A CHINESE WEEKLY OF NEWS AND VIEWS

Vol. 33, No. 3 January 15-21, 1990

1990—Forecasts by the Experts The 1 million Hani na• tionality, all kindhearted and industrious farmers, live in the mountainous area scattered between the Yuanjiang and Lan- cang rivers in Yunnan Province.

woman of the Hani na• tionality.

When women of the Hani nationality go shopping in town, they frequently use baskets to carry heavy loads, dispersing the weight by wrapping a band around their forehead.

lotos by Tang Nianzu Beijing'^r VOL. 33, NO. 3 JAN. 15-21, 1990

Li Speaks on the End Of Martial Law • In a televised speech on the lifting of Martial Law in Beijing, CONTENTS Premier Li Peng points to the stability of the national situation and declares that, no matter what happens in the world, will unswervingly proceed along the socialist road. (p. 4). EVENTS/TRENDS 4 9 Chinese Foreign Minister on World Situation e Despite a relaxation in mihtary confrontation, instability Martial Law Lifted in Beijing will continue, says Chinese Foreign Minister Qian Qichen. Residence Offer: A UK Volte-Face Interviewed by China's Outlook magazine, Qian speaks on the Measures to Improve Economy rapidly changing world situation (p. 10). A Boy Sets the Example Yuan Mu Meets College Students A Forecast of 1990 Beijing Censures Fugitives in Exile • In this issue, Beijing Review publishes a series of articles in 'Basket' Project Bears Fruit which experts from different fields of work preview the year 1990 and beyond and describe the measures for improving INTERNATiONAL economic environment. Among these experts are He Kang, minister of Agriculture; Zhou Zhiying, an official of the State Qian Qichen on the World Planning Commission; Zhou Guangzhao, president of the Situation 10 Chinese Academy of Sciences; and , chairman of the A Significant Step Towards Arab Chinese Peasants' and Workers' Democratic Party (p. 15). Unity , 12 Regional Conflicts Ease but Snags Offence-Reporting: A Way of Mass Supervision Still Exist 13 • The offence-reporting system, established nationwide in June 1988, offers the public an opportunity to participate in CHINA the fight against bribery, corruption and bureaucracy. It has proved to be an effective means of discovering crimes (p. 25). Experts Look at the 1990s 15 Steadily Developing the Economy 17 Kinescope Firm—a Symbol of China's investment Climate Scientific and Technological e The Beijing-Matsushita Colour Kinescope Co. (BMCC), the Development Requires a Stable largest Japanese investment project in Beijing and a major Policy 18 overseas project of the Matsushita Electronics Corp., uses not The System of Multi-Party only the company's equipment and technology, but also its Co-operation 20 management system. BMCC's management practice has made Seizing the Opportunity for Rich the joint venture the most efficient one in Beijing's electronics Harvests 21 industry and created a production line which meets the quality Kinescope Firm Highlights China's standards in the United States (p. 23). Investment Climate 23 Offence Reporting: An Important Channel of Mass Supervision 25

BUSINESS/TRADE 29-31

CULTURE/SCIENCE 32-34

COVER: A view of the Beijing- Matsushita Kinescope Co. Photo by Xu Songchao p. 10 p.23

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.. .JV.$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 El 4.50 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

Martial Law Lifted in Beijing

rryhe Chinese government lifted as of "Previous experience, if not forgotten, I January 11 the martial law imposed serves as a guide for the future," he contin• in parts of Beijing on May 20, 1989, ued. "We must learn from historical exper• to check turmoil and maintain social order iences and lessons, cherish the country's and security in the city. stability in the same way as we take care of Premier Li Peng announced the State our own eyes, and consolidate and develop Council decision in a televised speech on the political situation of stabihty and unity. the evening of January 10. "We have made tremendous achieve• "The lifting of martial law imposed in ments in reform and opening to the outside parts of Beijing indicates that the situation world over the past decade. Practice shows in the capital and the country as a whole that the policy of reform and opening to the has become stable, the social order has re• outside world is fully correct. The policy turned to normal, and a great victory has will never change because it has taken roots been won in checking turmoil and quell• in the soil of China and in the hearts of the ing the counter-revolutionary rebellion," people." Li said. The premier said, "We will continue to "This fact shows once again to the whole promote friendly relations with all coun• country and the whole world that the tries on the basis of the Five Priniciples of Chinese Communist Party, the Chinese Peaceful Coexistence, and expand economic government and the Chinese people are and technical co-operation with them on capable of running their own affairs well, the basis of equality and mutual benefit. and maintaining a long-term and stable de• "We will, as always, work with the people velopment in the political, economic and of all countries for peace and development, social spheres. No matter what may happen for the progressive cause of mankind." in the world, we shall unservingly proceed The premier warned that there are still along the socialist road," he continued. The situation in the seven months since some factors existing in Chinese society martial law was put into practice has which may cause instability. The hostile shown, said the premier, that China is forces at home and abroad will not give up stable in a political, economic and social their attempt to subvert China's socialist sense, production and life are in good order, system. And there are some temporary dif• commodity supplies are abundant and the ficulties the country needs to overcome in people are lending a peaceful and happy improving the national economy. "We must life. All this sharply contrasts the chaotic have a sober understanding of all these," he situation last spring. Facts show ever more said. clearly that imposing martial law in parts of Li believed that no matter how the inter• Beijing was a timely, necessary and correct national climate changes, the Chinese peo• decision. It played a significant historic role ple will, under the leadership of the Chinese in stabilizing the situation in the capital Communist Party, steadily push ahead with and the country as a whole. their great cause of building socialism with China, said Li, is focusing on economic Chinese characteristics. development for socialist modernization. He extended his sincere thanks to all ov• The major task at present is to improve the erseas compatriots, overseas Chinese, for• economic environment and straighten out eign friends, and the governments and the economic order and to deepen the re• peole of various countries that expressed form. This calls for a favourable and stable understanding and support for the mea• social and political environment. "Other• sures taken by Chinese government to sta• wise, nothing can be done," he emphasized. bilize the situation. •

4 BEIJING REVIEW, JANUARY lS-21, 1990 EVENTS / TRENDS

tish and the Chinese. Residence Offer; AUK Volte-Face The British side, he added, has also declared that it will hina has expressed great sons who on 30 June 1997 are, by hold back a portion of the surprise over Britain's de• virtue of a connection with Hong 50,000-household quota so as to C cision to grant 50,000 Kong, British Dependent Terri• "give opportunities for those who Hong Kong households full Bri• tories Citizens (BDTCS) under may move into key positions in tish citizenship, calling the deci• the law in force in the Un• Hong Kong in later years," closer sion a gross violation of its own ited Kingdom will cease to be to 1997. It has also called on solemn commitment. BDTCS with effect from 1 July "partners and allies" of the UK On December 20, the British 1997, but will be eligible to re• to follow suit in an open attempt government unilaterally an• tain an appropriate status which, to "internationalize" the Chinese nounced its decision to grant without conferring the right of residents in Hong Kong. 50,000 Hong Kong households (a abode in the United Kingdom, The decision of the British total of 225,000 people) status of will entitle them to continue to government will inevitably full British citizenship covering use passports issued by the gov• create contradictions leading the right of abode in the United ernment of the United King• to divisions and confrontations Kingdom' despite the fact that dom." among Hong Kong residents, the agreement was reached on the The contents and the wording spokesman said. issue of nationality of Hong of the memorandum of the Bri• As a matter of fact, "it has Kong residents in Sino-British tish side, like that of the Chinese already caused consi^derable con• talks five years ago, and that the side, were agreed upon between fusion among Hong\Kong resi• two sides also exchanged memo• the two sides through negotia• dents since it was made public," randa on this basis. tions, the spokesman said. he added. "All these are evident• ly detrimental to the stability "The Chinese government is During the past few weeks, the and prosperity of Hong Kong. greatly surprised at this action British side has on many occa• Anyone caring for the future of by the British government," sions stated that it will continue Hong Kong cannot view this de• said a Chinese Foreign Ministry to abide by the Sino-British Joint velopment with indifference." spokesman on December 30. Declaration and resume Sino- The Chinese government asks "This course of action by the Bri• British co-operation, he noted. the British side to change its mis• tish government is a gross viola• But now the British side, in a taken practice. Otherwise, it will tion of its own solemn commit• volte-face, has unilaterally decid• have to bear the consequences, ment." ed to grant full British citizen• the spokesman said. The Chinese He then quoted the memoran• ship to some Hong Kong resi• side reserves the right to take dum of the British side, which dents in disregard of the rele• corresponding measures, he ad• states in explicit terms: "All per• vant agreement between the Bri• ded. •

put amounted to more than 60 million tons. The output of pig Measures to Improve Economy iron, steel products and iron ore also met their production goals set by the state ahead of sched• r§-lhe Chinese government has China, he said, has already ule. China now ranks fourth worked out measures to made some achievements in among the world's largest coun• T cope with its economic dif• its economic rectification pro• tries that boast an annual steel ficulties, especially two key prob• gramme started last year. Weak production capacity of more lem areas — its sluggish market links in the national economy than 60 million tons. The tran• and poor economic efficiency — such. as energy, raw materials sportation sector has already ful• in the new year. and transportation had main• filled its production quota for Ye Qing, vice-minister in tained a steady growth. the year. charge of the State Planning The annual output of coal in All this has paved the way for Commission, said that the mea• the past year is estimated to have this year's first three months of sures are designed to improve increased by 40 million tons. Ac• industrial production. Ye said. the country's economic structure cording to the State Statistical But, he added that the slack and put it on a more scientific Bureau, the total output has sur• market, overstocking of products and balanced footing. passed 1 billion tons. Steel out• and the downturn of sales has

BEIJING REVIEW, JANUARY 15-21, 1990 5 EVENTS / TRENDS A Boy Sets the Example oung people in China are furiously. He was still in a climb• being called upon to learn ing posture with his right leg Y from the noble spirit of a stretched forward and one of his 14-year-old boy who gave his life hands clenched ar• to save state property two years ound a tiny pine ago. tree. On March 17, 1988, more than To commend his 3,000 people attended the most noble deeds, the touching funeral ever held in Central Committee Ning and some , Prov• of his schoolmates ince. of the Communist battle the monnlain On a Sunday afternoon four Youth League and fire. U SHIJI days before, Lai Ning, a junior the State Educa• middle school student, had just tional Commission finished his homework and decided on May walked outside of his home when 31, 1989, to confer he heard a distant cry: "Fire! on Lai Ning the Mountain fire!" honour of "heroic M Shocked at the news, he rushed youth." Youth immediately towards Haizishan League and Young Mountain to help. Pioneers organiza• The blaze, driven by the wind, tions at all levels posed a threat to a TV ground were called upon to relay station, a gas tank belong• launch educational drive among ing to the local petroleum com• young people publicizing his pany and a large stretch of state- brilliant deeds. The Ya'an Pre- owned forest. fectural Youth League Commit• Lai Ning, some of his school• tee has accepted him posthu• mates and many other people mously as a member of the battled the 30-metre-high flames Youth League and the Sichuan and clouds of suffocating smoke Provincial People's Government for five hours. has recognized him as a martyr. At last, the blaze was brought Lai Ning was born and under control and most of the brought up in an ordinary state property was saved. But Lai cadre's family, the only son of Ning did not come home that his parents. He was fond of read• night. The following morning, ing, which broadened his vision people found him lying dead on and nurtured his ideals. the Haizishan's southern slope He won a first prize for read• where the fire had burned most ing activities in Sichuan when he made it difficult to balance the well are protected and poorly personnel. A specific policy must national books. The economic operated enterprises are stream• be in place to distinguish legiti• rectification and improvement lined or closed down in accord• mate sales from those of illegal programme would be affected if ance.with the industrial policy. businesses to ensure a smooth not enough attention was paid to At the same time, all enterprises and sound circulation of prod• these problems. Ye warned. !! will be guided positively to im• ucts on the market. Major measures to be taken by prove the quality of their prod• —Encouraging enterprises to the State Planning Commission ucts, reduce costs and provide produce more export goods and include: better service to increase their developing the export-oriented —Speeding up the industri• competitive capability. enterprises. The state will sup• al structural readjustment, in j —Improving marketing and port those enterprises in selling which enterprises that perform ii increasing the number of sales ! their products on the interna-

