Vol. 25, No. 14 April 5, 1982

A CHINESE WEEKLY OF NEWS AND VIEWS

How to Evoluote the Porty's Style of Work HIGHLIGHTS OF THE WEEK the means of transportation (p, e). Socialisl Elhics and Soviet leader professed wilt- Courlesy Month ingness to "improve" relations Yeast Alanine T-RNA with China. China responded Visible improvements have Synthesized by saying that Sino-Soviet been achieved in environmental "In relations and international af- they put stages sanitation, public order and As the final fairs, what we attach impor- public service during "national of the decade-long experiment tance to are the actual deeds of into motion, the scientists who socialist ethics and courtesy the Soviet Union" (p. 7 and ynonth," which has not only worked on synthesizing the I 1). yeast transfer ribonu- changed the appearance of alanine cleic acid knew that they many cities but also helped if "Two Ch,lnas" Scfieme of succeed, would restore fine tradition-s and social the synthesis ffie US Erposed mark significant progress in trends (p. 5). human exploration of the life lhe Party's Styre ol Work The Chinese Foreign Ministry sciences (pp. 18-20). protests against another US The Party's style of work has move to create "two Chinas" by not yet taken a fundamental treating Taiwan as a "separate turn for the better, but con- foreign state" on the issue of siderable improvements have immigration (p, 8). been made. A Member of the Secretariat of the Party Central Foreign lnyeslors Committee, Wang Renzhong, Welcomed elaborates this evaluation with concrete examples and refutes Another 130 projects which two incorrect views (pp. 16-l?). involve various industries will On Brezhney's fashkent be open to foreign investors. SpeecD China will offer sufficient guarantees ln investments, as Scientlsts discusslng the re- sults of synthesizing yeast While continuing to attack well as in the supply of raw alanine T-RNA. China on its foreign policies, the materials and energy and Photo by Zhang Liuren

Chinese Spokesmon on ARTICI.ES A DOCUMENTS Brezhnev's Remorks BEIJING REVIEUV Vice-Premier Visits Poki- How to View Our Porty's Ji Wong Ren- ston Style of Work - Chino ond Vonuotu Estoblish zhong 16 Published every Mondoy by Diplomotic Relotions Successful Synthesis ol Yeost BEUING REVIR^' Protest Agoinst US "Two Alonine T-RNA 18 24 Boiwonzhuong Rood, Eeijing Chinos" Plot Nucleic Acid ond lts Synthesis 19 The People's Republic of Chino Telecommunico- Detoiled Rules ond Regulo- Postol ond lmplementotion tions Services tions for the of the lncome Tox Low of Vol. 25, No. ll April 5, 1982 130 Projects Open to Foreign oI lnvestors the People's Republic Foreign Enterprises Chino Concerning Foreign How Sholl 2ll CONTENTS Poy lncome Tox? Enterprises FROM THE CHTNESE PRESS 26-27 NOTES FROM THE EDITORS 3-4 INTERNATIONAI. 11-15 28.30 With CUTTURE E SCIENCE Economic Relotions A Comment on Brezhnev's Countries ln- 31 Foreign Toshkent Speech Xinhuo ART PAGE Editor Mu Youlin- ternotionol Correspondent - More on Speciol Economic A New Round o{ Struggle Zones Economic Editor Petroleum Fu Yon- -Docheng Over Wong feng - lsroeli Provocotlons in the BElJllllG BEVIEW (USPS ltlo. 558-110! is TETIERS I West Bonk-Zhong Toi published weekly lor USS 13.50 per year by Why Wos in Beiiing Beview, 24 Baiwanrhuang Road, EVENIS & TRENDS 5.10 Ustinov lndio?- Yu Ying Beijing, China. Second-class postago paid lnitiol Results of "Sociolist lndio: Reducinq the Birth Rote at San Francisco, CA. Postmaster: Send Ethics ond Courtesy Month" Hou Wenruo address changes to China Books & Lei - From Election to Young People Leorn From Guotemolo Periodicals, lnc., 2929 24th Strcet, San Feng Coup-Guon Yonzhong Francisco, CA 94110. Chinese Leoders Meet Brozil- The Columbio Shuttle in Arms ion Foreign Minister Roce - Mi Seli l\ rad g"s HiE"{lnnn (Irr. Iirlilors Economic Foreign Gountries ing global dialogue is the lelations Uith strengthening of the unity and expansion of economic and tech- China is readjusting its na- contracts were concluded. Some nical exchanges between the tional economy. Does this Chinese factories are doing pre third world countries. Though mean that it will discontinue its cmsing work, using raw ma- poor, the cpuntries economic aid to third world terials provided by foreign developing have rich natural resources and countries? firnrs. Other forms of economic experiences developing c,o+peration include joint ven- in their China is a developing country own ec.onomies. They be tures with Chinese and foreign will and it shares weal and woe with these investments. able to build upon other third world countries and strengths so long as they con- peoples. It is true that we are Needless to say, such economic tinue to share experiences and readjusting our national econ- co-operation is conducted on the to provide mutual aid. ()my and that oul. economic basis of equality and mutiral Economic and technological resources are limited, but we benefit. In co

April 5, 7982 I appreciated your recent article I was very much interested in on the relationship between lead- the article "US Shields Israel at ers and the Party (issue No. 4, UN" (issue No.7, 1982). It's 1982). It is time to set the record quite obvious that the US inr straight on different problems in perialist government will support I'd like to give my opinion about the international workers' move- Israel under all circumstances the reform of the cadre system. ment, and the questions of leader- including its terrorist acts. The I think age is irrelevant. What ship are certainly imporiant. The United States supported Israel's is important is the consistent history of the Chinese Party dem- annexation of the Syrian Golan thoughts and ideals of the old onstrates the importance of good Heights Iast February and its air cadres. which have been temper- leadership and the need for a attack on Iraq's nuciear reactor ed through years of failures and balanced view of individual lead- last June. Now Israeli acts of successes. These are the accu- ers, and it is good to address this aggression are under way against mulated quintessence and are issue. This article also further the Arab states and we know that stable. explained the 1981 Party resolu- the US imperialists are alwaYs protect Israel. These cadres should pass their tion. ready to knowledge on to the young and Patrick Stanford To sum up, it is widely rec- middle-aged cadres so as to con- Denver, Co., USA ognized that the US imPerialists solidate the direction of Deng and Israel are twins. The US im- Xiaoping and other major leaders, perialists and the Soviet exPan- purify the leading organs, and sionists both try to manipulate the simplify administration and elim- When I read your February 15, fate of the Arab world in Par- inate overstaffing in these 1982 issue (No. 7) of. Beijing Re- ticular and of the third world organs. Principal leaders like uieu pp. 26-28, I was shocked by states in general. Deng Xiaoping should continue to Liu Zhenbang's "Modern Agricul- provide support for the younger ture Should Be Based on Animal Osmanos O.H. cadres so long as their health Husbandry." I was, however, im- Merca, Somalia permits. These leading cadres mediately pleased, when I read should not retire from their posi- the articles "The Strategic Em- tions but should guide the utiliza- phasis Should Be on Grain Pro- tion of the young and middle-aged duction" by Ku Guisheng and people and prevent their frivolous- "Develop Agriculture in a Com- Thank you very much for Your people prehensive Shan. recent articles on the county Peo- ness. Furthermore, should Way" by Shi government be educated to care for those Both put the forum of strategy ple's in Tongxiang (issue TheY who retire so they can for agriculture on the right track County No. 5, 1982). cadres gave picture enjoy a happy life in their re- agarn. a very clear of the marnlng years. activities of the county delegates, Goran Engqvist the standing committee and the I hope Beijing Reuiew will Birmingham, UI( county government. I was very clarify the above-mentioned ques- about the The article "Forum Strategy interested to learn tions in its "Notes From the - (No. monthly meetings of countY dele- Editors." China's stability is the for Developing Agriculture" gate groups, standing 7) led sides with Ku and of the wish of Japan and other countries to my taking review the countY Guisheng, and to my growing dis- committee's of that have confidence in the Peo- you put budget. ple's Republic of China. like of Liu Zhenbang. If both characters to the vote on the Brantly Womack Stability after the old cadres' issue "who of the two is the Com- De Kalb, Illinois, USA retirement is essential to the suc- munist," you'd get very wrong cession of cadres. answers only from capitalists who w-ant to muddle the question. I admire the waY the PuPils o1 Ryonosuke Akasi J.M. van der Hoeven primary and middle Kyoto, Japan Lopic, The Netherlands China's schools behave. ["Spiritual Civili- zation," issue No. 4, 1982.1 Since I am a student, I want to know how pupils help their fellow class- China is a socialist sovereign only to improving the material mates and their schools. country. Ir1 the special economic conditions but also to the pro- George Richmond Tawiah zones, foreign investments are motion of socialist ethics. The Obuasi - Adansi, Ghana used to develop the economy social milieu, for instance, and economic policies are more should be orderly and ethical, flexible than elsewhere in the and government employees must country. But in the exercise of be examples in observing the sovereign rights, they are the law and honest in performing same as other Chinese Iocalities. official duties. Since these zones are more accessible to outside bourgeois - Economic Editor influences. attention is paid not Wang Dacheng

4 Beijing Reuieto, No. 14 on Chen Anyu, first secretary This year the emphasis is - environmental sanitation, Public of the Hangzhou city Party com- order and public service. Great mittee in Zhejiang Province, improvements are already took part in a massive effort to lnitial flesulls of "Socialist visible: maintain traffic order. Ethics and Gourtesy By mid-March, violations of Yin Fatang, first secretary ilonth" traffie- regulations by motor of -the Tibet autonomous regional vehicle drivers in Beijing had Party committee, served at a At eight o'clock one Sunday been reduced by 80 per cent counter in a department store in morning in mid-March, 20,000 from the latter half of February. Lhasa. When a Tibetan woman medical personnel from 400 units commune member wanted to bus on 41 of Tianjin in Beijing opened sanitation buy some earrings, he patiently -Everylines and over 60 stations propaganda and service booths bus showed her the store's entire were clean and tidy. The bus in the capital's major streets, stock. When woman dis- their the squares, parks and railway attendants improved covered that he was the first service were courteous and bus stations. These display and secretary of the regional Party towards the people, evidenced booths were equipped with committee. she was deeply fact that they received miiroscopes, biological speci- by the moved. mens and X-ray photos to help 180 commendatory letters from Li Yuanrong, mayor of people understand how bacteria the public in 20 days. Jinan- in Shandong Province, are spread and the great damage The people in Kunming in made an investigation of the smoking causes in the respira- - Yunnan southwest China's back streets and lanes to help tory organs and so forth. The Province moved away garbage improve sanitation facilities or medical teams also up redredged rivers set and three solve whatever problem ths peo- advisory offices to publicize which flow across the At city. ple might have. sanitation information. Among the same time, they planted those who patiently answered 240,000 flower- The socialist ethics trees and 89,000 ".rd "ori the people's questions, many ing plants and built 162 flower- tesy month has not only changed were medical experts, professors beds. the appearance of many cities and noted doctors. but also helped restore and carry Leading cadres in the various forward the fine traditions and This was part of the activities provinces, municipalities and . social trends. The young of the "National Socialist Ethics autonomous regions were people in many places have and Courtesy Month" which actively involved in similar conducted and started on March I this year. activities. "serve-you" " convenience-for-people" activi- Wonkers at the Beijing Railway Station serving boiled water to passengers ties, offering helpful services in in a waiting room. their spare time. In Fuzhou, 1 Fujian Province, they organized 150 teams to repair bicycles, watches, radio sets and offer i1 other services.

