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China's First Fund in Overseas Stock Market ,1" • ,..- ; "'-~ I f I. I e ricial US investment i WINDOWin China -1~32 Hongkong's English language weekly newsmagazine offers you: First hand information on economic, political and social developments affecting Hongkong In-depth analyses of Hongkong's relations with the mainland Yes, I will subscribe at the following rate: For Hongkong subscribers US/Euro/Australia Asia I~1 1 year (52 issues) = HK$540 [~1 1 year = US$147 ~1 1 year = US$128 [~ 1/2 year (26 issues) = HK$283 [~1 1/2 year = US$76 [~ 1/2 year = US$66 Overseas subscribers (including airp0st) Name: ............................................................................................ L ............... Company: .................................................................................................... Address: ..................................................................................................... .................................Tel No (Off.) ....................................................................(Fax) [~1 Payment Enclosed I~l Bill Me Later ~1 Charge my Amex Card - No- ................................. Exp!ry D at ~ - ....................................... Call (852) 896 3041 or fax this form to (852) 889 3144 / G.P.O. Box 312 Hongkong HIGHLIGHTS OF THE WEEK VOL. 36, NO. 50 DEC. 13-19, 1993 ! 994 Important for Economic Reform CONTENTS n In 1994, China's economic reform will focus on accelerating the process of opening to the outside world, strengthening and EVENTS/TRENDS 4-6 improving macro-control, and maintain a sustained and heal- 1994 Critical for Economic thy growth in the national economy (p. 4). Reform Li's South Asian Tour Enhances Friendship HK Talks: Failure But Not the A Dynamic Bohai Rim on the Horizon End China Set to Unify Exchange Rate Quick Steps Urged to Fight AIDS [] The Rim of the Bohai Bay in north China is expected to become one of China's fastest-growing areas in the 1990s. INTERNATIONAL Construction of infrastructure facilities is being accelerated Nigeria Under Military Rule ]'or the area's economic boom (p. 10). Again 7 OPEC Tries to Prevent the Decline of Oil Prices 8 Political and Economic Situation Lucrative Investment Opportunities in Eastern Europe 8 CHINA [] Zhenjiang in Jiangsu Province, the ancient capital of the A Dynamic Bohai Rim Looms on State of Wu during the Three Kingdoms Period (220-280), has the Horizon 10 attracted an ever-increasing number of foreign business people Zhenjiang Special (I): A City since it was designated an open coastal city by the State Full of Investment Council in 1988. Over 400 foreign-funded enterprises were Opportunities 15 approved in the first nine months of this year, raising the total Zhenjiang Economic and to more than 900, involving foreigners from 29 countries and Technological DevelopmenV regions (p. 15). Zone 18 Zhenjiang Special (II): A Renowned Three Kingdom City 18 New Trends In Use of Foreign Funds Mao's Family Members Brought Out of the Shadow 20 SOCIETY/PEOPLE 23-24 [] An ever-increasing amount of foreign investment has TOURISM 25 poured into large-scale high-tech and infrastructure projects in BUSINESS/TRADE 26-28 inland China, resulting in expanded scale and gradual diversi- CULTURE/SCIENCE 29-31 fication of the investment (p. 26). COVER-. Qinhuangdao coal dock. Sketch map of Bohai rim cities (insert). Photos by Xin Hua General Editorial Office Published every Monday by BEiJING REVIEW [ Subscription rates (1 year): I Tel: 8326628 24 Baiwanzhuang Road, Beijing 100037 TLX: 222374 FLPDA CN Australia ............................... ...AUD48.O0 The People's Republic of China New Zealand ........................NZD66.00 / FAX: 8326628 Distributed by China Ifiternational Book English Dept. Tel: 8326011 England ...................................GBP19.50 Trading Corporation (GUOJI SHUDIAN) USA ...........................................USD35.80 / ~ I P.O. BOX 399 Beijing, China Canada ....................................CAD42.80 / EVENTS/TRENDS jects to be started in the future": 1994 Critical for --Applications for bank loans should be filed only after a cer- tain proportion of the capital in- vestment is ensured for a new Economic Reform project; --Loans to cover the working remier Li Peng said econo- exchange rate will be abolished, capital must not be used as capi- p mic reform in 1994 will fo- in favor of a fluctuating market- tal investment, and banks must cus on accelerating the pro- oriented currency-rate system, Li improve their supervision over cess of opening to the outside said. this issue; world, strengthening and improv- Beginning next year, the gov- --New projects must have suf- ing macro-control, and maintain- ernment will also restructure the ficient working capital and con- ing a fast, sustained and healthy financial and tax systems. State struction must not start before growth in the national economy. coffers will be insured to guar- such funds are ensured. Li spoke to the full panel of the antee macro control, the premier State Council and provincial and said. big-city leaders at the