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. name for itself in the Chinese capital city.

BEIJING REVIEW, AUG. 26-SEP. 1, 1991 5 EVENTS/TRENDS

are needed. The car makers, including Shanghai Volkswagen, which turns out Santana cars, and the First Automotive Works in nor• theast Jilin Province, which as• sembles Audi 100 models, will increase the import of car parts to meet their output quotas. The latest statistics show that China turned out a total of 301,- 400 automobiles between Jan• uary and June, up 33 percent from the same period last year; sales went up 46 percent; and stockpiles, which stood at some 100,000 at the beginning of this Ll HAIBO year, were largely cut down. At the wig counter of Dongan Market in Wangfujing Street of Beijing, a saleswoman This is a sharp contrast with the is helping a customer trying on a wig. The counter is one of the busiest ones in the market. sluggish market a year ago. Yet customers are still the "cultural revolution" build their confidence in career queuing for cars they have or• (1966-76). The majority of wig as well as in finding a fiance. dered. wearers are over 40 who feel A female beautician of Sili- Experts say demand for cars that a wig will help ward off an Beauty Shop in Wangfujing has been strong for years but looming old age. But more and Street said that cosmetic sur• production and sales suffered more young people find wigs gery "requires both artistic and setbacks because of governmen• interesting because they make medical skills." She thinks that tal control over institutional them feel different. people need cosmetics to con• purchasing. Cosmetic surgery is available ceal their defects. In China, nearly all car buy• in many forms. For instance, The cosmetic surgery hospital ers are enterprises and collec• the nose can be made bigger by at the foot of the Western Hill tives instead of individuals. The inserting a silicon strip. Eyelids on the outskirts of Beijing is the central government has kept can be made to have a double first of its kind. Opened in 1957 tight control over public spend• fold, wrinkles removed and under the Chinese Academy of ing in a bid to curb inflation. breasts augmented. A surgical Medical Sciences and in the fol• Officials in the industry agree operation to achieve double- lowing decade after its found• that mainly because control fold eyelids costs 120 yuan, ing,. cosmetic surgery was only was loosened, the auto industry about half an urban worker's performed on injured workers seemed to have recovered in the monthly income. and soldiers. But today, more year's first half from the set• The booming cosmetic sur• patients frequent the hospital back that began in October, gery illustrates the changing out of a wish to look good. • 1989. concept of beauty in China. The However, the office to imple• past decade has witnessed rapid ment the governmental control economic growth due to the im• Car Production recently issued a notice that plementation of reform and Expected to Rise control would tighten again. open policies. The Chinese are Officials wfere uncertain becoming healthier, and this hina's car makers will step about the rest 6f the year and beauty culture is taking things a up production in the re• feared too tight" a governmen• step further — making healthy C maining months of this tal control on ^Jublic spending people look and feel younger year to meet rising demand. would affect tftfe auto market and more beautiful. China has planned to produce again. Young men are boldly joining some 66,000 cars this year, a 56 In fact, production and sales the line of "beauty buyers" in percent rise over last year. But in June showed drops from fi• the hope that a new look would experts say that at least 80,000 gures in May. •

6 BEIJING REVIEW, AUG. 26-SEP. 1,1991 INTERNATIONAL United Nations should play a Ties With Japan Strengthened greater role in building a new international order. They also agree to work for development by Chai Shikuan and prosperity in the Asia- apanese Prime Minister To- operation between China and Ja• Pacific region. shiki Kaifu's four-day offi• pan will not only bring benefits On regional issues, the two J cial visit to China will go to the two countries, but will also sides share identical or nearly down in the annals of Sino- be highly important for peace, identical stands in many fields. Japanese relations as a new start• stability and development in the Both sides welcome the applica• ing point of furthering bilateral Asia-Pacific region as well as in tions of North and South of Ko• ties. the world as a whole. rea to enter the United Nations Kaifu, who left Beijing on a Therefore, Kaifu and the and are willing to exert their ef• visit to Mongolia on August 13, Chinese leaders reached an un• forts for the promotion of relax• described his China tour as "hav• derstanding that the two sides ation and stability on the Korean ing achieved its objectives" will have more frequent politi• Peninsula. and "highly fruitful." His host, cal dialogues and step up co• On the Cambodian issue, both Chinese Premier Li Peng, called operation in various fields. China and Japan voiced their it a "complete success." support for the work of Observers here agree the Supreme National that the visit, the first Council of Cambodia one by Kaifu since he chaired by Prince No• became prime minister, rodom Sihanouk. They marks the full restora• also reiterated their tion of Sino-Japanese willingness to make relations and will have continuous contribu• a far-reaching influ• tions to pushing ahead' ence. They believe that the just and reasonable China and Japan will political settlement of take this opportunity to the Cambodian issue as push their relations to soon as possible. a new level to greet the It was significant for 20th anniversary of the China to announce its normalization of Sino- decision in principle to Japanese relations join the Nuclear Non- which falls in 1992. proliferation Treaty on People here have the very day of Prime noted that during his Premier Li Peng (left) welcoming Japanese Prime Minister Minister Kaifu's arri• 60-hour stay in Beijing, Kaifu in Beijing on August 10. uu IIANGSHENC val in Beijing. Kaifu took out some Japan is the only eight hours to have discussions The two sides also hold identi• country in the world so far to with Chinese leaders on a wide cal or similar views on inter• have suffered a nuclear attack. range of issues. The two sides national issues. In assessing the Therefore, Japan is most con• reached agreements or brought global situation, they believe cerned about the issue of nuclear their views closer after these that following the Gulf war, the weapons. Kaifu described Chi• meetings. , world is moving towards multi- na's decision as "an epochal step Both sides no,w have a clear polarization. They agree that on China's part towards the com• understanding that to live as against the backdrop of the fluc• mon goal of the international friendly and co-pperative neigh• tuating international situation, community to strengthen the nu• bours is in the common interests China and Japan should conduct clear non-proliferation." of China and J^^an. consultations, harmonize their The Chinese side also point• As next-door neighbours, the positions and expand co• ed out clearly that "in princi• two countries are complemen• operation with the view of con• ple" does not mean any precon• tary economically and have deep tributing their share to maintain• ditions; instead, it means that cultural ties. Strengthened ex• ing world peace and stability. China needs to go through legal changes and expanded co• The two sides agree that the procedures first. BEIJING REVIEW, AUG. 26-SEP. 1,1»91 7 INTERNATIONAL

China and Japan are different Japanese diplomatic relations on the basis of the Sino-Japanese in social systems and ideology. has proved that so long as the Joint Statement and the Treaty Therefore, it is impossible for two sides observe the spirit of of Peace and Friendship, they them to share the same stand and mutual respect and seeking com• can steadily push ahead Sino- have the same views on all issues. mon ground while reserving dif• Japanese relations in a deeper The practice in the past 19 years ferences, and strengthen mutual and more comprehensive way. • since the normalization of Sino- understanding and mutual trust Pakistan Promotes Economic Development

by Zhang Xiaodong

ince Nawaz Sharif took off• lion). an impressive move towards a ice as Pakistani prime min• To promote investment in the fundamental change in economic S ister last November, the industrial sector, the government policy. Pakistani government has pur• lifted restrictions on the building At least 20 new companies have sued a new economic policy of industrial enterprises and al• been allowed to issue capital and aimed at reducing dependence on lowed investors to establish indus• be listed on the Karachi Stock foreign aid and developing an trial enterprises except for those Exchange. In addition, the Pak• energetic, effective and interna• involving weapons and ammuni• istani government recently lifted tionally competitive economy. tion, minting of coins and ra• its control over foreign currency The goal is to achieve self- dioactive materials. Investors to attract investments from Pak• reUance. who establish enterprises in rural istani people hving in England, Nawaz Sharif s government has areas will enjoy a preferential tax• the United States and the Gulf introduced a series of economic ation exemption of 5-10 years. countries. This policy is expected readjustment measures to grad• The Sharif government has in• to draw a total of US$12 billion- ually overcome the country's eco• vited bids for the sale of 30 state- US$21 billion of investment. nomic difficulties. It has mapped owned industries. Private sector Pakistan has a labour force of out clear-cut programmes for has been involved in the construc• 32 million. The country's quest to industrialization, privatization, tion of highways. A leading com• become an industrial power takes controlled government spending mercial bank has been denation• strength from the availability of and deregulation, and lifted res• alized and, for the first time in skilled manpower, low cost, stra• trictions on foreign investment Pakistan's history, Pakistani citi• tegic location and a large consu• and trade. zens have been allowed to main• mer base. The country offers a Efforts have been made to rein- tain foreign currency accounts. competitive advantage in terms of vigorate industries and increase Pakistan has also adopted a local costs. Real estate prices in productivity by privatizing state- new financial policy. Under the Pakistan are much lower and lo• owned enterprises. Prime Minis• banking and foreign exchange re• cal technical expertise is available ter Sharif said, "The job of gov• forms, foreigners can purchase at every level. With the country's ernment is to formulate policies. shares of the listed companies own market for consumer goods It is not its job to run industry, at the Karachi Stock Exchange growing fast, it is sure to provide commerce or hotels." "We are (KSE) and can own 100 percent the essential stimulus for indus• rapidly moving Pakistan into an equity in new ventures. "There trial growth. open market. Basically, I want were all kinds of fears, but the It is estimated that the econo• minimal government. A govern• feedback now is very good," Shar• mic growth rate in this fiscal year ment that is small but efficient." if said. "The stock market has will reach 5.5 percent, a compar• The private sector has respond• reached an unprecedented level. atively high percentage growth ed to the challenge by setting up We have already begun to attract considering the country's loss of banks, bidding for airline licences foreign investment." billions of US dollars caused by and telephone networks, building The price index of the KSE the Gulf crisis. Pakistani econo• toll roads and operating ports. It rose by 3 percent in the past sev• mists said that if)^he new econo• is estimated that the investment eral months due to an increase in mic policies are well implement• during the fiscal year of 1991-92 the number of foreign investors ed, Pakistan's economy will make in the private sector will total in the market. The World Bank considerable progress in several 105.4 billion rupees (US$4.58 bil- has lauded Pakistan's reform as years. •