BEIJING REVIEW. JANUARY 15-21, 1990 EVENTS / TRENDS was a member of the Young when he graduated. Pioneers. He liked adventure. He wrote During a discussion about fu• that he wanted to develop mod• Yuan Mu Meets ture careers, many boys at his ern science and technology and school expressed their wish to be• uphold the pioneering spirit to College Students come army officers. reveal the secrets and treasures But Lai said,"I would like to of nature. hina can sustain stability if the Communist Party's be a geologist, just like the well- Lai was a good and well- fundamental line is ad• known geologist Li Siguang." behaved student and was hon• C hered to, said State Council When his teacher asked him oured as an "outstanding Young spokesman Yuan Mu. why, he replied: "There are so Pioneer." He had a high sense of On January 3 and 4, Yuan many big mountains around collectivism and would like to visited Beijing University fresh• here. I'm sure there would be so lend a helping hand to others at men receiving military training many treasures underground. I any time. He was interested in at the Shijiazhuang Army Aca• should discover them to make a painting and calligraphy and demy, on behalf of the State contribution to my motherland." once won first prize in a county Council and Premier Li Peng, He used his Sundays and holi• calligraphy contest. and exchanged views on the days to collect various mineral Last October, , domestic and international si• ores and stone specimens. He widow of the late premier Zhou tuation with the students. even presented a part of his col• Enlai, wrote an article in memo• Reviewing the domestic situa• lection to his primary school ry of Lai. She said that Lai Ning tion after the quelling of anti- had been brought up since child• government rioting last spring, hood under the care and guid• he said that the national situa• ance of the Communist Party. tion and people's morale have She said: "The Party's hopes remained stable and social order and demands for the young ge• has returned to normal. neration produced a profound ef• "This shows that it is an irrev• fect on the development of Lai ersible historical trend that the Ning's ideology through the edu• Chinese people have chosen the cation he received at school and leadership of the Chinese Com• from society as well as from his munist Party and the socialist family. road," Yuan said. "The Party earnestly hopes the He noted that if leading offi• young generation will have noble cials at all levels take the lead in ideals, high morale, more know• solving problems in response to ledge and good discipline so that people's urgent calls and if the when the socialist cause is passed Party's fundamental principles down to them from their fore• and policies remain stable and fathers, bright prospects will be continuous and are comprehen• opened up for China. Lai Ning sively and correctly adhered was very typical of this new ge• to, China can sustain stability, neration." • gradually overcome existing un• stable factors and steadily devel• tional market. profits to the state from those op socialism, he said. —Stimulating the initiative of enterprises must be ensured The new leading body is win• large and medium-sized enter• through a corresponding policy ning people's support and trust prises. The state will guarantee which will be worked out. by its actions. Yuan said, adding to provide all necessary outside ^-Launching a nation-wide that it is the Chinese people's conditions for production by key emulation drive to increase prod• happiness to have an army enterprises in coal, iron and uction in all the enterprises. which is loyal to the Party, the steel, electrical power and pe• Management will also be streng• people and socialism. troleum industries. At the same thened to fight against the waste Yuan also analyzed China's time, the enterprises will guaran• of funds in the new year in order economic situation, saying that tee their production in line with to cut China's expenditures by 5 China has made tremendous state planning. As well, taxes and percent over last year. • achievements in economic de-

BEIJING REVIEW, JANUARY 15-21, 1990 EVENTS/TRENDS velopment, which have attract• march along the socialist road it ties to jeopardize China's secur• ed worldwide attention in the has chosen regardless of how the ity, honour and interests. past decade of reform and open• international situation changes. The Municipal Public Securi• ing to the outside world. With lessons drawn from the ty Bureau official said since its i The gross national product in• country itself and the world, founding, the "FDC" has been i creased at an annual rate of China will steadfastly and con• active in carrying out sabotage i about 10 percent and registered sistently strengthen the building activities against the people's i a 2.5-fold growth during the last of the Chinese Communist Par• government of China. The decade. The growth rate was ty and adhere to the Four Car• "FDC" has deceived and roped unprecedented in China's four- dinal Principles, continue to in some Chinese studying decade history and compared fa• fight bourgeois liberalization, abroad, made contacts with hos• vourably with many other coun• stick to socialism and people's tile elements in and outside tries in the period, Yuan dictatorship in reform and open• China, expanded the reaction• claimed. ing to the outside world, unite ary organization and tried hard But China is facing severe dif• the people of the entire coun• to infiltrate into China, he said. ficulties now and people's guard try and build socialism with They have collected informa• should never be lowered on eco• Chinese characteristics by self- tion, concocted rumours and nomic structural imbalance and reliance and hard work. • forged an Overseas Edition of inflation, which came into being People's Daily to carry out reac• in the second half of 1984. tionary propaganda in an at• The economic rectification Beijing Censures tempt to instigate the masses drive has achieved initial ef• to overthrow the people's de• fects, and the ways and means Fugitives in Exile mocratic political power and for overcoming the present dif• the socialist system, the official ficulties have been found, he r • ^he "Front for Democracy said. said. I in China" (FDC) is a reac- Wan Runnan and others "With redoubled efforts, tionary organization de• made contact with an espionage China will certainly get out of signed to topple the Communist agency in Taiwan and formed its difficult economic situation Party leadership, overthrow the a delegation to visit Taiwan to j and the goal of quadrupling the socialist system and turn China seek financial support, he ad• gross national product and ena• from a people's democratic re• ded. bling people to live a comfort• public into a bourgeois republic, able life by the end of this cen• "In fact, they have associated said a leading official of the Bei• themselves with the Taiwan se• tury will be quaranteed," he jing Municipal Public Security said. cret service," the official said. Bureau on January 7. According to the official, peo- i The Eastern European situa• China bans any "FDC" activ• pie who have taken part in activ• tion, he said, has had a serious ities on Chinese territory, the ities of the "FDC" will be dealt impact on the Eastern and the official said. with in different ways: Western world and "will exert an impact on China to some de• The "FDC" was founded on The few founders of the gree." September 22, 1989 in Paris, "FDC" like Yan Jiaqi who had Yuan told the students that France, by Yan Jianqi and his incited, plotted and directed although major changes have like, with the connivance and the turmoil and counter• taken place in Eastern Europe, support of overseas reactionary revolutionary rebellion in the the international situation on forces. They are criminals want• country last spring are wanted the whole has not changed. It ed by the Chinese public securi• by the Chinese public security features a move from tension to ty departments, the official said. departments, and they must be detente and from confrontation A spokesman for the Exit and dealt with according to the Cri• to dialogue. Entry Bureau of the Chinese minal Law. • This will enable China to Ministry of Public Security an• Ordinary members of the strive for a fairly long peaceful nounced the same day that the "FDC" must withdraw them• international environment in or• passports held by Yan Jiaqi, selves from the organization as der to concentrate on its own Wan Runnan , and Chen Yizi soon as possible and stop any economic construction. have been revoked according to activites assigned by the "FDC" He stressed that China has law for their role in initiating in exchange for lenient treat• never yielded to pressure from and founding the "FDC" over• ment. outside and will steadfastly seas and their continued activi• •

8 BEIJING REVIEW, JANU.^RY 15-21, 1990 EVENTS / TRENDS

plants with an annual prod• uction capacity of 20 million tons. Production bases for 'Basket' Project Bears Fruit milk, beef and poultry have also been built in the nor• nhe project to fill the food The "food basket" project, theast and central part of the baskets of 200 million set up by the Chinese govern• country and in some southern T urban dwellers has met ment, aims to build animal provinces. with initial success, said Liu breeding centres, fodder pro• Every locality has made the Jiang, China's Vice-Minister cessing plants and storage- "food basket" project a priori• of Agriculture. transportation systems in ma• ty because it concerns every The supply of meat, fish, jor Chinese cities to provide family. milk and poultry products in• ample supplies of meat, fish Before 1989, Jilin, a creased in 1989 and prices and vegetables for urban Chinese northeastern prov• were stable with some lower dwellers; ince, had to import pork from than 1988, Liu said in Beijing Since the project was im• other provinces. But after the on December 27. plemented early last year, the "food basket" project was es• According to the latest sta• central government has grant• tablished, the province used tistics from the Ministry of ed more than 220 million technology that could bring Agriculture, China produced yuan in loans and constructed about obvious increases in 25 million tons of production. For the meat, 7.04 million tons first time, pork output of poultry and 4.58 could meet the demand million tons of milk in 1989. last year, all of which The municipalities have increased greatly of Beijing, Tianjin and over 1988. Shanghai have invest• Meanwhile, aquatic ed 800 million yuan to production continued build pig and poultry to rise in 1989 after breeding centres, most China became the third of which have started largest fishery produ• production. The supply cer behind the Soviet of pork, mutton and Union and Japan, with beef now in storage can a total catch of 11.2 meet the demand until million tons, 600,000 next May. tons over 1988. China However, China may is expected to become face a shrinking supply the second largest fish• of such products due ery producer, Liu said. to a decrease in corn The vegetable supply production in the nor• has also increased with theast and the present higher quality and low• slack market. The Min• er prices. In spite of istry of Agriculture is the current cold weath• Dwellers in Qingdao, a coastal city in eastern China, are buying calling for the wides• er, Beijing has a good sea crabs in market. CHEN ZONGLIE pread use of technolo• supply of green veget• gy in major production ables in both free and state- 1,370 animal farms, a number areas. Corresponding policies owned markets. The consen• of forage grass and vegetable are being mapped out to sta• sus in China is that prices over seed production bases, super• bilize the vegetable growing the last year or so have been vising stations with advanced areas to avoid a decrease in the lowest in vears. testing equipment and fodder production in the new year. •

BEIJING REVIEW, JANUARY 15-21, 1990 9 INTERNATIONAL Qian Qichen on the World Situation

tion does not mean world stabil• World attention has been focused on a rapidly changing ity. The various factors leading global situation. Chinese Foreign Minister Qian Qichen, I to turbulence have not been eli• in an exclusive interview with Chinese weekly magazine minated, and under certain con- "Outlook"'s Lin Hai, expounds upon the world situation, I ditions, an extremely turbulent which has been undergoing profound changes. —Ed. I situation may appear in some re- i gions. Hegemonism, power poli- ^ tics and interference in the inter• Outlook: There have been sever• nal affairs of other nations and al notable events in the develop• the imposing of one's will upon ment of the world situation dur• others are still common. ing the 1980s. Would you please There has been much concern comment? over the recent drastic changes in Qian: The escalation of the arms Eastern Europe that have ac• race between the United States cumulated new elements of and the Soviet Union and the instability in East-West relations intensifying of regional conflicts and will produce a far-reaching early in the decade once caused impact on the European situa• extreme tension in the interna• tion as well as the over-all pat• tional situation. However, both tern of international relations. countries failed to change the Another threat to world peace rough military equilibrium be• and stability is marked by the tween them but found them• ever widening gap between selves in turn forced to bear a South and North economies and heavy economic burden from that because of the irrational their rivalry. They also suffered international economic order, defeats in their several invasions funds are flowing not to devel• against other nations. And this oping but developed countries, proves that hegemonism and causing polarization between the power politics will get nowhere. rich and the poor, By the mid-1980s, the imbal• Qltln QUiieii, XUt CHAO j Outlook: While the international ance of the world economy and has produced fruits on arms con• I situation is moving towards de- the rise of the new technologi• trol. The two superpowers signed i tente, struggles between differ- cal revolution had changed con• the intermediate nuclear force : ent social systems and ideologies siderably the relative strength (INF) treaty to eliminate all have been more acute. Do you among some major countries and intermediate-range missiles and I think detente will be adversely relatively degraded the positions there has been progress in the I affected? of the United States and the So• negotiations on the reduction Qian: Some politicians in the viet Union. The trend towards a of strategic, conventional and capitalist world have never con• multipolar world was becoming chemical weapons. Regional con• cealed their attempts to bring so• increasingly evident. flicts are calming down with cialist countries into the orbit of The situation prompted the their political settlements in capitalism. United States and the Soviet sight. Generally speaking, the During the mid-1980s the in• Union to resume after a six-year elements of war are decreasing, ternational situation tended to suspension their summit meeting though still existing, while the relax and exchanges between in 1985 and almost an annual elements of peace are increasing. countries with different social summit afterwards. And it has become possible to see systems increased. This was a East-West tensions tended to a relatively long period of peace. good thing. However, because relax as a result of dialogue be• However, the relaxation of the the socialist countries met with tween the superpowers, which superpowers' military confronta• difficulties in the reform and de-

