of carbamide annually. product upgrading. Last year, the been an important market for The factory imported its main company turned out 2.04 million SZB. A SZB official noted that equipment from the Uhde Co. quartz clocks and 806,000 quartz the purchase of WSI gives the Ltd. of the Federal Republic of wrist watches, ranking first and company a more stable sales Germany and the Fnamprogeppi fifth respectively in the country. channel and further expands its Co. Ltd. of Italy. The highly At present, Polar's products North American market. automated, energy-saving equip- are exported to more than 130 One of the biggest bicycle ex- ment is the first of its kind in countries and regions. Last year, porters in China, SZB exported China. •

30 BEIJING REVIEW, AUGUST 13-19, 1990 BOOKS

Book Reviews & Co., INC. Law were enacted in 1980, a 1 volume, .174 pages lot of tax legislation such as China's Price: US$85 the Income Tax Law for For- Agricultural eign Enterprises has been put ihe Guide constitutes an into practice. At the same China Agricultural Yearbook invaluable reference time, the Ministry of Finance T work for lawyers, busi- and the State Tax Bureau 1989, English Edition nessmen, researchers and aca- have issued hundreds of ad- demics concerned with trade 368 pages 260x185mm Hard ministrative regulations prov- cover and investment in the world's largest potential market. iding detailed interpretation Published by China Agricul- on how to implement these tural Publishing House It comprises the current laws. in Beijing avhilable listing of more than As of now, all tax laws and Distributed by the China In- 400 Chinese laws, regula- some regulations have been ternational Book tions, official notices and oth- Trading Corporation er policy pronouncements is- translated into English and (Guoji Shudian) sued by the central and local published by various publish- governments which are relating houses. However, no ef- O overseas Chinese, for- ed to commerce, trade and fort has been made to sys- eign readers and re- investment in the People's tematically compile and T searchers on China who Republic of China (PRC). translate these legal docu- are concerned with the For the convenience of read- ments. agricultural development of ers, the book also provides Over the past two years, China, the most populous published sources for further though, the Bureau of Legis- country in the world, the En- reference. lative Affairs under tlie State James L. Kenworthy, edi- glish edition of China Agri- Council, the Ministry of, Fi- tor of the book, is a law- cultural Yearbook 1989 is a nance, the State Tax Bureau yer and consultant in interna- valuable and authoritative re- and the China Economic and ference book with concrete, tional trade and investment in Washington D.C. A grad- Financial Publishing House substantial contents. have been working close- Publication of the China uate of Georgetown Univers- ity, he is former professor of ly with the International Agricultural Yearbook in En- Bureau of Financial Docu- glish began in 1985. The main international trade law at the Law Centre of the University mentation of the Netherlands contents of the book are the of Missouri at Kansas City. to translate all Chinese tax same as in the Chinese edi- He spent over two months laws and relevant regulations tion but there are a few in the PRC studying Chinese changes in some columns and related to foreign businesses law and researching Chinese in the narrative style. and individuals into English legal sources for his develop- and publish them in loose- ment of the book. As the leaf form. Foreword states, the Guide is The first installment of the the result of a painstaking ef- loose-leaf Chinese Foreign A Guide to fort. Tax Laws is due this summer. Trade, Investment The publication will be UP- dated with at least two sup- A Guide to the Law, Regula- plements annually.:'Subserip- tions and Policies of the China Enacts New tion inquiries can be ad- People's Republic of China Foreign Tax Laws dressed to the International on Foreign Trade and Bureau of Financial Docu- Investment ince the Law of the PRC mentation, P.O. Box 20237, Edited by James L. Kenwor- on Joint Ventures Using 1000 HE Amsterdam, the thy, Esq s Chinese and Investment Netherlands. Published by William S. Hein and the Personal Income Tax by Lou Xinyue