foung People learn From Lei Feng

Every childless, elderly dis- abled person in Beijing is looked after by young volunteers. Caring for the elderly and the handicapped is one aspect of the campaign to "learn from Lei Feng" and to serve the peo- ple. Lei Feng, a squad leader sign showing the way, revolu- by them politically and eco- in the People's Liberation tionary models encourage, nomically, there are still some Army, did numerous good deeds educate and inspire people to people in the world today who for the people before he died go forward," she said. look down upon them and want at his post in 1962 at the age is therefore Another speaker, Li Yanjre to bully them. It of. 22. He has since been cited important develop thd rela: of the Beijing Normal College, to throughout the country as a among world whose lectures on socialist tions the third model of serrring the people. countries. ethics and aesthetics have been In Beijing more than 100,000 warmly received by young peo- Vice-Chairman Deng also young people have formed ple and students from all over said that the third world coun- 10,000 "learn from Lei Feng the country, said that he had tries can learn much from each groups." Each group is assign- come across many people like other. Strengthening of cG ed to one or two old people in Lei Feng all over China. He operation among them is im- its neighbourhood and helps quoted the words of many portant to their development. young people he had spoken them with household chores spoke with to show that the Lei Feng Deng Xiaoping also and shopping or other work. tasks spirit has blossomed and borne about the two important Young people in other munic- fruits among the present-day facing China today in its ipalities and provinces have younger generation. modernization programme. He also organized "service grroups," noted that the streamlining of Advanced individuals and rep- teams" and administrative organizations is "care-offering resentatives "learn from Lei Feng groups" of advanced col- going on smoothly. Judging lectives present the forum to provide services for childless at from the situation of the last talked their experiences in elderly and handicapped peo- of two months, he added, China's learning from Lei Feng and in ple, revolutionary martyrs' veteran cadres have taken the educating young people in the families, and the families of overall interests into considera- Lei Feng spirit. men and women in the armed tion and can withstand the test. services. Deng also pointed out the importance of cracking down , The Beijing municipal com- 1,..,. ii.. '.j ii , :, on criminal activities in the mittee of the Communist Youth i .f l economic field. Failure to do League and the Beijing Youth so, he noted, will adversely af- Research Society recently co- fect the success of China's open- sponsored a foruri on learning Ghinese Leaders ileet door economic policy. from Lei Feng attended by 80 Brazilian Foreign people including theoreticians, "We are now confronted cadres in charge of youth work, ilinisler with numerous problems," and advanced individuals and Ramiro Saraiva Guerreiro, Deng said, "and some are quite representatives of advanced col- Minister of Foreign Affairs of complicated, but they can be lectives in learning from Lei Brazil, paid a visit to China solved. In short, China's situa- Feng. from March 2L to 28. tion can be summed up as very backward but promising." Addressing the forum partic- Vice-Chairman Deng Xiao- ipants, Gan Baolu, a philos- ping met with the distinguished During his meeting with ophy lecturer at the Beijing Brazilian guest on the morning Foreign Minister Guerreiro on Teachers' University, said that of March 25 and had a talk the afternoon of the same day, moral models and principles with him. Deng stressed the Premier Zhao Ziyang stressed reflect the economic and so'cial importance of strengthening co- that the further promotion of 'relations in a society. Every operation among the third mutual understanding and ruling class sets up its own world countries. He also gave friendship between China and models to maintain its rule and an account of the current situa- Brazil will give a new fillip interests. In feudal society, tion in China. He said that the to the development of China- filial piety and loyalty to one's development of relations and Brazil friendship and co- superiorc were stressed, strengthening of ceoperation operation. Zhao Ziyang prais- whereas in socialist society, the among the third world coun- ed the Brazilian Govern- emphasis is on people like Lei tries are of great importance in ment for its foreign policy and Feng who serve the people the current world situation. the Brazilian people for their wholeheartedly. "Like a road Though progress has been made achieveme.nts in economic con-

6 Beijing Reoieut, No. 74 'IRINIDS ci-llNtl\ EVINI'TS & Pakistan President Moham-' their just struggle to safeguard ' Chinese Spokesman on mad Zia-ul-Haq met with the their national independence and Delegation and held state sovereignty and oppose Remarks Chinese Brezhnev's talks with Vice-Premier Ji foreign aggression and inter- Qian Qichen, a spokesman of Pengfei. They exchanged views ference. the Chinese Ministry of Foreign on bilateral relations and cur- Affairs, made a statement at a The Chinese Government Del- press conference in Beijing rent international issues. They egation visited an Afghan ref- the on March 26 on the remarks expressed satisfaction at ugee camp. At a meeting held made recently by L. Brezhnev, increasing ties between the in his honour at Nasir Bagh, Ji President of the Presidium of two countries and decided to the Supreme Soviet of the Pengfei said that the Afghan USSR. He said: make efforts to further promote people, by persevering in their bilateral co-operation. "We have noted the remarks heroic struggle and with inter- on Sino-Soviet relations made At the banquet in honour of national sympathy and suPPort, by President Brezhnev in Tash- the Chinese Delegation, Pres- will surely be able to drive the kent on March 24. We firmly their reject the attacks on China ident Zia-ul-Haq praised the Soviet aggressors out of contained in the remarks. In friendship between the two homeland, thereby making it Sino-Soviet relations and inter- countries, which has stood the possible for the refugees to re- national affairs, what we at- stressed that turn home. tach importance to aie actual test of time. He deeds of the Soviet Union." both Pakistan and China are not only pursuing a policy of peace- Ghina and lanuatu Establish ful coexistence and bilateral co- Diplomatio Relalions operation have complete struction. He expressed the be- but The Government of the Peo- identity of views on all interna- lief that the two countries will ple's Republic of China and the tional problems. co-operate better in internation- Government of the RePublic of al affairs and that their friendly In his speech at the banquet, Vanuatu have decided to estab- relations and co-operation will Ji Pengfei said that China is a lish diplomatic relations at expand in various- fields. close neighbour of the South ambassadorial level as of March Vice-Premier and Foreign Asian countries. It is China's 26. consistent and sincere hope Minister Huang Hua, Vice- The joint communique signed that all the South Asian Premier and Minister of the two sides said: "The countries will eliminate out- by Foreign Trade and Economic Government of the RePublic of side interference, iron out their Relations Chen Muhua also met Vanuatu recognizes that the differences in the spirit of with Foreign Minister Guer- Government of the PeoPle's mutual understanding and mu- reiro on separate occasions. Republic of China is the sole tual accomodation, continue to They discussed the international legal Government of China, and improve and develop their mu- situation, bilateral relations and supports the efforts of the Chi- relations and make contri- other issues. tual to the maintenance of nese Government and PeoPle butions to inde- A scientific and technical co- peace and stability in this re- safeguard their national pendence, and ter- operation agreement between gion. Ji Pengfei expressed his sovereigntY China and Brazil was signed in appreciation of the efforts ritorial integritY. Beijing on March 25. Pakistan has made in this "The Government of the regard. People's Republic of China suP Uice-Premier Ja Uisits ports the Government and Peo- The Chinese Vice-Premier ple of the Republic of Vanuatu people of China Pakislan said that the in their e.fforts to safeguard na- good friends and Pakistan are tional independence, sovereigntY ' A Chinese Government Good- trusting each other. He assured and territorial integritY, and to that no will Delegation, led by Vice- the people of Pakistan develop national economY." Premier Ji Pengfei, went to matter how the international Islamabad to attend the situation may change, the Chi- The Republic of Vanuatu is a celebrations of Pakistan's Na- nese Government and PeoPle newborn indePendent countrY tional Day (March 23) and to will always stand on their side in the south Pacific region. pay a friendly visit. and firmly suPPort them in Renmin Riboo Pointed out in an

April 5, 1982 editorial that the development year. After the establishment ment started to put it into prac- of the friendship and co-opera- of Sino-US diplomatic relations, tice. Chinese Ambassador Chai tion between China and Vanua- the US Government had includ- Zemin in Washington sent a let- tu on the basis of the Five ed all Chinese immigrants in the ter to congressman Stephen Principles of Peaceful Coexis- United States, both from China's Solarz, Chairman of the House tence is fully in the interest of mainland and Taiwan Province, Subcommittee on Asian and the two peoples and is of in the quota of Chinese im- Pacific Affairs, on last February significance to the maintenance migrants until the said amend- 8 to reaffirm the consistent stand of peace in the Pacific region ment was adopted. of the Chinese Government and the world as a whole. But, the "Taiwan relations against the US treatment of Taiwan act" of 1979 stipulates in princi- as a country or an "in- ple that Taiwan may be treated dependent entity." A copy of Protest Against US the letter as a state for purposes of the was sent to the State Ghinas" Plot Department. "fwo immigration and nationality act. The Chinese Foreign Ministry This is an unjustifiable provi- A Chinese Foreign Ministry sion which violates the princi- sent a note to the US Embassy source pointed out that the legal ples set in the communique on in Beijing on March 26 to pro- status of Taiwan, as a part of the establishment of Sino-US rec\og- test against another US move China's territory, has been diplomatic relations, disregards to create "two Chinas" by nized by over 100 countries and China's sovereignty and con- treating Taiwan as a "separate the United Nations. The US Gov- stitutes an interference in foreign state" on the issue of ernment confirms it in the com- immigration. China's internal affairs. munique on the establishment of Sino-US diplomatic relations. amendment an- The note demanded that "the The said The "Taiwan relations act" and US Government take prompt nounce'd in clear terms that the amendment to the interna- "the approval referred in the measures to correct the said to tional security and development mistake and guarantee against immigration and nationality act co-operation act, by treating shall be considered to have been the recurrence of similar inci- Taiwan as a state on the issue granted dents in the future." with respect to Taiwan of immigration, openly violate (China)." The US Congress last De- the communique and the norms cember adopted an amendment We do not oppose an increase of international relations. to the international security and of the quota of Chinese im- development co-operation act of migrants in the United States 1961. In ,pursuance of this (including those from Taiwan). amendment the US Government But obviously, the amendment has annouhced that in every in essence separates Taiwan fiscal year 20,000 immigrant from China and treats it as a Postal and lelecommurica- visas will be made available "separate foreign state." Legal- to tions Seruices Taiwan separately. The amend- ly, the amendment is a step ment came into force after be- further to put into effect the More funds will be appro- ing signed by the president last relevant provisions of the "Tai- priated td develop China's pos- December 29. wan relations act." This is an tal and telecommunications open act of creating "two services between this year and. According to the US immigra- Chinas" on the part of the 1985. This is aimed at effecting tion and nationality act, an in- United States. major improvements in its in- dependent country or certain ternational and domestic other political entities such as a Upon learning about this act servlces. self-goverrring dominion, q o of legislation aimed to create mandated territory, or a ter- "two Chinas" last November, the Investments earmarked for ritory under the international Chinese Embassy in the United postal and telecommunications trusteeship system of the United States expressed in explicit use will amount to 250 million Nations, treated as a "separate terms to the US side its objec- yuan this year, accounting for foreign state" by the US Gov- tion. Yet, the US Congress still 1.2 per cent of China's total in- ernment with the approval of adopted the amendment and vestments on capital construc- the secretary of state, can be President Reagan signed the tion for 1982. In the past, in- granted immigrant visas not ex- document to bring it into force. vestments in this field averaged ceeding 20,000 in any fiscal Afterwards, the State Depart- only 0.8 per cent of the total.