10 BKIJING REVIEW, JANUARY 15-21, 1990 T

INTERNATIONAL velopment process and made infringing upon their strategic velopment perspectives of the re• some errors in policy decisions, interests. gion? the superiority of the socialist After the Malta summit, the Qian: Since the 1960s the world system was not fully realized. United States and the Soviet has become aware of the econo• There appeared an ideological Union will step into an era when mic vitality in the region. Up to trend that socialism had suffered there will be less confrontation now its average annual growth a "big failure" and that capital• but more reconciliation and co• rate has been 8 percent, higher ism could "win without fight." operation between themselves. than other regions. The econom• This was acclaimed by someone Because of the drastic changes ies of the Asian "four little dra• as a historic opportunity to spur in Eastern Europe the United gons" (Singapore, South Korea, the so-called peaceful evolution States is more on the offensive Taiwan and Hong Kong) have in socialist countries. while the Soviet Union is more developed markedly. The econo• In fact, socialism has not in the defensive and is retreating. mic strength of the Association failed and there is no ground The two superpowers, however, of Southeast Asian Nations has to claim a success of capitalism still remain rivals because of gradually increased, as has its either. The reality is the coexist• their different long-term strateg• economic activities. The scale of ence of countries with different ic goals. China's economic development social systems, and the norm for Outlook: What are your predic• has rapidly expanded and its such a coexistence is the Five tions for the international politi• speed of development increased Principles of Peaceful Coexist• cal situation of the 1990s? because of its policy of reform ence. Qian: At the end of the 1980s the and opening to the outside world. The easing of tension, howev• international situation experi• The vast expanse of land and er, does not mean an end to con• enced its most profound changes rich resources, especially that of flicts and is not tantamount to since World War II. People all manpower, are characteristics stability. With the general trend over the world are naturally con• and advantages of the Asian- towards detente the struggle be• cerned about how these changes Pacific region. To adapt to the tween different social systems will influence world peace and international competition, most and different ideologies will be• the development of mankind. At of the Asian-Pacific countries come more complicated and this time, it is difficult to predict are constantly improving their more acute. If their relations are the political setup of the 1990s. investment environment, enh• not handled with care, region• What is apparent is that the US- ancing the quality of their labour al' turmoil and world instabili• Soviet bipolar system, marked by forces, drafting and implement• ty will result, and, in the final the East-West Cold War formed ing economic, scientific and analysis, will be unfavourable to after World War II, by the con• technological development stra- j the people of all countries. frontation between the two blocs tegies conformable to the condi- j Outlook: After the US-Soviet and by the hegemonic struggle tions of their countries. Malta summit held in December between the two superpowers, Achievements have been re• 1989, there were different views will be challenged. There will be markable in their introduction on the future of US-Soviet re• a stronger trend towards a multi• of foreign funds, import of adv• lations. What's your opinion on polar world and new centres of anced technologies, development those relations? power and regional co-operative of labour-intensive industries, Qian: People tend to think that organizations are expected to and expansion of processing and the Malta summit is reminiscent emerge. export industries. In the wake of of the Yalta conference of 1945. The economic competition continuous growth of the world History cannot be repeated and among the United States, West• economy and the keen competi• Malta is not Yalta. At the Yalta ern Europe and Japan will be- tion on the international market, conference, leaders of the United corne more heated while in countries in the region are shar• States, the Soviet Union and Bri• the third world, regional co• ing the demands and wishes to tain mapped a blueprint for in• operative organizations are ex• promote regional economic co• ternational politics after World pected to develop and small- operation and trade exchanges. War II. At the Malta summit and medium-sized countries will Together with the economic re- the United States and the Soviet strive for more say in interna• gionalization and integration Union, with deep concern over tional affairs. trend that is emerging wordwide rapid changes in Eastern Europe, Outlook: The Asian-Pacific re• and is adding momentum to the sounded each other out on their gion is becoming increasingly region's development, the Asian- attempts to prevent the situation important on the world stage. Pacific countries have raised var• from slipping out of control, thus Would you comment on the de• ious kinds of proposals on the

BEIJING REVIEW, JANUAKY 15-21, 1990 11 INTERNATIONAL pie's just cause. Since the Arab summit in Amman, Jordan, in A Significant Step 1987, almost all Arab countries have restored diplomatic relations with Egypt. Last May, Egypt's Towards Arab Unity membership to the Arab League by Lin Jiaoming and Wu Wenbin was restored at the Arab summit in Casablanca. Following Libya, Syr• f-j-^owards the end of 1989, in• co-operation constitute a great chal• ia resumed diplomatic ties with spiring news came from Cai• lenge for the Arab world. But Arab Egypt, thus ending the split in the ro and Damascus that Egypt countries have responded to the Arab camp and pushing their fra• anTd Syri a had resumed their di• challenge. Last year, two new Arab ternal relations on to a new stage. plomatic relations after 12 years of regional economic organizations — Noticeably, the normalization of suspension. the Maghreb Arab Union and the Egyptian-Syrian relations has oc• It marked a significant step not Arab Co-operation Council — were curred at a critical time when a only for the two Arab nations but set up. In- all, the Arab world has political settlement is being sought also for the entire Arab world. The three regional federations, in North to resolve the Middle East problem. restoration of Egyptian-Syrian rela• Africa, West Asia and the Persian The Arab countries have streng• tions conforms to their common in• Gulf region. The new situation fa• thened their solidarity, reached terests and will have a positive ef• cilitated the reconciliation and re• consensus on a political settlement fect on strengthening Arab unity. sumption of diplomatic relations of the Palestinian question and Moreover, the normalization of between Egypt and Syria. have strongly demanded the hold• their relations will certainly influ• History in the Middle East has ing of an international Middle East ence the entire situation in the Mid• proved that relations between fra• peace conference under the spon• dle East in a positive way. ternal Arab countries, which are sorship of the United Nations. The At the end of the 1980s, rapid linked by religion, race and lan• Palestine Liberation Organization changes took place in the world si• guage, cannot be obstructed. In (PLO) has agreed to direct talks tuation. The two superpowers 1977, because former Egyptian with Israel on the condition that it moved towards detente from con• President Mohamed Anwar el- is represented at any future Middle frontation, most "hot-spots" cooled Sadat visited Israel, diplomatic re• East peace conference. Egypt has down, international politics took on lations between Egypt and Syria mediated among the PLO, the Un• an increasingly multipolar aspect deteriorated and finally broke off. ited States and Israel to promote f and the international economy Consequently, the Arab world wit• PLO-Israeli dialogue. In prepar• tended to achieve regionalization nessed a heavy split. ation for PLO-Israeli dialogue, and integration. However, Egypt and Syria con• Egyptian, Israeli and US foreign The planned European unified tinued to pursue the same basic pol• ministers are likely to hold a meet• market, North American free trade icies in protecting national interests ing this month in Washington. The zone and Asian-Pacific economic and supporting the Palestinian peo- trend towards dialogue has ap- j formation of a mechanism for covering the whole region will Outlook: How can China use its regional economic co-operation. be incomplete as China's role in diplomacy to create a good en• There are no opposing military that part of the world is well vironment for deepening reform blocs in this region, but there are recognized. and further opening to the out• i differences among the region's Regional co-operation has a side world? countries in social systems and long way to go despite its bright Qian: The foreign policy is the ideologies. Their economic devel- future. In achieving real progress extension of China's domestic ! opment is imbalanced and their in this regard, regional peace and policies. As China in the coming languages, religions, customs and stability will be a vital condition two or three years will rectify its nationalities are different. It is and all countries in the region economic order, improve its eco• I widely believed that unlike the should strictly abide by the prin• nomic environment and further integrated European Communi• ciple of peaceful coexistence and deepen its reforms in an effort to ty, the form to be taken or a promote economic relations on achieve economic development mechanism to be established for the basis of equality and mutual in a sustained, stable and co• economic co-operation in the benefit. A co-operative mechan• ordinated way, China's primary Asian-Pacific region will follow ism of the region should be open task in the diplomatic sphere is a loose style. China holds that and should not be an exclusive to create a stable, peaceful and without its participation, a group, and protectionist mea• favourable international envi• politico-economic organization sures should not be practised. ronment to safeguard its national i

12 BEIJING REVIEW, JANUARY 15-21, 1990 INTERNATIONAL

peared in the 40-year Arab-Israeli dispute. Restoration of Egyptian- Syrian diplomatic relations and im• provement of Jordan-PLO and Regional Conflicts Ease Syrian-PLO relations will undoubt• edly increase Arab strength in the dialogue, putting new pressure but Snags Still Exist upon Israel. The situation that Is• rael benefited from a split Arab by Rui Yingjie world in the past will soon end. Both Arab countries and the rif^he past year has seen further drew its troops from Afghanistan; international community have I progress in finding politi- Cuba began the process of pulling praised the resumption of -M. cal solutions to conflicts in its army out of Angola, and South Egyptian-Syrian relations. Progress world "hot-spots." But the current Africa withdrew its soldiers from in the Middle East peace process over-all situation is complicated Namibia. depends not only on outside influ• and unbalanced there have been Except for Viet Nam, which has ences but also on the joint efforts of breakthroughs in some regions, refused to completely withdraw all Arab countries. Syria is an im• stalemates in others, confronta• from Kampuchea under the super• portant player in the Arab confron• tions coupled with dialogue, and vision of international organiza• tation with Israel. In joint Arab efforts to achieve a political settle• even intensified fighting. tions headed by the United Na• ment in the Middle East, it is criti• In 1989, the most prominent tions, last year was marked by the cal for Egypt, Syria, Jordan, Pa• breakthrough in areas of regional pullout of foreign troops from con• lestine and Lebanon to co-ordinate conflict was in southwest Afri• flicting regions. This was one of their policies and increase consulta• ca. November's successful general the major factors in easing world tions. The unanimity of the Arab elections in Namibia showed that tension. countries will certainly play posi• independence for the last colony Second, countries and groups tively in political negotiations. on the African continent is ap• of states bordering on "hot-spots" Only by relying on their solidar• proaching quickly. were active in the reconciliation ity and jointly meeting opportuni• Despite some internal frictions process and were supported by the ties and challenges at the end of this which continue to exist in Angola, United Nations. For instance, the century and the beginning of the the end to its 13-year-old war ap• Association of Southeast Asian next can Arab nations achieve pro• Nations (ASEAN) arranged the ! gress on regional stability and na• pears to be in sight as a result of tional economic development. No work by African heads of state international conference in Paris matter what complex situations the during last June's summit. to discuss the Kampuchean ques• future holds, the unity of the Arab Last year, some new factors tion. ASEAN played a leading role nations will always be the corner• proved to be favourable in easing in urging the UN General Assem• stone of their efforts to strive for tensions in the world's "hot-spots." bly to adopt a resolution by an peace and seek development. • First, the Soviet Union with- unprecedented 124 majority votes, \

j interests and state security. have to take seriously into their resume and defend its legal sta• j China's second task is to facil- consideration. China will never tus in international economic or• I itate its further opening to the change its open policy, and its ganizations and smooth the co• outside world. A current issue in door will remain open to the out• operation and exchange chan• this area is the economic sanc• side world. In this respect, China nels. tions imposed by Western coun• hopes that other countries do not Countries of today's world are tries since last June, which have close their doors on China. dependent upon one another .but resulted in damage not only to And China's third task is to at the same time there are many China, but also to those who ini• devote more diplomatic efforts conflicts. Mutual respect, har• tiated the measures. In the past to the co-ordination with its de• monious relations and recogni• few months, more and more velopment in foreign economic tion of the diversity of the world knowledgeable politicians and and trade relations. It will de• is the only realistic attitude. To farsighted entrepreneurs in the fend its legitimate rights in eco• maintain peace and stability of world have come to realize that nomic relations with other coun• the world it is high time for all it is neither sensible nor possible tries, which should be built on countries to make joint efforts to to exclude and isolate China, the basis of equality and mutual establish a new international pol• since China's strategic position benefit, and oppose various dis• itical and economic order based and great potential are the real- criminative and limitative prac• on the Five Principles of Peace• ; ity that the Western countries tices. China will also strive to ful Coexistence. •

