Chinese fashion models spark renewed interest in the charms of the Orient. Photo by Liu Kaiming BeijingRf^'r VOL. 33, NO. 21 MAY 21-27, 1990

China's Space Industry Takes Off CONTENTS • Relying mainly on its own, China has set up a multi- launching missile system which has brought its space technol• ogy up to the world's most advanced level. In its effort to put out civilian as well as military products, the industry has done EVENTS/TRENDS 4-7 its best to develop exports and open up the international market (p. 13). Sino-Mongolian Communique Li Peng Meets US Study Group 211 Involved in Turmoil Released China, Viet Nam on Kampuchean 'Overheated' Consumption Cools Down Issue • The consumer craze has cooled down as a result of imple• Sino-UAE Ties Solid and Friendly menting the policy for economic improvement and rectifica• News in Brief tion, strengthening macroeconomic control, cutting down on Beijing Greets Antarctic consumption funds and readjusting the investment scope and Adventurers industrial structure (p. 27). INTERNATIONAL

A Magnificent Scientific Exploit The World Sees Trade Blocs Increasing 8 • This article describes how Qin Dahe, a Chinese on a six- Economic Surge Seen in Thailand 10 member 1990 international trans-Antarctica scientific expedi• tion, copipleted a 5,986-km trek across the Antarctica af• CHINA ter undergoing 220 days of strenuous struggle (July 28, 1989-March 3, 1990). This first-ever Antarctic adventure, China's Space Industry Takes Off 13 conducted through international co-operation without me• A Magnificent Scientific Exploit 2 2 chanical aids, demonstrates human ability and determination to conquer nature (p. 22). Consumerism Loses Its Appeal 27 PICTORIAL

Regional Economic Grouping Booms China's Township Enterprises Centrefold n The formation of regional trade blocs developed further during the 1980. This trend has had a major impact on the FROM THE CHINESE PRESS 29 structure and development of the world's economy (p. 8). BUSINESS/TRADE 30-31 More Than 200 Law-Breakers Released CULTURE/SCIENCE 32-34 COVERi "Long March III" carrier rock• • Another 211 people involved in last June's turmoil and et on the Xichang satelhte launching- counter-revolutionary rebellion in Beijing have been recently pad. released upon completion of investigation. They are the sec&nd group of law-breakers set free since January, when public photo by Zou Yi security departments in Beijing released 573 (p. 5).

Unless written by Beijing Review correspondents, the opinions expressed in signed articles do not necessarily reflect the view of the Beijing Review editorial board.

General Editorial Office Published every Monday by BEIJING REVIEW Subscription rates (1 year): Tel: 8314318 24 Batwanzhuang Road, Beijing 100037 Australia..™ A$29.00 TLX: 222374 FLPDA CN The People's Republic of China New Zealand.. NZ.$39.00 FAX: 8314318 Distributed by China International Book UK i 14.50 English Dept. Tel: 8315599 Ext. 546 Trading Corporation (GUOJI SHUDIAN) USA.. US $29.00 P.O. Box 399, Beijing, China Canada Can.$ 25.00 EVENTS/TRENDS

promote prosperity and stability of their region. 7. Chairman Punsalmaagiin Sino-Mongolian Communique Ochirbat of the Presidium of the Grand People's Hural of the Peo• ple's Republic of Mongolia invit• hina and Mongoha issued tries will continue to strengthen ed President Yang Shangkun of on May 7 in Beijing a joint and develop their friendly rela• the People's Republic of China C communique. Following is tions and co-operation in the days and Premier Li Peng of the State the full text of the Joint Commu• to come in accordance with the Council respectively to pay an of• nique Between the People's Re• Treaty of Friendship and Mutual ficial visit to the People's Republ• public of China and the People's Assistance Between the People's ic of Mongolia at a time conven• Republic of Mongolia: Republic of China and the Peo• ient to them. The Chinese side 1. At the invitation of Presi• ple's Republic of Mongolia signed expressed its thanks and accepted dent Yang Shangkun of the Peo• in 1960 and on the basis of the the invitation with pleasure. • ple's Republic of China, Chair• five principles of mutual respect man Punsalmaagiin Ochirbat of for sovereignty and territorial in• the Presidium of the Grand Peo• tegrity, mutual non-aggression, ple's Hural of the People's Re- mutual non-interference in each Li Peng Meets pubhc of Mongolia paid an offi• other's internal affairs, equality US Study Group cial goodwill visit to the People's and mutual benefit, and peaceful Republic of China from May 4 to co-existence. hina's investment climate 7, 1990. 4. Vigorous efforts should be has been improving and the General Secretary Jiang Zemin made to develop, in a planned C mainland welcomes invest• of the Central Committee of the way, relations between China and ment from the outside, Chinese Communist Party of China, Pesi- Mongolia in the economic, trade, Premier Li Peng told an econo• dent Yang Shangkun of the Peo• scientific and technological, cul• mic and trade study group from ple's Republic of China met and tural and other fields on the prin• the US Council for International held talks on separate occasions ciple of equality and mutual be• Co-operation on May 8. with Chairman Punsalmaagiin nefit so as to enhance the mutual "We have worked out a series Ochirbat of the Presidium of the understanding between the two of foreign-related economic laws Grand People's Hural of the Peo• peoples and their friendly and and regulations so that the in• ple's Republic of Mongolia in a good-neighbourly relations. terests of the investors have legal friendly and sincere atmosphere. 5. The two sides believed that it guarantees," Li said. The leaders of the two countries was useful to exchange informa• The quality of the labour force briefed each other on their res• tion and experience on socialist in China, he added, is relatively pective domestic situation and ex• construction and economic re• good and labour costs are rela• changed views on furtherance of form and views on the bilateral tively low. The premier also noted the bilateral relations and inter• relations and international issues that in recent years China has set national issues of mutual interest. of common interest. The two sides great store by building an infras• 2. The leaders of the People's expressed their readiness to hold tructure and has seen great im• Republic of China and the Peo• meetings and consultations at ap• provements in energy and te• ple's Republic of Mongolia ex• propriate levels in the future lecommunications, especially in pressed their gratification at the when necessary. coastal areas. normalization of the relations be• 6. The two sides agreed that The group, headed by Anna tween the two countries and peace and development are the Chennault and with Irving Kauf• shared the view that their current two major issues of the present man and Chu Ai Ti as deputy high-level meeting opened up a world. To maintain world peace leaders, came to visit the main• bright prospect for further ex• and promote development of all land of China and to study the panding and developing bilateral countries calls for concerted ef• investment climate at the invita• relations and that steady growth forts by the international com• tion of the Chinese People's In• of the bilateral relations is not munity to properly handle var• stitute of Foreign Affairs. Many only in the fundamental interests ious complex problems confront• group members are entrepreneurs of the two peoples, but also con• ing the world in accordance with from Taiwan. ducive to peace and stability in the universally acknowledged After bidding the group wel• Asia and the world as a whole. norms governing international re• come, Li said: "Although we live 3. The leaders of the two coun• lations. China and Mongolia are under different social systems, as tries confirmed that the two coun• ready to make vigorous efforts to far as most friends present are

4 BEIJING REVIEW, MAY 21-27, 1990 EVENTS/TRENDS

concerned, we are all Chinese and China Sitong Social Development cent news briefing that Dinh No all hope China will become pros• Research Institute; Yang Baikui, Liem came to the Chinese capital perous." former chief of the research sec• on May 8 to inspect the Viet• He told his guests that despite tion of the Institute of Political namese embassy. some twists and turns, as well as Science under the Chinese Acade• During his stay, Dinh ex• mistakes, the People's Republic of my 9f Social Sciences; Zhou Duo, changed views with Assistant China has made much progress former director of the Depart• Foreign Minister Xu Dunxin on a since its founding in 1949. The ment of Strategy and Planning comprehensive resolution of the problem of food and clothing for of the Beijing Stone Group Com• Kampuchean question. 1.1 billion people has basically pany; Li Honglin, former pres• "This informal exchange of been solved and a relatively com• ident of the Fujian Provincial views is useful and has enh• plete industrial system has been Academy of Social Sciences; Li anced mutual understanding," established. Nanyou, a former editor of the the spokeswoman said. "Some China's goal is to concentrate World Affairs Publishing House common understanding has been on its modernization drive, Li and Dai Qing, a former reporter reached, but there still exist dif• said. He pointed out that a peace• of the Beijing-based Guangming ferent views on a number of ma• ful international environment Daily. jor issues, which will be further and stable domestic situation are On January 18 this year, the discussed by the two sides." necessary to achieve this objec• Ministry of Public Security an• When asked whether any views tive. nounced the release of 573 peo• were exchanged on the normali• China, he added, will continue ple involved in the turmoil and zation of the relations between its policies of reform and opening counter-revolutionary rebellion. the two countries, she said: "As is to the outside world, and feels According to the spokesman, well known, the major obstacle that learning from the advanced 431 such lawbreakers are still to the normalization of Sino- ideas of other countries is impor• being detained and investigated Vietnamese relations is the Kam• tant. by public security departments of puchean question. Only when this "This is to increase our capaci• Beijing. Some of the criminal of• question is given a fair and ty for self-reliance," he explained. fenders are to be dealt with by reasonable resolution can Sino- The premier described the esta• judicial departments, the spokes• Vietnamese relations be im• blishment of direct links in pos• man added. proved." tal, air and shipping services and People involved in the turmoil Vice-Foreign Minister Tian trade between Taiwan and the and rebellion and guilty of cri• Zengpei also met with Dinh and mainland as the trend of the minal activities will be dealt with hosted a banquet in his honour. • times. leniently no matter which social Chennault told Li that the stu• stratum they belong to as long as dy group has made contact with they honestly admit their crimin• Sino-UAE Ties many departments in Beijing. She al activities, make voluntary con• expressed the group's willingness fessions and show repentance, the Solid and Friendly to make continued efforts to spokesman said. Those who ob• promote economic co-operation. stinately stick to a wrong course, hina has traditionally en• refuse to repent and continue to joyed solid and friendly re• do evil, he said, will be punished C lations with Arab coun• strictly in accordance with the tries, Chinese President Yang law. • Shangkun recently told the visit• 211 Involved in ing president of the United Arab Turmoil Released Emirates (UAE), Sheikh Zayed Bin Sultan al-Nahayan. nother 211 people involved China, Viet Nam on During their meeting in the in last June's counter• Kampuchean Issue Great Hall of the People in Bei• Arevolutionary rebellion in jing on May 8, Yang said the Beijing have been released after ccording to a spokeswoman Chinese government appreciated full investigations. for the Chinese Foreign the efforts made by Arab coun• A spokesman for the Ministry A Ministry, China's Foreign tries, especially the Gulf states, to of Public Security said in Beijing Minister Qian Qichen met with achieve unity and mutual devel• on May 10 that all of them had Dinh No Liem, first deputy for• opment. been given lenient treatment. eign minister of Viet Nam in Bei• The United Arab Emirates is Among those released were Cao jing early in May. an old country but a modern one, Siyuan, former director of the The spokeswoman said at a re• Yang said, and under the leader-

