A CHINESE WEEKLY OF NEWS AND VIEWS

Vol. 30, No. 45 November 9-15, 1987 Zhao's Report at Party Congress A Major Thesis for Building Socialism In the Wuyi Mountains tours are conducted by farmers from the region. A tour guide (middle) tells travellers about the local scenery. Go Xinsheng

Tourists enjoy the unfolding natural beauties afforded by river travel on a bamboo raft. Zheng Zhensun HIGHLIGHTS OF THE WEEK BeijingR^vir

\()\I I- I'j.N- Historic Party Congress Fruitful

CONTENTS • The 13th National Congress of the Communist Party of China closed with the election of a new Central Committee whose members average 55.2 years of age. 3.9 years younger ! NOTES FROM THE EDITORS 4 than the previous committee. The committee elected a new Poliical Bureau and chose Zhao Ziyang as Party general , All impotiaiH Thesis on secretary. Zhao and four other Political Bureau members form j Buiiding Socialism the Political Bureau's Standing Committee (p. 5) EVENTS/TRENDS 5-8 Full text of Zhao Ziyang's work report to the congress is printed in this issue (centrefold). Highlights of his report were I5lh (.'PC Congress Closes given in our previous issue. Planning lo Rule Ou!\. of l!conom\ ("PC Jilecls Neu Leaders General Secretary Talks to Reporters Bi-WeekK Chronicle {Oct. iy-No\ 1) • In a meeting with Chinese and foreign correspondents INTERNATIONAL 9-11 covering the 13th National Congress of the Chinese l'rance-r~RCi; Vi;,ii .Aims Communist Party, newly elected Party General Secretary Zhao lo Spur West luu'opean Ziyang answers questions on a whole spectrum of issues l.'uity including his intention to resign from the premiership and "lhailand-Pakisian: Leaders China's attitude towards Soviet reforms (p. 12). Share Stand on Invasions Japan: l»utting I'rofiis Ikfore A Major Thesis on Building Socialism

• The thesis that China is in the primary stage of socialism is comprehensively and thoroughly expounded in Zhao's report , Oenerat Secretary Zhao to the I 3th Party Congress. Worked out on the basis of China's Meets the Press 12 specific conditions, this thesis helps unify the whole Party's understanding of China's conditions and enhance the political A New Generation of Chinese consciousness of its members in implementing the Party's Leaders 16 political line (p. 4). I Documents: Advance Along the Road of Socialism With Socialist A New Generation of Cliinese Leaders Characteristics (Centrefold) BOOKS 19 CULTURE/SCIENCE 20-22 • To keep the Party's cause in vigorous hands, many younger people were elected to the J^arty's leadership at central and local ; CHINA CALENDAR 23 levels. This interview, conducted at the 13th Party Congress, covers the work and achievements of Li Ruihuan, mayor of • COVER: Deng Xiaoping and Zhao Tianjin and member of the newly elected Political Bureau, and three others who have proved their political and moral WangXinqing integrity, professional competence and strong sense of responsibility (p. 16).

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An Important Thesis on Building Socialism by Dai Yannian

he thesis of China being in the industrialization economic pat• courtyards and other "great leap T primary stage of socialism is tern has not changed fundament• forward" fiascos. It rushed to set comprehensively and thoroughly ally. Rural labour accounts for up the people's communes, raise expounded in the report delivered over 60 percent of all the nation's the degree of public ownership to the 13th National Congress of work force. The level of the rural and practise absolute egalitarian- -the Communist Party of China economy's commercialization and ism. Many correct policies faci• (CPC). It was worked out on the socialization is very low, the rate litating economic development basis of China's specific con• of commodity grain is less than 30 and the improvement of people's ditions. The report states that percent. Although some of lives were cast aside as "capitalist" China is not in the position China's sophisticated sciences are and "revisionist." These were envisaged by the founders of at the world level, in general its replaced by policies which were Marxisiii. They saw socialism sciences and technologies lag far seemingly very revolutionary but being built on the basis of highly behind those of the developed were actually jeopardizing the developed capitalism. Neither is countries. A quarter of China's revolution. These mistakes cul• China exactty comparable with population is illiterate or semi- minated in the launching of the other socialist countries. literate. Obviously, China can• "cultural revolution." China used to be a semi-feudal, not in one move achieve the level An important cause of these semi-colonial country. Through of productivity the developed "left" mistakes was a lack of the new-democratic revolution led countries attained in several proper understanding of the by the Communist Party, China centuries. It is estimated that implications of China's being so moved directly into socialism China will reach the level of a poor and backward, that a very skipping the stage of fully moderately developed country in long primary stage of socialism developed capitalism. China has a the middle of next century. The was required. poor indiislrial foundation, back• primary stage of socialism will After the Third Plenary Session ward productive forces, and an then cover 100 years from the mid- of the 1,1th Central Committee in underdeveloped commodity 1950s when China basically 1978, the CPC began to correct economy. This situation dictates accomplished the socialist trans• these "left" mistakes. The thesis that having entered socialism, formation of the ownership of the that China is in the primary stage China must go through a very long means of production. pf socialism was first set forth in primary stage in which to achieve the CPC Central Committee's The CPC came to the correct industrialization and commer- 1981 Resolution on Certain conclusion that China is still in the ciali/alion, socialization and mod- Questions in the History of Our primary stage of socialism only erni/alion of production which Party Since the Founding of the after it reviewed both the positive People's Republic of China, and the Marxist theory anticipated and negative experiences in reaffirmed in the Central taking place in many countries socialist construction, especially Committee's 1986 Resolution on under caplialism. after drawing the lessons of the Although social productive setbacks caused by "leftist" the Guiding Principles for Build• ibrces have developed remarkably guidelines. ing Socialist Society With an since the founding of the People's Advanced Culture and Ideology. Republic in 1949, they are, to this The two decades after 1957 were Recognition of the fact that day, still very low, especially when marked by the Party's "left" China is in the primary stage of compared with those in the mistakes made in its cause of socialism enables us to grasp the developed countries. China ranks socialism. For example, it did not key to comprehending and solving eighth in the world in terms of take the development of produc• the major issues of China today. uross national product (GNP), but tive forces as the central task, but Thus the political line of building "iOOth for per-capita GNP; China rather it stressed "taking class socialism with Chinese character• ranks first in the world in total struggle as the key link"; in istics and a series of principles and grain output, but its per-capita economic construction, it policies were formulated on the share oi' grain is only 20 percent overlooked the objective law and basis of China's own conditions. that of the United States. China's attempted to catch up and surpass The primary stage theory is large-scale industrial production the developed countries in one widely recognized as promoting has developed, but its pre- stroke by making steel in the the continuity and stability of

4 BfilJING REVIF.W. NOVEMBER 9-15. 1987 m EVENTS/TRENDS

presidium for the preliminary elections to decide the candidates 13th CPC Congress Closes for full and alternate member of the Central Committee and the two commissions. In the prelimi• ie 13th National Congress of specially invited delegates first nary election for the Central Tthe Communist Party of China endorsed a list of 33 scrutineers, Advisory Commission, the num• (CPC) closed on November 1, which was prepared on the basis of ber of names was equal to the with the election by secret ballot of proposals by the delegations and number of actual candidates to be a new Central Committee of 175 with the approval of the congress determined, while in the prelimi• full members and 110 alternate presidium. nary elections for the full and members. The delegates were free either to alternate members of the Central It was the second and final full choose the candidates proposed or Committee and members of the meeting of the congress. The write in their own suggestions. Central Discipline Inspection meeting also adopted a resolution Commission, there were more approving the report made: by The new Central Advisory names than the number of Zhao Ziyang on behalf of the 12th Commission comprises 200 mem• candidates. CPC Central Committee. bers and the new Central In the formal elections for the The first itern on the meeting's Commision for Discipline Inspec• Central Committee and the two agenda was to elect the Central tion 69 members. commissions, the number of Committee, the Central Advisory Starting on October 27, the candidates was equal to the Commission and the Central various delegations spent two number of people to be elected. Commission for Discipline In• days deliberating on the lists of 1 he congress also voted to spection. The 1,959 regular and names prepared by the congress adopt a resolution on the revision

China's current policies. It means Members of the CPC generally development of revolution. This is that the development of the support the Party's current line the cognitive root of right productive forces will be made the and policies, uphold socialism and deviationist mistakes. On the central task, that China must favour reform and opening up, but other hand, to believe that it is reform its ossified structures. It there are also a handful of people possible to jump over the primary also necessitates China's opening who stick to ossified notions or stage of socialism during which up to the outside world, importing negate socialism. the productive forces arc to be advanced foreign science and This is often due to differences highly developed is a Utopian view technology, management exper• in understanding. Some people on this question. This is the major tise and funds. All this is good whose "left" thinking is deeply- cognitive root of "left" mistakes. news for foreign investors. rooted fail to keep pace with In order to boost productivity, reform; some depart from the In elaborating this, the report to ownership will not be unitary in basic tenets of Marxism-Leninism the 13th Party Congress helps this primary stage; public owner• to pursue "emancipation of the unify and raise the whole Party's ship will predominate, individual mind." All this will obstruct the understanding, prevent and and private ownership, Sino- proper implementation of the overcome both "left" and right foreign joint ventures, Sino- Party's political line. interference and enhance the foreign co-operative enterprises The report points out that the political consciousness of its and wholly foreign-owned busi• thesis of the primary stage implies members in implementing the nesses will be allowed to develop. first. China is already a socialist Party's correct line. China will not practise absolute society, and must persevered with egalitarianism in distribution. socialism; and second, China's Theory comes from the summ• Rather it will mainly follow the socialist socielv is still in its ing up of experience and in turn principle of distributing "to each primary stage and it must promotes practice. The 13th Party according to his work." while proceed from this reality and not Congress' expositions on the allowing unearned income. jump over this stage. Under the primary stage of socialism are In this primary stage, China will specific historical conditions of evidence that the Party has had build democracy, socialist culture contemporary China, to refuse to richer experience and become and ethics; it will also oppose the believe that the Chinese people politically more mature. Inspired infiuence of decadent feudalist can take the socialist road without by the spirit of the 13th Party and capitalist ideas and strive to completing the stage of fully Congress, the Chinese Commu• raise the people's scientific and developed capitalism is a mechan• nists and the Chinese people will cultural level. istic view on the question of the stride forward confidently. •

BFLIING RF.VinW, NOVF.MtUiR 9-t5, I'W 7 m EVENTS/TRENDS

•

WANG XINQING Deng Xiaoping, Li Xiannian, Zliao Ziyang and Hu Yaobang (from right) vote at the meeting.

of some articles of the Party after the congress closed, Zhu said tween the Party and the armed Constitution, and resolutions on that Deng Xiaoping, because of forces will also be handled in this approving the work reports of the his prestige and wisdom, will still spirit. The Party should lead the two commissions. play an important role in China's armed forces in the same manner Party and government affairs as it leads the government, he said. Speaking at the close of the although he has left the Central congress, Zhao said the whole Committee. Party should resolutely put into practice the basic line of the Party In response to a question, Zhu Planning to Rule for the primary stage of socialism, said that under the revised Party earnestly implement the reso• Constitution, the secretariat will Only 30% of Economy lutions adopted at the congress, become a working body of the strive to fulfil the tasks laid down Political Bureau and its Standing nly about 30 percent of and lead the Chinese people in Committee. This is to reduce the OChina's economy will remain their continuing advance along the levels of policy-making, he said. In subject to central planning in two road of building socialism with the future, the Political Bureau or three years time, said Premier Chinese characteristics. Standing Committee will make Zhao Ziyang on October 29. According to Zhu Muzhi, the policy decisions on a day-to-day In a meeting in Beijing with spokesman of the congress, the basis in accordance with decisions Arthur Dunkel, director general full and alternate members of the made by the Political Bureau. of the General Agreement on new 13th CPC Central Committee In response to another question, Tariffs and Trade (GATT), Zhao average 55.2 years in age, 3.9 years Zhu said that in accordance with said that nine years ago 100 less than those on the previous the principle of separating the percent of China's economy was committee elected five years ago. Party's functions from those of the centrally planned. Today only 50 Speaking at a press conference government, the relationship be• percent remains within the

BKIJING REVIEW. NOVEMBER 9-15, 1987 Vice-chairmen: Bo Yibo and Song CPC Elects New Leaders Renqiong. Members of the Standing Ct)mmil- The 13th Cenlial Commillee of the Qiao Shi, Jiang Zemin, Li Peng, Li tce of the Commission (listed in Ihe Communist Parly of China held its Tieying, Li Ruihuan. Li Ximing. Yang order of ihc nimiber of strokes in their first plenary session in Beijing on Rudai, Yang Shangkun, Wu Xueqian. surnames): Wang Ping. Wang November 2. Song Ping. Zhao Ziyang. Hu Qili, Hu Shoudao. Wu Xiuquan. Liu Lantao. According to a communique Irom Yaobang, Yao Yilin. and Qin Jivvei. Jiang Hua. Li ^'imang. Li Desheng. the meeting. Zhao Ziyang presided The alternate member of the Yang De/hi. ,Xiao Ke. Yu Qiuli. Song over the session, which was attended Political Bureau: Ding Guangen. Renqiong. Song Shilun. Zhang Jingfu. by 173 members and 106 alternate 2. Members of the Standing Zhang Aiping. Lu Dingyi. Chen \'un. members of the Central Committee. Committee of the Political Bureau: Chen Pi.xian. Chen .Xilian. liu Members of the Central Advisory Zhao Ziyang. Li Peng. Qiao Shi. Hu Qiaomu. Duan Junyi. Geng Biao. Ji Commission and the Central Com• Qili and Yao Yilin. Pengfei, Huang Hua. Huang Zhen. mission for Diseipline Inspection were ?i. General secretary of the Party Kang Shi'cn. Cheng Zihua and Bo also present. Central Committee: Zhao Ziyang. Yibo. The session elected the members 4. Full members of the secretariat The session approved the elecli<,>ii of and an alternate member of the of the Parly Central Commillce: Hu the secretary, deputy secretaries ami Political Bureau of the Party Central Qiii, Qiao Shi, Rui Xingwen and Yan members of the Standing Committee Committee, the members of the Mingfu. of the Central Commission for Politica Bureau's Standing Commil• Allernale member of the secre• Discipline Inspection, which was lee and the general secretary of the tariat: Wen Jiabao. carried out at the commission's lirsl Parly's Central Committee. 5. Chairman of the Military plenum. The name list is as follows: The session approved the nomin• Commission of the Parly Central Secretary ol" the Ccnlial Com- ation of the members and an alternate Commillee: Deng Xiaoping. mission for Discipline Inspection: member of the secretariat of the Pajty First vice-chairman of the com• Qiao Shi. Central Committee by the Political mission: Zhao Ziyang. Deputy secretaries of the com• Bureau's Standing Committee. It Permanent vice-chairman: Yang mission: Chen Zuolin. Li Zhengting decided on the appointment of the Shangkun. and Xiao Hongda. chairman, first vice-chairman and The session approved the election of Members of the Standing Comnul- permanent \n of the the chairman. \n and tee of the commission (listed in Ihe Military Commission of the Party members of the Standing Committee order of the number of strokes in their Central Committee. of the Central Advisory Commission, surnames): Wang Deying. Qiao Shi. The name lists are as follows: which look place at the commission's Liu Liying. Li Zhengting. Xiao 1. Full members of the Political first plenary session. The name lisl is Hongda. Chen Zuohn. Guo Linxiang Bureau (listed in the order of the as follows: and Fu Jie. number of strokes in the characters of Chairman of the Central Advisory Zhao Ziyang delivered an import• their surnames): Wan Li. Tian Jiyun, Commission: Chen Yun. ant speech at the end of the session. • purview of the plan and in coastal whether China should become a year to create conditions to attract areas, where the open policy was member since China is a socialist foreign investment. implemented earlier than else• country and used to practise a where, only about 30 percent. highly centralized planned As a result, 1,165 contracts with Zhao said China will gradually economy. However, he said, foreign investors were signed in expand the scope of market people should judge according to the first nine months of this year, regulation and reduce that of China's stated goals and the involving about US$2.66 billion in control through planning. trends and changes taking place foreign investment. The figure is a Eventually the planned economy now. little higher than the same period will make up only a very small Meanwhile State Councillor Gu last year, according to Zhang proportion of the country's total. Mu said China will open its door Haoruo, deputy minister of During their conversation, wider to the outside world and Foreign Economic Relations and Zhao thanked Dunkel for his push its economic and technolog• Trade, who joined Gu at a press efforts to help China resume ical co-operation and exchanges conference. meinbership in GATT. He said with foreign countries to a higher China's membership would be level after the 13th Party congress. Gu, mainly in charge of the beneficial not only to China but A wide range of measures will state's open policies, urged also to other countries and to the be taken following the principles Guangdong Province, a pioneer in world economy as a whole. and policies adopted at the opening to the outside world, to He said it is understandable that congress, and indeed tremendous make greater efforts to open countries have differing views on efforts have been made since last further. •

BEIJING REVIEW, NOVEMBER 9(5. 19X7 EVENTSARENDS

Bi-Weekly Chronicle October 26 southwest of the Tibet Autonom• (October 19-November 1) • One of the Ministry of Posts ous Region, have been rescued. and Telecommunications' prin• The foreigners are mainly from POLITICAL cipal projects during the Seventh Britain, Federal Germany, Pol• Five-Year Plan (1986-90),— and, Switzerland and the United October 21 construction of the longest optical States. Some of them are being • At the weekly news briefing, a fibre telecommunications line in sent to Xigaze and Lhasa, while spokesman for the Chinese China —started on October 20, others are waiting to leave China Foreign Ministry says, "We are says a Xinhua report. It will cover through Zham. very concerned about the increas• 2,200 kilometres in five provinces. ing tensions in the Gulf region and The project's first phase is to be express deep regret over the completed by the end of this year. October 31 military action by the US navy." • The China Travel Service He says China is opposed to big October 27 (CTS) will offer package tours powers' military involvement in • A border trade contract worth TRS to the mainland for Taiwan the Persian Gulf and calls on 32 million Swiss francs (about compatriots starting November 1. everyone concerned to exercise US$21 million) has been signed The service will make full use of restraint and prevent a further between companies in the Xin• its branches across the country to worsening of the situation. jiang Uygur Autonomous Region order tickets, book hotels and tend and their Soviet counterparts. to other matters for the visitors, a spokesman for the travel service October 22 Another trade contract is expected says. • A ceremony is held in in December. Taiwan compatriots may apply Guangzhou. Guangdong Pro• through the Hong Kong branch of vince, to lay Marshal Ye October 29 CTS." .lianying's ashes in the Hong- • Joint ventures and Sino- huagang memorial centre for the foreign co-operative enterprises martyrs of the Guangzhou will be allowed to sell part of their products in China's domestic Uprising (December 1927). FOREIGN RELATIONS A devoted, long-tested Commu• markets as import-substitutes. The new regulations, designed nist and a great proletarian October 20 to stimulate foreign investment in revolutionary, statesman and • A 1987-89 cultural exchange technically advanced enterprises, military strategist. Ye died a year agreement between China and have been approved by the State ago today in Beijing. Argentina is signed in Beijing. Council and published by the State Planning Commission, Xin• October 23 October 29 hua reports. • President Li Xiannian says at a • Chinese Premier Zhao Ziyang tells the visiting British Secretary banquet to celebrate the 65th CULTURAL birthday of visiting Norodom of State for Trade and Industry Lord Young of Graffham that Sihanouk that the Chinese October 27 there is great potential to expand government and people under• • The Wuqiao international Sino-British trade. stand and respect Sihanouk's acrobatics . festival opens in Zhao says more British entre• efforts towards a just political Wuqiao County, Hebei Province, preneurs arc welcome to invest in solution to the Kampuchean where Chinese acrobatics was China and China will continue to problem. born 2,000 years ago. improve its investment Attending the opening cere• environment. ECONOMIC mony for the festival are 27 acrobats from Australia, the October 20 Soviet Union, France. Federal • The Bank of China's Great Germany. the Democratic October 24 Wall card will become a member People's Republic of Korea and • According to an official of the of Visa International, a leading Mexico and 140 Chinese acrobats. International Liaison Department international credit card group, of the CPC Central Committee, according to an agreement signed the CPC has established or today. SOCIAL resumed relations with more than The Great Wall card, which is 130 foreign political parties since available for accounts in both October 29 its 12th National Congress in Chinese and foreign currency, is • More than 200 people, includ• 1982. The Party now has relations the sole credit card issued in China ing 100 foreigners, stranded by an with 230 political parties so far. unexpected snowstorm in the I worldwide. s BEIJINCi REVIEW, NOVEMBER 9-15. 1987 m INTERNATIONAL