BEIJING REVIEW, JANUARY 15-21, 1990 13 INTERNATIONAL demanding the withdrawal of Viet• of the keys to easing regional ten• in regional "hots-pots," making the namese troops from Kampuchea. sions. process towards settlement long Arab heads of state also met and In recent years, the United and difficult. Elements contribut• set up a tripartite committee to act ing to upsets include conflicts over States and the Soviet Union have as mediators for rival groups in the interests of hostile countries Lebanon and to settle Arab-Israeli readjusted their regional policies. and disputes 'among different pol• But judging from the Soldiers from the Soviet Union wave jobilantly as they leave itical, social and religious forces, Afghanistan in 1989, a decade after the invasion by Soviet situation in 1989, the often within a single country. The aimed forces. superpowers are con• clearest examples of this phenome• tinuing their fight for non were seen last year. superiority. In some re• In Afghanistan, the question is gions fighting has even whether a broad-based coalition intensified. government can be set up after the In the six months af• Soviet-troop withdrawal. Disputes ter Soviet troops with• over the question have led to a drew from Afghanis• tan, Moscow supplied civil war. the Kabul regime with The Arab-Israeli dispute is large amounts of goods centred on the issue of land. The and materials, of Palestinian people need to return which 75 percent were to their homeland but Israel refus• weapons and ammuni• es to retreat from the occupied ter• tion. ritories. The United States, Iran and Iraq are in a dispute for its part, continues over the Shatt-al Arab waterway, to keep up its regular but their hostilities are deeply flow of weapons sup• embedded in the past. Left over plies to the Afghan from history are disputes between resistance forces. Wea- Persians and Arabs and religious conflicts in the hope of speeding up the Middle East peace process. Leaders from 20 African coun• tries gathered in Zaire to carve out a ceasefire agreement between warring factions in Angola. Lead• ers of five Central American coun• tries held two summit meetings and reached agreement on ending the civil war in Nicaragua. A ge• neral election is planned for this year in that Central American country. Third, countries involved in conflicts in "hot-spots" have made compromises and tried to end their disputes through political settle• The second informal conference on Kampuchean problem opens in Jakarta, Indonesia on February ments. 16, 1989. In Lebanon, after more than 14 pons include Stinger missiles. differences between the Shiites and years of scrapping. Christian and In December, the United States Sunni Moslems. Moslem parliamentarians finally invaded Panama, an action that The international situation is signed a national conciliation mirrored by these regional con• agreement known as the Taif Ac• violated the norms of international cord. relations and aggravated the situa• flicts. While it is difficult to get rid Iran and Iraq are gradually in• tion in Central America. The Un• of old animosities, new problems creasing their oil output and us• ited States, having promised to will inevitably appear. However, ing the money to reconstruct their halt military aid to Nicaragua's when looking towards the future, war-torn cities, ports and oil refi• anti-government forces, instead political settlement of these region• neries. provided US$50 million worth of al conflicts has become an irresis• The willingness of the superpow• "humanitarian assistance." tible trend despite the complexity ers to pull out of "hot-spots" is one There are many factors involved of the process. •

14 BEIJING REVIEW, JANUARY 15-21, 1990 CHINA Experts Look at the 1990s Beijing Review has invited a number of specialists from different fields of study to talk about the tasks facing China in the new year and beyond. It is hoped that their thoughts will help our readers better understand the tasks facing China in economics, politics, science and technology, and culture.—Ed. While processing industry, rural enterprises and urban small busi• nesses forged ahead, the develop• Retrenchment: A Boon to Reform ment of large energy and infras• tructure enterprises slowed down by Liu Guoguang* considerably. The situation picked up last year, but the problems are far and panic buying; it was intend• from being thoroughly solved. ed to support, not contravene, the New problems have occurred. effort of deepening the reform These include a shortage of enter• and further opening to the out• prise funds, th^ inability to keep side world. up payments between enterpris• After a year's intensive ef• es, slow circulation of funds, and fort, expected results have been weak market demand. Factories achieved. The over-heated indus• producing household electrical try has started to cool down, the appliances and other durable rate of price increase has gradual• consumer goods were the first to ly been reduced, the recovering be affected, which had an ad• of money has improved and agri• verse impact on the state re• cultural production has taken a venue. turn for the better. All these problems need to be Ita Gnoguang. XU£ CHAO Many fundamental problems, solved without delay. Otherwise however, remain unsolved due to the policy of reform and open• ripihe June 1989 turbulence in the lack of time and effective ing to the outside world will be I Beijing has caused much measures. The key problem, most derailed. The solution in 1990 will confusion among the economists agree, lies in the fact be to carry out the principle set world's China watchers. Many that general demand surpasses forth at the Fifth Plenary Session are asking one question: Does supply. This discrepancy has of the 13th Party Central Com• China's rectification of its econo• eased somewhat, but because the mittee: redoubling the effort to mic order mean relinquishing the problem has been building up improve the economic environ• policy of reform and opening to over many years, it cannot be ment and deepen the reform. The rooted out overnight. The general goal of rectification, therefore, is the outside world? imbalance has caused a real fi• to create favourable conditions Economic rectification is, in nance crunch—80 billion yuan in for implementing the policy of fact, nothing new. Se^ forth at the domestic debt, US$40 billion in reform and opening to the out• Third Plenary Session of the 13th foreign debt and several hundred side world. Party Central Committee in 1988, billion yuan of residents' surplus In 1990, the work to rectify the the policy is designed to correct purchasing power in the forms of economic environnient, straigh• the disorder occurring in econo• savings deposits, cash and bonds. ten out the economic order and mic restructuring manifested by A second problem is the lopsid• deepen the reform will be a three- inflation, over-heated demand ed structure of the national econ• sided task: The author is vice-president of the omy marked by stagnant agri• First, persisting in the policy Chinese Academy of Social Sciences. culture and runaway industry. of curtailing society's general de-

BEIJING REVIEW, JANUARY 15-21, 1990 CHINA mand, so as to cut investment in sion. Therefore, a certain degree overcome and the economy will capital construction, consump• of centralization of the economy be restructured so that China can tion funds and financial budget will be stressed; administrative achieve sustained, stable and down to size, increase revenues means will be used to restrict en• co-ordinated economic develop• and reduce expenditures. Devel• terprises, such as a limit to credit ment. opment funds will be provided to and control of off-budget invest• In addition to the foregoing, selected large and medium-sized ment through bank grants. Even, the deepening of reform requires industrial enterprises and com• these measures, however, are far two steps. The first is to establish mercial and foreign trade depart• from enough. China should also a macro-control mechanism and ments on condition that credit establish such economic regula• the second is to establish a self- will be limited. The austerity pol• tions as are necessary to achieve restricting mechanism on a mi- icy may bring difficulties to some sustained, stable and co• croeconomic basis. Specifically, enterprises but, it is by far the ordinated growth in the econo• we must do a good job in enter• only alternative available, and is my while avoiding sharp econo• prise and market reform. While the price to be paid for past mic fluctuations. continuing to improve the con• mistakes. For China, the belt- Such erratic economic fluctua• tract system, appropriate ways tightening is no empty talk; fail• tions have taught China its most and means will be explored to ing to do so will mean retracing bitter lesson in its 40-year histo• separate government functions the old ways of 1986 and 1987, ry. They were caused by, first, an from enterprise management and when inflation worsened. impatience for quick results re• ownership from management Second, continuing to restruc• flected in the former policies and, rights, so that enterprises can ture the economy. In regard to second, the old economic system stand on their own and assume investment patterns, the state of "eating from the same big ultimate responsibility for profits will give support to enterprises pot," under which enterprises and losses. The market price re• whose products |have a ready suffering losses could always form, halted in times of inflation, market, particularly those in count on state subsidies no mat• will be put back on the agenda energy, transportation and com• ter what the cause. Snowballing because the economic rectifica• munications. The state will reso• consumption and shortage of in• tion has provided the ideal oppor• lutely cut back on inefficient and vestment capital were thus una- tunity by bringing down infla• tion. A good example redundant enterprises. Continuing to control capital construction investment while vigorously de• At the same time, in• veloping energy sources. Drawn hy LI SHIJI of this was the price dustrial and commer• reform in passenger cial enterprises will transport last year. If be pushed to im• distorted prices are prove their manage• not corrected, econo• ment, raise the quality mic structural adjust• of products, and devel• ment will be affected, op new varieties by tak• and China's economy ing advantage of a will be hindered. At the newly emerged buyers' same time, the tax and market. bank credit systems Third, persevering in will also be revamped, the policy of deepening and the current sys• the reform. During the tem whereby enterpris• reform of the last few es, once granted bank years, localities and en• loans, are held solely terprises have been responsible for their granted independence own surpluses and loss• in management and al• es will be converted lowed to pay less taxes into the system of tax and share of profits to distribution. All this the state. On the one will enable China to es• hand, this has helped boost the voidable. Major efforts will be tablish a macroeconomic control revenue, but on the other hand, it made to tackle both problems mechanism and achieve consoli• has resulted in an uncalled-for during the three-year period of dated, long-term results in econo• mic rectification. • dispersal of financial and mater• economic rectification. The eag- ial resources and market confu• ernfss for quick-results will be

16 BEIJING REVIEW, JANUARY 15-21, 1990 CHINA proving production conditions. In 1989, agriculture had a good harvest, and, if there is no excep• tional natural catastrophe, with more effort, the 1990 cereal Steadily Developing the Economy production output may surpass the record high level of 1984. by Zhou Zhiying To keep the industrial produc• tion at a proper growth rate and ensure that the focus of work is especially in the year of 1990 in product mix readjustment and which is decisive for the fulfil• economic efficiency. Active ef• ment of the task of improvement forts will be made to increase the and rectification of the economy. production of energy and raw The following would be the focus materials in short stipply. In of work: light and textile industries, the To steadily increase the ma• production of necessities will jor agricultural production out• be ensured, the manufacture of put of such items as grain and products in excessive supply will cotton. At present, the various be reduced, the production of ne• localities are firmly implement• cessary new product varieties in• ing agricultural policies and creased. In the machine-building and electronics industry, high Zhoo Zhiying measures; they focus on stabiliz-

t the recent Fifth Plenary Session of the 13 th Central ACommittee of CPC, it was decided that economic rectifica• tion and improvement would be basically completed in three years or more, beginning in 1989, and would focus on the follow• ing: the gradual reduction of in• flation and elimination of the financial deficit, control on the scale of credit and money supply, readjustment of industrial struc• ture and improvement of econo• mic efficiency, maintenance of moderate economic develop• ment, and the deepening and im• Growth of industrial production will be kept at a proper rate by focusing on readjustment of product provement of all reform mea• mix and economic efficiency. Drawn hy 11 SHljl sures. At the same time, it was ing and further improving the energy cost production will be stressed that, based on the exper• household contract responsibility reduced and the technological ience and lessons of the econo• system which links remuneration equipment for basic industrial mic activity of the past 40 years, to output, developing various services developed. With ongoing a policy of continuity, stability forms of agricultural service sys• economic rectification and im• and co-ordination for economic tems, and applying practical provement, finances have be• development should be adhered agro-technical results which can come flexible, the strain on ener• to both during the period of eco• rapidly increase production out• gy and raw material supply grad• nomic rectification and improve• put. Local financial resources ually relaxed and the transporta• ment and after its completion. should first be put into agricul• tion load eased. All these factors are favorable to increase the The author is deputy director of the tural production and farmers en• Economic Research Centre under the couraged to increase their input production of goods in short sup• State Planning Commission. and accumulation along withim- ply. Accordingly the related de-