BEIJING REVIEW, MAY 21-27,1990 5 EVENTS/TRENDS ship of Zayed, the people's living resources to improve the standard of the government of the Tibet standard has improved greatly. of living, said Jiang. Autonomous Region on May 7. The Chinese president visited Zayed said that the UAE will On account of the region's lim• the United Arab Emirates in De• always promote good relations ited accommodation and tourism cember, and said the visit had left with China. facilities, foreigners wishing to him with good memories. Talking with Premier Li, the travel to Tibet should apply in Zayed said his visit to China UAE president said that the gen• advance to departments con• would lay a solid foundation for uine friendship between the UAE cerned, he said. the further development of bila• and China has shortened the dist• According to Tang, foreign di• teral relations and expressed the ance between the two countries plomats and journalists (whether hope that the two countries would and "now we stand shoulder-to- stationed in China or visiting) frequently exchange such visits to shoulder, like brothers." should present their applications promote those relations. During his five-day official vis• to the region's foreign affairs off• The UAE president arrived in it to China, the UAE president ice, while foreign tourists and for• Beijing on May 7. It was the first and his delegation of more than eigners coming for trade talks visit to China by a president of 100 members also visited Shang• and economic and technical co• the United Arab Emirates as well hai and Suzhou. • operation should apply, respec• as the first by a leader of the six tively, to the region's tourism ad• Gulf states. ministration and department of Zayed also said he sincerely News In Brief foreign economic relations and hoped that people around the trade. world would live in peaceful and stable conditions because "it is China's Economy Picks Up Smedley Commemorated impossible to let people lead a good life without stability." After a period of economic The 40th anniversary of the readjustment, inflation in China Yang replied: "China is will• death of American writer Agnes has been effectively curbed and ing to contribute to maintaining Smedley (1892-1950) was marked the economy began to rebound in world peace." at a memorial in Beijing on May April, an indication that its econ• Later, at an evening banquet 8 under the auspices of the China omy is emerging from the dold• honouring Zayed, Yang said the Federation of Literary and Art rums, said Premier Li Peng on Chinese government has always Circles and the Smedley-Strong- May 7 when meeting with former supported the Arab and Palestini• Snow Society of China. Japanese prime minister Sosuke an people in their struggle to res• Uno in Beijing. Smedley came to China in tore their national rights and in 1928. Her writings, including finding a comprehensive solution Li said the Chinese Commun• Battle Hymn of China and The to the Middle East problem. ist Party and the government are Great Road: The Life and Times leading the country effectively, China also supports efforts to of Zhu De, reported for the first and he hoped the Western coun• promote peace talks between Iran time to the world the brave and tries will soberly come to terms and Iraq, and China will continue arduous struggle of the army led with this reality. its efforts to promote friendly by the Chinese Communist Party. relations among Arab countries, Uno expressed the hope that the Japan-China relationship The woman was praised as a Yang said. great international fighter who al• Zayed said the his country would return to the way it was prior to last June. He held that ways sympathized, with the op• maintains that an equal economic pressed labouring peoples and relationhip should be established China has made big efforts to improve relations with Western made contributions to their between industrialized countries emancipation. and developing countries to alle• countries, a fact that should not be lost on the world community. viate life-threatening hunger and CPC Delegation Visits poverty. Tibet Sets Rules for Cuba The Chinese Communist Par• Foreigners ty General Secretary Jiang Zem• A delegation of the Commun• in and Premier Li Peng held se• Tibet will continue to carry out ist Party of China (CPC) visited parate talks with Zayed on the policy of reform and opening Cuba from May 11 to 18 at the May 9. to the outside world and Lhasa invitation of the Communist Parr Jiang expressed admiration for has reopened to the outside world ty of Cuba. The delegation was UAE's outstanding achievements following the lifting of the mar• led by Wen Jiabao, alternate in the past 18 years. Prsident tial law on May 1, said Tang member of the Secretariat of the Zayed has used the area's rich oil Zhenqi, deputy secretary-general CPC Central Committee. •

6 BEIJING REVIEW, MAY 21-27, 1990 EVENTS/TRENDS Beijing Greets Antarctic Adventurers fTphe six adventurers who help mankind better understand Noting that the expedition was I trekked 5,986 kilometres the Antarctica. of great significance for the pro• A across the Antarctica over Beijing Mayor Chen Xitong gress of mankind, Yang told the 220 days were given a warm wel• welcomed the six adventurers adventurers: "Your success was come when they arrived in Bei• and members of their families on the result of common efforts and jing on May 8. behalf of the Chinese capital's it is also a symbol of unity More than 1,000 people from 10 million residents. The expe• among the people of the world." all walks of life gathered on May dition, Chen said, had attracted The people of China, he ad• 9 to meet the members of wide attention in Beijing. ded, are particularly proud of the 1990 International Trans- When meeting the expedition the Chinese team member, Qin Antarctica Expedition, who had members on the same day, made the first crossing ever of Chinese President Yang Shang- Dahe. the southernmost continent on kun called the six adventurers Yang also said that China has foot. "heroes" and "brave men." established two scientific stations They had battled the ice, snow Praising the six heroes, the in the Antarctica and will make and bitter cold along with their Chinese president said: "There is further efforts in the future in 41 sled dogs between July 1989 a Chinese saying that 'You are Antarctic studies. In addition to and March 1990. not a true man if you do not China's efforts, Yang encour• The expedition members were mount the Great Wall.' But as aged international co-operation Qin Dahe from China; Jean for you, it should be said that in that polar region. Louis Etienne from France; Will 'You are not a true man if you do "Let the Antarctica become a Steger of the United States; Vic• not reach the Antarctica and the common land for the people of tor Boyarsky of the Soviet South Pole." the whole world," he urged. Union, Geoff Somers from Bri• On behalf of the Chinese gov• Later at a news conference, tain and Keizo Funatsu of Japan. ernment, Yang added: "I wel• team members said they had col• Wu Heng, chairman of the come you heroes to visit China lected a wide range of materials China National Antarctic Re• because you have accomplished a useful for the study of ocean• search Committee, praised the great mission and made the first- ography, glaciology, physiology team's spirit of international co• ever crossing on foot of the con• and the ozone layer. operation and their efforts to tinent." by Zou Sicheng

The six Antarctic adventurers are: (top left to right) Jean Lonis Etienne, Will Steger, Qln Dahe; (bottom left to right) Keizo Fmiatsa, Geoff Somers, Victor Boyarsky; the heroes of the Intemational Trans-Antarctica Expedition are warmly welcomed at Beijing airport on May 8.

BEIJING REVIEW, MAY 21-27, 1990 INTERNATIONAL The World Sees Trade Blocs Increasing by Ni Feng ince World War II, the for• ing its new Asian-Pacific strategy. borders and ehminate market ob• mation of regional econo• At the beginning of this year, stacles. And the closer the coun• S mic groupings or trade blocs Soviet Premier Nikolai Ryzhkov tries' production levels are, the has developed widely, the esta• visited ASEAN countries and more urgently these countries blishment of the European Com• Australia for the first time and want to eliminate market barriers munity (EC) in 1958 being the indicated the Soviet Union's de• between them. This was the bas• most prominent example. sire to participate in economic co• ic reason for the trend towards Statistics for third world coun• operation in the Asian-Pacific re• large-scale grouping in central tries indicate that today there are gion. areas of the world economy dur• nearly 50 regional trade blocs. If In 1988, Australian Prime ing the 1980s. all bilateral and multilateral eco• Minister Robert Hawke visited Realizing economic grouping nomic co-operative organizations East Asian countries and regions and eliminating market obstacles are included, there would actual• to discuss establishing an econo• can bring visible and invisible ly be more than 70 such group• mic partnership. And last Nov• economic benefits to members ings. In Asia, for example, 26 ember, the first ministers' meet• of various groups. For example, countries or regions with a total ing of the Asian-Pacific Econo• countries in the European Com• population of 1.43 billion have mic Co-operation Committee was munity used to pay about 12 joined in various economic organ• held in Canberra. The possibility billion ECU (European currency izations. of establishing a loose economic unit) annually in service charges organization in the Asian-Pacific for personnel and goods passing New Clonditions region is, therefore, increasing. their borders. Enterprises and In order to develop their econ• consumers lost about 50 billion During the 1980s, new condi• omies and raise their position in ECU because of differing tech• tions appeared in the trend to• the world economy, developing nological standards of EC coun• wards grouping in the world econ• countries have also made calls to tries. These expenses and losses omy. In June 1985, a summit of further strengthen regional co• will no longer exist after the uni• EC countries decided to establish operation. fied market system is established an internal unified market to The trend towards trading in 1992. The system will reduce realize free movement of person• blocs and an increase in global transit services and unify tech• nel, commodities, labour and cur• economic activities have become nological standards, thus directly rency among its members. In important factors that all govern• economizing on capital and la• January 1988, Canada and the ments have to take into consider• bour. Regarding invisible econo• United States signed a free trade ation when formulating domestic mic benefits, because a agreement to eliminate tariff and foreign policies. strengthened EC competitive and non-tariff barriers within 10 mechanism will invigorate enter• years. (The agreement went into prises and the entire economy, force in January 1989.) At the Reasons for Grouping the competitive power of the EC's end of 1987, Japan proposed to Upgrading production in devel• commodities on the international set up an East Asia economic cir• oped countries requires economic market will increase. Thus, the cle to include countries in the As• grouping and the elimination of economy's healthy development sociation of Southeast Asian Na• obstacles to the circulation of will be maintained. tions (ASEAN) and the "four money and goods in internal mar• The trend is also related to the little dragons" — South Korea, kets. Trading blocs are therefore entire international political and Taiwan, Hong Kong and Singa• the natural result of the develop• economic structure and balance pore. The economic circle would ment of productive forces and an of power. After World War II, centre around the Japanese yen increase in the internationaliza• the United States insisted on mul• through a .trinity of trade, invest• tion of production. When the tilateral free trade when it was ment and currency. productive forces develop to a economically strong. However, The Soviet Union is also pursu• certain point, they seek to cross with the EC's rapid economic de-