FRANCE-FRG become more important to formulate a unified political strategy and build their own Visit Aims to Spur West European Unity defence system, particularly since the Reykjavik summit between the United States and the Soviet West European unity was the theme of the French president's Union in October 1986. This year, recent visit to Bonn. With this goal in mind, France and France and Federal Germany held the largest joint military exercise Federal Germany are seeking to step up their bilateral co• in history and decided to set up a operation. defence council and a joint defence force as a step towards a joint West European defence system. rench President Francois Mit• President General Charles de Still, the road to bilateral co• F terrand has paid his first state Gaulle and former Federal operation and West European visit to the Federal Republic of German Chancellor Konrad unity is not an easy one. Clear Germany since he came to power Adenauer signed the treaty, the differences exist in the economic, in 1981. During the October 19-22 two traditional enemies have political and security fields. For visit, Mitterrand and Federal gradually become partners. In a example, France and Federal German leaders expressed their world where competition is Germany differ on the EC's determination to strengthen increasingly tense, co-operation financial and agricultural policies. bilateral co-operation, which will among the 12 member nations of France withdrew from the North give a fresh impetus to West the European Community (EC) is Atlantic Treaty Organization's European unity. the only road to defending their integrated military body in 1966 In an October 20 speech on individual interests and develop• while Federal Germany has European policy, Mitterrand ing their economies. France and remained and is its largest force. called for the development of a Federal Germany are the nucleus And they also have difference in "European strategy" and the of the community. their policies towards Washington speedy establishment of a "polit• Politically, France, Federal and their views on the US-Soviet ical Europe." He said it is up to Germany and the other West disarmament talks. West European countries to create European countries believe it has by Xia Zhimian a political Europe, which will be open not only to "Western friends" but also to East THAILAND-PAKISTAN European countries and third world nations. He stressed that bilateral co-operation should be Leaders Share Stand On Invasions strengthened to make France and Federal Germany the axis in the The topics of Afghanistan and Kampuchea figured West European alliance. prominently in recent talks in Bangkok between the president Mitterrand also called for the of Pakistan and the prime minister of Thailand. quick realization of a monetary union and closer co-operation among European countries in ia ul-Haq has become the first Afghanistan and Kampuchea high-technology development to ZPakistani president to visit The leaders pledged to continue to counter competition from outside Thailand since 1951, when the two try to resolve the problems as soon Europe. A Europe without a countries established diplomatic as possible and to support each currency and without control of its relations. other. trade will be a dream, he said. During (he October 21-24 visit, Thailand and Pakistan suffer The success of the visit is evident the Pakistani president and Thai directly from the effects of the from Bonn's positive response to Prime Minister Prem Tinsulan- Soviet invasion of Afghanistan all of Mitterrand's suggestions. onda held talks on international and the Vietnamese invasion of The two countries agreed to take issues of common interest, Kampuchea. Pakistan bears the concrete steps to establish a especially the Afghan and Kam- heavy burden of a large number of defence council and a joint defence puchean problems, and on refugees from Afghanistan, while force next January, on the 25th strengthening bilateral economic many Kampuchcans have fied to anniversary of the signing of their co-operation and trade. The talks Thailand. friendship treaty. showed that both leaders hold President Zia ul-Haq visited the Since 1963 when former French identical views and stands on Khao-i-Dang refugee camp in the

BEIJING REVIEW. NOVEMBER 9-15, I9K7 9 •1 INTERNATIONAL

eastern border area of Thailand their words. The Pakistani and Thai prime minister said the key to on October 22. He spoke to the Thai leaders pointed out that the an early settlement of the Afghan refugees and told reporters that so-called national reconciliation and Kampuchean problems is the the Kampuchean problem was proposed by the Soviet Union, withdrawal of Soviet and Viet• created by Viet Nam's invasion Viet Nam and their Kabul and namese troops as soon as possible. and occupation of Kampuchea, Heng Samrin puppets is aimed at Only after withdrawal can Afg• which violated the principles of gaining international recognition hanistan and Kampuchea realize international law. Because Viet for regimes that were installed genuine national reconciliation Nam invaded and occupied through Soviet and Vietnamese and self-determination, so the Kampuchea, hundreds of aggression. All talk of political Afghan and Kampuchean pro• thousands of Kampuchean re• settlements and troop withdrawal blems can be resolved once and for fugees have entered Thailand. is only propaganda aimed at all. Although Thailand has support deception. from international groups, its The Pakistani president and the by Liu Aicheng burden is still heavy. Similarly, the Pakistani presi• dent said, because of the Soviet JAPAN invasion and occupation of Afghanistan, more than 3 million Afghan refugees have entered Putting Profits Before Principles Pakistan, where they live in 328 refugee camps in the border areas. Many countries have criticized Japan for putting; its economic The effects on Pakistan and the interests above the cause of Justice. The country has been refugee burden borne by the country are similar to those of expanding its trade with South Africa and Viet Nam. Thailand. He also stressed that although ince many countries began to Before the Vietnamese invasion the Soviet Union has not invaded S apply partial economic sanc• of Kampuchea in 1978. .lapan was Kampuchea directly, it has tions against South AlVica. .lapan one of Viet Nam's major trading provided material help and moral has replaced the United Stales as partners. The average anuLial support to Viet Nam, so the Soviet Pretoria's biggest trade partner. bilateral trade volume was about Union also plays an important .According to reports on the radio USS2()() million. After the inva• role in the Kampuchean situation. station of the African National sion, many countries, including He said Moscow is the key to an Congress (ANC). trade between .lapan. froze economic aid to Viet indirect settlement of the Kampu• .lapan and South Africa reached Nam and suspended trading. But chean problem. USS3.I billion in the first half of only a few years later, some large The Pakistani and Thai leaders this year. US-South African trade .lapanese companies quietly re• agreed that the fighting by totalled USS2.5 billion. sumed dealings with Viet Nam resistance forces has prevented the ANC radio said .lapan imported with the consent of .lapanese Soviet Union and Viet Nam from USS1.57 billion worth of coal officials. Last year trade volume swallowing up Afghanistan and from South Africa last year, .[apan between the countries was back up Kampuchea. The resistance forces has increased auto export to South to the pre-invasion le\el. and have held firm on the battlefield Africa by 62 percent so far this Japan is now Viet Nam's second- while Soviet and Vietnamese year and has also made major largest trading partner, after the economic and military losses have gains in other formerly US- Soviet Union. piled up. Moreover, international dominaled sectors, including com• .lapan's trade with Viet Nam pressure on the aggressors has puters, chemicals and electronics. has aroused strong opposition increased as more and more The station deplored .lapan's from the members of the countries condemn the invasions. increasing trade with South Association of Southeast Asian Resolutions calling for troop Africa. Nations (ASEAN), the United withdrawal are passed by ever But Tokyo has not confined its States and other countries. On growing majorities in the United blind pursuit of economic gain to April 23, the six ASEAN nations Nations General Assembly. South Africa. While most coun• lodged a protest with the .lapanese To reduce ihe. pressure from tries have taken economic boycott government, condemning .Japan's various sides, the Soviet Union action against Vict Nam for its expanding trade with Viet Nam. and Viet Nam pretend to be invasion of Kampuchea, .(apan They said .lapan's actions have willing to resolve the Afghan and has restored economic aid to interfered with .ASEAN's plan to Kampuchean problems politi• Hanoi, and its trade with Viet wear Viet Nam down and force it cally. But their deeds do not match Nam is growing. to withdraw its troops from

10 BEIJING REVIEW. NOVfM BER 9-1 5. I9S7 Kampuchea, and ihcy asked the government do not match its fiower exports totalled US$154 Tokyo government to force big words. Its attitude of ignoring million last year, compared with Japanese companies to stop justice to pursue profit has US$990,000 in 1970. trading with Viet Nam. The US aroused international indignation Great efforts are being made to Senate also adopted an amend• and damaged its reputation. develop the energy industry, ment condemning Japan's restor• Japan's activities are tantamount especially to strengthen the ation of trade with Viet Nam. to giving support and encourage• exploitation of oil and coal. The regime of South Africa has ment to the racist regime in Petroleum used to be the been strongly condemned by the Pretoria and the Vietnamese country's most important export international community for its aggressors. after coffee. But because of a racist apartheid policies. Viet Already a big economic power. continuous drop in output, Nam's invasion of Kampuchea Japan is seeking to play a larger Colombia became a net petroleum has also aroused opposition role on the world political stage. importer in 1975. Last year the around the globe. But while the That is only natural. But Japan" government put a lot of money Japanese government has ex• must decide how to use its into oil exploration and extrac• pressed support for economic economic clout and what role it tion. It has also been trying to boycotts of South Africa and Viet will play in global politics. Will it attract foreign funds and en• Nam, it has allowed some promote or damage the cause of couraging joint efforts by foreign Japanese companies to take peace and international stability? and domestic petroleum com• advantage of boycotts by other Faced with choosing between panies to exploit oil resources. countries to infiltrate the South profit and justice, Japanese Since 1985, Colombia has enjoyed African and Vietnamese markets. companies should not hesitate to a surplus in its petroleum trade. In The actions of the Japanese choose justice. by Li Li 1986. it exported about 36 million barrels of crude oil which brought in more than US$400 million. Oil COLOMBIA output currently totals 380,000 barrels a day, of which 155.000 barrels are exported. The coal industry also looks Economy Adjusted for Development promising. Since the open-cast coal mine at El Cerrejon — the largest in Latin America — was Colombia's policies of economic diversification and attracting put into production in 1985. coal foreign investment have brought results. The country has the output has been on the rise. Last highest economic growth rate in Latin America. year it totalled 5.1 million tons, of which 4.8 million tons were olombia's gross national pro• foreign investment. exported. The foreign currency Cduct increased by 5.3 percent For a long time, Colombia's revenue amounted to US$172 last year compared with 1985. economy has depended mainly on million. Industrial output grew by 7 coffee. The country is the world's The country has also taken percent, agriculture and hus• largest coffee exporter and the steps to deveop its processing and bandry by 2.2 percent, and mining second-largest producer after light industries. It has reduced by 27 percent. The country's trade Brazil. Coffee exports have been imports of consumer goods and performance was particularly the mainstay of the economy and increased imports of intermediate strong. The foreign trade surplus the principal foreign currency products, and capital goods, and is reached US$1.6 billion, compared earner, making the country promoting its manufacturing with US$ 149 million a year earlier. vulnerable to drops in demand industry. Foreign currency reserves rose to and prices. To lessen its de• These measures have led to an US$3.7 billion and per-capita pendence on coffee, Colombia has expansion of non-traditional ex• national income to US$1,600. adopted several measures to ports, especially manufactured goods, and have facilitated The improvements in the diversify its economy. industrial development and the economy are the results of policy The country is planting more accumulation of funds. As a result adjustments. These focus on fiowers, fruit trees and vegetables, of the growth in the processing transforming the country's single- and an industry that combines the and light industries, 90 percent of product economy into a diversi• planting, processing and export• consumer goods, including colour fied one, with an emphasis on ing of the products has gradually TV sets and cars, are produced developing the energy industry; developed. Colombia has become domestically. putting domestic financial re• the world's second-largest flower- sources to work and attracting exporting country. Revenue from by Tang Di

BEIJING REVIEW, NOVEMBER 9-15, 1987 ARTICLES

General Secretary Zhao Meets the Press

Zhao Ziyang, general secretary of the Communist Party of China (CPC), and the four other members of the new Political Bureau Standing Committee — Li Peng, Qiao Shi, Hu Qili and Yao Yilin — met the 400 Chinese and foreign journalists who covered CPC's 13th National Congress at a reception on the afternoon of November 2. The reception, in the Great Hall of the People, was hosted by Zhu Muzhi, spokesman for the congress. Zhao told the journalists that the just concluded congress and the First Plenary Session of the 13th Party Central Committee were very successful. The greatest achievement of these two meetings is that they have provided a political, organizational and theoretical guarantee for the long-term and steady implementation of the Party's line. He stressed that the newly elected Party Central Committee will push forward the nine- year-old reform, opening up and modernization process. Zhao thanked the journalists for their extensive coverage of the congress and other developments in China. He said that as China implements its open policy it needs to know more about the world, and the world, in turn, is expected to know more about China. He expressed the hope that the journalists would continue to work to enhance understanding between China and other countries. Across the long tables, Zhao and other leaders clinked glasses with the journalists and Zhao answered their questions.

American reporter: What's your me to finish delivering the report two factions. 1 would like to say comment on reports by Chinese in one morning. that those who analyse China's and foreign correspondents on the Japanese reporter: What's your situation this way will keep 13th National Congress? comment on Japanese-Chinese making mistakes as some foreign Zhao: We are satisfied with the relations? political commentators and jour• reports, which are positive on the Zhao: I think the Sino-Japanese nalists have already done. The whole. At least we find them relationship is good. Of course this more than 1,900 delegates all positive. Generally speaking, the does not mean that there is not a approved my report to the reaction of foreign wire services to single problem. The problems that congress. No one was opposed or the congress can be summarized have arisen should and can be abstained when it was put to a into three points. First, my report resolved. I hope Japan will work vote. You have all seen this. Can to the congress, based on a clear for the solution of these problems. this indicate that there are understanding of China's con• In short. Sino-Japanese relations, reformist and conservative fac• ditions, was realistic. Second, the on the whole," are good. tions among the delegates? How is Chinese leaders are confident Foreign reporter:'Do you think it that they all endorsed the report? about their cause. And third, it that the Party Congress signals the If there were factions, wouldn't seems China will continue its end of the conservatives or do you you have to admit that they had current policies on reform and think that there are still problems merged into one? Of course, I do opening up. Their appraisal is not ahead? not rule out the possibility that loo high, or too low Thank you. Zhao: Some foreign friends think there are people opposing the there is a reformist faction and a reforms or advocating bourgeois Japanese reporter: Why is only a conservative faction in China and liberalization since China has 1 small section of your report base their interpretation of the billion people and the Communist devoted to foreign affairs? Chinese political situation on the Party of China has 46 million Zhao: My report ran to 35,000 assumed struggle between these members. However, there are no Chinese characters. If there were factions of conservatives, or ultra- more about foreign affairs, I leftists among the core members of the Party. There may be some would have had to add 5,000 more * Beijing Rc'vicn- rcgrels thai we arc iiol Chinese characters. If I did that, it able to identify some reporters more different views within the leader• wouldn't have been possible for precisely. ship on some specific issues.

12 BEIJING REVIEW. NOVEMBER 9-15. 1987 DOCUMENTS

Advance Along the Road of Socialism With Chinese Characteristics

— Report Delivered at the 13th National Congress of the Communist Party of China on October 25, 1987 Zhao Ziyang

and the effort to achieve both material progress and cultural and ideological progress. It has been a period of nine years from the time of the Third Plenary Session of the 11th Central Committee through the 12th National Congress to the present congress. During these nine years, on the basis of the great achievements scored in socialist construction since the founding of the People's Republic of China, we have opened up a new period of development in the Party's history, and profound changes have taken place in the country. By concentrating on economic development, we have brought about sustained, stable growth in the national economy. During these nine years the gross national product, state revenues and the average income of both urban and rural residents have all approximately doubled. Therefore, we are fully assured that by the end of this century we will attain the objective of economic development set by the 12th National Congress. With the growth of production we have started Comrades, to solve, or found ways for solving, certain serious As requested by the 12th Central Committee of social and economic problems which had long the Communist Party of China, I shall now make a plagued us: report to this congress on the work of the Committee. - The overwhelming majority of our one billion people have secured a life with enough food and clothing. People in some areas are beginning to become well-off. There are still certain areas where I. Historic Achievements and the the problem of food and clothing has not yet been solved, but even in those places there has been some Tasks of the Current Congress improvement. — We have created job opportunities on an The 12th National Congress of the Party extensive scale in both urban and rural areas. As a upheld and developed the line of the Third Plenary result. 70 million people in cities and towns have Session of the 11th Central Committee by setting been newly employed, while in the countryside, forth a programme designed to create a new where village and township enterprises have situation in all fields of socialist modernization. emerged as a new force, 80 million peasants have Since that congress, the Central Committee of the now shifted full time or part time from farming to Parly has convened seven plenary sessions and a industry. national conference. At these meetings timely, -- Market supplies have greatly increased. We correct policy decisions were made which did much have basically put an end to acute and long-lasting to promote reform, the opening to the outside world shortages of consumer goods.

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- The serious imbalance between major sectors the four cardinal principles* and promoting reform of the national economy has been markedly and economic development. There has been a reduced, and the economy has gradually been set on marked turn for the better in public order. The a course of more or less co-ordinated development. healthy progress of the struggle against bourgeois It should be said that in the last nine years the liberalization has raised people's consciousness and national economic strength has increased more has added to our experience of opposing wrong rapidly and the people have obtained greater ideologies through education by positive examples material benefits than in any other period since the and through correct criticism, instead of through founding of the People's Republic. This is in sharp political movements. In the profound changes being contrast to the situation in the period of 20 years brought about by the all-round reform, it is not easy from the late 1950s to December 1978, when the to maintain stability and unity, but it is absolutely Third Plenary Session of the 11th Central essential. Committee was held. During those years, under the -- Socialist democracy and a socialist legal influence of the Left guiding ideology, "class system have developed step by step. A system of struggle" was taken as the "key link," economic socialist laws based on China's Constitution is development met frequent setbacks and the people's taking shape. The people have become more and standard of living improved only slightly. more active in political life. The patriotic united All these achievements in economic develop• front has expanded as never before. The system of ment over the past nine years are inseparable from multi-parly co-operation and consultation under the resoiuted efforts we made, after we had restored the leadership of the Communist Party has been things to order, to advance the all-round reform and functioning very well. The fraternal unity of all our the open policy. nationalities has been further consolidated. Reform and the open policy have broken down — Major progress has been made in building a the rigid economic structure and revitalized the socialist society with an advanced culture and economy. The socialist commodity economy has ideology. Education in ideals, ethics and legality has grown vigorously and with irresistible momentum. been carried out throughout the society. The coastal areas from south to north are forming a Undertakings in education, science, culture, art, the vast forward strip open to the outside world. The press, publication, public health and physical enthusiasm of the masses has been brought into culture have been flourishing. The system of nine- play, and this has further liberated the productive year compulsory education is being implemented. forces. — A strategic change has been made in the Reform and the open policy have also further ideology guiding our efforts to build national emancipated the minds of the people, battering defence. The People's Liberation Army has scored down many old concepts that have long stifled their major successes in its reorganization and reform. thinking. It is becoming a trend for people to seek While reducing its size by one million, the army has change, to blaze new trails and to stress practical achieved fresh progress in its endeavour to become results. modernized, regularized and more revolutionary With the passage of time people will see more and has improved its defence capability. The army clearly why it is that these nine years have been has made great contributions to society by extraordinary and have attracted worldwide defending the motherland, by dealing with attention. It is because during this period a great emergencies and disasters and providing relief, and many new ideas have emerged which conform to by taking part in every field of socialist social progress, and the foundation has begun to be construction. laid for a new structure of far-reaching significance. — In accordance with the principle of "one In terms of the breadth and depth of the changes it is country, two systems," China has reached an bringing about in society, the socialist structural agreement with Britain on the question of Hong reform is another revolution. Kong and another with Portugal on the question of To guarantee the smooth progress of economic Macao. We shall strive to achieve a peaceful development and of reform and the opening to the settlement of the question of Taiwan as well, on the outside world, our Party has led the people in an basis of this same principle. History will prove that enormous effort to achieve success in the fields of to apply the principle of "one country, two systems" politics, ideology, culture, national defence, foreign to national reunification is a great innovation affairs and so on. The results obtained have been showing the political wisdom of the Chinese nation. notable: — Political stability and unity have been consolidated and developed. We have achieved this * Keeping to the socialist road and upholding by properly handling social contradictions and the people's democratic dictatorship, leadership by promptly eliminating different forms of interference the Communist Party, and Marxism-Leninism and from both the Left and the Right, while upholding Mao Zedong Thought. — 7>.