8 Bei.jing Retsieta, No. 14 qHINIT\ TVENIS & TRENIDS

Due to insufficient funds, munications and the local Selected from the 280 pro- postal and telecommunications bureauS will be allowed to retain posed throughout the country, services are comparatively poor. 90 per cent of their profits and the projects are located in 23 In China today, there are only foreign exchange income mainly provinces, municipalities and 4.3 telephones for every 1,000 for use in upgrading equipment. autonomous regions. They will people, lower than the numbers Formerly, they were only aI- require a total investment of in India and Africa. In large lowed to retain 80 per cent of 1,656 million US dollars (48 and medium-sized cities, too their profits and 60 per cent of require l0 million US dollars few telcphones have been in- their foreign exchange earnings. or more each). Foreign firms are stalled and reception is ematic expected to invest 900 million and unclear. The inadequate In the next three years. the US dollars. services in this field have se- ministry borrow an in- will These projects involve various riously affected modernization creased amount of low-interest industries. including the light, in other fields. bank loans for the purpose of textile, chemical, building- importing programme control Certain improvements have material. machine-building, telephone exchange systems and been made during the current metallulgical, electronic and in- streamlining the facilities in Bei- period of economic readjust- struments and meters industries. jing. Shanghai and other cities. ment. In the past three years, Five of them need to be built 270,000 telephones and 5,000 from scratch. the others require long-distance telephone circuits expansion or renovation. China were installed in the Large and 130 Projects 0pen to will give these proiects sufficient medium-sized cities. At present, Foreign lnvestors guarantees in investment, in the automatic and semi-automatic supply <-rf raw materials and Iong-distance dialling has been China will present 130 proj- energy and in the means of introduced in 23 provincial capi- ects to potential foreign in- transportation. Their products taIs. International telephone vestors at the China Investment will be marketed at home and services have developed marked- Promotion Meeting to be con- abroad. ly. Revenue from interflational vened in Guangzhou June 7-11. To facilitate approval, the telephone services in 19Bl in- Sponsored jointly by the Chinese Government has dele- creased by 56 per cent over that United Nations Industrial De- gated power to Beijing, Tianjin, of 1980. velopment Organization and Shanghai and Liaoning Province In the next three years, China China's new Ministry of Foreign to examine and approve projects plans to increase the number Trade and Economic Relations, with an investment of less than of urban telephones from the the meeting will introduce for- 5 million US dollars; the other present 2 million to 2.7 million. eign business representatives to provinces and autonomous re- Automatic long-distance dialling the sponsors of the projects and gions may examine and approve will be introduced in the capi- Chinese departments concernd. projects with an investment of tals of all provinces and auton- omous regions as well as in the three municipalities directly under the central authority. In- ternational telephone services will be made more convenient in Beijing, Shanghai and Guang- zhou; all of which have closer ties with foreign countries. In order to develop China's postal and telecommunications services as quickly as possible, the state has adopted other pref- erential economic policies. Beginning this year, the Ministry of Posts and Telecom- A woollen mill jointly built by China and Japan in Inner Mongolia.

April 5, 1982 less than 3 million US dollars. tation of the Foreign Enterprise In view of the fact that for- Guangdong and Fujian Prov- Income Tax Law in February. eign enterprises in China will inces may approve projects (For full text, see p. 20.) inevitably have financial rela- tions with their head offices, the with any amount of investment The regulations were worked provided ensure regulations specify the items that they can out after repeated investigation that can be listed as expenses. the supply of raw materials, and study of the actual condi- They also clarify the division funds and energy. tions of foreign enterprises in between capital expenditures China and the practical ex- Recently, an agreement on and expenses and define the perience in the implementation jointly conducting a feasibility depreciation and amortization of the income tax law concern- study on the development of the system. Pingshuo Open-Cast Coal Mine ing joint ventures using Chinese in north China's Shanxi Prov- and foreign investment. The principle for the deprecia- ince was signed by the China The detailed regulations sp€- tion of fixed assets is to allow National Coal Development cify that for smaLl and low- acceleration of depreciation and Corporation and the Occidental profit foreign enterprises (with quick recovery of irrvestment in Petroleum Corporation of the annual incomes of less than one Iine with the principles laid United States. million yuan), the Iocal surtax down in the income tax law may be reduced or waived upon concerning joint ventures using According to the agreement, decisions by the government of Chinese and foreign investment. one of the world's bigge.st sur- the provinces, municipalities, or face coal mines will be launched income from autonomous regions where the On the derived in Shanxi Province, as a con- China, regulations provide enterprises are located. This is the tractual joint venture with joint an indication of the lenient a detailed explanation and sup- commitments of investment and plementary provisions the policy of the Chinese Govern- on risks. Its planned yearly output scope remittance f or ment on the tax burdens of of tax is 15 million tons. income derived from the in- medium-sized and small foreign tereSts on the loans granted to More than 1,000 joint ventures enterprises. It also shows that national banks China at and co-operative and compensa- the state pays attention not only of preferential rates. tory trade items with foreign to large projects buL also en- businesses, totalling 2,900 courages the development of In order to encourage foreign million US dollars in invest- medium-sized and small enterprises and other economic ment, have been approved by joint ventures. organizations to deposit money the Chinese Government since China's national banks, the Compared with the practice in the adoption of the opendo

10 Beijing Reoieus, No. 14 INIIEITNIA'IIONI\I REPOTT tS & COMMEN'IS

charge that China's policies are A Comment on Brezhney's "at variance with socialist prin- ciples and standards." Ioshkent Speech The fact that the Soviet Union, while professing willing- qOVIET leader Leonid Brezh- dependent policies. Within this ness to "improve" relations with \J nev recently announced context, China criticizes the So- China, made such accusations that the USSR is ready to "im- viet Union's expansionist poli- has led people to conclude that prove" Sino-Soviet relations. cies. However, in his speech the true value of Brezhnev's re- marks be judged light Brezhnev accused China oI should in Brezhnev made the announce- the Soviet Union's subse- purs'uing foreign policies which of ment on March 24 in a speech quent deeds. at a mass rally in Tashkent. In work in concert with the poli- cies of imperialists. He also Xinhua Correspondent the speech he also declared that - the Soviet Union will adhere to the "principled position" adopt- ed on China at the 25th and 26th Congresses of the Com- A New Round Stru ggle munist Party of the Soviet of Union Over Petroleum The Beijing press has noted that Brezhnev chose a troubled rn HE oil ministers of the last year. The demand for oil moment in Sino-US relations I Organization of Petroleum on the world market has declin- (resulting from US arms sales Exporting Countries (OPEC) ed approximately 26 per cent to Tairvan) to state the Soviet deci'ded to maintain the cur- since late 1981, resulting in a Union's opposition to the "con- rent price of $34 a barrel daily surplus of 5-7 million bar- cept of two Chinas," to present for crude oil and to reduce oil rels. Overproduction and ex- its ''recognition of the sover- production from 19 to 17.5 mil- cess supplies have caused the eignty of the People's Republic lion barrels a day beginning price of oil to drop. In the of China over Taiwan island" April 1. Western oil market, the price per barrel has decreased from and to profess his readiness to The agreement was announced $40 a year ago to the present discuss "improvement" of Sino- in a communique issued after a per barrel. OPEC now faces Soviet relations. According to two-day ministerial meeting. $28 the most serious challenge since the Beijing press, this provides These measures are being taken its founding. food for thought. by OPEC to cope with the de- clining price of oil caused by Demand for oil began declin- The Soviet leader has made the imbalance of supply and de- ing when economic recessions similar remarks in the past, but mand on the world oil market. hit those Western countries they have not been followed by Saudi Arabia, the biggest oil causing industries to cut back substantive actions. exporter, announced after the on costs by saving energy. Some meeting its industrial countries have had Even though large numbers that it will cut crude production cope to decrease oil imports and use of Soviet troops are still deploy- oil to pressure from the super- other sources of energy. Oil ed along the Sino-Soviet border, $th powerc and Western oil com- consumption in the seven major Brezhnev denied in his speech panies. These developments Western developed countries that the Soviet Union consti- suggest that a new round of has reportedly declined 23 per tutes a threat to China. He also struggle is developing over cent during the pAst three said that his country has never petroleum. yearc. interfered in China's internal affairs. The sharp reduction of oil The Declining Oil Price consumption has caused the As a sovereign state, China Despite decreased oil produc- price of oil to drop. Further- has every right to pursue in- tion, a "glut" developed early more, the superpowers and

April 5, 1982 11 ed that his country had cut its Crude Oil Prkes production ceiling from 8.5 to (Arabian Standard Light OPEC OII. OUIPUI 7.5 million barrels a day. The Crude Oil) Saudi decision led to the con- (lJnit dollars per barrel ) (unit million barrel ) vening of the recent ministers' dailY outPut meeting to unify OPEC's oil $+o production and price. 30 ii 3s The agreements reached by 30 the OPEC oil ministers on oil prices and production indicate 13 that in order to cope with the ?0 ever-worsening world oil mar- ket member countries are striv- l5 ing to narrow their differences to safeguard common interests. ]B I79 I BO I 81 I82 Given the world's present pro- Present market price 79 E0 I 828? duction prdctices and the stag- Standard crude otl Price nating economies of the major - lar Ar - industrial countries, oil supplies will certainly continue to out- s()me international oil com- $30.2 per bqrrel. Venezueia has strip requirements and oil prices panies have flooded the world reduced its oil price several will continue to drop. It is still market with large quantities of times and other OPEC member questionable as to whether petroleum, thus worsening the countries have also reduced OPEC's recent agreement to situation and causing oil prices their prices. In order to stabilize reduce oil production can main- to decline. This has evidently the oil price, some member tain the current price. OPEC been done to divide the OPEC countries are demanding that still faces an arduous situation. countries and destroy the or- Saudi Arabia cut its oil produc- Therefore, it is imperative that ganization. tion, which constitutes 40 per the organization's member cent of OPEC's total oil produc- countries continue to eliminate New discoveries in Britain's tion. Although Saudi Arabia North Sea and in Mexico have their differences and seek initially rejected this sugges- greater unity. also contributed to the surplus tion, on March 6, the Saudi of oil on the world market. Minister of Petroleum announc- -Fu Yanfeng The Soviet Union, which calls itself a "natural ally" of third world countries, has profited from selling lalge quantities of lsroeli Provocotions in the Iight oil and oil products on the spot market in Rotterdam of West Bonk the Netherlands. This has caus- ed the price of light oil to drop f SRAELI authorities recently tive is to maintain Israeli oc- by 15 per cent during the past r dismissed the Arab mayors of cupation of the West Bank by few months. the West Bank cities of Nablus undermining Arab support for and Ramallah for alleged op- Ieadership by the Palestine OPEC's Chollenges position to "civil administra- Liberation Organization and bY tion." increasing emphasis on Israeli The oil surplus and declining "civil administration." If they The El Bireh city council was price have placed OPEC succeed, these actions will divide the dissolved a week earlier on the countries difficult the Palestinians and deny them in a very same pretext, a move which position. Suffering frorn its war their right to establish an inde- touched off a wave of West with Iraq, Iran has been er- pendent Palestinian state. Bank and Gaza Strip protests. periencing economic probletns and badly in need o1i exporting "Civil administration" is part The Palestinian people, crude oil to acquire foreign cur- of the "new policy" anaounced who desire self-determination, rency. Therefore, Iran has re- last Augu.st by Israeli Defence strongly oppose the "new cently reduced its oil price to Minister Ariel Sharon. Its objec- policy." The mayors of manY

