A CHINESE WEEKLY OF NEWS AND VIEWS "NT •

Vol. 32, No. 52 December 25-31, 1989

"One Country, Two Systems" —A Policy in Practice The Third International Photo Exhibition of 'China Through Foreigners' Eyes'

The Third International Photo Exhibi• tion, like the previous two international photo exhibitions of 1987 and 1988, at• tracted many foreign and domestic ex• hibitors and visitors. In 1987, the first International Photo Exhibition entitled "China Through For• eigners' Eyes" was sponsored by Bei• jing Review, 14 press circles and non• government associations and was or• ganized by China's NEXUS magazine. On exhibit were more than 300 photos about China's development taken by for• eign friends. The photos express the photographers' feelings towards the Chinese people and their warm apprecia• tion of the policy of reform and opening that have taken place. The photos were widely praised by various circles at home and abroad. The international photo exhibition en• titled "China Through Foreigners' Eyes" is held regularly once a year.

Top: Photo by W. Landolt (Switzerland). Bottom: Photo by Thomas Billhardt (German Democratic Republic). These two photos are provided by courtesy of China's NEXUS magazine. BEIJING REVIEW VOL. 32, NO. 52 DEC. 25-31 1989

CONTENTS Visit Seeks Greater Co-operation NOTES FROM THE EDITORS 4 • To promote mutual understanding, co-operation and com• Chinese President's Visit to Four mon development, Chinese President Yang Shangkun has Arab Nations paid a visit to four Arab countries, a move that shows EVENTS/TRENDS 5-11 Overseas Chinese Affairs High on China's domestic and foreign policies remain unchanged Agenda (p. 4). Synching Economic, Political Reforms 4th National Census to Get Under "One Country, Two Systems" Key to Hong Kong Way Party Leadership, League Role • In response to the recent clamour that attempts to interna• Reiterated tionalize the Hong Kong issue, this special article argues that Verdant 'Great Wall' Turns China a basic prerequisite for maintaining long-term stability and Green Scowcroft's Visit Seen as prosperity in Hong Kong is to seek a common ground of "One 'Constructive' country" and preserve the differences of "two systems" and Combating Snail Fever in South that the key of the formula is the reunification of the country China (p. 12). Shenzhen: A Decade of Robust Growth Survey Finds Kids Healthier, Green Great Wall Project Successful Happier News in Brief • Thanks to an immense afforestation project—the "Green INTERNATIONAL Great Wall"—that started 12 years ago, vegetation in Chi• Implementing the Policy of 'One Country, Two Systems' 12 na's 13 northern provinces and autonomous regions has ASEAN Countries: Adjusting increased. The project has now entered its second stage. Its Foreign Policies 16 aim is to cultivate more land and protect existing forest and CHINA vegetation (p. 8). China Hits Hard at Corruption 19 China in International Sports 23 Shoudu Iron & Steel Co. (4): China Prepares for the 4th National Census Innovative Wage System 25 State Aid to Poor Counties of • China's fourth national census, to be completed in four or National Minorities 29 five years, will begin on July 1, 1990. More than 6 million FROM THE CHINESE PRESS 34-35 people will be mobilized to take part in it. Chinese Premier BUSINESS/TRADE 36-37 CULTURE/SCIENCE 38-39 Li Peng stresses census data are essential for economic plan• LETTERS 40 ning and social development (p. 7). INDEX (Nos. 27-52) I-X COVER: For many years, Friday has been a regular day for the director of China Hits Hard at Corruption the Beijing Dongcheng District Peo• ple's Court to meet visitors. He soli• • China is clamping down on graft and corruption, especially cits a wide range of opinions from the major cases involving senior cadres and embezzlement ex• masses so as to eliminate corruption, maintain a clean court and handle cas• ceeding 10,000 yuan. This move demonstrates the determi• es according to law. While on duty nation of the Party and government to promote clean gov• Director Jia Zhiyun (centre) talks ernment and improve social morals, but there's still a lot to with visitors. be done before the root courses of corruption are eliminated Photo by Chen Zhonglle (p. 19).

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

General Editorial Office Publisfied every Monday by BEIJING REVIEW Subscription rates (1 year): Tel: 8314318 24 Baiwanzfiuang 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 e 14.50 Englisfi Dept. Tel: 8315599 Ext. 546 Trading Corporation (GUOJI SHUDIAN) USA US$29.00 P.O. Box 399. Beijing, China Canada Can.$25.00 Chinese President's Visit to Four Arab Nations by Our Guest Commentator Ya Fei t the invitation of the heads of state of | Xiannian, have visited Egypt. Other Chinese Egypt, the United Arab Emirates, Kuwait | leaders have visited the United Arab Emirates, and Oman, Chinese President Yang Shang- Kuwait and Oman. Since 1986 and 1987, leading Akun paid an official visit to the four nations officials in the Chinese foreign ministry have beginning December 18. The first visit abroad by established a political consultative system with the Chinese president since China quelled the the Egyptian and Oman foreign ministries. This counter-revolutionary rebellion in Beijing in exchange has deepened mutual understanding June, this tour not only demonstrates that China's and trust and promoted the comprehensive devel• domestic situation is stable, but also indicates that opment of friendly relations between China and China's policies, including the domestic policy of the four countries. i reform and opening to the outside world and its Economically, China and the four nations, with independent foreign policy, remain unchanged. their respective advantages, have entered co• As well, strengthening solidarity and co-operation operation in many forms. This co-operation is with third world countries remains the basic point based on the principle of equality, mutual bene• of the foreign policy. fit, mutual complement and common develop• China has enjoyed friendly relations with the ment. four nations. Spanning Asia and Africa, Egypt is In 1964, China signed an agreement on econo• a very influential country in the Afro-Asian re• mic and technological co-operation with Egypt gion. In 1956, not long after New China was for the first time. In the 1960s, China provided founded, Egypt established diplomatic relations loans and economic aid gratis to Egypt. Projects with China, the first African Arab country to do that China helped construct include a brick- so. Kuwait and the United Arab Emirates are making factory, a TNT explosive assembly line important oil-producers in the Persian Gulf re• and the Cairo International Conference Centre. gion, their per capita income ranking among the Since the 1980s, China has actively conducted highest in the world. The Kuwaiti emir has pro• economic, trade, scientific and technological co• posed at international conferences to reduce the operation with the four countries and has third world countries' debt burden. This move has achieved remarkable progress. Since 1983, China been appreciated and highly evaluated by many has developed the contracting business in Egypt countries, including China. Though small in size, that focuses mainly on construction projects. At Oman occupies a strategically important position present, five Chinese companies have signed 31 at the mouth of the Strait of Hormuz, through contracts with Egypt. In 1988, Sino-Egyptian which passes two-thirds of the world's sea-borne trade volume reached about US$176 million. trade in crude oil. In recent years, co-operation between China Since gaining their independence, the four na• and Kuwait and the United Arab Emirates has tions have actively engaged in developing their developed rapidly. Since 1982, the Kuwaiti eco• economies and improving people's living stan• nomic development fund has granted China dards. In foreign affairs, they have pursued a US$300 million of long-term and low-interest policy of neutrality and non-alignment, making loans for the construction of 13 projects. Loan efforts to promote a peaceful solution to the Mid• agreements on 12 of these projects have been dle East problem. All of them support maintain• signed. The Xiamen International Airport and ing security and stability in the Gulf region. the Urumqi Chemical Fertilizer Factory are two China's friendly exchanges with the four coun• of the seven completed projects. These projects tries have existed for many years. There have have proved economically efficient in China's been frequent visits between Chinese leaders and economic construction. In February 1985, China, those in the four nations. Egyptian President Hos- Kuwait and Tunisia agreed to build a chemical ni Mubarak has visited China three times in his fertilizer joint venture in Qinhuangdao in China's capacity both as vice-president and president. In Hebei Province. The project is scheduled to be the 1960s, the late Chinese Premier Zhou Enlai completed in June 1990. These joint ventures are visited Egypt three times. Since late 1982, various praised .as models of South-South co-operation. In Chinese leaders, including former President Li 1981, China began to contract out labour in Ku-

4 BEIJING REVIEW, DECEMBER 25-31, 1989 EVENTS/TRENDS

enthusiasm of the returned ov• erseas Chinese and overseas Chinese, Jiang added. Overseas Chinese Affairs He noted that with the rise of China's international role and High on Agenda its socialist modernization, China needs a better under• ontinuity of existing poli• been high on the agenda of standing of the outside world. cies designed to protect both the Communist Party of At the same time, Jiang said, C the legitimate rights and China and the government. the outside world needs a bet• interests of overseas Chinese He praised the great contri• ter understanding of China. and their relatives who have butions made by the returned Because overseas Chinese 1 either returned to China or are overseas Chinese, Chinese liv• and their relatives live all over I still residing abroad was the ing abroad and their relatives the world, they can help the i major topic of the Fourth Na• to the Chinese revolution and people of the rest of the world tional Conference of Returned national reconstruction. to better understand China. Overseas Chinese, which However, Jiang admitted Jiang said that returned ov• opened on December 18 in Bei• that China once made some erseas Chinese federations at jing's Great Hall of the People. mistakes in dealing with over• all levels are bridges facilitat• In his speech at the opening seas Chinese issues, particular• ing communications between ceremony, Jiang Zemin, gener• ly during the "cultural revolu• the Party and government and al secretary of the Chinese tion" (1966-76), when many of returned overseas Chinese, Communist Party Central those who had overseas rela• Chinese living abroad and Committee, said that overseas tions were persecuted. their relatives. Chinese affairs have always This dampened the patriotic He called on these feder-

wait, and by June 1989, China's 16 companies terests with the four countries. Each expresses had signed a total of 175 contracts for labour satisfaction with the friendly relations that have service. The number of Chinese labourers now been established. China's political relations with under contract in Kuwait has reached 7,682. In the four countries are established on the basis November 1985, China and Kuwait signed a pro• of the Five Principles of Peaceful Co-existence. tocol on the encouragement and protection of They respect each other and are equal. In finding investments. In 1988, bilateral trade between the a just, over-all and reasonable solution to the two countries reached US$230 million. Middle East issue and of realizing stability and At the beginning of 1980, the Civil Aviation peace in the Gulf, as well as on some other Administration of China signed an agreement on significant international and regional problems, China and the four countries support each other air service with the Sharjah Civil Aviation Ad• and co-ordinate stands, setting up a model for ministration of the United Arab Emirates. Most state relations. of China's civil airhners flying to Europe stop at Sharjah, a great convenience. In November 1985, The Chinese government and people cherish their friendship with the four countries. To con• the two countries also signed protocols on eco• tinue to consolidate and develop this friendship is nomic, trade and technological co-operation. In one of China's fixed policies. During his official 1988, trade between the two countries reached and friendly visits to the four countries, Chinese US$187 million. From 1983, China began to en• President Yang Shangkun exchanged opinions on gage in project contracting, labour co-operation bilateral relations and on international and re• and joint-venture management in the United gional issues of common interest. The leaders also Arab Emirates. briefed each other on their internal situations and Communications in culture and sports between foreign policies. Yang's visit to the four Arab China and the four Asian and African countries countries has met the aim of promoting under• have also expanded. standing, friendship, co-operation and common China has no conflicts over fundamental in• development. •

BEIJING REVIEW, DECEMBER 25-31, 1989 5 EVENTS/TRENDS ations to foster close relations with as many overseas Chinese, returned overseas Chinese and their relatives as possible, safe• guard their rights and interests and give voice to their requests and suggestions; On their part, Jiang said, the Party and government will concern themselves with over• seas Chinese affairs, strengthen the leadership of federations of returned overseas Chinese and provide practical support and aid for them. He noted that China will continue to solve the sovereign issues of Hong Kong and Ma• cao on the basis of the Sino- Premier Li Peng met December 12 a group of foreign bankers and entrepreneurs British and Sino-Portuguese attending an international symposium on upholding the reform and open policy and extending economic co-operation with foreign countries. WANG JINGDE joint communiques, and prom• ote friendly exchanges with other countries for the sake of Synching Economic, Political Reforms world peace and stability. To reach these goals China's he reform of China's political reform of the political structure fundamental policy of opening structure should take place should proceed from China's ac• to the outside world will re• T simultaneously with that of tual conditions with a view to main unchanged, Jiang said. the economic structure. Premier mobilizing the initiative of the "So will all policies concerning Li Peng said in Beijing on De• people and inspiring them to overseas Chinese affairs." cember 12. work wholeheartedly and with Zhang Guoji, president of Speaking to a group of bank• full confidence for the realiza• the All-China Federation of ers and entrepreneurs from Bri• tion of the four modernizations. Returned Overseas Chinese, tain, Canada, West Germany, Briefing his guests on the cur• delivered a work report of the United States and Japan as rent situation in China and the well as Hong Kong, Li ad• country's policy of reform and the federation's third national ded that political restructur• opening to the outside world, Li committee and put forward ing should be carried out in a said that marked achievements plans for protecting the rights way conducive to the stability have been made in improving and interests of overseas and prosperity of the country the economic environment and Chinese, giving full play to the rather than causing social dis• straightening out the economic federation's role to assist eco• turbances. The guests were in order over the past year and the nomic contraction, promoting the Chinese capital to attend an economy as a whole is picking economic and cultural ex• international symposium on up• up. Despite temporary difficul• changes and co-operation be• holding the reform and open pol- I ties caused by problems, old and tween China and foreign coun• icy and extending economic co• new, "we have quite a lot of fa• tries, and strengthening the operation with foreign countries, vourable conditions to overcome the difficulties," he said. federation itself. which began the previous day. "It is wrong to think that The general guideline for Chi• During the meeting, 980 in• China carries out only economic na's current economic work, the tellectuals and entrepreneurs reform but not the reform of its premier said, is to rectify the were cited for their meritorious political structure," the premier economy and deepen the reform deeds by the federation and said. on the premise of social stability. the State Council Overseas He added that like the reform To ensure the continuity and Chinese Affairs Office. • of the economic structure, the stability of the policy of reform

6 BEIJING REVIEW, DECEMBER 25-31, 1989 China has progressed gteatly in population control, with the 4th National Census to Get Under Way growth rate reduced to a stable and low level. He attributed this hina's fourth national cen• 1982, when the population was success to the "one family, one sus, to be completed in 1.03 billion. child" policy adopted since the Cfour or five years, will be• The Premier stressed that po• 1970s. gin on July 1, 1990, and more pulation data is essentially a bas• According to the Ministry of than 6 million people will be is for national economic plan• Civil Affairs, a peak of the po• mobilized to take part in the ning and social development, the pulation of marrying and child- work. making of policies for popu• bearing age is predicted in lation, education and employ• At a December 8 preparato• 1991-93. An average of 64 mil• ment, and the arrangements for ry meeting, Chinese Premier Li lion women will reach the peak the people's material and cultur• Peng called the census "one of child-bearing age — 20 to 24 — al life. Census data also serves as unprecedented scale" because each year during that period. China now has a population of the barometer of the conditions The population of this age group 1.1 billion people. "Therefore, of the country, he said. will slowly drop to 58 million in advantages of the socialist sys• Without census data, he ex• 1995. tem should be brought into full plained, "We will have no accur• play and all social forces should ate and scientific basis for devis• The people at the peak child- be mobilized to conduct the cen• ing principles and policies and bearing age numbered more sus which is actually a survey of development strategies." than 40 million each year from our national conditions and cap• Li also expressed China's de• 1980 to 1983, reached more than abilities." termination to keep its popula• 50 million in 1984 and 1985 To fulfil this colossal task, the tion at the 1.25 billion mark and has been at 60 million since State Council has decided that by the year 2000, although he 1986. all census takers will be chosen conceded that this will be a During each of the first five from incumbent and retired Par• tough job because of an already years of the 1990s, the time for ty and government officials, in• large population base, the im• China's Eighth Five-Year Plan, dustrial enterprise employees pact of cyclical baby booms and the number of women aged 15 to and grassroots rural officials. slackened family planning in 19 and men aged 15 to 21 will be Preparations for the fourth some regions. According to the around 100 million. national census are being made premier, each year there is an The more than 300 million throughout the country. increase of 15 million to 17 mil• people born from 1962 to 1972 China conducted a national lion in China's population. will reach marriageable age in census in 1953, 1964 and in However, the premier noted, the 1980s and 1990s, according to the ministry figures. Meanwhile, according to a and opening to the outside ops its eco^iomy by combining state population survey, 4.86 world, Li said there will be no planned economy with market percent of married people in changes in the rural responsibil• regulation. It is wrong to think 1987 were under China's legal ity system, the contract system that a relatively small propor• age for marriage — 20 for wom• for industrial enterprises and the tion of the market economy en and 22 for men. system under which factory di• means a retrogression in reform, A prediction based on this rate rectors assume the full responsi• Li said, because the proportion shows that about 11.67 million bility, the central and local fin• of market economy can by no married people during the first ancial responsibility system, as means be used as the criterion. five years of the 1990s will be well as policies concerning pri• "China will continue to devel• under legal marriage age. vate business, special economic op economic and technological If that is the case, experts zones, coastal areas and prefer• co-operation with foreign coun• warn, even if every married cou• ential treatment to foreign inves• tries on the basis of equality and ple has only one child, the popu• tors. mutual benefit," Li said, adding lation will grow by at least 10 Naturally, the premier added, that foreign friends are welcome million because of the under- these policies need to be further to come and see for themselves legal-age marriages during that improved in practice. in order to understand China time, something to be reckoned Li reiterated that China devel- better. • with in China. •

BEIJING REVIEW, DECEMBER 25-31, 1989 7 EVENTS/TRENDS

come an important force in maintaining social stability, re• Party Leadership, League Role Reiterated vamping the economy and dee• pening the reforms. top Chinese leader said accomplishment of the tasks set He urged the League to guard that Party leadership and forth at the Fifth Plenary Ses• against subversion and so-called A the role of the Communist sion of the 13th Party Central peaceful evolution by some hos• Youth League as an assistant to Committee held in November tile foreign forces. the Party are very important to this year. "We can never make any con• China. Also present at the meeting cessions to bourgsais liberaliza• "The Communist Party has 48 were Song Ping, a member of the tion, for there is no way out by million members, and the Youth Standing Committee of the Polit• making concessions," Ding ad• League boasts 56 million. More ical Bureau of the Party Central ded. important than these large num• Committee, and Ding Guangen, He urged the League to up• bers, however, is their quality," an alternate member of the Pol• hold firmly the leadership of the said Jiang Zemin, general secre• itical Bureau and member of its Chinese Communist Party and tary of the Chinese Communist secretariat. keep in line with the Party Cen• Party Central Committee, while In his speech at the meeting, tral Committee politically, ideo• meeting with the delegates to the Ding said that the organizations logically and in action. Second Plenary Session of the of the Communist Youth League The four-day session closed on 12th Central Committee of should resolutely safeguard pol• December 16 in the Great Hall the Chinese Communist Youth itical stability and unity and be- of the People in Beijing. • League in Beijing on Decem• ber 15. "The quality of Party and Verdant 'Great Wall' Turns China Green Youth League members must be improved constantly. Only with egetation of China's 13 of desert, flood, drought and soil highly qualified members can northern provinces and erosion. the Party and League play tre• V autonomous regions has Protected by windbreaks, 11 mendous roles," Jiang added. increased thanks to an immense million hectares of arable land Jiang pointed out that the afforestation project that started that used to suffer from soil country's situation is stable. He 12 years ago. erosion and sand encroachment attributed this to three factors. The Ministry of Forestry said have become productive, boost• First, he said, the Communist the 13 provinces and regions in ing North China's grain output Party has been tempered by its northeast, north and northwest by 10 to 30 percent. experierice and its members are China have planted 9 million China has planned to build, within the next few decades, a generally of good quality, al• hectares of trees. An extra 16 shelterbelt system to increase though it still has many internal million hectares have been sown timber storage, control desert en• problems that need to be solved. aerially with tree seeds or tran• splanted with saplings. Vegeta• croachment and soil erosion, and It is the party that has a genuine, eventually change the lot of tion has increased to 7.09 percent close link with the masses and is the people in the "Green Great this year from 5.05 percent in armed with Marxism-Leninism Wall" area. 1977. and Mao Zedong Thought. The afforestation project has Second, the People's Liber• About 9 million hectares of now entered its second period. ation Army is a well-trained and grass have been preserved or res• The aim is to protect existing battle-tested army under the ex• tored in the autonomous regions forest and vegetation, and bring clusive leadership of the Party of Xinjiang, Ningxia and Inner more acreage of land under cul• and has a close link with the Mongolia and Gansu Province. tivation. people. China began to plant trees on At a national conference in Third, the Chinese nation has a northern belt-shaped area to• Beijing earlier this month con• a tradition of not yielding to any talling 4.069 million square kilo• cerning the building of the wind• outside pressure. The Chinese metres in 1977, accounting for breaks, 13 northern provinces people should never diminish 42.2 percent of the country's to• and regions were urged to rely the significance of the tradition, tal land area. Most of the areas on science and pool available re• Jiang said. covered by the project known as sources to increase investment in Jiang urged League leaders the "Green Great Wall" had suf• China's "Green Great Wall" pro• and members to strive for the fered from serious encroachment ject. •