II — In the light of the international situation and because our economic foundation was very weak to the needs of our own modernization programme, begin with, and because we lost too much time we have readjusted the pattern of China's foreign addressing the problem. Today's world is affairs and the Party's external relations, focusing characterized by a rapidly growing revolution in on the two major issues of peace and development. technology, increasingly intense market competi• We have developed an independent foreign policy tion and a volatile political situation. We are faced of opposing hegemonism and working to preserve with formidable and pressing challenges. If we do world peace. We now have more friends in the world not recognize this and redouble our efforts, our than ever. country and our people may fall further behind, and Comrades! Nine years' practice has proved China will not be able to take its rightful place in the that our Party is truly a great, glorious and correct world. History requires our generation and the next party and that the line followed since the Third few generations of Chinese - Communist Party Plenary Session of the 11th Central Committee is a members first of all - to rouse themselves, unite as correct, Marxist line. This line is a crystallization of one, and do all they can to catch up. the wisdom of the Party and the people, and of the The central task of the current congress is to collective wisdom of the Central Committee. With accelerate and deepen the reform. Reform is the his courage in developing Marxist theory, his "only process through which China can be realistic approach, his rich experience and his revitalized, a process which is irreversible and which foresight and sagacity. Comrade Deng Xiaoping accords with the will of the people and the general has made significant contributions to the trend of events. We shall analyse our experience, formulation and development of this line, to uphold and develop the line followed since the decision-making on a series of key issues, and to the Third Plenary Session of the 11th Central creation of a new situation in construction, reform Committee, define the basic policies for future and opening to the outside world. economic development, economic structural reform and political structural reform, and decide on basic The achievements of the past nine years have principles for strengthening Party building as we been the outcome of the hard, concerted work of the carry out reform and the open policy. By fulfilling Chinese people of all nationalities. Please allow me, these tasks correctly we shall do much to promote in the name of the Communist Party of China, to unity within the Party and between the Party and thank the people for their trust in our Party and for our people of all nationalities, and to ensure our their support. All sons and daughters of the Chinese continued advance along the road of socialism with nation who have lived through the historic changes Chinese characteristics. of these nine years and have personally contributed to them and all people of Chinese descent who care about the destiny of China have reason to be proud of our achievements during this period. II. The Primary Stage of Socialism But we have no reason whatsoever to be complacent. We must be soberly aware that we still and the Basic Line of the Party face a great many problems and difficulties, many more than we anticipated. There are not a few A correct understanding of the present failings in our work of leadership. New structures historical stage of Chinese society is of prime are being substituted for old ones. Many rules and importance for building socialism with Chinese regulations are yet to be perfected. In many fields, characteristics, and it is the essential basis on which the quality of management and supervision cannot to formulate and implement a correct line and keep up with the changing situation. There still correct policies. exists the tendency to seek quick results in our Our Party has already made a clear and definite economic work, and the contradiction of total statement on this question: China is now in the demand outstripping total supply has not yet been primary stage of socialism. There are two aspects to basically resolved. Bourgeois liberalization still has this thesis. First, the Chinese society is already a appeal for some people, and ossified thinking still socialist society. We must persevere in socialism and shackles some comrades' minds. Above all, never deviate from it. Second, China's socialist comrades throughout the Party and the people as a society is still in its primary stage. We must proceed whole are strongly dissatisfied with the from this reality and not jump over this stage. bureaucratism and corruption that exist to varying Under the specific historical conditions of degrees in many sectors. We must face these contemporary China, to believe that the Chinese problems squarely and strive to eliminate them, so people cannot take the socialist road without going as to live up to the people's expectations. through the stage of fully developed capitalism is to We must also be soberly aware that we have a take a mechanistic position on the question of the much longer way to go and even more arduous tasks development of revolution, and that is the major to perform. We are still at a quite backward stage. cognitive root of Right mistakes. On the other

III DOCUMENTS

hand, to believe that it is possible to jump over the domestic market are only beginning to develop; the primary stage of socialism, in which the productive natural economy and semi-natural economy forces are to be highly developed, is to take a constitute a considerable proportion of the whole; Utopian position on this question, and that is the and the socialist economic system is not yet mature major cognitive root of Left mistakes. and well developed. In the realm of the superstructure, a number of economic and cultural China used to be a semi-colonial, semi-feudal conditions that are necessary if we are to promote a country. During the more than 100 years since the 'high degree of socialist democracy are far from ripe, middle of the last century, repeated trials of strength and decadent feudal and capitalist ideologies and between various political forces, repeated failures of the small-producers' force of habit still have the democratic revolution of the old type and the fmal victory of the new-democratic revolution have widespread influence in society and often corrode proved that the capitalist road is a blind alley for Party cadres and public servants. All this shows that China and that the only way out is the socialist road we still have a long way to go before we can advance which China is now taking under the leadership of beyond the primary stage of socialism. the Communist Party, having overthrown the Building socialism in a big, backward Eastern reactionary rule of imperialism, feudalism and country like China is something new in the history bureaucrat-capitalism. But precisely because our of the development of Marxism. We are not in the socialism has emerged from the womb of a semi- situation envisaged by the founders of Marxism, In colonial, semi-feudal society, with the productive which socialism is built on the basis of highly forces lagging far behind those of the developed developed capitalism, nor are we in exactly the same capitalist countries, wc are destined to go through situation as other socialist countries. So we cannot a very long primary stage. During this stage we shall blindly follow what the books say, nor can we accomplish industrialization and the mechanically imitate the examples of other commercialization, socialization and moderniza• countries. Rather, proceeding from China's actual tion of production, which many other countries conditions and integrating the basic principles of have achieved under capitalist conditions. Marxism with those conditions, we must find a way How do things stand in China, now that to build socialism with Chinese characteristics socialism has been developing here for more than through practice. Ouj Party has explored ways of three decades? On the one hand, a socialist doing this and has achieved major successes. But the economic system based on public ownership of the road it has traversed has taken many twists and means of production has been instituted, a socialist turns, and this has cost us dear. Beginning in the late political system of people's democratic dictatorship 1950s, under the influence of the mistaken Left has been established, and the guiding role of thinking, we were too impatient for quick results Marxism in the realm of ideology has been affirmed. and sought absolute perfection, believing that we The system of exploitation and the exploiting could dramatically expand the productive forces by classes have been abolished. China's economic relying simply on our subjective will and on mass strength has grown enormously and educational, movements, and that the broader the scale and the scientific and cultural undertakings have conside• higher the level of socialist ownership, the better. rably expanded. On the other hand, the country has Also, for a long time we relegated the task of a huge population and a poor foundation to start expanding the productive forces to a position of with, and its per-capita GNP still ranks among the secondary importance and continued to "take class lowest in the world. The picture is very clear: Out of struggle as the key link" after the socialist a population of more than one billion, 800 million transformation was basically completed. Many people live in rural areas and, for the most part, still things which fettered the growth of the productive use hand tools to make a living. A certain number of forces and which were not inherently socialist, or modern industries coexist with many industries that were applicable only under certain particular are several decades or even a century behind historical conditions, were regarded as "socialist present-day standards. Some areas that are fairly principles" to be adhered to. Conversely, many developed economically coexist with vast areas that things which, under socialist conditions, were are underdeveloped and impoverished. A small favourable to the growth of the productive forces amount of science and technology is up to the and to the commercialization, socialization and highest world standards while the sdentific and modernization of production were dubbed technological level as a whole is low, and nearly one- "restoration of capitalism" to be opposed. As a quarter of the population is still illiterate or semi- consequence, a structure of ownership evolved in lilerate. The backwardness of the productive forces which undue emphasis was placed on a single form determines the following aspects of the relations of of ownership, and a rigid economic structure took production: socialization of production, which is shape, along with a corresponding political essential for expanded socialist public ownership, is still at a very low level; the commodity economy and structure based on over-conccntralization of power All this seriously hampered the development of the

IV productive forces and of the socialist commodity First, we must concentrate on modernization. economy. This state of affairs has taught us that it is The fundamental task of a socialist society is to of prime importance to have a clear understanding expand the productive forces. During this primary of China's basic conditions and of the present stage stage we must shake off poverty and backwardness, of socialism in China. and it is therefore especially necessary for us to put What, then, is this historic stage, the primary the expansion of the productive forces at the centre stage of socialism in China? It is not the initial phase of all our work. Helping to expand the productive in a general sense, a phase that every country goes forces should become the point of departure in our through in the process of building socialism. Rather consideration of all problems, and the basic it is, in a particular sense, the specific stage China criterion forjudging all our work should be whether must necessarily go through while building it serves that end. We must always encourage the socialism under conditions of backward productive spirit of plain living and hard struggle in all our forces and an underdeveloped commodity endeavours and build up the country through thrift economy. It will beat least 100years from the I95()s. and hard work. when the socialist transformation of private owner• ScconcU we must persist in a comprehensive ship of I he moans of production was basically reform. Socialist society is a society that advances completed, to the lime when socialist moderniza• through reform. In the primary stage, and at present tion will have been in the main accomplished, and in particular, reform is an urgent historical all these years belong to the primary stage of necessity, because the development of the socialism. This stage is different from both the productive forces has been seriously hampered by transitional period, in which the socialist economic the rigid structure that was built up over the years. basis was not yet laid, and the stage in which Reform is a process by which the socialist relations socialist modernization will have been achieved. of production and the socialist superstructure The principal contradiction we face during the improve themselves, and it is also a force that present stage is the contradiction between the pushes all work forward. growing material and cultural needs of the people and backward production. Class struggle will Third, we must adhere to the open policy. continue to exist within certain limits for a long time Economic relations between stales today have to come, but it is no longer the principal become increasingly close, and no country can contradiction. To resolve the principal contradic• possibly advance behind closed doors. When a tion of the present stage we must vigorously expand country has only a poor foundation on which to the commodity economy, raise labour productivity, build socialism, it is especially necessary for it to gradually achieve the modernization of industry, develop economic and technological exchange and agriculture, national defence, and science and co-operation with other countries and to assimilate technology and, to this end. reform such aspects of the achievements of civilization the world over, so the relations of production and of the as gradually to close the gap between it and the superstructure as are incompatible with the growth developed countries. Closing one's country to of the productive forces. external contact results only in increasing backwardness. I n short, the primary stage of China's socialism is one in which we shall gradually put an end to Fourth, we must vigorously develop a planned poverty and backwardness. It is a stage in which an commodity economy with public ownership playing agricultural country, where farming is based on the dominant role. A fully developed commodity manual labour and where people engaged in economy is an unavoidable stage in the agriculture constitute the majority of the development of the economy and the indispensable, population, will gradually turn into a modern basic condition for the socialization and industrial country where non-agricultural workers modernization of production. So far as ownership constitute the majority. It is a stage in which a and distribution are concerned, absolute perfection society with the natural and semi-natural economy and egalilarianism are not what is required in a making up a very large proportion of the whole will socialist society. In the primary stage it is turn into one with a highly developed commodity particularly important to develop diverse sectors of economy. It is a stage in which, by introducing the economy, provided that public ownership reforms and exploring new ways, we shall establish remains dominant; to have diverse forms of and develop socialist economic, political and distribution, provided that distribution according cultural structures that are full of vitality. Lastly, it to work is the principal form; and, with the objective is a stage in which the people of the whole country of common prosperity in mind, to encourage some will rise to meet the challenge and bring about a people to become well-off first through honest work great rejuvenation of the Chinese nation. and lawful business operations. Proceeding from the realities of the primary Fifth, we must endeavour to build democracy stage of socialism, what principles should we set on the basis of stability and unity. In a socialist forth as our long-term guide? society there should be a high degree of democracy.

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a comprehensive legal system and a stable social dependent, and they are integrated in the practice of environment. In the primary stage, as there are building socialism with Chinese characteristics. We many factors making for instability, the must not interprete the four cardinal principles as maintenance of stability and unity is of special something rigid, lest we come to doubt or even reject importance. We must correctly handle the the general principle of reform and opening to the contradictions among the people. The people's outside world. Neither can we interprete reform and democratic dictatorship should not be weakened. the open policy as something bourgeois liberal, lest Because feudal autocratic influence is still strong, it we deviate from the path of socialism. In the is particularly urgent to build socialist democracy, primary stage when the country is still but in view of the restrictions imposed by historical underdeveloped, the tendency towards bourgeois and social conditions, that can only be done step by libcrali/ation, which rejects the socialist system in step and in an orderly way. favour of capitalism, will persist for a long time. Sixth, under the guidance of Marxisin uc must Unless we overcome hidebound thinking and endeavour to build a society wiih an advanced pursue reform and the open policy, we will not be culture and ideolog\n accordance with the able to demonstrate convincingly the superiority of resolution on this subject adopted by the Sixth socialism and to enhance its appeal, and this failure Plenary Session of the 12th Central Committee, the will encourage the spread of bourgeois ideological and ethical standards of the whole liberalization. The struggle to eliminate the nation, as well as its cultural and scientific levels, interference and influence of the two erroneous should be raised in order to help people become well tendencies - hidebound thinking and liberalization educated, self-disciplined citizensVith high ideals — will last throughout the primary stage of and moral integrity. Our modernization program• socialism. Since the old Left habits of thought are me, reform and open policy give tremendous deep-rooted and since they are the main source of impetus to the building of socialist culture and the obstacles to reform and the open policy, the ethics and, at the same time, set high demands on major task for quite a long time will be to overcome them. We should strive to foster theoretical hidebound thinking. In short, the need to be guided guidance, public opinion, values and a cultural and by the two basic points and to make economic social environment which promote modernization, development our central task is the principal thing reform and the open policy. We should also try to we have learnt through experience and the main overcome the narrow mentality and conservative content of our Party's basic line in the primary stage habits of the small-producers, resist decadent feudal of socialism. and capitalist ideas and arouse the immense enthusiasm and creativity of the Chinese people of all nationalities as they dedicate themselves to the cause of modernization. III. The Strategy for Economic Comrades! The basic line of our Party in Development building socialism with Chinese characteristics during the primary stage of socialism is as follows: to The historical task to be addressed in the lead the people of all our nationalities in a united, self course of expanding the productive forces during reliant, intensive and pioneering effort to turn China the primary stage of socialism is to achieve into a prosperous, strong, democratic, culturally industrialization and to commercialize, socialize advanced and modern socialist country by making and modernize production. In its economic economic development our central task while development China is faced with the dual task of adhering to the four cardinal principles and concentrating on a traditional industrial revolution persevering in reform and the open policy. Adherence and at the same time trying to catch up with the new to the four cardinal principles - that is, keeping to worldwide technological revolution. To fulfil this the socialist road and upholding the people's task will take systematic, phased efforts over a long democratic dictatorship, leadership by the period of time. Communist Party, and Marxism-Leninism and Ever since the Third Plenary Session of the Mao Zedong Thought - is the foundation 11 th Central Committee, we have been carrying out underlying all our efforts to build the country. a strategic plan for economic development. This Adherence to the general principle of reform and plan involves three steps. The first step is to double the open policy has been a new development of our the GNP of 1980 and solve the problem of food and Party's line since the Third Plenary Session of the clothing for our people. This task has been largely 11th Central Committee and has added to the four fulfilled. The second step is to double it again by the cardinal principles new content appropriate to our end of this century, thus enabling our people to lead time. The two basic points — adherence to the four a fairly comfortable life. The third step is by the cardinal principles and adherence to reform and the middle of the next century to reach the per capita open policy — are interrelated and mutually GNP level of moderately developed countries. This

VI will mean that modernization has been basically through advances in science and technology and accomplished and that our people have begun to improved quality of the work force enjoy a relatively affluent life. Then, on this basis, Modern science and technology and modern China will continue to advance. management are the decisive factors in improving economic results and the principal means of The most important task at present is to make a enabling the economy to advance to a new stage of success of the second step. When that has been growth. We must recognize clearly that we will gef done, great new advances will have been made in nowhere if we try to develop the economy on the China's modernization: there will be a marked basis of backward technology and management and improvement in economic results in society, labour by consuming enormous resources. Unless we apply productivity and quality of products; GNP will advances in science and technology and scientific have increased substantially, as will the output of management, we shall be unable to produce major industrial and agricultural products; and sufficient grain and other crops on a limited amount China's position in the world in terms of per capita of arable land and to maintain the present suf• GNP will have risen considerably. In the main areas ficiency of food and clothing for an ever-growing of industry China will be fairly close to the population, let alone to achieve a comfortable or technological level reached by the economically even higher standard of living. Without changes in developed countries in the 1970s or early 1980s. In backward design, outdated equipment, poor the other sectors of industry and in agriculture the processing techniques and loose management, it technological level will also be noticeably higher. will be difficult for industry and other sectors to Junior middle school education will have been made move ahead. Poor quality of products, heavy universal in cities and towns and in most rural areas, consumption of materials and high production and senior middle school education, or the costs are a waste of resources and cannot reduce the equivalent vocational and technical school difficulties in China's social and economic life; education, will have been made universal in most moreover, they prevent our products from being big cities. The people will lead a fairly comfortable competitive on the international market. Particu• life. There is no question that in a country like ours, larly at a time when the new worldwide which has so large a population and so poor a technological revolution is moving so rapidly, we foundation, to make it possible for the people to shall not be able to narrow the economic and have plenty of food and clothing and to live and technological gap between China and the developed work in peace and happiness is a magnificent but countries if we do not make the best use of our time extremely difficult undertaking. to try to catch up with them. All this means that In our effort to achieve the objective of the advances in science and technology and the second step wc shall find both many favourable improvement of management will basically factors and quite a few difficulties and determine the progress of China's modernization contradictions. The crux of all the contradictions is and that the revitalization of our nation hinges poor economic results. Only by doing sound, upon them. practical work to improve economic results and make progress year by year can such difficulties as In accelerating the development of science and China's large population, relative inadequacy of technology we should base ourselves on China's resources and serious shortage of funds be realities, open our eyes to the whole world and gradually alleviated, and sustained and reasonably determine the right direction for development and rapid development of the economy be ensured. the right priorities. The primary objective of Therefore, we must steadfastly carry out the scientific and technological work is to revitalize the strategy of steady growth and co-ordinated economy. Emphasis should be placed on development with emphasis on economic results modernizing the technology and equipment of and improvement of quality. The basic industries devoted to large-scale production, so as requirements of this strategy are to improve the to achieve a marked improvement in the technology quality of products, to ensure their ready of the principal sectors of agriculture and of such marketability, to reduce consumption of materials key industries as energy, raw and semi-finished and labour, to achieve a rational distribution of materials, transport, communications and essential productive factors and to increase machine-building. Efforts should be made to spread economic returns and efficiency in the use of funds the use of those scientific and technological and resources. In essence, this means that we must achievements that are universally applicable, to gradually shift the emphasis from extensive accelerate technological upgrading of existing management to intensive management. To this end, enterprises and to carry on the "spark programme" wc must attend to the following three major tasks. designed to develop the rural economy. At the same 1. To give first priority to the expansion of time, qualified personnel should be organized scientific, technological and educational underta• without delay to start research and development in kings, so as to push forward economic development high technology, especially in the fields of

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microelectronics, information, bioengineering and 2. To maintain a rough balance between total new materials, and further efforts should be made demand and total supply and rationally adjust and to strengthen basic research and develop soft reform the structure of production science. We must accelerate reform and set up a To bring about steady economic growth on the mechanism that closely integrates science and basis of improved economic results, we must try to technology with the economy; increase the incentive maintain a rough balance between total demand of enterprises, especially large key enterprises, to and total supply. The two keys to achieving this goal apply scientific and technological advances and are to determine a rational overall scale of make them feel the pressure to do so; push forward investment in fixed assets for the whole society that the expansion of a technology market and the is compatible with our national strength, and to commercialization of technological achievements; define the growth rate of consumption that is and shorten the length of time between the compatible with the growth rate of production. We achievement of research results and their should improve the overall balance of the economy application to production and construction. We and achieve both a balance in finance, credit, must continue to import advanced technologies foreign exchange and materials respectively and a from abroad, and integrate them closely with basic balance between them. We must take resolute scientific and technological research at home, and measures to control the trend of excessively rising we should intensify our efforts to master and prices which has emerged this year. In all our assimilate imported technologies and to improve practical work we must make a correct assessment upon them. It is proposed that the State Council of the situation, take the initiative promptly to work out a medium- and long-range programme for remedy the imbalance in economic activities and the development of science and technology and regularly mifke minor adjustments so as to avoid the launch it as soon as possible by organizing the major adjustments that would have to be made in scientific and technological forces of the whole the event of a serious disproportion between country for this purpose. Basically, the different sectors. development of science and technology, the The overall economic balance is closely related revitalization of the economy and indeed the to the economic structure. Only when this balance is progress of the whole society all depend on achieved on the basis of a rational structure can improving the quality of the work force and training good macro-economic results be attained. The large numbers of competent personnel. Education is problem of rational structure will become of fundamental importance to the fulfilment of our increasingly acute as the years go by. The reasons great long-range mission. We must therefore for this are as follows. First, as we advance towards continue to stress the strategic role of education and a fairly comfortable standard of living, more and do a better job of tapping intellectual resources. As more people engaged in agriculture will move to the economy develops, the state should increase non-agricultural work. There will be an ever more year by year the funds allocated for education, while urgent need for the development of basic industries continuing to encourage people from all walks of and infrastructure and an increasing demand for life to raise money to set up new schools. We should better quality consumer goods and for wider stick to the principle that education must serve choices. All this will place new demands on the socialist modernization. In the light of actual needs, reform of the structure of production. Second, the we should improve the structure and quality of impact of the new technological revolution and of education and overcome the tendency to divorce the change in structure of production worldwide education from reality and to place undue emphasis and China's need to increase exports also require an on the proportion of students entering schools of a appropriate adjustment and reform of the structure higher level. We must create a social environment in of our production. The development of our which knowledge and educated people are respected economy and the improvement of economic results and must continue to improve the working and will therefore depend to a large extent on our living conditions of intellectuals so as to turn success in gradually rationalizing the structure of human resources to best account. The initiative and production. creativity of the workers, peasants and intellectuals China has a vast domestic market, and there is should be brought into full play, and awards should plenty of room for the development of traditional be given to those who make outstanding industries. Also, the widening scope of the open contributions to modernization, A major effort policy provides ample opportunities for us to ac• should be made to upgrade vocational education quire and use advanced foreign technologies. We and on-the-job training by various means, with a should integrate these two advantages and expand view to building an army of capable and disciplined the whole economy by emphasizing the workers. While maximizing the role of our own transformation and development of our traditional scientists and technicians, we should strive for ex• industries through the application of advanced change of personnel with foreign countries. technologies while at the same time developing new

