Proving the Economic En• Links Remuneration to Output Sumption
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state. Photo by Yang Zhigang HIGHLIGHTS OF THE WEEK BeijingR^r VOL. 34, NO. 34 AUG. 26-SEP. 1,1991 Yunnan: China's Anti-drug Outpost CONTENTS • Drug-related crime that had been wiped out in the early 1950s has made its comeback in Yunnan due to the infiltration EVENTS/TRENDS 46 of the neighbouring Golden Triangle drug production base. It has caused great suffering to Yunnan and the repercussions Mainland Reporters in Taiwan at have begun to spread across the country. The comprehensive Last measures taken by the province in dealing with this social Let Soviet People Solve Their Problems problem that has endangered the modernization programme Economists Want to See More demonstrate China's stand on the fight against drugs (p. 16). Bankruptcies Beauty Parlours' Roaring Business Car Production Expected to Rise Foreign Trade Strategy in tiie 90s INTERNATIONAL • In the 1990s, by making use of its comparative advantages, China will build competitive pillar industries and large enter• Hopes Rise for Release of All prise groups to set the stage for active economic and technol• Hostages 7 Libya Changes its International ogical exchanges with countries and regions throughout the Image 8 world, particularly those in the Asia-Pacific region (p. 12). Ties With Japan Strengthened 9 Pakistan Promotes Economic Development 10 Tlie Yanan Spirit Endures CHINA • Yanan in Shaanxi Province, the seat of the Party Central Foreign Trade Strategies in the 12 Committee and the command post of the Chinese revolution 90s Yunnan: China's Anti-Drug during 1937-47, has taken on a new look since China imple• Outpost 16. mented its economic reform and open policy. But the Carrying Forward the Yanan Yanan spirit of self-reliance and hard work has been carried Spirit 22 forward to realize the four modernizations in the country (p.22). TOURISM 26 BUSINESS/TRADE 27-29 Banicruptcy of Losing Firms Calied For FROM THE CHINESE PRESS 30 31 • Though admitting it is a rather sensitive issue that must be CULTURE/SCIENCE 32 34 approached cautiously in a socialist country, Chinese econo• COVER: Drugs are burned under the mists urge the government to "start closure experiments" with eyes of thousands of city residents in some debt-ridden and poorly-run state enterprises to improve Kunming, Yunnan Province. the country's economic efficiency (p. 5). Photo by Li Hong General Editorial Office Published every Monday by BEIJING REVIEW Subscription rates (1 year): Tel: 8314318 24 Baiwanzhuang Road, Beijing 100037 Australia.. .A.$33.60 TLX: 222374 FLPDA CN . The People's Republic of China New Zealand.. ..NZ.$45.00 FAX: 8314318 Distributed by China International Book UK 18.00 English Dept. Tel: 8315599 Ext. 546 Trading Corporation (GUOJi SHUDIAN) USA US$33.60 P.O. Box 399, Beijing, China Canada. ..Can.$33.80 EVENTS/TRENDS Mainland Reporters In Taiwan at Last an Liqing and Guo Wei• feng, the first two main• F land journalists to visit Taiwan since 1949, were warm• ly welcomed and interviewed by the Taiwan and Hong Kong press on landing on the island August 12. Fan, a correspondent from China's official Xinhua News Agency, and Guo from the China News Service were as• signed to accompany two Chinese Red Cross officials who planned to go to visit the 18 mainland fishermen detained in the present circumstances the nalists visited Taizhong (Tai- Taiwan since July 21. Taiwan authorities have not chung) prison where they inter• The 18 fishermen, all from made reasonable and practical viewed the seven fishermen and Fujian Province, were detained revisions to their regulations handed them five letters from following a maritime dispute. concerning visits by correspon• their relatives. Seven of them have been dents from the mainland. Fan and Guo regretted that charged for piracy while the Since the incident occurred, they could not complete the as• other 11 have been sent to Que- families of the detained fish• signed task since the two offi• moy to be repatriated. ermen have been greatly con• cials from the Red Cross Society According to an official from cerned over their situation. The of China (RCSC), Qu Zhe and Xinhua, the mainland's decision fishermen of Fujian Province Zhuang Zhongxi, have not been to send correspondents to Tai• and other coastal areas are keen allowed to enter Taiwan. wan is a special measure taken to know the truth and wondered Based on humanitarian prin• to meet the ardent desire of whether the incident would be ciples, the RCSC sent its Depu• the people on both sides of the settled in a timely and reason• ty General Secretary Qu Zhe straits to learn the facts follow• able manner. and another official Zhuang ing the July 21 incident. Under On August 13, the two jour• Zhongxi to visit the detained