1 A CHINESE WEEKLY OF NEWS AND VIEWS

Vol. 31, No. 42 October 17-23, 1988 Contradictions Sharpen Between North and South

THE TIBETANS OF QINGHAI PROVINCE The residential quarters in the mountainous areas of Nanjing County, Fujian Province have several unique characteristics. The earth- wooden buildings are usually around 12-13 metres high and cover an area of 1,000 square metres. Their walls are thick to keep out both the damp and cold, making them warm in winter and cool in summer.

Unique Mountain Homes

This 200-year-old building was constructed during the reign of Emperor Qianlong in the Qing Dynasty (1 644- 1911).

Each room of buildings is in the same pattern. One building can accommodate 20 families — or about 1 00 people. All the residents, old and young, live in harmony as one big family. Photos by Kaiyuan HIGHLIGHTS OF THE WEEK BeijingRsj^ir Enterprise Reform Sees 'Third Wave' VOL. 31. NO. 42 OCTOBER 17-23. • Since began to reform 10 years ago, it has experienced two waves — delegating power to enterprises and practising the CONTENTS system of contracted responsibility. The current practice of merging enterprises is called the "third wave." It is reported NOTES FROM THE EDITORS 4 that more than 1,500 enterprises have been merged so far (p. 5). The 'f^cd Sorghum' Phenomenon

EVENTS/TRENDS 5-9 Tibetans in Qinghai Province 'Third Wave' Enterprise Mergers • Qinghai Province has a Tibetan population of 810,000, Ddegatei? Urge to Eradicate scattered in its five Tibetan autonomous prefectures and one Illiteracy Tibetan-Mongolian autonomous prefecture. Like people of Auto Makers Urge Import Curb other minority ethnic groups around the country, Tibetans in Medical Workers Losing Status the province have enjoyed preferential financial and political Chinii's Exports Increase Sharply treatment from the central government (p. 14). Studies of the Onlv Child Published Police Fighi Crimes on I'raiiis Tlie 'Red Sorghum' Phenomenon >i,y. Weekly Chronicle fOctober 3-9) • Since its first screening, the Xian Film Studio's production INTERNATIONAL 10-13 Red Sorghum has evoked heated debate across China. It has Soviet Union: Politburo "Cleans been praised as a masterly artistic achievement, and strongly I House' castigated for having ideological problems. Despite the Poland; Rakowski Unties. Continues controversy, however, no official comment has been passed j Reform upon the film, giving rise to a situation known as "the Red l.ibya-Chad: Accord Signifies Sorghum phenomenon." It is claimed this marks the opening of African Hope a new era of prosperity for China's arts (p. 4). I llaly: Co-ordinaling to Curb , Irfflatibn :';i:''W'SS)Mf'' / Kenya: Suilabic Way, Rapid North-South Conflicts Tend to intensify nevelopmenl Qlnghai Province's Tibetans 14 • Since entering the 1980s, the world has seen some easing in Xue Hengiia-—Grasslands' East-West relations but an intensificafion of North-South Reviver 17 contradictions. This situation, if allowed to drift along, will ' North-South Relations at the surely seriously affect the world economy, ^especially the I Crossroads 18 economic stabiUty and growth of the developing countries. The : Zhao Zhangguang—inventor of developed world shoulders a special responsibility for checking i 101'Hair Tonic 22 the dangerous trend (p. 18). Facts & Figures (A Decade of Reform IV): Investment in Fixed Assets 25 Reshuffle Strengthens Gorbachev's Reforms FROM THE CHINESE PRESS 28-29 BUSINESS/TRADE 30-31 • In a major effort to press ahead with his ambitious reform CULTURE/SCIENCE 32-33 programme, Mikhail Gorbachev reorganized top Soviet TOURISM 34 leadership and consolidated his posifion (p. 10).

of Qinghai Lake. Chen Zonglie

Siilisciiplioi-. i,ni;s (1 vt-'T): USA US$24.00 Piiblislu;d fveiy M(}[i(i,iv 1>V G.neiii! Erlitoii;il Office Tel 8314318 Australia A.$24.00 Canada Can.$23.00 BEIJING REVIEW tniihsh Dnpl 111 831 5599 Ext 546 New Zealand NZ.$33.00 /4 BniwanzhiKiiui Rond 'ji^i ii'^ti hy China International Book UK £13.00 Br,|,ny 100037 Trading Corporation iGUOJI SHUDIANl Ihe People s Hijpiililic o( Ch O Box 399. Beiiing CIiiii.i NOTES FROM THE EDITORS

The 'Red Sorghum' Phenomenon

Although the Gold Bear winning film "Red Sorghum" has been widely praised outside China, domestically it has provoked Increasing controversy. Initially this centred on the film's content, with views polarizing for and against. But more recently, the manner In which the debate has continued has had greater impact than the film itself, giving rise to "the Red Sorghum phenomenon." by Li LI

he Xian Film Studio's produc• enon reflects the gradual form• government are making efforts to Ttion Red Sorghum has received ation of a lively democratic improve outmoded methods of widespread international acclaim. atmosphere in Chinese artistic, leadership in ideological areas. At the West Berlin International ideological and social circles Previous contention on right and Film Festival, it was awarded the under the environment created by wrong in literary circles has Gold Bear prize. But in China, the China's reform programme and invariably ended with arbitrary film has evoked mixed feelings. open policy. official rulings. Moreover, these On the one hand, the media has After 1957, and especially were often raised to the plane of praised it for its rich national during the chaotic decade of the struggles between two political colour, dynamic structure and "," it was hnes, and frequently had disas• distinctive characterization. On common that one view would trous effects. the other, it has been severely overwhelm all others. This History has proved this high• attacked for having ideological practice of "uniform opinion" led handed practice unsuccessful. problems and lacking artistic to a long-standing monotonous And although in the midst of the content. It is reported that when and depressed state in literary and heated debate over Red Sorghum Red Sorghum was screened in a ideological circles, which the some people expressed the hope school for senior cadres, 70 discussion of Red Sorghum finally that the "top leaders" or percent of the audience disagreed ended. In the last few months, "authoritative newspapers and with the content of the film. Many people holding differing views magazines" would declare which questioned why the cultural have felt free to speak their minds side they favoured, the Party authorities had allowed the film to with no misgivings or fears of and government have consistently be produced. political repercussions.. replied that it was not their task to On various other political An atmosphere of democracy interfere. Through comment and platforms and in newspapers and equaUty has emerged, rarely discussion people should reach across the country its merits and witnessed since the founding of the their own conclusions. weaknesses have been discussed People's Republic. Indeed, an and argued. Such a debate has authoritative literary personage History has also proved that in been unseen for many years. But has commented that the debates on art and theoretical or most significantly, there has been emergence of the Red Sorghum academic questions, allowing free no official comment, interference phenomenon marks the opening discussion and the airing of or guidance on which view should of a new era of prosperity for different views has helped clear hold sway. Artistic circles have Chinese literature and art. distinctions to be drawn between dubbed this situation "the Red The fact that China's author• right and wrong. It is only in this Sorghum phenomenon." ities have signalled their desire to way that new ideas and forms of avoid involvement in the debate art can emerge. The emergence of this phenom• indicates both the CPC and the •

4 BEIJING REVIEW, OCTOBER 17-23, 1988: m EVENTSARENPS

for industrial and commercial enterprises has opened in Fuzhou, capital of Fujian Province in 'Third Wave'— Enterprise IViergers southeastern China. Now Baod• ing, Wuhan, Chengdu, Tainjin hinese economists recently ises are also commodities" and other cities are planning Ccalled the policy of enterprise indicates a break from the similar markets. • mergers the "third wave" in theoretical base that China's China's current industrial reform. socialist economists have long Delegates Urge to The "first wave" refers to the pursued in guiding the country's reform of delegating power to economic growth. Eradicate Illiteracy enterprises. The "second wave" Many economists say that indicates the system of contracted mergers will give a great impetus ie United Nations Educ• responsibility. Both waves ap• to the deepening of the current Tational, Scientific and Cultural peared in succession in the past 10 economic reform and to the Organization (UNESCO) held its years. smooth operation of the country's Ninth Regional Conference of "The merger of enterprises had economic mechanism. National Commissions in Asia long been considered a pheno• The biggest benefit from the and the Pacific recently in Beijing. menon seen solely in a capitalist mergers has been better organiz• The September 22-27 confer• society," said an aricle in the ation of enterprise property, an ence called on member countries Economic Daily, a Beijing-based official of the State Commission to prepare for the forthcoming national newspaper, "but now it is for Restructuring the Economy International Literacy Year. playing a marked role in China's said. At its 42nd session in December economy." 1987, the UN General Assembly More than 1,500 enterprises China's state-owned enterprises designated 1990 as the Intern• have been merged so far, and the have fixed assets of 600 billion ational Literacy Year and invited provinces of Henan, Guangdong, yuan, of which one-third fail to UNESCO to assume the leading , Hebei and have achieve desired returns. More role in preparing for its ob• had about 100 enterprises each than 6,700 industrial enterprises servance. Regional' programmes taken over by others. lost a total of 4.7 billion yuan in and activities are to encourage An incomplete survey of eight 1986. By the end of July this year, universal primary education and cities and seven provinces showed 6,364 state-owned enterprises, 17 the eradication of illiteracy. that by March of this year, 340 percent of the total, had suffered Delegates from 27 countries in small- and medium-sized factories economic losses of 3.63 billion the region, including China, Japan had been absorbed into 188 yuan, and thus become ripe for and the Soviet Union, attended enterprises. Industrial enterprises mergers. the conference. , accounted for the Hon's share— On the other hand, of the 557 vice-chairman of China's NPC 93 percent. merged enterprises, 405 have Standing Committee, and Li already begun making money. Tieying, state councillor and In Baoding, a medium-sized city Merger is "the inevitable minister in charge of the State in Hebei Province, 13 factories consequence of the development Education Commission, were took over 14 enterprises that were of the commodity economy," said present at the opening ceremony. in debt and have since tripled Wu Deqing, an associate profes• In his address, Li said that profits, Yuan Zhantao, an official sor of economy at the Chinese economic and social development of the city government, said. People's University in Beijing. in Asia and the Pacific region is Some of the merged enterprises Merger also brings benefits to unbalanced. Many countries, have turned to other lines, thereby workers. When the Baoding including China, are currently improving the city's product Napkin Paper Plant was taken undergoing reform and facing mixture and saving the city several over by a paperboard factory, development in these areas. million yuan in subsidies. Zhang Baoping, a 25-year-old Economists believe that the female worker was delighted "We feel that the key to national laws of capital accumulation play because it meant her income prosperity and social progress lies a decisive role in a commodity would double. "We take part in in the development of education, economy, leading to competition, the management of factories and science and technology. There• mergers and the "survival of the enjoy the same pay and welfare as fore, cultural development must fittest." other workers," she said. be given first priority," he said. The new concept that "enterpr• A fixed assets auction market The Chinese government and

BEIJING REVIEW, OCTOBER 17-23, 1988 5 EVENTS ARENDS people are ready to exert all efforts primary school-age children were powers over foreign currency in promoting exchanges and co• not enrolled in schools, and 33 usage, have asked for more operation among the countries of million children had dropped out imports of foreign products. the region. of a primary school before According to the corporation, Li highly rated UNESCO's completing the fifth grade. tourist agencies alone want to efforts during the past two decades import 1,700 cars, tourist coaches in promoting co-operation among The Philippine delegation said and buses this year and 7,500 in its member states, especially the that education is a major factor in the coming three years. developing countries. In recent development and a basic human There are over one million years, through the joint efforts of need. The delegation requested imported cars, jeeps, buses and the director-general and member UNESCO's director-general to trucks in the nation. Most of them states, UNESCO has committed whole-heartedly support and were imported between 1983 and itself to reform of the organiz• make available sufficient financial 1986. Many of them will be ation. Some initial results have assistance to member states in discarded or need repairing in the' already materialized, he added. making their educational efforts, especially in rural areas. next year or the year after. "I'm convinced that the current UNESCO's Director-General The city of Beijing needs about reform is bound to bring new life Federico Mayor visited China 2,000 cars and other automotive into the organization, so that it from September 23 to 27. products for the 11th Asian will make even greater contri• Observers from UNESCO mem• Games in 1990 to accommodate butions to both civilization and ber states and other countries in more than 10,000 visitors. the progress of humanity," Li and outside the region and Although it is two years away, said. representatives of concerned inter• Japanese auto salesmen have At the recent conference the national organizations also atten• already begun presenting cars as a Indian delegation pointed out the ded the conference. • gift to some customers in a bid to educational challenges of the Asia edge their way into the market. and Pacific region. It was noted The Chinese spokesman that this area encompasses some Auto Makers Urge warned, "We will not let imported of the world's most populous and products affect China's automo• illiterate countries. The region Import Curb tive industry. The domestic also has the highest number of market should rely on the national non-enrolled children in the hina's auto makers are industry, and Chinese customers primary school age-group. Cappealing to the government should help develop it." Therefore, the national com- to curb the large-scale influx of China has imported advanced rnissions in the region should take imported cars, minibuses and technology for manufacturing an active part in the programme trucks. motor vehicles and launched co• for the universalization of primary A spokesman from the China operative production with foreign education, which was launched Automotive Industry Corp. said, firms, he added. last year, the delegation said. Also "The whole society should watch the commissions should strive for this closely, and the government As a result, he said, both the total eradication of illiteracy in should take measures to tighten technology and product quality Asia and the Pacific by the year control." He noted that the have been improved, some 2000. The delegation expressed country should no longer have to products are even being exported. hope that UNESCO member spend a large amount of foreign "We have enough capacity and states will promote exchanges of currency to import motor vehicles; technology to provide various information, experience and otherwise, it will affect the kinds of products," he declared expertise to fight regional modernization of the national and listed favorable developments illiteracy. automotive industry. as follows: According to statistics presen• The State Council made a The Red Flag limousine, which ted by the conference, in 1985 decision last year to tighten was taken out of production there were an estimated 889 control on the import of cars, several years ago, will roll off the million adult illiterates in the tourist coaches and buses. Buyers producdon Hues again soon with a world. This is more than a quarter were encouraged to use China- new look; of the total adult population. In made products so as to save The annual output of the Asia and the Pacific, the number foreign exchange disbursement, he Shanghai-Santana sedan will of illiterates had increased from said. But recently, some regions grow to 15,000 this year; 537 milHon in 1970 to 618 milhon and departments, especially those The Changchun No. 1 Automo• in 1985. About 100 milUon which hold decision-making tive Factory will turn out 3,000

6 BEIJING REVIEW, OCTOBER 17-23, 1988 China's First National Farmers' Games openned in Beijing on October 9, 1988. 1,400 athletes competed in seven categories: track and field, basketball, soccer, table tennis, shooting, Chinese-style wrestling and 50- kilograme-load cycling. There also will be two demonstration events: wushu (Chinese martial arts) and Mongolian-style wrestling. The games end on October 16. left: Athletes, representing over 800 miUion farmers, march into the arena, right: Farmers from Shaanxi Province perform the "Dragon Dance."