8 BEIJING REVIEW, AUG. 26-SEP. 1, 1991 INTERNATIONAL

Hopes Rise for Release of All Hostages

by Zhang Qixin

'.th the release of British Although Washington was around the hostage issue remain. journalist John McCar• cautious towards the release of Various parties involved in the Wthy, Frenchman Jerome the hostages, it could not hide its hostage problem differ in their Leyraud and American book- jubilance. demands and Israel's position salesman Edward Tracy, hopes "Our preliminary analysis sug• especially is not to be neglected. for the release of all other West• gests there may be some positive Tel Aviv has been refusing to ern hostages held in Lebanon are aspects to this letter," White swap the Lebanese it holds with rising. House spokesman Marlin Fitz- the Western hostages held in Le• US President George Bush is• water said. banon. It insists that seven Israe• sued a statement on August 11 in Private diplomacy and secret li soldiers missing in action in Maine welcoming Tracy's release contacts are active. De Cuellar Lebanon must be part of the hos• and reaffirmed his administra• indicated that he would contri• tage deal. Although reports say tion's determination to fight for bute his share in resolving the that all are dead except one, Is• the release of other hostages. hostage issue. Apart from meet• rael continues to demand that "I think it's got to be good ing with McCarthy, the secre• it receive information about the news for all ... let's hope the pro• tary general has contacted var• missing soldiers as a first step cess will go forward," Bush said. ious parties within the United before negotiating a swap of hos• The hostages have been held Nations. On August 13, after tages. meeting with Iranian and Israeli since the mid-1980s by various Washington and London are officials at the United Nations Lebanese Shiite Muslim organi• exerting pressure on Tel Aviv to zations. For years this problem in Geneva, De Cuellar said he would continue to exhaust all be flexible. In an apparent refer• has been troubling the American ence to governments involved, diplomacy. possibilities to find a resolution including Israel, Bush said, "We On August 6, one of the major to the hostage problem. He des• cribed his talks as "useful" and call upon the governments with Lebanese Shiite Islamic organi• influence" on the issue "to build zations, the Islamic Jihad for the "rather positive." Meanwhile, he upon the progress made and Liberation of Palestine, released has dispatched his senior assis• work for the release of all hos• a statement saying that it would tant to Damascus to consult with tages, regardless of their nation• dispatch an envoy within 48 Syria and Iran. Other countries ality and for an accounting of hours who would carry a letter including Britain are also mak• on freeing hostages to United ing efforts to win the freedom for those who may have died while Nations Secretary General Ja• the remaining hostages. in captivity. I have said that all countries holding hostages ought vier Perez de Cuellar. "I think if there's any overall to release them." To prove its sincerity, the Is• kind of blanket reason to be op• lamic Jihad released McCarthy timistic, it might be that people British Prime Minister John who delivered a letter to Perez de around the world see that there's Major has written to Israeli Cuellar. The key point of the let• a good chance that ancient ene• Prime Minister Yitzhak Shamir, ter said that the Lebanese Islam• mies will sit down and talk urging Israel to release Arab pri• ic organizations would release all peace," Bush said with report• soners to maintain the momen• Western hostages in exchange for ers outside his vacation home tum in the Lebanon hostage Israel's freeing all Arabs it is in Maine. crisis. holding, including 400 Lebanese. "I just hope that we soon wake "We do believe that some im• The letter called: on De Cuellar up in this world and recognize mediate gesture by the Israeli to "make a personal endeavour, that holding hostages is a coun• government in response to to• within the framework of a com• terproductive way to make a day's dramatic development prehensive solution, to secure the statement of policy or for any could be enormously helpful in release of all detainees through• reason," Bush added. the quest for a total release," Ma• out the world." However, many complexities jor said in the letter. •

BEIJING REVIEW, AUG. 26-SEP. 1,1991 9 INTERNATIONAL

Libya Changes its International Image by Wang Xingang

Iraq's invasion of Kuwait on August 2, 1990 broke the subtle balance of power in the Middle East. However, Libya, long renowned for its tough and radical stand, kept a low profile during and after the Gulf crisis, indicating a shift in its foreign policy.

n September 1, 1969, Li• tries, the United States in par• Libya also has changed its bya's • "free officers" or• ticular, followed a high-handed stand on terrorism. When inter• Oganization headed by Col. policy on Libya, accusing her viewed by Al Mussawar, Ghad• Muammar Ghaddafi overthrew of having a clandestine chemi• dafi, reversing his previous den• the Idris Monarchy in a military cal weapon factory and bolster• ials of any involvement in coup and established the Libyan ing terrorist activities. Washing• terrorist organizations, frankly Arab Republic. Since then, Li• ton saw Libya as its number one acknowledged that Libya had bya has upheld two banners in its enemy in the Arab world and mistakenly regarded the actions foreign policy—armed liberation took several so-called "punitive" of some terrorist organizations of Palestine and Arab unity. military actions to force Libya as part of the Arab nationalist With its vast territory and econo• to change its policy. The United movement and thus supported mic strength, Libya has played a States even wanted to kill Ghad• them. He said that when he major role in the Middle East dafi, but failed. Libya adopted found terrorism serving only to political arena. an equally tough policy towards create terrors, he suspended the Some Arab countries, howev• Washington. support for these organizations. er, had different opinions about When George Bush entered No terrorist activities were help• Libya's radical "green revolu• the White House, Libya began to ful for the Arab cause, he added. tion" and kept a wary eye on the deal with the West and especially He reiterated that he would no call for Arab unity. the United States in a practi• longer support them. Since the late 1970s, especially cal way. Early last year. Green In response, the Bush adminis• after the mid-1980s, the gap be• March, the official weekly maga• tration, while maintaining pres• tween Libya and other Arab zine, quoted Ghaddafi as saying sure, relaxed tensions by allow• countries widened as a result of that the Bush administration is ing US oil companies to return to the increasingly louder cry for a wise and mature government. Libya. peaceful settlement of the Mid• Bush is familiar with inter• dle East problems and the ever- national politics and will not fol• increasing influence of the mod• low Ronald Reagan's foreign pol• Friendly to Neighbours erate factions in the Arab world. icy in dealing with Libya, the Libya's foreign policy has been Meanwhile, with the waning of magazine said. According to the most effective in improving rela• Soviet clout in the region, Libya magazine, Ghaddafi said -Libya tions with other Arab and neigh• lost its reliable "ally." Beginning was willing to invite United bouring countries. It restored in the late 1980s, Libya began States and Soviet Union firms to links with Iraq. Libya was one pursuing a flexible and practical jointly exploit the rich oil and of the few Arab countries that foreign policy. gas resources and participate in backed Iran during the Iran-Iraq the water conservancy projects. war, which led to a deep feud Libyan Foreign Minister also ex• with Iraq and caused dissatisfac• Relaxation with the US pressed the hope for renewing its tion with other Arab countries. In the 1980s, Western coun• ties with Washington. During the last stage of the war,

10 BEIJING REVIEW, AUG. 26-SEP. 1,1991 INTERNATIONAL

Iran repeatedly rejected the me• Union together with Morocco, against Iraq by other Arab coun• diating efforts by Libya. Libya Tunisia, Algeria and Mauritania tries; instead it followed the turned to stand behind Baghdad in 1989. same policy as the other Greater and restored diplomatic ties with Maghreb Union countries. it in 1987. Closer Ties with Egypt Although the Maghreb region Libya has improved relations was full of anti-American fer• with the Palestine Liberation Or• In recent years, Libya has vour, Libya carried out a pract• ganization (PLO). After the sign• readjusted its relations with ical foreign policy. It opposed ing of the Camp David Accord Egypt. After Ghaddafi came to both Iraq's invasion and annexa• in 1979, the PLO had not en• power, he was keen on Arab un• tion of Kuwait and the US-led tirely cut its political links with ity and wanted Libya and Egypt military involvement. It pro• Egypt. As a major member of to merge into one country. On posed to settle the disputes be• the rejectionist front and having August 2, 1972, the two coun• tween Iraq and Kuwait within long been antagonistic towards tries decided to realize incorpor• the framework of the Arab Egypt, Libya could not tolerate ation within a year. world. this. The rift between Libya and However, the intractable dif• the PLO deepened. In February 1991, sponsored ferences on the leadership of the by Algeria, eight countries in• Faced with the mounting cry proposed union and other related cluding Libya, Morocco and Jor• for a peaceful settlement of matters culminated in the border Arab-Israeli conflicts in the Mid• dan convened a meeting in Al• war in 1977. In November of the giers and issued a political state• dle East since the mid-1980s, Li• same year, when Egyptian Presi• bya lost no time to actively better ment concerning the post-Gulf dent Anwar Sadat visited Israel, war situation in the Middle East. its relations with the PLO. In Libya and Syria immediately 1987, Libya allowed the PLO to The statement asked the multi• severed relations with Egypt arid national troops to immediately re-open its office in the country formed the "rejectionist front." and, since then, the PLO Chair• withdraw from the Gulf region. After the Arab summit meet• man Yasser Arafat has visited It called on the United Nations ing in Amman in 1987, most Libya more than 10 times. In Security Council to lift its em• Arab countries restored relations addition, under the mediation of bargo against Iraq and the Arab with Egypt. During the 1989 spe• Libya, the PLO and Syria have world to cope with the challenge cial Arab summit meeting in improved their relations. of Israel. It reiterated that the Casablanca, Egypt returned to Likewise, Libya changed its at• Palestinian problem was the core the Arab League that helped titude towards the Arab League maintain unity of the Arab of the Middle East problem and and its member states. Ghaddafi that the Palestinian people had abandoned his ptevious actions world. These changes created condi• the right to establish their coun• of sending low-ranking officials try on their own land; it called to the Arab League summits to tions for Libya and Egypt to re• new their relations. Under the for a UN-sponsored Middle East show his boycott of the league; peace conference attended by the instead, he personally attended mediation of Algeria and Moroc• co, Tripoli and Cairo increased five permanent members of the these summit meetings. UN Security Council and coun• Libya improved relations with their exchange and contact. At first, they reopened their borders tries concerned, reaching a com• the Arab monarchy states such prehensive, permanent and just as Saudi Arabia, Jordan and and resumed communications. settlement of the Middle East Morocco. It pursued a good- Then, Ghaddafi and Egyptian question on the basis of equality. neighbourly policy towards Tun• President Hosni Mubarak ex• isia and Sudan, normalizing re• changed visits and held many Various signs indicate that Li• lations with them. It stopped talks. Ghaddafi said that "Egypt bya is adjusting its foreign policy financing Lebanese left-wing is a friendly neighbour. It was and rebuilding its international factions in the civil war and sup• obsessed by economic woes and image. The Gulf war broke the ported Syria's efforts for promot• thus it needs the help of all Arab pattern of internal relations of ing the peace process in Lebanon. countries." the Arab world. The post-war re• Additionally, it put an end to alignment of forces will last for some time, during which the for• the 15-year-old territorial dis• Prudent to Gulf Crisis pute with Chad in a bid to create eign policies of all parties will a good external environment. During the Gulf crisis, Libya present new features. Attention Putting aside bitter feelings, Li• did not react furiously to the will be focused on how Libya bya formed the Greater Maghreb diplomatic and military actions develops its foreign policy. •

BEIJING REVIEW, AUG. 26-SEP. 1,1991 11 CHINA

Foreign Trade Strategies in tlie 90s by Mao Liben

In the 1990s, China, making use of its comparative advantages, will build competitive pillar industries and large enterprise groups for actively conducting economic and technological exchanges with various countries and regions throughout the world, particularly those in the Asian-Pacific region.—Ed.

ince China introduced the of Chinese products in the inter• open policy in 1979, its national market. S exported-oriented economy Entering the 1990s, the growth has experienced a sustained de• of the world economy has slowed velopment. In 1990, China's total down. The United States, Can• export volume reached US$ 62.1 ada and some West European billion, roughly one-fifth of the countries have experienced a per• total sales volume in the domes• iod of recession. And the pro• tic market, i.e., out of every five cess of forming regional econo• yuan's worth of commodities mic groups has speeded up. On produced, one yuan's worth was the one hand, countries within a sold abroad and four yuan's region are preparing to share a worth was sold in China's own unified market and eliminate market. The country's main for• Mao Liben HANG GONG tariffs, thus removing barriers to eign market was in Asia, where investment 35 percent. Japan the flow of commodities, funds 70 percent of its exports were contributed the most in foreign and personnel and strengthening sold. Of the total foreign mar• loans, reaching 40 percent of the economic co-operation; on the ket, Hong Kong accounted for total. In terms of foreign in• other hand, it is becoming more 40 percent, Japan 16 percent, the vestment, businessmen in Hong difficult for other countries to United States around 8.5 percent Kong and Macao accounted for enter the market. The European and West European countries 17 the main share, totalling 65 per• Community (EC) is actively lay• percent. cent. ing the groundwork for the During the five years from In the past decade and more, building of a unified market in 1986 to 1990, China attracted China introduced a great deal of 1992; the first phase of the Euro• US$ 46.09 billion in foreign in• advanced technology from Japan pean Monetary Union began in vestment. In the same period, and other Western countries in July, 1990, and funds began to China's total social investment in many fields, ranging from micro• circulate freely among the EC fixed tssets reached 1,974.6 bil• electronics, computers and air• countries. Discussions and pre• lion yuan. In terms of the ex• craft manufacturing to house• parations for the American Com• change rate of that time, foreign hold electrical appliances, tex• munity and the American Com• investment accounted for nearly tile, dyeing and printing, and mon Market are also under way one-tenth of the nation's total so• food processing. This has im• while negotiations between the cial investment. Of the total for• proved China's production ca• United States and Canada, and eign capital used, foreign loans pacity and product quality, between the United States and made up 65 percent, and foreign promoted the development of Mexico are being conducted. So the national economy, raised the on the one hand, with the slow• The author is head of the Liaison ing down of world economic Department of the All-China Federa• people's living standards and growth, the growth of world tion of Industry and Commerce. strengthened the competitiveness