8 BEIJING REVIEW, DECEMBER 25-31, 1989 EVENTS/TRENDS

"Efforts from both sides are required" to resolve the prob• Scowcroft's Visit Seen as 'Constructive' lem, he added. Answering a question about ormal Sino-US relations profound changes since World using a Chinese rocket to launch will gradually be restored War II. three American satellites, Jin N as long as practical steps Asked whether China was said that China and the United are taken by both countries, prepared to let Fang Lizhi leave States had earlier agreed that said a Chinese Foreign Ministry the US Embassy in Beijing in China would provide the spokesman. exchange for the United States' launching service. Asked to comment at the min• lifting of economic sanctions, "If the US side agrees to issue istry's news briefing on US pres• Jin said that it is not appropriate idential envoy Brent Scowcroft's for the US Embassy in China to export licences for the telecom• recent visit to China, the spokes• provide shelter to Fang. munications satellites, it will man Jin Guihua said it was "That's a sensitive question help to smoothly accomplish the "constructive and useful." involving China's sovereignty co-operation and China would The spokesman said Scow• and law, as well as norms of welcome the US move," said croft's visit has helped promote international law," he said. Jin. • mutual understanding and over• come the existing difficulties in bilateral relations, adding that it Combating Snail Fever in South China has also contributed to a gradual restoration and development of he Communist Party's top ing the effort of people from all Sino-US relations. leadership has vowed to walks of life, he added. The China, attaching great import• T take all possible measures to general secretary urged govern• ance to the improvement of its wipe out snail fever — schisto• ments at all levels of the affected relations with the United somiasis — in China. regions to put tremendous effort States, appreciated US Presi• General Secretary Jiang Zem• into solving the problem. dent George Bush sending his in, in a special message to the The five provinces are among envoy to Beijing, he said. Five-Province Conference on China's top rice producers and Although some difficulties in Snail Fever Control held on De• are economically better devel• Sino-US relations still remained cember 13 in Nanchang, Jiangxi oped, Jiang said. Therefore, it after the talks between Scow- Province, said the Party and is imperative that snail fever croft and Chinese leaders, both government are duty-bound to be eliminated there and a good sides agreed that "they have ma• work with the people in wiping ecologic environment be main• jor mutual interests in a wide out snail fever. The severe en• tained to make the economy range of topics." demic disease is threatening the more prosperous. Jiang said he China and the United States health of the people in the five believed that by drawing on can surely maintain their com• lake-studded provinces of Hun• past experiences, drafting tan• mon interests while upholding an, Hubei, Jiangxi, Anhui and gible plans, adopting effective their respective positions and Jiangsu. It results in blood loss, measures and coordinating the overcome the present difficul• tissue damage and swollen bel• efforts in both prevention and ties, as long as they make a com• lies. treatment, the parasitic disease mon effort and act strictly in Controlling snail fever is a would be eliminated at an early accordance with the Five Princi• long, difficult task, since the di• date. ples of Peaceful Coexistence and sease — which had been largely The conference, held by the the principles of the three Sino- eliminated more than two de• State Council, was to hear snail US communiques, and as long cades ago — has reappeared in fever control reports from the as the two sides take practical some regions in recent years, lake areas, work out guidelines steps, Jin said. said Jiang in his letter. for action and form a five- The constant exchange of The Party and government province group to carry out new views between China and the have committed themselves to strategies. United States, he added, is both the work ever since the found• At present, there are about 1 "necessary and beneficial," be• ing of the People's Republic of million people suffering snail cause the present international China in 1949, and has won fever in China, 40,000 in the situation is undergoing the most great achievements by mobiliz- advanced stages. Another 100

BEIJING REVIEW, DECEMBER 25-31, 1989 9 EVENTS/TRENDS

miJlion people face the possibili• zhang attributed the reappear• duced the scale of capital con• ty of being affected. ance of snail fever to inade• struction while keeping its main The present 110 affected quate attention paid to preven• economic targets. counties are mainly concentrat• tion work in recent years, failure In terms of industrial produc• ed in the lake and mountainous of scientific research to meet the tion, Shenzhen's total industrial areas in the south. Snail-infested need of prevention and treat• output value from January to fields have risen to 3.5 billion ment of the disease, careless dis• August this year reached 6.844 square metres in 1988 from 2.8 posal of human and livestock ex• billion yuan, 32.9 percent over billion square metres in 1980. crement, and shortages of funds the same period last year; the and medicines. • Minister of Health Chen Min- export of industrial products to• talled 3.927 billion yuan, an in• Shenzhen: A Decade of Robust Growth crease of 48.8 percent. The prosperous Shenzhen, fter nearly a decade of bur• export commodities made up like China's other special econo• geoning growth, the Shen• more than 60 percent. Its total mic zones, is exerting more and A zhen Special Economic export volume last year reached more influence on China's re• Zone, now covering a 61 square US$1.85 billion, second only to form and open policy. kilometre area, has transformed Shanghai, among China's coas• Zhuhai: Another Success Story. itself from a small seaboard tal cities. "The reform and open policy town into a modern city. By the With its increasing economic should be further carried out sweat of their brow, builders of sinews, Shenzhen has contribut• in China's special economic this brand-new metroplis have ed tremendously to the state. zones," Vice-President Wang begun to harvest the fruit of Statistics show that since its es• Zhen stressed recently while on their work. tablishment, the Shenzhen Spe• an inspection tour of the Zhuhai As a testing ground of China's cial Economic Zone has turned Special Economic Zone in south reform and open policy, Shen• over to the state a total profit China's Guangdong Province. zhen, across from Hong Kong, of 800 million yuan as well as Wang spoke highly of the re• has set up more than 2,300 US$82 million in foreign ex• sults achieved by the zone and foreign-invested enterprises change. encouraged officials and work• with a total capital of US$2.3 Shenzhen has also increased ers there to pool their wisdom billion, or about one-seventh of its ability to weather fluctua• and strength to make the zone the sum total that foreign busi• tions in the market. In recent even better. nesses invested in China. years, acting on the Party Cen• "Just as Party General Secre• Shenzhen's industrial output tral Committee's policy of eco• tary Jiang Zemin has repeatedly value was over 10 billion yuan, nomic rectification and deepen• stressed," Wang said, "the state's of which the output value of ing of reform, Shenzhen has re- stability is essential to the stable development of the economy." The newly built Shenzhen Financial Centre. CHEN ZONGLIE "This requires the entire nation to unite and stick to the reform and open policy," he added. Wang urged the people of Zhuhai to adhere to the style of hardworking and plain living. In one year's time, the West• ern District of Zhuhai has sy• phoned in a total investment of 160 million yuan, including more than 70 million Hong Kong dollars of foreign funds. The local people achieved all this by their bootstrap efforts, without asking ths state for in• vestment when the country'^ economy was suffering transient difficulties. •

10 BEIJING REVIEW, DECEMBER 25-31, 1989 EVENTS/TRENDS

from qualified teachers in safe, Survey Finds Kids Healthier, Happier bright and clean classrooms. Statistics show that kindergar• he majority of China's 300 and the UNICEF. tens in China are accommodat• million children are heal• This has played a great role in ing more and««iore children un• thy, well-developed and liv• reducing the death toll and cas• T der the age of six. In cities, 39 ing happily. They enjoy a care• es of disability and malnutrition percent of the children receive free home environment and ade• because of infectious diseases. quate medicare and education. The death rate for children be• pre-school education, 6.8 percent This is the conclusion of a five- low the age of five is 4.6 percent, higher thaii the 1983 figure. In year survey conducted by the much lower than the limit of 7 rural areas, where pre-school ed• State Statistics Bureau and five percent, a ceiling set by the Un• ucation was virtually impossible, other Chinese ministries and civ• ited Nations for all countries by 6.7 percent of the children are il organizations with funds prov• the year 2000. able to attend kindergartens. ided by the United Nations In• The survey finds that more The survey also shows that ternational Children's Emergen• than 97 percent of the children Chinese children are physically cy Funds (UNICEF). live in harmonious families with healthy, with a low rate of sick• More than 230,000 children, both parents around. Material ness. from new-borns to those 14 years and housing conditions of most The sampling indicates that old, in nine municipalities, prov• families has been improved. thanks to the country's family inces and autonomous regions With the betterment of economic planning policy, the number of were involved in the survey. It conditions, more and more fami• children has dropped to 28.9 per• looked at their growth and devel• lies has bought radios, television cent of the whole population opment, eating habits, social en• sets and video cassette recorders, from 33.6 percent in 1982. The vironment, family conditions, which help to educate children. proportion of one-child families medical care and physical condi• Of the 1,062 villages and is increasing. tion. neighbourhood committees cov• The mortality rate is decreas• ered in the survey, more than 91 The survey also reveals some ing as more and more children percent have elementary schools problems. For example, the over• receive inoculations, according and about 88 percent have hos• all standard of pre-school educa• to the survey. Statistics show pitals, clinics, village doctors or tion is still low, and medical and that more than 85 percent of the medics. health care facilities are compar• children in China receive inocu• Today, 77 percent of children atively backward in rural areas, lations, reaching the target set by between the ages of six and 14 where more than 80 percent of the World Health Organization are able to receive education the children in China live. • News in Brief Appeal For Freedom to Visit Taiwan The Taiwan Democratic Self-Government League Outstanding Scientists Honoured has urged the Taiwan authorites to allow all Taiwanese The Chinese Academy of Sciences (CAS) marked its compatriots on the mainland to visit their families and 40th anniversary by awarding its Young Scientist Priz• relatives and go sightseeing in Taiwan. es and Presidential Scholarships for the year. The League made this appeal at the Third Plenary Zhou Guangzhao, president of CAS, announced in Session of its Fourth Central Committee, which closed Beijing on December 15 that 21 research fellows from in Beijing on December 16. the academy's institutes had received Young Scientist The meeting spoke in favour of the recent decision Prizes. by Taiwan authorities to allow Taiwanese who settled Zhou also announced that over 100 scientists had on the mainland before 1949 to come for visits. received Presidential Scholarships. RIVIB Devalued Hijacked Jet Returned Enpowered by the People's Bank of China, the State The hijacked Air China jetliner that landed in Fu- Admininstration of Exchange Control announced in Beijing on December 15 that the exchange rate of the kuoka, Japan, on December 16, returned to Beijing Chinese currency (Renminbi) vis a vis foreign curren• early the following day with its crew and passengers. cies had dropped by 21.2 percent as of the following The jet, bound for the United States, was hijacked day. before its stopover in Shanghai. The value of foreign currencies will increase 26.9 According to reports, the hijacker was identified as percent by this action. Zhang Zhenhai, 35, who was hospitalized in Japan for That means that the buying price of one US dollar injuries incurred while being pushed out of the fuse• will rise ..from 3.71 yuan to 4.71 yuan and that the lage. selling price goes up from 3.73 yuan to 4.73 yuan. Q

BEIJING REVIEW, DECEMBER 25-31, 1989 11 Implementing the Policy of 'One Country, Two Systems' — A message to Hong Kong compatriots on the fifth anniversary of the signing of the Sino-British Joint Declaration on the Question of Hong Kong by GuoGang

ive years ago, the govern• cant step towards the reunifica• residents — something that is ments of the People's Re• tion of China. All the Chinese closely tied to the interests of public of China and Britain people, including the compatriots Hong Kong residents ~ and Fofficially signed in Beijing the in Hong Kong, felt happy and reached agreement on Hong Joint Declaration on the Question jubilant. Kong's separate participation in of Hong Kong, affirming China's The resolution of the Hong the General Agreement on Tar• resumption of the exercise of sov• Kong issue removed the histori• iffs and Trade under the name ereignty over Hong Kong on July cal shadow over Sino-British re• "Hong Kong, China" after 1997. 1, 1997. The question of Hong lations, bringing about the best Agreements have also been Kong, which is left over from the years in their relationship. Over reached and arrangements made past, was therefore satisfactorily the past few years, to implement permitting Hong Kong to stay in resolved and the national humi• the joint statement, the Chinese such international organizations liation inflicted upon the Chinese government has made great ef• as the Asian Development Bank, people over the past 100 or so forts and co-operated with the the International Monetary years ended. The Government of Fund, the International Bank British side. for Reconstruction and Devel• the People's Republic of China, The Sino-British Joint Liaison opment, the Universal Postal under the leadership of the Group and the Sino-British Land Union, the International Tele• Chinese Communist Party, had Committee have functioned ef• communication Union, and the finally achieved what the govern• fectively. After mutual consulta• International Maritime Organiza• ments of old China could not tions both sides have finished tion. Progress has also been made have accomplished. This historic examining the transitional ar• in the localization of Hong Kong event was a major success of New rangement of travel and identifi• laws, the reaching of the Hong China's diplomacy and a signifi• cation cards for all Hong Kong Kong Civil Aviation Agreement, the arrangement for the transfer of criminals between Hong Kong and other countries and the tran• sitional arrangement of land con• tracts. Not long after the signing of the joint declaration, the Na• tional People's Congress decided to set up the Drafting Committee for the Basic Law of the Hong Kong Special Administrative Re• gion in order to write into law the Chinese government's basic poli• cy on Hong Kong. After more than four years of common ef• forts by both mainland and Hong Kong legislators, the Draft Basic Law for Solicitation of Opinions and the draft of the Basic Law have been published along with two widespread bids to solicit op-

12 BEIJING REVIEW, DECEMBER 25-31, 1989 INTERNATIONAL inions in Hong Kong and the and therefore it has received gen• sumption of the exercise of sover• mainland. At present, the draft• uine support from the Chinese eignty over Hong Kong must be ing committee is busy with final people both inside and outside opposed. revisions to the Basic Law, which China and acclaim from the in• Some people propose that Hong will be submitted to the Third ternational community at large. Kong be "separated" and "insu• Session of the Seventh National Hong Kong's rise and fall is lated" from the mainland. Some People's Congress to be convened closely connected with that of the even suggest that a "burglar-proof in March for deliberation, ap• mainland. The only way to appro• lock" be mounted between Hong proval and promulgation. priately handle the relations be• Kong and the mainland and that Thanks to the joint efforts of tween Hong Kong and the main• the key be kept by the Hong Kong the Chinese and British and Hong land is to earnestly implement the people. This view is in total defi• Kong compatriots, Hong Kong's policy of "one country, two sys• ance of the integrity of China's situation over the past few years tems" by seeking a common sovereignty. It is not advanced in has been generally stable. Its ground of "one country" and support of the high-level autono• economy is thriving, its society preserving the differences of "two my under the "one country, two stable and people are working systems." This is a basic prere• systems" concept for Hong Kong hard for a more dynamic and vi• quisite for maintaining long-term but rather in favour of the esta• gorous Hong Kong. Facts have stability and prosperity in Hong blishment of "two countries, two proved, and will continue to Kong. It applies during the tran• systems" in a bid to turn Hong prove, that the Chinese govern• sitional period, and will be even Kong into an independent politi• ment has steadfastly abided by more so after 1997. cal entity that will be eternally the Sino-British Joint Declaration The core of the "one country, separated from China. It is well- and conscientiously fulfilled its two systems" concept is the reu• known that Hong Kong did not, commitments in this internation• nification of the country. Every• and will not, have any conditions al agreement. thing else will be out of the ques• for independence from the main• The Chinese government's bas• tion without the reunification of land. ic policy on Hong Kong, stipulat• China and its resumption of the As for the division of powers ed in the joint declaration, was exercise of sovereignty over Hong between the central government based on the scientific formula of Kong. The "one country, two sys• and the Hong Kong Special Ad• "one country, two systems." The tems" policy clearly states that ministrative Region under the Third Plenary Session of the the future Hong Kong Special "one country, two systems" for• 11th Central Committee of the Administrative Region will be a mula, the Basic Law will stipulate Chinese Communist Party res• regional administrative division that clearly. After 1997, the cen• tored the Marxist ideological line of the People's Republic of China tral government will respect the of seeking truth from facts. Based and will be under the direct jur• high-level autonomy of Hong on a deep respect for history and isdiction of the Central People's Kong. It need not and will not reality. Comrade Deng Xiaoping Government. The relationship be• interfere in the specific affairs of crystallized the collective wisdom tween the Central People's Gov• Hong Kong, but it is necessary for of the Party Central Committee ernment and the Hong Kong Spe• the central government to retain and put forward an unprecedent• cial Administrative Region is the some powers that are indispens• ed idea of "one country, two sys• same as that between a central able for a state's central govern• tems" as the basic state policy for government and a local govern• ment. This is a basic guarantee reunifying China. As far as Hong ment. The Hong Kong Special for maintaining the unified na• Kong is concerned, the formula Administrative Region can enjoy tional intej'ests. If the central gov• and its subsequent series of spe• a high degree of autonomy, but ernment renounces all powers, cial policies are based on the his• this autonomy, granted by the chaos that is detrimental to the torical and actual conditions of central government, is to be exe• fundamental national interests Hong Kong. They have both cuted under the state sovereignty and as well as Hong Kong's in• maintained national sovereignty of the unified People's Republic terests will probably erupt in and assured Hong Kong's contin• of China. It does not mean that Hong Kong. Therefore, it is in the ued stability and prosperity. This Hong Kong is an independent or interests of Hong Kong for the policy conforms to the fundamen• semi-independent political entity. central government to keep some tal interests and common desire Therefore, to implement the "one necessary powers. of the whole Chinese nation in• country, two systems" policy, the Some people, in an attempt to cluding Hong Kong compatriots, state's sovereignty must be main• pit "democracy against commun• but it also takes into account the tained first, the Chinese nation's ism," suggest that the "democrat• interests of other parties. It is unity must be safeguarded and ic process be accelerated" in de• both reasonable and practical, any attempt to block China's re• veloping Hong Kong's political

BEIJING REVIEW, DECEMBER 25-31, 19«9 13 INTERNATIONAL system. They favour holding a ge• lations with other countries or re• Kong problem, China has shown neral election of legislators at a gions in the world, for this will consideration for other countries' date much earlier than stipulat• only favour its stability and economic interests in Hong Kong. ed in the draft Basic Law. They prosperity. However, to maintain However, the economic interests stress that this is the desire of the Hong Kong's role as an interna• of other countries in Hong Kong Hong Kong people in an attempt tional monetary and trade centre should be protected by the Bas• to create a de facto situation to and to internationalize the Hong ic Law and other relevant Hong bring the Chinese government to Kong issue are two completely Kong laws, and no foreign politi• its knees. different things. Those who ad• cal intervention in Hong Kong's The Chinese government does vocate internationalization of the affairs will be permitted. The ar• not approve of this practice and Hong Kong problem do not pro• gument that those countries hav• has reaffirmed repeatedly that ceed from the need of Hong ing economic interests in Hong China stands for democratization Kong's economic development, Kong naturally share political in• of Hong Kong's political system. but attempt to create a situa• terests in its future arrangement But it must conform to the spir• tion where international forces and therefore can participate in it of "one country, two systems" can gradually intervene in Hong Hong Kong's political affairs, is a and the process must be gradual, Kong's political affairs. Essential• theory of hegemony and power with the balanced participation of ly they want to muster anti- politics. In the 1980s, and today all levels of society taken into ac• Communism and anti-China when the Chinese people have count. Briefly, the democratiza• forces in the world in order to stood up, such a theory will never tion must dovetail the stipula• thwart China's resuraption of the work. tions of the Basic Law and serve exercise of sovereignty over Hong In order to carry out the spirit the stability and prosperity of Kong. As is known to all, Hong of "one country, two systems," Hong Kong. With regard to the Kong has been part of China's the mainland and Hong Kong people's will, the central govern• territory since ancient times. It is should respect each other, get ment must pay attention not only only natural that China resumes along peacefully, and respect to those people who seemingly the exercise of sovereignty over each other's social system and serve the public interest but ac• Hong Kong. However, out of con• lifestyle. Both sides should not tually have ulterior motives, but sideration for Hong Kong's histo• force one's own political ideas also to the "silent majority" of ry and reality as well as for the and ideology upon the other. That the Hong Kong residents. It must good Sino-British relationship es• is to say, Hong Kong practises heed the views of the Hong Kong tablished after the founding of capitalism, while the mainland residents, but also the views of all New China and on the basis of follows a socialist road. Well wat• the Chinese people. Some people the Five Principles of Peaceful er should not intrude into river have discarded the principles of a Co-existence, China and Britain water, nor should river water in• step-by-step process and conform• finally reached an agreement on trude into well water. The ity with the Basic Law and played the Hong Kong question after Chinese government opposes any once again the card of the "peo• serious negotiations. During the attempts to harm complete state ple's will" in order to accelerate transitional period before 1997, sovereignty and to change "one the democratization of the politi• the implementation of the Sino- country, two systems" into "two cal system. This cannot but ar• British Joint Declaration is en• countries, two systems." The gov• ouse our suspicions that these tirely an affair of the Chinese and ernment also opposes wiping out people are actually seeking, under British governments, in which no one system with another and the pretext of "democracy," to es• other country or international or• changing "one country, two sys• tablish a power pattern in Hong ganization has the right to inter• tems" into "one country, one sys• Kong after 1997 that will con• vene. tem." Chinese leaders have stated front the central government and After 1997, Hong Kong will be• again and again that the Central harm China's sovereignty. This, come a special administrative re• People's Government will neith• we resolutely oppose. gion of the People's Republic of er change Hong Kong's capitalist Attempts to internationalize China. The Chinese government system nor practise its socialist the Hong Kong question have firmly refuses to make it an area system and policy in Hong Kong. also become a notable trend re• under international condomi• The leaders also hope certain cently. The Chinese government nium. As Hong Kong is an inter• Hong Kong people will not inter• has always maintained that Hong national city, many other coun• vene in or attempt to change the Kong's status as an international tries have their economic in• mainland's socialist system. monetary and trade centre re• terests there. While China em• As China's citizens. Hong Kong mains unchanged. The region will ploys the concept of "one country, compatriots undoubtedly enjoy continue to develop economic re• two systems" to solve the Hong the right of participating in the