Audi-100 cars next year; and respected before 1966, but now working in a big hospital in Beijing Tianjin will manufacture 5,000 things are different and there are said it was income; 28 percent, cars next year. many problems in the medical their professional titles; and 16 Meanwhile, Guangzhou is pro• field," said the director of a percent, medical reform, with 8 ducing Peugeot cars, while Wuxi is nursing department in a Beijing percent miscellaneous and 24 manufacturing Sanos tourist hospital. "The major one is low percent no answer. buses. pay," he added. Many medical experts are not in According to the corporation, Almost every doctor and nurse favour of doctors offering services China is also speeding up surveyed complained that they do in their spare time. "That will construction of three car- not get adequate pay for their hard surely distract their energy and producing bases in Shanghai, work. affect their professional work," Changchun and Shiyan City, However, the poll shows that one doctor said. Hubei Province. • few people are planning to leave The poll also shows that 60 their jobs or shift to other percent agree that all heads of occupations. About 36 percent of hospitals should be elected instead Medical Workers those surveyed said that despite of appointed. • Losing Status the low pay and poor working conditions in China's medicial service, they still like their jobs. Ctiina's Exports recent survey conducted by "It would be a regrettable thing Increase Sliarply A Health News among 300 to abandon what we have learned medical workers in Beijing and at school. So I can't tear myself hina achieved a sharp increase Wuhan, the capital of Hubei away from practice," said a of 14.8 percent in its exports, Province, shows that 60 percent middle-aged doctor. C complained their social status is totaUing 28.5 biUion US dollars by declining. "With social and economic September 20, a Chinese minister While another 60 percent of development, I'm sure the state said. them still think medical work is a will certanly take measures in the Zheng Tuobin, minister of noble profession, 40 percent of future to improve our working Foreign Economic Relations and them say that they have had no and living conditions," he added. Trade, said at a meeting that alternative but the medical Answering the question "What China is boosting its foreign trade profession. are you most concerned about by exporting commodities worth "Medical work was always now?", 24 percent of those over 100 miUion US dollars a day.

BEIJING REVIEW. OCTOBER 17-23, 1988 7 EVENTSARENDS

At the same time, he continued, tighten control of imports. China impose strict demands on and set the structure of export commod• will not import products that can unrealistic goals for them. ities has been improved, with the be made at home, he said. The article called attention to proportion of industrial goods Other measures taken by the families in which the parents rising from 61.2 percent last year ministry include stricter manage• educate their children in a to 68.2 percent this year. ment of export and import "democratic manner" — mainly Zheng said China's electrical planning, export ratios, licences through persuasion with sufficient and mechanical products have and customs, as well as the attention paid to the self-respect of found a good market in North adoption of an agent system for the child. America and Western Europe, exporters to encourage compe• In character development, chil• while exports of light industrial tition among firms, Zheng said. dren in families of this type show products are also increasing. no difference from children with "There is a good prospect for brothers and sisters. • further development since some of our technology for manufacturing Studies of the Only electrical machines has entered the Child Published international market," he added. Police Fight Crimes on Trains According to the minister, nly children tend to be much China's imports have reached 23.9 O brighter than children with billion US dollars at present, 24.6 brothers and sisters, new surveys percent more than the same period ajor criminal cases on show. M Chinese railways have of last year. Zheng Tuobin said This is one of the results of China has achieved a foreign trade drastically increased this year, research carried out in recent while those involving violence surplus, with foreign currency years. The studies, which began in reserves rising this year. j have dropped just as rapidly. 1981, cover the influence of the More than 3,000 such cases Speaking about the intern• family structure on the characters ational market, he pointed out, took place in the first three of only children, methods used by quarters of this year, 50 percent "At present, monopoly and parents to educate them and how protectionism are growing stron• more than in the same peroid in only children are affected by what 1987. ger." He called on domestic their parents and teachers expect producers to boost exports of light Theft of passengers' belongings of them. and of freight has accounted for 80 industrial products, garments, Here are some of the findings: canned food, arts and crafts and percent of the cases. The household electrical appliances. Most only children are better remaining cases include smug- Domestic enterprises should fur• developed physically than chil• ghng, robbery, rape, murder, ther improve product quality dren with brothers and sisters. explosion and swindling. Indiv• because "quality is the best Surveys conducted -so far show iduals and the state have lost 15 weapon to deal with that in some areas 80 percent of million yuan in these cases, a protectionism." the only children are taller and 90 senior police official said. Zheng also called on producers percent heavier. Over 80 percent of these cases to apply more advanced tech• Generally speaking, only chil• have been cracked and 9 million nology to the production ol' dren are cleverer, as shown in an yuan of the lost money recovered, traditional export commodities. IQ test conducted on 73 children said Yue Fangzhun, chief of the of the same age in a Nanjing Public Security Bureau of the As to foreign trade, Zheng put kindergarten. Forty of them were Ministry of Railways. forward five measures to tackle only children and the other 33 all He attributed the rise in crime the problems stemming from had brothers and sisters. mainly to huge volume of China's reform, in which effective passenger transportation. Many control of businesses trading with Many only children now reign of the passengers are business foreign firms has been given to as "kings" or "queens" of their people and purchasing agents local authorities or businessmen. famiUes, as each of them is cared carrying big sums of money He said the ministry will for by a host of adults besides their packed in leather cases, handbags disband some inadequate com• parents— aunts, uncles and or even paper boxes. This has panies or adjust the scope of their grand-parents on both sides. created an ideal environment for activities, and companies found to There are also cases in which crimes. be engaged in illegal activities will only children become timid and The situation is especially be punished. The ministry will also dependent because their parents serious in the developed provinces

BEIJING REVIEW. OCTOBER 17-23, 1988 and cities in south China such as Weekly Chronicle next five years to speed up the Guangdong and Shanghai, Yue construction of its commodity said. (October 3-9) grain base in northwestern People make huge purchases China's Gansu corridor area, a there and transport them back to POLITICAL senior official of Gansu Province the north for sale. Since most says. Chinese people have no access to Octobef 4 According to a plan of the bank checks or credit cards, these • 's province, the area's grain output people carry cash on the trains. General Secretary will reach at least 2,100,000 tons in Passenger cars are usually 30 meets Yasser Arafat, chairman of 1992. percent over loaded. Sometimes the executive committee of the the figure reaches 70 percent. Palestine Liberation Organization October 6 Riding in such a crowded (PLO), who arrived in Beijing for a • Chen Guangjian, director of environment across a big country visit at the invitation of the the Office of the Committee on like China makes passengers Chinese government. Clarifying Capital Construction restless or sleepy, leaving them Zhao says that the struggle Investment of the State Council, vulnerable to the professional waged by the Palestinian people says that gross capital construc• railway criminals. against Israel's armed occupation tion investment grew at an annual Most of the criminals on the is of great significance for rate of 18.8 percent between 1986 freight cars are farmers living promoting an all-round and just and 1988, which exceeded the 16 along the railways. Others include solution to the Middle East percent growth in national jobless people and juveniles. problem. income. The situation is expected Many of them attack the railways to get worse. in well-organized groups. October 5 He says the construction of They take advantage of the • Meeting with visiting Kenyan many projects that are outside the poor protection of the freight cars, President Daniel Arap Moi, state plan should be halted so as to which are often open or covered chairman notes curb inflation and cut social with only canvases. two basic questions in the world commodity supplies. "These railway tjiieves take today: the East-West one and the whatever they can put their hands North-South one. The former is a oUj^which ranges from household question of peace, while the latter CULTURAL electric appliances to fruits, is a question of development. He stationery and industrial metal says international tension is October 5 materials," Yue said. "They take easing, and that this is a general • The complete works of Zhu our railways as a huge multi• trend. Ziqing (1898-1948) are being purpose department store." President Moi arrived yesterday published in China, Xinhua Some criminals aim at the in Beijing for a four-day state visit reports. railway equipment. They cut to China. Zhu was a famous writer, poet, communication cables, pull out educator and patriot known for track nails, and take tracks and October 8 his Hterary style and patriotic sleepers from railway sidings. • The Sixth National Congress stand. The first three volumes are Some use the latter to build of China Democratic League now available, and the last seven houses, but most of them simply opens today in Beijing, Renmin volumes will be published in four sell the stolen materials to Ribao (People's Daily) reports. years. purchasing stations for used The meeting will review and goods. sum up the work accomplished October 9 According to Yue, understaff- since the last congress was held • The first national farmers' ing of railway police organizations and formulate the tasks for the sports meeting opens at the and their poor equipment also next five years. It will revise the Xiannongtan Statium in Beijing contribute to the increase in crime. league's constitution, and a new with more than 1,000 athletes "Before 1980, there were almost central committee will be elected. from various parts of China no cases involving a loss of 1,000 participating, Renmin Ribao yuan or more. Now we have to ECONOMIC reports. deal with 200 such cases each President , month and our force has been October 5 Premier and other top enlarged by only a few thousand in • The state will build more than state leaders are present at the the whole country," Yue said. • 35 irrigation works during the opening ceremony. •

BEIJING REVIEW, OCTOBER 17-23, 1988 9 m INTERNATIONAL

within and outside the CPSU. On SOVIET UNION September 23 Gorbachev openly admitted that his country is Politburo 'Cleans House' entering the most difficult mo• ment since the reform programme Recent changes in top Soviet leadership are seen by political was introduced. He said the analysts as a crucial move in implementing the reform conservatives had formed an programme initiated by Mikhail Gorbachev. alhance with radicals and that the reforms need a new generation of leaders. The new shake-up reduced the he biggest personnel change in when the decision to hold the number of Politburo members top Soviet leadership in three special plenum to reorganize the T from 13 to 12 and the average age years took place at a hastily top leadership was annonced, from 66.5 to 62.3. Of the arranged plenum of the Central Politburo member and Foreign Brezhnev-era Politburo members, Committee of the Communist Minister Eduard Shevardnadze only Gorbachev and Vladimir Party of the Soviet Union (CPSU) was in New York attending the Shcherbitsky remained. The 18 and a special session of the United Nations General As• other Politburo and Secretariat Supreme Soviet, the country's sembly, Alternate Member of the members were elected after parUament, held respectively on Politburo and Defence Minister Brezhnev died. Septmeber 30 and October 1. Th^ Dmitri Yazov and Chief of Staff of Igor Ligachev, second man ageing Andrei Gromyko "decided the Soviet Armed Forces Sergei within the CPSU who used to to resign" and was relieved of his Akhromeyev were visiting India preside over the Secretariat, Politburo membership. The post and Sweden respectively. They responsible for cadre and ideolog• of president of the Presidium of were summoned to return home ical work, is going to concentrate the Supreme Soviet, which he has hurriedly. his energy on the thorny problem held since 1985, was transferred to The seemingly abrupt re• of agriculture. Mikhail Gorbachev, currently organization is in fact a natural general secretary of the CPSU. result of the debate around General Secretary Gorbachev Four other top leaders were also reforms that has been going on for concurrently assumed office as the sacked from their posts, while five quite a long time in the Soviet Soviet head of state. He pledged to were promoted into the Politburo Union. According to the official do the utmost to strengthen the or Secretariat of the CPSU. Some TASS news agency, some people power of the Supreme Soviet. The government members were read• openly called for the resignation of resolution of the 19th CPSU justed accordingly. Andrei Gromyko and Mikhail Conference states that he will have Vadim Medvedev, newly pro• Solomentsev at the 19th National the power to decide on key moted Politburo member, stressed Conference of the CPSU held in questions concerning internal, at a press conference that the late June, protesting that they external and defence issues. personnel change was a major step actively carried out the stagnation The personnel change, though aimed at implementing the policy policy of the Leonid Brezhnev^era greatly facilitating the reforms, of perestroika (restructuring) and in the past. will not eliminate all the problems realizing resolutions adopted by After the conference, heated in the road of reforms. As the Central Committee of the discussions over a series of issues, Gorbachev warned before the CPSU. It showed the Party's such as the evaluation of history, session, it is unwise to make commitment to reforms and the speed and scale of reforms and people expect miracles. determination to carry out the foreign policy, continued both by Wan Chengcai resolutions, he said. POLAND World opinion generally be• lieves that this personnel change will help enhance the reform RaitowskI Unites, Continues Reform programme that is under way in Mieczyslaw Rakowski has been appointed as Poland's new the Soviet Union because strong reform proponents assumed key premier by the Sejm. His government will further promote posts in the CPSU and govern• economic reform by way of reconciliation and new strategies. ment departments. However, they were surprised at the abruptness of oland's Sejm (parliament) owski, member of the PoUtburo the change. On September 28 Pappointed Mieczyslaw Rak• and secretary of the Polish United