VIII high-technology industries. In line with these healthy development of the economy, which in turn considerations, the basic direction of the will help to create a better economic environment adjustment and reform of the structure of for reform. In this way it will be possible to combine production for a fairly long time to come should be development with reform, planning with the market as follows: and macro-control with micro-flexibility, and to — to continue to stress the strategic importance take a new direction in the work of planning. of agriculture and to develop the rural economy in Here it is necessary to stress the question of an all-round way; agriculture, which is extremely important and has a — to strive to develop consumer-goods direct bearing on overall economic development industries and at the same time to pay adequate and reform. The steady growth of agriculture and attention to basic industries and infrastructure, the improvement of the structure of production in accelerating the development of the energy industry rural areas are the foundation for steady, long-term (primarily electric power), of the raw and semi• development of the entire economy. Since in this finished materials industry (especially iron and primary stage of socialism in China the conditions steel, nonferrous metals and chemicals) and of of agricultural production are still comparatively transport and communications (principally com• backward and its growth is still unsteady, prehensive systems of transport and of strengthening agriculture is an especially important dissemination of information); and urgent task. We must give high priority to grain - to vigorously develop the machine-building production and strive to increase it considerably in and electronics industries, so as to provide more and the next 10 years or so. This is a fundamental more advanced technical equipment to serve the condition for attaining the strategic objective set for modernization programme; and the end of the century. We must also continue to - to energetically develop the building industry make rational adjustments in the distribution of by commercializing housing, so as gradually to urban and rural economies and in the structure of make this industry a major pillar of the economy. production in the countryside, actively developing a We must attach importance to the development of diversified rural economy with village and township tertiary industry and strive for a co-ordinated enterprises. And we must integrate this endeavour growth of primary, secondary and tertiary with the promotion of grain production, in an effort industries. Basic industries and infrastructure must to maintain an all-round development of the rural be strengthened — otherwise economic development economy and a steady increase in the farmers" cannot be sustained — but they should not be income. We should consolidate and improve developed in isolation, and their growth should be various forms of the household-based system of co-ordinated with growth in other areas. So far as contracted responsibility for rural production with the geographical distribution of industrial remuneration linked to output, encourage farmers development is concerned, we should make sure to engage in part-time business, and establish a that the east coast region, where the economy is social service system for them. In areas where comparatively developed, plays its important role. conditions permit, we should promote diversified At the same time, we should gradually accelerate the forms of co-operation and association on a development of the central and western regions of voluntary and mutually beneficial basis, so as to the country, so that the different regions can take gradually reach a rational scale of operation. We advantage of their respective strong points and, by must see to it that reforms in urban and rural areas opening up to each other and conducting exchange are co-ordinated, that contradictions between on an equal basis, develop a rational regional urban and rural areas are handled properly, and division of work and regional economic structure. that the alliance of the workers and peasants is We should continue to give necessary support to consolidated. While deepening the reform in rural minority nationality areas and poverty-stricken areas, the state, collectives and individual farmers areas and make further studies and formulate should all increase input into agriculture. Local policies suited to their realities, in order to help authorities should allocate more financial resources build up their capacity for further development and to the development of agriculture so as to step up to promote their economic prosperity. capital construction in farmland and water To rationalize the structure of production and conservancy, increase the capacity for preventing the organizational structure of enterprises and to floods and droughts and improve the basic achieve the optimum distribution of resources, we conditions of agricultural production. Vigorous should give play to market forces and free efforts should be made to tighten the control over competition. But we should also rely on the state to land use and to check the rapid shrinkage of formulate appropriate policies in this connection farmland. We should increase the production and and to use such economic levers as price, finance, supply of such materials as chemical fertilizers, plas• taxation and credit for intervention and regulation, tic sheeting, pesticides, diesel oil and farm thus ensuring that reform serves to promote the machinery, in order to increase material support to

IX DOCUMENTS agricultural production. We should intensify quickly. To expand foreign trade, it is imperative to research on agricultural science and technology, gradually reform the structure of foreign trade. The actively apply its results and endeavour to develop reform should be designed to give foreign tradeen- and spread the use of improved strains. While terprises full authority over management and full accelerating the development of agricultural responsibility for profit and loss. This will ensure production, we should give the people proper better co-ordination between industry and foreign guidance on patterns of consumption -- the trade and lead eventually to a system whereby consumption of food in particular — and regulate foreign trade corporations can act as agents for those patterns in such a way as to adapt them to other enterprises in the export of their commodities. China's agricultural resources and the level of In contracting foreign loans we should follow production. For the most part, we have only begun this rule: borrow prudent amounts and keep a lo exploit the enormous resources in our rural areas, rational debt structure, taking into consideration and many of these resources are not yet being our financial and material resources and our utilized rationally. The potential is great, and the capacity to repay. We should work hard to increase prospects for the development of farming, forestry, overall economic efficiency in the use of foreign animal husbandry, sideline production and fishery funds. Efforts should be made to improve the laws as well as village and township enterprises are all governing business relations with foreigners, to very encouraging. implement the preferential policy and to improve 3. To open wider to the outside world and the investment environment, so as to enable foreign constantly expand economic and technological businessmen to run enterprises in China according exchange and co-operation with other countries to international practice and to attract more foreign The present world is an open one. We have investment. achieved great success in pursuing the fundamental It is necessary to consolidate and develop the state policy of opening to the outside world. In pattern of opening to the outside world that has future we should enter the world economic arena begun to take shape, with the open policy extending more boldly, decide on correct strategies for export progressively from the special economic zones to and import and for the use of foreign funds, and coastal cities, then to coastal economic regions and expand trade and our economic and technological finally to interior areas. With the overall interests of co-operation with other countries, both developed the national economy in mind, we should draw up a and developing, so as to create more favourable correct development plan for all these zones, cities conditions for accelerating our scientific and and regions. They should focus on development of technological progress and for improving economic the export-oriented economy and expand their results. horizontal economic ties with the interior areas, so Our capacity to earn foreign exchange through as to serve more effectively as a base for export determines, to a great extent, the degree to implementing the open policy and as a window which we can open to the outside world and affects open to the outside world. the scale and pace of domestic economic Comrades, I have to emphasize here that development. For this reason, bearing in mind the population control and protection of the demands of the world market and our own strong environment and the ecological balance have a vital points, we should make vigorous efforts to develop bearing on the growth of our economy and of the export-oriented industries and products that are society as a whole. There have been marked competitive and can bring quick and high economic achievements in population control in China, returns. We should also work hard to improve the thanks to the important contribution made by the quality of export commodities, rationalize their mix large numbers of personnel working in the field of and open up new markets in different parts of the family planning. However, we must realize that with world with a view to achieving a relatively rapid and so big a population base and so high a number of sustained growth of export trade. In addition, we births, we cannot afford to relax in the least our should do more to expand tourism, to increase efforts in family planning; if we relax, it will export of labour services and technology and to inevitably affect the attainment of our goal. increase the amount of foreign exchange earned Emphasis should be placed on ensuring better from sources other than trade. Priority should be prenatal care and sound practice in bringing up given lo the import of advanced technology and key children so as to improve the quality of the equipment. We should redouble our efforts to raise population. At the same time, we should pay the quality and performance ol the key equipment attention to the rapid aging of the population and and other products that we make ourselves in order take correct and timely measures to handle this to be able to produce at home whatever we can. We problem. While advancing economic development, should expand production of import substitutes we should energetically protect and rationally and adopt necessary policies and measures for utilize natural resources, bring environmental increasing the proportion of domestic goods more pollution under comprehensive control, do a better job of protecting the ecological balance and based on payment in kind. Some of these practices integrate achievement of economic and social were followed in order to speed up the results with improvement of the environment. establishment of an industrial base under the Modernization of national defence is an conditions that existed both at home and abroad in important component of the overall drive for the early days of the People's Republic; others had socialist modernization. In the last few years, been handed down from the years of revolutionary bearing in mind the general interests of national war. They were not fixed practices that were development, the People's Liberation Army and the necessitated by the socialist system. Now the vast numbers of workers and staff on the industrial, situation is very different. If we fail to reform these scientific and technological fronts of national practices, they will hinder the expansion of the defence have actively assisted and participated in productive forces. To sum up, all the reforms we economic construction and at the same time have have carried out conduce to the development of the scored most gratifying achievements in moderni• socialist economy. Party members should deepen zing defence. We should step up education about and unify their understanding of this matter and defence to make people more aware of its resolutely push the reform forward. importance. We should continue to develop defence The Central Committee's Decision on Reform technology, to improve military equipment and, on of the Economic Structure, adopted in October the basis of economic growth, to advance the 1984 at the Third Plenary Session of the Party's 12th modernization of a national defence adapted to Central Committee, explicitly stated that the China's particular conditions. socialist economy is a planned commodity economy In the final analysis, the success of our strategy based on public ownership. This is the Party's for economic development depends on accelerated scientific summation of the socialist economy and and intensified reform of the economic structure. At an important contribution to Marxism, and it is the same time, the planning and implementation of also the theoretical basis for our reform of the the reform must serve economic development. In economic structure. this way, reform can be co-ordinated with construction, so that each promotes the other, The socialist planned commodity economy fostering the sound growth of our socialist should be a system that integrates planning with the commodity economy. market. In this connection, several basic concepts need to be clarified. First, the essential difference between the socialist and capitalist commodity economics lies in the form of ownership on which IV. Restructuring the Economy they are based. The socialist commodity economy based on public ownership provides the possibility Significant achievements have been scored in for the society to maintain a balanced growth of the the reform of China's economic structure, which national economy. Our task is to make this has instilled new vitality into socialism. To speed up possibility a reality by a judicious use of both and intensify the reform, we should deepen our means: regulation through planning and regulation scientific understanding of its nature. The reform through the market. The socialist commodity we have already carried out includes the economy cannot develop without the growth and (.levelopment of different types of ownership, public improvement of markets, so regulating through the ownership remaining predominant, and even allows market does not mean practising capitalism. the private sector to exist and develop. This Second, planning should be done according to the reform is determined by the actual condition of the principle of commodity exchange and the law of productive forces in the primary stage of socialism, value. The form of direct economic control that and it is the only way to promote their development. relies chiefly on mandatory planning cannot meet Some of the things we have introduced in the the requirements of the development of a socialist process of reform, such as expanded markets for commodity economy. We should not equate means of production, funds, technology and labour regulation through planning with mandatory service and the issuance of stocks and bonds, are planning. Gradually, the scope of mandatory phenomena which are not peculiar to capitalism but planning should be reduced by such means as arc bound to appear in the wake of large-scale, signing contracts in accordance with the principle of socialized production and the development of a exchange of equal value, contracts by which the commodity economy. Socialism can and should state places orders for goods with enterprises, and make use of them, trying at the same time to enterprises with one another. The state should minimize their negative effects in practice. In the gradually shift to using mainly indirect means to past too many mandatory targets were assigned to control enterprises. Third, the operating sphere of enterprises directly by the state, the state had a planning and the market covers the whole society. monopoly on purchase and marketing, and goods On the whole, under the new economic mechanism were distributed according to a system of supply "the state regulates the market, and the market

XI •i DOCUMENTS guides enterprises." The state regulates the relation system within enterprises, tighten labour discipline between supply and demand through economic, and enforce strict scientific management of legal and necessary administrative means and production; creates a favourable economic and social -- give workers and staff the opportunity to environment in which enterprises are guided display their enthusiasm and creativity and towards correct management decisions. The integrate the authority of managers with the role attainment of this goal is an evolutionary process, played by the workers and staff as masters of their and we must actively create conditions for it. enterprises, so as to form a new type of relationship At present, our main task in deepening the between managers and producers in which they reform is to change the managerial mechanisms of support each other and co-operate closely.The enterprises and, with that end in view, to institute different forms of the managerial responsibility supporting reforms in the systems of planning, system which we are now introducing, including investment, allocation of materials, finance, contracting and leasing, are useful experiments in monetary affairs and foreign trade. In this way we separating ownership from management, and we shall gradually establish the basic framework for a should improve them in practice. planned commodity economy. Various forms of a system of shares in 1. Invigorating enterprises owned hy the whole enterprises have appeared during the reform. These people by separating ownership from managerial include purchase of shares by the state, collective authority purchase by departments, localities and other Enterprises owned by the whole people cannot enterprises and purchase by individuals. This possibly be operated by the whole people. In system is one means of raising money for socialist general, it is not appropriate for the state to take enterprises and can be further implemented on a direct control over them either, or their vitality will trial basis. The property rights of certain small be stifled. In order to establish a planned state-owned enterprises can be sold to collectives or commodity economy, it is therefore essential to individuals. separate ownership from managerial authority, to 2. Promoting horizontal economic ties give enterprises real power of management, to The formation of horizontal economic ties is rationalize relations between owners, managers and an inevitable trend in the development of large- producers and to protect the legifimate rights and scale, socialized production and of a socialist interests of enterprises so that they are able to make commodity economy. In the past few years their own management decisions and take full horizontal economic ties and groups or associations responsibility for their own profits and losses. This of enterprises have multiplied rapidly, demonstra• will by no means change the nature of the ownership ting great vitality. We should take advantage of this of these enterprises, that is, ownership by the whole situation and promote such groups and associations people. On the contrary, it will make the enterprises in our effort to deepen the reform. more vigorous and fully bring out the superiority of The formation of ties between enterprises is the an economy based on public ownership. basic form of horizontal economic collaboration. The separation of ownership from managerial Wc should resolutely reject the concept of a self- authority can take varied forms, according to the enclosed natural economy and change the nature of different industries and to the size and backward state of affairs in which an enterprise, technological features of different enterprises. But whether big or small, is a self-contained unit. no matter what form of managerial responsibility Rather, we should promote the rational flow and system is adopted, it is necessary to do the reorganization of such essential factors of following: production as trained personnel, funds, tech• — use legal means in the form of contracts to nologies and resources through joint investment, define the relations between the state and mutual purchase of shares in enterprises and other enterprises and between the owners and managers means. We should place in the lead big and medium- of enterprises with regard to their respective sized enterprises and manufacturers of famous- responsibilities, powers and interests; brand, quality products, promote ties between — select qualified managers through competi• scientific research institutions and production units tion, and reward or penalize them mainly according -and establish groups or associations of enterprises, to the economic performance of the enterprises, so as to meet the demands of large-scale production including the increase or decrease in their assets, so and a division of labour based on specialization. Wc as to help a large number of capable and daring should permit enterprises to make their own entrepreneurs to emerge in the course of keen decisions about establishing associations with competition for markets; others, following the principles of enhancement of — introduce a system under which directors or strong points and elimination of weaknesses, managers assume full responsibility, improve diversification of form, voluntary participation, different forms of the economic responsibility mutual benefit and common progress. Wc should

XII prevent the use of administrative means to cobble organic whole, and none of them can be dispensed up "corporations" that are merely administrative with. Without macro-economic control, markets bodies. and enterprises will be thrown into chaos. But if we To develop horizontal economic ties, it is continue the past practice of the state having direct essential for cities to play their part, and especially control of enterprises, allocating the essential for large and medium-sized cities to become factors of production to them and giving them no modern, multi-functional economic centres. In the authority for management, it will be impossible to cities we should also streamline administration, establish a market and to build and expand a delegate more powers to lower levels and draw a planned commodity economy. We should therefore clear distinction between the responsibilities of the speed up the reform of the system of macro- government and those of enterprises. Cities should economic control with a view to keeping a basic open their doors wide on every side, not only balance between society's total supply and total functioning in their own interests but also serving demand, promoting scientific and technological surrounding rural areas and the economic areas progress and rationalizing the structure of with which they maintain economic ties. production. Henceforth, the chief function of 3. Speeding up the estahlishment and management through planning should be to improvement of a socialist market system formulate industrial policies and to hasten their The socialist market system should include not implementation by applying economic levers in an only a commodity market for consumer goods and all-round way. We should deepen reform of the for means of production but also markets for other monetary system, strengthen the position of banks essential factors of production such as funds, and their role in the system of macro-economic labour, technology, information and real estate. If control and exercise proper control over the volume there is only a commodity market it is impossible to of credit and over the amount of currency provided give play to the market forces. The socialist market in accordance with sound practice relating to system must be competitive and open. A currency circulation. With the People's Bank of monopolized or closed market provides no China taking the lead and the national banks incentive for commodity producers to raise their playing an important role, we must develop efficiency, and a self-enclosed market promotes different kinds of monetary institutions and employ neither rational division of labour at home nor different approaches and monetary means to collect international trade. and circulate funds, thus promoting co-ordinated To establish a socialist market system, we must economic growth and making the economic struc• energetically and steadily pursue our reform of the ture more rational. We should reform the fiscal and pricing system, rationalizing the prices of taxation systems, introducing lax categories and commodities and of the essential factors of determining tax rates in accordance with the production. We should gradually establish a system principles of keeping taxation fair and reasonable, under which the state sets the prices of a few vital encouraging competition and retlecting industrial commodities and services while leaving the rest to policies. A system of tax distribution should be be regulated by the market. The reform of the instituted to ensure a reasonable apportionment of pricing system should correspond to the revenues between the central authorities and local readjustment of incomes, so as to ensure that the authorities. Relations between the central and local people's actual living standards do not decline in the authorities and between the state, enterprises and course of reform but rise gradually as production individuals in terms of their economic interests increases. Efforts should be made to develop new should be handled correctly. lypes of institutions for commodity circulation, For a certain period of time the state will have foreign trade and banking as well as networks of to exercise direct control over a very few key agencies to provide technology, information and construction projects and special enterprises and service, all of which have full authority for over certain vital commodities that are in short management and full responsibility for their profits supply. But we should take into consideration the and losses. This is the way to promote the development of a market system. We should interests of all sides and improve the method of improve industrial and commercial administration control. and price control and enforce strict rules and We should draw up a complete set of economic regulations for market control so as to ensure good statutes as quickly as possible, improve judicial order. work and strictly enforce the law. We must exercise necessary supervision and control over ehterprises, 4. Gradually improving the macro-economic markets and all economic departments. We should control system based mainly on indirect control of tighten financial discipline, with a view to enterprises safeguarding the legitimate rights and interests of Exercising macro-economic control, invigora• both consumers and prodticers and the overall ting enterprises and enlivening markets form an interests of the state.

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5. Developing an economy with different types of workers receive some unearned income. Income of ownership, with public ownership remaining these types should be allowed, so long as it is predominant acquired legally. The policies of distribution we Public ownership should remain predominant formulate should encourage some enterprises and in the primary stage of socialist society. However, individuals to become prosperous before others other sectors of the economy that are not owned by through good management and honest work, thus the whole people are far from adequately widening the differences in personal income to a developed. Co-operative, individual and private reasonable degree. But at the same time, these sectors of the economy in both urban and rural policies should prevent polarization of rich and jf areas should all be encouraged to expand. The poor, enable all the people to move towards public sector of the economy itself takes many common prosperity and bring about social equity forms. In addition to enterprises owned by the. while improving efficiency. It is essential to adopt \ whole people and by collectives, new publicly effective measures to readjust excessively high " owned enterprises should be set up jointly through personal income and to bring to justice anyone who the efforts of units owned by the whole people and makes exorbitant profits through illegal means. The 'those owned by collectives. It is also necessary to set practice of allowing everyone to "eat from the same up publicly owned enterprises with shares pooled by big pot.' egalitarianism and jealousy of other different localities, departments and enterprises people's higher incomes still constitute the main and by other means. In different economic fields tendency in income distribution at present. We must and different localities, the proportions of the continue to tackle these problems both from an different types of ownership should be allowed to ideological perspective and in our practical work. vary. Where possible, we should introduce piece-rate The private sector of the economy is a sector wages and wages based on work quotas, which involves wage labour. But in socialist society, maintaining strict control over product quality and the private sector is bound up with the public sector, work quotas. which remains predominant and strongly influences In the early stage of reform consumption tends it. Practice has proved that a certain degree of to grow faster than production. This adversely development of the private sector promotes affects the stability of the economy, weakens production, stimulates the market, provides capacity for future economic growth and causes employment and helps in many ways to meet serious difficulties in the reform itself and if people's needs. It is thus a necessary and useful unchecked will eventually lead to a decline in the supplement to the public sector. We must formulate people's actual standard ofliving. The experience of policies and enact laws governing the private sector many developing countries shows that inflated as soon as possible, in order to protect its legitimate consumption inevitably saps the vitality of the interests and to provide it with more effective entire economy. For a long time to come, therefore, guidance, supervision and control. we must adhere to the principle of building our Chinese-foreign joint ventures, co-operative country through thrift and persistent hard work. enterprises and exclusively foreign-owned enterpri• We must take strict measures to prevent over- ses also constitute a necessary and useful expanded consumption. We must ensure that the supplement to China's socialist economy. We growth rate of consumption funds does not rise should protect the legitimate interests of foreign faster than the growth rate of national income investors and improve the investment environment available for distribution and that the growth rate | for foreign businessmen. of the average wages and bonuses of workers and ' 6. Adopting diverse forms of distribution, with other employees does not rise faster than that of distribution according to work remaining predomi• labour productivity. In the process of deepening the nant, and determining a correct policy in this regard reform, we must create self-regulating mechanisms for enterprises and at the same time work out The forms of distribution in the primary stage effective rules and methods for macro-regulation. of socialism should not be of one kind only. We must adhere to the principle that distribution In the last analysis, every measure taken to according to work remains predominant while deepen the reform should help improve the other forms of distribution are supplementary. In economic results in society. One major problem that addition to the main form of distribution according seriously affects economic results is the poor quality to work and earnings from individual labour, there of the products turned out by quite a number of may be the following: When enterprises issue bonds enterprises. We should realize that the quality of to raise funds, buyers receive interest; when shares products made in a country reflects on the quality of are issued, share-holders receive income in the form the nation as a whole. Departments, enterprises and of dividends; enterprise managers receive additional every member of society should work hard for income to compensate for risk-taking; owners of steady improvement in the quality of products private enterprises employing a certain number of made in China.