BEIJING REVIEW, JANUAKY 15-21, 1990 17 CHINA

both of which were the direct re• sults of inconsistent policies. Some• times, when we unduly emphasized Scientific and Technological that science and technology should serve the country's economic con• Development Requires a Stable Policy struction, we neglected basic re• search; at other times we only ad• vocated basic research, bringing a by Zhou Guangzhao large number of scientists to de• vote themselves to pure academic research. Lacking a clear under• the main force in socialist construc• standing about the mutual reliance r tion. The endeavours of several ge• s between the development of science nerations of scientists have brought and technology and the demand of about remarkable achievements. A the social economy, we often at• series of scientific and technologi• tended to one and lost sight of the cal problems have been solved for other. This is a profound lesson social and economic development which we must keep in mind. and national defence and a great many new talents have been In 1987, the Chinese Academy trained. We are proud of these of Sciences, in accordance with the achievements. principles and strategies of the Par• An old Chinese saying goes: "At ty since the Third Plenum of the 40, one begins to understand the Uth Party Central Committee, world." So it is especially signifi• summed up its historical exper• Zhou Giungzhao cant to review our past pursuit and iences and defined the principal explorations on the 40th anniver• guideline for the academy as "mob• r • ihe first year of work for sary of our academy. On this occa• ilizing and organizing the major re• I Chinese scientific and tech- sion, I am reminded of the instruc• sources force of the academy to nological workers in the 1990s tion the late Premier Zhou Enlai build the national economy, and coincides with the 40th anniversary gave to my predecessor. Zhou said concurrently, maintain a small and of the founding of the Chinese Aca• the Chinese Academy of Sciences capable staff to carry out basic re• demy of Sciences. was most likely to mike mistakes search and high technology stJa- The past 40 years saw the rapid' on two questions: one was the rela• dies." Although, at the time, there was a tendency to overstress science development of China's science and tion between theory and practice and technology's service to the na• technology. Working hard in var• and the other was the policy to• tional economic construction, the ious fields of research, industry, wards intellectuals. Today, we find academy did not neglect basic re• agriculture, national defence and his guidance still helpful and in• structive. search. Now this principle has been education, Chinese scientific and proven correct. It conforms to the technological workers have become In the past 40 years, the Chinese Academy of Sciences has under• objective law. Facts show that only by a policy based on realism and The anthor is president of the Chinese gone its ups and downs, times of Academy of Sciences. prosperity and times of depression practicality and only by proceeding

partments are strengthening in agriculture, energy and com• portant projects to key projects. the management of production, munications. The technological Waste and loss in construction further improving the enterprise renovation and transformation will be resolutely banned and ef• contract responsibility system should be devoted to economiz• ficient investment encouraged. and trying their best to stimu• ing on energy and raw materials, To tighten finances and loans, late circulation in order to keep improving product quality and and be determined to live a fru• a suitable industrial growth rate expanding product varieties in gal life for several years. In fi• in the new year. short supply. Construction of nances, a major effort should be To continue reducing invest• office buildings, hotels and audi• made to increase income, reduce ment of fixed assets and to read• toriums will be strictly forbid• and control expenditure, oppose just the investment structure. den. In principle, no new pro• extravagance and waste, reso• The fundamental method is to cessing industry items will be put lutely persist in thrift and econo• reduce investment in general into operation any more. Pro• my, and reduce the financial de• construction and make a corres• per measures will be adopted to ficit. In credit, strict control of ponding increase of investment transfer investment from unim- credit and money supply will be

18 BEIJING REVIEW, JANUARY 15-21, 1990 CHINA in accordance with the scientific cific conditions and the country's velopment." That is, about 30 per• and economic laws and in accord• need for science and technology cent of the total force will conduct ance with our country's specific in its drive for modernization. We basic research and high-technology conditions can we stand the test of would encourage them to take a study ^0 f^rcent will research and history. This is just what Premier realistic and practical point of view experiment in the fields of re• Zhou hieant by teaching us to com• and consciously and actively join sources, ecology and agriculture and 40 percent take work in engi• bine theory with practice and to the cause of reform and construc• neering technology. Scientific and stand the test of history. tion. technological progress is one of the At present, the Chinese Acade• Second, provide them with good most important factors promoting my of Sciences has a total staff of working and living conditions. The social economic development and 90,000, of whom 56,000 are scien- late Premier Zhou Enlai once said the demand of the social economy that if we serve the scientists is a great propellant of scientific well, the scientists would, and technological progress. A pro• in return, provide socialism per handling of the relation be• with good service. Comrade tween science and technology and Deng Xiaoping also pointed the social economy is tfie key for out that the Party's leading the rapid development of science cadres should make friends and technology. In our future work, with scientists, giving them we will continue to attach equal \ care and help. This means we importance to development of ^ should be the honest servants science and technology and serving and help them solve their dif- the national economic construction. jij ficulties. The achievements of science and Third, continue to imple• technology are the common proper• ment the policy of "Letting a ty of mankind. The Chinese Acade• hundred flowers bloom and a my of Sciences will continue to im• Science and technology have helped solve many social hundred schools of thought plement the policy of opening up to and economic development and national defense prob- contend." Academic ques• the outside world and strengthen lenu. LI SHIJI tions should be left to the co-operation and exchange with lists. To stimulate the initiative and scientists for debate. Truth should scientists all over the world. Looking forward to the 21th cen• creativity of such a large scientific be accepted through academic dis• tury, we know that the future is fojjce, we must correctly carry out cussion and we must not replace bright and the task heavy. We the Party's policies towards intellec• academic debate with political slo• Chinese scientific and technological gans and we should avoid admin• tuals. To accomplish this we must workers who are fortunate enough istrative interference. Historically, consider the following three points: to live at the turn of the centu• First, trust them politically. In• political criticism has had negative ry should not only leave a shin• tellectuals are part of the working influence and we should draw the ing mark on the scientific and tech• class. We should adequately eval• appropriate lesson from it. nological history of 20th century uate their devotion to socialist Chi• In 1990, the work of the Chinese but also lay a solid ground for the na's scientific and technological un• Academy of Sciences will continue social progress, economic boom and dertakings. However, we should to follovy the policy of "systematic, educational and scientific develop• also help them realize China's spe• proportionate and co-ordinated de- ment in the 21st century. • exercised, and there will be a rea• China will continue its open• maintain a foreign exchange bal• sonable readjustment of distribu• ing to the outside world and ex• ance. The attraction of foreign tion of loans based on the state pand technological exchanges in funds, the import of advanced industrial policies. Priority will foreign trade and economy, ex• technology will continue and the be given to efficient, big and pand export, update varieties of scientific and technological ex• medium-sized enterprises which export products, improve prod• changes and co-operation with are vital to the national econo• uct quality, abide by contracts, foreign countries will be streng• my and to people's livelihood. In perfect sale services and aug• thened. 1990, through effective control ment its competitive capacity in In short, with the prerequisite of investment and consumer the international market. At the of a stable society, 1990 will see needs, market management and same time, imports will be re• progress in the rectification of prices will be further regulat• duced and a strict limit placed on economic environment and im• ed to make the growth rate of import of mechanical and elec• provement of economic order, prices, especially that of necessi• tronic products along with high- and hence a stable development ties, lower than that of 1989. grade consumer goods in oijdsiito of national economy. •

BEIJING REVIEW, JANUARY 15-21, 1990 19 CHINA tions and are a link between the government and the masses. In ad• dition, with their wide connections and friendly relations with the ma• The System of Multi-Party jority of intellectuals, compatriots in Taiwan, Hong Kong and Macao, G>-operatioii and overseas Chinese, they can play a unique, irreplaceable role and have a great influence in soli• by Lu Jiaxi citing their support, the democrat• ic parties' participation in govern• through their participation in and ment affairs, therefore, can expand discussion on government affairs the social foundation and the scope and their democratic supervision of united forces. over government, they reflect the Participation in government af• will of the people and help imple• fairs and democratic supervision ment policies. It is quite evident are the basic functions of the de• that under the condition wherein mocratic parties. Of the Chinese Chinese people have a fairly low Peasants' and Workers' Democrat• cultural level, the democratic par• ic Party (CPWDP), many leaders ties are by necessity an important and members have been elected as means by which local conditions deputies to the people's congresses are relayed to higher governmental at all levels and as members of the levels and in reverse the situation Chinese people's political consulta• of the higher levels is made known tive conferences (CPPCC) at var• to the public. ious levels. Some hold leading Lu liaxi. XUXIANGJUN The central task of political posts in the people's congresses, he system of multi-party co• government and the operation and political con• CPPCC at different sultation implemented un• levels and participate T in policy consultations der the leadership of the Com• munist Party of China is the basic and decision making. poHtical system of China, a system Through social prac• with Chinese characteristics and in tice and feedback, the keeping with national conditions CPWDP has put for• and is the ideal way to develop ward many suggestions and criticisms to help socialist democracy. the government correct . Dialectics propounds the view its faults and do away that everything has two aspects, with corruption. In that modern science cannot adv• 1989, the Party Central ance without the development of Committee and some cross sciences, and that the so• The CPWDP members inspect open coastal areas. Ll SHIJI local organizations es• cialist democracy cannot be es• tablished corruption reporting tablished and developed without Structural reform in China, then, is centres to help the Communist such a doctrine of one thing having to strengthen socialist democracy Party of China and government two aspects and the interweaving which requires an uninterrupted departments expose corruption. In of ideas. A system of one-Party process of development and grad• the same year, in order to raise the leadership and multi-party co• ual perfection. The level of demo• ability of those wishing to partici• operation is therefore required. cracy is, however, restricted by pate in government affairs and of• Democratic parties as the friendly cultural and educational standards fer consultative services, the and co-operative partners of the and so, at present, it is clearly dif• CPWDP started two classes to stu• Communist Party of China by no ficult to assume that 200 million dy how to perfect the multi-party means attempt and accomplish no• illiterate people can carry out di• co-operation system led by the thing of substance or are of lit• rect elections and effectively par• CPC and' strengtheil its own or• tle importance. On the contrary, ticipate in government affairs. ganization. Some of the provincial Members of the democratic par• CPWDP branches, at local meet• The author is chairman of the ties, on the other hand, are groups ings of the CPPCC, reported on Chinese Peasants' and Workers' Demo• with a fairly high cultural stan• cratic Party. dards/ have wide social connec• the problems emerging in the pro-

BEIJING REVIEW, JANUARY 15 21, 1990 CHINA

cess of reform and construction. ing suggestions to ensure state term co-existence, mutual supervi• In December 1988, the CPWDP, stability, improve the economic en• sion and joint construction of so• the China Democratic National vironment, rectify the economic cialism, the CPC respects each de• Construction Association and the order and deepen the reform. Calls mocratic party's political freedom All-China Federation of Industry were also made to help the Com• and organizational independence and Commerce jointly offered a munist Party of China and the with the limits permitted by the \l for strengthening the government promote clean govern• Constitution of the People's Re• management of the medicinal ment, investigate the major issues public Of China. At the same herbs market. The State Council of reform and construction; ex• time, all democratic parties recog• responded positively and held a pand investigations, consultations nize the CPC and accept its leader• special meeting to discuss the issue. and lecture activities in the border ship. There is the fundamental An on-site investigation in the Bo- areas, regions of minority nation• difference between China's system hai Development Area by a study alities, poor districts and coastal and the existence of opposition group of over 20 experts I headed areas; continue to develop friendly parties and multi-party system in won high praise for its strateg• relations with compatriots in Tai• capitalist countries. As parties in ic and policy-making proposals. wan, Hong Kong and Macao, over• friendly co-operation with the Many valuable steps have been seas Chinese and foreign organi• CPC, all the eight Chinese demo• taken to encourage CPWDP mem• zations; and actively expedite the cratic parties not only participate bers to be socially active, assist the replacement of the old CPWDP's in government, discuss political af• fairs and carry out mutual super• Communist Party of China and leading groups at different levels vision, but also share weal and the government to solve social con• by the new. woe, standing with the CPC tradictions, and raise the polit• Activities in 1990 will mark the through thick and thin. History ical and theoretical standards of 6Gth anniversary of the founding and reality prove tttat the system CPWDP members. of the CPWDP. In the 60-year his• of multi-party co-operation led by Composed of highly qualified tory, it has faithfully co-operated the CPC, with vitality and a bright intellectuals from the fields of with the CPC and followed its future, is an advantageous feature medicine and health, science and leadership, a tradition formed by of China's political system. In the technology, culture and education, the process of long-term revolu• new year, all members of the the CPWDP currently has over tion and construction. The politi• CPWDP, with ardent enthusiasm 40,000 members. At the Second cal programme of each democrat• and in the spirit of being masters Plenary Session of the Tenth ic party for building socialism in of the country, will carry out their CpWDP Central Committee held China, is in keeping with the task well and further develop the recently, it called on members to CPC's objectives during the pri• multi-party co-operation system contribute to further development mary stage of socialism. Adhering led by the Communist Party of of multi-party co-operation includ• to the co-operative method of long- China. •