12 Beijing Reoieu, No. 14 tNlIeRNll\.noNA[ RaPOR tS & COt lAeN tS

West Bank cities have refused increasingly isolated in the with its military relationship to co-operate with Israel's "civil world because of its aggres- with the Soviet Union. The administrators." sive policies. In addition, many visit, he said, will help to solve Arab countries have resPonded any problems regarding mili- paratroops, armed Israeli to this recent crisis bY staging tary relations between the two police personnel and armoured strikes and demonstrations to countries. carriers dispatched to suppress show their support for- the protestem have killed and During his visit, Ustinov Arab Palestinian people. wounded a number of Pa1es- talked with Indian Prime Minister Indira Gandhi and tinians. Nonetheless strikes and control Israel has maintained Indian Defence Minister Ramas- demorrstrations continue. The a over seized Arab lands for wamy Venkataraman. For some lsraeli Knesset's (parliament) Iong time under the pretext of March 23 no-confidence vote on reason, no aides but one inter- ensuring its security. This kind preter was present. The major the Begin administration result- of aggression can only breed ed in a 58-58 tie. This shows topicof their talks is miiitary co- hatred. Israel will bear the con- operation between the two coun- that the Begin administration is sequences of its leaders' provoca- now battling for survival. tries. Ustinov repeatedly said tive actions. that his country will do its Despite US support, Begin's utmost to help India strengthen administration has become Tai -Zhong its defence capability. He also promised continued efforts to help India achieve self-reliance in this regard. The Soviet lndia? Union will reportedly license Why Was Ustinov in India to make Mig-23s and is likeiy to supply Mig-27s. A massive Soviet military purchase neu, pllrnes from Rus- Though the visit has been A delegation led by Soviet sia." described by Ustinov as "fruit- Defence Minister Ustinov was ful," no high-ranking Indian recently sent to India for a six- India is beginning to turn to officials have commented. An day visit. The visit is ob- the West for military equiPment Indian Defence Ministry viously designed to main- and to reduce its dependence spokesman said that the two tain the Soviet Union's dom- upon the Soviet Union. Ac- sides conducted a wide range of ination of India's rnilitary cording lo Sueddeutsche Zeitung discussions but signed no of- imports. Nearly 70 per cent of of West Germany, India has ficial agreement. According to India's military hardware re- imported 85 fighters from the the Indian. Defence Ministry, portedly comes from the Soviet US, abquired ordnance from Ustinov asked India not to Union. But the Indians are Sweden, clinched a 800 million diversify its sources of military dissatisfied with the poor quality mark submarine deal with West supplies after he had expressed of the Soviet equipment. Germany and signed an agree- the Soviet aspiration to strength- Organizer, an Indian weekiy, ment of 40 Mirage 2,000 planes en military co-operatir.rn with recently revealed that the Mig- with France. India. This constituted an at- 21s used by the Indian air force Such Indian actions have tempt to prohibit India import- have the highest crash rate in alarmed Moscclw which is not ing military equipment from training. "A Mig-25 plane content to Iet the West capture the West in order to maintain crashed in a trial flight over a considerable portion of the Soviet monopolization of India's Uttar Pradesh not long ago and 9,000 million rupees which the military purchases. India has the Russians even refused to let Indians have budgeted for not commented on the Soviet the Indian airmen to see the defence expenditures. Union's unscrupulous demand. wi'eckage," it added. An Indian magazine said: "All these show that the Soviet Moreover, Nlloscow often de- Moin Purpose promise to supply Mig-2?s is de- Iays delivery advanced As soon as he arrived in In'- the of void of any value." equipment and parts. Thus, dia, Ustinov told j

14 Beijing Retsiern, No. 14 lNlIEtrNli\ noNr\[ REPOR tS & COl\AMENrc

of the presidential candidates demonstrations and post-elec- are also attempting to cope with were arrested while attempting tion chaos. The army's chief Guatemala's economic problems to deliver a written note to the of staff denied that a coup was and end its diplomatic isolation. president which demanded that being planned. He said that a The coup was reportedly sup- the election's results be annull- coup would only generate a ported by six garrisons and the ed. According to the Guatemalan situation similar to the one candidates of the National Lib- constitution, the congress was which presently exists in El eration Movement and the authorized to appoint Anibal Salvador. However, the army Christian Democratic Party. Guevara president because the took power 14 days later. I Disorder produced the coup, leader of the National Libera- The coup's leader has declared but whether the coup will put tion Movement, Mario Sandoval I intentions to conduct an honest an end to the disorder remains Alarcon, who received ihe election, eliminate corruption to be seen. second highest number of votes, and establish democrary. They Guan Yanzhong I withdrew from the election. - The opposition parties refused to recognize Guevara's appoint- The Columbio Shuttle Arms Roce ment, claiming that he hadn't in received public sup- suffcient tI-tHE United States launched military officials say the Soviets port. r its Columbia space shuttle have a research and develop Coup's Bockground for the third time on March 22, ment programrrre for laser despite Guatemala has many political complications arising weapons three to five times the from a changed Ianding site. size of similar ef- parties and has been ruled by a a $merican The get militarl' government for many haste to the Columbia fort. Both the US Secretary of the ground years. As a result, its political off again is another Defence and the President have indication the intense arms situation is chaotic. None of the of declared that the United States political parties which partici- rivalry between the two super.- must invest more heavily in pated in the election offered powers. developing and producing more viable solutions to the country's The US space shuttle prG sophisticated weapons, including increasing violence. its serious gramme is well behind its weapons systems in spaee. economic crisis or its isolation. announced schedule. Regular The accelerating arms race Moreover, they devoted a great flights were supposed to begin between the two has generated deal of energy to attacking each in September this year; once a opposition inside the United other. fortnight. But US space States. Some people are saying authorities are now speaking that the space shuttle pro- divided. The army is also about one flight every five to gramme is too costly. During Some officers not want to did eight weeks. And that schedule the 10 years it has taken to power. relinquish Although the may not be implemented until develop the space shuttle, the government attempted ease to 1984 or 1985, say some NASA US economy has lost a lot of mo- conducting the the conflicts by officials. mentum. Rising costs have also election. its resul.t has not satisfi- hampered the space programme. ed the opposition parties. The haste in dispatching Some projects have been dis- the Columbia was apparently Right-wing terrorist continued. This has led some Some prompted by the recent Soviet organizations have murdered scientists in the United States soft-landings on Venus. Each dissidents and subjugated the to charge that their country is superpower is charging the people. As a result, the situa- losing its lead in the space race. other with trying to obtain a tion is more chaotic than it was They say that urgent steps must military advantage in space. before be taken to reverse this. the election. The Soviets are accusing the However much United Rumours of a military coup United States of carrying out the trY began to circulate in Guatemala space experiments for military States and the Soviet Union in City on March g. One newspaper purposes while accelerating to hide it, they are engaged race space the reported that a military junta their efforts to develop a laser an arms in and is part of this race. would probably emerge within weapon system to shoot down Columbia a a few days in order to end the "hostile" satellites. American - Mi Seli April 5, 1982 15 Artieles & I)oeurnents

How to View Our Party's Style of Work

by Wang Renzhong ) "Hongqi" issue No. 5, 7982, carried, a speech or influence, putting up buildings for private bg Wang Renzhong, a Member of the Secretari,at use with public materials, transferring one's rel- I of the Partg Central Committee, at a meeting atives or friends from the countryside to the on February 11, 1982, attendeil by responsible cities and privilege-seeking, these people think members of the d.epartments directly uniler the that these are trivial matters. But they do not Hubei prouincial Party committee. The follow- understand that it is precisely these matters that ing is an abridged translati,on of the first part have made the people feel dissatisfied with our of the speech. Ed. Party and have damaged the Party's image and - prestige among the people. What is more, these rfrHERE are two incorrect evaluations of our things are not rare. For instance, the phenom- I Party's style of work. One, held by a tiny enon of building private houses is rather com- number of people, is that our Party has been mon. Some cadres have used farm and vegetable corrupted and is hopeless. This position says fur- Iand to build private houses, have embezzled ther that the Party must be overthrown and a state property or have illegally used the labour change of regime is imperative. This view is force of the collective and urban building teams. held by the remnant elements of the gang of Some of the cases are extremely serious. At four, including such people as Jiang Qing and first, they say a building is being erected for Zhang Chunqiao who havg been put behind the workers. but when it is finished, it'is re- prison bars. The peopls in society who echo served for the use of the leading cadres. The them are heads of illegitimate organizations masses are, of course, dissatisfied with this. publications. these people and and What say What merits our particular attention is that do are counter-revolutionary and must be ex- in our Party, army, state organs, enterprises posed and criticized. In addition, some other and institutions, there are criminals who engage injudicious people, especially some young peo- in such reprehensible practices as smuggling, ple, have agreed to such statements and have giving and accepting bribes, speculation and lost confidence in our Party. We must criticize profiteering, graft and embezzlement. Up to and educate them, and warn them not to be now, we have not discovered a province that taken in by the enemy. There were many such is devoid of such problems. Of course, things people prior to the first half of Iast year. Now vary from area to area; some places have more the situation has been improved greatly. serious problems than others. In some places. smuggling has been taking place on a stupen- The other incorrect view is that there are dous scale. no serious problems in our Party's style of work. This view is also held by a very small Up to now, the highest-ranking persons number of people. In their opinion, to talk convicted of criminal activities were the head of about the degeneration of the Party's style of the Guangzhou posts and telecommtrnications wor:k is merely being alarmist; and to say that bureau and his wife. Are they really the highest the Party's style of work is a matter concerning ranking people who have committed such the life and death of the Party is sheer exaggera- crimes? It would be foolish to guarantee that tion. As for the repugnant practices of estab- ,none of a higher rank will be exposed. The lishing underhand connections for the sake of Party Central Committee is determined to personal gain, securing advantages through pull thoroughly investigate this problem. In dealing