12 BEIJING REVIEW, AUG. 26-SEP. 1,1991 CHINA trade is also decreasing; and on has been one of the regions the other, the formation of eco• achieving the most swiftest eco• nomic groups is intensifying nomic growth in the world. In trade protectionism between dif• the 1990s, the region will contin• ferent regions. Such is the severe ue to sustain its economic growth international economic situation and press on, full of vitality. The which China faces today. unification of Germany, the for• The Chinese economy has mation of the European Com• forged close relations with the mon Market, and the combina• world economy in terms of mar• tions of West European capital kets, funds and technology. The and technology with the natural world economic situation will resources and markets of the So• unavoidably affect the develop• viet Union and Eastern Europe ment of the Chinese economy. In will all forcefully promote the the present international econo• economic growth of Europe. But mic environment, what strategies Europe is far away from China should China adopt? and has closer relations with 1. Develop foreign economic re• American countries. China, on lations and trade in an all-round the contrary, has closer relations way, with the emphasis, to be laid with Asian and Pacific countries. ZHANG JINCMING on the Asian-Pacific region. First, China neighbours these The tower-like crane, manufactured by The United States and West countries and has convenient ac• the Jianglu Machine-Building Factory European countries are without cess to them. Having a long• in Xiangtan City, Hunan Province, is to question important trade part• standing relationship with be exported to Southeast Asia. ners of China and sources of adv• China, many of these countries anced technology. Some West were influenced by Chinese cul• from north to south, differ in European countries have also ture. Second, overseas Chinese degree of economic develop• supplied considerable govern• have a strong influence on indus• ment; China, with its vast terri• mental loans under favourable try and commerce in this area tory, is connected to both north conditions. The Soviet Union and enjoy harmonious relations Asia and southeast Asia. In ac• and East European countries are with the local people; all these cordance with this situation, ' large markets for China's textiles can be of assistance in develop• China may develop a closer and and light industrial products. Af• ing economic and trade relations smaller regional economic co• rica, the Arab countries and La• with these countries. Third, as operation. For example, south tin America are markets with compared to other countries in China, Hong Kong and South• great potential. While develop• the region, China has a stronger east Asian countries may devel• ing economic and trade relations foundation in industry, science op a southern China economic with these countries, emphasis and technology. sphere centred around Hong will be laid on the Asian-Pacific In the great Asian and Pacific Kong and based on Guangdong- region, and East Asia in particu• economic sphere, China will ac• lar. Because 70 percent of Chi• tively promote and take part Hong Kong economic co• na's commodities are sold in Asia in the development of the East operation. Shandong Province, and 60 percent of its foreign cap• Asian economic sphere and par• East Liaodong Peninsula and ital comes from Asian countries. ticipate in the activities of the north China may strengthen The region has become China's region's economic co-operative their economic ties with Japan, base for further developing its organizations, including the Korea (DPRK) and South Korea foreign economic and trade rela• Asian Development Bank. China to forge a northeast Asian econo• tions. will seriously study the Malay• mic sphere. Fujian Province may The Asian-Pacific region. East sian proposal to establish an further develop its economic re• Asia in particular, and Europe Eastern Asian Common Market. lations with Taiwan. Shanghai, will enjoy the most rapid econo• In line with the situation that and Jiangsu and Zhejiang prov• mic development in the 1990s countries in the region have inces, drawing on their superior and offer plentiful economic and great disparities in economic de• industrial base and advantageous trade opportunities. Since the velopment, China will work out personnel resources, may pay 1960s, the Asian-Pacific region feasible methods to undertake special attention to developing has witnessed a relatively high economic co-operation. In other economic relations with finan• speed of economic growth and words. Eastern Asian countries. cial groups in Japan and Western

BEIJING REVIEW, AUG. 26-SEP. 1,1991 13 CHINA countries. These ideas can .be these reasons, China must put culture, language and customs worked out in detail after a care• special stress on developing eco• with mainland Chinese, there• ful research and exploration. nomic co-operation with Japan. fore Taiwan and Hong Kong Hong Kong is the most impor• 2. Make full use of China's eco• businessmen are inclined to tant gateway for China's econo• nomic advantages to establish pil• transfer their factories to the mic and trade relations with the lar industries capable of compet• mainland when there are com• outside world and a bridge con• ing in the world market. petitors with similar conditions. necting the economy of China China not only has abundant Combined mainland's rich hu• with that of other countries. human resources with its large man resources and Hong Kong Scrupulous attention will be paid numbers of ordinary workers but and Taiwan's capital, technology to doing the preparatory work also a strong contingent of scien• and economic network, China's well for the shift of sovereignty tists and technicians. Emphasis labour-intensive industries will in 1997 in order to main• enjoy competitive strength tain the stability and pros• in the international econ• perity of Hong Kong and omy. Besides, China will keep its status as an in• make great efforts to de• ternational financial and velop such knowledge- trade centre in the Far intensive industries as com• East. It will continue to puter software, informa• play a significant role in tion and technology ex• the development of China's ports. China once made economy. breakthroughs in atom Taiwan and the main• bomb, rocket, man-made land are complementary satellite and other sophisti• economically. Efforts will cated technologies. Today, be made to have direct it will continue to make trade, transport and mail PAS JIAMIN breakthroughs in many in• services and further devel• Products of the Zhongshan Petrochemical Steel-Tube dustrial and agricultural op economic and trade rela• Factory have reached British technological standards fields, including non- tions between the two sides and entered the international market. ferrous metals, ship• across the Taiwan Straits. building, textiles, and spe• This will not only help to prom• will thus be laid on the devel• cial agricultural products, and ote the common prosperity of the opment of labour-intensive and turn them into China's pillar in• mainland and Taiwan and but knowledge-intensive industries, dustries. For this purpose, China also increase the mutual under• such as light industry, textiles, will work out development plans standing between the people ac• electronics, machine-building, and favourable policies and rally ross the Straits and promote an arts and crafts, contracting of the country's forces to develop early reunification of China. foreign construction projects and th^ese industries and products. Japan is the most vigorous the export of labour. 3. Form a group of powerful among the developed countries Now is the right time to devel• enterprise groups to participate and the economic centre of the op labour-intensive industries in in international economic compe• Asian-Pacific region. With the China. Because of increase of la• tition. decline of the US position in the bour cost resulted in the increase China's foreign economic and world economy, Japan will play of wages and monetary values, trade system has its obvious an increasingly significant eco• the newly industrialized coun• drawbacks; there are too many nomic role internationally and in tries and regions in Asia such as enterprises on too small scale, Asian-Pacific economic affairs Hong Kong, Taiwan, South Ko• lacking strength. Under differ• in particular. At present, coun• rea and Singapore, are all under• ent departments, these enterpris• tries in the Asian-Pacific region taking structural readjustments. es are cut off relevant trade bus• are all striving to increase their This will result in a transfer of inesses. On the contrary, many exports to Japan to compensate their labour-intensive industries developed countries have well- for the decrease of their exports to areas with lower labour costs. known powerful enterprise to the United States. Japan has a Hong Kong and Taiwan have groups. They always have a com• significant share in China's for• strong social, economic and cul• prehensive trade company in the eign trade, as well as in its in• tural ties with the mainland, and lead. This kind of trade agency troduction of foreign capital. For people there share a common usually has a distribution net-

14 BEIJING REVIEW, AUG. 26-SEP. 1,1991 CHINA work throughout the world and to absorb capital from broad, but is able to deal with changes in up to now it has not drawn up international markets. The trade relevant laws concerning corpor• company takes charge of market• ations, banks, negotiable securi• ing the products and purchasing ties, etc. The issue and trade of raw materials, spare parts and securities and the administration components. The productive en• of stock exchanges still do not terprise only produces according have a legal foundation. Moreov• to orders. There is a financial er, at present, only Shanghai and company within the group in Shenzhen have stock exchange charge of the collection and allo• institutions and they are both in cation of funds. With the trade, the primary stage of develop• production and finance depart• ment. ments in the same group, it To cite another example, is easy to co-ordinate their re• China plans to attract foreign lations and various interests. businessmen to develop adjoin• China will take these exper• ing tracts of land. But it still does iences for reference, breaking not have a complete legal system barriers between different re• in regard to land and real estate. SHEN HAIBING gions and departments in line More over, real estate markets Trial tillage machines manufactured by with their economic relations are still underdeveloped and lack Dafeng Machine-Building Factory in and establish a number of com• specific institutions for taking up Jiangsu Province are being loaded for prehensive enterprise groups the relevant measurement, eval• export to Indonesia. which combine trade with indus• uation, notarization and trade try and are able to participate in procedures involved. one, however. First, it is neces• international competition. This The deepening of the econo• sary to choose which field to will impose a far-reaching im• mic reform involves the esta• open. For example, to open the pact on the development of Chi• blishment and perfection of rele• market of integrated circuits will na's export-oriented economy. vant laws, regulations, markets play a significant role in promot• China has already established and institutions. To further at• ing the development of China's some enterprise groups, but their tract foreign capital, China has computer and micro-electronic relationships of jurisdictions, to speed it up and establish an technology. But to open the mar• complicated and ill-defined, economic environment which ket to foreign wines and cigar• should be improved. will enable foreign businessmen ettes will have no positive result. 4. Speed up the restructuring of to invest and do business ac• Second, it is necessary to the economic, system and further cording to common internation• choose 'the right time. China improve the investment environ• al practices. must protect its home market for ment. 5. Further open domestic mar• some key industries for a certain In the past 12 years, China has kets for some products and ser• period of time and not open it built many ports, docks, airports, vices. before they have laid a solid highways, power plants and tele• To balance exports and im• foundation. communication projects and pro• ports, further increase the export Third, limitations will be set mulgated a series of regulations, of Chinese products and attract the opening of some markets. laws and preferential policies foreign capital, China will furth• For example, foreign cigarettes, concerning foreign investment; er open up its domestic markets. wines and cosmetics can be sold and the work style and efficiency Foreign businessmen come to in• in luxury hotels, and airports in relevant departments and re• vest because China not only has only, but not in ordinary depart• gions have also been improved. lower labour costs but also a ment stores. Some products can However, there leaves mush to huge domestic market. If China be sold in special economic zones be desired to meet the demands does not open up its domestic but not in other places. of foreign investors. This is true market, some foreign business• In conclusion, to serve the best particularly in regard to the soft men will not come to invest. In interests of its economy, China side of the investment environ• fact, to open the domestic market will make full use of import lic• ment as reflected in the incom• will help to upgrade the level ences, quotas, tariffs and sale lic• pleteness of the legal and mar• and competitiveness of China's ences to regulate the scope, de• ket systems. For example, China industry. gree and time for the opening up plans to issue stocks to foreigners The process will be a gradual of its domestic market. •

BEIJING REVIEW, AUG. 2«-SEP. 1,1991 15 CHINA

In recent years, drug-related crimes that had been wiped out in China for more than three decades has made a comeback in Yunnan Province due to the infiltration of its neighbouring Colden Triangle drug production base. Comprehensive measures taken by the province in dealing with the problem reflect the Chinese government's stand on the fight against drugs.