Seizing the Opportunity for Rich Harvests by He Kang

fter several years of stag• theast Heilongjiang, Liaoning and nation, China's agricultural Jilin provinces and Inner Mongo• A production, especially grain lian Autonomous Region, the total production, took a turn for the grain yield of 1989 still amounted better in 1989. The summer grain to 407.45 billion kilograms, Chi• output reached 95 billion kilo• na's second richest harvest since He Kang. XUE CHAO grams, the highest ever recorded. 1984, due primarily to the high of the cash crops, except tea and Also, despite a drop in the prod• autumn grain crops in southern sesame, would continue to in• uction of autumn grain crops be• and northwest China. The total crease. Fish breeding and poultry cause of natural disasters in nor- production value of cotton, edible oil and sugar equaled that of 1988 raising industries continued to de• The author is minister of agriculture. and, it's expected that the oijfput velop and had augmented the out-

BEIJING REVIEW, JANUARY 15-21, 1990 21 CHINA put of meat, egg, and milk and the Fifth Plenary Session of the as hybrid rice and crossbred maize aquatic products, while the mar• 13 th Central Committee of the and advanced technologies such as keting volume of vegetables and Chinese Communist Party for the plastic film land covering and mo• all kinds of melons was larger than improvement of the economic en• del cultivation to increase the that of the previous year. These vironment and rectification of the yield per unit area. Fourth, contin• achievements significantly raise economic order demands a steady ue capital construction of farm• the social supply, stabilize the increase in output of major agri• land, infrastructural facilities and market and control prices. Also, cultural produce and a mobiliza• commodity grain bases so as to township enterprises, after read• tion of the whole Party and the increase reserves for agricultural justment, have basically attained a nation to make agriculture a suc• development. And fifth, guarantee growth in their output value, tax cess by concentrating all re• the timely supply and effective and profit, and the production sources. As long as all the agri• use of such means of agricultural output of state-owned enteirprises cultural departments seize the op• production as chemical fertilizers, involved in agriculture, animal portunity and adopt effective mea• pesticides, farm plastic films and husbandry and fishery have in• sures, the state goal for the 1990 diesel oil for rural uses. agricultural development will be creased in an all-round way. —Steadily develop agriculture fulfilled. These measures include to enrich the "vegetable basket" Since the basic problems res• the following: tricting agricultural development for both urban and rural citizens. remain unsolved, however, we still —Stabilize and improve the At the same time as live pig prod• household contracted responsibili• face a difficult situation. Accord- uction is stabilized, efforts should ty system which links remunera• be made to raise both poultry and tion to output on a voluntary basis plant-eating animals, to develop and on the premise of not chang• fishing, aquatic processing and ing this system, a rational-scale deep-sea fishery, and also to land management can be introd• strengthen epidemic prevention so uced to localities where conditions as to raise output and lower breed• permit. At the same time, a system ing costs. of agricultural services should be established and perfected. Depart• —Guide the township enterpris• ments in charge of technical popu• es in sound development. While larization, seeds, fertilizer, plant readjusting the industrial struc• protection, animal husbandry, ve• ture in line with market needs terinary medicine, farm machi• and the state's policy of industrial nery and agricultural administra• make-up, efforts should be made tion should exert their role. Ef• to encourage the manufacture of forts should be made to get things farm and side-line products, pro• cessing of local raw materials, co• China's grain prodaction took a torn for the well done which cannot be done better in 1989. LI SHIJl by individual households. ordination of energy and raw ma• terials for large urban industries, —Ensure, first, that sufficient ing to the State Planning Com• and to support export-oriented en• areas are sown to grain, cotton mission, the 1990 grain produc• terprises which are labour inten• and oil-bearing crops to increase sive and have the technical ad• tion will have to increase by 5 in real terms grain and cotton vantage in making traditional art billion to 7.5 billion kilograms production. By expanding inter• over 19J89, cotton by 250,000 tons cropped and inter-planted areas, crafts and, also, those enterprises to 400,000 tons, oil-bearing crops developing ratooning rice in which turn out daily necessities by 1.5 million tons, meat by southern China, expanding the for urban and rural people and 500,000 tons, aquatic products by sowing of one-season and early- yield good economic results. 300,000 tons and the production maturing late autumn crops and —Depend more on science and value of township enterprises by opening up some saline-alkali technology for rural economic de• 80 billion yuan. Although these land, the sown area for grain in velopment. The system of grass• are very arduous tasks, there are 1990 is expected to be increased by roots agricultural services should still many favourable conditions more than 700,000 hectares over be tightened, plans put into effect underlying agricultural develop• last year and cotton and oil- for ensuring harvests of agricul• ment. A new upsurge of a large- bearing crops by 400,000 hectares ture, animal husbandry and fish• scale capital construction of farm• each. Second, improve services ery, enriching the vegetable bas• land and water conservancy, for for agricultural production and kets, promoting technical progress example, has been under way spread the technical contract sys• in township enterprises, and im• since autumn of 1988. Moreover, tem over a large area. Third, popu• plementing technical contracts of one of the principal targets set at larize newly developed seeds such various kinds. •

22 BEIJING REVIEW, JANUARY 15-21, 1990 CHINA

Kinescope Firm Highlights China^s Investment Climate

by Our Staff Reporter Han Guojian

remier Li Peng, in res• in the China market and decid• Preferential Treatment and ponding to questions of ed to invest. Moreover, unlike Support P Manfred Schell, the many other joint ventures, According to China's tax law, editor-in-chief of Die Welt of which only register part of the a joint venture is exempt from Federal Republic of Germany, investment capital and use bank income taxes during the first two recently said, "In Beijing, there loan for the rest, the BMCC years after it begins to earn prof• is a Sino-Japanese joint kine• registered all its capital. Thus, scope venture that took only 22 it and turns over only half of the months to put it into production. from the very start, the investors income taxes due between the All entrepreneurs who doubt showed confidence in success of third and fifth year. Since China's favourable investment the venture as well as trust to• BMCC belongs to a high tech• environment are welcomed to wards each other. nology enterprise, it is further visit this enterprise and have a The Japanese investors have allowed to turn over only half of I look for themselves." proven farsighted. Although it its due income taxes during the Premier Li Peng was referring has only about 700 staff and sixth and eighth year. to the Beijing-Matsushita Colour workers, the BMCC has prov• The Chinese government of• Kinescope Co. (BMCC) to which ided 140,000 21-inch plane and fers not only preferential treat• he had twice paid a visit. The right-angled colour kinescopes to ment in taxes to enterprises in- | company's total investment is 18 Chinese TV set factories. volving foreign investment, but 26.057 billion yen, each part• From July 1, 1989, when the fac• also provides a variety of con• ner paying in 50 percent over tory was put into production, to veniences. the end of the year, the total For example, from September a 20-year term. It is the biggest 1984, when Yamashita Gen, di• Japanese investment project in sales volume reached 91 million rector of the Matsushita Elec• Beijing and as well a major over• yuan and contrary to both the tronics Corp. first discussed es• seas investment project for the Japanese and Chinese investors' tablishing BMCC with Beijing Matsushita Electronics Corpora• expectation, they were able to Mayor Cheng Xitong, to July tion. balance revenue and expendi• 1989, when BMCC began prod• ture in the first year of opera• uction, the Beijing municipal A Farsighted Move tion. government gave considerable China has in recent years be• At the official opening cere• support to the project. come a big producer of TV sets. mony on November 24, 1989, First, the municipal govern• However, the domestic produc• General Manager Chikagoshi ment asked for a ground space tion volume of colour kinescopes Ninagaua confidently an• of 134,000 square metres for falls short of demand and every nounced that beginning March BMCC in the Jiuxianqiao area year, the state has to import mil• 1990, the company will change where the Beijing electronic in• lions of colour kinescopes at a the current two shifts to three dustry is concentrated. Zhang great cost in foreign exchange. and expand the monthly produc• Zhongwen, deputy manager of The domestic production of col• tion. the company, said that such a our kinescopes has thus become It is predicted that BMCC's good location is hard to find for even more imperative. annual production capacity of ordinary enterprises and will be Conforming to the govern• colour kinescopes will increase convenient source for BMCC's ment's industrial policy, Mat• to 856,000 in 1990 and that 42 high-quality workers. sushita Electronics Corp. recog• factories will make use of its Second, the municipal govern• nized the favourable prospects products. ment appointed a cadre at the

BEIJING REVIEW, JANUARY 15-21,1990 23 CHINA municipal level to take charge of manager, five department chiefs workers of the company contin• the project and the Municipal and one department assistant, ued their work as usual, a situa• Construction Committee and the the Japanese feel as though they tion highlighted by the fact that Municipal Public Utility Com• are working in Japan. on June 3 the first qualified col• mittee respectively appointed a Zhang said, because of differ• our kinescope was produced. cadre for the project's corres• ent social systems and cultur• Huang Lide is the chief of the ponding work. They often gath• ered together responsible parties al backgrounds, Chinese workers kinescope manufacturing sec• to solve problems, on-the-spot, inevitably feel somewhat uneasy tion. He said that the Japanese which occurred during the pro• under the new management sys• general manager often dissolves ject's construction. Thus many tem. In those cases, said Zhang, certain quality problems and cri• complications that might require the Chinese cadres in BMCC ex• ticizes the relevant section chief. two or three months to resolve plain why workers should adapt Talks are held once a day and were settled within a week. Be• themselves to discipline and can last more than a week un• cause of such support, there schedules. til a solution to the problem is were no delays from material The core of the management found. According to Huang, all shortage or a halt in the supply system is the need to adhere the 25 section chiefs have re• of water or electricity. The pro• to schedules, i.e. work must be ceived such talks. At first, all of ject was completed two months done on time. There is to be no them felt embarrassed, but real- ahead of time. Third, a group of technicians, backbones of the electronic in• dustry, headed by Zhang Zhong- wen, former director of the mun• Assembling electron guns icipal electronics office, were ap• for colour kinescopes. pointed as partners to the Ja• Photos hy YU HUIRU panese investors. Most of them graduated from colleges in the 1960s; 25 are currently BMCC's section chiefs. The Practices of Matsushita Management System During negotiations, an honest co-operative relation was esta• blished between the Chinese and Japanese sides. When BMCC was officially set up on Septem• ber 8, 1987, the front negotia• tors from both sides acted as the company's general and deputy managers and laid a foundation for further co-operation. To ensure product quality and strengthen the company's com• petitiveness in world market, BMCC not only introduced Mat• sushita equipment and technolo• gy, but also the Matsushita man• Manufacturing 21-inch plane and right-angled colour kinescopes. agement system. Professional ti• tles, setup, production command delay and no excuses are accept• izing that the general manager system and day-to-day reviews ed for a disruption of plans. The was not personally against them are almost all from Matsushita. best example of this rigor is the but against poor quality prod• Therefore, although there are situation which occurred during ucts, they became accustomed to only seven Japanese in the com• the May-June disturbance when process. They have nicknamed pany, including the general both Chinese and Japanese the talks the "special repri-