14 BEIJING REVIEW, DECEMBER 25-31, 1989 management of state affairs, ac• fore, the Chinese government and colonialists. All the overseas cording to law. And their opi• hopes both the mainland and countrymen and countrymen of nions and suggestions about the Hong Kong will stress getting Hong Kong and Macao have mainland's work will be much along peacefully and make joint deeply felt it from their own ex• appreciated. However, when they efforts to create a good environ• perience. Only when the social• participate in the management of ment in which the concept of ist motherland is prosperous and state affairs, they must respect "one country, two systems" can strong can capitalist Hong Kong the mainland's socialist system be implemented smoothly. be stable and prosperous. We and follow the state constitution Currently, the problem is that don't want the compatriots of and laws. At present, Hong Kong there are certain people who use Hong Kong to accept the socialist residents enjoy freedom of speech Hong Kong as a base to subvert system, but believe that all pa• 3nd press. According to the stipu• the Central People's Government triots who support the reunifica• lations of the draft Basic Law, and the socialist system on the tion of China, preserve China's they will continue to enjoy these mainland. They have openly national dignity and wish China freedoms after 1997. During the to be prosperous will surely un• transitional period and after claimed that they plan to ov• Hong Kong has returned to the erthrow the central government derstand why 1.1 billion Chinese motherland, Hong Kong compa• and push Western "democracy, people on the mainland chose the triots must confine themselves to freedom and human rights" into socialist road. Hong Kong laws in their speeches the mainland. They have vi• To implement the spirit of "one and actions, as well as the state ciously atttacked and slandefSd country, two systems," Hong constitution and the relevant laws Chinese leaders, creating Var• Kong and the mainland should when they participate in state af• ious rumours to launch anti- benefit each other in economics fairs as Chinese citizens. When Communist and anti-socialist sen• because both sides have many Hong Kong compatriots want to timents, and even penetrated into common interests and room to de• raise opinions to the central gov• the mainland to support and take velop and promote social prosper• ernment, they should do it part in activities of illegal organ• ity. Common interests have close• through legal channels and in a izations. They added fuel to the ly linked Hong Kong with the legal way, such as, through the flames when the turmoil and mainland. The prosperity and National People's Congress depu• counter-revolutionary rebellion stability of Hong Kong relies ties, or the Chinese People's Pol• took place in Beijing in May and on the support of the mainland. itical Consultative Conference June. They plotted to help Without rich and cheap natural National Committee members, or the counter-revolutionary riot• resources, labour, food, fresh wat• submitting a written statement ers wanted by the central govern• er and daily necessities provided and appealing to the higher au• ment to secretly flee away and by the mainland, the economy thorities. If unsuitable means are took them in. All their subversive of Hong Kong could not sustain adopted to express one's own activities are in violation of the prosperity and development for viewpoints, things might go con• desire and interests of the Chinese very long. Hong Kong is also a trary to his wishes and damage people and have resulted in harm• door for all countries of the world might be brought upon the ing the stability and prosperity of to enter China. With the main• friendly relationship between the Hong Kong. land pursuing the policy of re• mainland and Hong Kong. Peo• The establishment and consoli• form and opening to the outside ple from the mainland and Hong dation of the socialist system on world. Hong Kong has gained Kong compatriots are all mem• the mainland has embodied the many benefits from economic ac• bers of the same family, and objective law of China's mod• tivities between China and other when dealing with mutual rela• ern social movement. Since the countries. tions, they should stress both le• founding of the People's Republic Reform, opening up to the out• gality and reasonableness, show of China 40 years ago, social• side world and construction of the consideration for the differences ism has made China with its mainland also need Hong Kong's in politics, the economy, the so• 5,000-year-old civilization re- foreign ties. It needs to increase cial system, ideology and values, emerge with vigour into a pros• export of raw materials and prod• and try to seek common ground perous country from a poor and ucts, introduce capital, technolo• while preserving differences. If backward nation. Today socialist gy and advanced management ex• one side tries to impose what it China is playing an increasingly perience through Hong Kong. favours on the other and acts to important role in world affairs. Their shared economic interests hurt the feelings of the other side, It is socialism that helped the demand that, when handling that will be harmful both to the Chinese people stand up, and no their economic relations, they state and to the individual. There• longer suffer from the bullying stress mutual benefit and com• and humiliation of imperialists mon development.

BEIJING REVIEW, DECEMBER 25-31, 1989 15 INTERNATIONAL

Since the Sino-British Joint De• the question on the future and "one country, two systems" and claration was signed in 1984 the confidence of Hong Kong. We other policies adopted by the cen• British government has been res• consistently consider that the fun• tral government towards the set• ponsible for the administration of damental conditions for preserv• tlement of the question of Hong Hong Kong during the transition• ing stability and prosperity of Kong still remain and will not al period. Whether Sino-British Hong Kong such as exceptionally fundamentally change. relations are good or not direct• natural and geographical environ• If China and Britain contin• ly influences relations between ment, comparatively stable socie• ue to co-operate on implementing Hong Kong and the mainland. ty, free and open economic sys• the joint declaration and Hong tem and policy, industrious and For five years China and Bri• Kong maintains and develops a ingenious 5 million compatriots relationship of mutual respect tain have maintained friendly co• of Hong Kong, the economic ties and benefit with the mainland. operation in implementing the of Hong Kong with the main• Hong Kong will retain its unique joint declaration, indicating that land and preference of transfer vitality and its future will be the two countries have a common of trade, as well as the policy of bright. • interest on the question of Hong Kong. In June, the Chinese gov• ernment put down a counter• revolutionary rebellion in Beijing aimed at overthrowing the leader• ASEAN Countries: ship of the Communist Party and socialist system — an entirely in• Adjusting Foreign Policies ternal matter. China did nothing to hurt others, and it does not by Lin Xiaozeng want to be hurt by anyone else. Currently, the Sino-British rela• n the past. Cold War confron• enced the situation in Southeast tions are abnormal, and responsi- tations influenced foreign poli• Asia and relations among the par• biUty does not lie on the Chinese Icies of countries within the ties concerned. side. The Chinese people do not Association of Southeast Asian Despite differences and dis• want to see such a situation. Nations (ASEAN). Because of a putes on views and policies among China is a polite country and pays similar social system and ideolo• ASEAN countries, their adjust• attention to courteous reciprocity. gy, ASEAN countries tended ments do share some common On the question of Hong Kong to develop closer relations with ground. China believes in consultation, Western countries, and pur• mutual understanding and ac• sued pro-Western foreign poli• Moving Closer commodation. The Chinese peo• cies. They depended on Western To the Soviets ple cannot accept pressure being support and co-ordination to safe• exerted upon them. The Chinese guard their independence and se• Now, ASEAN countries are government has repeatedly reaf• curity. After the Soviet Union trying to gradually break away firmed its .policy of reform and supported Viet Nam in its inva• from Cold War influences, streng• opening to the outside world sion of Kampuchea and set up then independent policies and won't change. Its policy of "one a military base in Viet Nam, distance themselves from the Un• country, two systems" remains ASEAN countries further relied ited States while at the same time unchanged. The Chinese people on US and Western support to developing relations with the So• will always observe the Sino- contain Soviet and Vietnamese viet Union. British joint declaration. Whatev• expansion and threat in the re• ASEAN countries have tried to er happens, China will not budge gion. lessen their dependence on the from the joint declaration. China However, in recent years there United States, and contradictions and Britain should maintain and have been changes in East-West and clashes have intensified. develop good relations of co• relations — US-Soviet relations Thailand and the Philippines, operation to ensure a smooth have switched to dialogue from which have an alliance with the transitional period for Hong confrontation. State-to-state rela• United States, and Singapore, Kong. Unrest during this period tions in the Asian and Pacific re• which has also developed closer will be in the interest of neither gion and in Southeast Asia have ties with the Americans, all show side. China hopes Britain will also begun to change. Because of a tendency towards distancing adopt a wise and realistic attitude the changed atmosphere, ASEAN themselves from Washington. and co-operate in order to imple• countries have made major, im• They stress their own interests ment the joint declaration. portant adjustments to their for• and advocate multilateral diplo• Recently people often speak of eign policies, which have influ- macy. Thai Prime Minister Chati-

16 BEIJING REVIEW, DECEMBER 25-31, 1989 INTERNATIONAL chai Choonhavan has indicated and-Pacific policy. Currently, Economic Development a that Thailand will implement a ASEAN countries are taking steps neutralist policy. Philippine Pres• to develop economic relations Top Issue ident Corazon Aquino has with the Soviet Union and East Economic development has be• claimed the Philippines will pur• European countries. A rapid de• come the top priority of ASEAN sue a peaceful and co-operative velopment of bilateral economic countries and their foreign poli• policy towards all countries. Anti- relations is difficult because of a cies are tightly linked to that de• American feeling has increased in lack of economic complementari• velopment. As soon as Chatichai the Philippines because the people ty and a shortage of hard curren• became prime minister of Thai• are aware that so long as US mil• cy, but trade will likely increase land, he announced that Thai• itary bases remain on the islands, and investment by the Soviet land's foreign policy aim was to the Americans will continue to be Union and East European coun• turn Indo-China from a battle• able to interfere in their country's tries in ASEAN nations will also field into a market. In actual fact, internal affairs. The government develop gradually. ASEAN countries have been of Singapore even expelled a first vying with each other to improve secretary of the US embassy in Resolving the relations with' Indo-China in or• Singapore to protest American in• der to gain a favourable position terference in its internal affairs. Kampuchean Problem in the region's market. Indonesia, in order to raise its pos• To expand their market and fin• ition among non-aligned nations, After the easing of East- ancial resources, ASEAN coun• has stressed the non-aligned na• West relations, ASEAN coun• tries have improved relations with ture of its foreign policy. Faced tries stopped their confrontation the Soviet Union, Eastern Europe, with a progressive reduction of with Viet Nam on their own ini• Africa and Latin America in view the US role in Southeast Asia, tiative and adopted a more flexi• of their pluralistic economic poli• ASEAN countries have streng• ble attitude on the Kampuchean cy. In doing this, they have not thened their defence forces one issue to seek an earlier settlement. neglected seeking active aid from after another and have ap• At the same time, they improved the United States, Japan and proached how to increase their relations with Indo-China. In• Western Europe. They stress co• donesia hosted two informal meet• operative and competitive rela• defence co-operation. As for arms, ings on the Kampuchean problem tions with these developed coun• ASEAN countries are trying to in Jakarta under the support of tries, hoping the contradictions buy fewer weapons from the Un• other ASEAN countries. Leaders and conflicts among their eco• ited States. For example, Malay• of Indonesia and Thailand have nomic relations can be settled sia bought equipment worth of encouraged leaders of various fac• through co-ordinative efforts. US$2.5 billion from Britain and tions of Kampuchea to negotiate. Thailand bought a number of The Thai government announced weapons and equipment from that improving relations with Policy of "Balanced neighbouring countries. Strength" Meanwhile, ASEAN countries Indo-China would take priority in no longer regard the Soviet Union its foreign policy. Soon after tak• Although US-Soviet military as a realistic threat because of the ing office, Chatichai visited Laos strength in the Asian-Pacific re• inevitable Vietnamese troop with• and plans to visit Viet Nam soon. gion continues to play a leading drawal from Kampuchea. There• Although Thailand has not recog• role, the key players in the region fore, they have clearly improved nized the Phnom Penh regime, are the United States, the Soviet their relations with the Soviet Hun Sen, the prime minister of Union, China and Japan. The pol• Union. Both the prime ministers the Heng Samrin regime, has paid icy of ASEAN countries is to wel• of Malaysia and Thailand have three informal visits to Bangkok. come the four powers in the re• visited Moscow. Recently, In• The two sides discussed the Kam• gion. However, no country can donesian President Suharto paid puchean problem, economic rela• be allowed to dominate Southeast his first trip to the Soviet Union tions and trade. Philippine Se• Asia. ASEAN countries have de• since taking office in 1965, and cretary of Foreign Affairs Raul termined to pursue a policy of Philippine President Aquino is Manglapus also visited Viet Nam "balanced strength," allowing the likely to visit the Soviet Union in last year, and discussed such ques• United States, the Soviet Union, the near future. As well, Soviet tions as US military bases in the China and Japan to restrain each leaders have frequently visited Philippines and the Soviet naval other, thus gaining the most bene• ASEAN countries in recent years. base at Cam-Ranh Bay in Viet fit in a situation of stability and ASEAN countries have praised Nam and the Chinese Nansha Is• development. They did not ask highly Gorbachev's "new think• lands, showing a tendency to im• the United States to dismantle its ing" and the new Soviet Asian- prove relations. military bases in the Southeast

BEIJING REVIEW, DECEMBER 25-31, 1989 17 INTERNATIONAL

Asian region, because the two su• ASEAN countries' foreign policy foreseeable future. US military perpowers will restrain each on the whole is somewhat limited. might and economic strength in other. Although the situation in the the Southeat Asian region has ASEAN countries have become Southeast Asian region has eased, tended to decline while Japanese increasingly dependent on Japan the US and Soviet rivalry for the economic strength and political for their market, capital and tech• region has not stopped. The, US and economic influence upon nology. But they are afraid that military bases in the Philippines ASEAN countries have been in• Japan will develop into a military and the Soviet military bases in creasing. In a few years Japan power and have been trying to Viet Nam continue their antagon• may occupy a leading position in rely on China, the Soviet Union istic posturing, and US and Soviet ASEAN's foreign economic ties. and the Unhed States to check the military forces are deployed ar• Its influence on these countries trend towards the revival of mili• ound ASEAN countries. Under will Okely outstrip that of the Un• tarism in Japan. such circumstances it is difficult ited States. for ASEAN countries to rule out As for the Kampuchean issue, Regional Economic the influence of US-Soviet con• it will be a long time before the Co-operation tention. problem is resolved because Viet Although US forces in the area Nam wants to protect its invested The main issues of the third are smaller than before, they still interests and there are many inter• summit meeting of ASEAN coun• nal and external factors that work tries in 1988 were strengthening occupy a leading position. Ameri• can military, political and econo• against a comprehensive settle• economic co-operation and for• ment. With ASEAN countries at• mulating programmes for the mic strength and influence are tempting to bring Indo-China into next five years. ASEAN countries much stronger than those of the their sphere of influence, Viet have taken an active and pru• Soviet Union. The United States dent policy towards regionaliza- has some complaints about the Nam has taken the opportunity tion and conglomeration of the readjustment of ASEAN coun• to exert its influence upon these present international economic re• tries' foreign policy, but it can do countries. lations. In principle, ASEAN nothing. It has been trying to keep In conclusion, readjustment of countries support the Asia-Pacific ASEAN from running away from ASEAN's foreign policy will meet co-operation, but oppose any ex• the US sphere of influence. with difficulties and obstructions clusive group. ASEAN first It is realistic to say that and its impact on the situation stresses co-operation among its ASEAN countries cannot change in the Southeast Asian region re• members. ASEAN countries are their heavy dependence on the mains to be seen, but ASEAN all members of the Committee United States and Japan in the cannot stop the course it is on. • of the Pacific Economic Co• operation. At the same time they maintain that their co-operative scale with the Asia-Pacific region International Studies should be smaller than the co• operative one between themselves, (A Quarterly in Chinese) attempting to set up an unofficial Contents of Issue No. 1, 1990 and loose organization with this region in order to prevent the Un• The Prospects for the 1990s Wang Lin ited States and Japan from con• On Asia-Pacific Situation in the 1990s Tao Bingwei trolling and manipulating. They On the Cause of US-Soviet Disarmament and the Brospects for the have also adopted a prudent atti• 1990s , Xia Yishan tude towards the economic rim, a An Economic Comparison of Export-Oriented Development Stra• Forum for the Asia-Pacific Eco• tegies Chen Zhaoxing nomic Co-operation and a US- ASEAN free trade zone. To pro• Beyond Containment: An Initial Analysis on US Strategy tect their interests, ASEAN coun• Pan Tongwen tries took part in a ministerial Political Settlement of Afghanistan in Stalemate meeting of 12 Asian-Pacific coun• Hong Xicheng tries held in AustraUa in Novem• On Economic Situation in India and Its Seventh Five-Year Plan ber 1988. Dong Manyuan South Africa at the Crossroads Wang Yingying On "Overall National Strength" Li Tianran Difficulties and Unyieldlngs China's Foreign Relations: A Chronicle (September-November \1989) / The range of readjustment of

18 BEIJING REVIEW, DECEMBER 25-31, 1989 China Hits Hard at Corruption by Our Staff Reporter Wu Naitao

n line with a decision of the Criminals Guilty of Graft, Bri• tion and concluded a pact to CPC Central Committee and bery and Speculation Who Must shield each other; or who abs• the State Council, China has Surrender Themselves Within a conded to avoid punishment and Ilaunched a crackdown on graft Specified Time Limit. The time refused to be brought to justice and corruption, especially those limit stipulated in the circular would be severely punished ac• cases involving embezzlement of was from August 15 to October cording to law. over 10,000 yuan and senior 31, 1989. Those who surrendered On August 19, the Chinese cadres. This action demonstrates themselves, gave up their ill- Ministry of Supervision issued the firm determination of the gotten gains and reported other the Circular on Personnel of the Party and government to streng• offences to the authorities within State Administrative Organiza• then clean government and pun• the above-mentioned time limit tions Guilty of Corruption and ish corruption. would all be given lenient treat• Bribery Who Had to Voluntarily The campain has already ment. Those who refused to sur• Give an Account of Their Prob• brought results. render themselves, to make a lems Within the Time Limit. The Liu Yushan, former deputy di• clean breast of their crimes; rector of the Anhui Provincial circular said the supervisory or• Machine-Building Department, who destroyed incriminating ev• ganizations at all levels must brought a bank account of 47,- idence, hid the spoils and illicit concentrate on investigating and 600 yuan with him on the morn• money; who acted in collabora• dealing with cases of personnel ing of August 25, 1989 when he Criminals cannot escape the net of justice. ZHAO REN surrendered himself to the An• hui Provincial Department of Supervision. According to Liu's account, he had embezzled some 10,000 yuan of public funds by writing false receipts and making fraudulent claims and expense accounts slips at a dozen or so enterprises affiliated to the machine-building department. The case has been referred to the supervisory organization and when the facts about Liu's crime are ascertained, he will be given lenient treatment according to law. Liu Yushan is one of 10,000 criminals who, in the face of the powerful offensive launched re• cently against graft and corrup• tion, have turned themselves in.