XIV We are faced with a most difficult task in catch up with the developed capitalist countries reforming the economic structure. We should economically and, politically, we shall create a eliminate or rectify those aspects of the relations of democracy that is of a higher level and more production that impede the expansion of our effective than the democracy of those countries. We productive forces, and we should establish new shall also try to produce more and better-trained organizations, new mechanisms and new standards professionals than they do. The merits of the reform necessary for expanding them. In the process of should be judged on the basis of whether these replacing the old structures with the new, objectives are attained. contradictions and problems will appear in our" China is a socialist country under the people's economic activities. They will be hard to avoid. The democratic dictatorship, and its basic political deepening of reform will bring even more profound system is good. However, there are major defects in changes in the relations between various interests in our system of leadership, in the organizational society and is bound to meet with resistance. We are structure and in our style of work. Chief among undertaking the reform in a still stringent economic these defects are overconcentration of power, a environment, which also makes for difficulty. serious degree of bureaucratism, and feudal Because we lack experience, it will be hard to avoid influences that are far from eliminated. The purpose slips in our work of guidance. The quality of many of reforming the political structure is to promote of our cadres and the level of people's consciousness what is beneficial and eliminate what is harmful and do not wholly conform to the requirements for to build a socialist democracy with Chinese developing a socialist commodity economy. It now characteristics. The long-range goal of reform is to seems that it will take a longer time to build the build a socialist political system with a high degree framework of the new structure than we had of democracy and a complete set of laws, a system estimated. On the one hand, we should further that is effective and full of vitality. And that is emancipate our minds and accelerate the reform something which cannot be achieved without with greater determination; on the other, we should sustained effort. fully understand the difficulty and complexity of Like the development of a socialist commodity reform. Bearing in mind the existing conditions, the economy, the building of a socialist democracy is a objective requirements of economic development gradual, cumulative process. Confronted as we are and the logic inherent in structural reform, we with the complicated social contradictions that arise should identify priorities and proceed by stages with in the drive for modernization, we need a peaceful adequate supporting measures, in order to social and political environment. We shall never guarantee steady and substantial progress in again allow the kind of "great democracy" that reform. undermines state law and social stability. The system of the people's congresses, the system of multi-party co-operation and political consultation under the leadership of the Communist Party, and V. Reforming the Political the principle of democratic centralism are the Structure characteristics and advantages of our system. We shall never abandon them and introduce a Western system of separation of the three powers and of The deepening of the ongoing reform of the different parties ruling the country in turn. In the economic structure makes reform of the political reform of the political structure, we must handle structure increasingly urgent. The process of properly the relationship between democracy and developing a socialist commodity economy should stability and between democracy and efficiency. We also involve the building of a socialist democracy. must overcome bureaucratism and feudal influence Without reform of the political structure, reform of so as to promote the reform of the economic the economic structure cannot succeed in the end. structure and the policy of opening up both The Central Committee of the Party believes that it internally and externally. The immediate objective is high time to put reform of the political structure of reform is to institute a system of leadership that on the agenda for the whole Party. Comrade Deng will help to raise the efficiency, increase the vitality Xiaoping's speech, "On the Reform of the System and stimulate the initiative of all sectors of society. of Party and State Leadership," delivered to an Every measure taken in the reform should serve this enlarged meeting of the Political Bureau of the objective and help to solve those problems for Central Committee in August 1980. is a guide to whose solution conditions are ripe. reform of the political structure. The purpose of reforming both the political 1. Separating Party and Government and economic structures is, under the leadership of The Communist Party is the leading force in the Party and the socialist system, to better develop building socialism in China. In the new situation the the productive forces and to take full advantage of Party's leadership can be strengthened only by the superiority of socialism. In other words, we shall improving the system, methods and style of

XV DOCUMENTS leadership. In the last few years we have worked county levels sheuld exercise political leadership in hard to improve the Party's leadership and have local work, carrying out-the line formulated by the achieved some progress. But one long-standing Central Committee and ensuring that the decrees of problem has not yet been completely solved: the the central government are implemented. Their lack of distinction between the functions of the principal responsibilities should be to carry out Party and those of the government and the directives from higher Party organizations and substitution of the Party for the government. Until from the Central Committee; to ensure the this problem is solved. Party leadership cannot be implementation in their local areas of directives really strengthened and other reform measures from governments of higher levels and from the cannot be smoothly carried out. Therefore, the key State Council; to propose policy decisions on to reforming the political structure is the separation important local issues; to recommend cadres for key of Party and government. posts in local state organs; and to co-ordinate This means the separation of the functions of activities of the various local organizations. The the Party and the government. It was under the relations between local Party committees and state Party's leadership that a Constitution was drawn up organs at the same level should be worked out for the country and laws were enacted, and the through practice and gradually become standard• Party must conduct its activities within the limits ized and institutionalized. The separation of Party prescribed by that Constitution and those laws. It and government should not be carried out at village was under the leadership of the Party that organs of and township level until it has been done at county state power, mass organizations and all kinds of level. In enterprises. Party organizations should economic and cultural associations were establish• supervise the work and ensure that it is ed, and the Party must ensure that those organs accomplished. Instead of attempting to provide exercise their functions to the full. It should respect centralized leadership, they should support the mass organizations, enterprises and institutions and directors and managers in their assumption of not monopolize the conduct of their affairs. The overall leadership. In institutions. Party organiza• Party exercises political leadership, which means tions should play the same role once a system is that it formulates political principles, points the introduced under which administrative heads political direction, makes major policy decisions assume full responsibility. and recommends cadres for the key posts in organs of state power. The principal method by which it The Party's organizational form and executive exercises political leadership in state affairs is as organs should be adjusted to conform to its new follows: through legal procedures what the Party form of activity and new methods of leadership. advocates becomes the will of the state, and the Henceforth the Party committee at a given level will people are mobilized by the Party organizations and not designate a full-time secretary or member of its the good example of Party members to implement standing committee, who holds no government the Party's line, principles and policies. The Party post, to take charge of government work. The and the organs of state power differ in their nature, executive organ of the Party committee should be functions, organizational forms and methods of smaller but more efficient. Party departments that work. It is necessary to reform the system of Party overlap their counterpart government departments leadership, to distinguish between the functions of should be abolished, and the administrative affairs Party organizations and those of state organs and to they are now managing should be transferred to rationalize relations between the Party organiza• competent government departments. The present tions and the people's congresses, the governments, practice in government departments of making the judicial organs, mass organizations, enterprises, leading Party members' groups responsible to the institutions and various other public organizations, Party committees of the next higher level which so that each performs its own functions. These have approved their establishment is not conducive relations should gradually become institutional• to unity and efficiency in government work; such ized. groups should therefore be gradually abolished. The Party's commissions for discipline inspection at As conditions are different in the central all levels should not deal with breaches of the law or departments, the localities and the grass-roots infractions of administrative regulations but should units, the concrete methods they use to separate the concentrate on fostering a strong sense of discipline, Party organizations and the government depart• thus helping Party committees to cultivate fine ments should be different. The Central Committee conduct on the part of their members. The practice should make policy decisions on such important of making Party organizations in enterprises and questions as China's internal affairs, foreign affairs, institutions directly responsible to the Party the economy and defence, recommend persons for organizations of higher administrative departments leading posts in the supreme state organs and should be gradually changed so that in future they exercise political'leadership in all fields. The local will be led by local Party committees. Party committees at the provincial, municipal and Separating the functions of Party and

XVI government is a major reform in the system of Party for enterprises and to supervise them, in accordance leadership. It must be pointed out that when there is with laws, regulations and policies. In the relations no distinction between Party and government, the between the Party and the government on the one Party's position is in fact lowered and its leadership hand and mass organizations on the other, it is weakened; only when the two are separated is it essential to give full play to mass organizations and possible for the Party to ensure its leadership and to self-managed mass organizations at the grass• improve its methods. When there is no distinction roots level [i.e., residents' and villagers' between Party and government, the Party has no committees— Tr.] so that the people will handle time or energy to attend to Party building; only their own affairs always in accordance with the law. when the two are separated is it possible to see that Localities, departments and units should all take "the Party handles Party affairs." When there is no the overall interests into account and conduct their distinction between Party and government, the affairs strictly in accordance with laws, regulations Party has to bear the burden of administrative work and policies. In delegating powers to lower levels, and may easily become one opposite of a we must focus on expanding the power of major contradiction or even the focal point of many cities, enterprises and institutions, in order to contradictions; only when the two are separated is it revitalize enterprises and to give cities a greater role possible for the Party to handle contradictions with in developing a socialist commodity economy. Once ease, assume overall control of a situation and co• it has been decided that certain powers are to be ordinate the work in all fields. When there is no delegated to cities, enterprises and institutions, they distinction between Party and government, the must not be withheld by intermediate administra• Party becomes the executive body; only when the tive levels. This devolution of power is an important two are separated is it possible for Party means of breaking down barriers between different organizations to exercise better supervision and departments and regions. effectively prevent or overcome bureaucratism. All members of the Party should eagerly plunge into the Delegating powers involves the reform of reform in order to bring about this historic change. many rules and regulations. To transform their 2. Delegating powers to lower levels functions and reform their working organs, Overconcentration of power is manifested not departments at different levels should _make only in the concentration of all power of investigations, listen attentively to the opinions of administrative, economic and cultural departments grass-roots units and work out detailed provisions. and mass organizations in the hands of leading 3. Reforming government organs organs of Party committees, but also in the Bureaucratism remains a serious problem in concentration of all power of grass-roots units in the political life of our Party and the state. For the hands of leading organs at higher levels. On the economic, cultural, social and historical reasons, one hand, our leading organs have taken charge of our struggle against it will last a long time. many matters which they should not and cannot Separating the functions of the Party from those of handle, or cannot handle efficiently, getting bogged the government, delegating more powers to lower down in routine work. On the other hand, the grass• levels and developing socialist democracy will all roots units lack the power to make decisions, and it help overcome bureaucratism. It should be noted is hard to fully arouse the initiative of the people. that overstafflng, overlapping and unwieldiness of The way to solve this problem is to delegate power government organs, confusion of their responsibili• to lower levels. This devolution of power has proved ties and buck-passing are also major causes of effective in rural reform and should be carried out in bureaucratism. We must therefore resolve to reform all other fields. these organs from top to bottom. We propose that the State Council begin immediately to work out a Decisions and functions that can be properly plan for restructuring the organs of the Central handled at lower levels should be handled there. Government and that the plan be submitted to the This is a general principle. In the relations between First Session of the Seventh National People's the central authorities and the local authorities, it is Congress for examination and approval and then essential to gradually distinguish between the duties implemented. of each, while ensuring that decrees of the central To avoid repeating the old practice of government are implemented across the country. •'streamlining - swelling — re-streamlining — re- Thus local matters will be handled by local swelling." we must concentrate on a change of authorities, while the central authorities determine functions, which is the key to structural reform. We major policies and exercise supervision. In the should reduce and merge departments that are in relations between the government and enterprises charge of managing enterprises and do the same and institutions, it is essential to delegate powers of with specialized sections in departments that are operation and management to the latter so as to let charged with overall responsibilities. This should be them manage their own affairs with full authority. done in accordance with the requirements of The function of the government is to provide service economic restructuring and of separating the

XVII DOCUMENTS

functions of government from tiiose of enterprises, overconcentrated and the people who handle so that government will change from mainly direct personnel affairs lack professional knowledge; the to mainly indirect control of enterprises. With a methods are outdated and simplistic, which hinders view to arranging the organs in a more scientific and the intellectual growth of talented people; the comprehensive way, we should strengthen the management system is flawed and there are no laws departments which are consulted in the decision• governing the way personnel are used. As a result, making process, as well as those which are we have for a long time been faced with two major responsible for regulation, supervision, auditing problems: First, it is difficult for promising young and provision of information and improve the people to fully display their talents; and second, it is working methods of those which have overall difficult to avoid malpractices in the use of people. responsibilities, thus enhancing the government's To reform the personnel system relating to cadres ability to regulate and control macroeconomic we must alter the single category of "state cadre" activities. In reorganizing "corporations" that are and convert the current unified central management merely administrative bodies and organs that have into a scientific system of management by been upgraded in recent years, reducing the staff of establishing a number of categories. We must overmanned departments and dissolving organiza• abandon the current practice of managing all tions that were set up simply to create jobs, we personnel according to the same single pattern should follow the principle of simplified applied to Party and government cadres and administration, unified action and higher efficiency. institute different management systems for different categories of cadres. And we must change the To ensure the smooth progress of the structural reform, we should make appropriate personnel present personnel system, which is not governed by changes in the organs to be restructured, seeing to it legislation or democratic means, into a system that proper arrangements are made for everyone governed by law and supervised by the general and that work proceeds normally. The main goal in public. dealing with the question of personnel is to The emphasis of the current reform of the rationalize an organ's structure and improve the personnel system relating to cadres is on quality of its work. We should combine the efforts establishing a system of public service. This means to change and train personnel and should work out formulafing laws and regulations for the scientific plans to assign a number of people to state organs management of government personnel who exercise and economic and cultural organizations that need the administrative power of the state and perform improvement. official duties. These public servants are to be To consolidate the achievements of structural classified in two categories: those handling political reform and to institutionalize administrative affairs and those doing professional work. Public management, we must improve administrative servants in the political affairs category, whose legislation, drawing up basic norms and procedures tenure in office will be for a specified period of time, for administrative work. We should improve must be managed strictly in accordance with the current regulations governing administrative relevant provisions of the Constitution and the organs and formulate rules specifying their size, in Organic Law and be subjected to supervision by the order to control the establishment of such organs public. The Central Committee of the Party and and their manning quotas through legal and local Party committees at various levels will budgetary means. We should devise an recommend candidates in the political affairs administrative responsibility system at various category at the corresponding levels to the national levels to improve work quality and efficiency. We or local people's congresses, through legal should formulate an administrative procedural law, procedures, and will supervise and manage those strengthen supervision over administrative work public servants in this category who are Party and personnel and investigate cases of neglect or members. Public servants in the professional work dereliction of duty and other breaches of law or category, whose tenure in office is to be permanent, discipline by administrative personnel. will also be managed in accordance with the law 4. Reforming the personnel system relating to governing public servants. For posts in this cadres category, people will have to pass a statutory We cannot stimulate the cadres' energy, examination in open competition. The job efficiency and initiative without reforming the responsibilities of such public servants will be personnel system. Over the past few years we have clearly defined and their performance will be taken some important measures and accumulated evaluated in accordance with statutory standards some useful experience in this regard, but serious and procedures. Their promotion, demotion, defects still exist in the personnel system relating to reward and punishment will be based mainly on cadres. These are mainly as follows: The concept of their work results. Their rights to training, wages, the "state cadre" is too general and lacks a scientific welfare and retirement will be guaranteed by law. classification; the power of cadre management is The implementation of this new system governing

XVIll public servants will make it easier for the Party to to move rationally and have a choice of jobs. The reinforce and improve leadership over personnel idea of giving priority only to seniority should be work, facilitate the growth of outstanding cadres in eradicated, along with other outworn concepts that both categories who possess political integrity and stifle people's initiative and creativity. In this way, professional competence, and help to improve the people can put their specialized knowledge to best efficiency of government work and the stability of use and give free play to their strong points, and state administration. It will be a considerably long they will feel they have bright prospects. This will process to establish and develop such a system. We make it possible to revitalize the Party and state should lose no time in drafting rules and regulations organs as well as society as a whole. concerning public servants, working out supporting 5. Establishing a system of consultation and measures, setting up institutions to manage such dialogue personnel and making preparations to found a state To correctly handle contradictions and administrative college. reconcile various social interests is an important In addition to establishing the public service task in a socialist society. Only when the leading system, we should work out different methods for bodies at all levels listen attentively to the views of managing personnel of different categories. This the masses can they gear their work to actual should be done in accordance with the principles of conditions and avoid mistakes. And only when they separating Party and government, separating the let the people know what they are doing and what functions of government from those of enterprises difficulties they face can they secure the people's and ensuring that administrators in charge of understanding. There should be channels through personnel have a command of professional which the voices and demands of the people can be knowledge so that they will do their work more easily and frequently transmitted to the leading intelligently. This means chiefly that the leading bodies, and there should be places where the people members and working personnel of a Party organ can offer suggestions or pour out any grievances will be managed by the Party committee at the they may have. Different groups of people may have corresponding level; th^t the leading members and different interests and views, and they too need staff of organs of state power and of judicial and opportunities and channels for the exchange of procuratorial organs will be managed according to ideas. It is therefore imperative to develop a system a system to be established later, which will be similar of consultation and dialogue, so that what is going to the one applying to public servants; and that the on at higher levels can be promptly and accurately leading members and staff of mass organizations made known to lower levels and vice versa without and the managerial personnel of enterprises and impediment, thus enabling people; at all levels to institutions will, in principle, be managed by the understand each other. organizations and units in which they work, in The basic principle for establishing a system of accordance with their own respective rules and consultation and dialogue is to carry on the fine regulations. tradition of "from the masses, to the masses" and to Whichever management system is applied in make public the activities of the leading bodies, each particular case, it is necessary to stress work letting the people know about important events and results, encourage competition and ensure the discuss important issues. The first thing to do now is exercise of open, democratic supervision. to formulate regulations regarding consultation Introducing of competition into the selection and dialogue. These should clearly define which process for enterprise managers has created problems are to be solved by which units or unprecedented conditions for the emergence of organizations, through consultation and discus• outstanding entrepreneurs and specialists of sion. The consultation and discussion on issues that various kinds. Furthermore, it has brought about are important at the national, local or grass-roots and will continue to bring about a series of changes level should be conducted at that level. Leading in the personnel system of enterprises. We should bodies at all levels should make this a top priority in adapt ourselves to these changes and go on their work. While opening new channels for summing up our experience with a view to consultation and dialogue, we should make better establishing a new and improved personnel system use of existing ones. We should provide wider in enterprises. Competition should also be coverage of the activities of the government and the introduced into the selection of other professionals. Party through all forms of modern mass media, to In all trades and professions, diverse methods and give scope to the supervisory role of public opinion, systems with distinctive features of their own should to support the masses in their criticism of be developed to facilitate the growth of different shortcomings and mistakes in work, to oppose types of specialists and entrepreneurs who will bureaucratism and in general to combat all emerge in large numbers and quickly become the unhealthy tendencies. mainstays in their fields. Both inside and outside the 6. Improving a number of systems relating to Party, conditions should be created to enable people . socialist democracy

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The essence of socialist democracy is that the them to better express and defend the specific people are masters of the country, genuinely interests of the masses they represent, while enjoying all citizens' rights and the power of safeguarding the overall interests of the people administering the state, enterprises and institutions. throughout the country. The mass organizations, In building socialist democracy at the present stage, too, should undertake organizational reform, we should place emphasis on practical results and changing their pattern of functioning by actively on arousing the initiative of the grass-roots units participating in consultation and dialogue, and the people. We should start with things we are democratic management and democratic super• able to do, concentrating on improving a number of vision and focusing their attention on the grass• basic systems. roots units. And if they want to win the trust of the The system of people's congresses is the people, especially those at the grass-roots level, they fundamental system of government in China. In should also rid themselves of their official airs and recent years the people's congresses at various levels overcome the tendency to become mere- have made much progress in their work. In the years administrative institutions. ahead, they and their standing committees should In the past few years China's elections have continue to improve the way they function and to become more and more democratic. However, the strengthen their work of legislation and supervision electoral system has not been fully and effectively through law. They should maintain closer contact with the people in order to be better able to implemented and needs to be improved. We should represent them and be supervised by them. respect the will of the voters and ensure that they Meanwhile, the National People's Congress, and have more options in elections. We should continue particularly its Standing Committee, should be the practice of holding elections with more strengthened organizationally, and the-committee candidates than posts, as prescribed by law, and members should gradually become younger in improve procedures for nominating candidates and average age and serve full time. In addition, the methods of publicizing them. For instance, the Standing Committee and the special committees of present practice of setting rigid quotas for different the Congress should improve their rules for geographical areas when nominating candidates for discussion and their working procedures, so that the election of deputies to congresses at various they will have adequate rules and regulations to levels tends to prevent the election from fully abide by. reflecting the will of the voters. In order to have candidates who represent broader sections of the The Chinese People's Political Consultative people, therefore, we shall introduce the practice of Conference is a patriotic united front organization electing deputies not only from geographical areas, that comprises all of China's democratic parties, the as is done at present, but also from different walks people's organizations and outstanding individuals of life. from all walks of life. It should strengthen itself Institutionalizing democracy in grass-roots organizationally so as to make political units provides the foundation for ensuring that the consultation and democratic supervision a regular working class and other sections of the people are practice where important policies of the state and masters of the country, as well as for mobilizing the major issues of the people's life are concerned. initiative of people in all quarters and maintaining While upholding the principles of "long-term co• stability and unity in society. Since from time to existence and mutual supervision" and of "treating time the rights of the masses are encroached upon, each other with all sincerity and sharing weal or we should enact laws governing the press, woe," we should improve the system of multi-party publication, association, assembly and procession, co-operation and consultation under the leadership and establish a people's appeals system, so as to of the Communist Party, with a view to promoting guarantee the citizens' rights and freedom as the role played in China's political life by stipulated by the Constitution. At the same time, we democratic parties and patriots without party should put an end to abuses of those rights and affiliation. freedoms. It must be pointed out that leadership The trade unions, the Communist Youth characterized by feudal, patriarchal practices is still League, the Women's Federation and other mass found in some departments and grass-roots units. organizations that have always been a bridge To eliminate the conditions that allow such linking the Party and government with the working practices to persist, we should formulate rules and class and other sections of the people have an regulations promoting a rational flow of personnel, important role to play in the implementation of build a labour arbitration system and promote the socialist democracy. It is essential for Party and socialization of public welfare services. government departments to maintain harmonious As China is a multi-nationality country, relations with these mass organizations so that the safeguarding the unity of the motherland, latter can carry out their work independently in upholding equality and solidarity among the light of their own characteristics. This will enable nationalities and promoting their common