10 BEIJING REVIEW, OCTOBER 17-23, 1988 Workers' Party, as the country's are indications that this has his government will enjoy extens• new premier on September 27. The become the primary political goal. ive social credibility. new government headed by In August, the eighth plenary The urgent problem faced by Rakowski will implement some session of the Polish United the new government is the new policies while insisting on Workers' Party decided to set up a economic issue. According to the existing lines of reform, sociaUst national reconciUation committee decisions of the Party's eighth innovation and consultation. and approved the proposal of plenary session and the Sejm's last Implementing socialist reform Interior Minister Czeslaw Kiszc- meeting, the government will take relevant to current trends is the zak to hold roundtable meetings two years to reorganize the established policy of the ruUng to be attended by representatives country's economy. The govern• Polish United Workers' Party, the of various circles. The party's ment is expected to try to perfect goal for which its allied parties decision is seen as an endeavour to the existing economic structure fight and the general demand of unite all parties and organizations and mechanism and readjust the PoHsh people. Governments in that uphold socialism with strategies and policies. ElTorts the past seven years have made opponents who support Poland's have been promised to check efforts in this respect. Rakowski constitution in order to establish a inflation and put an end to the promised the Sejm soon after the broadly based alUance for reform. shortage of supplies. Price reforms appointment that he would In addition, the office of the are also expected to proceed, but continue to carry out political and administrative coalition—the at a slower pace. Likewise, economic reform "resolutely, Polish United Workers' Party, readjustments of investment indomitably and without delay." United Peasants' Party and policies and finances have put on To demonstrate this, he also said Democratic Party—will be stren• the agenda of the new govern• his cabinet will consist of people gthened and perfected. In this ment, informed sources said. with a similar resolve. manner, the new premier has said by Jing Wuwu The new government's staunch determination will be needed to meet Poland's current social and LIBYA-CHAD economic difficulties. These set• backs, following some progress Accord Signifies African Hope achieved by the economic and political reform of recent years, have raised internal disagree• Libya and Chad declared a restored diplomatic relationship ments. 'Poland's historical, polit• on October 3. The decision was welcomed worldwide and ical and cultural traditions differ especially in the African countries. from those of other socialist countries. Although the country's various social groups, political he resumption of diplomatic and now, at last, the normaliza• parties and factions all demand Trelations between Libya and tion of bilateral relations has been reform, they differ on the means Chad on October 3 is the best news realized. This move toward and end in accordance with their from northern Africa since the friendship also favours the own interests. All these contradic• accord between Algeria and maintenance of peace and stability tions will be considered by the new Morocco. Both Libya and Chad in the Africa continent. government when it makes have expressed wiUingness to Since the beginning of this year, concrete policies, and past pract• settle their disputes peacefully. reconciliation has wafted Africa ices will be perfected or adjusted. Several large-scale armed con• like a soft breeze. In April, The ruling party's decisions at flicts had broken out between Ethiopia and Somalia resumed recent central plenary sessions, its Libya and Chad because of a diplomatic relations through a allied parties' policy statements historical dispute concerning the peaceful dialogue. Since May, and Sejm's decisions have in• ownership of Aozou. War ravaged Angola, Cuba, South Africa and dicated some trends of the new both sides and birthed turbulence the United States have consecuti• governmental policies. and instability in the region. vely held five rounds of official Mediated by the Organization of talks and made distinctive achie• As for political structural African Unity(OAU) and com• vements regarding the question of reform, the new government will monly sought by all parties Namibia's independence. Algeria further promote national recon• involved, the peace effort appears and Morocco, who clashed ciliation in a bid to enlarge the to be sincere. A ceasefire was concerning ownership of the social base of the cabinet. There declared "in September last year. Western Sahara, have also BEIJING REVIEW, OCTOBER 17-23, 1988 II m INTERNATIONAL reopened diplomatic channels. tion. The African continent bonds could be sold, and the More African countries have urgently needed a peaceful central bank had to commit itself realized that active disagreements environment in which to accumu• to purchasing the surplus. So, among third world countries can late financial resources for excess paper money had to be be settled through peaceful means. construction. Peace and stability issued, and this led to the rise of Brut force only resulti in mutual became the common hope. The Italy's inflation rate. destruction. reconciliation between Libya and To stabilize the lira's exchange The reconciliation trend in Chad was a product of such hope. rate and resume the balance of the Africa has its profound causes. Of course, there are still many country's international payment, For many years, the African problems inherited from history the Italian government adopted a countries' economies have been in between Libya and Chad, and also monetary policy that was not disarray. Especially in some hot among other African countries. restricted by domestic demand. In spot areas, the consequences of The task demands mutual unders• July 1981, it resolutely divorced long-standing war chaos have tanding and patient consultations. the central bank from the Ministry been dehabilitating. Poverty, frus• The breeze of African reconcilia• of the Treasury. In this wayj the tration and war-weariness have tion must be powered by common central bank would not have to increased daily. People have efforts. bear the obligation of purchasing longed for peace and rehabilita- by Duan Xin unsold bonds, and the Ministry-of the Treasury must issue bonds in line with the status of the country's ITALY money market.

Co-ordinating to Curb Inflation This decision strengthened the central bank's independent con• Measures taken by the Italian government have proved to be trol over money distribution and very effective in curbing inflation. reduced its money supply. Before it was made, the interest rate of the bonds was lower than the inflation he crisis that happened to the So, he maintained, to curb rate. Since the decision was made, TWestern countries' economies inflation, Italy must proceed from the distribution of bonds was in the mid-1970s and early 1980s actual conditions and adopt co- restricted by the money market led Italy's economy to a great ordinative measures in the fields of situation and the interest rate of predicament. The country's gross exchange rate, currency, wage the bonds rose and exceeded the domestic product (GDP) de• revenue, and finance and budget. inflation rate. Consequently, creased and even showed negative buyers of the bonds also increased. growth; financial deficits were Italy's membership in the To control domestic purchasing enormous; the grand total of European Monetary System power, lessen wage pressure, and national debts exceeded the GDP; (EMS) has played an important strengthen the international com• trade deficits increased and the role in reducing the country's petitiveness of Italy's industry, the inflation rate rose to more than 20 inflation rate. Lira, Italy's money, Italian government decided in percent. had been quite weak and 1984, through a referendum, to Confronted with the situation, susceptible to blows. In March adjust its wage indexation regul• the Italian government adopted 1979, Italy took part in the EMS ations (also called the sliding wage forcible measures to adjust its and benefited greatly from the scale), which were introduced in economy. Currently, the mea• membership. Because EMS mem• 1969 and had been subsequently sures, which stressed curbing bers follow a fixed-exchange rate followed. Owing to the adjust• inflation, have produced good system, Italy was able to maintain ments, the growth margin of results. From 1980 to 1987, Italy the lira's relative stability within wages in line with the rise of has succeeded in achieving an EMS. inflation rate dropped. annual growth rate of 2 percent, To adjust the monetary policy The Italian government also and the inflation rate has dropped was another important measure to took a series of strict financial from 21.7 percent to 4.6 percent. curb inflation. For many years, austerity measures to increase its An official from the Bank of the Ministry of the Treasury revenue and reduce its expendi• Italy said that factors in the issued a great number of bonds in ture. The proportion of financial economic structure and an an attempt to compensate the deficits in gross domestic product imbalance in economic develop• country's enormous financial dropped yearly; it comprised 14.5 ment have led to Italy's inflation. deficits. However, not all the percent in 1985 and 11.6 percent in

12 BEIJING REVIEW, OCTOBER 17-23, 1988 I

1987. for these inflation-curbing mea• 87 budget, the priority of Moreover, Italy has also made sures. For example, unemploy• government planning was to great efforts to increase produc• ment has increased. At present, strengthen agriculture. Therefore, tion, reduce costs, innovate the Italian government is continu• the agricultural appropriations products and infiltrate the intern• ing its efforts to eliminate the still- increased 26 percent above those ational market. Its trade deficits existing threat of inflation to its of the previous year._ Other have also been reduced somewhat. economy. priorities included stabilizing Of course, Italy has paid a price by Jin Biao prices of the agricultural means of production, such as fertilizer, and KENYA providing low-interest loans to small enterprises based on Suitable Way, Rapid Development agriculture. Third, it encouraged invest• Kenya, since its independence, has provided a way suitable to ments from foreigners. Currently, its specific conditions to develop its economy. there are more than 4,000 joint ventures and enterprises exclus• ince its independence at the by degrees a mixed economy ively owned by foreign capital in S end of 1963, Kenya, under the system through safe and gradual Kenya. Since independence, the leadership of its first president interim measures. total private foreign investments Jomo Kenyatta and the current in Kenya have amounted to Under such a system, many US$3.5 bilhon. Besides, there have president Daniel Arap Moi, has economic elements co-existed, and been following a major economic been about US$5 billion in gift competition was encouraged by funds and loans. Foreign invest• policy of stability and develop• the government. The government ment that has resulted in great ments have played an important treated public enterprises and role in developing Kenya's achievements. Kenya's rate of private ones equally. In the non- economic development has been economy. agricultural sectors of current For the purpose of foreign keeping above the average level of Kenya, the state-owned economic African countries. Between 1965 investment influx, the Kenyan element is only about 30 percent, government issued a protection and 1973, the average annual and all the rest is private. growth rate of domestic gross law, stipulating that foreign product of developing countries Second, it focused on agricul• enterprises cannot be confiscated was 6 percent, and for African ture. Kenyan government has and nationalized for any reason. countries 5 percent. For Kenya, it always given priority to the In addition, Kenya has made was as high as 7.1 percent. During development of agriculture with many accessory laws and regul• the general recession of world all kinds of measures to help ations concerning taxation, prices, economy from 1973 to 1982, the insure this policy. Kenya credits and profit in order to create above figures were 4.3 percent and smoothed the way for settling the a better environment for foreign investments. 1.5 percent, but as to Kenya, it farmers' land problems through amounted to 4.4 percent. Last such gradual and moderate means However, Kenya is stll confron• year, Kenya's economic growth as redemption. The government ted with many difficulties in rate was 5 percent. Thus, it has provided farmers with immediate developing its economy. The weak become relatively well-developed technical guidance and credits and economic base is susceptible to in comparison with other African encouraged small farmers to influence by external factors, and countries, especially in the region develop production, in order to a high population growth rate, to of eastern Africa double their share of the total a great extent, has offset the Steady development of Kenya's agricultural products market in achievements of agricultural pro• economy is due to its three major 20 years. Kenya's economic plan duction. Increasing debts and moves: raised the prices of grain to unemployment, as well as social First, it introduced a correct prevent farmers from suffering instability behind the wide gap between the rich and the poor, are policy. When Kenya became profit losses, and it stressed the also major obstacles to the independent, its agricultural pro• de\t of remote rural areas economic development of Kenya. duction and processing industries by constantly increasing But, in general, Kenya's road to began to take shape. However, the investments. government was careful not to development is suited to its demand for productivity in the take measures of nationalization In 1986, the worldwide coffee current stage. in order to avoid an economic price hike and oil price fall shake-up. Instead, it established profited Kenya much. In the 1986- by Wenxan

BEIJING REVIEW, OCTOBER 17-23, 1988 13 m ARTICLES

Qinghai Province's Tibetans

Since 1950, five Tibetan autonomous prefectures have been established in Qinghai. Like other autonomous regions, they have received preferential financial and political treatment from China's central government. At the same time, the province's various nationalities have mutually prospered by learning from each other. by Our Correspondent Cheng Gang

'ew people associate western Altogether, 8.33 million hectares building livestock sheds and pens FChina's Qinghai Province with are available for raising livestock. and storing hay. Tibetans. But 810,000 live there, Yet in 1949, only 7.48 million The government has also made forming 20 percent of the animals were raised. Last year, the improvement of grasslands a population. Indeed, Tibetans have Qinghai's 600,000 Tibetan herders priority, allocating over 15 million lived alongside Hans, Mon• managed 20 million, making the yuan in 1987 for this work alone. golians, Huis, Tujias and Salars in province China's largest producer It has strived to introduce Qinghai for nearly 1,000 years. of yaks and wool—some of which advanced scientific techniques to Many notable Tibetans have been was exported. promote the economy. Recently, a bom there, including the 10th Although Qinghai has clearly strain of sheep with fine wool was Bainqen and the , made great economic strides, it introduced across the province, two leaders of contemporary has lagged far behind China's doubling wool production. "This Tibetan Buddhism. eastern coastal regions. This is alone brought an extra 1,000 yuan Since 1950, five Tibetan auto• partly due to the area's climate— to my family," says Tibetan nomous prefectures—Yushu, constantly threatened by snow• herdsman Lafudam of Hainan Hainan, Huangnan, Haibei and storms, droughts, or other natural Prefecture. Golog—and one Tibetan- disasters. To combat these Investment in crop cultivation Mongolian autonomous prefect• difficulties, the government has has also increased, rising from 7 ure— Haixi — have been estab• allocated several hundred million yuan in 1980 to 10 million lished in Qinghai. Like other thousand yuan each year for yuan in 1987. autonomous regions, they have received preferential financial and Tibetan herder Zhubmagy in Qinghai's Gonghe County has moved into a new tlie- political treatment from China's roofed house where she has her first taste of tap water. central government. At the same jrANG ENYU time, the province's various nationalities have mutually pros• pered by learning from each other.

