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G BANKERQVFINANCE Qingliu County in Fujian Province Has Developed the Export of Wood and Bamboo Commodities Government Speaks Out on Issues of Common Concern G BANKERQVFINANCE Qingliu County in Fujian Province has developed the export of wood and bamboo commodities. Top: Wooden bowls from the wild jujube tree are both consumer goods and handicraft articles; Below: Craftswomen weaving wooden-bead door curtains. Photos by Li Kaiyuan BEIJING REVIEW VOL. 32, NO. 44 OCT. 30-NOV. 5, 1989 CONTENTS Discussing China's Key Issues • In an interview with the Japanese news agency Kyodo, State Council spokesman Yuan Mu answered some percep• tive questions about the situation in China, including the EVENTS/TRENDS 4-7 economic, political and diplomatic aspects (p. 8). Anti-Porn Campaign Off to Anti-Porn Drive to Clear Eyesores Good Start China and India for a New D With initial success in confiscating pornographic books International Order and video tapes, Li Ruihuan, who is in charge of China's anti-porn campaign, calls for continued perseverance in rid• Fresh Term for the Freshmen ding the country of undesirable material (p. 4). China's Population Still Faces Yellow Light Retrenchment and Economic Growth Real Estate: A Rising Industry • In a recent exclusive interview with Beijing Review, Li INTERNATIONAL Guixian, president of the People's Bank of China, talked about China's current financial situation and policies, mea• Questions of Interest About sures to be taken in the next step of financial reform and China 8 whether China can afford to repay its foreign debt, particu• Political Crisis in South Korea 10 larly during the peak repayment year of 1992 (p. 17). CHINA Building China's Legal System Construction of the Chinese • China's socialist legal system has gone through four stages Legal System 13 —establishment, initial development, destruction and rapid Retrenchment and Economic advancement—since 1949. Beginning in 1979, the National Growth 17 People's Congress and its Standing Committee have enacted, China's Stock and revised and supplemented a total of 147 laws and regulations Bond Market 20 covering various aspects of state and social life. A socialist legal system with Chinese characteristics has taken shape, the Foreign Trade Increase in judiciary strengthened and the people's sense of responsibil• Dalian 24 ity to the law enhanced after years of nationwide publicity BUSINESS/TRADE 29-31 and education about the legal system (p. 13). CULTURE/SCIENCE 32-34 China's Stock and Bond Market COVER: Li Guixian, a State Council• • Although the main purpose of China's issuance of stocks lor and president of the People's Bank and bonds is to generate funds for national construction, it of China, being interviewed by a Bei• is also an important step in the reform of its financial system. jing Review reporter. A product of the planned commodity economy, China's stock by Xue Chao and bond market is developing under the prerequisites of public ownership and adherence to the socialist orientation (p. 20). Unless written by Beijing Review correspondents, the opinions expressed in signed articles do not necessarily reflect the view of the Beijing Review editorial board. General Editorial Office Published every Monday by BEIJING REVIEW Subscription rates (1 year): Tel: 8314318 24 Baiwanzhuang Road, Beijing 100037 Australia.. (29.00 TLX: 222374 FLPDA CM The People's Republic of China New Zealand.. ..NZ.i 539.00 FAX: 8314318 Distributed by China international Bool( UK C14.50 English Dept. Tel: 8315599 Ext. 546 Trading Corporation (GUOJI SHUDIAN) USA US$29.00 P.O. Box 399, Beijing, China Canada Can.$25.00 EVENTS/TRENDS ment of the assigned tasks. In dealing with any case, he Anti-Porn Campaign Off to Good Start stressed, the policy of being len• ient to those who confess their ore than 30 million copies ybody should know, Li warned, crimes and harsh to those who of pornographic books that one of the important means refuse should be followed. M and magazines and foreign hostile forces are using to It is also necessary to carry out 400,000 obscene audio and vi• push China into "peaceful evolu• sentences swiftly so as to assuage deo tapes have been confiscated tion" from socialism back to cap• popular indignation, he added. throughout China in the ongoing italism is to use pornography, While promoting the anti- campaign against pornography. gambling and drugs to poison the pornography campaign, work Statistics also show that by the Chinese people. should be done to encourage end of September, 300 centres He urged leaders of all work for making and distributing ob• wholesome culture and invigo• units to devise plans, take mea• scene publications were shut rate the people's cultural life sures, assign concrete tasks and down and 1,800 people involved with healthy publications, Li in such activities brought to jus• supervise and speed up the fulfil- said. • tice. The national