fishermen. From the very beginning, the Let Soviet People Solve Their Problems relevant authorities in Taiwan used every means possible to de• spokesman of China's the people of all countries. We lay their visit. After repeated Foreign Ministry made hope and also believe that the ! negotiations, the disputes re• A on August 20 the fol• Soviet people will overcome garding the number of repre- lowing statement on the situa• difficulties, solve their own i sentatives allowed were settled. tion in Soviet Union in res• problems by themselves, However, shortly before the two ponse to questions posed by maintain political stability officials were due to leave Hong correspondents: and achieve economic devel• The changes which have oc• opment. Kong, they weje refused entry curred in the Soviet Union are The Sino-Soviet relations into Taiwan by the Taiwanese its internal affairs. It is the based on the principles of authorities under the pretext consistent position of the peaceful coexistence, equal• that the official^ failed to prom• Chinese government to oppose ity and mutual benefit ise that they wosuld not visit the interference in other coun• and friendship and good- 11 fishermen ini Quemoy. tries' internal affairs and call neighbourliness will continue Qu Zhe said in Hong Kong for respecting the choices of to enjoy unimpeded growth. • that he was disappointed with the Taiwanese authoritites' in- 4 BEIJING REVIEW, AUG. 26-SEP 1,1991 EVENTS/TRENDS sincerity and had lodged a stong According to official statis• who just had cosmetic surgery protest. tics, some 200,000 state enter• on her upper eyelids said. Zou Zhekai, a department di• prises, 40 percent of the total, Goodlooks, the latest trend in rector of the State Council's are running at a loss at present, Beijing, is what more and more Taiwan Affairs Office, stressed as compared with 35 percent by Chinese can now afford to buy. at an August 13 Beijing press the end of last year. Hairdressing, make-up and conference that the decision by Sources close to the State even cosmetic surgery are now the Taiwanese authorities to re• Council said that some major in vogue. turn 11 innocent mainland fish• industrial cities were currently Beauty saloons run by the ermen by repatriation is unac• preparing to start closing some state or individuals abound. A ceptable. debt-ridden state factories but modern hair style, for instance, Such a decision is in fact an they declined to give any de• costs about 80 yuan. This high insult to their personal dignity, tails. cost frightens away most elder• and is by no means compatible It is said that such a move ly and middle-aged people who with humanitarian principles, has the support from the gov• would rather spend less and he said. ernment, which called for a stop keep a relatively conservative Zou urged the Taiwanese au• to the production "of anything hairdo. Young people are not thorities to lift the ban on the that is stockpiled." deterred by the prices. They entry of the two officials at the An earlier report put the val• don't mind spending the money earliest possible date. • ue of stockpiles at 200 billion to make themselves beautiful as yuan (US$37.4 billion) at the long as their income permits. Economists Want to end of last May. Economists Newspapers, magazines and say this is 100 billion yuan too TV programmes often present See More Bankruptcies much. • know-how in this aspect. Once, Beijing TV Station broadcasted rrihe issue of bankruptcy was Beauty Parlours' a face-massage exercise with I raised again after a one- Liu Xiaoqing, a famous film year silence. Economists Roaring Business star, as the demonstrator. urge the government to "start Many Chinese no longer shy closure experiments" with some t is worth spending money away from wearing wigs, which debt-ridden and poorly-run on making yourself pret• was tabu and criticized as a state enterprises. I tier," a 23-year-old woman bourgeois way of living during Though admitting it is rather a sensitive issue that must be approached cautiously in a so• cialist country, the economists say something must be done to improve the country's economic efficiency. They said that without clo• sures, the current major econo• mic problem of debt defaults could not be tackled. China's first law on bankrupt• cy, which took effect in Nov• ember 1988 aftk repeated revi• sions, is designed exlusively for state enterprises. However, no state enterprise has ever gond broke so far, except some cOllectively-owned and township Enterprises. "Competition without bank• The Monita Beauty Parlour in Beijing's Western District was set up five years ago to cater to the need of fashion-conscious customers. All its staff accepted profes• ruptcy is not real competition at sional training. Receiving about 100 customers every day, the parlour has made a all," the economists said.