8 BEIJING REVIEW, MAY 21-27, 1990 INTERNATIONAL velopment in the 1960s and 1970s tional situation brings new impe• regional groups. As a result, the and Japan's surge in economic tus to the development of econo• pace of integrating world indus• strength during the 1980s, the US mic trade blocs. try will be slowed. As well, the position in the world economy After World War II, the Ge• formation of regional economic dropped. The move to a multipo• neral Agreement on Tariffs and groups by developed countries lar world became more and more Trade (GATT) and the Bretton- will have a negative influence on evident. Currently, the United Woods international monetary developing countries' trade and States faces two major deficits system became the pillars of in• export. which it cannot control. Increas• ternational trade. However, the Such a trend has created some ingly, it has relied on foreign cap• function of GATT has been notable phenomena in world eco• ital. As the largest debtor nation, greatly weakened due to an in• nomics: it has been unable to maintain a crease in trade protectionism and 1. There have been speedy ad• vigorous multilateral internation• the Bretton-Woods system, which justments to industrial structures. al economic system. In order to pegged all currencies in the West, Industrial countries are mak• maintain its sphere of influence, collapsed early on. A fluctuating ing efforts to develop high- the United States needs to set up world monetary market has desta- technology industry. The compar• free trade alliances to meet com• bihzed the international trade en• atively highly-industrialized de• petition from Japan and Western vironment, provoking the trend veloping countries are trying to Europe. And, for all their in• towards grouping in the world transform their labour intensive creased economic strength, Japan economy. industries into technology inten• and Western Europe still are un• Hit hard by the economic crisis sive industries. Other developing able to replace the United States at the end of the 1970s, the devel• countries are trying to diversify to play a leading role in the oping countries' economic devel• their economic structures which world economy. Devaluation of opment entered a difficult period depend on the export of raw ma• the American dollar and appre• during the 1980s. Development terials. In order to speed up the ciation of the Japanese yen and slowed or stagnated. Their posi• adjustment of their economic European currency has result• tion in the global economy structures and revitalize indus• ed in increasingly sharp mar• slipped a few notches and the try, developing nations as well as ket competition. Trade clashes trade environment worsened. Western European countries and between countries have also in• In order to put an end to this the United States have adopted tensified and a new emphasis has situation, developing nations pro• measures to reduce administra• been placed on protectionism. posed establishing South-South tive involvement in enterprises Therefore, Western Europe and co-operation. As a result, they and turn state-owned enterprises Japan also need to increase their have formed numerous types of into private ones. economic strength and trade pos• regional economic groups, de• 2. Overseas investment has in• itions through grouping mea• signed to resist unreasonably low creased. As a result of the in• sures. prices for raw materials set by dustrial structural readjustment, Meanwhile, rapid changes in developed countries. some elements of industrial prod• the Soviet Union and Eastern Eu• uction have been transferred to rope have virtually brought about lesser developed nations from in• the collapse of the Yalta system, The Impact dustrialized countries. Various estabUshed after World War II by The tendency towards regional economic groups also are trying the allied victors during a meetr trade blocs started when the Un• hard to enter each other's market.' ing in the Soviet Union at Yalta. ited States lost its leading position In recent years, overseas private As well, the Cold War situation in the world economy. World eco• investment has skyrocketed. Ac• of military confrontation between nomics now follows a multipolar cording to a report deUvered by the United States and the Soviet pattern. There are now three eco• the Japan External Trade Organ• Union has gradually come to an nomic forces in the global econo• ization (JETRO), the accumula• end. Because of their economic my — the United States and Can• tive total of direct investment strength, Japan and West Ger• ada, the European Community, made by all countries reciprocally many have taken their place as and East Asia which includes Ja• by the end of 1987 was US$962.8 countries to be reckoned with. pan, the "four little dragons" and billion. Japan's overseas private This shows that the most impor• the ASEAN countries. Competi• investments in 1987 reached tant strategic problem for coun• tion among these three economic US$33.36 billion, a 50 percent in• tries to tackle is to increase their forces is expected to increase. crease over the previous year. In economic strength so they can be The trend towards regionaliz• the past two years, investment part of the international econo• ing the world economy will in• abroad by Taiwan and South Ko• mic race. The current interna• crease market barriers between rea has doubled or quadrupled,

BEIJING REVIEW, MAY 21-27, 1990 9 INTERNATIONAL

and a large part of it is concen• trated in Southeast Asia. 3. The merging of companies is in full swing. Company mergers in the United States in 1988 were valued at a record US$200 bil• Economic Surge lion. In that one year a total of 14 corporate mergers, each exceed• Seen in Thailand ing US$1 billion, were concluded. A survey of the European Com• munity shows a year by year in• by Xiao Wei crease in the number of mergers among the area's 1,000 largest en• terprises. There were 303 such Premier Chatichai rj^'^^ P^^t decade was a golden mergers in 1987 while in 1984, period for Thailand's eco• there were only 115. At the Choohavan initiated T nomic development. same time, trans-national mer• a concept of turning The annual average growth gers among corporations in the ''the Indo-Chinese rate reached 8 percent. The gross United States, Japan and Europe national product (GNP) last also developed vigorously. In battlefield into a year neared US$68 billion, 30 1988, 130 US corporations were markef and times higher than what it was in merged by Japanese enterprises the early 1960s. Per capita in• involving a total of US$12.7 bil• conceived a come in 1989 soared to lion, compared with a mere ''Southeast Asian US$1,200, eight times higher US$5.9 billion in 1987. The most than the early '60s. The agricul• noted merging activity was the economic rim. alliance between Daimler-Benz, tural proportion of the national West Germany's largest industri• economy in 1988 shrank to 15.6 al group and Japan's Mitsubishi. percent from 40.5 percent in the The merger of the two giant cor• 1960s, while that manufacturing porations shocked Western na• industry climbed to 25 percent tions. The wave of merging in• from 15 percent. In recent years, dicates the desire of industrial Thailand's foreign trade in• countries to become stronger for creased at an average rate of 20 future competition. The belief is to 30 percent and last year's ex• that large enterprises and trans• port volume surpassed US$20 national corporations will be in a billion. beneficial position because they The rapidly developing tourist can find places in each other's industry has become one of markets. Thailand's economic pillars. Last 4. Scientific and technological year, Thailand earned more than development has been given top US$4 billion from tourism and priority. Nearly every country its foreign exchange reserves has been increasing its annual amounted to US$10 billion. scientific and technological ex• The stable political situation penditures. Japan regards scien• and harmonious social environ• tific and technological develop• ment were responsible for this ment as its basic national policy. economic miracle. In particu• The European Community is car• lar, the export-oriented economic rying out a programme known as strategy conformed with Thai• the Eureka Plan, adopted in 1985, land's domestic situation. to promote technological research In the early 1980s, when Thai• and co-operation among its mem• land earned foreign exchange bers. It is now common know• mainly from exporting the pri• ledge that-economic competition mary products of rice and rubber in the future will be concentrated and depended on other countries on technology. • for its energy resources, its econ-

10 BEIJING REVIEW, MAY 21-27, 1990 INTERNATIONAL

The Thai government decided to replace the import-substitution strategy with the export-oriented development strategy to cope with economic challenges. omy suffered heavily from con• moved out of the darkness and Businessmen, spurred on by tinuous drops in the prices of into the sunlight. the policy, accompanied gov• primary products on internation• It began to turn around in ernment officials on journeys al markets and prevailing protec• 1986, when, after 20 years, it abroad, enthusiastically seeking tionist trade policies. Some econ• gained a favourable balance of economic information and en• omists were pessimistic about payment for the first time. For• larging foreign trade and econo• Thailand because of its tremen• eign exchange reserves increased mic co-operation. dous economic woes. They pred• to US$4.3 billion from US$2.5 In 1988, Premier Chatichai icted the situation would worsen. billion in 1983. Choonhavan initiated a concept In coping with the challenge, In the ensuing years, the world of turning "the Indo-Chinese the Thai government decided to economic climate became even battlefield into a market" and replace the import-substitution more favourable to Thailand. It conceived a "Southeast Asian strategy with the export-oriented has profited greatly from sliding economic rim." development strategy aimed at oil prices, the low exchange rate The fallout of these policies making more foreign exchange, of its currency ~ the baht ~ to and measures included last year's improving the international bal• the US dollar, low interest rates economic growth rate rising to ance of payment, realizing eco" and the refocusing of industrial 11 percent from 10.3 percent the nomic diversity and strengthen• structure in Japan and the "four year before. ing its capacity to meet the emer• little dragons" in Asia ~ Singa• Thailand's success in develop• gency. pore, South Korea, Taiwan and ing its economy was the result of At the same time, measures Hong Kong. several factors. The Thai gov• were taken to tighten budget Taking the opportunity to at• ernment not only provided legal spending, limit the import of tract foreign investment, the protection over domestic capital consumer goods, encourage tour• Thai government advanced a slo• and gave policy guidance to in• vestments, but also put capital ism and devalue its currency. gan of "economic diplomacy" and credits on the construction Through a series of readjust• and began to carry out "all- of industrial and agricultural in• ments, Thailand's economy round diplomacy." frastructures and non-profitable social welfare services. The Thai government also looked to foreign opportunities in its drive to promote the na• tional economy. In the mid-1980s, Japan and the "four little dragons" transferred some of their labour-intensive indus• tries to other countries because of the reorganization of their in• dustrial structure, high exchange rates and the high cost of prod• uctions. Thailand responded by making a series of preferential policies to attract foreign capital. The government pledged that it would not confiscate foreign in• vestments and would not esta• blish Thai enterprises that would compete against foreign enter• prises set up with its approval. A Japanese company builds a power plant on a ship and soils it to Thailand. Sanctioned foreign enterprises

BEIJING nVWi MAY 21-27, 1990 11 INTERNATIONAL

can freely take their profits out policies and economic help, the In the northeastern region, the of Thailand and preferential Thai government has been con• government is emphasizing the conditions on taxation are prov• stantly upgrading agriculture, construction of water conserva• ided to projects that are encour• developing the processing indus• tion projects, owing to the re• aged by the Thai government. try of farm produce and those gion's poor natural conditions From 1985 to 1987, the Thai industries that could bring in for agriculture. government approved 1,012 foreign exchange. The Thai government has also foreign-funded projects and the Therefore, Thailand's agricul• adopted preferential policies to volume of investment totalled tural production is on the rise encourage investment outside of US$9.7 billion, equivalent to and Thailand has become one of Bangkok, in order to support the that of the previous 25 years. In the world's five largest grain ex• country's backward districts. If 1988, foreign businessmen ap- porters, with the export volume Thailand realizes these goals, it p;ied for permission to launch a of rice and cassava ranking first will solve the problem of in• total of 1,271 projects in Thai• in the world market. dustrial concentration in a few land, involving US$15.7 billion However, there are some prob• areas, thus aiding the develop• in investment. The increased lems with Thailand's economy. ment of the economy throughout amount of foreign capital greatly Chronic fast-paced growth re• the country. invigorated Thailand's economy. sulted in an overheated economy Another factor that is slowing However, Thailand has taken a with last year's inflation rate in• Thai economic development is cautious attitude towards foreign creasing to 6 percent. It's expect• the level of education and loans. Based on its actual need ed to reach 6.5 percent this year. science and technology. Current• and capacity of repayment, the Increasing inflation will not ly, the greatest part of foreign Thai government has set a strict only reduce the competing edge investment is in labour-intensive ceiling on foreign debts and in• of Thailand's commodities on and low-technology industries. troduced foreign capital from the world market, but could also Even at a higher level, in the various channels. trigger social turbulence. electrical equipment and elec• tronics industries for exam• Thailand has restricted the As well, there are grave region• ple. Thai workers merely do amount of money that can be al imbalances in Thailand's eco• nomic development. Currently, assembly-line work rather than borrowed from leading foreign develop high technology. lenders and has established a cor• 78 percent of all industrial prod• It is estimated that Thailand responding checking system over ucts come from Bangkok, while 3 each year needs 8,000 engineers the administration and use of percent comes from the northern and technical personnel and the foreign money, which enables region, 5 percent from the north• number will increase to 18,000 the Thai government to constant• eastern region and 2 percent from the southern region. by the next decade. However, ly maintain its repayment rate at In the districts ringing Bang• only 3,000 people graduate from a rational level and successfully technical colleges today, which avoid a heavy debt burden. kok, per capita income is close to US$3,000, while in the poorest falls far short of the demand. Another factor that weighed northeast district, it is less than The Thai government has tak• heavily on Thailand's economic US$300. This unbalanced econo• en measures to alleviate this development was the relation• mic development has had a nega• problem. It has instituted a sys• ship between industry and agri• tive impact on the country's pol• tem of compulsory middle school culture. As an agriculture- itical and social stability. education in urban areas, esta• dominated country, Thailand Last year, the Thai govern• blished new colleges and techni• has a large rural population, ment mapped out an over-all cal secondary schools and raised making up about 80 percent of programme to vigorously devel• the salaries of teachers. In the the total. Thus, agriculture has a op all districts. According to the next five years, the Thai govern• pivotal role in economic progress programme, Thailand is plan• ment will spend 2 billion baht to and social stability. ning to establish a heavy indus• send students to study abroad. In its efforts to realize Thai• trial zone on its eastern coast There is still a huge gap be• land's industrialization, the gov• with the petrochemical industry tween Thailand and the "four lit• ernment viewed agriculture as as its main industry. In the long tle dragons" in terms of eco• the foundation and promoted and narrow region in the south, nomic strength, technology, in• agriculture by developing indus• the government dreams of an frastructure and industrial struc• try. "economic corridor" which will ture. Some economists believe By means of direct invest• connect the Pacific and Indian Thailand has a long way to go ments in construction of water oceans, thus, forming another in• before it becomes the "fifth dra• conservation projects, favourable dustrial base for export. gon." •