Economic Development

Before liberation, Qinghai had a backward economy. In Golog, for example, the Tibetans used stone implements to cut wool and harvest crops. As a result, Qinghai's total agricultural and industrial output was worth barely 150 million yuan. By 1987, however, it had risen to 3.663 billion yuan. Qinghai encompasses one of China's five major pastoral areas.

14 BEIJING REVIEW, OCTOBER 17-23, 1988 of whom are under 30. They have all been recruited of their own free will with their families' consent. The monasteries, however, are more than religious centres. Taer Monastery, for example, is well- known for its butter-oil sculp• tures, embroidery and frescoes. It also has four zhacang (colleges) where monks can study Buddhist scriptures, astronomy, geography and Tibetan medicine. The diagnostic methods of Tibetan medicine resemble those of traditional Chinese medicine. But it has developed various of its own treatments and drugs which are still widely used to cure many

WANG JINGYE common illnesses. Nia, an old Cuoke (second from right) is the Til>etan wife of Hui farmer Ma Chengjun in Qinghai's Tibetan doctor who has trained Gangca County. She gets along weli with her three sisters-in-iaw, ail of different many practitioners, says that the nationalities. ingredients for most Tibetan medicines are collected in the Cultural Traditions ism and spend much of their mountains. income on it. Altogether, 545 In the past, doctors usually Caiwa, a member of the Chinese monasteries are now open in practised medicine among the Dancers' Association, works for Qinghai with nearly 10,000 people. But since 1982, the the Qinghai National Song and monks. Taer Monastery is the government has set up Tibetan Dance Ensemble. He devotes largest of these. Every day, a medicine hospitals in Xining, hirriself to performing and creat• continuous stream of Tibetans Qinghai's capital, and the various ing Tibetan dances, one of which come to burn incense and pay prefectures. Local doctors have was awarded a prize in a national homage to Buddha. The monas• been invited both to work in them minorities drama festival. tery has more than 470 monks, 200 and pass on their knowledge. Over the past 30-odd years, a good many Tibetan artists like Caiwa have come to the fore in Qinghai Province, and now most actors and actresses in these prefectures' professional art troupes are Tibetans. Some people of other nation- aUties who have been living with the Tibetans have also devoted themselves to Tibetan art. Yang Xiangdong is such a person. He began peforming on stage in 1971, and in 1983, was awarded a special prize at the 12th Carthage International Art Festival held in Tunis, for a Tibetan Eagle Dance he had created himself. "I am fascinated by Tibetan art. It belongs to those who love it," he says. Rehgion plays an important role in the lives of Qinghai's Tibetans. They believe in Lama-

BEIJING REVIEW, OCTOBER 17-23, 1988 15 •1 ARTICLES

Doctors at Qinghai Tibetan has relaxed selection criteria for is not restricted to clothing. Hospital, founded in 1983 and them. However, training basic- Rafudam, a herdsman from now the largest in the province, level teachers is still an urgent Gonghe County, has opened a have compiled a book titled task. small store which has proved so Proven Remedies of Tibetan successful that his family is one of Medicine. the area's best-known "10,000- yuan households." For this, he The Qinghai Natonalities Press said, "I have to thank my Han has 24 staff members, 18 of whom friends. They told me to are Tibetans. Over the past 34 Higher education has also diversify — so I set up this store years, it has published 1,197 for general goods and foodstuffs." Tibetan books, including ancient expanded rapidly in Qinghai texts, works on Tibetan culture by to create a pool of qualified In agricultural districts, the modern scholars, and literature Tibetans. Altogether, there Tibetans have absorbed know• translated from Chinese. It has are now six institutions of ledge from Hans and Mongolians also published a literary magazine higher learning and 35 on how to farm arable land with titled Zhang Qia Er (dew) which fertilizers and agricultural ma• now has an amateur writing group polytechnics. To ensure chinery. In the towns, bartering of more than 30 Tibetans. sufficient numbers of has been replaced by more flexible Tibetans take the courses on ways to do business with tourists offer, the government has eager to buy Tibetan jewelry, Educational Network relaxed selection criteria for silver bowls, knives and boots. them. However, training To further promote Han- Tibetan co-operation, all the Despite the problems posed for basic-level teachers is still an education by Qinghai's vast autonomous prefectures' govern• grasslands, sparsely populated by urgent task. ments demand that their staff a nomadic people, a network of learn both Chinese and Tibetan, small-scale schools has been and the government of Hainan established. Typical is a boarding Autonomous Prefecture has school in Gonghe County, Hainan "We realize that our Han and started running language courses Prefecture, with its four teachers Mongolian brothers generally for its employees. In public places, and 50 Tibetan pupils. The only have a higher level of education, nearly all signs and notices are school fee is one live sheep — in particularly in technical areas, so now written in both languages, return, the government provides it is imperative for us to develop and many shop assistants can lodging, clothing and a stipend of our educational level," said serve their customers bilingually. 15 yuan a month through to Mudo, the director of the Caihua, deputy headmaster of graduation. Education Bureau in Hainan the National Normal School in As a result, great steps have Prefecture. Haibei Autonomous Prefecture is been made in education since a living example of successful liberation. Before 1949,98 percent integration. Himself a Tibetan, he of yie region's Tibetan population Mutual Exchange married a Han and now has two were illiterate, now 70 percent of daughters. He admits his life has school-age children attend school. Apart from some herdsman in changed, but reckons it is for the In Hainan Prefecture, the number the pastoral areas, few Tibetans in better: "When I lived on the of primary school pupils has risen Qinghai continue to wear their grasslands I never ate vegetables from 1,250 before liberation to traditional dress. Zhuobao, a or slept on a bed. Now I can't do 12,085, and middle school stu• young Tibetan government em• without them. In a traditional dents from 95 to 12,085. ployee in Gonghe County dressed Tibetan family, the man does no Higher education has also in a modern Western-style suit, housework, but now I've got to expanded rapidly in Qinghai to said in fluent Chinese, "I prefer lend a hand along with everyone create a pool of quahfied Tibetans. Western or tunic suits to Tibetan else." Altogether, there are now six robes—they are far more conve• Ding Youde, a Qinghai pro• institutions of higher learning with nient. But I still wear traditional vincial government official, says a total enrolment of 4,728 clothes at our festivals." that ever more families in the students, and 35 polytechnics with But integration and co• province combine partners from 8,095 students. To ensure suffi• operation between the Hans and different nationalities. On the cient numbers of Tibetans take the Tibetans as well as the other whole, he adds, they have proved courses on offer, the government minority ethnic groups of Qinghai quite stable. •

16 BEIJING REVIEW, OCTOBER 17-23, 1988 Xue Hengjia — Grasslands' Reviver

Xue Hengjia moved to a Tibetan prefecture In Qinghai Province when he was 28. Since then, he has helped local people eradicate rats and harmful Insects and establish scientific livestock breeding centres. In April this year, the State Council honoured his work in promoting the progress and unity of China's nationalities by awarding him the title of "model worker." by Our Correspondent Zhou Zheng

wefity-eight years ago, Xue methods led to their adoption by ant and urgent task. And because THengjia left Jiangsu Province increasing numbers of Tibetans. of this he enthusiastically trains on China's eastern coast for the In Dongqinggou, rats have now the Tibetans in professional grasslands of Golog Tibetan virtually been eUminated. In the methods. Autonomous Prefecture in Qing• winter of 1985, Xue instructed the To do this, he visits the hai Province. people of three neighbouring herdsmen in their tents to explain Raised in prosperous Jiangsu counties on how to catch rats. His personally how science can help Province on rice, he knew nothing methods proved so successful that them improve their output. The of the Tibetan lifestyle. At first he the threat of rats was removed for 210 people he has trained to raise could not adjust to sleeping in a 68,000 hectares of grassland animals now form the backbone of tent, eating butter and zanba (a within a single month. production on the Golog Tibetan staple food), and drinking More recently, Xue has concen• Grasslands. tea with milk. trated on cultivating grass, and as Although Xue's income is low He could neither ride a horse ever he has led the way by and he has a family to support, he nor an ox, and when he first set example, personally growing 310 lives frugally and saves his money foot on the Golog prairie, 3,800 hectares. to help local Tibetans in need. He metres above sea level, he saw a As a result, Dongqinggou has has bought medicine for sick seriously rundown area, denuded completed a grassing project, lambs and tickets for students to by rats and insects. supplemented by the construction return to their schools. When Being trained in animal hus• of livestock pens and fences. The someone dies, he gives money to bandry, he immediately resolved project has led to the settling down his family. He has provided to set about ridding the area of of herdsmen. In 1986, individual clothes for the victims of natural these pests and establishing income in the village rose to 975 disasters, and made a 1,000-yuan scientifically run livestock yuan, 3.3 times higher than in donation to the NaUonality breeding centres. 1979. School of Maqen County. With the help of the Tibetans The village's success has been and through his studies, he slowly used as an example by the local These actions have made him learned Tibetan and adapted to government to encourage other loved and respected by the the life on the grasslands. Now, he communities, and it has brought Tibetans of the Golog Grasslands. can travel across the area without great economic and social'benefits Now they call him brother, and he an interpreter, and is so well- to the area. returns the compliment, "I'm known by the local people that deeply attached to the lush Golog Xue has also taken part in an they fondly address him as "Lao Grasslands and have a deep investigation and allocation of Xue" or "Jiangnan Tibetan" admiration for the Tibetans who animal husbandry resources in the (Tibetan from south of the hve and work on them." region. To gather information, he Changjiang River). Xue is now vice-chairman of travelled more than 3,600 km. For more than 10 years after his Golog Tibetan Autonomous From the knowledge he gained, he arrival in 1966, Xue worked in a Prefecture's science commission. has written many articles and village called Dongqinggou. By In April this year, the State lectured many times on the theory day and night he struggled to Council honoured his work in and practice of livestock breeding. exterminate rats and insects. His promoting the progress and unity hands and arms were often Xue strongly maintains that of China's nationalities by award• inflamed and blistered from the increasing the application of ing him the title of "model glaring sun, but the success of his scientific technique is an import• worker." •