Yunnan: China's Anti-Drug Outpost

by Our Staff Reporter Yao Jianguo

n June 26, 1990, at a prov• Republic of China in 1949, bas• gle large amounts of drugs into incial anti-narcotics con• ically eliminated drugs from China. They attempted to use Oference in Kunming, the China. However, narcotics have Yunnan as a transition station or capital of Yunnan, some 40,000 reappeared in China in recent to directly sell drugs to China. people saw 520 kg of heroin and years and Yunnan has borne the Owing to the illegal drug traffic 480 kg of opium confiscated brunt of the suffering. conducted by both foreign and since 1986 reduced to ashes. domestic drug runners, drug This reminded the Chinese of dealings and abuse spread in the event that happened 150 Inroads of Narcotics Yunnan. years ago. June 1839 saw the Located in China's southwest According to incomplete sta• burning of 1.15 million kg of op• frontier area, Yunnan, adjacent tistics, up to 1990, there were ium on the beach of Humen, to the infamous Golden Triangle over 20,000 drug takers in Yun• Guangdong Province, an inci• drug production base, shares a nan, most of whom were teena• dent which triggered the First border as long as 4,061 km with gers with scanty experience of Opium War (1840-42) against Myanmar, Laos and Viet Nam. life. The main drug was heroin. foreign aggressors. Now the In the early 1950s, Yunnan al• Ruih County bordering Myan• sheer quantities of drugs are most eliminated the remnants of mar is an example. In 1982, it much less than those in the mid- drug abuse left by old China. But had only a few drug addicts. But 19th century but the drug burn• since the 1980s, with an increase in 1989, the figure rose to 500, ing in Kunming indicated Chi• of international demand for 73.6 percent of whom took na's renewed determination to drugs, drug crimes started to be• heroin and 26.4 percent opium. control narcotics. come rampant. Some drug car• Heroin takers under 35 years old The destruction of opium of tels and individuals, taking ad• accounted for 69.6 percent of the 150 years ago failed to stop its vantage of China's reputation as total. spread in China. A three-year na• a "drug-free country" and natur• Yunnan has suffered seriously tionwide campaign against nar• al conditions in Yunnan such as from international drug traffick• cotics, launched immediately af• many border passages and few ing and the drug influx. From ter the founding of the People's natural defences, began to smug• January to October of 1989, in

16 BEIJING REVIEW, AUG. 26-SEP. 1, 1991 CHINA Ruili alone, 42 people died of Kong drug collaborators Dai overdoses of heroin, the youngest China's modernization. Wenxuan and Yu Xikuan were being only 15 years old. In ad• smuggling 22.768 kg of heroin dition, there were 146 cases of Relentless Strike into China, in orddr to transfer it A IDs resulting from heroin in• Yunnan provincial govern• to Hong Kong via Kunming and jections in 1989, which, togeth• ment and public security institu• Guangzhou, he was captured by er with another 222 in 1990, tions have been paying close at• Yunnan Provincial public secur• reached a total of 368. tention to the drug infiltration ity authorities. Under interroga• Triggered by drug abuse, mur• and its harm to society. In the tion, he claimed he had never ders, robberies, thefts and swin• early 1980s, they set the anti• expected that he would tumble dling have increased in the prov• drug principles of "halting into the hands of the Chinese ince. According to the Yunnan sources and prohibition of plant• police. Public Security Department, ing, trafficking and abuse." In This was the most significant from January to April in 1990, 1982, the province took the international drug trafficking there occurred in Mangshi Pre• lead in China with the first case the team has cracked down fecture 233 violations of the so• 1,300-member professional team on since its founding. It was also cial order, 199 criminal cases and to wage an anti-drug war. With the first one in China involving 148 bicycle thefts. About 80 per• the support of the masses, they over 10,000 grams of heroin. For cent of the offences were com• blocked drug sources along bor• that reason, the team was praised mitted by drug abusers. Five ders, checked on roads and used by the Ministry of Public Secur• members of a drug-abuse group secret information to strike sev• ity. detected in Kunming last Janu• ere blows to serious smuggling. Another big international drug ary were involved in thefts and The team has successfully trafficking case was exposed in stealing. cracked down on nearly 100 in• March 1990. Under the com• The smuggling of drugs harms ternational drug trafficking cas• mand of the Ministry of Public not only Yunnan, but has begun es, jolting international drug car• Security, Yunnan co-operated to spread from border areas to tels. with Sichuan, Gansu and the interior and from the coun• Wen Yuanhe, a Thai national, Guangdong provinces in arrest• tryside to cities. A preliminary was an old hand at drug ped• ing nine drug traffickers from survey has revealed that drug dling. He had never been caught Myanmar and Hong Kong as abuses have proliferated in smuggling heroin from South• well as 60 domestic drug traders. Guizhou, Sichuan, Guangdong, east Asia to Europe and Amer• In this action, they seized 221.3 Fujian, Shaanxi, Gansu, the In• ica, even when Interpol issued kg of heroin, 1.6 million ner Mongolian Autonomous Re• warrants for his arrest. Howev• RMB yuan, US$20,000 and gion, and other places, becoming er, between April and August of HK$40,000 Hong Kong dollars, a malignant force jeopardizing 1989, while he and his Hong ten vehicles and seven pistols, demonstrating the capability of Yunnan police detect drugs on a train. YAO JIANGUO Chinese security authorities in dealing with drug smuggling. During April-September per• iod last year, Yunnan security authorities broke two other big international drug cases. They confiscated 74.17 kg of heroin, 1.42 million yuan of drug profits, 216 grams of gold, one grenade and one car, and arrested 25 drug traffickers including Wang Shangchun of the Myanmar na• tionality, who processed and sold drugs outside China. The above cases are only some of those exposed by the Yunnan public security authorities. Ac• cording to Chen Cunyi, an offi• cial in charge of drug control in the Yunnan Public Security De-

BEIJING REVIEW, AUG. 26-SEP. 1, 1991 17 CHINA partment, the relentless attack 1989, people's courts at all lev• no international anti-drug cam• on drug activities in recent years els in the province accepted and paign will succeed without the has enabled Yunnan to succeed heard 1,320 drug cases, wound co-operation of the Chinese gov• in cracking down on more drug up 1,295 and sentenced 1,715 ernment. crimes and confiscating more drug traffickers. In 1990, the However, due to long borders, drugs. In 1986, the province ex• courts took 1,245 cases, finished lack of anti-drug personnel, posed ten cases of drug traffick• 1,240 and sentenced 1,622 offen• backward equipment and insuf• ing and confiscated 78.05 kg of ders. From January to May this ficient funds, drug crimes are opium and 22.768 kg of heroin. year, 742 cases were heard and still out of control in the prov• Equivalent figures for 1988 and 518 concluded, with 756 traffick• ince. In addition, the ever- 1990 were 214 cases involving ers being sentenced. Criminals changing forms of drug traf• 167.38 kg of opium and 132.92 who dealt in large amounts of ficking and the increasing inter• kg of heroin and 2,143 cases in• drugs were given the death pen• nationalization of larger cartels volving 407.6 kg of opium and alty. equipped with modern facilities 1,445.177 kg of heroin respec• The ruthless sweep on drugs in add to the difficulty of the anti• tively. Of the 1990 cases, 41 had Yunnan has not only scared the drug work in Yunnan. heroin amounted to over 10,000 traffickers but also effectively Since drug crimes cross nation• grammes. From January to June checked the spread of narcotics al borders, China needs interna• this year, 20 cases were exposed in the province. It has reduced tional assistance to strengthen its by the authorities. the drug threat to other prov• anti-drug capability, said Chen. As the outpost of China's anti• inces as well as other countries, Meanwhile, there are hopes for drug battle, Yunnan has inter• and been hailed by the interna• more exchanges of information cepted 60 to 70 percent of the tional community. An American with neighbouring countries so total illegal opium in China and anti-drug official said, drug as to co-operate in the effective about 90 percent of the heroin, traffickers mistakenly believed suppression of drug trafficking, Chen said. The cases have re• southern China to be a "reliable" he said. The ultimate goal of our vealed that heroin, firearms and transport route. The head-on anti-drug work is to eliminate ammunition were illegally car• blows from the Chinese govern• the drug encroachment in Yun• ried into Yunnan from outside ment have caused a chain reac• nan as well as in the whole China China. Among the 3,240 drug tion in the New York drug mar• and thus lessen the drug pressure traffickers arrested in 1990, 680 ket, a proof that China's drug in other countries, added the of• were foreigners, accounting for control achievement is of great ficial. about 20.99 percent of the total. significance. So far, the state and provincial Meanwhile, the Yunnan High• Recently, some anti-drug offi• public security authorities have er People's Court has accelerat• cials of other Western countries made tentative efforts in terms ed its hearing of drug cases. In also have expressed the view that of international co-operation in drug control. In March 1989, the YAOIIANGUO Ministry of Public Security and Drug traders apprehended by Yunnan police. the US Drug Enforcement Ad• ministration jointly sponsored a training course in Kunming on the suppression of drug traffick• ing. As a result, more than 60 trained people formed a back• bone force against drug smug• gling in Yunnan and other prov• inces and cities. In 1990, officials in charge of drug control in Yun• nan visited Myanmar and Thai• land twice to consult the Golden Triangle joint plan. Ruili Mode In ridding drug addicts, Yun• nan has also accumulated some experience that has aroused in-