XX prosperity are of vital importance to the country's suited to our drive for modernization in economic, future. It is therefore imperative to enhance the political, cultural and other fields under conditions regional autonomy of minority nationalities and of peace, or to the development of a socialist devote great effort to training cadres from among commodity economy. We should make a historical them. We should continue to consolidate the great analysis of this state of affairs. The political unity of all our nationalities, develop socialist structure was the product of the historical relations of equality, solidarity and mutual conditions of the time, but today things have assistance among them, educate all Party members changed. The cause of the Party has progressed, and in implementing the Party's policy concerning it is therefore necessary to reform this structure. nationalities and encourage them to do their best in This is a difficult and complex task, so we must this regard. adopt resolute yet cautious policies, trying to implement them in a guided and orderly way and to 7. Strengthening the socialist legal system advance the reform as steadily as possible. In this Socialist democracy is inseparable from a period of transition from the old structure to the socialist legal system. Without stability and unity new, we should make special efforts to ensure that throughout the society, we can succeed neither in work is co-ordinated and conflicts are avoided. In economic development nor in the reform of pursuing reform, we must stress experimentation, economic and political structures. In exercising encourage exploration, seek practical interim democracy and dictatorship in all spheres of activity methods and measures and advance one step at a - political, economic and social — we should see to it time. Because conditions are different in different that there are laws to abide by, that laws already areas, we cannot simply ask all areas to do the same enacted are observed and enforced to the letter, and thing at the same time. In the autonomous minority that violators are brought to justice. nationality areas and outlying districts in We must attend to legislation and to economic particular, we should adopt prudent measures development and reform at the same time. During which suit the local conditions, while in the special the whole process of reform we must go on building economic zones we can afford to be more fiexible. In our legal system. On the one hand, we should the army the reform has already achieved important improve legislation and the procedures for law results. Since things are different there, plans for enforcement, enable the judicial organs to exercise further reform will be studied and decided upon independent authority, as prescribed by law, and separately by the Military Commission of the enhance citizens" awareness of law; on the other Central Committee. hand, we should see to it that legislation guarantees The immediate objective for the reform of the good order in economic development and reform political structure is limited. However, when that and consolidates achievements scored in reform. objective is achieved, it will lay a sound foundation We should try to define, in terms of laws or rules, for socialist democracy and for the realization of what should be encouraged and what should be our long-range objective. This is a magnificent rejected. Only in this way can we bring about a new undertaking, and all Party members should take the standard for political, economic and social initiative in the reform. Party organizations at all activities. And only in this way can we levels are expected to provide more effective institutionalize various aspects of the society: the leadership over the reform and to take the lead by relations between Party and government depart• reforming themselves. ments on the one hand and public organizations on the other; the activities within government departments; the relations among the central authorities, local authorities and grass-roots units; VI. strengthening Party Building the training, selection, employment and replace• ment of personnel; democracy at the grass-roots While Carrying Out Reform and level; and consultation between leadership and the the Open Policy rank and file. In short, through reform we should gradually establish a legal framework for our The Chinese Communist Party is a party socialist democracy and institutionalize it. This is a armed with Marxism-Leninism and Mao Zedong fundamental guarantee against a recurrence of the Thought, a strong party that has been tempered in "cultural revolution" and for lasting political long years of struggle. To accomplish the arduous stability in the country. and complicated tasks defined at this congress and Our current political structure, which took to better shoulder the great historic responsibility of shape during the revolutionary war years, was leading the people in building socialism with basically established in the period of socialist Chinese characteristics, we must study the theory transformation. It developed in large-scale mass and practice of Party building under new conditions movements and in the process of constantly and further change those ideas and practices that do intensified mandatory planning. It is no longer not meet the needs of the new situation, so as to

XXI DOCUMENTS elTectively strengthen our work in this area. set forth the principle of making the ranks of cadres Since Party building has always been closely more revolutionary, younger, better educated and connected with ihe Party's basic political line, all more professionally competent. That principle has Parly work in the new period must ensure the proved correct in practice. The most important implementation of that line. This means thai Party criterion for judging whether a cadre is building must undergo changes in order to suit the revolutionary is whether he is firm in implementing new circumstances brought about by reform and the Party's basic line. We should place in important the open policy. This guiding ideology should be positions those cadres who have both ability and embodied in the Party's ideological education, its political integrity and who are fair and honest, that organizational building and its work style. is, cadres who are loyal to the Party's line and can In ideological education, the Party must implement it creatively, rather than those who propagate iis entire basic line, emphasizing the indulge in empty talk and do nothing practical for central task of economic development and the two socialist modernization because they have little basic points, namely, adherence to the four cardinal enthusiasm or sense of responsibility for it. A principles and implementation of reform and the cadre's merits are to be judged by his performance open polic>. Party schools and Party organizations in adhering to the four cardinal principles and to at all levels should conduct regular, intensive reform and the open policy. We must not hesitate to promote those who have made actual contributions education among members, in the light of the to reform and the open policy and to socialist realities prevailing in the primary stage of socialism, modernization and who have won the recognition helping them to learn more about the Party and its and trust of the people. We should have the courage basic line. Our goal is that all Party members, and to place heavy responsibilities on outstanding particularly leading cadres, should be united in their younger cadres. We should cherish and support thinking and action and become vanguard fighters cadres who dare to explore new ways in reform, who work conscientiously to accomplish the Party's allow them to make mistakes and help them sum up tasks, as well as better-educated, self-disciplined their experience constantly so that they will enhance model workers with high ideals and moral integrity. their ability and learn and mature through practice. To reform the Party's work in propaganda and in That is the only way to revitalize leading bodies at ideological education, we must get rid of formalism all levels. In our efforts to promote younger cadres and emphasize practical results. We can never go to leading posts, we should now focus on members back to the closed society of the past, when people of the central leading bodies. We propose that this were forbidden contact with ideological trends of congress take a major step in this direction. While different sorts. Still less can we evade problems of the leading members of the Party's local and grass• understanding that may arise among the people in roots organizations should be younger, we should the course of construction and reform. We must not rigidly demand that the average age of leading abandon empty Party jargon and conduct groups be lowered progressively at provincial, propaganda and education utilizing the personal prefectural, county and grass-roots levels. experiences of the people in a way that they can Attention should be paid to the age structure within appreciate and understand, so that the four cardinal each leading group. While persevering in the effort principles and reform and the open policy will truly to make the cadre ranks better educated and more take root in their hearts. professional, we must also take into consideration Reform and the open policy and the growth of the different requirements of different jobs. the socialist commodity economy require that we Progress has been made in recent years in the co• stress and improve the Party's ideological and operation between old and new cadres and the political work. The process of reform and opening succession of the new to the old, and the leading to the outside world liberates people's thinking to groups at all levels are now basically up to the an extraordinary degree, and that is a good thing requirements of our Party's policy. We should and a natural historical phenomenon. But it also continue to strengthen and improve the leading means that we must carry on the fine tradition of the groups, making appropriate adjustments while Party's ideological and political work and make a maintaining stability. success of such work in all fields of construction and reform, employing effective means adapted to the To consolidate and develop the Party's correct new situation. Thus we shall stimulate people's line, to make its decision-making process more socialist initiative, creativity and dedication and democratic and scientific, and to give full play to the rally the whole nation to the magnificent cause of enthusiasm and creativity of Party members and building socialism with Chinese characteristics. organizations at all levels, it is of vital importance to The quality of our cadres is decisive for the strengthen the systems of the Party. Furthermore, implementation of the Party's line. In conformity promoting democracy among the people through with the political line formed since the Third the example of inner-Party democracy is a feasible Plenary Session of the 11th Central Committee, we and effective way to develop socialist democracy.

XXII Strengthening the Party's collective leadership and common in the past, such as subjectivism, coercion democratic centralism should start with the Central and commandism, practices that resulted in setting Committee. This should chiefly include the excessively high targets, giving arbitrary directions following: and resorting to struggle and punishment without - establishing a system of regular work reports good reason. Party organizations at all levels as well to the Political Bureau of the Central Committee by as individual Party members, including the vast its Standing Committee and to the plenary sessions majority of cadres, have been faithfully and of the Central Committee by the Political Bureau; enthusiastically serving the people, doing solid - appropriately increasing the number of work and demonstrating their creativity. It should plenary sessions held by the Central Committee be recognized that the ties between our Party and each year so that it can play a greater role in the people have been greatly cemented. Reform of collective decision-making; the economic and political structures and - formulating work rules and a system for separation of Party and government will help holding democratic meetings of the Political prevent the emergence of bureaucratism inside the Bureau, its Standing Committee and the Secretariat Party and indeed make our Party a staunch force in of the Central Committee, so as to institutionalize the struggle against it. The people complain a great collective leadership and place Party leaders under deal now that a small number of Party members, more strict supervision and control. Local Party particularly leading cadres, have abused their power organizations at all levels should formulate and for private gain at the expense of the people's improve corresponding rules of procedure, interests, hindering the smooth progress of the including a voting system and a system for reform and implementation of the open policy and democratic meetings. The inner-Party electoral damaging the Party's prestige. This is a grave system should be reformed and improved, and problem which we must take seriously and tackle in explicit provisions should be worked out for earnest. nominating procedures, with more candidates for Damage wrought by the "cultural revolution" election than there are posts to be filled. In the near made it necessary for us to concentrate for a certain future this practice of presenting more candidates period of time on consolidating the Party. In than posts should also be applied in the election of general, over the past few years Party consolidation deputies to Party congresses at all levels, members has been successful. At the same time, however, it and secretaries of grass-roots Party committees, must be recognized that remedying defects in the members of local Party committees and their Party's ideology, organization and work style is a standing committees, and members of the Central regular, long- term task. It is impossible to solve all Committee. The democratic rights of Party the problems merely through a certain period of members as prescribed by the Party Constitution Party consolidation, because new problems will should be protected by specific rules. Infringement continue to crop up after the old ones are solved. of the rights ofParty members is a violation of Party Now that our Party is in power, it must stand the discipline, and in such cases disciplinary measures test of power. Now that it is providing leadership should be taken. Channels for inner-Party for reform and for opening to the outside world, it democracy must be widened and democratic must also stand the test of that endeavour. This is a activities improved so as to enable members to keep crucial test which we must uudergo in Party better informed about inner-Party affairs and have building during the new period. In our judgement, more opportunities to involve themselves directly in the Party as a whole can stand severe tests, and it is them. strong enough to combat all kinds of negative and When a party is in power, its members tend to decadent phenomena. But we must recognize that a become divorced from the masses, and that is much small number of Party members may fail these tests. more harmful to the people than it would have been In the past few years there have been frequent cases before the party came to power. Under the new of tax evasion, smuggling, trafficking in smuggled circumstances of reform and opening to the rest of goods, bribery, extortion, embezzlement and theft, the world, it has become even more important to moral degradation, violation of the law by persons improve the Party's work style. Since the Third in charge of executing it. divulgence of state secrets Plenary Session of the 11th Central Committee in and economic information, breach of discipline in December 1978, the Party has restored its fine dealings with foreigners, favouritism in making tradition of integrating theory with practice, appointments and vindictive attacks on others. We maintaining close ties with the masses and certainly must not change our general principles conducting criticism and self-criticism. Its line and and policies of reform and opening to the outside policies have embodied the supreme interests of the world just because of these few cases of corruption, people and promoted the growth of the productive or bring our work of economic development and forces. Reform and the open policy have helped to reform to a halt in order to concentrate on sweeping substantially reduce negative practices that were the bad practices away. Nevertheless, we must XXIII DOCUMENTS

combat them as we go on with that work. The inner- appropriate leading posts. We should constantly Parly struggle against corruption is unavoidable recruit into the Party advanced people who have when we are carrying out reform and the open emerged in the course of the reform and opening to policy. If we tolerate decadent elements in the Party, the outside world and who are qualified for the whole Party will decline. We should, of course, membership. Only by upholding the good can we educate Party members who have failed to stand the suppress the bad. We should promptly commend tests by talking with them in a kindly way. But those comrades who are staunch Party members experience has shown that we cannot completely with a spirit of voluntary devotion, who serve the solve the problem through education alone; we people wholeheartedly, putting the interests of the must also be strict with Party members and enforce people above everything else, and who implement rigorous Party discipline. Corrupt members who the Party's policies and accomplish the Party's tasks have done harm to the cause of the Party and the in an exemplary way. As their principal day-to-day people must be resolutely expelled. Once work, grass-roots Party organizations should discovered, such people must be removed provide constant education, maintain strict immediately, no matter how many they are. We can supervision, carry out criticism and self-criticism, in no way tolerate or connive at their wrongdoing. strengthen Party discipline, expel degenerates and properly handle those who are not entirely qualified The strength of a proletarian party and the role for membership, admit excellent people, encourage it can play are not decided by the number of its healthy practices and resist unhealthy ones. members, but by their quality, by their firmness in Through the exemplary vanguard role of Party implementing the party's line and by their loyalty to members, the grass-roots organizations will be able the catise of communism. For a long period in the to unite the people around themselves and become a past there was a tendency to neglect the quality of powerful fighting force. Leading organizations of new members admitted to the Party. As a result, the Party are responsible for guiding the grass-roots there are some members who are not qualified or organizafions in this work. If the day-to-day jobs not fully qualified for membership. Therefore, in are done well, it will mean that under the new order to maintain high standards and improve the historical circumstances we have discovered a new quality of Party members, we must not only expel approach for Party building through reform and the few degenerate members but also concentrate through the establishment of new systems, instead on educating the great majority. The Party is the of through political movements. vanguard of the working class, a vanguard with a Reforms, particularly reform of the political strong sense of organization and discipline. To be a structure, will bring our Party fresh vitality. We Party member, one must me,et the qualifications for must adapt ourselves to the tremendous change and membership, subject oneself to strict Party do a good job of building this great Marxist Party of discipline and play the exemplary role required. ours. Only thus can our Party, sound and strong, Even stricter rules should be applied to Party remain in the forefront of reform and the members who work in leading Party and modernizadon drive, a vigorous Party that has the government organs, especially those in principal courage to undertake reform, a Party that is strictly positions. In the years of revolutionary war. Party disciplined, honest and fair-minded in performing members had to go through the test of risking their its functions, a Party that serves the people with lives. Today they must stand the test of holding outstanding success by selecting and appointing office and working for reform and the open policy. talented, capable people. Unlike non- Party people, they must at all times be ready to sacrifice their personal interests for the benefit of the state and the people. It is in this sense that the title of Party member is glorious. The VII. striving to Win New Victories requirements set in the Party Constitution obviously are not meant for non-Party people, but for Marxism in China they must be met by Party members. Those who fail to meet them, who fail to fulfil the duties stipulated in the Party Constitution and refuse to mend their Socialism with Chinese characteristics is the ways in spite of education, should be persuaded to product of the integration of the fundamental tenets withdraw from the Party or have their names struck of Marxism with the modernizadon drive in China from the Party rolls. This is necessary to maintain and is scientific socialism rooted in the realities of the Party's status as vanguard of the working class. present-day China. It provides the ideological basis Party organizations at all levels should sincerely that serves to unite all the Party comrades and all unite with those who have left the Party and should the people in their thinking and their action. It is the in no way attack or discriminate against them. They great banner guiding our cause forward. can remain good citizens and as such give their best Marxism is a science that keeps developing in to society. Some may even continue to hold practice. In the contemporary era it is generally

XXIV recognized that Marxism needs further extensive — that the fundamental task for a socialist development. The world is undergoing tremendous society is to develop its productive forces and change, civilization is advancing very rapidly and concentrate on a drive for modernization; new vistas are opening before the working class and — that the socialist economy is a planned the labouring people. All this requires Marxists to commodity economy; widen their vision, develop new concepts and enter a — that reform is an important motive force for new realm. the development of a socialist society and that The historic contribution of Marx and Engels opening to the outside world is indispensable for the is that they transformed Utopian socialism into realization of socialist modernization; scientific socialism. In theory and in practice — the — that socialist democracy and an advanced practice of building socialism in one country, the socialist culture and ideology are essential practice of building it in many countries and the characteristics of a socialist society; practice of introducing reforms in socialist -- that the two basicpoints -- adherence to the countries in the contemporary world — scientific four cardinal principles and adherence to_ the socialism broadens and deepens the understanding general policy of reform and opening to the outside of socialism, by integrating the scientific theory of world — are interrelated and neither can be socialism with the practice in various countries and dispensed with; with the developments of the times. In this process, — that the reunification of the motherland it is only natural that people will discard some theses should be achieved by applying the principle of which are Utopian because they were formulated by "one country, two systems"; our predecessors within the limits of their historical conditions. It is also natural that people will reject — that a good work style is vital to the very dogmatic interpretations of Marxism and existence of a party in power; erroneous viewpoints imposed on it, and will — that relations with Communist Parties and further develop the theory of scientific socialism on other parties in other countries should be developed the basis of new practice. on the basis of the principles of independence, complete equality, mutual respect and non• The integration of Marxism with practice in interference in each other's internal affairs; China has been going on for more than 60 years. — that peace and development are the During this time there have been two major historic outstanding issues in the world today. These leaps. The first took place during the new- fundamental views constitute an outline of the democratic revolution, when the Chinese theory for building socialism with Chinese Communists, after repeated experimentation and characteristics. They provide initial explanations of learning by trial and error, found a way to make such basic questions as the stages of China's revolution based on China's particular conditions socialist development, its tasks, motive forces, and led the revolution to victory. The second took conditions, planning and the international place after the Third Plenary Session of the llth environment. By elaborating these ideas, the Party Central Committee, when, having analysed both the positive and negative experience of more than 30 has scientifically charted the course for our years since the founding of the People's Republic advance. and studied the experience of other countries and The crucial point here is that we must discard the world situation, the Chinese Communists found historical idealism, which deals with socialism in a way to build socialism with Chinese abstract terms without any consideration of the characteristics, thus ushering in a new period of productive forces, and make a fundamental socialist development in the country. distinction between scientific socialism and all forms of utopianism. In the process of deepening its understanding Marxist historical materialists have held all of socialism since the Third Plenary Session of the along that the productive forces are ultimately the 11 th Central Committee, our Party has developed a decisive factor in social development. Only when series of theories and views in the realms of the relations of production and the superstructure philosophy, political economy and scientific conform to the mode of the productive forces can socialism. They include the following: they promote such growth. Unless the productive -- that it is necessary to emancipate the mind, forces are developed, there can be no socialist seek truth from facts and take practice as the sole society, and socialism cannot advance from one criterion of truth; stage to another until the realization of -- that people must take their own road in communism. As early as the revolutionary war building socialism in the light of the specific years, our Party already made it clear that in the last conditions of their own countries; analysis the impact, good or bad, great or small, of - that there must be a very long primary stage the policy and practice of any Chinese political in the building of socialism in a country that is party upon the people depends on whether and how much it helps to develop their productive forces, on backward economically and culturally;