12 BEIJING REVIEW, 1990 CHINA

China's Space Industry Takes Off China has set up a multi-launching missile system, which has brought to the world's most advanced level the country's technology in the field of satellite recovery, multiple missile launching with a single rocket, satellite survey and control and high-energy cryogenic fuel rocket. The following article tells about historical development of China's space industry.—Ed.

ot long after the founding world's first man-made satellite sion on the development of so• of the People's Republic in October 1957, Chairman Mao phisticated technology and the N of China in 1949, the Cen• Zedong foresaw the full impact Central Military Commission of tral Committee of the Commun• of astronautic technology on the CPC Central Committee ist Party of China, headed by mankind and issued the call, further defined the principle of Chairman Mao Zedong, made an "We should also develop satel• developing both missiles and important decision: While ener• lites." Even in 1960 when Chi• atom bombs and giving first getically developing the national na's national economy was beset place to the former. Under these economy, China must strengthen by serious difficulties due to na• circumstances, China basically the building up of national def• tural calamities and other caus• established a test base for mis• ence in order to guarantee state es, Chairman Mao still proposed, sile researching, production and security and independence, pro• "We must make up our minds launching from 1959 to 1961, a tect the economic construction of to develop sophisticated technol• time when China's national econ• ogy. The development of sophis• omy met with temporary diffi• New China and maintain Chi• culties. In 1962, a special com• na's international standing. ticated technology must not be mittee of the central authorities In 1956, China established a relaxed, to say nothing of headed by Premier Zhou Enlai missile research institute. When stopped." Also, the Party Central was set up to lead the work for the Soviet Union launched the Committee made a relevant deci• developing sophisticated technol• ogy of the defence industry, in• cluding space technology, thus ensuring great achievements in this area in the mid-60s. During the ten-year turmoil (1966-76), the space industry was heavily undermined and buffeted, but Premier Zhou Enlai and other Party and government leaders adopted various measures to pro• tect the ranks of astronautic scientific and technological per• sonnel so that some key projects could be carried out uninter• ruptedly and attain tremendous achievements. Thanks to the joint efforts made by scientists, technicians, cadres and workers on the as• tronautic front over the past more than three decades, China's Scientists and technicians o( a remote sensing ground station study a satellite chart. space industry, starting from YANG WUMIN scratch, has grown rapidly. A

BEIJING f^l^, MAY 21-27, 1990 13 CHINA fairly large, relatively complete ods, providing the country with a satellite recovery technology. Af• space industrial system that com• nuclear counterattack deterrent ter the Soviet Union, the United bines scientific research, produc• force. In the field of tactical mis• States and the European Space tion and education has been esta• siles, an all-space missile system Agency (ESA), China is the blished. The industry has made for air and coastal defence has fourth country to have launched great contributions to the streng• been formed. Breakthroughs a number of satellites using a thening of the country's national have been made in the develop• single carrier rocket. In satellite defence and economy. ment of ground-to-ground mis• surveying and controlling tech• To date, China has developed siles and 27 man-made satellites nology, China has established a many kinds of tactical and stra• have been launched successfully. TTC network composed of more tegic missiles and carrier rockets At present, in some important than 10 ground observatories and is able to produce short-, aspects, China's space technolo• with surveying, controlling and intermediate- and long-range gy has entered the ranks of the communications centres and te• and intercontinental missiles world's most advanced. For inst• lemeter control vessels. After the and ground-to-ground and United States and France, China ance, China has successfully re• is the third country to master underwater-to-air missiles. It ini• covered 11 satellites and has be• high-energy cryogenic fuel rock• tially has set up a missile system come the third country in the et technology, which represents a of multiple-range missiles and world (after the United States new level of modern rocket tech• various types of launching meth• and the Soviet Union) to master nology. In earth synchronous or• bit satellite launching technolo• gy, China is one of five countries in the world that can launch sa• tellites with such technology. Depending on Socialism Space technology involves vast, complicated systems engi• neering. Satellite communication engineering, for example, in• cludes five big systems—satellite carrier rocket, launching site, TTC network, and ground com• munication network, and in• volves many branches of learn• ing, specialized subjects and technologies. It demands well- organized work, co-ordinated ac• tions, unified leadership and good co-operation of various fields. In a word, it requires a high level of planning. To devel• op a space industry, particular• ly in an underdeveloped social• ist country like China which is hampered by a shortage of qual• ified scientists and technicians as ^ well as funds, it is all the more necessary to bring into play the unique superiority of socialist planned economy, concentrate forces, organize co-ordination on a national scale for solving key technical problems. Only in this way can China quickly advance A launching pad at the Jinqnan Satellite Launching Centre. HUABAo its Space technology in a short

BEIJING REVIEW, M6ifi'8l'27, 1990 CHINA time. ed out, "We stand for self- researching process, we tried our To ensure the supply of var• reliance. We hope for foreign aid best to master designing and ious kinds of high temperature- but cannot be dependent on it; manufacturing skills. Therefore, resistant materials, high pure we depend on our own efforts." we could immediately do our fuels, high-strength steel, preci• own designs and independent re• sion alloys, rare metals, semi• Self-Eeliance search when foreign assistance in conductors, compound materials this regard was suspended. From and rare gas for the space indus• Recalling the historical devel• the 1960s, all our tactical and try, the departments under the opment of the space industry of State Council, scientific research more than 30 years, we see that strategic missiles, carrier rockets institutions and relevant facto• an important experience is stead• and man-made satellites were de• ries, colleges and universities fastly to uphold the principle of veloped through our own efforts have co-operated in tackling key independence and self-reliance, under conditions of foreign problems. From 1960 to 1966, while actively learning and in• blockade. The success fully nearly 4,000 kinds of new ma• troducing foreign advanced tech• showed the intelligence, wisdom terials had been developed. nology. As early as the founding and great strength of the Chinese The electronics and machine- of the industry. Chairman Mao people. This shows that foreign building industries adopted strict Zedong and Premier Zhou Enlai blockade and sanctions may management measures to ensure approved the construction poli• bring us some temporary dif• the development of products for cy put forward by Marshal Nie ficulties, but from a long-term the space industry, and so, very quickly, all the materials needed in the making of carrier rockets were being produced in China. In co-operating, each depart• ment took the whole situation into account and selflessly con• tributed whatever the space in• dustry needed in respect to man• power, materials and technology, fully displaying the political and economic superiority of China's socialist system. The manufac• ture of the Long March II carrier rocket, for instance, involved more than 4,000 projects under• taken by 1,300 industrial and mining enterprises, research in• stitutions, colleges and universi• ties under 27 ministries and commissions and 25 provinces, municipalities and autonomous regions. When it was being launched, tens of thousands of people from various posts The "Long March" III Caniei Rocket. ZOUYl . (launching, survey and control, Rongzhen: "Relying chiefly on point of view, it spurs us on to telecommunications, transporta• our own efforts while striving for stand on our own feet. tion, hydrological, meteorologi• foreign aid and fully using scien• After the Third Plenary Ses• cal, security and materials sup• tific achievements made by capi• sion of the 11th Party Central ply) in more than 20 provinces talist countries." In the 1950s, Committee, China adopted the and municipalities and the Peo• the Soviet Union gave us some open policy, and great changes ple's Liberation Army participat• technical assistance in the de• also took place in the world, ed in the work under the unified velopment of liquid-propellant providing favourable conditions command of the Commission of rocketry. But from the begin• for China to actively develop in• Science, Technology and Indus-, ning, we took its assistance as ternational co-operation and ex• try for National Defence. a means to strengthen our self- changes, import technology, cap• Chairman Mao Zedong point• reliance. In the modelling and ital and talents, and expand ex-

BEUINGj^^^W, MAY 21-27, 1990 15 CHINA ports. The result is the country's ment of military supplies, and ages. abihty of self-reliance has been the military industry should Taking full use of its technolo• enhanced. Nevertheless, China produce civilian goods to support gy, equipment and talents, the still can introduce only some or• itself." From then on, the space space industry has supplied a dinary technologies. The real industry began to change from large amount of equipment and advanced technologies, especial• a mono-military industry into a technology to the light, textile ly space technology, are still combined military and civilian and chemical industries. Major highly restricted and not avail• industry, and from looking in• efforts have also been devoted to able to China. wardly to looking outwardly. the development of civilian prod• Over the past few years, while ucts such as automobiles, mo• Policy Redefined fulfilling scientific research and torcycles, refrigerators and air- production targets for weaponry, conditioners. Now the output Not long after the Third Plen• the space industry, using its ad• value of civilian products ary Session of the 11th Party vantages in technology, equip• amounts to around 70 percent of Central Committee, Comrade ment and personnel, made great the industry's total. Deng Xiaoping, analysing the in• efforts to readjust product mix While concentrating on the ternational situation scientifical• and develop civilian products domestic market, the space in• ly, came to the conclusion that a and foreign trade. It has made a dustry has done its best in recent large-scale world war would be good start in developing civili• years to open up an international unlikely to break out for a long an products. A large number of market and develop exports. The time to come. According to this astro-physical data collected by Long March II, III and IV car• judgment, the Party Central scientific experiment satellites rier rockets developed by China Committee and the Central Mil• provided first-hand materials for have begun to serve foreign itary Commission of the CPC the study of space basic science; countries. For instance, in 1987 Central Committee once again photos taken by land survey sa• and 1988, using a recovery satel• defined the policy for the build• tellites have been widely used in lite, China supplied carrying ser• ing up of national defence and land and geological survey, pe• vices to France and the Federal formulated the policy for the troleum prospecting, cartogra• Republic of Germany, while in defence industry: "The industry phy and environmental moni• April 1990, China used its mod• should develop both military and toring; the communications sa• ified Long March III carrier civilian products, the plan for tellites launched by China have rocket to successfully put into time of peace should be com• enabled the country to realize orbit the Asiasat-I, an American- bined with a plan for time of nationwide television, broadcast• made telecommunications satel• war, give priority to the develop• ing and communications cover• lite. This signaled the entry of Chinese space technology into the international commercial market.