BEIJING REVIEW, OCTOBER 17-23, 1988 17 North-South Relations at the Crossroads

Increased North-South dialogue and co-operation would promote the development of the world economy. Improving the relationship between the South and the North, which is in everyone's interest, depends on efforts by both sides. by Hua Zhanshi

s contradictions between the nations into total debt of developing countries, whose pro• AEast and the West eased, US$1,100 billion at the end of ducts are worthless. moving into the 1980s, conflicts 1987. The debts are too heavy for Since the beginning of the between the North and the South many of these nations to repay. 1980s, the problem of financing deepened. This has affected the This situation has led to has become more important than international economy, especially unprecedented contradictions be• the problem of trade among the the economic stability and devel• tween the North and the South. North-South conflicts, with the opment of the third world. Compared with the 1950s and shortage of funds being the most The Western developed coun• '60s, the North-South conflicts of prominent difficulty of the tries entered the 1980s when the '80s can be characterized as developing countries. In the '50s experiencing their most serious follows: and '60s, to keep the developing economic crisis since World War countries in the capitalist system, II. They sought to resolve their the developed nations offered problems by shifting their New Changes ofiicial development funds with economic burdens, reducing the long terms for repayment and low prices of primary products and 1. The focus of the North- rates of interest. Since the '70s, raising the prices of finished South conflicts has shifted from however, the developed nations industrial products. This led to a the field of trade to finance. In the have cut down on this kind of aid, worsening of trade terms for the early period after independence, and the developing countries have developing countries. Their export developing nations concentrated had to seek short-term, high- revenue was reduced and their on safeguarding their economic interest-rate loans from the deficits shot up. World Bank sovereignty. The nationalization international financial market, statistics show that between 1980 movement launched in late '50s creating more contradictions in and 1986, the average price of and early '60s is an example of this the area of North-South finance. non-fuel primary products policy. As output grew, however, In the '80s, a debt crisis dropped in real terms by 35 the developing countries became developed among third world percent in US dollars to the lowest increasingly involved in the nations, whose international re• level since World War II, while the international market and the venue and expenditure had grown prices of finished industrial conflicts between the North and too out of line. Part of the reason products going to the developing the South intensified as a result. for the crisis is that the developed countries increased by an average The single problem of economic countries started to shift their of 17.5 percent. As a result, the sovereignty has been replaced by economic difficulties on to the developing countries (including the complex problem of economic developing nations. Moreover, the the oil-exporting countries) have relations, and the scope of the high interest rates of the developed suffered a lot, losing about problem has broadened from the nations not only increase the debt US$110 billion because of the field of production to trade and burden of the developing coun• drop in price for raw materials. distribution. tries but also draw capital out of In addition to this, the practice Although the developing coun• these countries. Third world of trade protectionism by the tries established various groups of countries have been forced to developed nations has led to the raw material producers and watch their economics decline imposition of tariffs and other exporters in the '60s and came up because of a shortage of loans and trade barriers against the develop• with a comprehensive commodity other aid from the developed ing countries. The policy of high programme aimed at improving countries. Fluctuations and im• interest rates launched by coun• trade conditions in the '70s, the balances in the exchange rates of major developed nations add to tries such as the United States also international division of labour the instabiUty of the international helped to plunge the developing remains unfavourable to the

18 BEIJING REVIEW, OCTOBER 17-23, 1988 monetary situation, severely af• industrial forces. As exporters of tries in different regions have fecting economic development in labour-intensive, finished in• increased in the difficult intern• the third world. The financial dustrial products, they are con• ational economic climate of the problem has thus become the cerned about halting the trade '80s. The countries are paying focus of South-North protectionism of developed increasing attention to their contradictions. countries. individual and immediate interests The developed nations have The economically backward and problems. This reaUty has ignored or vetoed developing countries of Africa, most of which weakened the developing coun• nations' demands for the reform are raw material exporters, have a tries in their talks with the North. of the international monetary different set of problems. They are Despite the increase of system, the establishment of a suffering from the slashing of economic conflicts and frictions stable exchange rate system and prices for raw materials while the among the developed countries in an increase in aid and loans to the droughts of the past few years the '80s, their co-operation has third world. The reform of the have threatened the very existence also increased. The Group of 7 international monetary system has of their people. These countries holds conferences of finance stagnated and developing coun• are seeking more aid from the ministers, as well as a yearly tries remain short of funds. The developed countries, a reduction summit. Through bodies such as essence of the North-South of their debts, and increases and the International Monetary Fund, conflict over finances is that the stabilization of prices for raw the World Bank and the General developed countries are trying to materials and primary products. Agreement on Tariffs and Trade, maintain the existing international The Latin American countries, the industrialized countries co• economic system as a means to whose economic development is ordinate their policies on interest continue to exploit and control the relatively higher, began in the '70s and exchange rates, trade protec• third world, while the developing to borrow money for construction tionism and the third world debt nations seek to change the and to boost economic develop• problem. They co-operate not unreasonable economic system ment. But the debt crisis of the only on basic economic policies, and establish a new international early '80s so damaged their but also on their stance and system. economies that a solution to their attitudes towards the developing debt problems has become their countries. uppermost concern. They want to In the '70s, the developed Conflicts of Interests adopt a policy that will allow them countries made concessions to to develop their economies while some third world demands, 2. Contradictions among the repaying their debts. This requires promising to provide official aid developing countries have in• that the developed nations equal to 0.7 percent of their gross creased, weakening their cohe• increase loans, reduce interest national product in each year of sion, while the developed coun• rates and prolong repayment the '80s. They also agreed to tries step up their co-ordination periods. participate in a US$750 million and adopt an increasingly stub• The member states of the Common Fund. When the '80s born stance towards the third Organization of Petroleum Ex• arrived, however, they broke their world. The developing nations porting Countries (OPEC) prof• promises and disregarded the were united from the immediate ited greatly from the high oil prices agreements they had signed with postwar period to the mid-70s. of the '70s. But they began to lose the South. They have put pressure They supported one another and much of their international on developing countries to any differences could be easily market in the '80s, when the economically retrench, develop handled through co-ordination. developed countries sought to the market and private sectors of But as a result of their uneven reduce their reliance on OPEC by their economy, devalue their economic development, differ• exploiting their own oil fields, currencies, cut down on the ences among the nations gradually developing oil substitutes and governmental subsidies and read• grew so large that they eventually practising energy conservation. just their state economies. All of came to occupy different levels of International demand for oil these steps are meant to force the development. Thus, they have dropped and so did oil prices. people of the developing countries different individual interests to OPEC members are preoccupied to tighten their belts to repay their consider in dealing with the with stabilizing oil prices and debts. The results are that the developed nations. Asia's "four increasing their revenue as well as economies of many developing little dragons" — Singapore, expanding their market share. countries deteriorate while prices Hong Kong, Taiwan and South skyrocket and living standards The disagreements among dif• drop. This has led to an Korea — for instance, are rising ferent types of developing coun•

BEIJING REVIEW, OCTOBER 17-23, 1988 19 m ARTICLES intensification of North-South unequal economic position. The pared with the developed nations. contradictions. contradictions between the North This will lead to rising tensions and the South will be with us for a surrounding technological lengthy period. But whether the transfer. Declining Third World Role differences widen or ease will be Third, the conservative trend of decided by the international the developed nations will play an 3. The developing countries, economic environment and the important role in the world which took the initiative in the strength and policies of both sides. situation. Their tough stance battle with the North in the '70s, A fundamental easing of the sharp towards the developing countries have become passive in the '80s. contradictions which appeared in is unlikely to change significantly The most famous offensive the '80s seems unlikely in the near in a short period. against the international future for the following reasons: But all this does not mean that economic order was launched by First, a substantial improve• conflict and confrontation be• OPEC in 1973. It broke up the ment in the world economy cannot tween the North and the South are developed countries' traditional be achieved quickly and the inevitable. Nor does it exclude monopoly over the international economies of the developed some easing of contradicfions on economy, marking a new era in tht nations will continue to grow at a some questions. Despite the developing countries' struggle slow pace. With the dramatic contradictions, the North and the against imperialist and hegemon- development of science and South are interdependent and are istic practices in the international technology, including new forms both part of an integrated world economy. OPEC's success en• of energy and new materials, the economy. As international rel• couraged many third world developed countries will not be ations bring the world closer countries to try to break down the seeking major additional supplies together, it has become possible old international economic order of raw materials, primary pro• for the crisis of the South to touch and establish a new one. ducts and manufactured goods. At off earth-shaking repercussions in In the '80s, however, the the same time these countries are the North. Enhghtened indiv• developing countries began to lose not offering increased financial iduals in the developed countries the advantages they had won in aid to the developing countries. argue that the industrialized the '70s. As the developed Second, the scientific and nations should adopt moderate countries regained their edge, the technological revolution will fur• policies towards the third world North-South gap widened in gross ther widen the economic gap on the basis that the North and the national product, per-capita in• between the North and the South. South are in the same boat and the come, technological development The developed countries will developed countries should take and trade. The third world's dominate new scientific and an attitude of live and let live. proportion of total world exports technological developments and Even countries that have taken a dropped from 28 percent in 1980 will benefit from them the most. tough stance have begun to realize to 19 percent in 1986. For the oil They will also use science and that the economic difficulties of exporters alone, the figure fell technology to further consolidate the third world harm rather than their monopoly over the world benefit their economies. For the from 15 percent in 1980 to 5 economy. Only a few of the newly sake of their own interests these percent in 1986. As the third industrialized nations and regions developed countries are prepared world's role in the world economy are likely to use the latest science to compromise on some concrete and world trade declines further, and technology to promote questions to avoid a North-South its dependence on developed crisis. countries has increased, and its economic development and nar• fight for a new international row the development gap. economic order has reached a low The scientific and technological ebb. revolution represents a challenge Possible Compromises As long as the unreasonable to the third world. But because of international economic order lack of money and technicians, In a word, while the contradic• continues to exist and the most developing countries are tions and struggle between the developed countries continue to missing this valuable opportunity. North and the South will remain exploit and control the developing They are even losing edge in terms sharp for a long time, some countries through their monopoly of natural resources and labour, relaxafion is possible on specific over international production, and increasing their dependence issues. In these circumstances, the trade, money and finance, the on the developed nations, thus adoption of a confrontationist developing countries will continue increasing their economic and attitude will not help either side. their struggle to redress their technological disadvantages com• Instead, the common interests of

20 BEIJING REVIEW, OCTOBER 17-23, 1988 both sides would be served by their economies; and development of the third strengthening the dialogue and co• 2. How to prevent trade world; operation between them. The protectionism by developed coun• 4. How to increase new loans, North and the South share tries, reduce tariff and non-tariff while at the same time reducing responsibihty for seeing that this trade barriers and open up the third world debt burden by occurs. But the developed coun• markets to manufactured goods lowering interest rates and tries' edge in economic and other from the developing countries, deferring payments; how to help fields dictates that the North thus helping them to raise their the developing countries increase should play a leading role in incomes; their capacity to repay their debts resolving North-South 3. How the developed and settle their debt problems on contradictions. countries — particularly Japan the basis of economic The North-South dialogue was and Federal Germany—can development; interrupted in 1977 and remains at reach the goal of providing aid 5. How to lift restrictions on a stalemate. To break the totalling 0.7 percent of their gross technological transfers; how to stalemate and improve North- national product to developing transfer developed countries' South relations, the developed traditional industries and advan• countries must correct their ced technology to the developing mistaken stand and make big countries and help them raise their compromises on some major level of technical competence, questions. Then both sides will be readjust their industrial structure able to sit down as equals and and narrow the technological gap between the North and the South; discuss and settle the issues in an The North-South dialogue atmosphere of mutual accommod• 6. How to stabilize the ation and understanding. In this was interrupted in 1977 and international monetary market, scenario, the developing countries remains at a stalemate. To thus reducing fluctuations in the will adjust their bargaining break the stalemate and exchange rates of the major strategy and adopt a flexible improve North-South Western currencies and curbing position on the measures required the resulting losses in the to reform the existing intern• relations, the developed countries must correct their developing countries; ational economic order. They will 7. How to help the least balance the need for a new mistaken stand and make big developed countries in Africa and international economic order with compromises on some major elsewhere' spur their economies to the need to settle certain urgent questions. Then both sides provide the basic necessities of life questions. While pursuing global for their people and overcome the questions, they will seek to will be able to sit down as equals and discuss and settle "crisis of existence" and the continue the talks on specific "development crisis." issues. They will seek practical the issues in an atmosphere of Clearly, the North-South dialo• solutions to concrete problems mutual accommodation and gue will not be all smooth and and focus their efforts on settling understanding. A realistic cannot settle all of the problems at urgent matters and getting results. once. But both the over-optimistic A realistic approach on both sides approach on both sides will and pessimistic views towards the will leave the room for comprom• leave the room for dialogue are mistaken. It is ise. Through such dialogue and compromise. Through such noteworthy that some Western co-operation, acceptable solutions dialogue and co-operation, economic experts advocate that can be found and the stalemate acceptable solutions can be the establishment of a new can be broken. In the current international economic order not situation, the North and the South found and the stalemate can be mentioned in the dialogue to can jointly explore: be broken. avoid creating bad feelings among 1. How to adopt practicable and the developed countries. This effective measures to raise and suggestion is not helpful either to stabilize the prices of raw third world unity or North-South materials including petroleum and relations. The experts should primary products; how to improve countries. By increasing foreign stand on the side of the developing trade terms for countries that aid and transferring surplus countries and support their efforts produce and export raw materials capital to the developing coun^ to establish a just, mutually and help them expand their tries, the developed countries can beneficial and co-operative world processing industries and diversify promote the economic recovery economic system. •

BEIJING REVIEW, OCTOBER 17-23, 1988 21 •1 ARTICLES

Zhao Zhangguang—Inventor of '101' Hair Tonic

Zhao Zhangguang was born in 1943 to a peasant famiiy. His family's poor income forced him to give up his studies and take up farming when only in the second year of junior middle school. But the "101" hair tonic he developed is now known as the Oriental magic water.