annual na- Li emphasized the importance tional conference on economic of deciding investment scale and Li's South Asian Tour work, which was held on Decem- scope next year. Money should go Enhances Friendship ber 1 in Beijing. to the key state and provincial "The year 1994 is important for projects, especially the develop- hina attaches great import- China's economy to maintain its ment of resources in the central ance to the friendly rela- current momentum, as well as a and western regions, education c tions and cooperation with critical year in establishing a so- and scientific research projects, South Asian countries. China cialist market economy in the premier said. hopes that these countries can China," Li told the conference. He said the present investment solve their problems through con- The government should adhere scale is rather big and all locali- sultation and dialogues so that to the principles laid down by the ties should carefully plan their the peace and stability in the re- third plenum of the 14th Party own key projects for next year. gion can be maintained and a fa- Central Committee, which was Investment in urban residential vorable environment created to concluded last month in Beijing, housing will be increased, he ad- develop their economies. he said. ded. The message was conveyed by Next year, the government will Li called enterprise reform "the Li Ruihuan, chairman of the put into practice some key mea- focus" of China's overall reform 8th National Committee of the sures to improve the country's scheme and the "most difficult Chinese People's Political Con- macro-control system, Li said. issue" in its implementation. He sultative Conference (CPPCC), First, the People's Bank of said the government will try to when meeting with Nepalese China will be strengthened into a restructure state-owned enterpris- King Birendra Bir Bikram Shah full-fledged "true central bank," es into modern, market-oriented Dev on November 26. Li arrived which will have the capacity to businesses. in Nepal on November 25 for a decide and implement China's Next year, the government will four-day official visit. monetary policies, to fine-tune deepen reform of the pricing sys- During their talks, Li expressed cash supply and demand, and to tem "in an active and stable man- the hope that the Nepalese gov- stabilize the currency. ner," Li said. The people's living ernment will continue to play an Second, the government will es- standards will not be lowered by active role in promoting peace, tablish three banks which issue any reform measures, he went on. stability and prosperity in the re- loans for state policy consider- On agriculture, the premier gion. ation, and current specialized pledged to raise investment in or- Meeting with Nepalese Prime banks will be renovated into com- der to achieve another good har- Minister Girija Prasad Koirala mercial banks. vest. Li said the government will the same day, Li said that his Third, the government will uni- raise the purchase prices of grain current visit is aimed at prom- fy the two-tier exchange rates for and cotton to protect the interests oting friendship and enlarging foreign currencies. China cur- of farmers and prevent their year- cooperation and further deepen- rently has two rates: an official ly income from decreasing or ing mutual understanding. one and the foreign-currency stagnating. On November 29, the NPPCC swap-market standard. The premier laid down what he chairman left Nepal for India for The officially mandated low termed "three principles for pro- a six-day official visit. 4 BEIJING REVIEW, DECEMBER 13-19, 1993 EVENTS/TRENDS talks on the disputed "political reform plan" on November 27 without reaching an agreement. At this crucial moment, Hong Kong Governor Chris Patten said he would publish part of his re- form bill concerning the 1994/95 election on December 10 and sub- mit it to the Legco on December 15. "This decision, made in disre- gard of repeated admonitions by the Chinese side, is extremely harmful to Hong Kong's future and will be absolutely unaccept- able," the HKMAO official said. Lu Ping, director of the HKMAO met with a delegation from the Democratic Alliance for the Betterment of Hong Kong LIU ]IANSHfiNG headed by Tsang Yok Sing on De- Chinese leaders see Li off for his tour to the three South Asian countries. cember 2. He noted that if the He called on Indian President firm policy of the Chinese gov- British side should insist on sub- S.D. Sharma on December 1 and ernment to strengthen Sino- mitting the electoral bill to the Legco, it would mean the unila- met with Indian Prime Minister Pakistan friendly relations and teral termination of the talks by P.V. Narasihma Rao two days la- cooperation, which have devel- the British side. ter. Both sides stressed the im- oped steadily and fruitfully in the Lu said that he was disappoint- portance of furthering Sino- political, economic, trade, scien- ed but not surprised at the failure Indian friendship and cooper- tific and technological and cul- tural fields. of the talks, because the British ation.
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