16 Beijing Reoieu, No. 14 with crimes in the economic field such as graft The central authorities have taken the lead and embezzlement, speculation and profiteering in streamlining the government strueture, as well as with smuggling, the higher the rank training cadres in rotation, raising work effi- of the cadres involved, the more severe punish- ciency and overcoming bureaucracy. This is a ments will be meted out to them. The Com- profound revolution in our government system. munist Party forbids its cadres from providing The central authorities have taken the lead in cover for each other in offences against the law. this revolution and have set an example. It will be carried out in the localities when ex- It is necessary to have a correct evaluation perience has been acquired. of the Party's style of work. On the one hand, we must see that we have not brought about a No leading comrades in the central au- fundamental turn for the better in our Party's thorities have been discovered to violate the Style of work. On the other, we must see that Party Central Committee's regulations on accom- considerable improvements have been made. modations or other similar matters. All Politi- cal Bureau Members, Vice-Premiers of the State What are the major indications of the im- Council and Vice-Chairmen of the NPC Standing provements? First of all, we now have a good Committee could use two cars. The present reg- Party Central Committee. Our current Party ulations stipulate that each is entitled to only Central Committee has really restored artd car- one, so now each of them uses one car. In the past, ried forward our Party's fine traditions and its Ieading comrades in the central authorities could fine styles of work of integrating theory with have special private film showings. The Party practice and keeping close ties with the masses practice as s'eil as criticism and self-criticism. Our Central Committee decided to stop this Party Central Committee now indeed performs in accordance with the opinions of the people. its functions according to the principle of demo- Now. if we want to see a film, we buy tickets cratic centralism. No longer is policy determined and see it as a group. When leading comrades by the word of one man or a few people. in the central authorities return from visits abroad, all gifts they have received are handed Our Secretariat of the Party Central Com- over to the state. except souvenir badges. mittee is only authorized by the Politrcal Bureau to decide on and deal with concrete matters in Now, Zhongnanhai [the place where the daily work. All decisions by the Secretariat Party Central Committee aild the State Council on major matters concerning principles and are located] is open on Saturday and Sunday policies must be approved by the Political and people can buy tickets to visit ii. The Great Bureau or its Standing Committee before they Hall of the People has also been opened to the are circulated as directives of the Party Central public for visits, and mass organizations and the Committee. Usually, the meeiings of the various associations can hold meetings there. Secretariat are presided over by Comrade Hu In the past they were not open to the public. Yaobang. If the meetings discuss important problems in government and economic work. Befot'e the "cultural revolution," summer they are also attended by Comrade Zha

April 5, 1982 t7 Successf u I Synthesis of Yeost Alonine T-RNA

A SYMPOSIUM of the Chinese Academy of started their work on synthesis of yeast alanine fI Ssisngss held in January 1982 announced; T-RNA in 1968. This ribonucleic acid is com- The yeast alanine transfer ribonucleic acid posed of 76 nucleotides. After many years of synthesized for the first time in the world by efforts, they prepared 11 kinds of nucleotides, the Chinese scientists is identical in chemical l0 relevant enzymes and necessary chemical structure with natural T-RNA and is biological- reagents for T-RNA synthesis. They used com- ly active. This achievement marks a significant bined chemical and enzymatic rnethods to join progress in human exploration of the life nucleotides step by step into oligonucleotide scrences. fragments of various length. The larger frag- ments were then joined into two half molecules The synthesized yeast alanine T-RNA and finally into the whole molecule of ?6 nucleo- molecule contains all the rare nucleotides con- tides on November 20, 1981. All five of the ex- tained in the natural molecule and shows similar' periments repeated later proved successful. biological activity in transferring alanine into protein in a cell-free protein synthesis system. The synthesized yeast alanine T-RNA is a Nucleic acids and proteins are the funda- product of collaborated efforts by nearly 200 mental building materials of living organisms. scientists from several institutes of the Chinese Without nucleic acids and proteins there would Academy of Sciences (including the Institutes be no life. Scientists discovered nucleic acids of Biochemistry, CeIl Biology and Organic in cell nuclei over a century ago. Since the Chemistry in Shanghai, the Institute of Bio- 1950s, much efforts have been made to synthe- physics in Beijing), the Department of Biology size nucleic acid. However, as the structure of of Beijing University and the Shanghai No. 2 nucleic acid molecules is quite complicated, un- Reagent Factory. China's recent success, no scientists in the til The success of yeast alanine T-RNA syn- world had succeeded in synthesizing biological- thesis will promote the study of the structure ly active ribonucleic acid identical in chemical and function relationship of ribonucleic acid. structure to the natural molecule. the study and production of reagents and en- Encouraged by their success in synthesis of zymes for nucleic acid research work as well as bovine insulin in 1966, the Chinese scientists the production of a number of ribonucleic acid derivatives which could prove effective against Scientists discussing the strueture of models of synthesized nucleotides joined into oligonucleotide fragments. tumours, cancers and other diseases caused by virus infection. Final Two Days ol Syntfiesis As dusk fell over Shanghai at 18:00 hours on November 18, 1981, seven scientists were gathered at the nucleic acid laboratory of the Institute of Biochemis- try. The final step in the experiment that would successfully synthesize yeast alanine transfer ribonucleic acid was

Beiiing Reui.ew, No. 74 about to be taken. Once again, every detail of they had succeeded in synthesizing yeast ala- the plan was checked. nine T-RNA. At 20:00 hours, the work started. The ten- Untlagging Research Eltorts sion mounted as each operation was conducted. Although they had done similar experiments The work was hgun in February 1968 when many times, every step was checked and double the Chinese people were caught up in the tur- checked. The final product was sealed in a test moil of the "cultural revolution." In this very tube and refrigerated to allow chemistry to take difficult political situation, the scientists started its course. their preparatory work. The Shanghai No. 2 Reagent Factory worked in co-operation to trial- 13:00 hours on November 19 the tube At produce nucleotides and managed to turn out was removed from the refrigerator and the ex- four common nucleotides in a period of about amination of the synthesized substance began. two years. Then, Iaboratories produced the Many anxiously awaited report. scientists the other seven rare nucleotides. Chemists of the At 17:00 hours, the first result reported was Shanghai Institute of Organic Chemistry under that the synthesized product had an alanine ac- Wang You, a noted organic ehemist, simplified cepting activity. the original synthesis of thymidylyc acid, a rare nucleotide, from 13 steps into two. Researchers At 09:00 hours the next morning, November at the Shanghai Institute of Biochemistry and 20, the second report said that the ligation had the Institute of Biophysics helped prepare reached 50 per cent and that in a polyacrylamide pseudouridylic acid and worked on the joining gel electrophoresis, the positions of the nucleo- and breaking apart of natural ribonucleic acid. tides were the same as in natural T-RNA. This laid the groundwork for the total syn- thesis. On that same e'",ening, scientists waited at the isotope examination laboratory of the The research group for the synthesis of Shanghai Institute of Cell Biology for the final yeast alanine T-RNA was headed by Professor results. At 18:20 hours it was confirmed that Wang Debao, 63, noted nucleic acid scientist and

Nucleic Acid and lts Synthesis Therefore, its important function is to guide and participate in the syntheses of proteins. Without nucleic protein. Each children take parents? acid there would be no fvf HY do after their known proteins composed 20 dif- Iong years research, scientists of the is of W After of ferent kinds of amino acids, whose arrangement finaily found the secret: It is the result of the rvithin the protein is coded the message interactions between proteins nucleic acids. by and within the acid. which act as fundamental hereditarv material in nucleic living organisms. Nucleic acids also have many other func- tions. Nucleic acid. a chemical substance, is a mac- romolecule existing in all Iiving organisms. It The work of synthesizing nucleic acids start- was named nucleic acid because this acidic ed at the end of the 1950s. At present, scientists molecule rvas first found in cell nuclei. Nucleic from many countries, including the United acids can be classified into ribonucleic acid States, Japan, West Germany, the Soviet Union (RNA) and deoxyribonucleic acid (DNA) accord- and Czechoslovakia, are engaged in this field of ing to their chemical composition. Each is com- research. posed of as teu' as sevet'al dozen or as many as yeast tens ol thousands of small molecules nucleo- The alanine T-RNA successfully syn- tides cor-alentlv linked together to form- polynu- thesized by the Chinese scientists is one kind of cleotide chains *'hich Iook like twisted neck- ribonucleic acid. The synthesis of nucleic acid laces. The nuclerc acid content in a li."'ing or- is far more difficult than the synthesis of pro- Banism is ver1' Iorr'. The nucleic acids of tein, and the synthesis of RNA is much more 20,000,000 million eggs are only ot the weight difficult than the synthesis of DNA. Scientists of one egB. from most of the countries mentioned above are working on DNA synthesis. The main RNA syn- DNA is the genetic material of lit,ing thesis work is being pursued in China, Japan, organisms. The biological function of DNA is Britain, Canada, the Netherlands arrd Poland. to store the genetic information of an organism and pass the information to the later generations The purpose of nucleic acid synthesis is to through reproduction. study the relationship between the structure and function of nucleic acids and their role in bio- RNA is responsible for transferring the ge- logical processes, thus benefiting mankind with netic information from DNA to proteins. increased knowledge of life sciences.

April 5, 1982 19 nucleic acid l,aboratory. For many years he has led a group of scientists engaged in nucleic acid research and has made ;,.L; ' tl important contributions in the studies of en- * zymes in nucleic acid tl ,- .f ;, tl metabolism and the pri- mary str,ucture of T- RNA. Qiu Musui, research

Prolessor Wang Debao explaining the process of synthesizing ture. time and amount yeast alanine T-RNA. of enzymes for the syn- thesis of a dodeca- a research fellow of the Shanghai Institute of nucleotide in the 3' half molecule. Their work Biochemistry under the Chinese Academy ol helped speed up the synthesis of the bigger Sciences. In 1948 and 1949 he studied at Wash- oligonueleotide fragments. ington Un_iversity. St. Louis. in the United States and did research under Pr.ofessors Carl The hall molecule of 41 nucleotides was and Gerty Cori, Nobel prize winners in 194?. completed on the evening of December 27. 1979 Seven of his papers were published in the US and the other half molecule of 35 nucleotides journal Methods of Enzymology. He returned in September 1981. providing the conditions lor to China in 1955 and estabiished China's first final synthesis. T--r

Oetailed Rules and Regulations lor the lmplementation ol The lncome Tar law ol the People's Republic ol China Goncerning Foreign Enterprises

(Approved by the State Council on February 17, 1982, and plomulgated ' by the Ministry of Finance on February 21. 1982)

Follou,tng is an unof licial translation of the De- agents established in the Chinese territory by tailed Rules untl Regulations for the Implementa- foreign e'ntelprises and engaged in pl'oduction and tion of the lncome 'l'ar Laus of the People's Repub- business opelations Lic ol China Concern'ing Foreign Enterprises. The lau; utas published in our issae .lVo. 52, 1981. Ed. Tlte organizations and piaces mentioncd in the - preceding paragraph mainly include nlanagetnent offices, branches. representative offices. factories Article I and places where natural resources are exploited and where contracted projects of building. rnstalla- The Detailed Rules and Regulations are for- tion, assembly and exploration are operated. mulated in accordance with the provisions of Articls 18 of the Income Tax Law of the People's Republic of China Concelning Foreign Enterprises (herein- Article 3 after called Tax Law for short) ForeigD enterprises and Chinese enterprises joint Article 2 engaged in any co-ope|ative production or business operation should. unless separate provi- "Establishments-' mentioned in Article I of the sions are stipulated, each pay their income taxes Tax Law' refel' to cuganizatiorrs. places or business respectivelv