Strong Technological Forces In a developing country like China, the major factor in the rapid development of space tech• nology is a strong scientific and technological contingent. In the development of the space indus• try, a large number of people with a high technological level and fine working style have ma• tured. Among them there is a batch of famous experts who, cherishing high patriotic ideals and overcoming various obsta• cles, returned to the motherland from foreign countries after the People's Republic was founded The "Yuanwang" telemeter control vessel on the Pacific. ZOU Yi and threw themselves into the

16 China's Township Enterprises Township enterprises have developed rapidly as a new economic force all over China in the process of reform and opening to the outside world. They now number more than 18 million, employing 95.4 million people, 23.8 percent of the total agricultural labour force. In recent years, they have paid 114.4 billion yuan in taxes to the state, and earned US$8.02 billion in foreign currency. Their enterprise profits and farmers' income earned during this period combined to total 382.8 billion yuan. The development of township enterprises has provided a necessary material base for providing rural social securities, developing rural education, consolidating grass-root political power and promoting ethics and culture. The state has designated township enterprises as part of the rural economic growth, and incorporated it into the national economic development plan. These pictures may help our readers get an idea of the nature of China's township enterprises.

Lu Guanqiu (left), an ordinary farmer, has built up a township farm tool repair shop that employed only seven workers and had 4,000 yuan in capital into a factory that exports universal joints and has more than 1,100 employees and fixed assets of 22 million yuan. Today, the Hangzhou Universal Joint Factory he directs earns US$1 million in foreign currency for the state each year.

The Sea Fishery Stock Company established by farmer Guo Jiaming (right) and others in Wenling County, Zhejiang Province, exported over 500 tons of frozen shrimp and other aquatic products in 1988, earning US$2 million in foreign currency.

The Xinjin County General Garment Industrial Mill in Liaoning Province, established by Li Gui- lian and more than 80 other farmers ten years ago, has developed into a large factory with four branches, more than 900 pieces of garment prod• ucing equipment and more than 2,000 employees. It has more than 50 foreign clients. Photo shows workers attending a tailoring lesson. The spray nozzle factory run by Fushan Town, Jiangsu Province, has established an integrated complex of production, scientific research and education with Beijing Iron and Steel College and Maanshan Iron and Steel College, which help the factory to produce new products and develop new technology by establishing a metallurgical and energy research institute in the factory. It sends students to do field work there every year. Here, factory technicians and students perform research on energy-efficient spray nozzles.

YSD hydraulic lifts produced jointly by a farmer- run machinery plant in Tongan Township, Jiang• su Province and Shanghai Zhongli Lift Factory are sold in Southeast Asia. Products of the Art Porcelain Factory, es• tablished by farmers in Chaoyang district, Beijing, are sold in Italy, the United States, Britain, France, Spain, Japan and oth• er countries. Its painted and enamelled bronze work, produced with techniques that originated in Europe, came to China in the 17th century and are now forgotten in Europe, are warmly welcomed by foreign businessmen. The Mudu town waterworks in Suzhou was built with capital accumulated from township enter• prises. It guarantees clean drinking water for local J farmers.

Tunxi District in Huangshan, Anhui Province, has made great efforts to develop township en• terprises in recent years and local farmers have become rich. Photo shows a newly built village for Farmers of Taojiang County, Hunan Prov• ince, use local bamboo to make handicrafts ' for export, gaining economic benefits.

An expert (right front) from the Beijing Solar Energy Research Institute introduces new sciemific and technological results to representatives of suburban township en• terprises.

The Eel-Breeding Ground of Nanjing County, Zhangzhou City, Fujian Province, exported over 100 tons of eels in 1987, earning US$630,000 in foreign currency.

The Wangjiang Guest House (left) and Tongjiang Hotel (right),in downtown Hefei were built with funds from farmers in Anhui Province. Kites produced under the guidance of veteran skilled workers by Yangjiabu Kite Factory in Shandong Province sell well at home and abroad. Various kinds of pickled vegetables produced by Daliangxiang Pickle Factory, in Wuqing County, Tianjin, sell in Japan. Photo shows workers preparing pickled sweet potato vines.

Waste iron, steel, glass and plastic from indus• City youths from Nanchang, Jiangxi Province, chosen to work in try and the public are made into farm tools a township enterprise in Shunwai village, in the suburbs of Nan• and daily articles by some township enterpris• chang, are greeted by the director. es in Luchuan County, Guangxi Zhuang Au• tonomous Region, with an annual output val• ue of over 15 million yuan.

•I; ,7/:iryi CHINA building up of New China's space industry and made great Chronicle contributions. Most of the cadres, workers, scientists and Satellites Launched By China technicians grew up after libera• Since 1970, China has successfully launched 27 man-made tion. They take pride in working • earth satellites. under difficult conditions and give no thought to personal April 24,1970 the "Dongfanghong" (the East Is Red) No. fame, position, and pay. Their 1 Satellite deeds mark them as the back• bone of the space industry and March 3, 1971 a scientific experimental satellite an important segment of the whole country's most highly- July 26, 1975 a technological experimental satellite qualified scientific and technol• November 26, 1975 a recoverable satellite ogical workers. Among the large number of December 16, 1975 a technological experimental satellite experts emerged in the space in• dustry, there are Qian Xuesen, August 30, 1976 a technological experimental satellite Ren Xinmin, Liang Shoupan, Tu Shoue and Huang Weilu, who December 7, 1976 a recoverable satelhte played a leading role in its devel• January 26,1978 a recoverable satellite opment. Although China has achieved September 20, 1981 for the first time, sending into a great deal in its space industry, predetermined orbit by a single carrier it still has a long way to go to rocket a group of three spacephysics reach the world advanced level. experimental satellites Since the 1980s, the developed countries, one after another, September 9, 1982 a recoverable satellite have formulated plans for devel• August 19, 1983 a recoverable satelhte oping high technology and some developing countries have also January 29, 1984 an experimental satellite taken the building of space tech• nology as a national policy. April 8, 1984 an earth synchronous orbit Deng Xiaoping said, "If China communications satellite had not exploded atom and hy• drogen bombs in the 1960s and September 12, 1984 a recoverable satellite launched satellites, it would not October 21, 1985 a recoverable satellite have been considered one of the three big powers and would not February 1, 1986 a communications satellite occupy such a position in the world. These things can mirror October 6, 1986 a recoverable satellite the capability of a nation and symbolize a country's vigour and August 5,1987 a recoverable satelUte prosperity." He also noted, "Be it September 9, 1987 a recoverable satellite in the past, present or future, China must take a place in the March 7, 1988 a communications satellite high-tech arena." According to its national conditions and the August 5, 1988 a recoverable sateUite requirements of the four moder• nizations, China is set to develop September 7, 1988 China's first experimental meteorological a new generation of astronautics satellite equipment in the 1990s. This December 22, 1988 a communications satellite year, it is to launch several satel• lites of diversified functions and February 4, 1990 a communications satellite to further expand international co-operation in the field of as• April 7, 1990 AsiaSat-I tronautics. •

BEIJING REVIEW, MAY 21-27, 1990 21 CHINA

A Magnificent Scientific Exploit Geologist Qin Dahe is the first Chinese to walk across the Antarctica. This article describes how he and five others in an international expeditionary team trekked for seven months across the Antarctic Continent without mechanical aids, an historical first.—Ed.

he 1990 International monstrated human prowess in my of Sciences, completed his Crossing-the-Antarctica conquering nature. work of glacial observation and T Scientific Exploratory The exploration was an im• of ice and snow sample collection Team set out on July 28, 1989 portant scientific endeavour, not on route. The rare specimens he and arrived at the Soviet Peace simply a venture into the gathered from the Antarctic "in• Station, the terminal set for the unknown. This was emphasized, accessible area," in particular, exploration, on March 3, 1990. in particular, by the participa• provided scientists with fresh The team experienced 220 days tion by the Soviet and Chinese study material. He sent more of difficult struggle as they cov• scientists. The scientific expedi• than 800 snow samples to la• ered a distance of 5,986 kil• tion helped to temper humanity's boratories in China, the United ometres, travelling via the An• wisdom. States and France for analysis of tarctic point and "inaccessible Qin Dahe, an associate re• chemical composition in order to area." The exploration involved searcher of the Lanzhou Glacier discover more about changes in extreme danger, arduous effort and Frozen Earth Research In• the earth's climate and environ• and difficulties; its success de• stitute under the Chinese Acade• ment over the past century. The recent exploration held the attention of the world. On the day it arrived at the terminal point, the team received congra• tulatory messages from Chinese Premier Li Peng, US President George Bush and his wife and French President Francois Mit• terrand, as well as messages from Japanese Prime Minister Toshiki Kaifu and British Prime Minis• ter Margaret Thatcher. All mem• bers of the expeditionary team met with the French and US presidents and were accorded a warm welcome in Australia. They will also visit the country of each member of the expedi• tion team. Composition The exploration, co-sponsored by American professional ex• plorer Will Steger and French

22 BEIJING REVnSWjviJhVY 21-27,1990 CHINA doctor Jean-Louis Etienne, com• prised six members from six countries. Will Steger, 45, graduated from the geological department of a university in Minnesota, USA. Jean-Louis Etienne has been not only an ardent moun• taineer but also an ocean and Arctic explorer for the past doz• en or so years. Once, travelling solo by sledge, he reached the North Pole. Dr.Victor Boyarsky, 40, is a Soviet glaciologist and meteorologist, with strong poetic learning. Jeoff Somers, a Bri• tish team member and a middle school graduate, is an enthusias• tic explorer, who has never been disheartened. Keizo Funatsu, 33, Qin Dahe with well-wishes as he retains to Beijing on April S, I990. DAI the Japanese team member, once terials to the starting point and, JIMING covered the American continent on July 28, the exploratory team the cost of the team members' and crossed the Sahara by bike. began its journey. lives. Qin Dahe, 43, specialized in Antarctica, a continent cov• The route marked out for the the study of glaciers. He twice ered almost entirely by ice and recent exploratory team was to worked in Antarctica and served snow some 2,000 metres thick, set off from the Antarctic Pen• as the Fifth Overwintering Team is the most frigid, most windy insula located northwest of the leader of the China Antarctica place on earth. At the Antarctic South Pole, travel via the South Investigation Team. Pole, the mean annual tempera• Pole in the centre, pass through Two Saudi Arabian scientists ture is minus 50 degrees C. In the "inaccessible area," cross the worked as a support team and July 1983, tests showed a record Antarctic plateau in the east and manned a survey boat, conduct• low temperature of 89.2 degrees finally arrive at the Soviet Peace ing an oceanographic investiga• C. below zero. Wind speed can Station. This was the longest tion of half the Antarctic Ocean. reach 240 kilometres per hour. route across the Antarctica. The investigation team set off On December 14, 1911, the first from Minneapolis, capital of the exploratory team led by the Nor• Learning to Ski State of Minnesota, USA on July wegian explorer Roald Amund• The weather was rough and 16, 1989, on board a Soviet 11-76 sen arrived at the Antarctic Pole the journey difficult; it was par• jet transport plane. Also on by dog-sled. A month later, on ticularly hard for Qin Dahe be• board were the crew members, January 17, 1912, an exploratory cause he was the only one among around 20 reporters, and 42 dogs team led by the British explorer the six explorers who had not as well as 40 tons of goods. Robert F. Scott reached the An• learnt to ski. In the beginning he Flying via Cuba, Argentina and tarctic Pole but perished com• fell behind the others but would Chile, the expedition finally pletely on its return journey. run for all he was worth to keep reached the vicinity of China's Several decades later, people dis• up. It placed an extreme strain Antarctic Great Wall Station on covered from a reading of Scott's on his body and he was forced July 24, 1989. diary that, in the last few days by necessity to take up skiing. of the expedition, team members Though he often fell, he kept at A World of Snow it. At first, he skied for just one could walk only two kilometres hour, then two, gradually reach• China's Great Wall Station, a day; Scott died only 18 kil• ing four hours a day. His skiing two kilometres from the airport, ometres from his food storage time increased daily until by Au• was the supply and rear-service area. It was also discovered that gust 22 he was able to stay on his base. On the morning of July 26, the sledges were loaded with skis all day long like the others. a small airplane ferried small ores, not food grain; the ores, The going was difficult; they groups of team members and ma- therefore, had been gathered at took up two-thirds of the allotted