committee in charge of the campaign sent teams to the coastal provinces China and India for of Guangdong, Fujian, Zhejiang and Hainan to close the loo• A New International Order pholes through which porno• graphic publications entered hina and India have ex• der. China. pressed their willingness to The Five Principles of Peace• Some provinces have even es• e establish a new interna• ful Coexistence are not only ap• tablished regular inspection or• tional political and economic or• plicable to the relations between ganizations in the anti-porn der. India and China, but also suit• drive. In a meeting in New Delhi able to international relations Earlier in September, Li Rui- on October 12 Chinese Vice- the world over, he said. huan, member of the Stand• Premier Wu Xueqian and Indian Both statesmen noted with sa• ing Committee of the Political External Affairs Minister Nara- tisfaction that Sino-Indian rela• Bureau of the Chinese Commun• simha Rao exchanged views on tions have improved in recent ist Party Central Committee, bilateral relations and interna• years and they hope the momen• said that although the campaign tional problems. tum continues. had produced satisfactory results Wu noted that the Five Princi• The two countries, Rao said, initially, some areas had been ac• ples of Peaceful Coexistence ini• are facing a hopeful stage of de• tually overlooked. tiated by China and India in the velopment in bilateral relations. A pressing matter of the cam- 1950s have great vitality. He The 40th anniversary of the .esta• pain, he said, is to continue to hoped that all nations concerned blishment of diplomatic relations promote it and prevent it from will work to build a new interna• between India and China in WQO going from a fine start to a poor tional political order on the basis will be a historical opportunity finish. of the Five Principles and a new for both two countries to prom• Li noted that some senior lead• international economic order on ote their relations. ers, including Deng Xiaoping, the basis of equality and mutual Indian President Ramaswamy have been greatly concerned benefit. Venkataraman also met with Wu about the campaign. The Party's China wishes to improve and and stressed that there is wide Central Committee and all the develop relations with India on scope for co-operation in various members of the Standing Com• the basis of the Five Principles, fields between the two countries. mittee of the Political Bureau of Wu said. Friendly relations between the Party Central Committee are Rao stressed that India and China and India date back thou• determined to make the cam• China have similar and identical sands of years, Venkataraman paign a success, he said. views on many problems. India said, expressing the hope that The major priority, he added, wishes to work together with Wu's week-long visit would is to heighten the people's under• China to establish a new interna• strengthen Indian-Chinese rela• standing of the campaign. Ever• tional political and economic or- tions. 4 BEIJING REVIEW, OCT. 30-NOV. 5, 1989 EVENTS/TRENDS Wu briefed the president on two sides conduct friendly con• abide by the Five Principles of China's achievements in the 40 sultations in a spirit of mutual Peaceful Coexistence — mutual years since the founding of the understanding and mutual ac• respect for sovereignty and ter• People's Republic in 1949. He commodation, a mutually ac• ritorial integrity, mutual non- reiterated that there will be no ceptable solution can be found." aggression, non-interference in change in China's independent China supports South Asian each other's internal affairs, foreign policy of peace or its pol• regional co-operation and appre• equality and mutual benefit and icy of reform and opening to the ciates the progress made in this peaceful coexistence -— and if outside world. respect through the joint efforts there are new international polit• On October 14 Indian Prime of all the countries in the area, ical and economic orders esta• Minister Rajiv Gandhi met with he added. blished on this basis, it will be "Wu. He said it is important to Wu emphasized that if all entirely possible to achieve dur• maintain good relations between countries in the world strictly able peace in the world. • India and China. The two leaders had' sincere and friendly talks on a wide range of bilateral and interna• Fresh Term for the Freshmen tional issues. Gandhi said as the two coun• tries are confronted with new ilitary and political train• appointed president of Beijing challenges, India and China ing for Beijing Universi• University, expressed his hope should strengthen co-operation M ty freshmen is an exper• that the freshmen would recog• in various fields and complement iment in exploring ways of nize the kind of personnel need• each other by drawing on each nurturing qualified college stu• ed by the state and learn the best other's strength.
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