BEIJING REVIEW, AUGUST 13-19, 1990 31 CULTURE / SCIENCE i

Exhibition of Nuo Culture in Beijing

n exhibition of Nuo culture some female, some portrayed hu- music, costumes and more com- was held recently in a Bei- mans and other ghosts and spir- plex choreography were added, A jing park by the Tongren its. There was power in their increasing the popularity of the Prefecture Bureau and Nuo Dra- strangeness and vivacity. dances. ma Museum of Guizhou Prov- The mask is an important fea- During the Han Dynasty (206 ince. ture of Nuo culture, used for BC-220 AD) Nuo dances evolved Not only were a large number driving away ghosts, eliminating into Nuo dramas, which ab- of Nuo drama masks, religious evil, appealing for good fortune sorbed material from people's paintings, stage props, costumes, and as a central component in daily lives and became rich in books and hand-written scripts Nuo drama. worldly feeling with fewer over- on display, but Nuo priests per- In the plays, the masks can be tones of witchcraft. Mask shapes formed lively dramas, dances ordinary props but may also por- changed from fierce and solemn and acrobatics, including climb- tray religious images. In the totems into images of human ing a ladder of knives. minds of the people, these reli- happiness, anger, sadness and The Nuo culture, which ori- gious masks actually become di- joy. Many mask dances shed ginated from ancient rites that vine after a special rite is held. their religious nature and be- were believed to drive away Incense and candles are lit and came a form of popular recrea- ghosts and pestilence, still sur- all the members of the drama tion. vives in mountainous areas of troupe stand silently before a The religious paintings shown Guizhou in southwest China. sacrificial altar, where the leader at the Beijing exhibition also According to ancient books, sprinkles blood from a rooster's play an important role in Nuo the comparatively primitive Nuo head on the masks, bestowing drama and ceremonial. Portraits rites that existed before the Zhou each with a different name. The of gods, spirits, ghosts and gob- Dynasty (1066-221 BC) basical- masks are then wrapped in white lins are painted in a unique folk ly retained the appearance and paper and solemnly put into spe- style, and hung on walls when a character of witch dances. A cial boxes. Each time these ceremony is held. For research- masks are subsequently used for witch master wearing a mask ers, the paintings are valuable a performance this ceremony is would sing, dance and pray to for the study of Nuo art and the spirits to drive away malign repeated. religion. ghosts. In time, this witch cul- Nuo performances are won- ture retreated from China's cen- A Sign of Prestige derful spectacles. Performers can tral plain but survived in remote climb a 36-knife-rung ladder and Guizhou. The number of masks a troupe •walk on a red-hot cast-iron plate. The Tongren Prefecture of owns is a sign of its prestige. eastern Guizhou is inhabited by Mask carving has thus developed Yet they are only average peas- more than 3 million people of the into an exquisite and important ants who work with other or- Hart, Miao, Dong, Tujia, Gelo art form, as have mask dances. dinary people during the busy and other nationalities. Nuo cul- The Nuo rite handed down farming season. ture still exists in all of Tongren's from the Zhou Dynasty was re- The study of Nuo culture has 10 counties and cities and there fined continuously over the important academic value in re- are Nuo theatrical groups in years. Dances developed con- search concerning the history of nearly all the villages. cerning death and the spirits of China's culture, philosphy, reli- the dead and included appeals to gion and even cinema, as well as Wide Variety drive out pestilence and evil. Eastern culture and human civil- Nuo dances originally imitat- ization as a whole. As a result The carved wooden masks at ed combat between men and an- of the Beijing exhibition this the Beijing exhibition displayed imals and were accompanied by unique culture has become better a wide variety in shape and ex- the beating of drums. After the known. pression. Some were male and Zhou Dynasty, however, vocal by Hong Lanxing