BEIJING REVIKW/ IMAY 21-27, 1990 23 CHINA their faces like knives. They used their worn-out trouser legs for headgear to cover their faces, leaving only slits to look through. At the end of each day, their eyelashes were covered with ice particles as big as soya beans, and the surface of their clothing was frozen into a hard shell. Returning to their tents, they had to smash the ice layers covering their clothes and dried their wet clothes by a fire. Dur• ing the blizzard, Qin's right eye• lid became frost-bitten, leaving a scar on his face still visible on his return to China. Food supplies were in dried or Collectiiig snow and Ice samples from a pit doling the expedition. powdered form; the team mem• XINHUA NEWS AGENCY bers generally had to use a ham• mer to smash it up before cook• time to advance the first one- himself into the crevice in order ing it. What with the tasteless, third of the journey. Their clo• to save them. monotonous food, the bitter cold, sest, most important partners the strenuous skiing, and the were 40 rigorously trained dogs, Meeting a Blizzard Head-on arduous physical exertion, 12 to a team, which pulled everyone lost weight. After three sledges strenuously across the August passed and in Septem• months, Qin's weight dropped by snowfield. The Antarctic Penin• ber they continued their journey 15 kilogrammes. sula was covered with ice crev• heedless of wind and snow. They They used a 20 watt radio sta• ices, and though the snowfield got up at 5:30 every morning, tion to communicate with the looked flat and smooth, cracks prepared their meal and set off at outside world. However, this would suddenly appear in the ice 8:30; they set up quarters for the could not guarantee the safety of layer beneath the snow. Some• night at 6:00 in the afternoon. their lives. Under bad weather times, when dogs fell into the ice In September and October, conditions, such as a strong bliz• cracks, a member would have to they were struck by a blizzard, zard with low visibility, if they tie on a safety belt and lower the fierce sheet whipping against were in danger, it was impossible to mount a rescue by airplane. In that case, the radio was rendered useless. For a time, their ties with the outside world were frequent• ly cut off. They had a hard time getting into contact with the plane. However, because the blizzard was too strong and the visibility low, the plane could not determine their location ac• curately and therefore could not deliver food. In order to ensure safety, they dropped food in the area ahead of the expedition. However, much of it was not found or was simply lost. When the food at two neighbouring material distribution centres was lost, they had to reduce their ra• tions by 1/4 for the,men and 1/2

BEIJING BEVI^„;^^21-27, 199« CHINA for the dogs. At one time the situation was very dangerous be• cause there was only enough dog- food to last two days. Crossing "Inaccessible Area" The "inaccessible area" in the 1,250-kilometre section between the South Pole and the Soviet eastern station is a vast expanse in Antarctica without any meteo• rological information for guid• ance and therefore demanding the utmost caution on the part of the explorers. Before crossing it, they had to be fully prepared mentally. They first rested for three days at the South Pole. French adventurer lean-Lonis Etienne nses a rope to climb down into a hole to save They discarded many things, so a sled dog. XINHUA NEWS AGENCY that each person brought only one suit of clothes and no more than their carefully reckoned ra• tions. All these preparations were aimed at reducing the weight of the sledges to a mini• Uk4 mum. According to plan, they trekked more than half a month in this area, averaging 48 kilo• metres a day. At the time, Qin's work load was increased visibly because, as a scientist, he had to shoulder the task of scientif• ic study in addition to explora• tion. Like the other team mem• bers, every day he had to feed the dogs, prepare meals, clear the snow, pitch tents, and transport Members of the expedition team dig out provisions from uidei the snow. goods. These accomplished, ev• XINHUA NEWS AGENCY erybody entered the tents, Qin, to be reduced. Under the cir• both weal and woe. The need however, still had to cut the ice cumstances, they held an "inter• for their co-operation was readi• and dig snow samples for exami• national meeting" and decided to ly apparent. When he arrived nation; these tasks generally took abandon the meteorological in• at the "inaccessible area," Qin him 30 to 60 minutes. strument. Thus, in order to en• needed to dig a 2.5-metre-deep He had to pay a high price for sure a safe crossing of Antarc• snow pit. Alone, the task would each bit of data, each photo tak• tica, the Soviet scientist agreed have taken about three hours to en, and each snow sample col• with the decision, however reluc• finish but with the help of the lected. He worked unceasingly tantly. other five members the work every day and so gathered a com• went much more quickly. plete set of materials. The Soviet Friendship and Co-operation Their communal spirit was scientist was responsible for me• both social and practical. Even teorological observations. The Their common life experience in times of hardship, they never apparatus was quite heavy. and mission, along with their forgot to celebrate such an occa• Scarcely had they travelled half fearless spirit, closely linked the sion as a birthday. For the six the set distance, one of the dogs destiny of the six men together members, the birthdays which was frost-bitten and the load had and so they harmoniously shared occurred once a month between

BEIJING RlMifW;1VIAY 21-27,1990 25" CHINA March 1989 to February 1990, excepting October, offered them a chance to socialize. On each occasion, they would gather in a tent to sing for 30-40 minutes and to listen to the Soviet explor• er reciting one of his poems dedi• cated to the "magnificent contri• butions" made by the "birthday" explorer during the expedition. The British explorer, a very pre• cise companion, took the time to prepare five birthday cards as presents for his friends. At each celebration, there were no sweets nor colourful lights to give a fes• tive atmosphere, only a cup of tea brewed with friendship and warmth. British adventmei Geoff Somen dons a celebratory mask when the expedition team arrives at the South Pole on December 12, 1989. XINHUA NEWS AGENCY The Destination lower latitudes, it would become received treatment in time. When the expedition team left increasingly colder. Twelve days At 20:10 hours on March 3, the Eastern Station on January later, when they arrived at the 1990, all members of the expe• 21, 1990, the temperature of the Communist Youth League Sta• dition team reached their final area was minus 41 degrees Cen• tion, a summer station of the So• destination~the Peace Station of tigrade. According to the Soviet viet Union, the temperature was the Soviet Union. It was a suc• scientists at the station, the tem• already minus 49 degrees Cen• cessful end to the 220-day perature would drop to minus tigrade. Many sled-dogs were "1990 International Crossing- 40-50 degrees Centigrade in Fe• frost-bitten and as they gnawed the-Antarctica Scientific Expedi• bruary. After hearing the latest at the ice on their legs, tearing tion." weather forecasts, the members away their fur and skin, their After returning home, Qin could not help but feel anxious; opened flesh dripped with blood. Dahe recalled how great an hon• they had only completed a little The situation was critical. For• our it had been for him to take more than half of their trek. Mo• tunately, two tractors provided part as a scientist in the historic reover, as they headed towards by the Soviet side were waiting expedition and how he would the Antarctic plateau and the for them and the wounded dogs never regret his decison to go despite the hardships encoun• Members of the expedition team fight a blizzaid to pat np a tent. tered. It would, he said, not have mattered even if unforeseen acci• XINHUA NEWS AGENCY dents had occurred. "Our efforts were crowned with success," Qin said, "I think this was brought about by the indomitable will instilled in all of us by the people's trust. My faith in the expedition came from my feelings of pride in being a Chinese citizen and in being a descendant of the Yan and Huang Emperors of China. Therefore, the honour belongs to all the people. My actions are a tribute to my motherland, and to the people who encouraged me."

BEIJING K£ya«tMS» 21-27, 1990 CHINA sluggish markets appeared after April last year, bringing about an increase in industrial and commercial inventory and a drop in sales. Also, since some industrial and commercial enter• G>iisimierisin Loses Its Appeal prises lacked raw materials and funds or entangled with each by Ma Zhanping and Wu Zhenping other in debts, their economic re• turns dropped, so did the income of their employees. uring the first ten years of the State Statistical Bureau, ur• Institutional spending reform and opening to the ban and rural residents' income dropped, too. Because special Doutside world from 1979 was ^04 billion yuan, an 18 per• measures were taken to strictly to 1988; China successfully met cent increase over 1988, clearly control institutional spending, the goal of doubling its agricul• lower than the previous year's instances of waste such as extra• tural and industrial output val• rate of 22.6 percent. The total vagantly wining and dining, en• ue, gross national product employee payroll reached 264 tertaining guests and presenting (GNP) and national income. In billion yuan, an increase of 14 gifts at public expense decreased recent years, however, due to an percent over the previous year, a somewhat and the volume of re• "overheated" economy and a de• drop of 9.1 percentage poirils as tail sales of ihstitutional consu• sire for quick results, consumer against 1988's growth rate. This mer goods has dropped monthly demand seriously outstripped includes 55 billion yuan in bon• since last June to reach 69.3 bil• supply, funds for capital con• uses, an increase of 23 percent lion yuan, an increase of 4.2 per• struction and consumption in• and a reduction in growth rate cent over the previous year, a creased dramatically and institu• by 18 percentage points. Total drop of 16 percentage points as tional purchasing power rose by retail sales was 810.1 billion against 1988's growth rate, the a large margin. The result was an yuan, an increase of 8.9 percent lowest in ten years. over-issuance of money, serious over 1988. Deducting the rise in Investment in fixed assets has inflation and several rounds of prices, sales actually dropped 7.6 been kept under control. In par• buying sprees. Statistics indicat• percent. Retail sales of con• ticular, the government drast• ed that national income in• sumer goods, reaching 708.4 bil• ically reduced such investment creased by 70 percent between lion yuan, rose by 8.4 percent, a in 1989 by screening and scaling 1984 and 1988, while investment rate lower than the 1988 figure. down projects under construc• in fixed assets increased by 214 In 1989, the government car• tion and suspending non• percent, and per capita income ried out a retrenchment policy productive projects. Investment of urban and rural residents in• on financing and loan granting in fixed assets was thus reduced creased by 200 percent. by which banks kept the total by about 50 billion yuan, 11 per• The situation, however, has volume of loans under control, cent less than in 1988. Generally taken a favourable turn since readjusted the financial struc• speaking, about 40 percent funds 1989 thanks to the government's ture, and ensured supply of for capital construction were div• efforts in implementing a policy funds to key projects as they erted into consumption funds in of economic improvement curbed investment in ordinary 1989. That meant that an equiva• and rectification, strengthening projects. As a result, the sup• lent of 20 billion yuan consump• macro-economic control, curbing ply of money was effectively tion funds was reduced last year. consumption funds, readjusting brought under control. Some 21 Commodity circulation has the industrial structure and billion yuan was issued last year, improved. In 1989, the govern• product mix and correctly guid• 69 percent less than the pre• ment instituted a series of mea• ing consumption. vious year. The reduced sup• sures to screen companies and ply of money curbed the rapid rectify the circulation system. growth of industry and con• Many companies which had en• Acbievements sequently the growth of consu• gaged in speculation were dis• The government has initially mer income. At the same time, banded. Market management slowed down the increase of con• banks were able to directly con• and collection of taxes on indivi• sumption funds and harnessed trol those enterprises that paid dual businesses was improved the expanding demand. Accord• wages and bonuses by relying on by punishing tax evasions. Last ing to 1989 figures announced by borrowings. On the negative side, year, taxes collected from the