24 BEIJING REVIEW, JANUARY 15-21, 1990 CHINA

itizens have the right to make, to the relevant state C organs, complaints and charges against, or exposures of, Offence Reporting: An any state organ or functionary for violation of the law or derel• iction of duty," according to Ar• Important Channel of ticle 41 of the Constitution of the People's Republic of China. Mass Supervision Since June 1988, procurato- rates and supervisory organs at various levels have launched an by Our Staff Reporter Wu Naitao offence-reporting network by opening round-the-clock hot• The ojjence-reporting system, established throughout lines, reception offices and pub• the country in June 1988, has showed the power of the lishing zip codes of offence re• masses in the campaign against corruption. It allows the porting centres in an effort to state to directly rely on the broad masses of the people strengthen the struggle against in its fight against government functionaries ivho abuse corruption. The masses are en• couraged to report officials for their positions and power for personal gains or other such irregularities as embezzle• illicit purposes, and is an important guarantee for citi• ment and bribery, dereliction of zens in the exercise of their right to expose or charge duty, and extortion. To date, 89 officials with irregularities.—Ed. percent of the nation's procura-

mand." meets the standards of the June 1990, when the second Now, added Zhang, the US UL. production line begins opera• Chinese workers have almost got tion, all 14-inch colour kine• to the strict demands and rigo• A Favourable Foreign scopes will be exported. The re• rous management and realize Exchange Balance levant export licenses are now being developed. that this is how the modern in• A foreign exchange balance is The Beijing municipal govern• dustrial production is run. of key importance to an enter• Xu Qiong, a worker recent• ment and the Ministry of prise using foreign investment if Machine-Building and Electron• ly transferred to the company, it is going to be successful. said, "It's the first time that I've ics Industry are organizing the At present, most of BMCC's spare parts needed by BMCC. seen such efficient work and raw materials and spare parts for Zhang estimates that about have felt such intense labour the kinescope line are provided 1991, China will be able to prov• since I began work five years by the Matsushita Corp., a meth• ide most materials. ago. There is no idleness and no od that requires a lot of foreign disputes over trifles; it's a new Regarding the factory's expan• exchange. Since 1990, although sion, Zhang said that another as• world." China is attempting to purchase sembly workshop will be built on The practices of the Mat• domestic kinescopes with foreign some 40,000 square metres (ac• sushita management system in exchange to replace purchasing cording to the second construc• BMCC has made the company imports (This will ease BMCC's tion plan), the production line the most efficient in Beijing's problems in using foreign ex• for kinescopes above 24-inches electronics industry. In 1989, the change), BMCC's decision• started and preparations made per-capita output value reached makers think that, in the long for the founding of a colour TV 135,000 yuan. In November term, the problem will best be production line using the Mat• 1989, after inspecting the facto• resolved by China providing its sushita technology. ry, the top advisor of the Mat• own raw materials and pushing General Manager Chikayoshi sushita Electronics Corp. showed its products into the world mar• likened BMCC to a vessel his satisfaction by noting that ket. that, under the co-operation of BMCC is equal to other Mat• For this, the company has adv• Chinese and Japanese, is braving sushita factories in Japan.** anced the 1992 export plan to the wind and waves in its sail BMCC's production quality 1990, according to Zhang. In towards a fixed destination. •

BEIJING REVIEW, JA.NUARY 15-21, 1990 25 CHINA cases, and provide the public's desire for punish• protection for in• ment of corrupt officials, the let• formers. They also ters and- phone calls reporting provide for reward such cases have come pour• and punishment. ing in. In addition, su• According to Yao Shigeng, an pervisory organs official in charge of the offence- have also worked reporting work for the Supreme out "Temporary People's Procuratorate, procura• Provisions on torates throughout the coun• Offence-Reporting try have altogether received Work of the Su• 147,238 tips during the period pervision Organs," from July to December 1988, of (Draft), and "Trial which 35,928 led to embezzle• Regulations on ment and 16,912, bribery. The Handling Letters rest involved misappropriation of public funds, dereliction of from Foreigners duty, counterfeit trade marks and Overseas and violation of citizens' demo• Chinese and Com• cratic rights. patriots of Hong More than 43,476 Party and Kong and Macao." government officials were re• Favourable ported, a figure which made up Response 29.5 percent of the total in• volved. Others included factory Many people nuke calls to jndldal organs to report o(fldals who Because the re• directors, managers. Party secre• commit economic crimes. Drawn bu ZHAO REN porting system is taries and salesmen. From Janu• an outgrowth of ary to June 1989 about 172,000 torates have set up 3,706 offence-reporting centres. At the same time, supervisory organs throughout the country have opened 1,832 offence-reporting offices and hotlines, employing some 4,000 persons to respond to letters and phone calls and re• ceive visitors. In January 1988, the Supreme People's Procuratorate (SPP) published the Regulations Gov• erning Offence-Reporting Work of the People's Procuratorates (for Trial Implementation) to give the public an understand• ing of and garner support for the offence-reporting work. The regulations of the SPP are cer• tain to aid those involved in Since opening 24-hoar hot• offence-reporting work and are lines for the pnbllc, the offence-reporting centre of helpful for expanding supervi• the Supreme People's Pro- sion by the public. The regula• coratorate has received tions have four chapters with 35 many calls ^m the masses. articles and pertain to the adop• TANG SHIZENG tion, transfer and filing of re• ports, urge the concerned organs to respond, handle, and act on

16 BEIJING REVIEW, JANUARY 15-21, 1990 CHINA clues were reported. Among Hong Kong, Macao and Taiwan. people have been prosecuted them, 68,000 or 39 percent One example involved a depart• and 542 convicted. pointed to embezzlement and ment director of the State Plan• In August 1989, Gu lianguo, bribery. During this time, more ning Commission accused by a former head of the Materials than 48,000 Party and govern• Hong Kong businessman of em• and Goods Supply Bureau of ment officials were reported, bezzlement and bribery worth Kaihua County in Zhejiang making up 28 percent of the to• 650,000 yuan. Province, was accused of em• tal involved. bezzlement and bribery by local One year after the establish• Probe to the Bottom people. After the report was in• ment of reporting system, re• vestigated and proved true, porting centres run by procura- Procuratorates and superviso- three criminals headed by Gu torates at various levels re• ceived a total of 228,000 let• ters and phone calls. Among them, 1,574 officials who were reported ranked at or above departmental and bureau level, and 12,942 ranked at the county level. It is said that 70 percent of the accusations provincial pro- curatorates put on file for in• vestigation and 80 percent of the clue put on record by county procuratorates were provided by reporting centres. It has also been reported that the Central Discipline Inspection Commission in the first half of 1989 received more than 1,000 letters and Vice-Minister of Supervision Feng Tiyun (second from right) handles cases together with his aides. visits which exposed the irre• CHEN ZHONGUE gularities of officials at or above ry departments at various levels were immediately arrested with the prefecture level. More than lake a serious attitude towards the approval of the local pro- 50 percent of the cases con• accusations reported by the curatorate. Encouraged by the cerned the abuse of power and masses and have focused their news, another informer dis• violation of economic discipline. work on investigation. Every pelled his misgiving and Now, the commission has sent day, leaders of various procura• brought his accusations to the 25 groups to 13 provinces and torates personally take tips and county procuratorate, which he autonomous regions to investi• phone calls from the masses and had prepared three months be• gate and overlook the handling examine serious cases one by fore. The procuratorate's of these cases. one. Yao Shigeng says that Liu prompt and earnest actions in Reporting centres open their Fuzhi, chief procurator of the dealing with the mass's letters door wide not only to mainland SPP, is very concerned about have stimulated the people's en• citizens, state organs, social or• the work of reporting centres, thusiasm. According to statis• ganizations and enterprises, but and keeps in close contact with tics, procuratorates in Zhejiang also to compatriots of Taiwan, daily activities. In the first half Province have handled 812 cas• Hong Kong and Macao, over• of 1989, Yao added, more than es of embezzlement and bribery seas Chinese and foreigners. In 380,000 reports were initially during the first half of 1989, 1988, 228 tips came from foreig• investigated by procuratorates thereby retrieving 10.74 million ners, 188 from citizens of Hong throughout the country, 10,400 yuan. Some 65.8 percent of the Kong, Macao and Taiwan. In of which were put on file. More clues were initiated by the mass• the first half of 1989, 118 tips than 2,200 cases involve over es through the reporting centres. came from foreigners, 76 from 10,000 yuan each. To date, 1,300 According to Feng Tiyun,

BEIJING RE\'TEW, JANUARY 15-21. 1990 27 CHINA

vice-minister of Supervision and selves in. crime-reporters. Those who re• vice-president o^. China Demo• One of them was Shi Guifu, taliate offence-reporters for cratic National Construction an office worker of the China their actions will be investigated Association, by the end of June Zhujiang Building Materials and punished once their illegal 1989, reporting centres through- Enterprise Co. in Shenzhen. He actions are discovered. Those oat the country had handled stole 43,000 yuan by making use whose mistakes are not serious 13,159 cases, 8,600 of which of the differentials in official enough to be considered to be a were investigated and settled. and black market exchange crime are given ideological edu• Altogether, some 29.74 million rates between Renminbi and US cation and/or disciphnary sanc• yuan in economic losses have dollars. At the beginning, he was tions. Those who commit a crime are investigated and le• been avoided and 1,866 officials nervous of offence-reporting. gally punished. For example, given disciphnary sanction and After weighing the advantages Li Xiangzhang, former Party prosecuted or convicted by judi• and disadvantages, he finally branch secretary of Wudong cial organs. The fact that pro- decided to make a clean breast Township, Jinxian County, Zhe- curatorates were quick to handle to the local procuratorate, turn• jiang Province, was arrested for and complete cases shows their ing in all his ill-gotten money. retaliating against the person determination to deal with "The mighty offence-reporting who reported his embezzlement mass's reports. Supervisory or• campaign frightened me," he and bribery. Using his position gans, previously unknown to the said. Since the day I stole the and power, Li suspended the public, are now well known be• money, I haven't had a day person from his job and illegally cause of the anti-corruption ef• when my mind was at ease. I took him into custody for six fort and are described as the was always in a state of anxie- hours. ty." According to Yao Shigeng, In Jilin Province, 29 off• procuratorial organs in Beijing ice workers, including 19 and other 15 provinces and au• tonomous regions had dealt with cadres of the Yushu Coun• 144 cases of retaliation; 14 peo• ty Grain Department, after ple involved in those cases were hearing a report about the convicted according to criminal offence-reporting campaign law. A survey made by procur- of the local procuratorate, atorates shows that anonymous turned themselves in and reports from the masses made handed over 40,000 yuan in up a certain proportion of all bribes. They were leniently cases who conceal their names dealt with. are often in the know and 60 percent of their tips prove to be Protecting Informers true. Anonymous accusations proven untrue are largely the The Regulations Govern• result of honest mistakes. Only a ing the Offence-Reporting very few are patently false accu• Work of the People's Pro- sations. curatorates has a five- article chapter dealing with Zhang Siqing, deputy chief procurator of the SPP, said, how to protect and reward A criminal turns himself in, saying, "Here are my. "Fear of retaliation is the main offence-reporters as well as reason for anonymous reports. Drawn by ZHAO R£N how to punish those who It stems from our imperfect de• "supervision star of the current make false accusations. mocracy, which has existed in stage." Some provincial procurato- China for a long time. With re• With the deepening of rates worked out their own regu• gard to anonymous reports, pro- offence-reporting campaign and lations for defending the legi• curatorates and supervisory or• under the influence of the Par• timate rights of citizens who ex• gans take a cautious attitude, ty's policy of "leniency to those pose officials for irregularities. laying stress on the weight who confess their crimes and The Ministry of Supervision is of evidence and investigation. severity to those who refuse to," also drafting temporary regula• Only a handful of people have 651 criminals during the second tions, based on the established brought false charges and they half of 1988 and 651 in the first regulations and rules of local su• were discovered and sentenced six months of 1989 turned them• pervision organs, for defending according to the law. •