by Zhao Xuejun and Yu Fei

t the Eureka International Fair lost her hair several years before visited the Chinese stall and one of A held in September 1987 in pushed to the front and tried to them drew a cross on the sample Brussels, Belgium, the inventor of make herself understood with the bottle of medicine. Zhao stared at the "101" hair tonic Zhao help of gestures. After a serious the cross, not knowing what had Zhangguang stood confidently in examination, Zhao confidently happened, but his interpreter a Western suit behind the stall for told her, "Please don't worry. I winked at him and said quietly, a row of 13 cm high bottles can make your hair grow again." "Good news. The cross means you containing "101" hair regrowth Seventeen days after applying the are allowed to take part in the liniment. On display were also tonic, new thin hair began to grow competition." over 500 pictures of Chinese from the girl's head. She was so On October 1, 1987, the mayor patients successfully treated with overjoyed when she saw the new of Brussels, on behalf of the King the magic water. growth that she rushed out of her of Belgium, presented Zhao house to send a telegram to Zhao Zhangguang with the golden in China, "Thank you, Mr. Zhao. First-Class Knight Medal at the Oriental Magic Water You have made my hair grow Brussels Palace. again. Thank you for the medicine Newspapers and radio and TV Visitors of all races flooded to you mailed to me." stations from various countries see the pictures but they found it All patients gave the medicine vied to spread this news to the rest difficult to believe that the the thumbs-up. But the evaluation of the world, heralding Zhao medicine could be so effective. committee gave Zhao a start. One Zhangguang as an excellent To clear their doubts, Zhao day, some committee members doctor for baldness treatment and Zhangguang confidently challeng• ed dermatologists from other countries: "The Chinese '101' can be tested against hair tonics prodyced by any other country in the world. The evaluation com• mittee can select the hospital and the patients. The tonics will be distinguished only by mark, not by names or producers. If the patients show no hair growth after using 'lOr for three months, I will refund the cost of the medicine. If any ill effects result from the use of the liquid, I will assume any legal responsibility." Zhao's challenge raised a great stir at the fair. People suffering from baldness flooded to see him and try "101." With a small brush, Zhao carefully applied his tonic to each patient. A 17-year-old Belgian girl who

22 BEIJING REVIEW, OCTOBER 17-23, 1988 1

"101" as a magic hair tonic. Seven months later, Zhao Zhangguang also participated in the 16th international exhibition of new technology and iimo- vations held in Geneva as a .member of the delegation for the Chinese Commission of Sciences. Defeating a dozen contenders, Zhao won the only Oscar Gold Cup for individual inventions. A " 101" craze has hit the world. The medicine has been acclaimed as "oriental magic water." Businessmen, competing to buy product, have forced its price up sharply. In Japan, the price of a bottle of "101" hair tonic has risen from several thousand to ten thousand Japanese yen. Groups of buyers have also rushed to China Jiang Jiazlien from Anhui Province had been completely bald for seven years. at their own expense for the medicine. After treatment with "101" pllatory liniment, she grew a full head of hair.

Difficult Path to Success

Zhao Zhangguang was })om in 1943 to a peasant family in Niyang Village- in Yueqing County, Province. His family's poor income made it necessary for him to give up his studies and take up fanning when only in the second year of junior middle school. In 1968 Zhao suffered from a skin disease and during the following two years he visited doctors in Hangzhou, the capital of the province. While in Hangzhou he learnt enough knowledge of medicine to become a "village doctor." Later he opened a health centre in his village and treated patients with refusing to visit her own parents. and knelt down before him and common skin diseases. A young woman from a pleaded: "I beg you to cure my Many people in his village and neighbouring village lost her hair baldness." surrounding areas suffered from overnight before their wedding These cases and others kept baldness. A young woman teacher day and her fiance refused to nagging at Zhao and he deter• in his village was one such case. marry her. She went to Shanghai mined to find a treatment for Always jeered at by her mischiev• for treatment with no result. Back baldness and bring back happiness ous pupils, her self-esteem was home she took an insecticide. to his patients. seriously injured and she quit her Fortunately, her mother found her During the day, he visited job. She locked herself away at and she was saved. Accompanied herbalists and veteran doctors of home for seven years, even by her mother, she visited Zhao traditional Chinese medicine, and

BEIJING REVIEW, OCTOBER 17-23, 1988 23 collected recipes passed down among local people. In the evening, he classified herbs by the light of a kerosene lamp and studied the properties and func• tions of each one with the help of medical books. A classical book of medicine proclaimed, "Hair takes its nutrients from the blood; hair loss will result from lack of nourish• ment." To cure baldness, then, one first of all needed to nourish the hair. Following this theory, Zhao began to formulate a tincture made with traditional herbs. P His house was stacked with bottles and jars. He made up one kind of medicine after another but each one failed to produce results. One day he read a medical book which claimed, "The loss of hair is caused by a weakness in some part of the body." Enlightened by this, Zhao added other herbs to his prescription to , stimulate the growth of hair pores. He decided to try using a certain local herb which had such a function. He ground the herb into a juice and brushed it onto his own leg to see the results. But the herb caused pain and blisting. He then searched for a herb which would serve the purpose but have no side effects, testing the herbs not only on himself but on his father and daughter to see their effects on people of different ages. Zhao experimented scores of times but once again failed. His work brought many ments showed some good results Anxious and angry, Zhao troubles for Zhao's family. He and he began to use his herbs on returned to Yandang Mountain, spent all his savings and got the villagers. But some patients carrying with him a hoe and a heavily into debt. The debts grew suffered allergic reactions to his basket. He went back over his from 300 yuan to 500 yuan and treatment. He spent day and night difficult path, telling himself, "My then to 5,000 yuan. His family treating them but one company path is not the wrong one. I would complained and worried about the manager who reacted badly to the rather die than not find an debts but Zhao continued with his medicine complained to the local effective hair tonic." experiments regardless. Later he health bureau that Zhao was a To show his determination, he found it difficult to borrow money swindler. Some people in the declared to his villagers that he so he decided to sell one of the bureau thought Zhao, a farmer, would provide free lunch for those three rooms in the house left by his could not succeed in his experi• who came for a second treatment. grandfather for 1,000 yuan. ments and forced him to stop his In the end his hard work paid At one stage, Zhao's experi• research. off. One morning, Zhao was

24 BEIJING REVIEW, OCTOBER 17-23, 1988 awakened by a knock at his door. achievement on the front page. The minister for Civil Affairs His friend Lin Guangnai cried In 1984 Zhao was invited to and the deputy mayor of Beijing joyfully outside, "Zhangguang, serve as honorary president of the met Zhao Zhangguang to thank my hair is growing." Zhao got up Xiangyang Baldness Treatment him for his contribution to the in astonishment and rushed to Hospital in Zhengzhou, Henan treatment of baldness and open the door. When he saw the Province. encouraged him to continue with new hair on Lin's head, Zhao In 1986 the " 101" hair tonic was his research. couldn't hold back his tears. recognized by experts at the The "101" tonic is now Later, more and more patients Henan provincial technical exper• available in 18 countries and came back to show Zhao their new tise conference in Zhengzhou. regions including the United hair growth. The word quickly spread to States, Sweden and Japan. Every Beijing. On two occasions the day the factory in Beijing receives 'lOr Tonic's Springtime Beijing Civil Affairs Bureau sent hundreds of letters from abroad people to invite Zhao to Beijing to ordering the medicine. Zhao's After four years of hard work, treat patients. The Civil Affairs wish to export the "101" to the Zhao successfully produced the Industrial Co. in Beijing collected world market has come true. Zhao "101" hair tonic. Its effective 1 million yuan to set up the Beijing has also formulated a second results have been widely Hair Tonic Factory and Zhao was generation of hair tonics — the recognized. made its director. The company "101-A" and "102" —which will In the summer of 1983, Zhejiang also set up a centre where Zhao soon be available on the market. Workers' Daily featured Zhao's could give consultations.

FACTS & FIGURES (A Decade of Reform IV) Investment in Fixed Assets

by the State Statistical Bureau

etween 1979 and 1987, China principally channelled through the such as the World Bank. Binvested 1,644.1 billion yuan state to enterprises owned by the The ways in which investment in fixed assets. Of this total, whole people. Since 1979, how• can be channelled into enterprises 1,105.2 billion yuan was invested ever, the development of collec• have diversified as enterprises in state-owned enterprises, 340.8 tively owned or individually run began to enjoy more autonomy, billion yuan more than in the enterprises has changed the local financial plans became previous 26 years (1953-78). At the structure of investment in China. partially independent of central same time, China has completed From 1981 to 1987, these government control and financial 303,000 capital construction pro• enterprises invested 505.1 bilUon resources and extrabudgetary jects and 300,000 modernization yuan, with the amount increasing funds used by local departments projects since 1979, increasing at an average of 37.7 percent and enterprises increased at a high fixed assets by 829.5 biOion yuan. annually, 15.3 percent more than rate. Thus, over the past nine These remarkable figures have in state-owned enterprises. years, state-owned enterprises increased China's economic Overall, the proportion of invest• boosted their budgeted investment strength and laid the material ment in the these enterprises had by 46.8 percent by raising funds foundations for further boosting risen from 18.1 percent in 1980 to themselves. As a proportion of its economy. 36.9 percent in 1987. total investment, this had risen to Another 'major source of 47.6 percent in 1987 from 31.9 investment since 1978 has been percent in 1978. Investment System foreign capital. Many overseas By 1987, foreign investment companies have helped to fund accounted for 6.2 percent of the Under the centralized planning joint ventures, and China has total investment in fixed assets, system that existed up until 1978, borrowed extensively from inter• and domestic loans for 18.6 investment in fixed assets was national financial organizations percent.

BEIJING REVIEW, OCTOBER 17-23, 1988 25 ARTICLES

In the field of capital construc• million tons, its chemical fertilizer- achieved remarkable results by tion, the Chinese government has making capacity by 3.41 million diversifying and raising the quality concentrated on investment in tons, its cement-making capacity of its products. energy resources, transportation, by 28.55 tons and its timber felling • Many light industrial enterpr• raw materials and other basic capacity by 4.12 million cubic ises have acquired the capacity to industries, investing 358.8 bilhon metres. develop new products. yuan in the past nine years, 51.2 Among the major construction • Goods which previously could percent of the total investment in projects completed are: the first only have been brought from capital construction. The prin• stage of the Shanghai Baoshan abroad are now made domesti• cipal ways in which the money has Iron and Steel Complex, six large cally, such as various kinds of been used are: chemical fertilizer plants imported plastic bags and other goods made with foreign investment, and three with injection moulds. Energy. Total coal production cement factories capable of capacity has been expanded by Modernization of existing en• producing 1 million tons a year. terprises has also proved parti• 145.6 million tons since 1979, 25 Such projects have played a vital percent of the 1978 total. cularly beneficial in expanding role in increasing China's produc• production of household electrical Electricity generation has been tive capacity and laying the appHances. From 1983-85, the expanded by 48.13 million kw, or foundations for future expansion. machine-building industry carried 84.3 percent of the 1978 total, out 700 projects to improve bringing the total generation Enterprises Modernization machinery design, which led up to capacity to more than 100 million the manufacture of several kw. As well as expanding its From 1979-87 enterprises and thousand new products. hydroelectric and thermal power institutions invested 404.1 billion stations, China has speeded up the Since 1979, China has spent yuan in updating and modernizing US$12 billion on importing construction of its first group of their equipment and other fixed nuclear power stations, which advanced foreign technology and assets — 2.8 times as much as in equipment. During 1983-85 alone, include one at Qinshan in the 1953-78 period. The average Zhejiang Province and one at 3,900 pieces of machines, equip• annual increase in investment was ment and production lines were Dayawan in Guangdong Pro• 19.3 percent, far exceeding the 8.7 vince. Oil production has risen bought for light industrial com• percent average in capital panies, machine-building factories 95.76 million tons, or 98 percent of construction. the 1978 total. and textile enterprises. Apart from In 1987, state-owned enterprises upgrading China's already exist• Communications and transport• spent 41.6 percent of their total ing products in these fields, this ation. Since 1979, some 4,867 km investment funds on transform• technology has enabled China to have been added to China's ation and modernization of their cut down its reliance on imports of railway network, and many means of production, well up on certain goods and to develop existing routes have been the 25.1 percent of 1978. various entirely new products. upgraded. Since 1981, some 112.3 billion Imported technology has To transport more coal out of yuan has been invested in enabled many enterprises to rid Province, China's major modernizing light industrial, tex• themselves of outmoded ideas as coal-producing base, the railways tile, machinery and electronics well as outdated equipment. from Beijing to Qinhuangdao, enterprises — 39.1 percent of all Baotou and Taiyuan, and from China's investment in technical Taiyuan to Jiaozuo have been upgrading. The amount also electrified, and two new railways surpasses the funds these indus• Urban Public Facilities from Xinxiang to Heze and from tries invested in capital construc• Yanzhou to Shijiusuo have been tion. Indeed, the production of Since 1979, the Chinese govern• built with foreign capital. cigarettes, sweets, processed meat, ment has invested 2.3 times more A total of 25,250 km of new cotton spindles, looms, and capital in housing and urban highways have been built, and printed cloth has risen more as a public facilities than it did in the coastal ports have increased their result of modernization of old 1953-78 period. Last year, 34.5 cargo handling capacity by 178.46 plants than through construction percent of ail investment was spent million tons. of new ones. on such projects compared with Raw Materials. Since 1979, Specific instances of technical 20.9 percent in 1978. China's iron-smelting capacity has upgrading boosting production As a result, 1.3 bilhon square increased by 6.11 miHion tons, its include: metres of housing has been built in steel-making capacity by 7.59 • The textile industry has the last nine years, according to a