18 BEIJING REVIEW, AUG. 26-SEP. 1,1991 CHINA terest in other countries. In Octo• ber 1989, Dr. Edward Seney, an American expert in drug prohi• bition, was sent by the UN Nar• cotics Control Fund to Ruili for inspection. Dr. Seney showed his appreciation of the county's com• prehensive work in reforming drug addicts and called it the "Ruili mode." He said, socialist China's anti-drug endeavours embody Chinese characteristics and other countries can learn from the Ruili mode. What Dr. Seney called the "Ruili mode' actually epitomizes Yunnan's work to help drug tak• ers shake off their addiction. Some are measures used interna• tionally, but others are in accord UN and Myanmar officials inspecting transit drugs in Menghai County, Yunnan with China's social systems and Province. conditions. They include such as• pects as publicity and education ficking and taking, Yunnan tion to 90 percent of the inhabi• to force drug addicts to quit their Province convened a provincial tants and 99 percent of the users. habit and receive treatment, and conference oa June 8-14, 1990 to Many wives and parents sent consolidation of the achieve• mobilize all citizens for an anti• their husbands and children to ments by social forces. The prac• drug campaign. To mark the half-way houses. Some addicts tices have proved efficient. 150th anniversary of China's even went voluntarily. An exam• first open resistance to drugs, the ple was Han Yiliang, a farmer in Opium War, and the third an• Luxi County. He turned in to Publicity and Education niversary of International Anti- the anti-drug team 800 yuan and Although Yunnan Province Drug Day, on June 26, 1990 the half a bottle of heroin he had has undoubtedly made remark• province held the largest rally so long kept hidden and said, "I've able progress in cracking down far in the anti-narcotics drive in taken smack for years. I attempt• on narcotics smugglers, the ille• the provincial city of Kunming, ed to quit several times but al• gal trade continues. The number attracting 40,000 participants. ways failed. This is the money of drug takers has been on the On the same date this year, I've kept concealed for drugs. I increase in recent years. Inter• another upsurge was launched see you sincerely want to break national drug smuggling has be• province-wide to crack down on me of the habit. This time I'm come more rampant than before drug smuggling and use. Thou• determined to stop, through the and domestic drug runners pock• sands of employees from securi• help of this cash. After I come et huge amounts from their illicit ty, judicial, customs, health and back from the half-way house, activities. Citizens have not been government departments poured I'll work hard to show my appre• called on to combat the evil. into the streets in a publicity ciation to the government for its A survey indicates that most campaign to educate citizens concern." drug users in the province are about the importance of the drug Local people are becoming minimally educated young farm• fight through cultural perform• more aware of the dangers of ers, urban private businessmen, ances, video shows, art exhibi• narcotics. A drug control net• young factory workers and the tions and counselling. work has been established jobless. They take drugs out of These efforts are paying off. province-wide, and an increas• curiosity, with little knowledge For example, the Dehong Dai ing number of citizens have ap• of the side effects. When they and Jingpo Autonomous Prefec• proached anti-drug offices to re• become addicted to the point of ture on the Myanmar border was port on possible incidences of no return, they either sell all formerly known as a locale of drug smuggling and use. In re• their belongings or steal to get drug users. Last year, a total of cent years, many drug traffick• the money for the drugs. 1,877 cadres went to every vil• ing cases have been unearthed on To crack down on drug traf• lage, spreading anti-drug educa• the basis of information provid-

BEIJING REVIEW, AUG. 26-SEP. 1,1991 19 CHINA ed by the masses. Their public villages or work units. rehabilitation. The social work spiritedness has also contributed Takers who have gone cold division is responsible for inves• greatly to efforts to persuade turkey for sometime and then re• tigating drug-users and urging users to permanently give up sumed drug usage, must undergo them to get rid of drugs, while at their habit. a period of three to six months the same time giving guidance Provincial authorities have put .compulsory treatment. to anti-drug offices in townships the drug fight at the top of their Addicts who refuse to stop tak• and villages. The treatment divi• working agenda for the Eighth ing narcotics are forced to re• sion is in charge of administering Five-Year Plan (1991-95) in or• form through labour to make internationally recognized nar• der to create a strong public them give up the habit. cotics substitutes such as metha• outcry province-wide against the These four methods are differ• done. The rehabilitation division narcotics trade. ent from those in other countries organizes dissemination of infor• but they suit conditions in Yun• mation on laws and regulations nan. All sections of society in• concerning drugs to addicts, thus Half-Way Homes cluding families, work units, aiding their physical and mental A survey estimates Yunnan health teams and the armed pol• recovery. The centre has treated Province has more than 20,000 ice have been mobilized for the 326 drug takers since its found• drug users. Some take opium and crackdown on drugs. ing in 1988. others heroin, either occasionally Ruili County of Dehong Pre• Most of the people now receiv• or habitually. They vary in age. fecture, which borders Myanmar ing therapy at the centre were The province has divided them on three sides, is an area with escorted here by the leaders of into four groups. high drug-use incidence. The their townships or villages or For the elderly and casual Ruili County Medical Depend• the organizations where they users, a fast cutoff of drugs fol• ence and Rehabilitation Centre, worked. Some came of their own lowed by a cure is administered funded by the United Nations, is accord. A 27-year-old Myanmar under the care of family mem• a half-way house for the drug citizen has been in the centre for bers or relatives. users. In addition to 30 beds, the treatment for three months. It Those not deeply addicted are centre has three divisions for so• is said that during each course rounded up and treated by their cial work, medical treatment and Myanmar drug users come for

Kunming publicizing for International A ti-Drng Day. YAO JIANGUO

20 BEIJING REVIEW, AUG. 2«-SEP. 1, 1991 CHINA treatment of their own initiative. The centre has decided to have 20 more beds. Liu Dequan, an official in charge of the drug fight at the Health Department of the Yun• nan provincial government, said there are similar centres in Kunming and Lancang County. He added that there are more than 70 half-way homes at the county level and up, and hundreds of drug-quitting cours• es in villages and townships throughout the province. Last year, 17,000 drug users received treatment at these places. Fol• lowing their recovery they were escorted home by anti-drug offi• cials and their families and kept ^AO JIANCUO under surveillance. Treatment of drug addicts in the Ruili County Recovery Centre.

ing the land three years after es occurred in the township of Social Responsibility providing evidence that they Huyu. In the first half of this For many countries, relapses have really stopped using drugs. year, however, there were only by drug offenders after a per• Some villages add anti-drug six such cases. iod off narcotics is a major and provisions to their community To minimize the number of seemingly insolvable problem, rules to force self-restraint on drug users and stop offenders socialist China, however, has drug smugglers and addicts and from resuming their habit, the been quite successful in keeping put them under the control of all Standing Committee of the Yun• ex-users off drugs. the inhabitants. nan provincial people's congress Anti-drug organizations have Due to the combined efforts of on May 27 this year passed the been established from the county the anti-drug organizations and Provisions of Yunnan Province level all the way down to town• motivated citizens, about 50 per• on Prohibition of Drugs. These ships and villages to keep an cent of all known drug takers in stipulate that the smuggling, eye on those stopped from us• Dehong prefecture were found to peddling, transport and man• ing drugs. There are 1,239 such have not resumed their habit in ufacture of narcotics will be groups in Dehong prefecture. 1990 and 30 percent of the vil• cracked down on in accordance Their task is to identify drug lages were free from drugs. In with state laws. Drug users will users, use various measures to Huyu Township, Ruili County, be held in custody for 15 days or punished with a fine of no more urge them to quit, encourage for example, the registered num• ber of drug users totalled 335, of than 2,000 yuan. Drug addicts their progress and fine those who whom 238 received treatment in are instructed to either quit by refuse to stop taking drugs or 1990, and 25, or 10.5 percent, their own efforts or spend a cer• who resume taking them. were found to be back on drugs tain time in a half-way house. Anti-drug organizations are again this year. Tuo Ma, a farm• Ex-addicts found using drugs also penalized if they do not per• er of Yishan Village, and Duo again will be forced to reform form well. If in a village for ex• Shi, a farmer of the Jingpo na• through manual labour. It is ample, 30 percent of the known tionality in Guangbeng Village, widely believed these regulations users take up drugs again, the were formerly drug users. Re• will promote the anti-drug cam• village's yearly allocation for the cently, they were both elected paign in Yunnan Province. drug fight will be reduced by 100 village leaders on the basis of Yunnan Province is said to be yuan and if the percentage is 40, their hard work after they were working on a new anti-drug pro• the grant will fall by 200 yuan found to be off drugs. gramme to decrease the number and so on. If ex-addicts are The reduction in the number of drug users by 30 percent ev• caught taking drugs again, their of drug users has helped promote ery year over the coming five leased farmland is confiscated. social stability. For example, in years, thus reducing the harm of They are allowed to resume till- 1990 a total of 68 criminal cas• drugs done to local people. •

BEIJING REVIEW, AUG. 26-SEP. 1,1991 21 CHINA

Carrying Forward the Yanan Spirit

by Our Staff Reporter Huang Wei

r • ihe city of Yanan in Shaanxi and other senior Party leaders, and trucks. On both sides are- I Province is a three-hour he participated in what became vast fields of golden wheat. The -•- southwestbound flight known as the Great Production slopes in the distance are dotted from Beijing aboard an An-24 Campaign. With joint efforts, the with newly built cave dwellings. aircraft. army and the people reclaimed One Yanan companion told this A sacred place of the Chinese wasteland and grew wheat, millet reporter, "Half of the rural resi• revolution, Yanan was once a and maize; they took up spin• dents have moved into new hous• seat of the Central Committee of ning, weaving, soap-making and es in the last ten years. Some the Communist Party of China paper-manufacturing in simple well-off families .have built two- and headquarters of the Chinese workshops. Thus, the army and storey houses." People's Liberation Army. It was the people both in Yanan and in Jia Zhibang, commissioner of also the command post of the the border areas achieved self- Yanan Prefecture, said that Yan• Chinese revolution from 1937 to sufficiency in their basic needs. an, like other rural areas in 1947. During this period, tens of Since then the Yanan spirit of the country, has introduced the thousands of patriotic youth and "self-reliance and hard work" household contract responsibility other people from various parts has always been acclaimed by the system since China implemented of the country and abroad came people. the economic reform and open• to the city for revolutionary edu• Half a century has elapsed ing up to the outside world in cation and training, seeking na• since then. During the last 50 1979. As the local people's in• tional salvation and democratic years, what has happened in come has increased yearly, prob• freedom. From here the Par• Yanan? Has the Yanan spirit lems of food and clothing have ty Central Committee led the' been carried forward and devel• been basically solved and some - Chinese military and civilian oped since China introduced the families are leading a comfort• forces in defeating the Japanese economic reform and opening up able life. Last year the Yanan invaders, overthrowing the reac• policy? Prefecture gathered a total of tionary rule of the Kuomintang 680 million kg of grain, equal to and finally winning the nation• Yanan Is Changing 400 kg per capita on the average. wide victory. Yanan Prefecture has one city The output of the four main The 1937-47 period was full and 12 counties under its jur• farm products—cured tobacco, of hardships. Especially between isdiction, with a combined popu• apples, wool and sweet potatoes 1941-42, the Kuomintang troops lation of 1.77 million. The pre• —valued at 312 million yuan, intensified the encirclement and fecture, situated as it is on the accounts for 52.5 percent of the blockade of Yanan and the loess plateau, has suffered from total agricultural output value. Shaanxi-Gansu-Ningxia border drought, serious water and soil Industry has developed apace areas in co-ordination with the erosion and poor communica• in the last ten years, with output Japanese invaders, in an attempt tions; this is the impression peo• value increasing from 150 mil• to cut off all means of subsist• ple generally have had of the lion yuan in 1978 to 710 million ence. To overcome the blockade, place. yuan last year. Petroleum, coal Mao Zedong called on the army But an entirely different scene and woollen textiles have become and the people to secure ad• presents itself as one drives from the pillars of the local economy. equate food and clothing the airport to the downtown area. At the same time, commerce and through their own efforts. To• Running on the wide asphalt marketing in both rural and ur• gether with Zhou Enlai, Zhu De road are coaches, cars, minibuses ban areas have also flourished.