Surrender Within A Time Limit On August 15, 1989, the Su• preme People's Court and the Supreme People's Procuratorate jointly issued the Circular on

BEIJING REVIEW, DECEMBER 25-31, 1989 19 of state administrative organiza• ber rose to 2,181 people with 13.8 ty and government. Cases of cor• tions involved in graft and bri• million yuan; recovered by Octo• ruption, manifested in graft, bri• bery; work units and persons in• ber 20, 18,030 criminals had sur• bery and the abuse of power for volved in the cases, whatever rendered themselves to supervi• personal ends, has increased in they are, must be seriously dealt sory institutions and given up number. Those involved in cor• with in accordance with the a total of 101.97 million yuan ruption are mainly engaged in provisions of the Temporary Re• worth of illicit money and spoils. finance and accounting, busi• gulations on Giving Disciplinary Of these there were 3,963 crimin• ness, and supply and marketing; Sanction Against Personnel of als who each had ill-gotten goods people implicated in cases of bri• State Administrative Organiza• or money exceeding 10,000 yuan bery are mostly those having tions Guilty of Graft and Bri• in value. power over the allocation, plan• bery and other relevant laws and ning and use of human, financial regulations and must not be to• A Necessity and material resources. lerated. Over the past few years, the After the publication of the In recent years, the slogan of efforts of the Party and gov• two circulars, newspapers, broad• "Anti-corruption" has resounded ernment departments to prom• casting stations and television in China but the phenomenon of ote clean government and con• stations in various parts of the corruption has gone unchecked. trol bribery and corruption has country gave them wide publici• Secretary-General Luo Gan of made some progress. For exam• ty. Supervisory departments in the State Council has said, "Cor• ple, according to statistics from some places set up a special re• ruption is seriously contaminat• the departments concerned, be• ception office for those who sur• ing our healthy societal body and tween February 1982 and June rendered, set up special tele• threatening our subsistence. Un• 1986, more than 67,600 Party phone lines, assigned special per• less resolute measures are tak• members were disciplined for in• sonnel to be on duty and made en, the consequence will be too volvement in economic cases, the measures known to the dreadful to contemplate." 25,598 of whom were expelled The overwhelming majority of from the Party; since 1987, or• public. ganizations for discipline inspec• A week after the publication the cadres are law-abiding, tion have conducted investiga• of the circulars, 288 people sur• honest and strict with them• tion annually in which more rendered, handed over 1.415 mil• selves. However, there are indeed than 100,000 Party members are lion yuan of illicit money; ten some people, including some found to have violated discip• days after the circular was made leading cadres, who are engaged line; in 1988, state supervisory public, 1,082 people had turned in corruption. Although in the organs handled more than 21,100 themselves in and handed over minority, they exert a very bad cases of graft and bribery, and 7.94 million yuan of illicit influence on society and blemish took disciplinary action against money; 20 days later, the num• the image of the Communist Par- more than 3,700 leading cadres Liu Donghan, management head of the Material Supply Division of the Guangzhou who are Party members. But ov• Fuel corp., who ignored the Circular of the Supreme People's Court and the erall, more was said than done in Supreme People's Procuratorate, is arrested for criminal crimes. ZHAO YONGVIEI promoting clean government and cracking down on corruption; the measures taken were ineffec• tive. As early as 1980, Deng Xiaop• ing had given a warning. At the CPC Central Committee's Politi• cal Bureau Conference on Au• gust 18, 1980, he admonished leading Party and government cadres at all levels about the les• sons of the "cultural revolution." He said, "At present there are still some cadres who, regard• ing themselves as masters rath• er than servants of the people, use their positions to seek.person• al privileges. This practice has

20 BEIJING REVIEW, DECEMBER 25-31, 1989 CHINA aroused strong mass resentment many people were involved in Law by State Administrative Or• and tarnished the Party's pres• the "June 4 incident" that took ganizations and Their Staff, The tige. Unless it is firmly correct• place in Beijing at the turn of Detailed Rules for the Imple• ed, it is bound to corrupt our spring and summer was that the mentation of the Temporary Re• cadres." plotters and organizers incited gulations on the Disciplinery When the reform brought such the masses' discontent with cor• Sanction Against State Function• good results and benefits, howev• ruption. The whole nation has aries for Graft and Bribery, as er, some leading cadres failed to now come to realize that the well as A Number of Regula• pay adequate attention to the ad• fight against corruption is indeed tions on the Strict Prohibition on vice of the chief architect of re• a matter concerning the life and Giving Dinner Party and Gifts form. The mass madia intermit• death of the Communist Party in All Official Business Activi• tently exposed the phenomenon and the long-term peace and ties, and Regulations on Check• of corruption but investigations stability of the country. Unless ing Excessive Eating and Drink• met resistance and some cases there is a clampdown on corrup• ing at Public Expense and the were left unfinished. The result tion, China's socialist construc• Introduction of the Method of was the spread of corrupt prac• tion faces the danger of going Work Meals for Staff Members tices. bust. It is high time, therefore, to at Party and Government Organ• Deng Xiaoping recently point• tackle the matter. izations. ed out that even though the prob• In late July, the CPC Central On September 13, the Ministry lem had been mentioned many Committee and the State Council of Supervision published the De• times over a period of several decided that they would under• tailed Rules for the Implementa• years, few results have been take seven tasks of common con• tion of the Temporary Regula• achieved. The reasons, he said, cern to the masses. These include tions on Disciplinery Sanctions probably lay within the highest the abolition of the special sup• Against State Functionaries for level of the Party. ply of a small quota of food for Graft and Bribery, reaching People have strongly opposed Party and state leaders, the use some 6,000 words in 46 articles. corruption and expected that the of China-made instead of foreign There are explicit stipulations in CPC Central Committee and produced limousines by senior the Temporary Regulations on the government would effective• and the withdrawal of senior enforcment of administrative ly deal with it. However, Zhao cadres' spouses and children discipline and on the investiga• Ziyang, then general secretary of from companies in the circula• tion and punishment of state the CPC Central Committee, was tion field. The clampdown on functionaries for their acts of indifferent towards the problem, graft and corruption was an• graft and bribery. Implementa• even asserting that corruption nounced as one of the major, pre• tion of the Detailed Rules has was unavoidable. When the sent tasks, particularly investiga• made the Temporary Regula• masses expressed their strong dis• tions of major cases (involving tions more concrete, the policy content about children of high- an excess of 10,000 yuan) and line more hard and fast and en• ranking officials doing business those involving senior cadres. forcement of the regulations eas• and abusing their power, Zhao ier. For example, it clearly de• disagreed, saying, "This does not fines what is meant by "taking tally with the state law. Lead• Institutions advantage of the convenience of ers' children cannot be separat• To combat corruption, the one's post." This includes both ed from the masses and put un• Ministry of Supervision has for• the use of power within the scope der another category." At a prov• mulated more than 20 adminis• of one's post and the use of the incial governors conference, held trative laws, rules and regula• convenient conditions created by after the people's congress last tions and is drafting and revising the post one presently holds or March, Governor Shen Zulun five sets of regulations: The Su• held in the past; it stipulates that of Zhejiang Province and oth• pervisory Regulations of the Peo• when a state functionary's pro• ers proposed to Zhao that re• ple's Republic of China, the perty or expenditure is obviously gulations be enacted forbidding Provisional Regulations on the greater than his legal income and high-ranking officials' children Disciplinery Sanction Against he himself fails to clearly ac• from doing business, but Zhao State Functionaries for Derelic• count for its legal source and the ignored their proposal. His atti• tion of Duties, the Temporary balance exceeds 2,000 yuan, he tude, in effect, protected those Regulations on the Report About should be disciplined according• who abused their power to secure the Property and Income of State ly. In addition, with regard to profit by force or trickery. Functionaries, A Number of Re• acts of bribery, embezzlement of One of the reasons why so gulations on the Enforcement of public funds and the covering-up

BEIJING REVIEW, DECEMBER 25-31, 1989 21 BEIJING REVIEW Subject Index (Nos. 27-52,1989) Issue Issue Issue Issue No No No No

I. DOMESTIC Marxism-Leninism Needs to Be Inte• grated With China's Reality 38 14 1. Political Establishing Clean Government 38 31 Veteran Leader on Anti-Subversion 39 9 1) General Study of Marxist Philosophy Urged 40 4 CPC Central Committee Holds Plenum 27 4 Leader Explains Policies to HK Jour• China Not to Yield to Foreign Pressure 27 5 nalists 40 6 Spokesman on Current Situation 27 11 Quality of Party Members to Be Im• Jiang Reiterates Party's Policies 28 4 proved 40. 8 Deng's Talks on Quelling Rebellion in Top Party Leaders Answer Questions at Beijing 28 14 Press Conference 40. 15 People Comment on the Riot in Beijing 28 21 Beijing Celebrates PRC's 40th Anniver• Who Stirred Up the Turmoil 28 21 sary 41: 5 Seize the Vicious Manipulator—Liu Speech at the Meeting in Celebration of Xiaobo 28 22 the 40th Anniversary of the Found• What Did the Campus Broadcasting ing of the People's Republic of Station Do? 28 25 China 41: 11 Deng Xiaoping on Upholding the Four Daqing Spirit Inspiring 42: 5 Cardinal Principles and Combating China's Model Workers Honoured 42 5 Bourgeois Liberalization 29:16 Li Peng on Current Domestic and In• Report on Checking the Turmoil and ternational Policies 42 14 Quelling the Counter-Revolutionary Questions of Interest About China 44 8 Rebellion 29: Centrefold Two Views on Reform 45 4 Martial Law Kept in Force 30 4 Why China Should Not Introduce the Upholding Fundamentals for National Tripartite Political System 45 29 Construction 31 4 Deng Meets Henry Kissinger 47 6 CPC to Boost Ideological Work 31 5 Communique of Fifth Plenary Session Shanghai Remains Open to Foreign of 13th CPC Central Committee 47 15 Business 31 8 CPC Central Committee Decision on The Road to Strength and Prosperity 32 4 Deng's Resignation 47 18 Forums on Fighting Liberalization 32 8 'China Has Not Been Isolated' 47 38 'Democracy Must Fit China's Reality' 32 28 Chen Jingrun: Still Working on 14-1 47 40 Encouraging Clean Government, Com• Marxism—Leninism Is the Banner of bating Corruption 33. 4 Our Times (I) 48 13 Subversive Acts by Fugitives Continue 33. 5 Positive Reporting by Media Stressed 49 5 Yuan Mu on Fang"& Turmoil Li Peng on Domestic and World Issues 49 8 Problems 35: 5 The True Features of 'Democratic State Cuts Food & Car Perks 35: 6 Fighters' 49 19 Anti-Corruption Rules to Plug Loo• Marxism—Leninism Is the Banner of pholes 36: 9 Our Times (II) 49 23 Multi-Party Co-Operation Continues 38: 6 Media Must Serve People, Socialism —Jiang 50 4 I Issue Issue Issue Issue No No No No

Unity Among Nationalities Stressed 50 5 Brief Biography of Yang Baibing 47 23 Marxism-Leninism Is the Banner of Deng Urges PLA to Stay Loyal 48 4 Our Times (III) 50 23 Chinese Leaders and Deng Meet US 5) Democracy and Legal System Envoy 51: 4 No Change in Reform Policy—Deng 39 5 Overseas Chinese AflFairs High on CPPCC Marked 40th Anniversary 40 6 Agenda 52. 5 Synching Economic, Pohtical Reforms 52: 6 6) Hong Kong, Macao and Taiwan Party Leadership, League Role Reiter• China Sticks to HK, Macao Policy 27 6 ated 52: 8 Policy on Taiwan Unchanged 28 8 Taiwan Reporters Deported 30 5 2) Chinese Communist Party HK Newspaper on China's HK Policy 31 7 Communique of the Fourth Plenary Former KMT Personnel Won't Be Pro• Session of the 13th CPC Central secuted 39 7 Committee 27: 9 Taiwan Denounced for Propaganda Party Leader Calls for Discipline 28: 5 Trick 40 7 Profiles of the Party's Leaders 28: 17 'Internationalization' of HK Question Addenda to Party Leaders' Profiles 29: 19 Opposed 45 5 CPC Vows to End Corruption 32: 5 'Internationalization' of Hong Kong Intensification of Party Consolidation Gets Nowhere 50. 10 Urged 36: 5 Mainland's Taiwan Policy Unchanged 50 31 The Communist Party Must Accept Su• Hong Kong Policy Remains pervision 39; 16 Unchanged 51 8 Communist Pioneer Commemorated 46: 6 Deng Retires, Jiang Appointed MiHtary 7) National Minority Chief 47: 5 Lhasa: Growing Pains 35 21 Deng Meets Last Foreign Guests Offi• Yunnan Minorities Mix Life Styles 37 30 cially 48: 5 The Little Known Nationality of the Tu Developing the Economy in a Sus• 47 28 tained, Stable and Harmonious Way 49: 13 Unity Among Nationalities Stressed 50 5 State Aid to Poor Counties of National 3) National People's Congress and the Minorities 52 29 Chinese People's Political Consultative Conference 8) The Legal System NPC Meeting Focuses on Rebellion 29: 4 Draft Law Opens for Discussion 29 5 NPC Standing Committee Brings New NPC to Probe Signature Incident 29 6 Measures 37: 4 Crackdown on Corruption Continues 29 7 Current Economic Policy Pays Off 37: 5 Corruption Cases Brought to Light 30 6 Financial Strain Analysed 37: 6 Liaoning Governor Issued a Summons 30 31 Hainan Governor Dismissed for Abuse Implementation of UN Beijing Roles: of Power 39: 6 Juvenile Delinquency 32 20 Important Role of the CPPCC Reiterat• Smuggling Developed to a Fine Art 33. 23 ed 43: 4 State Fines Major Firms 35. 5 Returned Students Warmly Welcomed 51: 6 Confessions Easier With Clemency 4) People's Liberation Army Law 36: 7 Martyrs Are Remembered 27: 7 Forum: Why 'Laws Go Unenforced' 37: 13 Between Army and People 31:16 A Few Words About Martial Law 38: 4 Martial Law Troops Replaced in Tian• Big Fish Caught in Abuse Crackdown 38: 5 anmen Square 46: 4 Overview on Resolution of Economic Deng Xiaoping's Letter of Resignation Disputes Involving Foreign Interests to CPC Pohtical Bureau 47:21 in China: The Legal Basis & the Ma• Brief Biography of Liu Huaqing 47 :22 jor Methods 41 : 35 II Issue Issue Issue Issue No No No No Working Hard to Build the Legal Sys• Economic Structural Imbalance: Its tem 42 27 Causes and Correctives 36 18 China Joins in Anti-Drug Campaign 43 6 China's Foreign Exchange Boosted in Anti-Porn Campaign Off to Good Start 44 4 '88 36 28 Construction of the Chinese Legal Sys• Only Socialism Can Develop China 40 19 tem 44 13 China Advances Towards Its 40th An• Symposium on Combating Unfair niversary 40 26 Competition 44 31 Daqing Spirit Inspiring 42 5 Demonstration Law Approved 46 4 China's Major Natural Resources 42 34 China Deals With Unfair Competition 47 7 China Meets Economic Challenges 43 4 China Hits Hard at Corruption 52 19 Statistics Show Economic Growth 46 8 China Cleans Up Companies to Stop Official Profiteering 46 14 9) Others Ten Major Ecological Problems 46 28 Beijingers Rescue PLA Men 28 6 Initial Success for Economic Rectifica• Features of Law-Breaking by Cadres 29 30 tion and Improvement 48 16 Hunger Strikers Used as a Tool for Readjusting of Industrial Structure 51 29 Political Blackmail 30 24 2) Industry, Communications and City Beijing After the Counter- Construction Revolutionary Rebellion 31 19 Three Gorges Project (I): Dream and Aping West Ways Resulted in Turmoil 32 28 Reality 27 15 Party Still Backs Intellectuals 33 6 Three Gorges Project (2): Main Points What Does 'The River Dies Young' Ad• of the Feasibility Study Report 27 22 vocate? 34 18 Three Gorges Project (3): Why I Am People's Daily Editor's Note 34 19 Agaisnt the Project 27 27 Hou Appears From Hiding 35 7 Developments in China's Offshore Oil Campaign to Beat Down Pornography 36 6 Industry 28 27 Li Puts New Generation in Focus 38 6 Industrial Growth Better 29 9 More Care for Complaints 39 8 Modernizing China's Highway Net• A View of the Class Struggle 41 44 work 32 9 Active in State Affairs 42 26 Travel Costs Increased 37 4 Overseas Trips by Officials to Be Con• Total China-Made Car Mkt Targeted 38 8 trolled 43 6 Shenyang: Seeking Co-Operation in In• Ideological Work Should Strengthen 43 8 dustrial Transformation 38 15 Eyewitness Accounts of the Clearing of China Sets Up Independent Industrial Tiananmen Square 43 26 System 39 22 New Trends on Nanjig Campuses 52 34 Energy Blueprint Worked Out 41 6 'Opening Broadens My Horizon' 41 25 10) Others Peaceful Use of Nuclear Energy 42 17 Sci-Tech Group Probes Geo-Disasters 36 9 High-Tech Pays Off 43 7 Tarim Basin, a Promising Oil Resource 47 6 2. Economic Golmud—a New Plateau Town 47 24 Big and Medium-Sized Enterprises: 1) General Backbone of Industrial China 49 25 Ups and Downs of 'Red Flag' Car 51 29 China's Major Natural Resources 29 30 Use of Scrap Metal Increases 52 34 Li Urges an Orderly Economy 34 5 Diaoyutai State Guesthouse: a Mirror Li Stresses Stable Economy 35 4 of Diplomacy 52 34 EUminate Unfair Income Distribution 35 15 Why China Will Not Practise Privatiza• 3) Agriculture, Animal Husbandry and tion 36 4 Sideline Production Economy Develops Amidst Snags 36 15 Hope for China's Agriculture 33 15 III Issue ssue Issue Issue No No No No

Matters for Deep Thinking 33 27 Actors, Actresses Evading Taxes 47: 8 Fewer Farmers on the Move 37 30 Plant Growth Agent Taken to Rural Areas 38 30 6) Tourism Farm Mechanization Takes Off 38 31 China Still Welcomes Tourists 27:31 A Way to Treat Low-Yielding Farm• A Restaurant That Serves Medicinal land 39 27 Food 28;34 'Present Policies Are Best' 40 35 Beijing Tourism Picks Up 31:23 Beijing Suburban Agriculture on Road Guild Hall's Legacy! 31: 34 to Modernization 46 23 World's Largest Mini-Compact Scenic Serious Grasslands Degeneration 46 28 Area 35:34 Minhe County's Fight Against Poverty 47 31 Science Lovers Get Tours 35: 34 Farmers' Joys and Worries 47 45 New Convenience for Commercial Agriculture Takes Top Priority 50 6 Travellers 39:34 Popcorn in Beijing 50 29 Mystic Conch-Like Valley 41:30 Breakthrough Needed in Agriculture 51 6 Tourist Meeting in Shenzhen 46: 30 Flea Market Opens in Beijing 47:47 4) Forestry Aviation Museum Opens in Beijing 50: 34 Shelterbelt to Guard Yangtze 36 10 Restored Scenic Belt in Nanjing 50: 34 Forests Plundered Despite NPC Laws 37 6 38 8 Big Trouble in the Woods 7) Opening to the World Verdant 'Great Wall' Turns China Foreign Trade to Be Expanded 27 : 5 Green 52 8 Mediating Disputes for Foreign- 5) Finance and Trade Funded Enterprises 28:30 World Bank Link Still Exists 28 7 Resource Capital Needs Capital 28: 30 Chinese Clothing Catches Up With US$ 100 Million Repaid to HK 28:31 World Trend 30 20 More Foreigners Invest in Shanghai 28:31 How Traders Spend Money? 30 31 US & Holland Invest in Hi-Tech Indus• Strengthening Taxation's Role as an try 28:31 Economic Lever 32 16 Favourable Situation in Foreign Trade 29:25 China Reiterates Loan Policy 32 30 Volkswagen Plans Expansion in China 29: 25 China Seeks More World Bank Loans 32 30 Lift Venture Seeks Foreign Sales 29:26 China Fights Tax Dodgers 33 6 Good Sales of Woolen Yarn 29:27 Foreign Exchange to Be Co-Ordinated 34 22 Sino-British Contract on Course 29: 27 Call to Use More China-Made Goods 35 28 China's Foreign Trade Policy Remains Shanghai: Stock Market Unchanged 30:13 Re-established 38 19 Beijing Continues to Open the Door 30:15 Hai Tong Endeavouring Securities Foreign Entrepreneurs and Chinese Transaction 38 23 Staff Overcome Difficuhies 30:16 ADB Loan flows to Shanghai 38 28 Foreign Chamber of Commerce Set Up 30:27 Upstarts Evade Taxes 38 30 Co-Operation in High Technology 30:27 Circular on Crackdown on Counterfeit Exports and Imports Rise 30:27 Goods Issued 39 9 Investment Area for Taiwanese 30:28 'A Private Entrepreneur's Dream' 40 39 Multi-Functional Corporation 30:28 Don't Shun Your Iron Pot 42 34 Real Estate: a Rising Industry 44 7 New Container Ship Ready to Go 30:28 Retrenchment and Economic Growth 44 17 Hainan's Door Keeps Open 31:6 China's Stock and Bond Market 44 20 China's Foreign Trade Strategy 31: 25 China Announces Foreign Debts for Seek Co-Operation in Nuclear Power 31: 30 the First Time 44 29 US Steel Service in Wuhan 31: 30 Private Businesses Need Protection 45 7 Foreign Capital Growing in Yantai 31: 30 Facts & Figures: China's Capital Goods Rectify Foreign Trade System 33: 7 Market 46 26 Joint Venture Proposals 33 :29 IV Issue Issue Issue Issue No No No No