26 BEIJING REVIEW, OCTOBER 17-23, 1988 sample survey conducted in cities and 86.6 percent had tap water. In years, making a total 29.6 percent across China, living space per urban areas, 3,425 km of roads greater than in 1978. person doubled from 4.2 square have been built or improved and a Although China has reaped metres in 1978 to 8.4 square metres number of modern overpasses much benefit from its capital in 1987. The proportion of constructed. Supplemented with investment, it is worth noting the households that have more family 21,000 new public transport buses, problems that have emerged. members but less living spaces urban traffic conditions have First, excessive investment in dropped from 38.6 percent to 16 improved. capital construction projects has percent. In the countryside, 6 Since 1979, China has invested placed too great a strain on state billion square metres of new 72.3 bilhon yuan in education, financial and material resources. housing has been built, increasing science, culture and public health. Second, the proportion of invest• the living space per rural Schools have increased their ment in primary industry and inhabitant from 8.1 square metres enrolment capacity by 24.78 infrastructure remains too low, in 1978 to 16 square metres in million students. China's educ• while that in processing is a Httle 1987. ation estabhshments have 102.41 too high, and investment in Since 1979, China has invested miUion square metres of new floor agriculture has decreased. Finally, 47.1 billion yuan in construction space, and its scientific research much investment capital has been of public utilities. 4.6 percent of institutes have increased in area by spent inefficiently: construction the total investment in 1987 14.96 million square metres. periods are often too long, (compared with 3.1 percent in In the public health fields, projects frequently run over budget, and many funds are 1978). Last year, 32.6 percent of China's hospitals have received seriously wasted. • city households had gas stores. 550,000 new beds in the past nine

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BEIJING REVIEW, OCTOBER 17-23, 1988 27 m FROM THE CHINESE PRESS

or were not in Beijing at that time also expressed their support for cremation. wrote a Mao's Plan Goes 'Up special letter to Yang Shangkun, In Smoke' then the head of the General Office of the Central Committee of the Chinese Communist Party. The full text is as follows: or use of coffins. It may save a "KEJI RIBAO" lot of burial costs and does not Comrade Shangkun: (Science and Technology Daily) affect people's memories of the At a conference of the dead. Although few people, in Central Committee held a ancient and present times, use couple of years ago in Beijing, n April 27, 1956, the Central this method, we should recogn• many comrades put their Committee of the Communist O ize that it is the best way to signatures to a proposal Party of China was holding its arrange the dead. In some volunteering to practise crem• work conference in countries cremation is now in ation after death. I did not sign 's Huairentang common use. Therefore, we it because I did not attend the (Huairen Hall), Beijing. propose that cremation be meeting. But I am all for it. A secretary, during recess, practised on a voluntary basis, Please accept this letter as my delivered a thick booklet into first among a small number of added signature. Chairman 's hand. people, particularly leading At the same time, I approve Chairman Mao, smiling, opened it government officials. of postmortem examinations, and spoke in a accent; which bring no harm to the "The calligraphy is pretty good." People in state organs in dead, but are good for the Then he read the contents, which favour of this proposal please development of medical had been drawn according to his autograph this document. science. So, I'll be wilHng to proposal. The full text is as Those signing will agree to the consent to an autopsy if my follows: practice of cremation after doctor thinks some of my death. Signatories still living organs should be dissected to will guarantee cremation for verify pathogeny. Proposal Concerning those who die before them. Cremation After reading the proposal, Best wishes. Mao Zedong repeatedly said, Yours sincerely, "Good, good." Because the Chen Yun Natural rules humanity from proposal had solicited opinions October 2, 1959 birth until death. After death, beforehand from everyone and people should be properly was signed on a voluntary basis, arranged and mourned. This is Mao Zedong, without passing the Chairman Mao's proposal did natural and normal in human proposal around, put brush to not start cremation in China. But relationships. In Chinese his• paper, "Mao Zedong, April 27, from then on, it was very difficult tory and among all nation• 1956." to find high-ranking officials alities in the world, there are Mao Zedong put the brush practising inhumation in Beijing's various ways to make arrange• down and said with smiles, "Who Babaoshan Revolutionary Cemet• ments for the deceased. Among will be the next?" ,er y after they died. According to them, the major methods are standing in Mao's right, took the their wishes, their corpses were inhumation and cremation. brush and put his signature on the cremated and their remains placed Burial, in particular, continues paper after Mao. He was followed in cinerary caskets or scattered on to be the most widely used. by , , Liu China's rivers, seas, lakes, lands Inhumation occupies land Shaoqi, , , and mountains. and wastes wood. In the old , Deng Xiaoping, However, Chairman Mao Ze• society, many families went Zhang Ziyi, , Yang dong, initiator and first signatory bankrupt after burials because Shangkun, Ke Qingshi, , of cremation, was an exception. the grand funerals were regu• and others. Contrary to his wish, his body was lated by an ethical code of the Of all members attending the moved from Zhongnanhai to the former feudal ruhng classes. In conference, 151 signed the paper. Memorial Hall. contrast, cremation does not Later, some leading officials who require the occupation of land did not participate in the meeting (July 18, 1988)

28 BEIJING REVIEW, OCTOBER 17-23, 1988 as being a sign of its curafive effect." Side-Effects Normal for Baldness Cure "To date, more than 30 imitations of 101 pilatory liniment have been found in China and "It is normal for the scalp to abroad. I hope buyers will make a "RENMIN RIBAO" become red or black after using clear distinction between the true (People's Daily, Overseas Edition) 101. This indicates an improve• and false," Zhao completed. ment in blood circulation resulting from capillary expansion, as well (September 24. 1988)

hao Zhangguang, inventor of ZZhangguang Brand 101 Pila- tory Liniment, gave an interview to a reporter not long ago and The Growing Chinese Population answered his questions. Zhao said, "Since 101 pilatory liniment was put on market, the "ZHONGGUO JIHUA SHENGYU dropped from 200 per thousand in product has received international BAG" 1949 to 34.86 per thousand in recognition. At the 36th Brussels (Chinese Family Planning) 1981. Eureka World Fair for Invention The average life-span increased in 1987, I won the first grade from 35 to 68.9 years. Knight Medal, and at the !6th The prospects for family Geneva International Invention hinese population growtli. planning were not looking bright and New Technology Exhibition C The Chinese population total• as the 360 million young people in April 1988, I won the Oscar led 13 million during the primitive born in the second flood of births Gold Cup and Product Gold society stage, about 20 million in from 1962 to 1975 began to marry Medal. 221 BC, 60 million in 2 AD, and and bear children. The population "I have been engaging in the 100 million in 1730. growth rate and natural growth treatment of trichomadesis for The country's population in• rate once more beg i n to pick up more than ten years and have dealt creased from 601 milHon in the as a result. with more than a hundred first national census in 1953, to Burdens. At present, popul• thousand patients. I am confident 723 million in the second national ation growth stands at 14 million of my 101 pilatory liniment. In census in 1964, and from 1.003 per year. Each person in China on regard to a few Japanese patients billion in the 1982 national census average consumes 400 kilo• who found macula in their heads to 1.07 billion in 1987. Now the grammes of grain, making it after using the liniment, there is number of Chinese accounts for 22 necessary for an extra 5.6 billion nothing strange about it. Among percent of the world's total kilogrammes of grain per year to my former patients, the number population, or one-third of the be found. This places a heavy with an allergic reaction only total for developing countries. burden on China's agriculture. accounted for 5 per thousand. Acliievements and family Each year more than 20 milHon "Zhangguang 101 is a new planning prospects. China's babies are born in China. Later, liniment extracted from various family planning has achieved they will need to be educated in rare Chinese medicinal herbs for remarkable success. From 1970 to schools or universities. If each one treating baldness. It can invigorate 1985, the birthrate dropped from requires 100 to 180 yuan for circulation of the blood, freeing 33.43 per thousand to 17.8 per education, the government must the main and collateral channels thousand; the natural population increase its spending on education of the body and making hair grow growth rate fell from 25.83 per by 3 to 3.8 billion yuan per year. again. It stimulates the skin in a thousand to 21.23 per thousand. In the coming few decades, persistent congestive manner, The death rate dropped from 25 about 15 milhon young people will bringing on the new growth. If an per thousand in 1949 to the start to seek work each year. It will allergic reaction is found during present 7 per thousand. be a hard task for the government treatment, it will disappear only The average number of children to provide enough job opportun• after medication has stopped for born to each woman fell from 5.81 ities for them. three to five days or after taking in the 1950s to two in 1985. antidote, Zhao said. The infant mortality rate (June 27, 1988)

BEIJING REVIEW, OCTOBER 17-23, 1988 29 BUSINESS/TRADE

Balance of Payments in 1987 Unit; US$ million China's Balance of Payments in 1987 Project Balance Debit Credit Total 4,852 54,850 59,702

n 1987, China's balance of A. Current Account 300 40,236 40,536 I international payments moved into the black after two years of 1. Foreign Trade -1,661 36.395 34,734 deficit. Total international income reached US$59.7 billion, and Exports 34,734 34,734 expenditure amounted to US$54.85 billion, generating a Imports -36,395 36,395 surplus of US$4.85 billion. I. Current Account 2. Non-trade Contracts 1,737 3,676 5,413 At the end of 1987, China had a Freight Transport -172 favourable balance of US$300 1,328 1,156 million on its current account. Transport Charges -282 1,186 904 1. Foreign Trade. In 1987, China's exports totalled US$34.73 Insurance 110 142 252 biOion, an increase of 34.9 percent on 1986. Imports rose to US$36.4 Port Supply and Laboui- Service -166 455 289 billion, just 4.3 percent up on 1986. The US$1.66 billion deficit Tourist Pa'yments 1,458 387 1,845 in foreign trade was US$7.48 billion down on 1986. World Passenger Freight (152) (152) The principal reasons for the Investment Payments -215 1,191 976 sharp rise in China's exports were: a) The depreciation of the US Profit 8 2 10 dollar combined with the appreci• ation of the Japanese yen, Deutsch Interest -280 457 177 mark and South Korean won has made Chinese goods more com• iiank Payments 57 732 789 petitive on the world's markets. b) The rise in oil prices increased Other Non-trade Contracts 832 315 1,147 the value of China's oil exports b\ . 2 14 12 US$1.08 billion. Post Payments c) Chinese government depart• Government Payments 54 150 204 ments vigorously implemented various export-oriented policies Labour Service Payments 51 51 which aroused the enthusiasm of many sectors of the economy. Other Payments 729 151 880 2. Non-trade Income. In 1987, 3. Voluntary Conveyance 224 165 389 non-trade income totalled US$5.41 billion, a rise of 9.8 Contracts with World Organizations 24 34 58 percent on 1986. Tourism revenue rose by US$320 million and Free Aid and Donations -49 120 71 foreign trade related transport• ation rose by US$200 million. Overseas Remittances 162 3 166 Non-trade expenditure rose 15 percent on 1986 to US$3.68 Residents" Other Payments 86 8 94 billion. Expenditure on transport 13,164 19,166 increased by US$340 million, and B. Capital Contracts 6,002 interest payments (including ser• 1. Long-term Capital Contracts 5,790 3,950 9,740 vice charges) increased by US$280 milHon. Direct Investment 1,669 645 2,314 China's surplus on non-trade

30 BEIJING REVIEW, OCTOBER 17-23, 198i Direct Investment From Other income was thus US$1.74 billion Countries, Hong Kong and Macao 2,314 2,314 in 1987. 3. Voluntary Conveyance. Direct Investment in Other China received US$390 million in Countries, Hong Kong and single-sided transfer payments in Macao by China -645 645 1987, and transferred US$170 milHon to other countries, gen• 2. Security Investment 1,051 140 1,191 erating a favourable balance of US$220 million. Security Investment in China by Other Countries, II. Capital Account Hong Kong and Macao 1,191 1,191 In 1987, capital inflow totalled • US$19.17 billion, a drop of Security Investment in US$1.57 billion on 1986. Capital Other Countries, Hong outflow totalled US$13.16 bilhon, Kong and Macao -140 140 down US$1.63 billion on 1986. China's capital account thus had a Loans From World Organizations 620 90 710 net inflow of US$6 billion, US$60 Foreign Government Loans -411 1,187 776 million more than in 1986. With 96.5 percent of the capital Bank Loans 1,665 300 1,965 inflow in long-term capital and only 3.5 percent in short-term Local and Departmental Loans 949 634 1,583 capital, China's debts have become better structured. Deferred Payments -47 470 423 III. Reserve Assets Deferred Collections -103 136 33 China's reserve assets (includ• ing foreign exchange and Special Processing, Assembling, Drawing Rights) increased by Compensatory Trade and US$4.85 billion in 1987. Capital Equipment Payments 229 85 314 inflow is mainly responsible for the growth of foreign exchange Leasing 17 3 20 reserves. By the end of 1987, China's foreign exchange reserves Foreign Loans -219 239 20 totalled US$15.23 billion, of which the state had US$2.92 Others 370 21 391 billion and the Bank of China had 2. Short-Term Capital Contracts 212 9,214 9,426 US$12.31 bilhon. •

Bank Loans 219 219

Local and Departmental Loans -112 571 459 City Process Of Expansion Deferred Payments - 106 638 532

Deferred Collections 34 8.005 8.039 eijing foreign trade enterprises B have signed 134 contracts Others 177 177 for foreign material processing and foreign spare parts assembling D. Errors and Omissions -1,450 1,450 for exporting in the first eight months this year, with the total E. Change in Reserve -4.852 4,852 business volume reaching $16.7 million, 8.3 times more than that Gold Reserve of the same period last year. Foreign Exchange Reserve -4,722 4,722 Of the total business volume, Special Drawing Rights -71 71 that of the Beijing Metals and Minerals Import and Export Funds Invested in Money Markets -59 59 Corporation accounts for 49 percent.