32 BEIJING REVIEW, AUGUST 13-19, 1990 CULTURE / SCIENCE

river dolphins seemed disorient- ed and displayed much anxiety and fear. Under the care of the An Ideal Home for White-Fin Dolphins scientists, however, they gradually became accustomed to their new home and their breathing fter four years of research, therefore, is to provide a less and appetite returned to normal. scientists from the Wuhan threatening environment where Chen Peixun, a professor at Institute of Hydrobiology they can breed naturally. the Wuhan Institute of Hydro- have found an ideal home for In a test of this approach, biology, said that study of the the white-fin dolphin, which is scientists transferred three river three river dolphins would con- threatened with extinction. dolphins, which are closely relat- tinue while public support was This ideal home is a lake that ed to the white-fins, to the lake sought to create better conditions was part of the old course'of the in March. In the beginning the for the white-fins. • Changjiang (Yangtze River) in Hubei Province in central China. Shaped like a crescent moon, deep at the edge and shallow in the centre, the lake is 21 kilo- maetres long and covers an area of Bronze Age: Earlier Than Believed more than 1,300 hectares. The character of the lake water is similar to that of the ihe excavation of an aban- A wooden trough believed to Changjiang, the dolphin's natur- doned copper mine in Ji- have been used for dressing ore is al home, and is reconnected to T angxi Province has pushed 3.5 metres long. At the two ends the Changjiang during the five- the history of bronze-making in and in the middle there are mov- month flood season. China back to the mid-Shang able fenders. The white-fin dolphin (lipotes Dynastry (16th-llth century Liu Shizhong, leader of the ex- vexiUifer) is one of just five BC), more than 500 years earlier cavation team, said the find sup- types of freshwater dolphin still than previously believed. Locat- ports the theory that China could ed near Xiaban township, some alive in the world and has been produce bronze in the middle 30 kilometres northwest of Rui- designated as a protected species Shang period. by the Chinese goverriment. Its chang City. and 4 kms from the In previous archaeological regular habitat is the middle and present Wushan Copper Mine, lower reaches of the Changjiang, the ruins of the Tongling Mine digs, researchers only uncovered where adults can grow up to 2.5 were first discovered in 1988 records of bronze making of metres long. while a highway was being built the late Western Zhou Dynasty Scientists believe that fewer there. (1 lth century--771 BC) period. than 300 of the formerly plenti- Since then, local archaeologists As no bronze production site ful mammals survive in the wild, have excavated an area of 1,800 of the Shang period was found fewer than the number of giant square metres and found pit before this discovery, Chinese re- pandas. In recent years, a sharp props, tunnels, wine jars and searchers had been debating increase in noise pollution result- cooking utensils believed to have whether China's bronze culture ing from increased ship traffic been used by the miners, bam- was introduced from the outside has threatened the survival of boo torches and tools such as or not. the white-fin, which depends on a bronze axe, a chisel, wooden During the excavation, the ar- a natural sonar system to orient shovels, bamboo basket, and a chaeologists have also found re- wooden windlass and hooks. itself in its environment. Many mains of the earliest straw san- white-fins have been killed by The team has identified the re- dals in China. propellers and they could be- mains of tunnels, quarries and One pottery cauldron is 46 come extinct by the end of the an ore dressing plant. century unless prompt action is The site is considered to show centimetres high and its mouth is taken to save them. evidence of the earliest use of 42 centimetres in diameter. It is White-fin dolphins have a low wooden props in tunnels. The big enough to cook food for 20 rate of reproduction and artifi- miners also seemed to have been persons. cial breeding has proven diffi- aware of natural ventilation The Tongling ruins have been cult. The only practical course, techniques. put under the state protection. •