Export of Electrical Goods 33 29 in China: The Legal Basis & the Ma• Licence Control on Medicine 33 30 jor Methods 41 :35 Nanjing Adds 17 Joint Ventures 33 30 Eight Exhibitions to Be Held as Sched• Plastic Products Success 33 31 uled 41 :45 Hong Kong Wins Cassava Case 33 31 Co-Operative Exploration in China 41 :45 American Lease Tianjin Land 34 4 Fujian Expands Tea Export 41 :45 Notes on a Trip to Shenzhen (I): Fruit China Aids Cairo Conference Centre 41 :45 of the Open Policy 34 11 Tin-Technology Surprises World 41 :46 Foreign Investment in Qinhuangdao China's Foreign Trade Policy 42 9 Growing 34 22 Export Target for Chinese Products 42 30 Italy Wins Bid in Tyre Item 34 22 A US Bus Factory in China 42 30 Foreign Exchange to Be Co-Ordinated 34 22 CGG in China 42 30 Import Goods See Licensing 34 23 Yunnan Cigarettes Are Oversea Win• Notes on a Trip to Shenzhen (II): Pro• ners 42 30 gress and Problems in Attracting Pingdingshan Seeking Co-Operation 42 31 Foreign Capital 35 23 The History of the MGM Project 43 29 An Introduction to Shenzhen SEZ 35 24 Foreign Trade Increase in Dalian 44 24 Foreign Trade Rose to US$9.59 Bn in BTU Service Centre in Beijing 44 30 July 35 30 4 Foreign Trade Companies Dissolved 44 30 Xiamen's Booming Land Market 35 30 Symposium on Cambating Unfair Com• Anti-VD Shampoo Hits Market 35 31 petition 44 31 Joint Venture Proposals 35 31 Products for Foreign Markets 44 31 Notes on a Trip to Shenzhen (III): Es• Decade of Successful Foreign Invest• tablishing an Export-Oriented Econ• ment 45 14 omy 36 25 Putian: A Good Partner for Economic Bicycle Production Line Imported 36 28 Co-Operation 45 23 Joint Venture Proposals 36 28 Foreign Investment Up 46 29 Notes on a Trip to Shenzhen (IV): A US Enterprise in Chongqing 46 30 A Glimpse of the Science & Technology A Worldwide Symposium 46 30 Industrial Park 37 23 More Patent Applications by Foreign Open Roads With Foreign Fund 37 27 Businessmen 46 30 Chinese Ships Sail to the US 37 27 Investment Turns Profit 46 31 Hebei Sees Trade Success in Hamburg 37 28 Sino-British Co-Operation in Shipbuild• Sino-Romanian Line-Up in Know-How 37 28 ing 46 31 China Plans Export Improvements 37 28 Co-Operation With Philips 46 31 Great Leap in Sino-Soviet Trade 37 29 Two Open Areas in Yunnan Province 47 35 Expanded H-Acid Exports 37 29 Foreigners Not Allowed to Buy Goods Joint Venture in Capsule Project 37 29 for Export 47 42 Dalian Plans Big New Free Port 38 28 Foreign Investment Used to Develop Paid Transfer of Land-Use Right in Shenfu Coalfield 47 42 Fujian 38 28 Ericsson Develops China Market 47 42 ADB Loan Flows to Shanghai 38 28 A New Coca Cola Bottling Factory 47 43 Exhibition of Foreign-Funded Enter• Tangshan Updated With Foreign prises' Achievements 38 29 Equipment 47 43 New York City Pizza Corp. in China 38 29 China Vows Quality Coal for Japan 48 28 Joint Offshore Oil Development 39 31 China Helps Foreign-Funded Enter• Exhibition Site Attracts US Investor 39 31 prises 48 28 China & Brazil to Produce Satellite 39 31 New Co-Operative Projects in Tianjin 48 28 China's Foreign Trade in Past 40 Years 40 10 Lockheed Expands Co-operation With Rural Enterprises' Exports Increase 40 47 China 48 29 Overview on Resolution of Economic Export of Confucian Family Liquor In• Disputes Involving Foreign Interests creased 48 29 V Issue Issue Issue Issue No No No No

Co-Operativprises e Programme for Enter• 49:30 and Romance 28 :32 High-Tech Products of Syntone Group 49:30 Jiang Kun: China's Star of Laughter 29 :28 Thriving Economy and Trade in Suzh- Deepemng Our Understanding of 'Silk ou 49:31 Road' Music 31 :32 Qingdao: An Open City 50:25 Dance Drama Reflects Local Life 31 :32 Investment Association Founded in Chen Xueqing, a Promising Cellist 33 :32 Beijing 50:30 What Does 'The River Dies Young' Ad• Shanghai Squibb's Bright Future 50: 30 vocate? 34 18 Co-Operation to Develop Rock Salt 50: 31 People's Daily Editor's Note 34 19 Bright Prospects in Agriculture With New Film an Epic of China's Revolu• Use of Foreign Funds 51:26 tionary War 34 24 UN Co-Operation With China 51:26 Guan Excels in Peking Opera 34 25 Share Purchase in Chilean Fish Co. 51: 26 Drama Exposes Feudal Traits 35 33 New Computers on the Warld Market 51:26 Chinese Artist Gets UNESCO Prize 37 33 Neste to Expand Ties With China 51:27 Actor of All Seasons 38 33 New Toys Move Abroad 51:27 Second China Art Festival Opens 39 7 A Big Go in the Use of Foreign Funds 51:28 Stage Psyche of a Small Potato 39 32 Shenzhen: a Decade of Robust Growth 52:10 Literature Is From Life and More Than Law on JV to Be Revised 52: 36 Life 40 41 Co-Operation Focus in Shandong 52: 36 The Second China Art Festival: A CCPIT Planning for 1990 Exhibitions 52:36 Hundred Flowers Will Go on Blos• AEG Aiming at Future 52: 37 soming 40 42 Australopithecus Skull Discovered 52: 38 Listing of Some Programmes and Per• forming Groups 40 44 8) Economic Reform Chinese Ballet Stars Win Awards in Shoudu Iron and Steel Co. (I): A Mo• Moscow 40 48 del in the Reform of State-Run En• 'Bai Shuxiang—a Ballet Star' 41 29 terprises 50:15 Award-Winning Works on Show in Bei• Shoudu Iron and Steel Co. (II): Con• jing 41 49 tract System Stimulates Enterprises 50:19 Discard the Dross, Make Literature and Shoudu Iron and Steel Co. (Ill):-Lead• Art Prosper 42 4 ership Established Through a Demo• Mongolian Acrobatic Troupe Performs cratic System 51:22 in China 42 33 Shoudu Iron & Steel Co. (IV): Innova• Minority Artists Dazzle Beijing 45 32 tive Wage System 52:21 Museum Features Shangzhai Culture 45 34 9) Bolshoi Captivates Dance Lovers 46 32 Environmental Protection Innovation in Chinese Opera 46 33 Giant Panda's Origin Discovered 50:28 China's Film Industry Based on Real• 10) 0tliers ism 47 48 Smuggling Developed to a Fine Art 33 :23 Confucian Culture Festival 47 49 State Fines Major Firms 35 : 5 Successors to the Qi School 48 33 Prizes Awarded Defence Articles 48 34 3. Culture One-Man Comedy Captivates Beijing Audience 49 33 1) General Bulgarian Pantomime Troupe in China 49 34 A Kingdom of Brown-Eared Pheasants 29 : 29 Artist Combines Styles of East and Current Economic Policy Pays Off 37: 5 West 50 32 Financial Strain Analysed 37 : 6 Farmer Painter—Peng Deyin 50 33 The World's Longest Woodcut 51 34 2) Art and Literature The 2nd International Wuqiao Acro• Butterfly Stories Focused on History batics Festival 52 38 VI Issue Issue Issue Issue No No No No

3) Education Boxing Gets 'Computer Judges' 37:32 Facts & Figures: Education in Present Athletic Talent Seen at Second Nation• Day China 29:21 al Games 43:33 Policy on Sending Students Abroad China in International Sports 52:23 Unchanged 32: 6 Meditation After the Disturbance 32: 23 7) Archae6logy and Culture Relics Early Start for Beijing Students 34: 5 Remains of Peking Man Suggest A Word to Students 36: 8 Chinese Origins 27:32 Training Qualified Personnel for So• East-West Exchanges in Ceramics 27 : 33 cialism 41:27 Archaeological Progress in Sichuan 27: 34 Fresh Term for the Freshmen - 44: 5 Sacrificial Horse Pit Opens in Shan• Campuses After Disturbance 46:19 dong 29:29 Students' Living Expenses Increase 47:44 Tombs Have Stories to Tell 30: 32 University With No Campus 49: 32 Bone International Reveals Western Heads of University Write to US Coun• Han Dynasty 33: 34 terparts 50: 7 Influence of Confucianism Abroad 36: 32 Ancient 'Rpck-Porn' Found in Ningxia 39: 33 Marxism-Leninism Studies Renewed on Scientists Disscuss 'Peking Man' 46: 9 Campus 50: 8 Eighteen-Month Yi Solar Calender Dis• Fund to Help Poor Dropouts 50: 8 covered 49:33 New Archaeological Discoveries 51: 33 4) Science and Technology Law-Temp Nuclear Heart on Horizon 35: 32 8) Books Non-Government Scientific Units 'Selected Works of Deng Xiaoping' Ready to Expand 37:31 Published 38:26 Science Influences the Weather 39: 32 Ancient Mongolian Oral Epic Pub• 'My Dream Comes True' 40: 37 lished 40:49 Complete Chinese Character Computer 'China Today: Aviation Industry' 41:47 System Passed Appraisal 40:48 'Past and Future' 41:47 China's Fruitful Scientific and Tech• 'Military Affairs Encyclopedia of nological Progress 43:14 China' 41:47 Large Pictorial Albums of Contempor• 5) Medicine and Health ary China 48:30 Doctors Work for Disabled 32:10 Herbs Make Male Pill 34:26 An Introduction to 'China's Tibet' 50:27 VD Babies Pock Future 35: 8 9) Others Beijing Steps Up AIDS Check 46: 9 Music Industry Suffers Setback 29:29 Anti-Cancer Work in Progress 48:19 Taihu Stone Best for Classic Chinese Two Chinese Tumour Experts 48 :23 Gardens 32:32 China's Largest Tumour Research and Chinese Cuhural Centre in US 32: 34 Treatment Centre 48 : 25 Confucius Gets 2,540th Birthday Hon• Computer in Chinese Medicine Thera• ours 36:31 py " 48:32 Terracotta Site Goes Public 36: 31 The Story of Yunnan Baiyao 51:31 Sage's Birthday to Be Celebrated 36: 32 Combating Snail Fever in South China 52: 6 Scientist Wins Top Honour 38: 32 China Would Not Be Strong Without Sea Stones Hit Art World 38:32 the CPC 52:40 Publications Will Be Streamlined 40: 8 China's Biggest Dam in Focus 40:50 6) Sports Dragon Palace Has Extra Dimensions Revving Compatriots Cross China 28 : 33 of Interest 41:48 Asian Games on Schedule 32: 34 Tea and Chinese Culture Exhibition 42: 32 Magic Qigong Fights Cancer 33: 32 Folk Arts of Inner Mongolia and Gan- China Boxing into World Level 37:32 SU 43:32 VII Issue Issue Issue Issue No No No No

TV Serial Reflects Minority Life 43 33 9) Religion Beijing Hosts China's First Film Festi• Government Functionary Discusses Re• val 44 32 ligion 33:18 Magazine News 10 Top Film Stars 44 33 Religion in China 33:22 'Jiaozi,' China's Dumplings 50 32 Confucianism: Still a Subject of In• 10) Others terest 51 17 Deaths Spiral as Floods Hit 30: 7 Books for Prisoners 51 29 Yantai Mayor Yu Zhengsheng 33:27 'Thunderstorm' Recaptures Beijing Au• Early Marriage in Shandong 36: 30 dience 52 39 Changing Jobs Becomes a Fashion 41:43 Looking After His Constituency 42:24 4. Social Earthquakes Hit North China 45: 9 1) General Moonlighting Craze Hits China 45:21 Support Project for Poor Area Succeeds 'Opening Broadens My Horizon' 41 25 46: 8. 2) Trade Union Impact of Global Warming 47:44 Trade Unions: Strengthen Labour Pro• More Seek Divorces 50:28 tection 29 23 Leading Role of Working Class Reaf• firmed 32 7 II. International 3) Youth 1) General Implementation of UN Beijing Rules: Spokesman on Current Situation 27:11 Juvenile Delinquency 32 20 NATO Safeguards Unity With SNF 4) Senior Citizens Compromise 28:10 Anti-China Clamour Cannot Intimi• Living Standards of the Retired Fall 33 28 date Chinese People 29:14 China's Model Workers Honoured 42 5 China Diplomats Meet in Beijing 30: 4 5) Women China's Internal Affairs Brook No In• Women Talk About Gifts 31 29 terference 31:10 Women in the Tide of Reform 36 30 Rival Visits Highlight East-West Con• Women's Association for Banning tention 31:11 Gambling 41 43 'Dual Recognition' Will Get Nowhere 33:10 New Measures Battle Nepotism 34: 4 6) Children US Differs With West Germany on Ma• Stop Sex Checks of Fetuses 28 8 jor Defence Issues 34: 8 Money and Children 35 28 Multi-Polar Tendency in the World Survey Finds Kids Healthier, Happier 52 7 Economy 35 :11 7) Disabled Non-Aligned Movement Aims at Mod• Handicapped Better Their Lives 51 30 ernization 36:11 Summit Agreement Promotes Peace 8) Population and Life Process 36:14 Cities Clamp Down on Water 35 7 Foreign Minister Qian Assesses World China's Population Still Faces Yellow Situation 37: 8 Light 44: 6 The International Climate and the June China's Population Policy Is Proving to Rebellion 37: 9 Be Effective 45 30 Rumours and the Truth 37:16 Calculating China's 1.1 Billion Popula• The Development of Comecon and Its tion 50 29 Prospects 38:10 4th National Census to Get The Non-Aligned Movem^ent at a Turn• Under Way 52: 4 ing Point 39: 4 VIII Issue Issue Issue Issue No No No No

New China's Diplomacy: 40 Years On 39:: 11 puchean Issue 45:: 5 Deng on Handling International Rela• China Hopes to Further Co-operate tions 40:: 5 With ADB 45: 8 Adhering to the Norms in State-to-State Li Peng Tours Three South Asian Na• Relations 41:: 4 tions 47:: 4 Current International Situation and Chinese President's Visits to Four Arab Sino-US Relations 41:: 7 Nations 52:: 4 China's Five Steps to Peace in Middle East 42:: 6 India Nobel Peace Prize to Dalai Lama Criti• Chinese Leader Meets Indian Guests 29: 7 cized 42:; 8 Will Nepal-India Relations Improve? 30: 11 The West's Peaceful Evolution Exam• India Increases Food Production 33: 11 ined 43:: 9 China and India for a New Internation• 'Dual Recognition' Not Acceptable 43:; 10 al Order 44:: 4 Questions of Interest About China 44:: 8 India: Developing Economic Diploma• Symposium on Combating Unfair cy for the 1990s 47: 13 Competition 44:;3 1 Opposing Interference in Other Coun• Indonesia tries' Internal Affairs Through Hu• Sino-Indonesia Talks Make Headway 51:; 7 man Rights 45::1 0 Roadblocks to Middle East Peace Pro• Japan cess 46:;1 0 Money Politics Produces Recruit Scan• China Sticks to 'One China's Policy' 46: 11 dal 30: 12 A Challenge for Commonwealth 46:: 12 LDP's Domination Ends With Poll Cut in Conventional Arms Hopeful in Losses 33: 12 Europe 47:: 9 Namibia: A Key Step Towards Inde• Kampuchea pendence 48: 11 Kampuchean Settlement Sees Good Be• The Deplorable Actions of the Nobel ginning 34: 7 Committee 49:: 4 US Adjusts Policy on Kampuchea 50: 12 UN Calls for Vietnamese Withdrawal From Kampuchea 49:: 12 Korea Debt Haunts Western World 50:: 14 Kim II Sung Visit China 48: 8 A Mockery to Nobel Peace Prize 51:: 5 Superpower Relations Enter New Stage 51 :: 9 Laos A Brutal Nobel Peace Prize Winner 51: 10 Laotian Leader Visits China 42: 7 The 1980s in Retrospect 51: 11 ASEAN Countries: Adjusting Foreign Mongolia Policies 52: 16 Mongolian Acrobatic Troupe Performs China in International Sports 52: 23 in China 42: 33 Nepal 2. China and the United Nations 30: 11 Will Nepal-India Relations Improve? Co-operation Centre in Beijing 50::3 0 Pakistan Visit Promotes Bilateral Relations 32: 14 3. China's Foreign Relation, Countreis and Regions South Korea Political Crisis in South Korea 44: 10 Li Wraps Up South Asian Tour 48: 6 Turkey 1)Asia China, Thailand Share Views on Kam- The Economic Revitalization of Turkey 43: 11 IX Issue Issue Issue Issue No No No No

Viet Nam China Protests US Congress Bill 48: 7 NPC, CPPCC Protest Against US Sanc• Viet Nam's 'Final Withdrawal' a Hoax 42:12 tions 49: 5 2) Africa US Bill on Student Visas Censured 49: 7 Chinese Foreign Minister Tours Africa 35: 10 Heads of Universities Write to US First Foreign Head Visits Since June 38: 5 Counterparts 50: 7 New Developments in Southern Africa 38:12 A Move to Poison Sino-US Ties 50: 9 Sino-Liberian Ties Cut 43: 5 Chinese Leaders and Deng Meet US Qian on Sino-African Ties 49:10 Envoy 51: 4 Chinese President's Visit to Four Arab US Move Imperils Student Exchange 51: 7 Nations 52: 4 International 'White-Coat Soldier' Hon• oured 51: 8 Nigeria Scowcroft's Visit Seen as 'Constructive' 52: 5 Economic Reform Boosts Nigeria's 5) Europe Economy 30:10 Barter Trade Protocols Signed 32:31 Implementing the Policy of 'One Coiin- Tanzania try. Two System' 52:12 Chinese Leaders Meet Nyerere 49: 6 Britain Thatcher Reshuffles Cabinet for New Egypt Image 33:13 Egypt, Libya Improve Relations 47:12 Election Fever Begins in Britain 45:12 3) Latin America Latin America Explores New Economic Czechoslovakia Paths 32:11 El Salvador and Central American Co-operation With Czechoslovakia 32:31 Peace 48: 9 German Democratic Republic GDR: Stable and Permanent Economic Panama Growth 31:14 Panamanian PoUtical Crisis deepens 38 :13 Federal Republic Germany Federal Germany's Policy Towards the Belize East 29:10 China Suspends Ties With Belize 45: 7 France Grenada China Protests France's Support for Fugitives 40: 4 China Suspends Diplomatic Relations French Interference Protested 40: 7 With Grenada 33: 7 French Reporter's Fabrication Refuted 41: 6 Where the French Government Wants Mexico to Lead Sino-French Relations 41: 9 Yuan Mu on France's Recent Attitude 45:13 Mexico Benefits From Debt Accord 36:13 Soviet Union 4) North America Moscow Tries Out Democracy 28: 12 The United States Researchers Urge Co-operative Plan Li Peng Meets American Doctor 28 With USSR 30:30 China Rejects US Protest 29 Sino-Soviet Further Co-operation 39: 6 US Congress'Bill Refuted 31:6 Bush, Gorbachev to Meet in December 47:11 Chinese Cultural Centre in US 32:34 Egypt, Libya Improve Relations 47:12 Current International Situation and Sino-US Relations 41: 7 X US Must Take Steps, to Patch Up Sino- BushUS, GorbacheRift v to' Meet in December 47:146: 51 of such acts, there are explicit tee and governor of Hainan Rongji, mayor of Shanghai Mun• stipulations on the standards of Province, was found to have icipality, gave clear instructions disciplinary sanctions according committed the serious mistake of to the Bureau of Supervision that to the amount of misappropria• abusing his power for personal they should keep a good watch tion and seriousness of one's gain. As a result, the CPC Cen• on the 506 leading cadres at or case. tral Committee and the State above the bureau level. "Anyone Council decided to dismiss him discovered to be guilty of violat• Investigation of from all his posts inside and out• ing the law and discipline should side the Party. At the announce• be investigated and dealt with Major Cases ment by the Ministry of Supervi• immediately." Liu Fuzhi, presi• Investigating major cases is sion, the spokesman said Liang dent of the Supreme People's presently a matter of great con• Xiang was an old comrade who Procuratorate, disclosed that be• cern to the people and is vital to had taken part in revolutionary tween January and September, the struggle agaisnt corruption. work since 1935 and in the past, 584 major cases of graft and bri• According to Feng Tiyun, vice- had done some useful work. Un• bery, each involving a sum of minister of supervision, since the der the new situation of reform over 10,000 yuan, or 22 percent beginning of this year, the Min• and opening up to the outside of the nation's total similar cases, istry of Supervision has listed world, however, he had aban• were placed on file for investiga• more than 20 major cases, some doned the Party's fine tradition tion and prosecution by supervi• of which have involved leading of wholehearted service to the sory institutions. Of these cases, cadres at the ministerial and people and hard work and sup• 25 involved cadres at the depart• provincial level. The Ministry of ported and connived with the Supervision is stepping up its ef• law-breaking activities of his mental and bureau level. fort to investigate these cases, wife and son. He committed the some of which will be dealt with serious mistake of abusing his Leniency and Severity by the end of the year. power for personal ends and vio• After the publication of the Tuohuti Shabir, vice-chairman lating financial discipline by Circular of the Supreme People's of the Xinjiang Uygur Autonom• having his whole family benefit Court and the Supreme People's ous Region, taking advantage of from his official status. His ac• Procuratorate, the broad masses his power and function, support• tions damaged both the image of people came foreward to re• ed illegal sales and took bribes of the Party and government port offences to the authorities, worth more than 16,000 yuan. In among the people and the repu• some criminals surrendered accordance with the established tation of reform and opening. themselves and some other cri• facts, submitted by the Ministry Liang Xiang was the first gov• minals stood back and closely of Supervision, the State Council ernor to be directly investigated watched developments. Regard• decided to remove him from his by the Ministry of Supervision. ing thjs, the law departments and office. His case was referred to Because the CPC Central Com• all levels of government have judicial organizations for further mittee and the State Council time and again declared that an• action. have repeatedly stressed the need yone guilty of graft, bribery and He Yong, vice-minister of su• to investigate and deal with ma• speculation, who refuse to sur• pervision, referred to this casg^ jor and important cases, such render himself or herself and when he said it was the first ser• acts of corruption on the part of who stubbornly resists and des• ious case of infraction involving senior cadres are attracting the troys evidence will be severely a high-ranking government offi• special attention of supervisory punished according to the law; cial to be directly handled by the organizations and' the masses. those who, within the time lim• Ministry of Supervision since its Luo Gan, secretary-general of it specified in the circular pub• establishment. The case was han• the State Council, said, "We are lished by the Supreme People's dled after half a year of investi• taking concrete actions this time Court and the Supreme People's gation conducted on the basis of to deal with the phenomenon of Procuratorate, surrender them• the reports given by the masses corruption. No matter how many selves, give up ill-gotten gains and supported by the Party com• people are involved in criminal and perform meritorious deeds mittee and government of the cases, no matter who they are, by reporting other criminals will Xinjiang Uygur Autonomous punishment will be meted out, be given lenient treatment and Region. no matter how many people an opportunity to turn over a Two weeks after Shabir's case are involved in infraction, new leaf. was exposed, Liang Xiang, depu• they will be dealt with and their Gui Guangqing, former direc• ty secretary of the Party commit• actions never be tolerated." Zhu tor of the Wuhan Metallurgical