BEIJING REVIEW, OCTOBER 17-23, 1988 31 m CULTURE/SCIENCE wmiii^mKmmmmmmmmsmmmmm Reportage — China's New Journalism

uring the years immediately momentum he used to unfold his ethics. Focusing on the divorce D following the "cultural revo• story captured popular feeling. peak which followed the introduc• lution," fiction blossomed in Since then, reportage has gone tion of a new Marriage Law in China. Writers such as Zhang from strength to strength. The 1981, Su argues that many Xianliang used the novel to circulation of the magazine problems arise in Chinese mar• explore and analyse the traumas Reportage jumped from no more riages because their underiying of the 10 preceding years of social than 40,000 in 1985 to 100,000 in ethics remains rooted in feudal chaos. Readers eager to gain a 1986, and 150,000 in 1987. And beliefs. After analysing the various wider perspective on their exper• when People's Literature, one of social tragedies this causes, he iences eagerly consumed these China's foremost literary period• concludes with a fierce affirmation works. ical, included a reportage piece on of the right to allow emotion to But slowly fiction went into teachers, its sales leapt to an all- determine choice of partner. decline. Authors went off in time high of more than 200,000. Jia Lusheng is another eminent pursuit of a fusion of Western and But reportage is not without reportage writer. But instead of Chinese literature. Often the controversy. After writing several creating broad social canvases Hke Western influences predominated highly acclaimed articles in 1986, Su Xiaokang, he concentrates on and their writing became removed Su Xiaokang wrote most of the depicting people around the from the interests of the common script for a television scries titled fringes of contemporary China. reader. The River Died Young. This took Some of his titles are self- In its place, however, emerged the Huanghe (Yellow) River as an explanatory: A Group of Wander• "reportage" — China's answer to embodiment of the Chinese nation ing Beggars, A Large Prison in the New Journalism of American to trace the history of ancient Western China. Other fragments writers such as Tom Wolfe, China. Finally it announced, "Our of society he has dissected with his Hunter S. Thomson and Michael great and proud civiHzation deftly wielded scalpel include Herr. Translated literally the centred on the Yellow River died unofficial booksellers in The Chinese term means "literary young many years ago." Second Channel, the extravagant reporting," and like its American The series caused an immediate funerals of Wenzhou City in south counterpart it is distinguished by sensation, arousing a whole series China in Eternal Waste Tombs, the use of fictional techniques. of protracted and heated debates and the everyday Hfe of mortuaries As China has opened to the on the current relevance of in The Nether World and This world and undertaken its massive China's traditional culture and World. reform programme, reportage has ethics that are still under way. Jia's other pieces have taken a found plenty of issues to reflect In general, Su's work has close look at the kinds of problems upon. But two themes have concentrated on exploring two thrown up by • developments in predominated. One considering paths. A strong critic of feudalism Chinese society. In Strange Circle, the various successes and short• and bureaucracy, he is an for example, he puts the case for comings of China's reforms, and enthusiastic supporter of a fully relying on the tried and tested the other dissecting numerous developed legal system for which traditional modes of production in social issues. he has argued in pieces such as present-day China rather than 1986 was the year when Great Inspiration and Free blindly pursuing the acquisition of reportage really took off with the Memorandum. high-technology simply because it publication of a long piece on the At the same time he likes to is "modern." Tangshan earthquake of 1976 draw on the history of culture and Su Xiaokang and Jia Lusheng which killed 240,000 people. The philosophy to consider con• differ in more than subject matter. article caused a sensation by temporary society and its pro• Su tends towards the philosoph• exposing hitherto unknown facts blems. Apart from his television ical, giving his work an all- to the Chinese public about an series, his most representative embracing, universal tone — event that had happened 10 years piece in this area is The Great maybe his subject is best summed before. Changes of the Male and the up as the nation. Jia, on the other But it was not just the content Female. This is one of the many hand, deals more with the that stunned people: the assured articles he has written in the last individual and the specific. He style of the author and the great three years on marriage and its once remarked that he could relate

32 BEIJING REVIEW, OCTOBER 17-23, 1988 an evil deed with great en• literary socialization and sociali• thusiasm. zed literature. Ciiariton Heston He is also reluctant t-o spell As China's reform programme Directs in Beijing things out too clearly, claiming continues to unfold, it is unHkely that the reader should form his or that reportage journalists will be her own opinion on where the faced with a shortage of subjects. t the invitation of the Ministry problems lie. It has been For the next few years, plenty of A of Culture, American stage suggested, however, that this challenges will be thrown up and film star Charlton Heston approach combined with his between the old and the new. In arrived in Beijing on September 15 mastery of Chinese style and my opinion, however, if reportage to direct rehearsals for the Beijing tendency to throw one idea after is to continue to prosper its writers People's Art Theatre's production another in rapid succession have will have to concentrate on of the American drama Mutiny. lessened the impact of his overcoming theij: strong subjective Speaking at the Great Wall discussions of serious social consciousness and the tendency to Sheraton Hotel, Heston said he problems. select a grandiose title and then hoped his visit would play an One of reportage's up-and- neglect the content of their piece. important role in bridging Chinese coming stars is Mai Tianshu. His by Wei Liming and Western culture. forte is to pull wide-ranging social The Chinese actor Zhu Xu, who analysis from specific instances. In China Joins Worid played the elderly emperor Pu Yi The Land and the Local Despot, for in the television series The Last example, he relates the history of a Data Centre Emperor, said that Heston's Party secretary who ruled a trip to China to work on Mutiny mountain village in south China n September 5, China joined should have far-reaching sig• for 40 years. But rather than O one of the world's major nificance on the arts in general and concentrating on the foibles of his computer networks — the World might be a turning point in central character, he examines the Data Centre (WDC). Its president contemporary Chinese drama. emergence of local power struc• Stanley Ruttenberg called the tures and the roots of move a major step towards Heston's trip to China is bureaucracy. introducing a computerized com• sponsored by Bette Bao Lord, wife Migration in the West unfolds in munications network. of the American Ambassador to a similar way. It takes a long- The World Data Centre is a China, and James A. DooUttle, running economic problem to data organization under the who plan to establish a non- offer an example of how, a International Council of Scientific profitable foundation aimed at burgeoning economy can en• Unions (ICSU). The committee promoting further exchanges and courage people to forget their on Data for Science and co-operation between American responsibilities to both society and Technology (CODATA) also and Chinese drama circles. their work. Mai writes, "When under ICSU, mainly handles Heston, who is on his first visit society brings its advantages into science and standardization data. to China, won an Oscar for his play, it also unknowingly intro• China joined this organization in major role in the film Ben Hur. H€ duces 'a form of decadent 1984. has been the president of the US dependence where the acquisition The World Data Centre, Screen Actors' Guild seven times of material possessions is accom• established in 1957, is a major running. panied by spiritual back• international agency for the wardness." storage, exchange and processing The drama Mutiny will be staged on October 18. Its writer The elopement of young rural of scientific data related to Herman Wouk and various other couples is his backdrop in A River astronomy, geosciences, enviro- screen celebrities are due to Flowing With Love for a discussion mental science, and biology. It has attend. The British television of traditional marriage ethics. already set up centres in the company, Thames TV, is making a Like Su Xiaokang, Mai calls for United States, the Soviet Union, one-hour documentary about freedom of choice, "People should Western Europe and Japan. The Heston's China trip to be shown in live in accordance with the way China World Data Centre has Europe and the United States. In they love and are loved." nine branches. addition, a Charlton Heston film In answer to criticism that his Sun HongHe, vice-president of festival will be held by the writing pays undue attention to the Chinese Academy of Sciences, American Embassy and the rational thought at the expense of said that China's entry into the Chinese Film Artists' Association style, Mai answers that he WDC is significant. in late October. • concentrates on the pursuit of by Wei Liming

BEIJING REVIEW, OCTOBER 17-23, 1988 33 •1 TOURISM JV Hotels Face Cut-Throat Competition

hina now has more than 1,380 number of state-funded hotels just mismanagement. The Kunlun Cliotels for foreign tourists, of meet their needs. This is the main Hotel in Beijing and the Crystal which 160 are Chinese-foreign reason why joint-venture hotels Palace Hotel in Tianjin, for joint ventures. Their prospects are face a lowering rate of room example, stopped contracting not so bright due to the cut-throat occupancy. foreign managers and replaced competition in the hotel trade. Many joint-venture hotels have them with Chinese personnel According to official statistics, their own system for booking because of these problems. the average rate of renting out rooms all over the world. But this After studying and gaining rooms in 15 main joint-venture system can provide only about 30 work experience in the past few hotels was 68.5 percent in 1987 — to 40 percent occupancy of guest years, China now has many a 7 percent decrease compared to rooms. For example, a high-class excellent middle- and high-class that of 1986. The average profit hotel run by Sheraton in Beijing managers. Among them are the rate was 19.8 percent. That is 7.3 only rented out about 15 percent managers of the White Swan percent less than in 1986. of its rooms during the slack Hotel in Guangzhou, JinUng In contrast, the average rate of season in 1987. Hotel in Nanjing and Beijing renting out rooms in 102 main Second, joint-venture hotels are Hotel in the capital. They are state-funded hotels was 83 per• usually administered by foreign efficient enough to shoulder the cent, and the average profit rate hotel groups and are expected to burden of full responsibihties in was 37.8 percent. Those figures pay high managerial fees each running modern hotels, and some represent only a 5.6 percent and year. The Beijing Great Wall- of them have already been 1.6 percent, decrease, respectively Sheraton Hotel, for instance, has employed by joint-venture enter• from those of 1986. to pay over US$3.5 milhon prises. The Yanxiang Hotel in Experts consider this unfa• managerial charges to foreign Beijing has sent staff to manage vourable trend of development managers in addition to its local the joint-venture Meilidu (Beauty difficult for joint-venture hotels to managerial fees. This sum is Capital) Hotel in Wuxi, and the reverse because the supply of higher than the total wages of Jinjiang Hotel Group in Shanghai hotels exceeds the demand. Chinese workers and staff in the has sent staff to manage the Compared with state-funded hotel. Other joint-venture hotels Kunlun Hotel in Beijing. hotels, the joint-venture hotels in administered by foreigners When China first opened its the long run have two throughout the country have to do door to the outside world, many disadvantages: the same. investors believed that they could First, most of the building costs In the past few years, due to the obtain profits by running hotels in of joint-venture hotels are usually lack of middle- and high-class China. They were especially higher than those of state-funded administerial personnel in hotels encouraged by the success of two hotels. The average building cost in China, it was necessary to foreign joint-venture hotels. The for each guest room is US$70,000- employ foreigners to run the profitable Beijing Jianguo Hotel 110,000, compared with only hotels. Furthermore, hotels were opened in 1982 and the Beijing US$20,000-40,000 for state- few at that time so the payment of Jinglun (Beijing-Toronto) Hotel funded rooms. Because the high wages was compensated by in 1984. Consequently, many building price is high, the rent is expensive rents. Now when there foreign real estate investors naturally high. According to are more hotels than needed, it is a flocked into the Chinese market. statistics, the average daily rent for heavy burden for joint-venture Today, 160 joint-venture hotels each standard room in joint- shareholders to spend such sums have started business and another venture hotels was 231 yuan in for foreign managers while 160 are under construction. Forty- 1987, while that of state-funded making average profits lower than two are to be in Beijing. These hotels was 96 yuan. This made state-owned accommodations. hotels will be open for business joint-venture hotels less Some businesses are not well within one or two years. If competitive. managed either, according to investors do not take building Because most of the visitors information from hotel personnel. costs and administrative fees into who come to China belong to the Different administrative stan• consideration, they will find middle and lower strata, they dards and a lack of familiarity themselves in a predicament and prefer to stay in middle- and with Chinese social culture and its faced with fierce competition. economy-grade hotels. A large background have caused some by Han Guojian 34 BEIJING REVIEW, OCTOBER 17-23, 1988 Owl.

Papercuts by Su Lanhua

Su Lanhua, a rural woman, was born in 1 905 in Xinjiang County, Shanxi Province. As a folk artist, she practises embroidery, sculpturing busts and folk painting. Her papercuts combine simplicity with a bold design, producing a highly decorative effect.

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China National Light industrial Products Import I Export Corporation, Tianjin Branch Address: 164iLiaoning Road, Tianjin, C^ina Cable: INDUSTRY TIANJIN TRIANGLE mm Telex: 23142. TJLIP CN 1.