BEIJING REVIEW, AUGUST 13-19, 1990 33 CULTURE / SCIENCE

Discoveries Made at Han Dynasty Palace

eiyang Palace, built more that Weiyang Palace was locat- ments concerning the economy, than 2,000 years ago as ed in the southwestern corner especially the handicraft indus- w the imperial residence of of Changan, the imperial capi- try find arms production, as well the Hart Dynasty, has long been tal five kilometres northwest as court archives. This is author- considered a masterpiece of of present-day Xian in Shaanxi itative and informative material Chinese palace architecture. AI- Province. The palace grounds for the study of the economy, though the original buildings were laid out in a square with administrative structure and lan- were destroyed by war during walls circling the entire com- guages of the period. the late Tang Dynasty, the site is plex. It covered five square kilo- Another government office of special interest to archaeolo- metres, about one-seventh of the was found 400 metres northwest gists, total area of Changan city, and of the Front Palace. Judging According to a recent report, was the largest palace complex in from its location, architectural the layout of the palace com- ancient China. style and the official seals on the plex and location of the original There were about 4~ palaces objects excavated, archaeologists buildings have been basically de- and pavilions on the original site, believe it was the interior office termined. The number of cultur- the Front Palace being the main of the imperial court, an institu- al relics recovered so far, about building. Remains of the Shiqu tion in charge of the court's pro- 100,000 pieces, is greater than at and Tianlu pavilions, north and petty and financial affairs. The any other palace ruin in China. northwest of the Front Palace foundation is one metre above History records that Liu Bang, respectively, are still visible to- ground and is of a very refined the first emperor of the Han Dy- day. They housed the earliest li- architectural style, the most in- nasty, ordered the palace built as brary of the Han Dynasty's cen- tricate structure among Han and the imperial residence soon after tral government. Tang Dynasty ruins. , he founded the dynasty in 206 The foundations of the Front During the excavation re ~ searchers found pieces of in- BC. Such a large quantity of val- Palace, where the emperors scribed wood that had survived a uable wood, gold and emeralds lived, are high above the ground, fire. Some are records of medical were used to build and decorate the northern part reaching a cases and prescriptions that prov- the complex that even Liu Bang height of 15 metres. They show ide valuable information for the felt the project was too extrava- that the palace measured 350 study of ancient Chinese medi- gant at a time when the state was metres from north to south and cine and technology. still in its infancy and the coun- 200 metres from east to west Between the autumn of 1988 try still in a state of war. and consisted of three halls, the and the spring of 1989 archaeol- Weiyang served as the imperi- Front, Middle and Back. These ogists uncovered the foundations al palace of the Han and seven halls were originally built on of a palace tower in the western later dynasties, including the hills and rose above the palace corner of the palace. They are Qianqin (370-394) and Northern walls. the oldest traces of a palace tow- Zhou (557-581). Renovations Another palace site was dis- er yet discovered and are still were made in 841 during the covered 360 metres north of the in good condition. Unlike the reign of Emperor Wuzong of the Front Palace. It is believed to be square-shaped towers in other Tang Dynasty, 1,041 years after Shufang Hall, residence of the palaces, this one resembled the the palace was built. empresses. letter L. The discovery was im- The Institute of Archaeology Eight-hundred and eighty portant to the study of the evolu- under the Chinese Academy of metres northwest of the Front tion of ancient Chinese architec- Sciences sent special work teams Palace archaeologists found the ture. to make a systematic investiga- ruined offices of the Guanshu- Archaeological work continues tion of the ruins in the 1950s. yuan, the administrative organ at Weiyang Palace, which is still Excavation work, however, did in charge of national industry. a treasure house of Chinese cul- not start until the beginning of The more than 30,000 pieces ture more than 2,000 years after the 1980s. of inscribed bones and shells it was built. The excavations have revealed unearthed there consist of docu- by Cui Lili

34 BEIJING REVIEW, AUGUST 13-19, 1990 Feeding the Chickens.

A~T P AGE A Miao Na'cionality Girl.

Hewing a Mountain. Engravings by Gui Huanyong

Gui I-iuanyong, born in Sichuan Prov- ince in 1963, is now a farmer in Qiiiang County o~ the same province. A fine artist, he has been a skilled engraver since childhood, lie likes to paint in simple, yet vivid styles in order to express decorS:lye Tending the Ducks. charac't~sfics unique to his works. ional

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