22 BEIJING REVIEW, DECEMBER 25-31, 1989 Research Institute, in the misuse ed in October 1988, however. In a series of meetings to publicly of his post, trafficked in state June 1989, the Guiyang Interme• announce the sentences and sev• planned supply materials, taking diate People's Court sentenced ere punishment regarding those bribes in the amount of 403,000 the two criminals to death and who commit serious crimes but yuan. In November 1988, he vol• divested them of their political refuse to show repentance; They untarily surrendered himself rights for life for graft and ille• to the supervisory institution, have also announced the lenient truthfully confessed his crimes gally crossing the border. They treatment of those who surrender and returned all the ill-gotten refused to accept the decision themselves to the judicial insti• gains. According to the nature of and lodged an appeal to the high• tution even though .they had as Gui's crime, he should have been er court. The Guizhou Provin• well committed particularly ser• sentenced to death, but in view cial Higher People's Court ren• ious crimes. The meetings were of the fact that he voluntarily dered their decision in July 1989, intended to clearly publicize the surrendered and gave up his ill- rejecting the appeal and main• state law and urge criminals to gotten gain, the Wuhan Interme• taining the original sentence. It quickly surrender themselves. . diate Court sentenced him to life then sent the decision onto the The current crackdown on eco• imprisonment and divested him Supreme People's Court for re• nomic criminals is aimed at of his pohtical right for life in view. On August 24, the Judicial accordance with the provisions Committee of the Supreme Peo• greatly reducing the acts of cor• of the criminal law and the cir• ple's Court expressed the opinion ruption and bribery and at im• cular of the Supreme People's that since the defendants had proving the Party's style of Court and the Supreme People's embezzled a huge sum of public work and social morals. This, of Procuratorate. Gui refused to ac• funds, 140,000 yuan, and abs• course, is a long-term task. Al• cept the ruling and filed an ap• conded after committing the though the CPC Central Com• peal with the higher court. The crime, their cases were parti• mittee and the government are Hubei Provincial Higher Peo• cularly serious and therefore determined to carry the strug• ple's Court, after hearing the should be severely punished. It gle against economic crimes case, was of the opinion that it approved the death sentence of throught to the end, there is still was correct to give a light sent• Deng Anwei and Song Shunwen. a long way to go before the soil ence in this case. In view of the In the past few months, many which breeds corruption can be defendant's confession and his cleansed. D surrender of ill-gotten gain and local law departments have held in the spirit of the government circular, however, he should be given a still lighter sentence. So, the court, on August 29, 1989, made a final decision on this China in Internationdl Sports case, commuting the life impri• sonment to 15 years and divest• During the 40 years of development since the founding of ing him of his poUtical right for the People's Republic of China, Chinese athletics is playing three years. an increasingly important role in the world sports In comparison, those who re• arena.—Ed. fused to show repentance were by Wei Jizhong strictly punished according to the law. Deng Anwei, chief ac• countant at the business office of hina is enjoying more and 10,000 yvorld competitions in• the Guiyang Branch of the Agri• more of the limelight in volving some 100,000 Chinese cultural Bank of China, worked Cinternational sports as a re• athletes. Moreover, 152 Chinese in collaboration with Song Shun- have held posts in more than 70 wen, an individual businessman, sult of its more competitive ath• international and Asian sports to embezzle a total of 143,000 letes and improved internation• organizations. Of particular yuan's worth of public funds be• al status. Since its founding in note. He Zhenliang, vice- tween November 1986 to March 1949, New China has had sports minister of the State Physical 1987. Two criminals, fearing that contacts with 167 countries and Culture and Sports Commission their crimes would be exposed, regions and participated in over of China, was elected vice- illegally crossed the national bor• The author is the secretary-general of president of the International der and fled. They were extradit• the Chinese Olympic Committee. Olympic Committee, and six

BEIJING REVIEW, DECEMBER 25-31, 1989 23 Chinese sports workers were however, China managed to send During the chaotic "cultur• awarded Olympic recognition its first athletic delegation to the al revolution"( 1967-76), China's medals for their outstanding con• 15th Olympic Games held in sports suffered many setbacks in tribution to the promotion of Helsinki, Finland. Chinese swim• terms of foreign participation. Chinese sports in the world ar• mer Wu Jianyu took part in the However, on instructions from ena. trial heats for the 100-metre Mao Zedong and Zhou Enlai, China hosted • an increasing backstroke. This first appearance American table-tennis players number of international compe• by the People's Republic at the were invited to China in 1971, titions, four in 1986, six in 1987, Olympics proclaimed that the signaling the start of Sino- 16 in 1988 and 20 during the first days of China as "the sick man of American relations. Soon after ten months of 1989. In addition, East Asia" were over. this, China hosted the Asian the nation's aid to foreign coun• In 1958, after the manipula• Table-Tennis Invitational Tour• tries and its foreign technical co• tions of a very small number of nament. It later hosted the First operation has also continuously people, the IOC adopted a farc• Asian Table Tennis Champion• expanded. During the 40 years, ical policy of "one China, one ships in 1972 and the Asian, Af• China has built 42 sports facili• Taiwan.' China was thereby rican and Latin American Table ties for 22 countries, carried out forced to withdraw from the IOC Tennis Invitational Tournament technical co-operations with 20 and other international sports in 1973, in a further promo• countries and, in nearly 500 federations. From that time on, tion of the nation's internation• coaching sessions, dispatched the Chinese people strove to re• al sports exchanges. workers overseas. gain its legitimate seat in world With the restoration of China's sports. In 1963, 2404 athletes legitimate seat in the United Na• In the World Arena from 48 countries of Asia, Afri• tions by the 26th UN General ca, Latin America and Europe Assembly in 1971, the interna• China's sports have stepped took part in the New Force tional sports organizations ap• out of Asia and become a force Games held in Indonesia. China pealed one after another for the to be reckoned with on the world sent a full-fledged delegation to restoration of China's legitimate sports scene. it. The successes achieved at the place in international sports. In When the People's Republic games greatly inspired develop• November 1979, the IOC's reso• was first founded, some people in ing countries. They proved that lution to include China in the international sports field, refus• developing countries had the ca• Olympic family evoked a strong ing to accept New China, left show of support among the world pacity to fully participate in in• sports circles. The then current no stone unturned to thwart the ternational events and that the IOC vice-president commented country's participation in the monopoly of a few nations was that it's a grand occasion in Olympics. On July 29, 1952, gone forever. world sports to see the one billion The Chinese women's voiieyball team enters the Yoyogi National Gymnasium in downtown Tokyo at the opening ceremony of the Fifth World Cup Women's strong Chinese nation send their Volleyball Tournament on November 6, 1989. LAN HONGGUANG athletes to the Olympics. Since then, China has expand• ed its sports ties beyond Eastern Europe, Asia, Africa and Latin- America to the whole world. Soon after its reappearance in• ternationally, China caught the world's attention by its strong showing. In 1981, China sent 1,151 athletes to 55 international sports competitions at which it won 25 gold medals, broke eight and equaled three world records. At the New Delhi Asian Games held in 1982, the nation led the tally in overall medals and at the 1984 Los Angeles Olympics, China made a historical break• through by bringing home 15 golds. China had entered the

BEIJING REVIEW, DECEMBER 25-31, 1989 CHINA

its quelling of cess. the counter• The guiding principle for Chi• revolutionary re• na's future participation in in• bellion was boycot• ternational sporting events is to ted or cancelled. maintain a continuous and ener• This is because of getic schedule and to retain its China's prestige, independence in all international the high compe• sports organizations, depending titiveness of the neither on any power clique nor Chinese athletes on hegemonism. China will pro• and the friendship ceed from the basic interests of China has esta• the majority of countries and for blished with for• the interest of the development eign sports circles of world sports. It will handle all international sports affairs ac• over the past four cording to the principle of fair• decades. ness and in the spirit of seeking Chinese weightllfter Ma Na brolte two world records in On September truth from facts. the 60 kilogram category with her 87.5 kilogram snatch and 115 kilogram clean and jerk at the Third Women's 21, 1989, represen• The 1990 Beijing Asian Games Weightlifting Championship in London on November 25, tatives from more will both test and promote the 1989. XURUYUAN than 30 countries nation's sports capacity and has world sports arena in an all- attended the Beijing invitation fueled much speculation about round way. Commenting on Chi• ceremony for the 1990 Asian China's hosting the 2000 Olym• na's position in world sports, Games. An executive member of pics. This is the hope of all those Juan Antonio Samaranfch, the involved in Chinese sports. To the Asian Olympic Committee IOC president, stated that China this end, the nation will make is now a powerful, international• said that with the support of every effort to create conditions ly respected sports nation. so many friends, China's Asian favourable for hosting the 2000 Games will certainly be a sue- Olympics in Beijing. • Confidence in Future After China's quelling of the Beijing counter-revolutionary re• SHOUDU IRON & STEEL CO. (4) bellion in June 1989, certain countries in the West imposed economic sanctions upon China. Innovative Wage System Most of its foreign friends in sports circles, however, still by Our Staff Reporter Zhang Zhiping maintain cordial relations with China. For instance, when offi• cials of the Sports Aviation Asso• hen the Shoudu Iron and quently, workers with the same ciation of China went to a meet• Steel Co. (SISC) changed work experience are now found ing in Paris in mid-June, some W its traditional egalitarian to have different incomes. Some• foreign representatives attending distribution method, it linked its times, much different. Li Lian- said that the presence of the total payroll, bonuses and wage hui, 28 years old, is one example. Chinese delegation at the meet• payment with fulfilment of con• He is a monitor of a steel roll• ing indicates the current stability tracted tasks, and thus stimulat• ing group in a small-sized roll• of China. When China sent its ed the enthusiasm of a great ing mill under the SISC. He en• young women softball team to number of workers and staff to tered the mill in 1984, and now Canada in late summer of 1989, increase both the enterprise's is an eighth-grade worker with a foreign friends commented that production and their own in• monthly income, plus bonus• China's participation in the com• come. es, of about 350 yuan. Niu petition on schedule shows that Through reform of the wage Zhengqiang, 33 years old, on the its policy of opening to the out• system, the egalitarian bias of other hand, entered the mill in side world remained unchanged. the company was corrected and a 1975, and is now a fifth-grade None of the international com• rational gap in the distribution worker with a total monthly in• petitions held in Beijing during of income introduced. Conse- come, plus bonuses, of 270 yuan.

BEIJING REVIEW, DECEMBER 25-31, 1989 25 pany's general economic per• formances, is a good example of the principle of to each accord• ing to his work. Under the public ownership of the means of prod• uction, every product is a result of co-operative work in the en• terprise, the positive results of which are embodied in the enter• prise's economic performances. By linking the remuneration of workers with each enterprise's economic performance, the prin• ciple of "to each according to his work" is genuinely implemented and a fair and reasonable distri• bution of social wealth is real• ized. The contribution made by each unit and each worker to the Zhou Guanwu (second left) visiting workrs in a strip steel mill. SONG YILIN company's overall economic re• When explaining the reasons for of workers were unified and sti• turns is gauged by how well their this difference in income, Li said pulated by the state, when, to contracted tasks (including out• that it was the result of the prin• what extent and to whom in• put, quality, variety and depre• ciple of to each according to his creases were given were decisions ciation-costs of materials, etc.) work and that everyone's pay• made by the state alone. When are fulfilled. With the fulfilment ment was dependent on how determining wages, seniority was of these contracted tasks, the much they put into his work. The the overriding factor. The sys• company's performance im• result, he said, was a difference tem, also known as the one where proves and workers' income goes in earnings. "everybody eats from the same up. Otherwise, the opposite oc• Zhou Guanwu, chairman of big pot,' had no clear and defin• curs. the SISC's board of directors, ite system of reward and disin• In the company, every 1 per• said that under the commodity centives, and so disagreements cent increase in profits means a economy of the pubhc owner• would arise whenever there was 0.8 percent rise in the payroll. ship, how to best carry out the a chance of wage increase. The Because real annual profits have principle of to each according to subsequent grudges always fos• increased at an average rate of 20 his work is a difficuh problem tered a grievance against the gov• percent, the total payroll should that remains unresolved in the ernment. increase by 16 percent over the real world of socialist countries. Since the implementation of base figure of the previous year. The Shoudu Iron and Steel Co., the contract system in the SISC, This increased payroll is deter• however, through its practice of the principle of more pay for mined by the following distribu• the contract system, has made a more work has been fully put tion methods: breakthrough in this area. into practice and the workers' Step Wages. After an enter• enthusiasm has soared. One de• prise fulfils its general efficiency Wage Payments monstrable result is that, over target for the year, there is a the past ten years, the company's proportionate increase in salaries Tied to Work profits have increased at an aver• for all the workers who have ful• The principle of to each ac• age rate of 20 percent annually. filled their contracted tasks, an cording to his work is a basic In 1988, it handed over to the increase based on each person's feature of socialist society. How• state 1.124 billion yuan in prof• original wage and made, more or ever, under the old wage system it and taxes, while the average less, according to contributions. which separated the amount of monthly income of workers and The largest increase can be as payment from the quantity or staff hit 208 yuan, or three times high as 20 percent and the smal• quality of labour, an increase in as much as that of 1987. lest only 1 percent. The company workers' income had no relation Zhou Guanwu thinks this kind continues this procedure in the to the economic performance of of distribution, which links ev• year following fulfilment of its the enterprise. Because the wages erybody's income with the com• task and will again increase the

26 BEIJING REVIEW, DECEMBER 25-31, 1989 workers' salaries based on the and jobs. People who just com• with a monthly wage of 162 previous year's wage level. This plete their monthly contracted yuan. He now gets a total 254 continues every year as long as a tasks can only obtain the base yuan each month together with given task is completed. figure of their bonuses; those the addition step wage. "Since Floating Wage. Every year who overfulfil their tasks are giv• the reform in the wage system," when economic performances en proportionate bonuses; and he said, "people around me all are on target, the floating wage is those who fail to fulfil their tasks started to care for the operation given to 30 percent of the work• are given a reduction in the base of the collective. Several years ers after their technical skills are figure of their bonuses. ago, there was no difference be• examined and evaluated. Those The make-up of the company's tween working well and working who fail to reach the necessary wage distribution method thus badly. Some people looked long level of technical standards are includes the base job wage, step sick leaves on the excuse of mi• not given the floating wage. For wage, floating wage and bonus. nor illnesses, but still' got full those who have done well, their wages. Because we could not wages can be increased annually, make any change in wages, we even twice a year. There's no lim• Competition on an felt that the interest of the en• it to the technical grade to which Equal Basis terprise had no relation to our a worker can advance nor on the The distribution method prov• work. Along with others, I had amount of salary one can earn. ides everybody in the company no enthusiasm for work. Now If, for example, the steel- with a fair competitive chance to things have changed greatly. Ev• smelting workers reach the last advance. It spurs enthusiasm be• eryone is anxious for improve• level of their branch of work, cause nobody wants to lag be• ment because we all know we can they can transfer to other hind. make a change by our own ef• branches, say, as a technician or Gou Lianshan, a maintenance fort. Take my group for exam• engineer, and thereby advance worker at the soaking pit of the ple. There are fewer people tak• their grades and earn higher blooming mill, is now 38. In ing sick leave now than before. wages. 1975, when he left the army, he Now, almost 80 percent of all Issuance of Monthly Bonuses. was a 2nd-grade worker with a workers take no leave. This is Bonuses are issued on the basis monthly wage of 41.54 yuan. a result of the new distribution of the monthly fulfilment of con• Eight years later, he rose to the method." tracted tasks by every unit and 5th-grade and earned 70 yuan Fang Jida, an older worker, person, and are scaled according each month. From 1985, he adv• came to the company in 1959 to the importance, complexity of anced one grade each year until and now works at the steel pipe technology and profession, work he reached the 8th-grade in 1988. welding workshop of a medium- environment and intensity of la• Transferred to a monitor's job, sized rolling mill. He had been a bour " in different departments he was promoted to the 9th-grade 6th-grade worker until 1978 with a monthly wage of 75.56 yuan. After the reform, he was unwill• ing to lag behind others simply because of his age and devoted himself to mastering technologi• cal innovations. Now, his month• ly salary has risen to 264 yuan at the lOth-grade and he has been selected a model worker for many years. "If there had been no reform," he said, "it would have been impossible for me to become a lOth-grade worker and my family would not have re• ceived such benefits." He has two sons and one daughter, all of whom have jobs. The monthly income of his family is now about 1,000 yuan. They have two colour TVs and two refriger• ators. When his elder son and

BEIJING REVIEW, DECEMBER 25-31, 1989 27 CHINA daughter were married, he spent anced more quick• 10,000 yuan for their furniture, ly both in position clothing and other expenses. and wage than In 1984, the SISC imported him. "I think the from West Germany Siemens people here have Co. a highly efficient, high-speed a spirit of creative 5,000 kw motor generator which daring," he said, made the work of the steel- "because the new rolling workers much easier. Its distribution system operation, however, was hard to makes us feel as grasp. Zhang Liyang, an operator one with the enter• of the blooming mill at that time, prise. In this way, applied himself to this machi• we stand with the nery together with his colleagues enterprise in times Tao Tao, a model worker, is awarded a two-room apart• and in the end mastered its oper• of need." ment for his exemplary performance at work. ation. Zhang graduated from the XUECHAO Secondary Technical School of Gauging Efficiency profit growing from 5,210 to 16,- the SISC in 1969. In 1984, Zhang 600 yuan. This means that one produced a record 60 billets per In 1988, the per-capita annual yuan increase in wage brings in hour, a large volume at the time. wage of SISC was 2,496 yuan, 43 6.4 yuan more in profit. That year, his wage was in• percent higher than the nation's In the past three years, most creased by two grades. He was average. However, compared of China's enterprises have later appointed deputy chief of with its profit, it made up only a switched to the contract system; the production section in the small portion of the company's simultaneously, the total volume blooming mill after passing qual• total earnings. The company's to• of wages has become linked with ification examinations. He told tal wage volume that year was economic efficiency. However, this reporter, however, that he 200 million yuan while its ac• different views regarding econo• had many classmates who adv- tual profit reached 1.614 billion mic efficiency have brought yuan, a ratio of about different results. Some en• Zhang Liyang at work. XUE CHAO 1:8. With the in• terprises link economic efficien• creasing ratio of cy with productivity, but, at the 0.8:1, profit will same time, productivity is count• grow this year by ed on the basis of output value 20 percent, a net which includes material cost. In increase of 322 this way, the higher cost of million yuan, and material indicates more wages the total wage vol• should be given, an unreason• ume will accord• able assumption. Some enterpris• ingly grow by 16 es base the economic efficiency on net output value. However, percent, a net in• the net production value in• crease of 32 mil• cludes, the total volume of wages lion yuan, making and so greater wage expenditures up a proportion indicate a growing net output of 1:10. With in• value, another unreasonable as• creased economic sumption. There are also some efficiency, the ra• enterprises who link their total tio between wages volume of wages with their prof• and profits will be• its and taxes turned over to the come increasingly state, the disadvantage of which smaller. Before lies in the state's ignorance of an 1978 when the con• enterprises earnings. So, after ex• tract system was tensive comparison, the SISC be• not in place, its ra• lieves that the best method to tio was 0.18. By gauge economic efficiency is to 1988, it was 0.16 link the total volume of wages with its per-capita with actual profits. •