22 BEIJING REVIEW, AUG. 26-SEP. 1, 1991 CHINA Consumer commodity retail my developed? tion, elimination of endemic di• sales went up from 206 million Nanniwan, 45 km away from seases and supplying electricity yuan in 1978 to 639 million yuan the downtown area, was set up as to homes. in 1990. a grain production base during In the township, the reporter Streets in the downtown area 1941-44 by the Brigade No. 359 also visited the "New Brigade are flanked by barber shops, clo• commanded by Wang Zhen (now No. 359"—the Nanniwan Oil Ex• thing stores and grocers. Goods vice-president of the central gov• ploration Corp. established in shipped in from the coastal areas ernment). Today it is one of the 1989. It is managed by Tian as well as local products find comparatively rich townships in Weikuan who took the job after ready customers. Buyers can bar• Yanan Prefecture, with a per- he resigned as director of the gain with private shop owners. capita grain output of 650 kg and Yanan Industrial Bureau in Not far from the highest build• net income of 550 yuan a year. 1990. ing, a big nine-storey bank, is The Nanniwan township gov• Tian's office is simpler than a karaoke ballroom. At dusk, ernment occupies two rows of that of the township government. young people come to the ball• one-storey houses. The township The 20-square-metre space is div• room in twos and threes. Here magistrate and other government ided in two by a curtain. On one this reporter learnt from a young leaders were out helping farmers side is Tian's office, equipped woman who was working at the with their harvesting. A func• with a wooden desk, a bookshelf prefectural tax bureau and who tionary explained that they did and several armchairs; on the came to the ball with her boy• this every year. The township other is his bedroom, furnished friend every weekend, that there government leadership is still lo• with a single bed, a wash basin are seven or eight such ballrooms cated in 20-year-old one-storey and other toilet articles. His se• in the downtown area. offices while all the residents cretary said Tian stayed here al• have moved into new houses, he most everyday and visited his said. It has postponed the con• wife and children in the down• Brigade No. 359 struction of office buildings and town area only once a month. How did the local people parti• put aside the main part of its Tian's life-style is not a mat• cipate as the commodity econo- income for compulsory educa• ter of great importance to him. Today's Nanniwan.

BEIJING REVIEW, AUG. 26-SEP. 1,1991 23

m CHINA "Now conditions are much more city to work in this hilly area, he he cooped himself up in the la• better," he said. "When the cor• smiled, "The comforts of life are boratory for more than 100 days poration was first established, we created by the people. Without and surveyed the site several handled business in caves on the the hard work of our predeces• times. Finally he provided re• hill. Our four corporation lead• sors, Nanniwan would not be liable data. Since then, several ers slept on the same hard ear• what it is today. Now we come to dozen high-yielding oil wells then bed, while our more than prospect for oil to further the have been drilled. 300 workers lived in abandoned economic development of north• Yang Yigang is seldom found farmhouses. Today we have new ern Shaanxi Province and help sitting in his office. He is usually offices and 60 percent of our create a comfortable life for the in the factories or villages dis• workers have moved into new local people." cussing and helping to solve apartment buildings." production problems with work• Since funds were limited, the ers and farmers. To get from one first measure Tian adopted was Finding Happiness place to another he hitches a ride to streamline the managerial In Nanniwan the reporter met with a friend or acquaintance or units stationed in the downtown Yang Yigang, vice-mayor of takes the public bus. area and move them back to the Yanan then on an inspection When asked why, in his 50s, he oilfields. At the same time he cut tour of the township. Yang got still persists in this simple, hard• down on non-productive expen• straight A's when he was study• working style, he says, "I think diture and encouraged leading ing geology at Northwest Univ• the greatest happiness in life is members at various levels to ersity in the late 1950s. After hard work, not sitting idle and work and take their meals to• graduation, he volunteered to enjoying the fruits of other peo• gether with the workers. Led by come to Shaanxi Province, deter• ple's work." him, the workers laid more than mined to carry forward the spirit 300 tons of pipes within one year, of hard work as exemplified by and constructed a two-storey the revolutionaries of the older Self-Reliance office/dorm building and more generation. He has brought his Going on further to the south, than ten workshops, as well as talents into full play for the be• this reporter arrived at Yichuan a 200-square-metre parking lot. nefit of the local people. In the County on the Yellow River. Today he and his workers are last 30 years he visited every cor• Yichuan is one of the nation's building an asphalt road con• ner of the province and made 136 poor counties, although its necting the corporation to a high• suggestions for oil-prospecting in per-capita annual net income in• way. the northern part. To confirm creased from 120 yuan in 1985 to When asked why he left the the presence of rich oil reserves, 390 yuan last year. Wang Luhou, county mag• istrate, was graduated from the A cigarette worker operates an imported macliine. English Department of the Xian Foreign Languages Institute in the 1960s. He said, "Every coun• try no matter what its social sys• tem must go through hardships at the initial stage of its devel• opment. China is like a young mother with many children. All of us should work hard in order to lighten the burden on our mother." Some farmers in the county have extricated themselves from poverty by relying on their own hands, and now live a fairly com• fortable life. Song Zhuying from Jingyang Village is a good example. She contracted 0.7 hectares of land and raised more than 1,000 yuan, which she used to buy 500 peach

BEIJING REVIEW, AUG. 26-SEP. 1,1991 CHINA saplings in 1988. At present she harvests fruit from 200 of the trees. She does all the work by herself, fronj watering, fertilizing and pruning to pick• ing and packing the fruit. Sometimes she has to guard the or• chard for several days in a row to keep wild goats from breaking through the sur• rounding wall. Song nets more than 3,000 yuan a year from her peach orchard. With the money, she has re• built three brick caves and bought a 20-inch remote-control colour TV set last year.

Yanan Spirit slowed down by poor communi• is good. With several beauty cation facilities. Several years la• shops around, can she continue As the commodity economy ter, his company expanded into a to win over the customers? At develops, new concepts, produc• motor transport enterprise boast• this Huo smiled. "Competition is tion technology and management ing over a million yuan in fixed one way," she said. "I attract the methods have challenged the assets and deploying ten motor young women with new styles, traditional ideas of self- vehicles. In the last few years he enthusiastic service and reason• sufficiency and simple physical has gone to the United States, able prices." labour both in urban and rural France, Italy and other coun• As the commodity economy areas and are being accepted by tries to study advanced technol• continues to develop, Jia Zhi- the majority, especially by young ogy and managerial skills. He bang, commissioner of Yanan people. has put into use what he learnt Prefecture, looks forward to the Wu Jikang, 34-year-old deputy abroad and plans to initiate a future. "We should study the ex• director of the Xinhua Ceram• surface and air transport corpor• periences of other places, free ics Factory in Yanan, introduced ation involving motor vehicles, ourselves from old ideas, accept the management of total quality aircraft and ships. Liu said, "De• new concepts and develop an velopment of the local economy control (TQC) in the second half export-oriented economy. These calls for hard work. It is abso• of last year. Wu worked hard are our main tasks during the lutely wrong to remain isolated Eighth Five-Year Plan period explaining his new programme to from the outside world. Instead, (1991-95)." He also said the pre• the workers. Once adopted, it re• we must make a breakthrough in fecture would import advanced sulted in an increase of product a pioneering spirit." variety, updated the production foreign technology, equipment Near the Yanan Hotel in the and investment for running technology, decreased the num• busiest shopping centre are sev• foreign-funded enterprises. ber of sub-standard products and eral hairdressers'. One is increased the income of adv• called the "Garden of Pleasant Jia introduced the concrete anced workers. Dreams." Huo Yanli, the own• goals to be realized in the com• , Liu Zengxing is well-known er, is a 23-year-old woman. She ing five years and explained the among the local people. He opened her shop a year ago after methods to be adopted. To real• raised 500 yuan to establish a she had received training from ize these goals, it is necessary to transport company in the early a well-known Guangzhou hair• develop the economy while car• 1980s when he found that local dresser. Her monthly income rying forward the Yanan spirit economic development was being reaches 500 yuan when business of self-reliance and hard work. •

BEIJING REVIEW, AUG. 26-SEP. 1,1991 TOURISM • A lantern show on the five enterprises under the Luoda Suzhou International Moon Festival on September 21 Trade Agency in Beijing. The Silk Festival in Suzhou's famous classic gar• branch has a strong economic dens; backing and is very competitive. uzhou, situated on the low• • Trade talks and wide- It chose 20 applicants with sen• er reaches of the Yangtze ranging business discussions. ior middle school education S River, will hold the 2nd by Zhang Xiaolian from several hundred applicants Suzhou International Silk and with a good command of at least Tourist Festival of China begin• one foreign tongue. They invit• ning September 20. Tourist Videos ed special teachers to train them One of China's main silk Come in Vogue in photography, editing, art and producers, Suzhou produces languages. over 200 kinds and over 3,000 Presently the agency can patterns of silk products includ• n May 1, 1990, Beijing set provide narration in English, ing chou (silk fabric), duan (sa• up its first tourist video Korean, Indonesian, Japanese tin), ling (fine satin), luo (silk O agency. Over the past and Cantonese. They can also gauze), fang (soft plain-weave year or so ten similar centres make copies that are suitable for silk fabric), jing (brocade), xiu have sprouted during the tourist showing on different TV sys• (embroidered silk), si (silk) and video craze. tems. The tapes with 20 minutes juan (a fine tough silk). Suzh- Those who do the video work of Beijing scenery at the start ou's silk products make up are young women between 18 are of good quality and warmly about one-third of China's total and 25 years old. They accom• welcomed by tourists. export of silk and are exported pany tourist groups who come to After two months of opera• to over 100 countries and re• Beijing and film their stay in the tions, the centre has signed co• gions. capital. The agency cuts, edits operation agreements with 14 Suzhou, a historical and cul• and adds narration and music to travel agencies and provided vi• tural city, has a 2,500 year his• the video tapes. It can dispatch deo services for 400-odd tourist tory and attracts many tourists. a 130-minute tape to a guest at groups. They have sold as many Known as China's Venice, it is his or her hotel on the same as 800 tapes without mishap. characterized by its classic gar• evening as the filming. If it has The general manager of the dens, little canal bridges, and the visitor's approval, the final service centre, Dong Xiaodong thousand-year-old scenic spots. version can be available the next said, "We plan to establish a It has convenient transport con• day. joint venture with a Japanese nections. The Beijing-Shanghai In May this year, the Luoda company to expand our bus• Railway and the Beijing- Tourist Video Department start• iness scope before the end of Hangzhou Grand Canal both ed business with an investment the year." run through the city and the of 300,000 yuan. It is one of the by Kou Zhengling airport is located close to the downtown area. There are more than 3,000 standard room avail• able for tourists. During the festival, the fol• lowing activities are planned: • Suzhou used to be the capi• tal of the Wu State 2,500 years ago. At the opening ceremony the cultural art of the Wu State will be on exhibit; • A tour of the newly com• pleted China Silk Museum; • A silk fashion show display• ing the best of China's silk fa• shions; • A sales exhibition of the latest silk products and designs for Chinese and foreign tourists;

26 BEIJING REVIEW, AUG. 26-SEP. 1,1991 BUSINESS/TRADE Over the past few years, the Between 1979 and 1990, the Impex Opens Chinese firm has promoted the exports province introduced more than Business of Chinese products to Japan 2,100 kinds of advanced