20 Beijing Reoieu,, No. 14 Article 4 finished and in process of production at the end of the year "Income derived from production and business" product: mentioned in Article I of the Tax Law refers to c. Cost of the sales of the Cost of product year -+- product income from the production and business opera- the of the inventory of the at the beginning of the year inventory of the tions by foreign enterprises in industry, mining, product year - communications, transportation. agriculture, fores- at the end of the try, animal husbandry, fisheries, poultry farming, d. Net sales of the product : Gross sales of the commerce, service and other trades. product - (sales return + sales allowance) Income from other sources as mentioned in e. Profit from sales of the product: Net sales Alticle I of the Tax Lau, corrers dividends. inter- of the product tax on the sales of the product est, income irom lease or sale of property, income cost of the sales- of the product (selling expenses- trom transfer of patents, technical know-how, trade -r overhead expenses) - mark interests, ol copyright and other non-business rncome f. Taxable Incoms : Profit from sales of the product * profit from other operations * non-busi- ness income non-business expenditure Article 5 - 2. Commetce: The taxable income for assessing the Ioeal in- come tax as mentioned in Article 4 of the Tax Law a. Net sales : Gross sales _ (sales return + is as same as the taxable income mentioned in sales allowance) Article 3 of the Tax Law, i.e., it is calculated ac- : cording formulas given g b. Cost of sales Inventory of merchandise to the in Article of the year the Detailecl Rules and Regulations. at the beginning of the + [purchases of year- (purc\ase retulned + purchase discount) + purchase expensesl inventory of merchandise at Article 6 the end of the year-

Enterprises engaged in small-scaled production c. Profit of sales : Net sales cost of sales (selling - * overhead and enterprises of low profits, as mentioned in - tax on sales - expenses paragraph 2 of Article 4 of the Tax Larv, refer to expenses) foreign enterprises with an annual income less than : profit sales + profit one million RMB yuan. d. Taxable income of from other operations I non-business income non-business expenditure - Article 7 3. Service trades: Foreign enterprises scheduled to operate in lor,r' a. Net business income : Gross business in- profit occupations, as mentioned in Article 5 of the come on business +- operating expenses + Larv, include thos'e low-profit enterprises en- Tax overhead-(tax expenses) gaged in exploiting coal mineral resources in deep weIls. b. Taxable income: Net business income + non-business income - non-business expenditure Article 8 4. Other trades: The tax 1'ear for foreign enterprises starts from For other trades, refer to the above-mentioned Januarl' I and ends on December 3l on the Gre- tormulas for calculation. gorian Calendar

Where a foreign enterprise finds it difficult to Article 10 compute its incorne of the tax year as stipulated in the preceding paragraph. it may apply to the Iocal counted as tax authorities for applor.'al to use its own 12- The foilowing items shall not be month fiscal year for lax computation and payment. cost, expense or Ioss in calculating the taxable in- come: l. Expenditure on the purchase or construc- Article g tion of machinery, equipment. building facilities and other fixed assets; The taxable income shall be calculated in ac- cordance with the follorving formulas: 2. Expenditur'e on the purchase of intangible assets: I. Industry: 3. Interest on equity capital; a. Production costs of the year : Direct ma- terials used up in production of the year+direct 4. Income tax payment and local income tax \,,'ages + manufacturing expenses payment; b. Cost of the product of the year: Production 5. Penalty for illegal opel'ations and losses in costs of the year + inventory of products semi- the form of confiscated property; finished and in process of production at the begin- ning of the year - inventory of pl'oducts semi- 6. Overdue tax pal'ment and tax penalt;r; April 5, 1982 21 7. Losses from windstorms, floods and fire The fixed assets cover houses, buildings, machinery covered by insurance indemnity; and other mechanical apparatuses, means of trans- port and other equipment for the purpose of produc- B. Donations and contributions other than tion or business operations with useful life of more those for public welfare and relief purposes in than one year. But articles with a per-unit value China; of Iess than 500 RMB yuan and a shorter useful life equipment production or Royalties paid that are not main for L to the head offices; operation, can be itemized as expenses according to 10. Other expenses that are not relevant to pro- the actual quantity in use. duction and business operation. Article 15 Article 11 Fixed assets shall be assessed according to the Reasonable overhead expenses that are rele- original value. vant to production and operation paid by a foreign counted an investment by enterprise to its head office and expenses For fixed assets as actual enterprises engag- paid to its head office for services directly provided foreign enterprises and Chinese may ed in co-operative production and business opera- be listed as expenses on the condition that the price the said expenses are backed certificates and tion, the original value shall be the of up by participants at the time vouchers from the head office, together with a assets agreed upon by all financial report signed by a chartered public ac- of co-operation. countant, and examined and approved by the local purchased value tax authorities. For fixed assets, the original shall be the purchase price plus freight, installa- Where a foreign enterprise is engaged in co- tion expenses and other related expenses incurred operative production and joint business operation beforb they are put into use. with a Chinese enterprise and an agreement has been reached and included in the signed contract For self-made and self-built fixed assets, the for the sharing of overhead expenses of the head original value shall be the actual expenditures in- office, such payments may be Iisted as expenses curred in the course of manufacture or construction. in accordance with the confirmed method in the For self-owned and used fixed assets that are contract after being examined and ratified by the shipped from abroad, the documents certifying authorities. in local tax their original value and the number of years in use, together with reference data on their market price, Article 12 shall be plesented and their actual value shall be qualitl'. For assets n'ith- permitted reassessed according to the Foreign enterprises are to list as ex- out certifying documents, the value shall be as- penses the interest payments Ioans reasonable on at sessed by the enterprise and submitted to the Iocal rates on the condition that the loans and interest examination and approval in payments are backed tax authorities fol up by certifying documents accordance rvith the quality of the assets. and, after being examined by the local tax authori- ties, ars considered as being of normal terms. Article 16 Article 13 Depreciation of fixed assets shall be calculated Reasonable entertainment expenses paid by starting from the month when the assets are put foreign enterprises that are relevant to production into use. Depreciation shall no Ionger be calculated and business operation shall be backed up by re- starting from the month following that in which the liable records or vouchers and documents, and then fixed assets cease to be used. may be listed as expenses within the following exploiting offshore limits respectively: For enterprises engaged in petroleum resources, all investments at the stage of 1. For enterprises with annual net sales Iess development shall be counted as capital expendi- than 15 million RMB yuan; the reasonable enter- ture with the oil (gas) field as a unit, and deprecia- tainment expenses shall not be in excess of 3o/q1 of tion shall be calculated starting from the month the net sales; for those with annual net sales more when the oil (gas) field begins to go into ploduc- than 15 million RMB yuan, the expenses for that tion for commercial purposes. portion above the Iimit shall not exceed 10/11, of the said portion. Article 17 2. For enterprises with annual total business depreciation on fixed assets, the income less than 5 million RMB yuan, the reasona- In calculating residual value shall be assessed first and deducted ble entertainment expenses shall not be excess of in from the original value, the principle being making 100/qp of the total business income; for those with residual value about 10 per cent of the original annual total business income more than 5 million the RMB yuan, the expenses for that portion above the value; those assets to retain a Iower or no residual value shall be submitted for approval to the local liinit shaU not exceed 30/11y of the said portion. tax authorities. If the depreciation is calculated in 'Article accordance with a composite life method, residual 14 value may not be retained. Depreciation of fixed assets of foreign enter- Depreciation on fixed assets shall generally be prises in use shall be calculated on an annual basis. computed in average under the straight-line method.

22 Beijing Reoieto, No. 74 Article 18 the agreements or contracts from the month they come into use. The depreciation period for various kinds of The intangible assets mentioned in the pre- fixed assets is set as follows: ceding two paragraphs that are alienated to or l. The minimum depreciation period for houses counted as investment by the foreign enterprises and buildings is 20 years; with the provision of time limit for use, shall be assessed and amortized according to the time limit; 2. Ttre minimum depreciation period for trains, those without such provision shall be assessed and ships, machines and equipment and other appara- amortized in a period not less than l0 years. tuses for the purpose of production is 10 years; 3. The minimum depreciation period for elec- Article 22 tronic equipment, means of transport other than trains and ships, as r,r'ell as appliances, tools and Expenses arising period prepara- production during the of furniture relevant to and operation is tion for a foreign enterprise shall be amortized 5 years. after it goes into production or business in a period For cases u'here the depreciation on fixed as- not less than 5 years, sets of foreign enterprises, owing to special reasons, Reasonable exploration expenses incurred by need to be accelerated or to be computed under foreign enterprises engaged in exploiting offshore modified methods, applications may be submitted petroleum resources may be amortized from the authorities examination and to the local tax for revenues derived from the oil (or gas) field that has then relayed level by level to the Ministry of Fi- gone into production for commercial purposes, but nance for approval. the time limit of such amortization shall not be Depreciation of various kinds of fixed assets re- less than one year. sulting from the investments of enterprises engag- ed in exploiting offshore petroleum resources, dur- Article 28 ing and after the stage of development, may be accordance calculated in with a composite life Inventory merchandise, prod- The depreciation period less of raw materials, method. shall not be ucts process production, prod- than 6 years. in of semi-finished ucts, finished products and by-products shall be For enterprises engaged in exploiting coal valued according to the cost price. For the method mineral resources, the provisions of the preceding of computation, the enterprises may choose one out palagraph may also be applied. of the following: first-in first-out, shifting average and weighted average. In case a change in the method of computation is necessary, it shall be Article 19 submitted to ths Iocal tax autholities for approval. Expenditures arising from enlargement, replace- ment, refitment and technibal innovation and re- Article 24 sulting in the increase of value of fixed assets in use, should be regarded as capital expenditure, and If a foreign enterprise cannot provide accurate shall not be listed as expenses. evidence of costs and expenses and carrnot correctly w'ork out its taxable income, the local tax authori- For the fixed assets remaining in use after the ties shall appraise and determine its profit rate full depreciation period, no depreciation shall be with reference to the profit level of other enter- allou'eC prises of the same or similar trade, and then calculate its taxable income on the basis of its net sales or its gross business income. Article 20 The taxable income of a fol'eign enterprise en- The balance of the proceeds from the aliena- gaged in contracted projects for exploring and ex- tion or disposal of fixed assets at the current price, ploiting offshore petroleum resources shall be cal- after the net unamortized value or the residual culated according to the profit rate appraised and value of the assets is deducted, shall be entered determined in relation to its gross income of the into the profit and loss account for the current contract. year. Article 25 Article 21 For foreign air and ocean shipping enterprises For intangible assets such as patents, technical engaged in international transport business, the know-how, trade mark intereits, copyright, right to taxable income shall be 5% of the gloss income use sites and other franchise that are alienated to from transport services for passengers and cargoes foreign enterprises, the payment made by the en- loaded within the Chinese territor),. terprises at reasonable prices shall be amortizeQ/ from the month they come into use. Article 26 Intangible assets mentioned in the preceding Foreign enterprises engaged in co-operative pro- paragraph and counted as the investment by duction with Chinese enterprises on the basis of foreign and Chinese enterprises in co-operative pro- proration of products are considered as receiving duction and business operation, may be amortized income when such products are distributed, and on the basis of the assessed value as provided in the amount of their income shall be computed ac-