28 BEIJING REVIEW, DECEMBER 25-31, 1989 Conference on Assistance to the Poor in Minority Nationality Re• gions held in September, the main state Aid to Poor Counties of topic was how to implement spe• cial policies and measures in mi• National l\/linorities nority nationality regions. When Jiang Zemin, newly elected Party general secretary, addressed the by Our Staff Reporter Lu Yun conference, he offered state help and encouraged people in ftern ten years of economic and ill-clad population in poverty-stricken areas to display reforms, increasing num• poverty-stricken counties nation• the spirit of self-reliance and hard A bers of rural people once wide solved the problem of food work in order to rid themselves of caught in poverty now have en• and clothing. Yet, in the same poverty. ough food and clothing. Many period, only 29 percent of the people, in eastern and central people in the poverty-stricken Reasons for parts of China particularly, have counties of minority nationali• Long-Standing Poverty made remarkable improvements ties rid themselves of poverty. In in their lives, while those still 1985, of the 331 poverty-stricken China's 55 minority nationali• badly off, are found mainly in counties, 181 were counties with ties, most in remote areas, make the western areas of China where a yearly per-capita income below up 7 percent of the nation's popu• there are highly compact minori• 200 yuan. Minority nationalities lation. Before liberation, their so• ty communities. cial economy was backward and made up 50 percent or 90 out of their standard of living quite low. Poverty in China's rural areas the total. By 1988, the number Since liberation, due to imple• is accurately reflected in the fol• of counties with such low living mentation of the regional nation• lowing figures. In 1988, the year• standards was reduced to 51, 38 al autonomy system and the pol• ly per-capita net income in of which, however, were counties icies of equality, unity and com• 331 poverty-stricken counties of minority nationalities. mon prosperity for all national• throughout the country was 333.1 With the situation drawing gov• ities, tremendous and profound yuan, 10.7 percent higher than in ernment concern, the State Coun• changes have taken place. In par• 1985. Of these counties, however, cil issued a document in August ticular, the recent ten years of 141 were of minority nationalities of this year, which emphasized reform have raised the total in• which registered only a 9.9 per• that the focus of the country's dustrial and agricultural output cent increase over 1985. In the aid-the-poor work would be shift• value by 2.3 times, the total agri• three years between 1985 and ed to the minority nationality cultural output value by 76.6 per• 1988, 60 percent of the under-fed areas. At the National Working cent, and the total volume of re• Progress has been made in the aid-the-poor work in Qianjiang Autonomous tail sales by 4.52 times. More than County of Tujia and IVIiao Nationalities due to the encouragement of scientific 80 percent of the people of minor• farming by Mou Xuheng (middle), secretary of the county Party committee. ity nationalities are provided with LIU QIANGANG enough food and clothing, and, with these problems solved, their regions, with a several-thousand- year legacy of backwardness, are undergoing daily change. Historical, geographical, politi• cal and economic factors, howev• er, determine that development in the minority nationality regions has progressed slowly. This is particularly true in China's northwest and southwest areas where no fundamental changes in social productivity have taken place. Thus, some of the masses are still leading difficult lives, the reasons for which can be summar• ized as follows:

BEIJING REVIEW, DECEMBER 25-31, 1989 29 CHINA

Poor natural conditions. About half of the 141 counties are scat• tered throughout mountainous areas. The rest are distributed in areas of alpine cold (Or desert places unsuitable for normal liv• ing and are frequently hit by drought, flood, blizzard, winds• torm, hail and other natural ca• lamities as well as by endemic and epidemic diseases. Unbalanced social develop• ment. After liberation, minority nationalities stepped directly into the socialist society from the late stage of primitive, slave, and or feudal society. The impact that the vestiges of the old society ex• With products of the Bamboo Woven Arts and Crafts Factory in Sanhe Township of Jinzhai County in Anhui Province selling well In the markets of the United erted upon the development of States and Europe, the township's income has increased and 350 families have the society's economy, production rid themsevles of poverty. Ll ]iN and life of its people cannot be underestimated. Slash-and-burn counties are unable to make ends time affair, while the other is long cultivation, a nomadic life style meet and their deficits must be term and continuous. and other activities commmon to covered by state subsidies. In poor areas, local govern• earlier societies can still be found ments have set up special offices in some areas. The result is an From "Blood Transfusion" to in charge of the aid-the-poor work underdeveloped commodity econ• and a responsibility system in• omy, poor quality of labour and a "Blood Production" troduced. Under this system, large proportion of the popula• tion illiterate and semi-literate. At present, because of state aid, leading organizations and cadres Geographical environment. the number of the people classi• at various levels help the popu• Most of the poor counties are lo• fied as poor in 141 counties has lation in specific areas to solve cated on the border areas of prov• decreased from 21.37 million in problems of food and clothing inces and 3utonomous regions. 1985 to 15.18 million in 1988. In by developing production. Var• Far from their central cities, com• recent years large numbers, some ious ministries and commissions munication and transportation 6.2 million, of the poor in under the central government, de• are difficult and create many ob• poverty-stricken villages, town• mocratic parties and mass organ• stacles to developing a commodi• ships and counties of various izations are also active in their ty economy. provinces, autonomous regions support. The Ministry of Geology Weak economic base. For a and municipalities directly un• and Mineral Resources, for exam• long time, their economic devel• der the central government have ple, used 33.9 million yuan in aid opment has been lower than the freed themselves from poverty by funds for 154 types of geological national average. The per-capita finding ways to support them• explorations in the 141 counties industrial and agricultural out• selves. The successful experiences over the past two years. By 1988, put value in 1988 in the 141 poor of these areas are a useful re• the ministry's geologists had ap• counties only reached 338 yuan, ference for future efforts to aid praised 234 mineral rich areas in and accounted for only 20.7 per• poverty-stricken counties. The 88 counties, 70 percent of which cent of the nation's average; the most important factor in their have since gone into production per-capita industrial output value success story is that poor fami• and produced economic benefits. was 100 yuan, standing at 7.5 per• lies are helped by developing the The ministry also helped the Ali cent of the nation's average; and economy, rather than merely by area of Tibet to discover boron the per-person sales volume of so• distribution of relief funds. Relief and other mineral mines, which cial commodities was only 17 per• funds are likened to "blood trans• produced a profit of 650,000 yuan cent of the average found among fusion," while the help given in in 1986. Small gold mines, surv• the nation's rural population. Per- economic development is likened eyed in Qinglong County of He- capita financial income was about to the strengthening of the func• bei Province, Zhouqu County of 14 percent of the nation's average. tion of "blood production" in the Gansu Province, Chengbu Coun• More than 95 percent of the poor body. One method is temporary, a ty of Hunan and Haiyuan County

30 BEIJING REVIEW, DECEMBER 25-31, 1989 of Ningxia Hui Autonomous Re• empted local households from funds are used in productive pro• gion, were soon being mined by payment of fees to the amount of jects requiring less investment local people. The China Demo• 178,000 yuan. And in the Hotian and yielding quick economic re• cratic National Construction As• Prefecture, the amount of taxa• turns. sociation, one of China's demo• tion reduced or eliminated for To improve the backward prod• cratic parties, and the Beijing poor families reached 9.4 million uction conditions in farm and branch of the All-China Federa• yuan over the past three years. In grasslands, the poor facilities for tion of Industry and Commerce Guizhou Province, 31 poverty- water conservancy, and the incon• have also given assistance to poor stricken counties used 80 percent venient transportation infrastruc• areas. For example, specialists in of their aid-the-poor funds to ture, and to lessen the losses fish farming were invited by the help develop production and, this caused by frequent natural ca• two organizations to Huangzhong year, the province allocated 75 lamities, many localities have County, Qinghai Province to pass million yuan in aid-the-poor made efforts to strengthen bas• on their know-how. In spite of the funds to buy materials and goods ic facilities. For example, farm poor natural conditions for fish needed next year for 260,000 hec• farming, such as oxygen deficien• production conditions have been cy and low water temperature tares of farmland in poor coun• improved by transforming low- caused by alpine cold, the output ties. The two most serious yield fields, sinking wells, build• of fish per hectare of water sur• poverty-stricken counties in Qing• ing ditches and reservoirs to ex• face in the county increased from hai Province provided the free pand irrigated areas, and pub• 7.5 kilogrammes to 1,500 kil• medical care and public-funded licizing advanced science and ogrammes after consultation with education. To further ease the technologies. Pastoral lands are the experts. In recent years, a burden on the local people, the being expanded with artificially member of both organizations in state also allocates funds for sown grass and their alkalinity Zhejiang has gone to Yunnan sev• grass-roots cadres, primary school reduced. Many areas have built en times to provide local leath• teachers and veterinary surgeons. highways and hydropower sta• er factories with technical ass• In other rural areas, however,the tions and commodity production istance. With his help, the five expenditures are usually covered centres. Giving priority to the de• leather factories in the area have by the locality. In Xinjiang, 17 velopment of crops and plants, all eliminated their deficits and poverty-stricken counties in 1988 the breeding and processing trade increased surplus sales. For ex• got 45.26 million yuan of aid-the- and making full use of the local ample, one technical innovation poor funds from the central and agricultural, forestry, animal hus• he recommended brought in local governments. Along with bandry, mining, hydroelectric 150,000 yuan a year to the Simao their aid, various localities esta• and tourist resources have be• Tannery. blished strict rules and regula• come the common experience Overall, implementation of pre• tions determining how aid-the- of the poor counties in rid• ferential policies and effective poor funds are used. Usually, the ding themselves of backward- use of aid-the-poor funds and ma• Communist Party member Wang Youhai (left) has helped the masses of Xiaojing terials have made it possible Township, Boai County of Henan Province to prosper by encouraging them to for poverty-stricken counties to build brick and lactic acid factories. CHENG QU create a better environment for developing their economies. The governments at various levels give poverty-stricken counties preferential treatment in develop• ment of agriculture and animal husbandry, diversifying the econ• omy, building village-and- township enterprises and for traffic and energy construction, as well as allowing free marketing of farm and sideline products, in commodity circulation and tax reduction. They also give the funding, material and technologi• cal assistance. Over the past two years, the Altay area of Xinjiang Uygur Autonomous Region ex-

BEIJING REVIEW, DECEMBER 25-31, 1989 CHINA ness. Those living in mountain• ous areas plant trees and Chinese medicinal herbs in the upper parts of mountains, grow fruit trees and tea on the mountain slopes and cultivate cereal crops and mulberry at the foot. In arid, alpine-cold or rocky areas, animal husbandry, rubber plants, fores• try, fruit, minerals, medicinal herbs and tobacco leaves are de• veloped according to suitability. In areas with surplus labour, a labour service economy devel• oped. In border areas, border trade beneficial to the overall de• velopment of the area and the opening to the outside world is encouraged. The most welcome technology for production introduced so far is the use of plastic film in the cultivation of corn seedling. Over the past five years, corn output per hectare has increased by 2,500 per person in the town to increase Xinjiang Association of Scien• kilogrammes as a result of its use from less than 200 yuan to more tists, 300,000 hectares of farm• on 170,000 hectares of farmland than 500 yuan annually. In Nai- land in Hotian Prefecture regis• in the western, hilly areas of Hu- man Banner, the publicizing and tered a 33 percent increase in bei Province. In Yunnan Prov• increased use of rice cultivation wheat and corn output by the im• ince, the use of plastic film result• technology has removed 4,600 proved cropping system, adoption ed in 1,500 kilogrammes more families from the poverty rolls. of early-maturing varieties of corn per hectare of farmland. New economic development is wheat and corn and by scientific Now the province is using the also making a dent in the poverty application of fertilizer. In recent plastic on 54,000 hectares. It's numbers. A silica sand factory, years, Fengning Manchu Nation• estimated that the increased corn brick factory and glass bottle fac• ality Autonomous County held output resulting from its use is tory have been recently built, 4,649 training classes, involving enough to feed 400,000 people for which provide together 1,000 280,000 people. Now 70 percent a year. In another example of families with enough money to of the county's poor families can new agricultural methods, Jirem support themselves. A tangible support themselves by raising League of Inner Mongolia suc• benefit is that with increasing use sheep and milch cows, making ceeded in planting former dune of the silica, the surrounding de• milk powders, cultivating edible and aikine areas with rice. More sert area is decreasing in size and fungus, mining fluorite, silica and than 27,000 poor families have becoming green with the planting coal, and weaving carpets. now planted more than 4,500 hec• of trees and grass. tares of rice crops, accounting for Various localities have paid a New Policy Focus 50 percent of the league's total lot of attention to popularizing areas sown with rice. Planting new science and technology tech• In addition to the various pre• rice crop in Sanjiazi Town of niques and to new cropping sys• ferential policies, the state recent• Hure Banner, has resulted in the tems. In addition, they have ly established a new focus for the doubling of the total grain out• placed much importance on rais• policies affecting poverty-stricken put, and decrease in desert areas ing the leadership capacity of counties of minority nationalities. from 62 percent to 40 percent of cadres and on training farmers Their new focus pertains to plan• the total areas. Natural vegeta• so they can grasp the new tech• ning and management, finance tion, beneficial to the develop• niques. The results have been re• and the supply of materials and ment of animal husbandry, has markable. For instance, with the goods. It is part of the effort to been restored. The town also esta• help of the Xinjiang Uygur Au• accelerate the elimination of pov• blished a rice straw-weaving fac• tonomous Region's commission of erty and its implementation will tory. All this has led the income science and technology and the be beneficial to strengthening the

32 BEIJING REVIEW, DECEMBER 25-31, 1989 infrastructure of water conserva• unable to pay off loans are al• ment will introduce the technique tion, grassland, energy and traff• lowed to enjoy a three- or four- of corn seedling cultivation with ic, as well as the development year moratorium without pay• polythene in areas suitable for the of better local industries. At the ment of additional interest. Also, use of this technique. Minority same time, the various depart• the amount of taxes collected poverty-stricken counties will ments of the central government from impoverished counties also have access to motor vehicles will continue their assistance to above their 1988 quotas can be at preferential prices. the most serious poverty-stricken kept by localities for their own Beginning in 1990, cadres at counties where minority people use. township and county levels in are concentrated. In regard to fund assistance for poverty-stricken counties in mi• In regard to industrial policy, poverty-stricken counties of mi• nority areas will be given training the development focus will be on nority nationalities, the state will in order to raise their, ability to better local industries, medium- continue to provide various funds lead the local economic develop• sized and small enterprises that to the 141 counties. In addition, ment. will get funds, material, technolo• it has decided to offer "Relief The Chinese government consi• gy and managerial experience ass• Funds for Minority Nationali• ders that the promotion of minor• istance. ties" every year to help minority ity nationalities' economic devel• In regard to sale of farm and people of 10-20 counties solve opment, social prosperity and a sideline products, the new policy their problem of food and clo• comfortable life of the minority focus will allow to the sale of thing by using funds mainly in people is a matter of overall im• various farm, animal and miner• developing on local production. portance, closely related to the al products at comparatively high Additionally, a leading group prosperity of the whole nation. market prices. This does not in• under the State Council in charge This is an arduous task because clude cereals and cotton ordered of economic development for it requires the minority areas to by the state under the contract poverty-stricken areas has decid• fundamentally change their so• system which are sold at state-set ed that 20-30 million yuan out of cial, economic and cultural back• prices. the nation's total annual aid-the- wardness. After years of joint ef• In regard to easing economic poor loans will be used in devel• fort by the people of various na• burdens, reduction in or exemp• opment of local industries in a tionalities, however, we are sure tion from farm taxation will con• certain number of counties. In that we will fulfil this great task tinue. Poor families, for example. 1990, for example, the govern• entrused to us by history. •

China Reconstructs to Be Renamed China Today

China Today is the new name of China Reconstructs, the general interest monthly founded by Soong Ching Ling (Mme. Sun Yat-sen) in 1952. Starting with the January 1990 issue, the magazine will use the new name, but continue to provide readers with varied, colourful and informative articles about China and its people. The 72-page illustrated monthly still presents news, features, regular columns and up to 20 pages of colour pictures, plus many black-and-white ones. It is published in seven languages—English, French, Spanish, Arabic, German, Portuguese and Chinese, and in eight different editions. The extra North American English edition is printed and distributed in the United States. The Arabic and Chinese editions are printed and distributed in Egypt and Hong Kong respectively. China Today is distributed worldwide to 153 countries, plus Hong Kong and Macao. China Today Press (formerly China Reconstructs Press) also continues to publish and distribute books, art and photo albums, postcards and audio-visual materials. We welcome subscriptions and advertisements in China Today! China Today (formerly China Reconstructs)

24 Baiwanzhuang Rd., Beijing 100037, China Fax: 8022338 Tel: General Editorial Office (89-2190) Business Dept. (831-5599 Ext. 698, 805) General Distributor: China International Book Trading Corporation (Guoji Shudian), P.O. Box 399, Beijing, China Fax: 8412023 Telex: 22496 CIBTC Tel: 8412027

BEIJING REVIEW, DECEMBER 25-31, 1989 33 FROMITHEICHINESEIPRESS forming an efficient production-use-recycling cycle. New Trends on Nanjing Campuses In 1988, China recycled 50 per• cent of its total steel production RENMIN RIBAO moil that occurred in May and of the same year. It's possible (People's Daily) June in 1989. China could recycle an even survey of 8,000 students Twenty students confirmed higher percentage, and this by Nanjing University their Party belief and present• would greatly help the national A Journal has found that ed applications for Communist economy. students are spending more Party membership. During re• (November 13. 1989) time studying than on enter• cent blood donation drives, tainment. More than 90 percent more than 1,000 students of• of the students surveyed stu• fered to give blood voluntarily. Diaoyutai State died in the evening instead of The survey also found a playing chess, cards or mahjong small number of students are Guesthouse: A as they had several months ear• still wasting their time while lier. About 300 of them studied some others conduct illegal Mirror of until midnight. Even on week• businesses. Diplomacy ends, 150 students studied late (November 8, 1989) into the night. Among 200 stu• RENMIN RIBAO dents who studied in the even• (People's Daily, Overseas Edition) ing, 137 or 68 percent studied Use of Scrap eijing Diaoyutai State until midnight, 162 or 81 per• Metal Increases Guesthouse, considered cent read books dealing with B the mirror of China's di• the subject they wanted to ma• JINGJI RIBAO plomacy, has received state jor in, 100 or 50 percent read (Economic Daily) leaders and well-known figures books in foreign languages and ince the People's Republic from about 100 countries over 120 or 60 percent read simply of China was founded in the last 30-odd years. to become more knowledgeable. S 1949, it has reclaimed 410 In 1959, when New China While studying hard, stu• million tons of scrap steel and was to celebrate her 10th birth• dents also found time for re• iron. By doing so, China has day, the central authorities de• creation. Music, films, TV pro• saved 1.24 billion tons of iron cided to turn an ancient com• grammes and academic discus• ore and 450 million tons of pound in suburban west Beijing sions were available through• high-quality coal. It has also into a state guesthouse to ac• out the campuses. Hundreds of saved 150 billion yuan on mine commodate heads of state, gov• students were attracted to such exploration and steel mill con• ernment leaders and other dis• activities as singing compe• struction, according to statis• tinguished guests from foreign titions to Karaoke, weekend tics from the Ministry of Ma• countries. dance parties, knowledge quiz terial. Fifteen villas of light grey, for newcomers, film festivals In the past ten years, the vol• yellow and green in different of revolutionary tradition and ume of recycled scrap metal styles were built. The com• economic discussions. has increased at an annual rate pound was given the official After receiving compulsory of 8 percent. In 1988 the vol• status of state guesthouse. In military training, 110 basic ume reached 28 million tons, the beginning, the guesthouse science students receiving crash representing 700 times that of received almost only leaders course continue to do morn• 1950. from other socialist countries ing exercises, something that Currently, China's steel prod• and some third world countries. hadn't been done for more than uction ranks fourth in the From 1959 to 1966, the guest• 20 years. world. Its volume of scrap me• house received a total of 300 After studying for two tal also ranks fourth. high-level delegations. months documents of the In most countries when steel Former US President Ri• Fourth Plenary Session of the production reaches 40 million chard Nixon, who visited China 13th Party Central Committee, tons, its volume of scrap metal in 1972, was the first guest most students have matured. rises yearly by a large margin. from a Western country to stay They have begun to think This speeds up the country's in the guesthouse. through the events of the tur• iron and steel production, thus With the readjustment of

34 BEIJING REVIEW, DECEMBER 25-31, 1989 FROMITHEICHINESEIPRESS

China's foreign policies, the elegant accommodation and When the former Iranian state guesthouse entered a new suitable food to make them feel President Hojatoleslam Soyed stage of prosperity. at home during their stay in Ali Khamenei stayed at the From 1980 to May 1989, the China. guesthouse early in 1989, he guesthouse received an aver• The head chef Hou Ruixuan, was offered mutton and beef age of 40 foreign delegations who has prepared food for doz• prepared according to the Is• monthly—equal to the number ens of foreign dignitaries, said, lamic practice. And the for any year before 1979. "A lot of people might think Chinese chefs were able to re• In 1980, the guesthouse re• those state leaders prefer deli• cite the Koran. ceived more than 700 foreign cacies, but many of them The graceful bearing and delegations, both governmen• don't." hospitality of the guesthouse tal and self-paying non• They like ordinary Chinese have left deep impressions on governmental ones—equal to food, according to Hou. the total number of all the de• Singapore Prime Minister foreign dignitaries. legations the guesthouse re• Lee Kuan Yew likes the typ• Britain's Queen Elizabeth II ceived in the 20 years from ical Beijing breakfast of soy• had a message taken to the 1959 to 1979. bean milk and deep-fried twist• guesthouse saying they could In May 1979, the guesthouse, ed dough sticks, and other light not have been more comfort• for the first time, received a food for lunch and dinner. ably accommodated." non-governmental foreign dele• Thai Prime Minister Chatichai Sierra Leonean President Jo• gation of Western bankers who Choonhavan finds Chinese or• seph Saidu Momoh told a staff paid for their stay. ange jam, seafood and veget• member that the facilities and When Richard Nixon paid ables tasty, while former US service were first-rate, while his first visit to China in 1972, President Ronald Reagan Bangladesh President Hussain the late Premier Zhou Enlai wouldn't eat seafood. Mikhail Mohammad Ershad wrote in asked Wang Yeqiu, head of the Gorbachev is fond of Chinese i! the guest book: We were given Cultural Relics Administrative a most hospitable and friendly Bureau, to select about 100 cul• prawns and a traditional tural relics to be used for decor• Chinese dish of fish cooked reception in the idyllic Diaoyu- ating the villa where the US with chicken sauce, while tai State Guesthouse. The president was to stay, so that Uruguayan President Julio graceful entertainment and Nixon could have a glimpse Maria Sanguinetti appreciates courteous reception reflect the of ancient China's civilization. soft-fried chicken slices and fine tradition of the guest• Now, 3,000 valuable relics de• tomato-flavoured pork, which house. corate the guesthouse. are the guesthouse's specialties. (September 9, 1989) Among the list of foreign dig• nitaries the guesthouse has re• ceived are Ho Chi-Minh from Viet Nam, Kim II Sung from the Democratic People's Re• public of Korea, L Julius Ny- erere from Tanzania and Ken• neth Kaunda from Zamibian. Ho Chi-Minh and some other leaders planted pines and dra• gon spruces as tokens of friend• ship and to help beautify the landscape around the guest• house. On May 17, 1989, Soviet President Mikhail Gorbachev held a press conference in the Fangfei Hall of villa No. 17. Excellent Service. The staff of the guesthouse is keen to en• sure that guest are 100 percent satisfied by providing cosy and