XXV m DOCUMENTS whether it fetters or liberates those forces. At that through practice. We shall not let ourselves be time we had to take class struggle as our central bound hand and foot by treating isolated theses task, because if we wanted to liberate the productive from books as dogmas, nor shall we regard things forces we had first of all to overthrow the rule of the that have proved effective in practice as flawless reactionary classes so as to free the labouring people models. We must encourage people to explore new from political oppression and economic exploita• paths in practical work and to adhere to the policy tion. Now that the exploiting classes have been of "letting a hundred flowers bloom and a hundred abolished, however, things are different: the schools of thought contend" in theoretical research labouring people have become masters of the The standpoint of experience and practice is the country, and we have entered the stage of socialist primary and basic standpoint in the theory of development. Developing the productive forces has knowledge. Without exploration, without innova• therefore become our central task. Our ability to tion, and without comparison between different make China prosperous and strong, to make the experiments and contention between ~ different people rich, to make education, science and culture views, our cause will be lifeless. The hope for flourish, to consolidate and expand public constant growth in our theory and our cause as a ownership and the state power of people's whole lies in our determination to give full play to democracy - in a word, our ability to take full , the scientific spirit and creative vitality of Marxism advantage of the superiority of socialism and to V and to arouse the courage of the whole nation to steadily enhance its appeal — hinges, in the experiment and innovate. final analysis, on the growth of the productive forces. Whatever is conducive to this growth is The overwhelming majority of comrades in our in keeping with the fundamental interests Party support the line followed since the Third of the people and is therefore needed by socialism Plenary Session of the 11th Central Committee, and allowed to exist. Conversely, whatever is adhering to Marxism and standing for reform and detrimental to this growth goes against scientific the open policy. Those who stick to rigid concepts socialism and is therefore not allowed to exist. In and those who negate Marxism are a very small these historical circumstances, the growth of the minority. However, wrong thinking is often found productive forces is the immediate and decisive in our Party. The same person may see only one side criterion. in one situation and see only the other side in another. When a person temporarily falls behind Why must we adhere to the four cardinal the reform, we should not dismiss him as being principles? Because in contemporary China that is rigid. Conversely, when in the course of the only way we can fully guarantee the growth of emancipating his mind a person expresses views that the productive forces. Why must we persevere in are a bit too liberal, we should not say that he is reform and opening to the outside world? Because advocating bourgeois liberalization. In the final that is the only way we can liberate the productive analysis, wrong and one-sided thinking is caused b\ forces that are still fettered and promote their rapid the separation of subjective thinking from objective growth. Judging Ufe by abstract principles or reality. The proper way to eliminate one-sidedness Utopian models instead of by the growth of the is to encourage people to adapt their work to the productive forces will only discredit Marxism. We needs of modernization and reform, to the realities recognize and attach great importance to the of the world and to the future. Our fundamental enormous influence exerted by the relations of slogan remains: ""Emancipate the mind, seek truth production and the superstructure. But only when from facts, unite as one in looking to the future." In we recognize the decisive role of the productive the great historical process of reform and opening forces and acknowledge them as fundamental can to the outside world, we are faced with many we correctly handle the contradictions between the contradictions and difficulties, and it is particularly productive forces and the relations of production necessary for the comrades of the whole Party to and between the economic base and the close ranks, unify their thinking and understanding superstructure. Only then can we guarantee that and join their efforts to blaze new trails. As long as changes in the relations of production and in the the ranks of the Party are closely united and remain superstructure will conform to the mode and needs vigorous, our cause of socialism is bound to of the growing productive forces in contemporary prosper. China. Only then can we avoid wishful thinking. Great practice requires great theory. The 1 The primary stage of socialism covers a long billion Chinese people are devoting themselves to process of historical development. We do not yet the grand cause of modernization and reform. This know much about the conditions, contradictions rich, lively practice provides us with an and changes in this stage or the laws governing its inexhaustible source of creative theoretical development. Many of our principles, policies and generalizations. At present, however, the study of theories have yet to be tested, and they will have to Marxist theories in the Party lags far behind the be constantly enriched, revised and improved progress of our great undertaking. Reform and the

XXVI open policy have been pursued for several years, but is favourable to our socialist modernization. little has been done to study them theoretically or to Propelled by the tremendous efforts of the world's explain them to the general public. One of the major people to safeguard peace and pursue development, tasks confronting all Party members, especially there is an increasingly strong demand for an end to senior and middle-level cadres, is to master the the arms race and to aggression and expansion, and stand, viewpoint and method of Marxism through for genuine disarmament and early settlement of earnest study, and to better integrate Marxism with regional conflicts. It is against this background that China's development and reform and with the the United States and the Soviet Union recently realities prevailing in every field of endeavour and in reached an agreement in principle on the question of every region. Our Party is at a critical historical medium-range missiles, bringing about some juncture, with large numbers of new comrades relaxation of tensions between the East and the joining, and new cadres replacing older ones in West. We welcome this development. But we should leadership positions at all levels. At this moment it is also be soberly aware that it is merely a first step of immediate and far-reaching importance to towards arms reduction, and that the arms race is understand the general contemporary need to far from ended. Not a single "hot spot" has been gready develop Marxism, to call on the entire Party cooled, and there is still the danger of escalation of some regional conflicts. It will be a long, difficult membership to study and enrich Marxism- and tortuous process to achieve a genuine Leninism and Mao Zedong Thought in the course relaxation of international tensions. So people of all of practice and to build a contingent of Marxist countries must continue their efforts. China will theoretical workers, including a large group of steadfastly continue to pursue its independent newly rising creative thinkers. foreign policy of peace and to develop relations of Comrades! History has entrusted us with a friendship and co-operation with all other countries colossal task. Let our Party members unite still in the world on the basis of the Five Principles of more closely with the people of all nationalities in Peaceful Coexistence. Together with other peace- the country, with the democratic parties and with loving countries and peoples around the globe, we the mass organizaUons, under the great banner of shall work to promote the development of the building socialism with Chinese characteristics. Let international situation in a direction favourable to the Chinese people on the mainland unite still more the world's people and to international peace. closely with our compatriots in Hong Kong, Macao and Taiwan and with Chinese nationals residing China's revolution and development represent abroad, under the great patriotic banner of an important component of the progressive cause of reunifying the motherland and rejuvenating China. mankind. The founding of the People's Republic of This is the basic guarantee for the success of our China, which shook the world, has strengthened the cause. progressive forces of the world and expanded the influence of Marxism. With the success of its Ours is a cause advancing progressively. The socialist modernization, China will unquestionably Party and the people have always placed their make a new contribution to world peace and to the greatest hopes on the vigorous young people who progress of mankind and further increase the appeal represent the future. The rejuvenation of the of scientific socialism. Having triumphantly taken Chinese nation, the building of a magnificent future the first step towards the grand objective of socialist and the success of socialist modernization depend modernization, we shall work hard to take the on all the people, but, in the final analysis, on the second and third steps and win greater victories. We young people who will carry forward our cause with are convinced that the road of socialism with perseverance and hard work. Chinese characteristics will become wider and Comrades! The current international situation wider.

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I The next number of Beijing Review will carry profiles of the newly elected I top leaders of the Communist Party of China.

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XXVII Zhao Ziyang and four other top Party leaders meet Chinese and foreign journalists at the reception. LI SHENGNAN measures and policies. I think this resolve many problems which the restoration of serfdom accord is quite normal. There cannot be have already been solved in with human rights? I hope you can only identical views within a capitalist countries. These pro• raise this question with those country or a political party. Don't blems include the commercializ• congressmen when you return to you disapprove of our "unanimity ation, socialization and moderniz• your country. of opinion?" Then why do you ation of production. My report is American reporter: I will certainly make such a fuss about our having based on the specific conditions in raise this question with them. some minor differances? It is my China. Today many socialist Foreign reporter: Please tell us opinion that some differing views countries are investigating the best something about Sino-Japanese among our leaders — even among way of integrating Marxism with relations. us, the five Standing Committee the realities of their countries. Zhao: Sino-Japanese relations on members of the Political Your best formula is not the whole are good, but there are Bureau — may help make our necessarily the best for us. We can some problems. I have already decision-making process more learn from and exchange expe• talked about them just now. I democratic and scientific. They riences with each other but should congratulate Mr Noboru Takesh- serve as an important guarantee not copy them. ! wish you success ita on becoming the president of that we will make fewer mistakes in your reform. his party and I hope I will have the and avoid serious errors. I hope Yugoslav reporter: We Yugoslav chance to meet him. you will agree. reporters congralutate you on Soviet reporter: We are here to Foreign reporter: Is there freedom your report and your assuming the cover the 13th Congress of the to air different views in China? post of the general secretary of the CPC. A: There is freedom to air different CPC. What is the first concrete Zhao: Very glad to meet you. How views in China, but not absolute task you are going to undertake as is your stay in Beijing? freedom. There is no freedom in general secretary? Soviet reporter: Very good. the absolute sense in any country. Zhao: We will first of all study Zhao: I think what I have said just Isn't it a fact that you need a how the newly elected Political now to the Yugoslav comrades is passport to travel abroad? You Bureau, its Standing Committee aNo applicable to you. I wish the don't have absolute freedom, do and the Secretariat should work. rcloiiri in your country every you? (Laughter) We must adopt a new working style. Therefore we must discuss success. Zhao: (After being introduced to a this issue. This will be our first Japanese reporter: I'd like to Yugoslav reporter) You have task. raise a personal question. The suit done a lot of work in covering the you are wearing with double congress and your report is American reporter: There have buttons is very smart. Is it made in objective and friendly. been some problems in Sino-US China or abroad? Yugoslav reporter: Please allow relations recently. For example, Zhao: All my clothes are made in me to raise a question. the question of Tibet. What do China and I hope that you can file Zhao: Let me speak first. We are you think of Sino-US relations? a special report that Mr Zhao carrying out reforms and so is Zhao: I have been puzzled by one Ziyang's clothes are all made in your country. The social and question: Why do some people in China and they are all very historical conditions in our the US Congress, who set beautiful. This may promote the country differ from those in other themselves up as champions of export of Chinese garments to socialist countries. Therefore it human rights, support the restor• your country. Look, the suits will take a long time for us to ation of serfdom in Tibet? Does Comrades Li Pengand Hu Qili are

13 BKLIINCi RRVIRW, NOVEMBER 9 15. I9S7 T

•1 ARTICLES

wearing are also made in China Zhao: (After being introduced to cut its armed forces by I million and they look smart, too. Soviet journalists) Well, how troops and a large number of our Dutch reporter: Some people say many permanent reporters do you military factories have been that the pace of reform in China is have in Beijing? How many transferred to civilian production. faster than that in the Soviet journalists have you sent to cover The modernization of national Union. What do you think? the Party congress? defence relates mainly to its Zhao: The national conditions in Soviet reporter: We have seven quality, which is dependent on the China and the Soviet Union are permanent reporters in Beijing development of economic might different, so the reform in the two and four more have been sent here and science and technology. countries should not be the same. to cover the Party congress. Hong Kong reporter: Is Hong We did not launch a competition Zhao: Then you have more than Kong allowed to hold direct in the field of reform with the 10 journalists here. elections? Soviet Union, and we are not Soviet reporter: Right. Pravda Zhao: We have answered that going to compete with the Soviet and the TASS news agency file question clearly on many previous Union on the pace of reform. Each reports on the Party congress occasions, and the Hong Kong country should act according to its every day. people also know our stand. So I own actual conditions. We attach Zhao: You have done a lot of hard don't think it's necessary to repeat great importance to the reform in work. Thank you. our position. This question will be the Soviet Union. Hong Kong reporter: What discussed at the Drafting Commit• (Zhao was introduced to contribuUon has the 13th Party tee of the Basic Law and be Harrison Salisbury, who is writing Congress made to the reunific• resolved in the Basic Law. a book to be called The New Long ation of China? Federal German reporter: What March) Zhao: I've already noticed the will be the principal problem in Zhao: We know each other. We comments abroad saying that the China in the future, in your have an appointment on Novem• report delivered at the congress opinion? ber 5. You are going to meet me as points out China is still in a Zhao: The reform. Both political a friend, not a journalist. Friends primary stage of socialism and and economic structural reform. can have a free chat. that the policies adopted at the The theme of the economic reform Salisbury: I'll tell you the first Third Plenary Session of the 11th is to develop socialist commodity quesUon I'm going to ask you. Central Committee will be the economy and the theme of our When you were in Sichuan,— basic guideline during the whole political restructuring is to build after you had been there a couple transitional period. These com• socialist democracy. The two arc of years, people there began to say, mentators have also noted that mutually complementary and "If you want more grain, then this guideline is conducive to the need a process of gradual look for Zhao Ziyang." My stability and prosperity of Hong development. question is what do you want Kong, to quelling the suspicions of Hong Kong reporter: You have people to say about you in China the Hong Kong people and to the after you've been Party general said that you would rather be realization of the ''one country, secretary for a couple of years? premier than general secretary. two systems" concept. But now you have been elected as Zhao: I am afraid that my work in Japanese reporter: Mao Zedong general secretary. What is your Sichuan has been made into a said that China had three big feeling right now? legend. We still have many mountains to remove before Zhao: Personally I still think that problems. Generally speaking, we liberation. Would you tell us how I'm more suited to be premier. But are of course confident in our many mountains you have to since I have been elected general cause. I mentioned in my report remove in the course of reform? secretary, I can only try my best to that our current reform is taking Zhao: I have not calculated that. If do a good job at my new post. As more time than we expected. I said you figure it out and tell me the I've just said, there is no absolute at the just concluded First Plenary results, I would appreciate it. freedom. Session of the 13th Central British reporter: You have been Foreign reporter: There have Committee that we comrades in elected the first vice-chairman of recently been some hard words the new Political Bureau, the the Military Commission of the between China and the United Standing Committee of the Central Committee. Does this States over alleged sales of China's Political Bureau and the Secre• mean that China's defence will be weapons to Iran. How serious do tariat should work hard so that strengthened? you take the US accusation? after five years we can say in the Zhao: We will step up our defence Zhao: It is not merely a question of political report at the 14thrnodernization , but we will not hard words. The US accusation is National Congress that we have increase the portion of military completely groundless. It is unfair fulfilled the tasks set out at the spending in the budget. You know to blame China for the increasing 13th National Congress. that China has already unilaterally tension in the Gulf region.

BEIJING REVIEW. NOVEMBER 9-15. 1987 14 fl

Foreign reporter: I learned hope to realize the desire of the year. There will also be changes in recently that many Chinese people people on both sides of the strait to the government. The personnel are not happy with the price reunify the country, and put into affairs of the State Council will be increases in China. practice the "one country, two decided by the National People's Zhao: We should put it this way: systems" policy during your term Congress. Didn't some foreigners people are happy in some respects in office? criticize us by saying the People's and unhappy in others. But they Zhao: I'm glad to see you. I hope Congress is only a rubber stamp? are mainly happy. Over the past you will go to more places on the From now on, we'll respect the nine years of reform, the income of mainland and see more of the responsibility and power of the the Chinese people has increased realities. The mainland has made a People's Congress. I should not and their living standard has risen. lot of progress over the past 38 speak at will on affairs concerning However, prices have gone up too. years, but there is still backward• the responsibility and power of the People generally want to have a ness in some places. You should People's Congress. But, I can still premier who will raise salaries go to see the good things as well as give you a piece of information: I only. They hope that he will not the bad things. I also hope you will will not wail until the Seventh raise prices, or that he can even not be in trouble when you go National People's Congress opens reduce them. I'm afraid I can't back. As to your question. I next year to present my resign• achieve this goal during my term. I certainly wish to realize the ation. Instead, I am going to do it hope that my successor will do a reunification of the motherland at the coming meeting of the Standing Committee of the better job. during my tenure. But this will not be decided by one side. Regardless People's Congress. I shall re• Hong Kong reporter: Now that of whether we can reunify the commend a candidate for the Deng Xiaoping has retired from country, we should not go in the acting premiership. As to whom the Party Central Committee and opposite direction. In my view, the I'm going to recommend. I can't the Central Advisory Com• present situation is advancing in a tell you now. What 1 can say is that mission, will you still consult him favourable direction. Do you he is younger than 1. in making major decisions? agree? Zhao: I think I will. I'll ask for his Bulgarian reporter: What do you advice. I respect Comrade Deng Pi Chieh-HsIng: Yes, I do. have to say after your visits to five Xiaoping very much and I think Beijing reporter: Will you give us East European countries? that among the current Chinese permission to go to Taiwan to Zhao: The relations between leaders, both those in office and gather news? China and the East European those who have retired, no one can Zhao: There will be no problem on countries are excellent, and our match Comrade Deng Xiaoping in our side. I'll give permission to all Party relations with them have all terms of wisdom and jjolitical of you. Unfortunately, my been restored. It may be said that experience. His position and role approval alone won't be enough. the relations between China and as the major policy-maker of our Hong Kong reporter: Some people those nations and parties have entered a stage of all-round country and our Party has stood use the metaphor that your winter friendly development. All the the test of history and has been comes fast and leaves fast too. countries I visited impressed me generally recognized both at home Zhao: I don't know what you deeply. You have done a better job and abroad. By seeking his advice mean, natural climate or political than we in socialist construction. in making major decisions. I can climate? If you mean poliUcal We should learn from you. do a better job. So why shouldn't I climate, I don't agree with you. do it? Therejs no winter here; it is always Foreign reporter: As you conduct Hong Kong reporter: What is the spring; the reform, some people have No. 1 task of reform? Reporter: Why are there no become well-to-do quickly, and Zhao: You always like to ask what "women on the newly elected some areas have gained fast No. 1 is and what No. 2 is. I don't Politburo? prosperity too. But some other think you should rank things this Zhao: It was a hope of all of us that areas are lagging behind, and the way. The main purpose of some female comrades could join gap is rather big. How are you economic structural reform next the Political Bureau, but none was going to deal with this problem? year is to invigorate the enterpr• elected. However, this doesn't Zhao: It's true that this kind of ises. By the way, I'd like to tell you mean that we have adjusted our situation exists. But this is not our that the enterprise law will policies on women. ultimate goal. Our goal is to see all probably be adopted by the first Foreign reporter: With whom arc people become prosperous. The session of the Seventh National you going to share the job of prime gap is iiicv liable ciunng ihc People's Congress, which will be minister undl next March? process of reform. You can't gel convened next year. Zhao: New ' elections will be all things done at the same time. Pi Chieh-Hsing, Taiwan reporter: conducted before the National Even when you walk, you have to Hello, Premier Zhao. Do you People's Congress opens next move one of your legs first. •

15 BEIJING REVIEW, NOVEMBER 9-15, 1987 •i ARTICLES A New Generation of Chinese Leaders by Our Correspondent Lu Yun

t the 13th National Congress younger, better educated and vigour and professional com• A of the . Chinese Communist professionally more competent. petence and a strong sense of Party which has just ended, a new At the Fourth Plenary Session of responsibility. Like others of their Party Central Committee was the 12th Party Central Committee, kind, they have done outstanding elected which proceeded at its which was held in September 1985, service to the Party's cause and the First Plenary Session to elect its a large number of veteran officials, country's modernization drive. new Secretariat, Political Bureau including 64 members and alter• Most deputies to the congress and the Standing Committee of nate members of the Central believe that by electing many the Political Bureau. The most Committee, 37 members of the middle-aged and younger people salient feature of the congress was Central Advisory Commission to the Parly's central leadership, the withdrawal of some veteran and 37 members of the Central the Party will be revitalized and Party officials from their posts, Commission for Discipline In• become more efficient. The clearing the way for younger spection, retired from their posts. consensus' is that they will be of people. At the national Party conference great significance to the country's called shortly thereafter, 91 political stability and the continu• Ever since the beginning of the younger people were elected ity of policies. 1980s the Chinese Communist members or alternate members of Party has made it a priority for' the Party Central Committee. veteran officials to train and During the 13th Party Con• Good Things for the People promote middle-aged and gress, this correspondent inter• Li Ruihuan, 53, was a member younger people to leading po• viewed four of this younger of the 12th Party Central sitions. The 12th Party Congress generation, three of whom Committee and is Tianjin's mayor held in 1982 declared that a were elected to the central and municipal Party secretary. At primary long-term task for the Party leadership. All the First Plenary Session of the Parly would be to make the ranks of them are considered to have 13th Party Central Committee, he of the cadres more revolutionary. political and moral integrity. was elected a member of the Political Bureau. Li Ruihuan (second right), mayor of Tianjin, at a panel discussion. LU YUN Apprenticed as a carpenter in Beijing when he was 16, Li later studied in a spare-time architec• ture institute. In 1959 hejoined the construction of the Great Hall of the People in Beijing and was named a national model worker. In 1981 he was appointed vice- mayor of Tianjin and promoted to mayor the next year. In dress and appearance, Li looks just like any person on the street. He won respect through-his insight and the many good desids he has done for the people. In 1983, he pledged to do "ten good things" for Tianjin's urban residents and the next year he devoted his energy primarily to ten projects on the city's outskirts. He is noted for three outstanding achievements on behalf of Tianjin's people: Putting up 3 million square metres of resident• ial housing every year so 1 million