April 5, 1982 ,2 cording to the prices at which the products are vestment Bank of China. and the International sold to the third party or with reference to the Trust and Investment Corporation which has been prevailing market prices of the products. authorized by the State Council to be engaged in business of foreign exchange deposits, loans and Foreign enterprises engaged in co-operative ex- credits with foreign clients. ploitation of offshore petroleum resources are con- sidered as receiving income when they receive their share of crude oil, and the amount of their income Article 31 shall be computed according to the prices which are regularly adjusted with reference to the inter- "Income derived from interest on deposits," as national market price of crude oil of equal quality. mentioned in paragraph 4 of Article 11 of the Tax Law shall not include the interest on deposits of foreign banks in China's state banks at a rate of Article 27 interest lower than that prevailing in the interna- tional financial market. Inco.me from interest on The income of dividends, interest, rentals, deposits at a rate lower than that prevailing in the royalties and other sources in China as mentioned international financial market shall be exempted in Article 11 of the Tax Law is explained as fol- from income tax. lows: "Dividends" refer to the dividends or the share Article 32 of profits obtained from enterprises in China. Pa-vments of income, as mentioned in Article "Interest" refers to interest earned from de- ll of the Tax Law, .include payments in cash, pay- posits and loans, interest on various bonds purchas- ments b]' remittance, payments through transfer ac< ed and interest earned from payments made for counts. as u'el1 as payments made in marketable others and from deferred payments in China. securities or in kind s'hich are rendered into equil'- "Rentals" refer to rentals on properties rented alent amounts of mone\- to persons in China. "Royalties" refer to income obtained fiom the Article 33 provision of various patents, technical know-how, copyright and trade mark interests for use in Income tax to be paid provisionally in quarter- China. ly instalments as stipulated in Article 7 of the Tax Law may be paid according to the actual quarter- 'Incomes from other sources" refer to incomes Iy profit, or it may be paid on one-fourth of the specified to be taxable by the Ministry of Finance taxable income calculated on the basis of the plan- other than those mentioned above. ned profit for the current year or the actual income in the preceding year. Article 28 Article 34

The income from dividends, interest, rentals. For foreign enterprises which have operated for ro;'alties and other sources in China as mentioned year', income tax sha.ll be assessed preceding less than a the in the article, with the exception of those on the actual income earned in the operation peliod for which separate provisions are stipulated, shall at the applicable tax rate prescribed by the Tax be assessed on its full amount, and the tax to be Law paicl shall be withheld by the paying unit from each payment Article 35

Article 29 When foreign enterprises go into operation ol close down, such enterprises shall, u'ithin 30 days "International finance organizations" as men- after starting operation or before closing dol','n. go tioned in Article 11 of the Tax Law refer to the to the local tax authorities for the relevant tax International Monetary Fund. the International registration according to Article l0 of the Tax Law Bank for Reconstruction and Development, the In- ternational Development Association, the Interna- Article 36 tional Fund for Agricultural Development and other finance organizations of the United Nations. Foreign enterprises shall file thei| income tax The ''preterential inter€st rate" mentioned returns and final accounting statements wittr the period therein refers to a rate that is at least 1012, less local tax authorities within the prescribed than the general prevailing interest rate in the irrespective of making profit or loss in the tax yeal' international financial market- and. unless otherwise stipulated, shall send in at [he same time the audit certiticate of the chartered public accountants registered in the People's Re- Article 30 public of China

''China's state banks" mentioned in Article 1l Article 37 of the Tax Law inclrrde the People's Bank of China. the Bank of China, the Agricultural Bank of China, In case of failure to submit the tax returns the People's Construction Bank of China. the In- within the prescribed time limit owing to special

24 Beijing Reuiero, No. 14 circumstanees, the foreign enterprise should submit Article 44 application to the local tax authorities within the said time limit, and the time limit for filing tax Tax authorities may impose a penalty of E,@0 returns and accordingly that for final settlement RMB yuan or less on a foreign enterprise which has may be appropriately extended upon the latter's violated the provisions of paragraph 2 of Article approval. 39 or Article 40 of the Detailed Rules a,nd Regula- tions according to the seriousness of the case. The final day of the time Iimit for tax payment and that for filing tax returns may be extended if Article 4E it falls upon an official holiday. "Evade or refuse to pay income tax," as men- tioned in paragraph 3 of Article 15 of the Tax l-aw, Article BE shall be interpreted as follows:

The revenue and expenditure of foreign enter- "Evade to pay income tax" refers to the tax- prises shall in principle be accounted on accrual payer's deliberate violation of the regulations of basis. Ail accounting records shall be accurate and the Tax Law by forging, altering or destroying ac- complete, and shall have lawful vouchers as the count books, papers or vouchers for accounting en- basis for entries. tries; falsifying and overstating costs and expenses; concealing or u,nderstating the amount of taxable income or gross income; avoiding taxes or defraud- Article 39 ing to take back the paid taxes; or by other illegal activities. Accounting vouchers, books, statements and reports adopted by foreign enterprises shall "Refuse to pay income tax" refers to the tax- be made payer's in the Chinese language or in both Chinese and defiance to the regulations of the Tax I-aw foreign languages. by refusing to tile tax returns and present certifi- cates, papers and vouchers for tax purposes; refus- Accounting vouchers, books, statements and ing the investigation of the financial, accounting reports shall be kept for at least lE years. and tax affairs conducted by tax authoritie's; refus- ing to pay taxes and penalties according to the Tax Law; or by other illegal activities. Article 40 Article 46 Forms of sales invoices and business receipts shall tre submitted for approval to the local tax Tax authorities shall serve notices on relevant authorities before they are used. parties for cases involving penalty in accordance with the relevant provisions of the Tax Law and the Detailed Rules and Regulations. Article 4l Article 47 Officials sent by tax authorities when investi- gating the financial, accounting and tax affairs of a foreign enterprise, shall produce identification When a foreign enterprise applies for recon- cards and undertake to keep secrets. sideration in accordance with the provisions of Ar- ticle 16 of the Tax Law, the tax authorities con- cerned are required to make decisions within three Article 42 months after the application is received.

As foreign enterprises with income in foreign Article 48 currencies pay income tax in quarterly instalments, the income shall be assessed according to the ex- tax returns and tax payment certifi- change rate quoted Income by the State General Adminis- cates for foreign enterprises are to be printed by tration of Exchange Control on the day when the the Ministry of tax payment the General Taxation Bureau of certificates are made out and shall be Finance of the People's Republic of China. taxed in Renminbi; when the final setflement is made after the end of the tax year, excess payments of the tax shall be refunded or deficiencies made Article 49 up in Rennlinbi accordlng to the exchange rate quoted by the State General Administration of The right of interpreting the provisions of the Exchange Control on the last day of the tax year. Detailed Rules and Regulations resides in the Min- istry of Finance of the People's Republic of China. Article 48 Article 50 Tax authorities may impose a penalty of b,000 RMB yuan or less on a foreign enterprise which has The Detailed Rules and Regulations come into violated the provisions of Article B, paragraph I force on the same date as the Income Tax Law of of Article 9, Article 10 or Article 12 of the Tax Law the People's Republic of China Concerning Foreign according to the seriousness of the case. Enterprises. tr

April 5, 1982 25 fli-lu\f r i-tI [;F PRi55 . r 6 * o , o e . o . o . o c n . + ' rt s t c c t ' t t

..r\,. rl,1 .\.1 I li;rL'i\ food will shrink while that for clothing and articles for daily use will expand. People will China's Consumption Leoel also spend more on cultural ac- tivities. Some people regard the mHE level of consumption in vidual and social consumption I "high consumption" model they a country is conditioned by rate of 250 yuan per capita, observe in a number of capitalist three factors. China needs to add 3,000 million countries as an example for yuan annually First, it is restricted by ac- to its consump- China to follow. Actually this cumulation. The Marxist theory tion fund if there are 12 million simply does not fit China's ac- new births every year. of reproduction holds that ac- tual conditions. curriulation helps social progress Chinals national economy, We should remain industrious and is the major source for now on the right track again, and thrifty even if our private expanded reproduction. China will help the people gradually incomes and consurhption poten- should on no account follow the increase their incomes and their tial rise considerably in the road of low accumulation and consumption. This will inevi- future. high consumption. tably result in changes in the consumption Secondly, it is circrrmscribed mix, whereby the "Shijie Jingji Daobao" proportion - by the supply of consumer goods. of income spent on (W orld Economic H erald) Consumption should be co- ordinatqd with production growth; it can never transcend PEOPLE the material conditions provided by the development of produc- tion. Drawnu)ork Tour in Australia Thirdly, it is limited by a so URING a demonstration ciety's demand which has the tour repeated the same procedure young ability to pay. At present, this in Australia, two time and again. Chinese women captivated their demand is mainly determined by Onlookers did not find this audiences with dazzling drawn- the volume of wages and the demonstration convincing work skills. amount of farm produce the enough, and demanded to see state purchases. China will Chinese drawnwork products the women's hands. The Chi- adhere to the policy "Iow wages, are very popular and sell well nese women obligingly stretched more jobs" for a considerably in Australia. However, some their palms to let everyone have long time to come. Given such people did not believe that the a good look. a limited purchasing power, crafts were really hand-made. high consumption is out of the Their next feat was putting So Australian audiences paid question. a thread thinner than a hair rapt attention when Chen Qun- through the tiny eye of an em- From l'Liao Wa:ng" shan and Cai Saihua, two na- - broidery needle. They first let (Obsensation Post) tives from the Chaoan and the audience have a try. On- Shantou hefectures, Guang- lookers vied for a chance to dong kovince, exhibited their thread the minute needle, but consumption skills. Within minuteg, as if by D)EGARDING none succeeded. Then Cai Sai- I-t patterns, it is necessary to magic, a snow-white crocheted hua did it a dozen times, never drqpr on the advanced experi- cushion colourful flower, or a missing once, and demonstrated ences of foreign countries, but leapt out of the two artists' how she uses the needle in em- only in the light of China's own hands. broidery. conditions. Some suspected that special China is still a developing so- contraptions had been affixed Convinced at long last, the cialist country. Its large popu- to the women's hands. Smiling, audience lavished praise on the lation consumes huge amounts Chen and Cai slowed down the two women. "These Chinese of goods. At an annual indi- movements of their fingers and girls are so clever in using their