BEIJING REVIEW, MAY 21-27, 1990 27 CHINA

private economic sector was 13.2 minated. Judging from a micro- between consumption funds and billion yuan, a rise of 43.5 per• economic point of view, the national revenues available for cent over the previous year, and growth of enterprises' consump• distribution and between wage personal income regulation tax• tion funds outstripped the increases and improved labour es reached 590 million yuan, 5.2 growth of production efficiency, productivity, making total de• times as much as in the previous and the proportion of an ehter- mand and supply generally bal• year. These measures played a prise's profits kept for consump• anced. positive role in curbing high con• tion surpassed that kept for —To establish a macro- sumption and correcting the un• production. Judging from a economic control mechanism for fair distribution of income in so• macro-economic perspective, consumption funds. Steps should ciety. planning and market force alter• be taken to establish a cen• nated to influence the distribu• tral, unified and authoritative Problems tion of income in the process of decision-making organ to use economic restructuring. In con• economic, legal and administra• The growth rate of consump- trolling the total amount of con• tive means to co-ordinate income I tion funds is still higher than sumption funds, the state can distribution. Both local and cen• that of the national economy. only relied on planning and ad• tral control systems should be The nation's GNP in 1989, in ministrative means. A set of improved and the powers and terms of current price, was more effective macro-economic responsibilities of the state and ; 1,567.7 billion yuan, an increase management mechanisms has localities in the management of I of 11.9 percent over 1988. Con• not yet been established. consumption funds clearly de• sumption demand, however, in- Incomes other than wages in• fined. An effective supervisory i creased by 17 percent and em- creased too fast. According to a and regulatory system should be ; ployee payrolls by 14 per- sample survey of urban house• instituted to ensure implementa• j cent. Judging from an macro- holds, the average per-capita in• tion of state consumption guide• I economic point of view, China's come of employees from other lines, policies and statutes. I financial revenue constituted 18 sources than wages in 1988 dou• —To further reform and per• I percent of the GNP, while that bled that of 1984, or 23 percen• I of market economy countries, fect the wage system by linking tage points higher than normal wages with economic perform• 30 percent. The current mechan• wage increases for the same per• ance. Government departments isms for financial distribution, iod. Extra-wage income thus ac• should continue to experiment however, still tilts favouratly to- counted for 40 percent of an with the civil service system, rec• i wards individual consumption. employee's income. Individual tify the existing wages system 1 Overall demand, though, still businessmen and private entre• ; outstrips overall supply. In 1989, preneurs, in particular, were able and come to grips with unfair i the purchasing power was still 20 to obtain high incomes mainly income distribution and egual- I billion yuan more than the value through tax evasion. It was esti• itarianism. Different organiza• i of available commodities. The mated that one third of their net tions of public undertakings I national aggregate total purchas- income was obtained through tax should establish different wage I ing power (that is, total volume evasion. distribution policies that are in \f savings deposits) at the end of line with their conditions. last year was more than 700 bil• —To strictly control extra- lion yuan, equivalent to 86 per- Countermeasures wage incomes. The general idea ' cent of all retail sales that year. To sum up, the decrease in is to prevent the widening of in• In particular, some comipodities consumption funds is clearly the come gap by levying personal in• vital to the national economy result of the macro-economic re• come regulation tax. At present, and people's livelihood were in trenchment policy. However, the it is imperative to establish and I serious short supply. Because of contradictions deeply imbedded improve the personal income re• ' imbalance between overall sup- in the economy have yet to be gulation tax system in the areas j ply and overall demand, the in• resolved. It is still necessary to of declaration and collection, flation rate, though dropped ev• take a series of comprehensive and to maintain strict supervi• ery month, averaged as high as measures to rectify the situation: sion and examination of income I 17.8 percent (slightly lower than —To keep the increase in con• sources. The scale of individual i 1988). sumption funds under the businesses should be strictly de• I The various factors which led growth of GNP and properly ar• fined, and their business ac• j to the rapid growth of consump- range the relationship between counting improved to prevent 1 tion funds have not yet been eli• accumulation and consumption. them from evading taxes. •

28 BEIJING REVIEW, MAY 21-27, 1990 FROM THE CHINESE PRESS

Jiang Zemin Assures Returned Students

SHENZHOU XUEREN spent one year at the Stalin Au• my. For this purpose, we should (InteUectnals' Journal) tomobile Factory in the Soviet rely on the leadership of the On October 6. 1989, Commun• Union. Every Chinese festival Communist Party, the joint ef• ist Party General Secretary Jiang would make me homesick. In forts of all Chinese people and, Zemin met with returned stu• any case, we are Chinese. We de• in particular, the working class. dents in Beijing and assured mand every Party member, not What's worth mentioning here is them there would be no changes every citizen, acquire a Com• that intellectuals are part of the in government policy for sending munist outlook on life. But all working class. What special role people abroad to study. Chinese should at the very least will they play? The realization of Excerpts of his statement fol• love our motherland. Liu Xia- China's modernization depends low: ocheng, who spoke first today, on science and technology and China's policy on sending stu• did very well in quoting a education which in turn depends dents to study abroad has not Chinese saying that a mother on the indispensable role of in• changed since it is part of the never looks ugly to her son. Our tellectuals. AH intellectuals, old country's policy of reform and motherland is our mother. It is and young, are expected to do opening to the outside world. interesting that the English word their best for the rejuvenation of It is understandable that some "motherland" is made up of the China and its advances in science Chinese students abroad, influ• words "mother" and "land." and technology. Young people, enced by biased progaganda and Some foreign reactionary in particular, should be aware of inaccurate reporting by the for• forces, knowing that launching their responsibility in honouring eign press, misunderstood the a war can no longer help them our motherland. Chairman Mao turmoil in Beijing last June and achieve their goals, exert influ• Zedong once said that young made some errors in words and ence on socialist countries by people are the sun at 8 or 9 deeds such as issuing a statement way of peaceful evolution. We o'clock in the morning, and great or taking part in a demonstra• should be vigilant to this. Of hopes ar* placed on them. tion. As the old saying goes, course, our opening policy will "Men are not saints; how can not change because of this. To sum up, we now face a good they be free from faults?" It is Nowadays, international com• political and economic situation always good for one to correct petition has become the test of and our nation is a promising the error upon realizing it. each country's comprehensive one. Currently, there are two ma• We should keep in mind that strength in which science and jor tasks. First, we must main• we are the descendants of the technology play an important tain a stable and peaceful domes• Chinese nation which enjoys role. tic environment, and second, we 5,000 years of culture. I was We lag far behind Western de• must continue the vigorous de• greatly moved by the speeches veloped countries in economics, velopment of the country's econ• you made just now. I understand but we are proud of our achieve• omy. We have drawn rich ex• that you have overcome many ments in some areas of science periences and lessons from our barriers to return from a for• and technology which have country's 40 years of socialist eign country, especially the en• reached world advanced levels. construction. We must try hard ticement of high paying jobs Because the Chinese nation to retain this stable situation. offered by foreign enterprises. is clever and diligent, many Otherwise, how can we engage Under such circumstances, it is Chinese students abroad spend in economic construction? China really a test for you to turn down only two years instead of four or cannot afford any disturbances. the comfortable life abroad and five obtaining a doctoral degree. We must enliven our economy as come back to China with a lofty They spend their spare time stu• quickly as possible. We thereby ideal and determination to con• dying while others are playing. place much hope on you young tribute your knowledge to the Their success mainly stems from people present today, and young motherland, particularly during their diligence. people in all walks of life. the period of turmoil. I once We must boost China's econo• (Issue No.2, 1990)

BEIJING REVIEW, MAY 21-27, 1990 29 BUSINESS/TRADE

1989 Foreign Debt and the disputes over debt ser• micro-gravity, or take photo• vicing between creditors and graphs for their geological Figure Publislied debtors, the relevant Chinese survey. The terraces for satel• government departments will The State Administration lite retrievings can be provid• handle these cases carefully of Foreign Exchange Control ed to them, while the whole and responsibly in line with (SAFEC) announced in early recoverable satelMtes can also state laws and regulations on May that, at the end of 1989, be rented. foreign debt management in China's foreign debt balance In term of communications order to ensure the legal in• amounted to US$41.3 billion, satellites, in order to satisfy terests of creditors. with a funded debt balance of the need of developing coun• US$37.03 billion and an un• This official added that, in tries or small and medium- funded debt balance of recent days, there has been a sized countries for domestic US$4.27 billion. rumor in overseas banking cir• and regional communications, cle that the Chinese govern• A senior SAFEC official China will provide them with ment has provided guarantees said that, at the end of 1989, C Frequency Channel sa• totalling US$70 bilUon to for• China's foreign debt was eign banks for domestic com• tellites or C-Ku Frequency US$1.3 billion more than at panies and joint ventures. In Channel satellites. Mean• the end of 1988. The growth fact, the rumour is sheer non• while, China is willing to co• rate was only 3.25 percent, far sense. China has established a operate with relevant foreign less than the 36.29 percent av• management system for prov• companies to jointly manage erage growth rate of the pre• iding guarantees to a foreign regional communication and vious four years. These figures bank. Each guarantee provid• broadcasting satellites. indicate that the scale of Chi• ed to foreign banks is under na's foreign debt has been In regard to satellite ground the strict control and supervi• brought under tight control. systems, China can provide sion of the system. Furthermore, the foreign various home monitoring sta• debt structure showed a ra• by Yao Jianguo tions and ground applied sys• tional improvement in 1989 in tem including meteorological terms of date due. The pro• satellites ground receiving sta• portion of short-term debt de• tion, ocean-going cloud chart creased from 18.25 percent in receiving ships, and resources 1988 to 10.34 percent in 1989, Space Services for satellites ground receiving sta• a proportion much lower than Foreign Clients tions and etc. the internationally recognized Besides, China will seek bi• warning level of 25 percent. China's successful launch• lateral or multilateral co• The present condition of Chi• ing of the AsiaSat-I for the operation with foreign com• na's foreign debt was good, the Asian Satellites Company on panies in the research and official said. April 7 has increased the con• launching of mutually needed This official pointed out fidence in its ability to satellites and share with them that, since the second half of conduct international co• responsibility for their opera• last year, China has been con• operation in this field. Ac• tion and market development. fronted with temporary diffi• cording to information from After the entry of China's culties in foreign trade, tour• an authoritative person res• space services into world mar• ism and raising funds over• ponsible for space affairs, ket, the above new service seas. A few enterprises have China will provide more ser• items provided by the Great had problems in repaying vice items in terms of recov• debts. However, the gener• erable, communication and Wall Industrial Corp. show al condition of the econo• broadcasting satelUtes as well that China's space technology my shows that last year China as satellites ground system. has assumed a new position successfully serviced its debt These items include: and China will satisfy foreign and was fully competent of its In terms of recoverable sa• clients' different demands debt repayment ability. As for tellites, foreign clients can with more flexible manage• the difficulties of a few en• rent space in a satellite ment, the person in authority terprises over debt repayment and conduct experiments on added. •