BRMING REVIEW. NOVEMBER 9-15. 19K7 6 people received new housing with piped gas; building the central ring road which links the four major highways of Tianjin, alleviating the chronic traffic congestion; and completing the 234-kilometre Luanhe River diversion project, bringing water to Tianjin and thus ending Tianjin's history of drinking brine. Deng Xiaoping- praised the water diversion as "an example for key construction projects." Li Ruihuan's dedication, real• istic attitude, organizational skills, and above all his will to serve the people have won him the support and trust of the people. Li Ruihuan likes to stress the idea of putting the interests of the people above everything else. He says that as China has low productivity following a long period of feudalism, both the leaders and masses have a poor Chen Zhili (centre) at a press conference in the Great Hall of the People. sense of democracy. He believes that it was very important for the 13th Party Congress to stress the Ukes fishing and talking with is the most valuable thing left to us future development of socialist people. by the revolutionaries of the older democracy. In his opinion, leaders generation? And answers: It is the worrying about their dignity is creative spirit of combining feudal dross. He says they should Theory-Practice Linkup Marxist theory with China's put themselves under the supervi• reality. sion of the people. In recent years, Sun Jiazheng, 43, joined the When Sun became Party Tianjin's authorities have used 12th Party Central Committee as secretary of Xuzhou city in 1984, radio, television and newspapers an alternate member two years ago at the Party's nafional he worked hard to break the to publicize and facilitate dialogue conference and was elected again existing barriers between various between the leaders and people. an alternate member of the Party administrative areas and devel• This has been welcomed by the Central Committee this fime. oped economic, financial and people, says Li. He grew up in a poverty- material co-operation between his "The 13th Party Congress has stricken village in north• city and neighbouring areas in elaborated the theory of the ern Jiangsu, and graduated Henan, Shandong and Anhui primary stage of socialism," Li from the Chinese Department provinces, enabling Xuzhou to says, "and made clear that the at Nanjing University in establish its role as a major city in criterion of judging right and 1968. He then lived and the region. When Premier Zhao wrong is whether or not a thing is worked in one of Nanjing's rural Ziyang heard of this, he gave Sun good for China's productivity. I counties. He served as Party his support, and encouraged will continue to devote my energy secretary of a township and later Xuzhou. Sun Jiazheng has sought to the central task of developing was promoted to leading posts at to make Xuzhou Shanghai's the productive forces. I will stay in the county, city and provincial "second in command." promoting Tianjin, because I've put in a lot of levels. Now, he is deputy Party economic co-operation with hard work there over the last six secretary of Jiangsu Province and China's largest industrial centre. and half years and I love the place. concurrently the head of the The reforms introduced at Sun's I feel that Tianjin is the place for provincial Party committee's initiative have changed Xuzhou's me." propaganda department. Sun has sluggishness. Li Ruihuan enjoys reading, an easy manner and pensive eyes. Sun Jiazheng insists on using watching football, playing In studying Marxist theory and the basic principles of Marxism to Chinese chess and table tennis, reviewing China's revolufionary guide the reform, and ideological and listening to music. He also history. Sun Jiazheng asks: What work. In the struggle against

17 BEIJING REVIEW, NOVEMBER 9-15, 1987 •i ARTICLES

bourgeois liberalization early this identifies weak spots and formu• China Academy of Sciences. In year, he analysed the situation in lates the priorities for the 1980 she enrolled at Pennsylvania Jiangsu, saying that while it is province's industrial develop• State University in the United necessary to oppose the tendency ment. He has publicized and used States to do research work in its to break away from the Party's the experience of Xinhui County Materials Research Laboratory. leadership and the socialist road, it to improve the province's work as Two years later she returned to is just ai important to uphold the a whole. The county re-equipped China and was gradually pro• reform and open policy, allow its enterprises, raising their moted to her current post. literature and art to flourish, industrial output value and dues The Shanghai Scientific and encourage theoretical study and delivered to the state five times Technological Work Commission give free rein to the initiative and over in six years. Currently he is where Chen works leads the Party creativeness of the cadres and the studying four prosperous counties organizations of over 40 research masses. He believes the unhealthy in Guangdong which all succeeded institutes. Chen is busy at work tendencies in the arts should be in making the best use of their own driven by her deep affection for overcome through criticism and advantages. Meanwhile he is her fellow intellectuals and strong self-criticism by the artists them• mapping out measures for assist• sense of responsibility. She has selves, and differing ideas in the ing remote mountainous areas in established a discussion and theoretical field should be allowed the province by helping them to dialogue system, which is greatly to debate so that a correct use local resoures in building appreciated by the scientists conclusion can be drawn. Since enterprises which would fuel a involved. On the 18th of each the province's news media tended boost in their economy. month Chen meets over 100 noted to emphasize good things over bad scientists to listen to their ones, he invited people from Zhang has devoted much of his complaints and exchange views. economic and journalism circles energy to the province's in• Sometimes they go to visit for forums where they discussed frastructure. Guangdong's successful rural villages and the best ways to present to the method of raising funds in inspect new scientific and techn• people problems in the reform and multifarious ways (locality and. ical facilities. Veteran scientists are opening up, and to strengthen enterprise contributions, foreign pleased with the chance to air their people's supervision over the news investment, etc.) to build its power views and keep themselves media. As a result, more industry is now being popularized informed. commentaries and factual reports throughout China. Since last year At Chen's suggestion, the have appeared in the province's the province has installed 1.2 commission's Party committee newspapers. million kw more generating invites younger specialists and capacity, greatly easing the strain scientific and technical workers to on its electricity supply. Consider• attend discussion meetings once a Investigation and Study able progress has also been made month. Chen and her colleagues in the province's road construc• take the existing problems serio• tion and programme-controlled usly and spare no effort in calling Zhang Gaoli, 40, a deputy to the telephone exchanges. It has the attention of the leadership congress is head of Guangdong become a tradition for Zhang to and the public to them. Before Province's Foreign Economic hold annual meetings with cadres coming to Beijing for the congress Relations and Trade Commission. at all levels to analyse the Chen was organizing a video of He graduated from the Depart• problems in industrial production the work and achievements of over ment of Economics at Xiamen and decide on the focus for next 20 outstanding middle-aged scientists in order to publicize University in 1969. He has also year's work. been a worker and workshop their contributions. Party branch secretary at the After making careful studies Maoming Petroleum Industrial Chen Zhili, 44 and an associate and referring to the experience of Co., the largest industrial enterpr• research fellow, is a newly elected other countries, Chen and her ise in Guangdong Province. In alternate member of the Party colleagues in other units have put 1983 he became deputy manager Central Committee. Currently she forward proposals for solving the and later manager of the company is the Party committee secretary of long-standing problem of research with a total work force of 25,000 the Shanghai Scientific and being too remote from production under him. There he proved his Technological Work Com• and high-tech breakthroughs ability and pioneering spirit. He mission. She graduated from hardly ever being applied. She says was transferred to his current post Fudan University in Shanghai in the current management system is in 1985. 1964 with a degree in solid-state like a net knotting people up so Since he took the post he has physics and later worked as a that cuff and kick as you will, you toured enterprises throughout the researcher in the Shanghai Silicate cannot break out. She believes the province on the basis of which he Research Institute under the way out is reform. •

BFI.IING REVIEW. NOVEMBER 9-15, 19X7 l

subtle style and skillful Ballets With Chinese Characteristic^ performance. The music of the ballet, while adapting some modern techni• t the first China Art Festival, steeped in hypocrisy and snob• ques, drew from the music of Aaudiences were totally bery. Distressed by her humble traditional Yueju and Kunqu charmed by the stage performance position and evil surroundings, operas, which most effectively of Chinese ballets presented by the Daiyu is torn between self-pride express feminine emotions. This Central Ballet Troupe. and self-pity, and holds herself without doubt greatly contributed To the delicate tone of classical aloof from all those around her. to the success of the ballet. Chinese music, Lin Daiyu, a She falls in love with Jia Baioyu A piece from New Year maiden of tenderness and beauty with whom she finds a common Sacrifice, choreographed by Jiang appeared on the stage. She is the bond. However, the lovers Zuhui, also won high praise from heroine of this ballet. Named after eventually fall victim to the the audience. Based on a well- Lin Daiyu, the ballet is based on an 18th century Chinese classic A Dream of Red Mansions in which Lin Daiyu rebels against feudal codes and ethics. The novel has been acclaimed for its accurate description of feudal society, and the tragic love story of Lin Daiyu and Jia Baoyu has been adapted into various art forms. The ballet signifies a new and bold attempt. Daiyu's character is a direct product of her feudal environ• ment. With the death of her mother she takes shelter in the home of her grandmother-in-law whose large aristocratic family is

A Scene from "Taming of the Shrew" performed by the FRG Stuttgart Ballet Co. during the first China Art Festival. "New Year Sacrifice" combines Western and Chinese dances. XU XIANGJUN XIAO YINZHANG powerful will of the family. Baoyu known modern Chinese short is forced into a marriage with Xue story of the same title. New Year Baochai, a girl more preferred by Sacrifice reveals through the the family. Lin Daiyu, hopeless tragic tale of a widow's remarriage and powerless, burns all her love the cruelty and brutality of the poem manuscripts and dies of feudal forces remaining in the grief. 1930s in China. Though only one part ("The Breaking the stylized codes of Death of Lin Daiyu") of the ballet classical ballet, Chinese dance and was performed, the piece aptly ballet are harmoniously blended illustrated the artists' attempt to to achieve a deeper revelation of create unique dance movements the complexity of the inner world which combined the folk dances of of man and woman. southern China with Western The widow. Sister Xianglin, is a ballet techniques. Elements of the typical traditional rural Chinese Chinese lantern dance and silk woman. The harmony and dance were also adapted into the restraint of Chinese dance work play. well to show her timid and The prima ballerina Feng Ying virtuous character. is a rising star who has won first Guo Peihui, who played the role prize in the first China Ballet of Sister Xianglin, is one of Competition. In Lin Daiyu, she China's top ballet stars who took carries the audience away with her second prize in an international

BEIJING REVIEW. NOVEMBER 9-15. 1987 20 competition held in Osaka, Japan. "A unique character is a sign of renowned Paris Opera invited Her elegant postures and dramatic artistic maturity. In the ballet Chinese ballet stars, Guo Peihui feeling for the part impressed both world, there is the Russian school, and Zhao Minghua, to play the Chinese and foreign audiences. French school and so on. Our aim leading roles in Don Qui.xote. "Wedding," a piece from the is to establish a Chinese genre," Li Ballet companies in Japan and ballet, was especially outstanding. added.. Australia have also invited The innocence and merriment of a The United States, Britain and Chinese ballet stars to play the group of young girls was conveyed the Soviet Union all have world- leading roles in The Nutcracker through the use of point work and level ballet troupes, and audiences and Giselle. These invitations harmonious body movements. in these countries are not easily signify the recognition, respect While the fan dance was used in its satisfied. Last year the Central and the promising prospect of Chinese form, folk and local opera Ballet Troupe made successful Chinese ballet. music were also adapted into the tours to these countries. Local by Wei Liao piece. newspapers commented that the The performances also featured Chinese ballet had developed a Chinese Paintings several pas de deux including character of its own by mastering "Huanghe River" — part of the the masculinity and forcefulness in Western Style ballet triology Search for Light by of the Russian ballet and the ang Yanwen. a 48-year-old talented young choreographer delicacy and subtleness of the YChinese painter, has made Shu Junjun. This piece depicts the Western ballet, and more import• great achievements in blending people's great love for the river, antly by effectively adapting Chinese and Western painting known as the "cradle of Chinese Chinese folk dances. Several techniques. Twelve of his works civilization" and the pursuit of Chinese ballets performed by the have recently been collected by the light. It reflects real life rather than troupe received high praise. China Museum of Fine Arts in the romantic, mythical world of Princess Margaret, sister of Queen Beijing. Just as the curator Liu princes and princesses which Elizabeth, spoke highly of the Kaiqu commented; Yang's paint• dominates conventional classical Chinese ballet after she saw a ings heve something original. ballets. segment from Mermaid. She said Earlier this year, the museum As part of the festival that the felicitous combination of sponsored an exhibition of Yang's production, the Central Ballet Chinese dance and ballet worked paintings, which mainly portray Troupe also performed the together to form a marvelous landscapes and scenic spots Western ballet Don Quixote. Li work of art, and she hoped that outside villages and fenced Chengxiang, director of the she would have the opportunity to hamlets in north China. Yang's troupe, explained, "Our repertoire see the complete work. artistic conception and philo• includes Western classics as well as In recent years, the Central sophy give a new sense to his Chinese works. In the festival we Ballet Troupe has trained a group bamboo fences, tile-roofed intended to offer the public an of promising young ballet dancers houses. small bridges, cave overall view of our achievements who have won prizes in intern• dwellings, chicken coops and cow of the past ten years. ational competitions. The world- sheds. His works combine the characteristics of traditional The Central Ballet Troupe performs "Don Quixote" XU XIANGJUN Chinese paintings with Western techniques. His Old Castle.s in Wind and Clouds portrays two castles different distances away, using colour to great effect. Leaving white space in front, he uses dark ink to portray windy clouds and adds two vermilian strokes to instil the painting with motion. This is seldom seen in traditional Chinese painting. Yang's bold brush strokes give a sense of recklessness. In Breeze in February, for example, he shows a glimpse of the city of Suzhou. Houses stand on the river bank supported by broken stones. Willow twigs can be seen behind the houses. This is not unusual.

21 BEI.IING REVIEW, NOVEMBER 9-15. 1987 CULTURE/SCIENCE

but Yang bravely uses a of Eastern and Wertern art," is whitewash brush and dipped in one of the accomplished con• light green ink to set off the temporary painters in China. He attractive view of February on the pays great attention to artistic south bank of the Changjiang I conception in the creation of oil (Yangtze) RiVer. paintings, and brings techniques Yang blazed his own artistic of expression from the West to trail. He puts his own philosophy traditional painting. as: One hand stretches out for life, Yang thinks that traditional and the other for Chinese painting emphasizes "line" with• tradition, with one foot on out considering spacing. To enrich Western painting techniques. He its expressiveness, line and space believes that the diversity of life must be combined. Moreover, forces artists to seek diversified Chinese painting seeks simplicity techniques. \d sues a free and easy technique In his use of ink and colours, he I of expression. The subjects are combines dark and tight, rough I generally limited to famous and fine, motion and stillness, I mountains, big rivers, ancient Yang Yanwen. positive and negative, both for i temples, fiowers. birds and the selected points and spacing. he began to learn Chinese moon; in the West, the subject Another attractive feature of his calligraphy and to copy portraits i matter is more varied. paintings is the blending of the under the guidance of a village I Yang said, "I not only lines of traditional Chinese teacher. At the Beijing Instiiuic of I understand Western painting but paintings and the perspective and Art Teachers, he specialized in oil I also have foundation in the colouring methods of the oil painting for six years, guided by traditional Chinese painting. I painting into a single entity. Professor Wu Guanzhong. and at suggest wc learn from the strong He has made people think about the same lime studied traditional points of the West to offset our traditional Chinese painting in a Chinese painting. Wu had a strong shortcomings." Clearly, he - has new way and has enriched the infiuence on Yang. The professor, followed his own suggestion. artistic language of traditional who calls himself "the half-breed by Zhang Wei painting. In competition with 870 works Traditional Chinese painting by Yang Yanwen. by 800 artists from around the world, Yang's Scaltcred Rain Drops in a Villas^c won the gold medal at the Fifth International Art Exhibition held in Italy in 1983. During his recent exhibition. Professor Wu Guanzhong. the famous artist said, "Yang Yanwen has a good foundation in sketching and the power of observation, as well as an analysis and understanding of Oriental and Occidental arts." To create something new based on traditional Chinese painting is the common aspiration of many artists in recent years. The question of how to use modern Western techniques while still giving full play to the merits of traditional painting is much discussed among today's painters. Yang has made notable progress in this. A peasants' son, Yang grew up in an atmosphere of traditional Chinese culture. At the age of five.

BEIJING REVIEW, NOVEMBER 9.15. 1987 CHINA CALENDAR

BUSINESS AND TRADE foreign investment and Czechoslovak Ballet at the technology. Tianqiao Theatre in Beijing. November 12-17. Shanghai. In• December 3-8. Tianjin. Energy November 26. A 40-member ternational Exhibition on Packag• and Chemical Industry Exhi• Japanese publication delegation ing Printing Technology and bition. Sponsored by the CCPIT starts its visit to China. Equipment. Sponsored by the Tianjin Branch. Participants come China Council for the Promotion Late November. A four-member from Federal Germany, Britain, of International Trade (CCPIT) cultural delegation of the Chinese France, Finland and Italy. Shanghai Branch. Participants government headed by Minister of come from the United States, Culture Wang Meng will visit Canada, Japan, Western Europe December 9-15. Beijing. Inter• Hungary, Poland and Romania. and Hong Kong. national Optics and Moulds Exhibition. Sponsored by China Late November. A visit by an November 17-21. Guangzhou, Promotions of Hong Kong. Indian delegation of cultural Guangdong Province. Fourth Participants come from the officials. Offshore Engineering Exhibition United Slates. Japan, Switzerland, Late November. A visit by a (Offshore China '87). Sponsored Federal Germany and Hong Cyprus cultural delegation headed by Wah-Chang International Kong. by secretary-general of the Marine Co. Cypriot Ministry of Foreign November 21-27. China Intern• SCIENCE AND TECHNOLOGY Affairs. ational Exhibition Centre, Beijing. November-March next year. The Turkish Industry Exhibition. November 23-27. Xiamen, Fujian Central People's Broadcasting Sponsored by the Turkish Tuyad Province. Third International Station will sponsor a quiz on Co. Symposium on Laser Technology. Sponsored by the Chinese Emer• knowledge about the motherland November 23-28. Beijing Exhi• gency Medicine Society. through the programme "Friends bition Centre. International Exhi• Over the Air" beginning Novem• bition on Military Logistics CULTURAL EXCHANGES ber 1987 and on to March next Technology and Equipment. year. The quiz will include Sponsored by the CCPIT Beijing November 9-21. A visit by a four- questions on history, geography, Branch, and Ta Kung Pao and member governmental and cul• culture and achievements in the Modern China Co. of Hong tural delegation from Sierra Leone construction of New China. Kong. Participants come from the headed by the minister of Participants will be mainly United States, Italy, Austria, education, culture and sports. overseas Chinese and compatriots Hungary and Federal Germany. in Taiwan, Hong Kong and Mid-November. A visit by a five- Macao. The award ceremony will November 24-30. China Intern• member delegation from the be held in Hone Kong in July ational Exhibition Centre, Beijing. Soviet Ministry of Culture. 1988. International Plastic Industry Exhibition. Sponsored by the November 16-20. A visit by CCPIT. Participants come from Charles Wick, head of the US >ocoooo.>ooooo<»ooooooooooooooooooooc Italy. Britain, France, Spain, Information Agency, and eight of his-colleagues. Sweden, Norway, the United NOTICE: Because of space limitations, States. Japan and Hong Kong. November 17. A photograph's luture articles-in both the Tibet and China's Second Revolution series will be November 28-December 3. exhibition from New Zealand at postponed. Shanghai. International Sports the Chinese Art Gallery in Beijing. Goods Exhibition. Sponsored by November 20-26. Performances the CCPIT Shanghai Branch. by 15-member Japanese choir at Participants come from the the Haidian Theatre in Beijing. United States, Canada, Japan, Federal Germany and Hong November 20-27. Performances Kong. by nine US piano players at the CORRF.CTION: In i.ssue 44. page 14, Hrst Haidian Theatre in Beijing. column, line 10 should read "combined December 1-8. Nanning, GNP of US$1,000 billion;" line 13 .should November 21. A five-member read "combined GNP of USS8,000 Guangxi. Foreign Economic and Korean delegation of foreign billion." Technological Co-operation and cultural workers arrives for a two- Export Commodities Fair of the week visit. •OOOO0OOOO OOOOOC>^00 ooo ooo oooooooooooc-oooooo Guangxi Zhuang Autonomous Region. The autonomous region November 21-December 5. Per• will announce 343 projects for formances by a 27-member

2.3 BHIJING REVIEW, NOVFMBER 9-15. 1987 ART PAqE

Woodcuts by Zhen Qiuming

Zhen Qiuming, born in Tianjin in 1 959, is art editor for the People's Police Journal (MINJING BAO) in Tianjin. Zhen, whose special ta• lent lies in discovering the inner beauty of things around him, has painted the blue sky, white clouds, grass^ands, ox-carts and herdsmen to touch the hearts of people.

'I am tipsy.' Clothings and Ornaments of t China's IVIiao People

A

Edited by the Cultural Palace of + Nationalities in Beijing after considerable on- i the-spot investigations, the work is the first full- M if length picture book to introduce the clothing ik. and ornaments of China's Miao nationality. CLOTHINGS The publication contains 370 colour pictures of the traditional clothing and artwork AND of the Miao people, supplemented by simple descriptions. More than 20 distinct styles are ORNAMENTS classified according to the geographical OF distribution of the Miao nationality in western A. Hunan, eastern Guizhou, mid-south Guizhou, CHINA'S Sichuan-Guizhou-Yunnan border area and MIAO Hainan Island. The work also lists alternative names for Miao populations in various regions, PEOPLE the distribution of their dialects and the development of their economy.

This tastefully printed and decorated picture book is available in both Chinese and English versions. It represents a major contribution to researchers in such fields as ethnology, archaeology, history, folklore and folk arts and crafts. Size: 26 cm. x 33 cm. Pages: 212 Hardcover Price: US$30, with an additional 1 0 percent for separate postage

Published by Nationality Press Distributed by Cultural Bookstore of Natronalities, ttie Nationality Press Address: 14 Hepingli St. East, Beijing, China Tel: 4216176