26 Beijing Reoieus, No, 14 51'A"j',i51-iCS China's Daily Economie Actiaities How many products do China's 1,000 million people produce and consume every day? How busy is China's day-to-day service industry? The following elata, based on 1990 figures, may provide some answers. Daily Production: Industrial and Agri- cultural Gross Pro- duction 1,930 million yuan Agricultural Gross Production 580 million yuan Industrial Gross Pro- duction 1,350 million yuan National Income 1,fr)0 million yuan Financial Revenue 290 million yuan Standard Energy l.?5 million tons products recenlly 1.70 million tons A larm and sideline fair, Coal opened Xiamen, Fujian Province. Electric Power 800 million kwh in Crude Oil 290,0OO tons Steel 100,000 tons Daily Consumption: Death 16,fi)0 persons (11 per min.) Residents' Consump- Weddings 2O,O0O couples tion 600 million yuan 494 Per-Capita Divorce couples Consumption 0.6 yuan Foodgrain 600,000 tons Daily Economic Activities in 220 Cities: Pork 30,0U) tons Vegetable Oil 6,190 tons Industrial Gross Pro- Sugar 10,000 tons duction 1,00O million yuan Cloth for Clothes 27 million metres Retail Consumer Bikes 32,000 bikes Goods 200 million yuan Sewing Machines 18,000 sets Foodgrain Supply 65,00O tons Watches 69,00O watches Vegetable Supply 38,165 tons TV Sets 10,000 sets Pork Supply 6,500 tons Daily Service: Fresh Eggs Supply 1,060 tons person-time Tap Water Con- Passenger Transport 9.36 million sumption for Daily 9.29 million tons Of Which: Life Railway Passeng- for pel'son-time Liquidized Gas ers 2.5 million Livelihood 800 tons Housing Workers for Household Gas 2.90 million cubic and Staff 230,0OO square metres metres Books 12.58 million copies City Traffic Volume 49.34 million person- Magazines 3.O8 million copies (Bus, Trolley) time Neu'spapers 38.i17 million copies Sewage 53.45 million tons Post 9.08 million envelopes Sewage From House- .100,00O Telegraphs copies holds 10.38 million tons Change of Population: Sewage Treated 700,000 tons Garbage 86.000 25,000 persons tons Urban Employment Excretion 45,000 New Birth 48,000 babies (33 per tons min.) -"Wen Zhai Bao" (Weekly Digest) fingers. It's just unbelievable," performance," said an old don't you open a drawnwork someone exclaimed. woman, holding fast to Chen school here to pass on your skill Qunshan's hands. "The Chinese to us?" "We are so proud to meet sisters have added lustre to the you, after we watched your world women's skills. Why Riboo" -"Nanfang April 5, 1982 27 ulfl#Lrr=,,,'" grasses. Those who harmed the seldom seen in zoos. Their wild geese were punished. big beaks are used as a tool Bird Protection in nesting and a l&'eapon New China has established 85 to f end off enemies. It nests natural preserves, 8 birds pro- in tree hollows. As soon Beginning this year all local tection areas with 360,000 governments in China will as the female has entered the hectares of land and delineated hollow to incubate the eggs, the designate one week during April areas where bird hunting is male seals the hollow with mud, or early May as "bird protection restricted. Resides, the Chinese leaving only a vertical slit which week." Government has promulgated allows the female's beak out far decrees to protect birds and enough to accept the food pro- In ancient China some meas- established institutes to study ures were promulgated to pro- vided by the male. This unusual and protect them. nesting method protects the tect birds. In the Han Dynasty, female and her young. Emperor Xuandi (73-48 B.C.) With 1.183 species of birds. forbade killing birds or robbing China is the natural habitat of Some areas of China, like the nests in spring and summer. more species of birds than an1' bird island in Qinghai Lake with The ecological value of certain other countr5'. has China 56 of over one hundred thousand birds to man was recognized as the 260 species of Golli and birds living on one square kilo- early as the Jin Dynasty (265- 9 of the 15 species of cranes. metre. are bird havens u'ith 420 A.D.). One book of Jin the Among the Galli are the numerous species living together Dynasty recorded in Chinese that monals and brown- in harmony. On the Dongdao Shangyu geese pheasants County, wild eared which are na- Island which is one of the Xisha were protected they because tive only to China. Further, Islands, 40 species of birds have were viewed as valuable to the most of the world's rare red- been spotted, including eastern peasants in controlling the wild crowned cranes and black- golden plovers, red-footed collared cranes inhabit China. boobies and silver-eyes. Among China's rare birds is "Swan lake" on the Bayan- the black-collared crane which bulak grassland in Xinjiang summer:s in the lakes of the Uygur Autonomous Region has Qinghai-Tibet Plateau during been recently proclaimed the the warm weather. fhis white Yuleidusi Swan Natural Pre- bird with its black collar mi- serve by the government. This grates south to pass the winter area is an important breeding in Yunnan Prevince and in ground for swans. Another western Guizhou Province. bird-rich area is Xiaotan Lake, The red-

28 Beijing Reoieus, No. 14 been sighted for a decade. This Hot Springs Used in Gang Mu (Compendium of discovery is of international in- Ancient China Materia Medica) that the Lu- terest and the prevention of the shan hot spring in Jiangxi extinction of the crested ibises Province was valuable in treat- is a significant undertaking. As early as 700 B.C., the Chi- ing scabies, syphilis and some people the nese discovered other diseases. existence of subterranean hot I water, however the earliest The earliest study of chemical written record is the Shan Hai, components of hot spring ap- Jing (The Mountains and the pears in Ode to the East Capita!, Relrigerotion Geothermol Seas), a geological book of the written by Zhang Heng Warring States Period (476-221 (78-139 A.D.), an astronomer of China's first refrigeration B.C.). Han Dynasty. Later, in the plant using underground hot Southern Song (1127-1279 A.D.), water went into operation re- In the 6th century, the ancient Hu Zi, a recluse, divided hot cently in Fuzhou, capital of Fu- geologist Li Daoyuan described springs according to their jian Province. the distribution and utilization chemical composition into five This refrigeration plant is one of hot springs in north China in kinds: sulphur springs, cinnabar component of a research project Shui Jing Zhu (Notes of Water springs, vitriol springs, realgar on the multipurpose utilization Resources). springs and arsenic springs. of subterranean heat now under way in China. In recent years, China's first hot spring bath In the Ming Dynasty, the geologist Hongzu (1586-1641) geothermal energy has been ex- house was built during the reign Xu reported how people in south tensively used in China for in- of Shi Huang (259-210 B.C.) Qin China dug hot spring pools to dustrial, agricultural, medicinal at the Lishan spring, Shaanxi extract sulphur and produce and sports purposes. Today, Province. This spa was main- nitre. China is exploiting nearly 2,000 tained and expanded by succes- hot springs located in Yunnan, sive dynasties and is today The Chinese people began to Fujian and Guangdong Prov- known as the Huaqing Pool. utilize hot spring for irrigation inces, Tibet Autonomous Re- around the third century. It is gion, Beijing and Tianjin. Medicinal uses of hot spring recorded that the seedlings did are recorded in numerous an- grow because Fuzhou has been designated not well the ir- cient Chinese books. Shui Jing rigating water was too cold. by the state as a key area for Zhu re rls, "If one drinks its the utilization of geothermal re- "When warm water is used in- water three times a day, all his sources. With its underground stead, people get three harvests diseases will be cured within 40 a year." By the fifth century, hot water field of five kilome- days." In Ben Cao Shi Yi tres by one kilometre, Euzhou hot spring water was also used (Complemental Catalogue of for fish raising. is the richest area in geothermal Medicinal Herbs) published in resources Fujian Province. in Tang Dynasty (618-907 A.D.), it Using hot springs as a sup- Its hot \\'ater at a depth of 200 is written that hot water con- plementary source of heat is metres is hotter than 90 degrees taining sulphur can cure various recorded Hua Yang Guo Zhi, centigrade. in types of scabies and sores and a fourth-century book. Its uti- In the geothermal refrigera- those who suffer from stubborn Iization in processing silkworm tion plant the hot water is used skin and muscle diseases includ- cocoon and silk is described in to heat an ammonia solution. ing arthritis and paralysis of Ode to the Capital Luogang, an The purified liquid ammonia is hands or feet, "should bathe in article written in the third then gasified under reduced the hot spring water until they century. pressure to absorb heat, thus are exhausted. And, as a sup Dynasty book of the providing refrigeration to as plementary treatment, herbs A Qing that low as 20 degrees below zero and nourishment are neces- lgth century recorded centigrade. After heating, the sary. ." This treatment is the Pingshan ltot spring underground hot water still still used by modern medicine. was used in paper pro- warm stands at B0 degrees centigrade. duction. "The water is so Li Shizhen (1518-1593), the that it does not freeze in bitter Ths plant produces six tons well-known Ming Dynasty phar- winter. Residents there use it of ice per day. macologist, wrote in Ben Cao in making paper."

April 5, 1982 29 SPORTS waty-Fajrin and R. Damayanti 15:8 and 15:5 and captured the .IOURNAL OF INTERNATIONAL All-Englond Open title of the women's doubles STUDIES event. In the semi-finals, they Bod minton C ho mpionships (A quorterly in Chinese) dethroned J. P. Perry and J. A. Three Chinese women won Webster of England 15:12 and Contents of lssue No. 2, 1982 (pub- top honours in the 1982 All- 15:10. lished on April l): England Open Badminton Where Lies the Crux of Sino-US Morten Frost won the men's Relotions Speciol Commen- Championships held from totor of the- "Journol" March 24 to 28 in the Wembley singles Bvent in a three-set final competition (11:15, 15:2, Peoce Movements in Western Sports Centre of London. Europe Ding Yuonhong Zhang Ailing captured the 15:?) against China's Luan Jin, - who placed second event. On the Revision of the UN Chor- women's singles title, and Lin in the ter: Development ond Problems Razif Sidek and Jalani Sidek, Lin Ying and Wu Dixi, the women's - Sun doubles championship. two brothers from Malaysia. A Look ot the Koreon Question pocketed the men's doubles title Too Bingwei - Zhang Ailing's victory came by defeating the Scottish pair Soviet Russio's Policy Towords with a 2-0 win (11:4 and 11:6) of W. Gilliland and D. Travers Afghoniston in the Lenin Yeors Fong Lionqing over her compatriot Li Lingwei, 8:15, 15:9 and 15:10. England's - who came second in the event. Martin Dew and Gillilan Gilks An Anolysis of the Situotion in Lebonon Guoxing Both women entered the finals won the mixed doubles event -Ji Thg Perspective: knocking op- opponents, US Dollor in by out their by defeating their Recent Development ond Future ponents with 2-0 victories. Li W. Gilliland from Scotland and Trends Xie Yoo - Lingwei combined long drives K. Chapman from England Duolity of the Lome Convention and drop shots with hard (15:10, l4:17 and l5:7). Hu Jie - smashes to force Danish com- A Precis of South-South Co- With participation from the operotion Xu Mei petitor Lene Koppen into a de- - fensive position. Zhang Ailing best badminton players in the Focts ond Figures qualified for the finals by de- world, the All-England Open About the Sociolist lnternotionol feating another Chinese player Badminton Championships has ond Sociol Democrotid Porties been held annually since 1899. ,, Europe Xu Zongshi ond Zheng Yuli. Zhong Jionming- Chinese players competed in the China's Lin Ying and Wu Di- championships for the first Book Reyiew year. xi defeated Indonesia's Vera- time this Some Problems Concerning the Economic Development of Developing Countries-On the World Bonk's "World Develop- ment Report 1981" ond the UNCTAD's "Trode ond Develop- ment Report 1981 " - Zhong Shi'e An Explorotory Survey of Contem- porory US Economy Comment on "Contemporory US- Economy" Authored by the Shonghoi lnsti- tute of lnternotionol Studies ond on "Popers Presented ot Seminor on US Economy" Published by the First Annuol Meeting of the Society of US Economy Yue Vuchong -

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30 Beijing Reuietp, No. 74 Braving the tide, 1022. iltI' P TGIj

Huang Xinbo's Woodcuts

Viciorlous DeoDle, 1963.

Building a cofferdam, 1960.

Denouncing ihe crlme, 1947.

Born in Taishan CountY, Guangdong Province, Huang Xinbo (1916-80) was one of China's first generation of woodcut ar- tists influenced by Lu Xun. He began his woodcut career in 1933 and created more than 600 woodcuts during his life' Huang was Vice-Chairman of the Chinese Artists' Association and Chairman of the Guang- dong Artists' Association.

His works, which are noted for their rigorous lines, strong black and white contrast and simple and vigorous images' express.rich contents and have a literary flavour. CAA C China-USA New Service

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