BEIJING REVIEW, AUG. 26-SEP. 1,1991 27 BUSINESS/TRADE ment, said that these schemes tured by foreign-funded enter• are firmly guaranteed by domes• Hulun Buir Seeks prises, except for those con• tic conditions and funds. For• Technical Co-operation trolled by other stipulations of eign businessmen and compa• the state, will be free from in• triots from Hong Kong, Macao In July, the Hulun Buir dustrial and commercial conso• and Taiwan can come to choose League in the Inner Mongolia lidated tax. Materials imported and hold business talks about Autonomous Region promulgat• for making export products will them. ed the Provisions on Preferen• require no import licence, cus• In addition to abundant na• tial Policies for Promoting of toms duties or industrial and tural resources and sufficient Opening Up to the Outside commercial consolidated tax. energy reserves, Shanxi Prov• World and rules for their im• Special preferential treatment ince also has a solid industrial plementation. Also announced will apply to land-use fees base. At present more than 200 were about 100 economic and for foreign-funded undertak• billion tons of coal reserves have technological co-operative pro• ings. The 85 economic and tech• been discovered, accounting for jects. nological co-operative projects Tlie preferential policies sti• that have been offered cover one-third of the country's total. pulate that foreign-funded en• forestry, animal husbandry, me• Apart from considerable re• terprises with products for ex• tallurgy, mining, chemicals, serves of aluminium, iron and port and advanced technology paper-making, textiles, copper, Shanxi Province has ad• will be given priority for guar• machine-building, electronics, vantageous conditions for min• antees of capital construction building materials, sugar- ing. It has an annual production and the arrangement of the sup• refining, dairy products, leath• of raw coal amounting to 270 ply of essential credit, energy, er and fur production, clothing, million tons, making up one- transport and communications shoe-making, meat and food fourth that of the whole coun• facilities, and raw materials. processing. try. It not only supplies 26 Foreign-funded enterprises in by Feng Jing provinces, municipalities and these fields will enjoy a 24 per• autonomous regions, but also cent reduction of income tax. sells coal to Britain, France, the The rate for foreign-funded bus• Technology Upgrades Netherlands, Italy and Japan, as inesses involved in energy, Dalian Locomotives well as Hong Kong and Macao. transport, ports and docks, and Shanxi is known as the main other projects encouraged by the The Dalian Rolling Stock province for China's power out• state, will be 15 percent. Plant has over the past decade put with a power generating ca• Productive foreign-funded en• imported foreign advanced tech• pacity of over 30 billion kwh a terprises scheduled to operate nology and equipment to boost year. The province has over 12,- for a period of ten years and the manufacture of its locomo• 000 industrial enterprises with more will be exempt from en• tives, which are already up to a comprehensive industrial sys• terprise income tax in the first international market standards. tem that covers the coal, electric three profit-making years and Recently, the plant has tendered power, machine-building, chem• permitted a 50 percent reduc• to sell 82 locomotives to New ical, metallurgical, light, tex• tion from the fourth to the South Wales, Australia. tiles, electronics and food indus• eighth year. The plant spent 2 million tries. Foreign-funded businesses do pounds sterling introducing sof• Railways and highways ra• not have to pay local income tax tware for locomotive manufac• diate in all directions. Its seven in the first ten profit-making ture from the Ricardo Concern• main railway lines extend to all years. Export-oriented and ing Engineers of the United big cities and ports through• technically advanced enterpris• States to raise the horse power out the country, and seven air es, and businesses involved in of its products to 4,000. The routes leading direct to Beijing, energy, transport, infrastructure American technc^gy has also Tianjin, Shanghai, Guangzhou, facilities, the development of re• helped reduce oil; consumption Chengdu and Dalian. The open• sources, the production of raw and widen the in^val between ing of domestic and internation• materials, the development of major maintenanft. Both par• al direct-dial telephone lines has agriculture, animal husbandry, ties are conductinPco-operation expedited communication with forestry and fishery will be ex• in order to raise the locomotive the outside world. empt from local income tax. horse power to 5,000. by Kou Zhengling Export products manufac• The Chinese plant has also

28 BEIJING REVIEW, AUG. 26-SEP. 1,1991 BUSINESS/TRADE outlaid US$2.4 million on a By combining the secret pa• uct's prospects. The wine can be• technological transfer deal with lace recipe handed down from come a world class health elixir. the CE Co. of the United States, the Qing Dynasty with modern by Li Ming and US$14 million purchas• production techniques, the Zu- ing locomotive manufacturing miao Food Enterprise Co. Ltd. News in Brief equipment from Japan, Ger• has been able to manufacture a many andd Sweden. health product containing low • Harbin, the capital of Hei- The Dalian plant accounts for alcohol. longjiang Province in northeast half of China's present locomo• The Chinese emperors in the China, has gradually become a Qing and several preceding dy• hot spot for foreign investment. tive production capacity. At pre• nasties drank the elixir prepared sent, it is able to produce 200 from the secret recipe, raising its Between January and June this locomotives with six to 12 cylin• status in society. Up to now, its year, the number of newly regis• ders. Some European and Amer• composition has been kept hid• tered foreign-funded enterprises ican experts believe the plant's den from foreign circles. How• in Harbin reached 46 and the production capacity is close to ever, the singular potency of the total value of investment was that of advanced international liquid that can restore sexual US$72.85 million. In addition, factories. powers is well known. After five 58 newly approved projects by Yang Xiaobing days of taking the brew, the ef• utilizing foreign-investment in• fects become evident. Experts volved a negotiated value of said the wine is prepared mainly US$28 million. China's First Tonic Wine from Chinese medicinal herbs. • Tanghai's No. 10 Garment Of World Calibre Factory located in Tanghai Mellow and transparent, it con• County, Hebei Province on the tains no hormones or additives. shores of the Bohai Sea, has hit "Gongting Baochun" wine, Since producing this tonic an eight-year record of export- China's first tonic wine prod• wine for about ten years, the oriented clothes production. The uced in Foshan, Guangdong product has been exported to the factory's goods are sold to a doz• Province, was appraised as ex• United States, Japan, Southeast en countries and regions includ• cellent by international gour• Asia and Europe. The high- ing the United States, Japan, mets who sampled and negotiat• priced wine can only be found Britain, France, Italy and Hong ed to purchase it at the China in domestic five-star hotels. Kong and enjoy a high reputa• International Food and Cultural Hong Chan Chia, general mana• tion among foreign traders. Li Seminar held last July. The bev• ger of the Agenda Comercial Kefu, the director of the facto• erage has won a reputation as Chi Seng of Macao, and general ry, said it will have an addition• the nation's first tonic wine due foreign manager of the Zumiao al investment of 700,000 yuan to its notable efficacy and high Food Enterprise Co. Ltd., is full annually in the next three years quality. of confidence about the prod• in order to introduce Japanese equipment and produce 100,000 Marian Kibilda, manager of the Kopex Export-Import Co. in China discusses the more clothes a year. purchase of Gongting Baochun wine. • "The Beijing '91 Beer Fes• tival," co-sponsored by the Bei• jing North Star Group and the Beijing International Conven• tion Mansion, was held in the capital from July 19 to 28. The festival, which marked the inte• gration of displays of domestic and international beer, their sales and receipts of orders, de• monstrated the excellent situa• tion brought about by China's reforms and opening to the out• side world as well as the devel• opment of China's beer indus• try. by Xu Xiaodong

BEIJING REVIEW, AUG. 26-SEP. 1, 1991 29 FROM THE CHINESE PRESS mechanism for a planned econ• —It will be difficult to invigo• Questions and omy with market regulation. rate enterprises unless they can Answers on Reforms Reforms will cover the follow• retain more profits. However, if ing areas: imperfect self-control mechan• BANYUE TAN Rural reform: to uphold and isms for enterprises remain un• (Fortnightly Forum) perfect the household contract changed, it will be hard to S there any progress in im• responsibility system which prevent hikes of personal con• proving the economic en• links remuneration to output sumption. I vironment and rectifying the and to develop social services —Macro-economic regulation economic order? and expand the collective econ• and control cannot be streng• Yes. On the one hand, the key omy. thened or economic growth con• steps taken since the Third Plen• Enterprise reform: to stabilize centrated without reforming the ary Session of the 11th Party and fulfil the enterprise contract excessively scattered economic Central Committee in 1978 have responsibility system, gradually mechanisms. However, the en• remained steady and excellent. shift enterprises to a system of thusiasm of enterprises and lo• On the other hand, fresh mea• separating tax payment from cal authorities will be dampened sures which help to deepen re• profit dehvery, and after-tax re• if the proportion of their income form have been worked out in payment of loans; to encourage is reduced. co-ordination with the measures the development of enterprise —Enterprises which operate taken to improve the economic groups and improve enterprise in the red should be announced environment and rectify the management. Top priority task bankrupt, shut down, merged economic order. Conspicuous is to deepen reforms within with other companies or reforms have been seen in the large and medium-sized state- switched to other production. grain purchase and selling struc• owned enterprises. But if this occurs, many people ture including stabilized pur• Price reform: to expand the will become jobless, which will chase, sales at reduced prices scope of market regulation; to adversely affect social stability. and the implementation of a readjust the prices of the major These difficult problems must contract responsibility system. means of production, gradually be resolved if the reforms are to The first stock exchange has abolish the double-track system be pushed ahead. been set up in Shanghai and which maintains the coexistence (Issues, 1991) stock markets have developed of planned prices and market further. There has been a break• prices, resolve the paradox that through in the structure of for• the purchase price of grain is eign trade through the establish• higher than the selling one; to ment of mechanisms that make decontrol prices for processed Young Shanghainese: foreign trade enterprises respon• materials whose supply and de• Marriage, but No Kids sible for their profits and losses. mand are largely balanced, and Social welfare security has been also those products that fluc• CHINA NEWS put on the agenda, and a series tuate in availability plus dur• (Zhongguo Xinwen) of measures for housing reform able goods and daily necessities. 'th the trend of "late proposed. The development of Social security system reform: marriage and late birth" the Pudong area in Shanghai in• to change progressively the si• Wpounding at the Chinese dicates a new starting point in tuation wherein the state and tradition of "bear a son early opening to the outside world. enterprise take care of workers' to obtain early happiness," the Price reform has made some housing, pensions, employment Chinese have adopted a new ap• headway too. In 1990, the state and medical care.. proach to the family. Now, raised prices of grain, cotton, su• What are the problems? more and more young people in gar, coal and edible oil, as well Major problems are as fol• Shanghai choose to marry but as transport fees for railways, lows: have no children^ airlines, highway and waterway —The situation of irrational Data from th^ Shanghai In• traffic and postal service. Such distribution of payments will re• formation Centre, of Population wide-ranging price increase main unchanged without re• show that of morft than 1.13 mil• within one year has seen rare in forming the existing distribu• lion registered marriages from recent years. tion system. If the reforms are 1979 to 1989, about 160,000 or Where will further reforms go? too violent, they will affect the 14 percent still have no child• The general idea is to create a social stability. ren. At present, 2.5 percent of