BEIJING REVIEW, DECEMBER 25-31, 1989 35 BUSINESS/TRADE

and finishing techniques for wool technique for processing asphalt Law on JV spinning and provide extra wide products and other highly strong To Be Revised decorative cloth; develop chemical and light building materials. fibre and new textile materials; • Energy and Communication In• n 1990, China's law-makers will and expand the processing capaci• dustries: Absorb and use foreign revise some provisions of the ty of cotton cloth, down and silk funds to import advanced technol• Law of the People's Republic of clothes. ogy and equipment; expand the I construction of the existing pow• China Concerning Joint Ventures • Light Industry: Increase the use Using Chinese and Foreign Invest• of vacuum foods, peanut line prod• er plants, harbours, railways and highways; develop oceangoing ment (LJVUCFI) so that the law, ucts, grape wine and wild jujube transport industry and co-operate originally drafted in 1979, can products; develop ceramics arts with foreign countries in opening meet the future needs of China's and crafts, glass products and up oilfields in Linzi and Zhoucun opening to the outside world and machine-woven jacquard carpets. • Electronic Industry: Raise the ca• areas. absorbing foreign investment. pacity of colour TV sets and their • Aquatic Industry: Import adv• According to Gu Ming, deputy accessory products; develop auto• anced technology and facilities for director of the Legal Commission mated equipment for offices, devel• such things as fishing vessels con• under the National People's Con• op various integrated circuits, opti• struction and fitting out, fishing gress, the present LJVCFI stipu• cal meters and instruments; and ground survey and fish harvesting; lates that the chairman of a joint also develop experimental instru• develop fish breeding in shallow venture should be Chinese. In the ments for use in water, for environ• sea water and sea beach areas; ex• futhure, however, the chairman mental protection and for energy- pand deep-sea and fishing capacity; will be jointly decided upon by the saving and other key equipment. improve the technical level of fresh two partners of joint ventures after and processed aquatic products. consuhation. In addition, the time • Chemical and Rubber Industries: • Agriculture: Improved varieties limit to a joint venture will be res• Expand the productivity of soda ash, sodium alginate and other and imported farm technology are cinded. Some stipulations that fall products; develop petroleum pro• used to accelerate the development out of step with the international cessing products, products for use of crops, cotton, oil-bearing crops practice will also be revised. in eliminating bromine as well as and fruit, and develop new prod• Gu Ming added that the Nation• other precision products, and de• ucts. al People's Congress will speed up velop and produce polyethylene, • Tourism: Advanced technology the formulation of laws and regula• polypropylene and new plastic and equipment are imported to up• tions badly needed to govern for• products. date and perfect the present tour• eign trade, including foreign trade • Machine-Building Industry: Im• ist facilities, renovate historic sites laws, maritime laws and foreign ex• port production technology and and build new tourist areas. • change control laws. key equipment for diesel engines To date, China has 1,224 effi• and multi-function switchers and cient laws and regulations now in cold presses; develop and produce CCPIT Planning for effect, 454 of which are economic j new products such as cold contai• laws, including 119 concerning ov• 1990 Extiibitions ners, quick-frozen machines and erseas economic matters. • engineering machinery; develop he China Council for the Prom• the design and manufacture of otion of International Trade Co-operation Focus internal-combustion engines, auto• T will send more than 500 mobiles, ship-building and various Chinese enterprises to 24 interna• In Shandong precision moulds. tional fairs in 1990, according to a • Household Electric Appliances: CCPIT source. It also plans to fficials in charge of the Open improve the quality of refrigerators hold five exhibitions in the Soviet Economic Zone in Shan• and washing machines and increase Union, the United States, Japan, Odong Peninsula reported in output and new products; develop and Mali on China's economic de• early November that the area series of household electric appli• velopment, trade and export com• would continue to carry out the ances including compressors, mi• modities. coastal development strategy in or• crowave ovens, air-conditioners The 24 international fairs will be der to further co-operate with for• and solar powered .products. held in Australia, France, the Un• eign countries in economic, tech• • Building-Materials Industry: Im• ited States, Sweden, Italy, Japan, nological and trade relations. The port advanced technology and Spain, the Federal Republic of province's foreign co-operative equipment to develop colour glass Germany, Poland, Czechoslovakia, points are: and silicon iron; raise the capacity Thailand, Singapore, Malaysia, In• o Textile Industry: Strengthen to mine asbestos and granite and donesia, Iran, Iraq, Switzerland, spinning, weaving, dyeing and fin• improve the quality of their pro• Senegal, Trinidad and Tobago and ishing industry; improve dyeing cessed products; develop the new the Soviet Union. China's total ex-

36 BEIJING REVIEW, DECEMBER 25-31, 1989 BUSINESS/TRADE

hibition area will amount to 12,- ment of trainees is expected in ment was signed in Beijing in De• 280 square metres, including 2,000 1990. cember. square metres for 26 Chinese enter• Among the earliest companies to The aid, given gatis, will be used prises attending the Djakarta Inter• enter the Chinese market, AEG for the construction of four pro• national Fair to be held in Indone• provided automatic equipment for jects—3 billion yen to equip the sia in June 1990. Products to be some Chinese ocean-going vessels Beijing TV Station, 1.608 billion exhibited are largely of light indus• as early as 1897. In the 1940s it yen to equip the Shanghai No.6 try, textile and electric appliances exported to China 50 power sta• People's Hospital, 135 million yen and mining. The fares, with each tions with a total installed capacity and 133 million yen, respectively, attending company having a coun• of 1.9 million kw. as well as some for equipment geared to teenagers, ter, will, in addition to showing off other electric equipment. With scientific and technological educa• China's recent products, provide an China's policy of opening to the tion and for the nurses' school in opportunity for the transaction of outside world in 1979, AEG furth• the Ningxia Hui Autonomous Re• business with new customers. er expanded its business with gion. The five exhibitions to be held China. According to Dr. Stehle, Co-operation in funds between in 1990 are: the China Economic AEG vice-president, the corpora• Chinese and Japanese governments Construction Exhibition in Mos• tion has provided China with elec• began in 1983. • cow in June, the China Export tric and automatic equipment Commodity Exhibition in New worth several billion marks used in • China's first comprehensive mar• York in June, Tokyo in August and such industries as iron and steel, ket privileged to trade in ancient Los Angeles in September, and the coal mining, nonferrous metal, cultural and historical relics—the China Economic Trade Fair in Ba• paper making, chemicals, railway, Beijing non-government second• mako in October. the power transmission of port fa• hand commodity market of arts It is expected that remarkable cilities. In addition, AEG signed and crafts— will hold an exhibition improvements will be seen in the 25 technology transfer and co• in Beijing from December 10, 1989 quality and marketability of the operation agreements with Chinese to January 10, 1990. products to be exhibited abroad in enterprises. Merchandise includes porcelain, 1990 over those of 1989. Along Looking to the future, Dr. Stehle glassware, goldware, silverware, with an increase in the export said, "We have been taking a long- bronzeware, old furniture, an• of traditional products, export of term view of our investment and tiques, ancient calligraphy and machinery and electric commodi• co-operation with China. With the paintings, carpets and daily necess• ties will be enlarged. present shortage of funds in China, ities as well as new handicrafts, by Kou Zhengling we run the training programmes which were produced in China or entirely for tomorrow.' "If winter abroad before the founding of the comes. Dr. Stehle added humour• People's Republic of China in 1949. AEG Aiming at ously, "can spring be far away?" The prices are expected to be 20 Future Although China is engaged in percent off. The exhibition author• economic rectification and cutting ities will help with customs clear• ing and delivery. EG, a diversified corporation down on the scope of capital con• of the Federal Republic struction, Dr. Stehle said, AEG was still successful in bidding for • The Ka Wah Bank Ltd. Hong A of Germany, opened three Kong under the China Interna• its largest project—the primary- training centres in Beijing on Nov• tional Trust and Investment Corp. ember 29, 1989 to train Chinese stage of construction of a subway in Shanghai. The project, with a (CITTC) has established a repre• engineers and technicians in the sentative office in London, Eng• proper operation of the AEG elec• contracted investment of 350 mil• lion marks, will be shouldered by land. This is China's second bank tric and electronic equipment, to set up its representative office in which are expected to find a ready a ERG consortium and the FRG- Shanghai subway group. In addi• London. The first bank to do so Chinese market in the future. was the London branch of the Bank The three training programmes tion, AEG has also equipped the China World Trade Centre and of China some 60 years ago. are set up in the Academy of Au• Since June 23, 1986 after CITTC tomation under the Ministry of such grand hotels as Beijing Luf• thansa Centre with electric appli• took over the Ka Wah Bank Ltd. Metallurgical Industry, the Acade• Hong Kong, it has increased its in• my of Coal Mining Research under ances. by Yao Jianguo vestment in the Hong Kong Con• the Ministry of Energy Resources, cern. In 1988, the Ka Wah Bank's and Northern China Polytechnical loans, deposits, total value of capi• University under the China Non- News in Brief tal funds and net profits reached an ferrous Metal Corp. AEG has spent all-time high, ranking first among several hundred thousand US dol• • An agreement on providing all Hong Kong banks, which have lars on teaching facilities in the China with 4.967 billion yen in aid so far reported their business re• three centres. Expanded enroll• in 1989 by the Japanese govern• cords for 1989. •

BEIJING REVIEW, DECEMBER 25-31, 1989 37 CULTURE/SCIENCE outstanding photographers. Chen, 48, has worked for the Photographic Art Festival in Beijing Civil Aviation Administration of China for 30 years. He excels at visual record of the past tures shot that day, only this one air-shooting and presenting the 40 years of Chinese history was satisfactory. world in a simple but creative A was on display in Beijing Beloved China reflected the artistic language. Chen's a group during the recently completed changes that have occurred dur• of Great Wall pictures were on China Photographic Art Festi• ing the 10 years of reform. The val. 5th International Photographic display at the exhibition. In The 20-day festival, which Exhibition China and The World them, the Great Wall was shot marked the 40th anniversary of in the Eyes of Chinese Photogra• either from close range, in which the founding of the People's Re• phers focused on the exchanges the grey bricks and towers were public and the 150th anniversary between China and the world. still and powerful under the blue of the birth of photography, in• Critics agreed that the exhi• sky, or from far away, in which cluded four main exhibitions: bition of the works of the 10 the Great Wall became a zig-zag Photographic Products of the award-winning Chinese photog• line against a dark background. Past 40 Years, Beloved China, raphers was the best display, re• In Chen's pictures, the viewers The World in the Eyes of presenting the highest level of saw a mysterious vision of soli• Chinese Photographers, and the the photographic art in China. tude and eternity. Fifth International Photographic Their personal understanding of For his great accomplish• Exhibition. reality has helped them to make ments, Chen was listed as one of Two other exhibitions includ• unique works of art through the the world's top 10 photographers ed the works of 10 Chinese pho• medium of photography. Some in October 1989 and the Time tographers who have won the took a more subjective approach magazine gave a special introd• Golden Picture Award of the through their mastery of dark• uction to Chen and his works Chinese Photographers Associa• room techniques; others showed in its special issue marking the tion and those of Japanese and their facility at snatching every• 150th anniversary of the birth of American photographers. day scenes that displayed typical photography. Together with the A major consideration of the national feattires and some-dis• other nine photographers, his sponsors and organizers of the played their understanding of portrait was published on the festival was that spectators get a modern aesthetics. cover of the magazine. visual review of China over the Chen Changfen is one of these by Cui Lili past 40 years. The Exhibition of Photographic Products of the Past 40 Years included 320 re• Huishan Clay Figurine, a Big Exporter presentative works. Those of the earliest period were generally uishan clay figurines, or• their production was a sideline realistic with the individuality of iginally made by peasants for most households in the Huis• the photographers not particula- Has toys for their children, han area. ry evident. But these photos' can• are now exported to 60 countries Legends, literature and history did recording of historical events and regions and earn US$10 mil• provide the subject matter for have given them a great do• lion in profits each year. the figurine makers. The most cumentary value. The Grand The history of the figurines in common design is called Big A Founding Ceremony of New the east China city of Wuxi near Fu, reproduced from chubby China was typical of this catago- Shanghai dates back more than female and male urchins living ry. It records the moment when 400 years to the Ming Dynasty south of Changjiang (Yangtze) the late Chairman Mao Zedong (1368-1644). The people of Huis• River during the 1368-1892 per• announced the founding of the han, a suburb of Wuxi, used a iod. People's Republic of China from fine, black clay to make the fi• Another popular figurine fea• Tiananmen Gate on October 1, gurines. tures Princess Chang E, who in 1949. The photographer, Tong Because there were many tem• ancient mythology consumes an Xiaopeng, recalled that in order ples and monasteries near Huis• elixir given to her husband by a to record the ceremony he had to han, pilgrims often travelled to goddess and flies to the moon. buy Kodak 120 colour film from the area to worship Buddha. Huishan figurines, mainly Hongkong with the help of one These visitors spread the popu• moulded by hand, are noted for of his friends. Among all the pic- larity of the figurines and soon their life-like bearing, colours

38 BEIJING REVIEW, DECEMBER 25-31, 1989 CULTURE/SCIENCE

uriculotherapy is a freed her from pain. He traditional Chinese Auriculotherapy also cured a 15-year-old A medical treatment Proves Effective student's enuresis (involun• that is recorded in tary discharge of urine). A 2,000-year-old Chinese 6&-year-old woman writer medical classics. It includes who had suffered from con• a variety of specific treat• stipation for more than 30 ments such as acupuncture, years received auriculoth• massage and burial of phar• erapy and was cured. maceuticals—a term refer• In 1987 and 1988, Chen ring to the placement of and his colleagues com• ointments on the acupunc• bined electric stimulation ture point, which is then with the burial of oint• bandaged. This old, simple ments on ear points during but effective therapy has experimental treatments on been revived by some doc• 192 sufferers of chromic- tors of traditional Chinese bronchitis. The results medicine and Chen Kang- showed that the two meth• mei of Beijing's Fuxing ods complemented each Hospital has achieved great other in curing the disease. results. Electric stimulation had a Chen graduated from the quick effect while the im• Department of Traditional planted ointment consoli• Chinese Medicine of the dated the benefits. After Capital Medical College in treatment, 185 of the Beijing in 1981. Since then 192 patients were able to he has been performing breathe naturally. Even in clinical experiments and winter, a time when asthma studying the theory of this and bronchitis attacks are unique therapy. common, 159 of the pa• Chen and his collegues Chen treats a British expert working in China. tients have not had a re• have been successful in the use of than 30 years. He had tried var• lapse. On seven patients the a form of auriculotherapy called ious kinds of therapy but the re• treatment was ineffective. erxue maidou (bury ointment on sults were disappointing. After To popularize the clinical use ear acu-points) to cure diseas• Chen's auriculotherapy treat• of auriclotherapy, Chen Kang- mei and his wife, a nurse at the es such as hypertension, rhini• ment, however, the man slept hospital, have published a colour tis (inflamation of the mucous very well. diagram showing ear points for membrane of the nose), haemor• Elle La Rosa of Australia had acupuncture and a book titled rhoids and insomnia. Treatment suffered from headaches since Practical Auriculotherapy which has proved to be 96 percent ef• her childhood. She had been to makes a theoretical analysis of fective. more than 10 countries for treat• the therapy. Chen has also dis• One case involved a 70-year- ment, but hundreds of doctors covered new ear points to be used old retired teacher who had suf• had failed to cure the trouble• in the therapy. fered from insomnia for more some disease. Dr. Chen, however. by Cui Lili and exaggerated decoration. noted craftsmen and established ding a colourful new dimention These features are also present in a plant to produce the figurines. to Huishan figurines. figures of birds and animals. That plant now has a staff of The plant has even branched Production of the figurines more than 500. out into new products, such as was not well organized prior to Two kinds of figurine are now lantern decorations, pen holders the founding of New China in being turned out: one is made by and smoking sets that are based 1949. Some folk artists even the traditional method of mould• on traditional Huishan designs. lived a life of destitution, wan• ing clay while the other uses a These products have been popu• dering far from their homes. combination of plaster and clay. lar with both foreign and domes• But after liberation the local The artists often reproduce tic consumers. government called back many I scenes from everyday life, ad• by Zhang Wei

BEIJING REVIEW, DECEMBER 25-31, 1989 39 China Would Not be Strong Without the CPC am a foreigner of Chinese origin but, in my time between 1911-49 the KMT government heart, a Chinese forever because my moth• made no contribution to China. If the Qing Ierland is the People's Republic of China. I Court was corrupt and incompetent, so was the grew up during the Anti-Japanese War and KMT. At a time when the people were disap• like many compatriots born at that time, suf• pointed, the CPC came. On October 1, 1949, fered a lot from the foreign invasions and the the People's Republic of China was solemnly Kuomintang's corruption and incompetence. proclaimed from the rostrum of Tiananmen. It Today, I see a strong motherland with high marked the beginning of China's true demo• international prestige and a national dignity cracy, freedom and independence. respected by the whole world, I am proud of Forty years is a long time for a person but this because I also recall the hundred years of is very short for the transformation of a back• Chinese history filled with foreign invasion ward country like China with such a vast Uke the English who invaded and occupied territory. Even though China has had many Hong Kong, the Japanese, northeast China, political shifts in this period, some very ser- the Russian Tzar, Lushun, the Germans, Oing- ious,politically unbiased people can see clearly dao, the Portuguese, Macao, the Dutch and the great changes that have been made under Japanese, Taiwan, the French concession in the leadership of the CPC. The unequal trea• Shanghai and the Eight-power Allied Forces ties of foreign invasion have been abrogated, who invaded Beijing and burned down off the Chinese national dignity restored. Indus• Yuanmingyuan and back streets of the Sum• trially, agriculturally and scientifically back• mer Palace. Although all this occurred in the ward China has grown into a strong country 19th century, we Chinese would never forget with an advanced world level in these fields. It history and whenever thinking about past mis• must be pointed out that in forty years China erable conditions, people would be filled with has gone through a tortuous course of develop• indignation and hope that China will be a ment. truly democratic, free and independent coun• People remember clearly that several large- try. scale wars occurred in Asia, surrounding Chinese once hoped that the western powers China, their spearhead directed at China. The would have pity on them and send the demo• CPC took over the country in shambles from cratic 'goddess,' thereby allowing them to en• the KMT, it had fo cope with foreign econom• joy true democracy and freedom. But history ical and political blockade and solve the prob• has proved that they never sent democracy lem of feeding hundred millions people. At and freedom to China. Instead, they brought that critical juncture, it was necessary to have only invasion and pillage. Today's national a party like the CPC with the vitality to main• independence was achieved through dozens of tain China's territorial integrity. China's na• years of bloody battles fought by the Chinese.- tional liberation depended on the CPC, the Looking over Chinese history, we see so many safeguarding of its state sovereignty and terri• people who laid down their lives for national torial integrity also depended on the CPC. By freedom and democracy, such as Qiu Jin in the its activity in the Korean, Vietnamese, China- early time of the Republic of China and Liu- India border, China-Soviet border and China- hulan in the time of the Anti-Japanese War.- Vietnam border, people well knew the high Today when we are enjoying democracy, free• patriotic spirit of the Chinese Communists. It dom and independence, how can we forget has not lost an inch of the nation's land and China's own 'democratic goddess' (national has repulsed any invader. This enhanced the heroines), and try to bring in an abstract for• Chinese people's morale and punctured the eign democratic goddess as a substitute. aggressors' arrogance. In 1911, Dr Sun Yat-sen led the democratic Today, from faraway, I wish my mother• revolution to overthrow the rule of the Qing land a peaceful, favourable and stable future. Dynasty. People, at that time, hoped that One day, I will come back and pour out the China would from then on enjoy freedom and feelings to you of one who has not forgotten independence. But Dr Sun died before China his motherland. underwent reform and in the long period of Zhongguo, Mexico

40 BEIJING REVIEW, DECEMBER 25-31, 1989 Woodcuts by Gao Guilin

Gao Guilin was born in Qinhuangdao City, Hebei Province in 1935. Now a teacher at the Xinjiang Teachers' University, he depicts the rich life of the national minority of the Xinjiang Uygur Autonomous Region and its local landscapes.

An Old Man of the Uygur Nationality.

ART PAQE

A Camel Caravan.

Spring's Arrival. wmf yu&asoonfe Mum U UV&LJ

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