3« BEIJING REVIEW, MAY 21-27, 1990 BUSINESS/TRADE News in Brief factories; the sample appraisals Inc., a joint venture between the on half of them have been com• China International Economic • From May 1, 1990, China pleted. and Technical Co-operation Con• began to implement a quality li• • The China Second New sultant Inc. (CIETCCI) and the censing system on imported com• Technology and Products Exhi• Canadian Norasian Enterprises modities involving matters of bition will be held from Novem• Inc. (CNEI), will begin work this safety, health and environmental ber 8 to 14 this year in Guang• May in Vancouver, Canada. This protection. zhou, Guangdong Province. is CIETCCI's first joint venture The system would be first ap• The exhibition will demon• overseas. plied to imported goods such as strate China's latest new technol• Relying on CIETCCI's infor• automobiles, motorcycles and ogy and products having pract• mation network and consultant their engines, refrigerators and ical and marketable properties. services and through CNEI's ex• their compressors, air condition• On display are products, photo• tensive business relations and ers and their compressors, televi• graphs and there will be on-the- trade channels with countries in sion sets and kinescopes. These spot operations, just as at the North America and Southeast goods are allowed to enter China first exhibition. This time, how• Asia, the Pacific Rim Ecotech only after being issued quali• ever. Hong Kong, Macao and Inc. will undertake to provide ty certificates and certain saf• Taiwan will have special stalls. opportunities in economic and ety guarantees. At the China First New Tech• technological co-operation and Since this system was promul• nology and Products Exhibition, trade, promote the two-way in• gated in August last year, the a total volume of 315 million vestment, supply consultant ser• State Administra'tion of Import yuan was earned and contracts vices in regard to commerce, in• and Export Commodities Inspec• worth of US$13.12 million and vestment and laws, and carrv tion of the People's Republic of 1.2 million Hong Kong dollars out various trading activities for China has received 169 applica• were signed. countries in North America and tions from more than 40 foreign • The Pacific Rim Ecotech Southeast Asia. •

Special China Tours

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BEIJING REVIEW, MAY 21-27,1990 31 CULTURE/SCIENCE zation. According to the committee's appraisal, the treatment has a New Method of Treating Vasculitis high rate of therapeutic effec• tiveness. Among the 200 patients hinese doctors have adopt• amputation. treated with Zhang's method, ed an effective new meth• Zhang began his study of vas• 186 were cured and 14 showed od of treating vasculitis, a culitis in the 1960s and effected signs of improvement. Of the 83 Cdisease of the cardiovascular sys• his first cure in 1967. In 1986 his patients in the first and second tem that usually disables and can method was designated as a stages of the disease, all were even kill its victims. key project in Shandong's pro• cured. Among the 34 patients After years of study, Zhang gramme of developing science whose disease had reached the Xinghui, a doctor at a vasculitis and technology. third stage and were suffering hospital in Shandong Province, It was certified by the Shan• from necrosis (dead tissue), 22 has succeeded in developing an dong Science and Technology were cured and 12 showed signs effective therapeutic approach Committee after an appraisal last of improvement. No side effects by combining Chinese and West• November. The committee, com• were detected. ern medicine. posed of 12 professors and ex• The proper scientific name of Most patients treated by the perts from Beijing and Shan• vasculitis is thromboangiitis obli• new method are cured in a short dong, agreed unanimously that terans or Buerger's disease. It is period without resorting to the the treatment was original, adv• caused by inflammation of the previous drastic treatment of anced and worthy of wider utili• lining of a blood vessel due to the formation of a clot. This restricts the blood supply to the toes and/ or fingers, causing these parts to ulcerate; in severe cases gan• grene can set in. As the disease progresses, it spreads to the feet and even the lower legs, accom• panied by great pain. The disease has long been con• sidered difficult to treat and many patients have had to accept the traditional treatment of am• putating the affected limbs. In some cases vasculitis has been fa• tal. In his early years, Zhang read Pathology, An Introduction to Chinese Medicine, The Yellow Emperor's Manual of Internal Medicine and other medical books. Later, influenced by Rus• sian physiologist Ivan Pavlov's work, he tried a new method of tackling vasculitis by regulating the autonomic nervous system, which controls bodily functions that are more or less automatic, such as the expansion and con• traction of blood vessels. In doing so he hoped to smooth the circulation and reduce blood viscosity. Concurrently, he re• moves dead tissue so that ulcer• ated flesh can heal. The new therapeutic method includes

32 BEIJING HEVIEW, MAY 21-27,1990 three elements: ion-induction at acupuncture points, ingestion of Chinese pulsating pills and appli• cation of No. 1 ulcer liquid, a Chinese medicine for external use. Interviews with more than 20 patients revealed that most were satisfied with the new method. Xu Qingxian, a Shandong farmer began to develop vasculi• tis in February 1963. Three years later the toes on his left foot be• came ulcerated. He was urged to A scene from Don Pasqoale performed at tke foondlng ceremony of the Shonda have the foot amputated but re• Opera Training School. fused. In 1966, he began to re• ceive Zhang's treatment and a year later was cured. He has not suffered any relapse. Opera Sch€x>l Stages World Classic Gao Chongshan, a worker at Shandong's Jinan Dye and rrihe new Shoudu Opera and Western operas to perform• Weaving Works, got vascuUtis in I Training School, the first ing troupes, promoting both the 1969. His legs were operated on private opera school in popularity of opera and interna• four times and six of his fin• China, recently mounted a suc• tional cultural exchanges. gers became ulcerated. Even af• cessful production of Donizetti's Compared with the official ter amputation, an ulcer measur• Don Pasquale. Central Opera House, the small• ing 30x25 centimetres formed on "The school grew up as we re• er Shoudu Opera Training the stump of his right leg. By hearsed the opera," said Shoudu School has its advantages. It is January 1985 he was running a director Lou Qiangui. flexible in its choice of operas fever higher than 39 degrees Cel• One of China's leading tenors, and economical when it comes to sius and later developed blood Lou has starred in many Western poisoning. operas, such as La Traviata and production costs. A piano substi• As a last resort, Gao received Eugene Onegin. Last summer, tutes for an orchestra, old furni• Zhang's new treatment. The di• Lou and several other veteran ture is used for props, costumes sease quickly took a favourable artists dubbed Don Pasquale into are not luxurious. Performances turn. Two and a half years later Chinese and organized rehearsals have been mounted at Beijing he was cured. He even got mar• with a group of young perform• University, the Central Conser• ried and last year became the ers who wanted to study Western vatory of Music and the Central father of a daughter. opera. Teachers gave free tuition Institute of Nationalities, win• Fu Pengzhi, a worker at the and the students rehearsed in ning a loyal audience of college Inner Mongolian Baotou Iron their spare time. After six students. and Steel Company, is currently months of hard work, they final• Li Delun, one of the school's receiving treatment at Zhang's ly put the opera on the stage. advisors and a well known hospital. Fu first began to suffer Western opera was introduced Chinese conductor, said, "As from vasculitis in 1974 and the into China in the 1930s but in people who are living on Earth, disease eventually advanced to recent years the popularity of tel• we should absorb all of the the necrosis stage. In February evision and other forms of enter• world's artistic accomplishments 1988, after refusing to accept tainment has cut into the opera and enrich our national culture." amputation, Fu came to Shan• audience. Thus the founding of Lou Qiangui said, "Although dong to try Zhang's new therapy. the training school was wel• the task is difficult, we are not He is now able to climb three comed by opera lovers. lacking in confidence. With the flights of stairs and is planning By rehearsing famous Western support and encouragement of to write and to study Japanese operas and giving lectures, the more and more people, I believe and play table-tennis as soon as school can play an important that we can make our cause a he has recovered. role in training performers and success." by Lu Yun recommending suitable Chinese by Hong Lanxing

BEIJING REVIEW, MAY 21-27, 1990 33 CULTURE/SCIENCE

Nuoxi Operas Lure Scholars and Guests

asks, music, and un• After trips all over the He said that Dejiang Coun• restrained dancing province in the past few ty has the country's larg• M drew big crowds one years, researchers found that est number of Nuoxi op• day in late April to the usual• nearly all the nationalities in era troupes, 160 altogether, ly quiet courtyard of Xiao the province—the Han, Tu- with six to ten members each. Haifeng's home. jia, Dong, Miao, Buyi, and Those entering the court• Molao nationalities, have Amusement yard were caught up in a their own Nuoxi operas. mysterious and holy atmos• There are slight differences "Nuoxi opera has basically phere created by the wood• in performance, but the oper• disappeared in central China. en statues of gods and deity as of each nationality share However, it has been fairly paintings there. a common prop—wooden well preserved on the Guizh• Xiao Haifeng, a farmer in masks. ou plateau and is widely Dejiang County in south west Most researchers hold that spread in remote mountain China's Guizhou Province, current Nuoxi opera is based villages," Xie said. was throwing a party to cele• on ancient sacrificial cere• It is a major amusement brate his 80th birthday. monies to worship gods. Al• for local people. Perform• The songs, dances and all most all nationa^ties in the ances are usually humorous. the props made up for a local world went through a god- Actors sing in a tone very worshipping period, they say. art performance dominated much like local folk songs, the party throughout. The period appeared in and dance in a way similar to The indigenous perform• China more than 3,000 years actions in a farm field. Many ance, called Nuoxi opera, is a ago. villagers prefer Nuoxi opera common scene in the slack The opera was very popu• winter-spring farming season lar in central China in the to television programmes. on the mountainous Guizhou following years. Its major Why the opera still has a plateau. function shifted eventually great vitality in the area re• Once it was performed to from reverence for gods to a mains a subject for study. combat witchcraft. Today, it form of entertainment, said "Vestiges of god worship is staged when elderly people Xie Yong, deputy director of still exist," Xie said. Per• celebrate birthdays and when the Cultural Bureau of De• formers often cut off the middle-aged couples have jiang County. heads of a pig and a goat their first baby as a way to At first, only songs and during a performance, saying pay pious respect and express dances were performed at the the animals are sacrificed to hearty thanks to the gods, re• ceremonies, Xie said. Then the gods. The animal heads presented by the masks. story-telling and epic narra• are cooked to entertain the For Chinese scholars who tion were added to the per• audience later, he added. have been making a compre• formances during the Song Nuoxi opera has attracted hensive study of Nuoxi opera Dynasty (960-1279). Opera the attention of researchers since the early 1980s, it pre• began to emerge. in other countries. Last year sents interesting subjects of Xie has collected 40 man• dozens of foreign scholars reserch in the fields of an• uscripts of opera plays hand• and many tourists came to thropology, ethnology, histo• ed down from the Ming Guizhou specially to see the ry, religion, mythology, and (1368-1644) and Qing performances. A group of the ancient Chinese theatre, (1644-1911) dynasties. He about 100 scholars in Guizh• Qu Liuyi, a well-known has also gathered 200 fine• ou formed an association for Chinese drama expert, said in ly carved i fac4 masks, con• the study of Nuoxi opera in an article. sidered perfect works of art. 1988. •

34 BEUING REVIEW, MAY 21-27,1990 Sketches by Zhang Xiaolei

Zhang Xiaolei, born in Tianjin in I96A, is a student of the Central Academy of Fine Arts in Beijing. These sketches are Lata Mangeshkar, the Indian Movie Star. selected from her painting album.

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