30 BEIJING REVIEW, AUG. 26-SEP. 1,1991 FROM THE CHINESE PRESS Shanghai families are "DINKs" poor regions, however, birth rate quality of the feathered crea• and do not want to have pro• is rising rapidly all the time. tures. They collect green and geny. , China has more than 1.1 billion red parrots budgerigars and lo• These families believe that people but the per-capita size of tus birds, because these birds "life should be happy, so why cultivated land is only 0.06 hec• look exquisite inside beautiful have a baby and waste money." tare. "In this situation many cages. They attract the admira• They hope to escape the has• people seem to share a single tion of visitors and give pleasure sles of raising offspring, heavy bowl of rice. We need to control to their owners. The second type housework, and economic pres• population growth to eliminate and most numerous greatly ap• sure. They want, instead, to poverty," Fei added. preciate the sounds of birds. have free time to meet old and Fei reiterated that the top They raise thrushes and larks, new friends, as well as relax af• priority for population control which sing brilliantly. However, ter work, listening to popular is helping the poor. "We should these birds require a lot of atten• music and drinking strong cof• first make people understood tion since their owners have to fee in their cozy rooms. the principles of birth control stroll around with bird cages in The survey also showed that and second, spread scientific their hands and play with the most couples who choose to have knowledge. Relief funds are no birds or else they will refuse to no children are from intellec• solution if the birth rate is out of burst into beautiful songs. The tual circles. Above 60 percent control," Fei said. third kind is crazy about bird are university graduates. This Talking about economic de• training. They obtain mountain indicates that the important in• velopment in China's northwest, finches and crossbills which are fluence in these families is the Fei held that grass and trees clever although their appear• progressive ideas of women who may be planted to restore the ance is drab and their warbles are opposed to tradition. ecological balance and also are not sweet. A good teacher (June 11, 1991) prevent water and soil erosion. can train them to hold money in "The northwest is rich in na• their beaks and play marbles. tural resources, especially in its Along with the increasing variety of fruit trees," Fei said. number of bird raisers, bird Fewer Children, "It is possible to plant more trees as well as develop a house• markets are flourishing in Bei• More Trees jing. The five main ones are hold economy. Farmers can Guanyuan, Longtan Lake, ZHONGGUO RENKOU BAO manage cultivation, forestry, Dongdaqiao, Hongqiao and Xib- (China Papulation Weekly) animal husbandry, side-line production and fishery. ianmen. Bird fanciers flood into amily planning and af• the markets every weekend. At forestation are the correct "Development of production Guanyuan, the price for a and improvement in lifestyles sought-after thrush or lark is F ways to achieve prosperity, will help change attitudes to said sociologist Fei Xiaotong re• more than 100 yuan, equivalent cently. birth." to a county head's monthly sala• "China is a socialist country, (Issue No. 369) ry. A jade bird with white and which aims to enable all to be• red eyes commands to 200 or come well off," Fei pointed out. 300 yuan. "Helping the poor is a necessity. Bird conservationists are on We should first solve the prob• Bird-Watchers'City Of the increase with the growth in lems of food and clothing in Warblers the number of bird lovers. Sanc• poor areas, then proceed to de• tuaries to attract birds have velop production, shake off pov• WENHUI BAO been built since 1985 in the Bei• erty and seek affluence. Most of (Wenhoi Daily) jing Botanical Garden, Summer China's hinterland have played early 300,000 Beijingers Palace and Yuyuantan Park. a big role in the founding of the breed birds. Passersby are Several thousand wooden bird republic, and we must do what N attracted by birds singing nests and 100 feeding stands we can to help the economic de• in central street gardens every have been set up. Numbers of velopment of these areas." morning and evening. birds have evidently increased While the population grows Bird-fanciers can be divided and there are over 150 species slowly in developed areas, the into three kinds: The first aims according to statistics. regular pattern is that in the at appreciation of the decorative (No. 15904)

BEIJING REVIEW, AUG. 26-SEP. 1,1991 31 CULTURE/SCIENCE team, said,"In recent years, Chinese women swimmers have entered top world ranks, but male swimmers have lagged be• hind not only in physical fitness but also in competitive psycholo• gy. They have suffered from an inferiority complex. We expect to ehminate this blot soon." However, because of the abs• ence of first-rate swimmers from England, the United States, Can• ada, Hungary, Australia and the Soviet Union, competition was not on a high level. China swept five out of the six gold medals in diving events, showing its strength as a diving power. The Chinese water polo team lost the game with the United States by a narrow five to six in the last six seconds to win the silver medal. However, the team acquitted themselves well. They defeated the Australian team by ten to six and crushed the Ro• manian team by ten to eight. This t the Sheffield World Univ• included the women's 50-metre has increased the self-confidence ersity Games, the Chinese freestyle, 100-metre backstroke, of the members of a formerly se• Asports delegation won 20 200-metre medley, 400-metre cond class team. golds, 17 silvers and 20 bronzes medley and 4x100-metre frees• Gymnastics. Due to the absence to rank second in the medal tally, tyle relay. The women's 4x100- of top Chinese, Japanese and the best result so far for China in metre freestyle relay seized by Russian stars who were preparing world universiads. Zhuang Yong, Qian Hong, Wang for the coming World Gymnastic Yuan Weimin, vice-minister of Xiaoming and Sun Chunli was Championships, the overall level the State Commission of Physical the first team gold China has of competition was not very high Culture and head of the Chinese scored at an important interna• or intense. delegation, said, "Our target is tional swimming competition. China won two gold medals in the Barcelona Olympics. The fu• Chinese swimmer Lin Li took the men's individual all-around ture seems promising although three golds and also established event and the vaulting. But com• great difficulties lie ahead." records in the 200-metre and pared to the People's Democratic Water Sports. Swimming, diving 400-metre medley, becoming the Republic of Korea, China's per• and water polo are the three most woman swimmer to capture the formance was far from satisfac• hopeful arenas for the Chinese most gold medals at the univer• tory. The Korean team took 10 delegation. They accounted for siad. She showed the same daz• golds in the ordinary and artistic more than half of China's gold zling style she displayed at the gymnastics. However, Chinese medals at the last universiad. Beijing Asiad. veteran gymnast Wang Chong- In the 32 swimming competi• Shen Jianqiang clocked 54.25 sheng's victory in the men's all- tions, the Chinese team took nine seconds in the men's 100-metre around event Was a significant golds and five silvers to rank se• butterfly to take the title. He was one. Such a win -was a rare suc• cond, putting an end to China's the first Chinese in several de• cess for China even in its heyday blank ledger and placing the cades to win ^a gold medal in in gymnastics in past years. country level with the United men's swimming at a major Field and Track. China won three States. It is especially noteworthy world competition with Euro• golds in the field and track ev• that all five new records were pean participants. Zhou Ming, ents. Li Huirong created a univ• created by Chinese athletes. They coach of the Chinese swimming ersiad record in the newly in-

32 BEIJING REVIEW, AUG. 26-SEP. 1, 1991 CULTURE/SCIENCE troduced wowen's triple jump with a length of 14.2 metres. After-hours Life in Wuhu It was the first time for 23-year-old Xiao Yanling to take ^very morning, the Mirror ernment investment, is admis• part in comprehensive interna• Lake scenic spot in the sion free for citizens wishing to tional sports games. Xiao won the E^ centre of Wuhu City, in relax there. gold medal in the women's discus eastern China's Anhui Province, In addition, every year Wuhu with a distance of 64.36 metres. is a scene of vitality. Lovers of holds three large-scale mass cul• The record surprised even the Peking opera sing its melodious tural and sports activities. They athlete as her best result before tunes, some residents gyrate to are the Yangtze River Swimming 1991 was a little over 48 metres. the brisk rhythms of modern mu• Festival in summer, the Chry• The women's shotput title was sic, and others practise Chinese santhemum Art Festival in au• taken by Sui Xinmei who threw wushu. tumn and the Literary and Art the ball 19.94 metres. When the evening falls, work• Flowers Month in winter. Chinese field and track ath• ers' cultural centres, cinemas and The Yangtze River Swimming letes have suffered from definite Karaoke clubs scattered around Festival takes place in June when shortcomings. However, this time the downtown are livened up. the Yangtze River reaches a most of them displayed their ca• Wuhu residents go to these width of about 2,000 metres. pacity to the full in unfavour• places to spend an enjoyable This event is not only loved by able weather conditions. Chen night. the local citizens as a way to Yanping covered 16.97 metres in Wuhu is a major port city on improve their swimming skills, the triple jump. Li Jing passed the lower banks of the Yangtze raise their courage and keep 6.64 metres in the women's broad River. In recent years, the econ• fit, but also attracts many keen jump. omy of the city, with a popula• swimmers from other provinces Ball Games. On July 21, tion of 500,000, has made much and cities. Xia Jiaping defeated Frances• progress. The municipal govern• The Chrysanthemum Art Fes• co Michelotti of Italy to gain the ment, in order to ensure that the tival is held in October when laurels in the men's tennis sin• citizens can relax comfortably the chrysanthemums are in full gles, becoming the first Chinese after a hard day's work, has con• bloom. The chrysanthemum is champion in this event. China structed various recreational fa• the official flower of Wuhu. Up also obtained a bronze medal in cilities. Now, the city has 15 to 1990, the festival had been the mixed tennis doubles. These dance, singing and karaoke halls; held on 16 occasions, lasting 20 triumphs have given Chinese ten• 31 cinemas; 26 video spots and days each time. Last year, the nis players greater incentives to 138 cultural centres. The Mirror chrysanthemum exhibition was challenge their powerful Western Lake scenic spot, built at the cost held in the city's Tieshan Park. rivals. of several million yuan in gov- More than 500 chrysanthemum The Chinese women's basket• ball team lost to the United A children's calligraphy and painting comipetitio n in Wuhu. TANG SHANGHAO States, failing to enter the finals. Although the team played at its optimum level, it was obviously inferior to its riyal both physical• ly- and in attacking tactics. The Chinese women's hockey team came second. The man's volleyball team, was a disappoint• ing fifth. Fencing. In the fencing compe• tition there were many former world champions. However, the Chinese team, won two silvers in women's fc^il and one bronze medal in heavy sword, perform• ing better than they did at the recent World Championships. by Lou Linwei

BEIJING REVIEW, AUG. 26-SEP. 1,1991 CULTURE/SCIENCE varieties and over 50,000 pots waving multi-coloured flags, a were exhibited in 50 mini land• singing group and a band of scape scenes. The spectacle at• waist drummers that sing and New Information on tracts a large number of visitors dance along the streets. During Origin of Japanese Rice the month, there are fashion every year. According to the or• shows, calligraphy and painting ganizers, 320,000 Chinese and exhibitions, performances of po• hinese archaeologists re• foreign tourists went to Wuhu pular songs, tastings of local vealed in July that they during the 1990 festival. dishes and so on. Since 1987, the C have found and verified The Literary and Art Flowers activity has been held four times carbide of 3,000 year-old ja- Month is scheduled for the end with a different emblem each ponica rice (round-grained non- of the year and the following year. This year the symbol is a glutinous rice) and sorghum January. This carnival integrates peace dove with an olive branch in Dalian in northeast China's Uterature and art with local cus• in its bill, denoting that happi• Liaoning Province. toms. A procession begins led ness, good.fortune and courtesy Experts say this discovery is by performances of Wuhu folk fill the city of Wuhu. of great significance for it prov• songs and dances, followed by a by Tang Shanghao and Xu ides new evidence of how I^alanx of motor bikes, people Lanqing Chinese rice travelled to Korea and Japan. The carbide grain was found in 1987 in six jars at the site of the ruins of a house partly built underground at Dazuizi, Dal- ianwan Town, in the Ganjingzi District of Dalian City. Only recently have archaeologists verified that three jars con• tained rice and the others held sorghum. According to agricultural his• torian Professor You Xiuling, up till now it has been known that Japan began to cultivate rice during the late Jomon and the early Yayoi (about 500-200 BC). Japanese scholars concede that Chinese rice spread to Ja• pan by three routes. The central sea route was from the Yangtze estuary and east China's Jiang- su and Zhejiang provinces to Japan's Kyushu. The south• ern route began from China's

ZHANG SHUHE ; southeast coastal areas and is• Pegasus, the first American popular band to visit China, lands, and the northern route was from north China to Japan made its debut at the Beijing Great Wall Sheraton Hotel in via Korea. At present, the cen• mid-July, prpsenting American popular songs from the past tral route is seen as the most four decades. likely correct theory. Undoubt• edly the discovery of rice on the Liaodong Peninsula will prov• ide new evidence on how Chinese rice went east to Japan.

34 BEIJING REVIEW, AUG. 26-SEP. 1,1991 Frescoes and Colour Sculptures Ne Zha, a child god in fairy tales of ancient China, defeated in battle not only another god but also the Dragon King. These fres• coes and colour scupltures por• traying Ne Zha are displayed at the Ne Zha Palace in the seaside resort city of Beidaihe. They were created by teachers and students of the Art Department at Beijing Peili University. Black Carp—a new star of China's graphite industry.

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