28 BEIJING REVIEW, JANUARY 15-21,1990 BUSINESS/TRADE mercial enterprise from Lenin• grad was established in Shanghai Statistical Information to produce foodstuff and drinks. Services Available • f you want accurate statistical International Tea Committee Beijing Jeep Walks information and data con• London, Thilipp Brother Inc., Out Predicament I cerning China, you can refer University of Illinois Inc. the to the China Statistical Infor• Nihon Keizai Ssimbun Inc. and mation and Consultancy Service Hong Kong University on an an• eijing Jeep Co. Ltd, in a Centre. Since its establishment in nual, quarterly or monthly basis. predicament due to China's May 1985, it has provided ser• In July 1988, a liaison office was B economic rectification and vices for more than 1,000 cus• set up in Hong Kong to widen the consolidation, . has now come tomers, of whom one-third were co-operation with foreign coun• back to normal when its daily foreign. tries. output goes up from 138 to 146 According to Zhou Zhilin, de• by Kou Zhengling. jeeps. puty manager of the centre's con• According to company data, by sultancy department, the centre December 20, the company's to• depends on wide sources infor• Labour Service tal output in 1989 had reached mation of the State Statistical With USSR 39,130, up 26.2 percent over 1988 Bureau and professional survey and realized 125 million yuan in groups in both cities and towns. ccording to the Ministry of profit, a 23.2 percent increase, The centre is capable of provid• Foreign Economic Rela• thus overfulfilling its 1989 target. ing various statistical services in• A tions and Trade, between General Manager Chen Xue- cluding information on the na• January and August of 1989, lin said that when the country tional economy and social de• China signed 95 contracts and strengthened management of au• velopment; production, supply, agreements for labour services tomobile production and sales sales, market demand and price with the Soviet Union, and 14 during the campaign of econo• fluctuation of major commod• joint-venture items with a total mic rectification and consolida• ities; population, labour force, value of some US$240 million. tion, overstocks occurred, reach• natural resources, industry, agri• More than 10,000 personnel ing as many as 4,000 jeeps last culture, transportation, telecom• were sent to the Soviet Union to May. munication, investment, com• implement these contracts. Chi• Because the company had merce, foreign trade, tourism, na's investment is represented in faced difficulties and overstocks, finance, scientific research, edu• equipment and material having a the related government helped cation, culture, public health and value in excess of US$10 million. them to clear sale channels: at sports; resident income and ex• Ninety-five percent of the con• the same time, the Bank of China penditure in both cities and tracts and agreements are con• credited the company with more towns; and the economic and so• centrated in the border areas be• than 23 million yuan and US$7.5 cial development of 31 provinces, tween the two countries and are million which allowed the com• autonomous regions, municipal• managed directly by enterprises pany to meet all its obligations. ities directly under the Central of both sides. Now, jeeps made by the company Government as well as all cities. There are now more than 500 are sold out. The charges are lower than the possible agreements under dis• He said that both partners, international standard. cussion and the area of co• from China and the United In order to quicken access to operation is extending to the mid• States, worked hard to overcome technological information, Zhou dle and European part of the difficulties. In order to increase expressed his determination to Soviet Union. The fields of co• the proportion of home-made co-operate with colleagues from operation range from agriculture, products, technical personnel of abroad, Hong Kong and Macao forestry, communications, fish• both China and the United States in order to develop and make use ery to energy and building mater• continue to research day and of abundant statistical resources ials. night. At present, the new paint for the diverse needs of domestic Soviet items in China also ex• spraying, assembling and steel and foreign customers. panded last year. In September plate hot-treating lines have been For several years, the centre last year, the first Sino-Soviet en• installed and undergone test has provided regular services to terprise between Shanghai Huat- runs; they will be put into opera• some 20 customers, including the ing Group Company and a com• tion by 1990.

BEIJING REVIEW, JANUARY 15-21, 1990 29 BUSINESS/TRADE

The China-America venture, ities; a review of Sino-foreign Fair, the Building-Materials Beijing Jeep Co. Ltd., was esta• economic and technological co• Fair, Office Automation and In• blished in 1984. The company operation such as the current formation and Telecommunica• has since netted 415 million yuan conditions and prospects on spe• tions Technology Fair, the Air in profits on a total output of cial economic zones and open and Space Technology Fair, the 158,600 jeeps. • coastal cities; and an overview of Bio-technology Fair and the Ani• financial and statistical data such mal and Husbandry Fairs. as market detection and analysis by Li Rongxia Transmission of and comprehensiveness. Economic Information by Wei Liming China, USSR hina's only special econo• Co-produce Soybean mic information line trans• Participation in C mitted nationwide through Hannover Fair n agreement on co- satellite transmission will be ex• production of beans be• tended to open coastal cities in ate in November 1989 in A tween China and Soviet , January 1990 to provide econo• Beijing, Jurgen Behrmann, Union, with China mainly ex• mic information for foreign bus• I president of the Hannover porting its bean planting technol- ; iness offices, and embassies and Exhibition Co. of the Federal Re• : ogy, was signed at the end of j consulates in China. public of Germany, warmly in• 1989 in the Soviet Union. It is the i The line sends 35 to 45 pieces vited Chinese enterprises and fac• > first time China will export its j of China's economic information tories to participate in various I bean planting technology. ! to North America, Western Eu• fairs, to be held in Hannover in According to the agreement, ! rope, Japan and Hong Kong in 1990. the Heilongjiang Wasteland Re- [ English each day, along with Since 1979, China has sent de• clamation Area of China will j transmission in Arabic to gulf legations to attend the Hannover send nearly 400 experts and agri- countries. After broadcasting, the Industry Fair and the volume of i cultural technicians to six state information is stored in the in• Chinese transactions in the fair j farms in the Soviet Union to ternational computer materials has increased annually. The vol• i teach bean planting technology. room for reference. Over the past ume of machinery in 1988, for The total area under this agree• two years, China's economic in• example, reached 7.8 million ment is 4,000 hectares. formation system has enjoyed yuan, the success of which en• The Soviet Union will provide i good reputation abroad for its ac• couraged Chinese authorities to land, production materials, living curacy and timeliness, and is a participate in the architecture ! facilities, production and man- ' central part of the world infor- fair to be held in Hannover in j agement fees. China will provide i mation industry. 1990. This is the first time China ; the needed technology, seeds, fer- Most clients are transnational attended such a fair and will I tilizers, growth hormones and ne- corporations and financial organ- provide an opportunity for Chi• I cessary farm tools. Remunera- I izations such as the World Bank, na's building-materials products I tions for the Chinese side includ- I a bank of the Netherlands, the to enter the international market. 1 ing pay, technological transfer I Brazil Bank, the Daiwa Bank of Annually, 80 percent of theI fees, production materials costs [ Japan, and the Daiwa Securities world's fairs are held in Federal I as well as dividends will be paid I Co. Ltd. of Japan, the Iri Group Germany, the largest and most for by the Soviet Union with j of Italy, the US-China Business important of which are usually chemical fertilizer and farm : Council and the European Eco- held in Hannover, a famous fair I machinery. I nomic Community, city. Every year, more than 2 The Heilongjiang Wasteland j The service includes such pro-. million entrepreneurs and vis• Reclamation Area, a famous I ject opportunities in China's mar• itors attend. bean production base in China, ket as import and export trade, The Hannover Exhibition Co. has an annual planting area of the demand for foreign funds, la- j is the largest of its kind in the more than 700,000 hectares. • bor contract, invitation to foreign j world. Some 50 fairs and exhibi• technicians and tourism; it also tions are expected to be held in News in Brief provides information on China's Hannover in 1990. Seven of the investment climate such as the 50 fairs have a large following • According to statistics re• rules and regulations on China's ! from around the world. They in• leased by the Ministry of Foreign policy, transportation, telecom• clude the Hannover Industry Economic Relations and Trade, munications and service facil• Fair, the International Carpet China's export volume reached

.30 BEIJING REVIEW, JANUAHY 15-21. 1990 BUSINESS/TRADE US$39.68 billion by December 10, 1989, an increase of 6.9 per• cent over the corresponding per• iod in 1988. Of this figure, the China's International Health e.Kport volume of joint ventures, co-operative enterprises and Technology Co-operation wholly foreign-owned enterprises was US$2.96 billion, US$1.59 bil• |hina signed an agreement last to over 60 countries and contracted lion (over 100 percent increase) November to provide equip• to build some 30 projects. more than during the previous ment for a modern teaching The China Medical Care and period in 1988. hospitaC l in Pakistan. The two sides Public Health Corporation for For• have since been sped up preparations eign Technology Co-operation, set up China's import volume was for implementation of the agree• in March last year, is the only one US$33,486 billion, an increase of ment. The specific supply contract of its kind in China. It contracts 1.3 percent over the previous per• will be signed in the spring this year, to build hospitals and sanatoriums iod in 1988. Some imports which according to He Hongming, general abroad, provides advanced technolo• were not needed, however, have manager of the China Medical Care gy and equipment under agreements been brought under control, and and Public Health Corporation for with governments or organizations. so, foreign trade revenue and ex• Foreign Technology Co-operation. It can also establish co-operative- penditure were favourably bal• Based on the agreement, China funded or self-funded hospitals anced. A large increase in the will provide a complete set of medi• spot exchange balance of the cal care-teaching equipment worth abroad and set up clinics for treat• state was noted. 60 million yuan for a 1,100-bed ment of all kinds of hard-to-treat cas• • A dictionary entitled "Dic• teaching hospital in Pakistan. It will es. Moreover, it sends medical ex• tionary on China's Key Ex• be the largest, modern hospital in perts and technical personnel port Commodities and Produc• Pakistan and one of the biggest, abroad, holds technological ex• tion Enterprises" was published co-operative projects undertaken by changes and conducts co-operative in Beijing at the end of 1989. China with a foreign country in re• research in international medical Edited by the State Admin• cent years. care. istration of Commodity Inspec• China's health co-operation with He Hongming said that since the tion, the 3.6 million-word dic• foreign countries started in 1963. At establishment of the corporation, it tionary briefs readers on the first China's field of co-operation has contacted some countries in the equipment, organization and was limited to sending medical teams above mentioned fields and signed quality of products from more to third world countries. This was some co-operation agreements or let• than 8,000 export enterprises, gradually expanded to include tech• ters of intent. It will soon provide and is broken up into such 12 nological exchanges, personnel train• 200 nurses to a foreign country and, categories as cereals, oils, foods, ing and project contracting. Statistics with foreign investment, set up hos• native and animal products, tex• show that, as of now, China has since pitals in China. tiles, light industrial products sent some 10,000 medical personnel by Li Ming and chemicals. • China's 2nd Nantong Folk Arts Festival will be held in Nan• tong City, Jiangsu Province on March 25-29. At the festival, a performance of folk songs and dances popular south of the Changjiang River will be given and China's 1st Nantong International Kite 5.. Meeting will be held. At the same time, many import and export companies are expected to hold trade talks with foreign business• men on export commodities and 1 more than 100 economic and technological co-operative pro• jects for the introduction of for• eign funds and technology will be discussed. Chinese doctors in Somalia, •

BEIJING REVIEW, JANUARY 15-21, 1990 31 CULTURE / SCIENCE ered. The remains of the culture are mostly located in the mid• Important Cultural Relics dle and lower reaches of the Huanghe (Yellow) River. The Discovered in Shandong production tools of the Longshan iluable cultural relics were pendant and hairpin of elegant Culture were made of carved recently discovered in two and outstanding workmanship. stone. The unearthed pottery was ylarge 4,000-year-old tombs The small delicate jade hairpin I mainly grey and black in the re- of Longshan Culture in eastern deserves special attention: on the i cognized Longshan style. Long• China's Shandong Province. upper part of it three vivid hu• shan Culture is also referred to Archaeologists from the Shan• man faces are carved. Such a dis• as "the Culture of Black Pot• dong Team of the Archaeologi• covery is rarely seen in remains tery." cal Institute under the Chinese of the Longshan Culture, which The two newly discovered Academy of Social Sciences dates back to the New Stone tombs, located in Linqu County, started the excavation in Octo• Age, 4,000-4,5000 years ago. The are among the most important ber last year. After one month's Longshan Culture is named after cultural remains of the Longshan work, over 100 ancient relics in• the Longshan Township in Shan• Culture yet discovered. Han cluding jade knife, shovel, ring. dong, where it was first discov• Rong, associate professor at the rwnwo concerts performed by the Shanghai Symphony T Orchestra (SSO) during the Second China Arts Festival (Sept.l5-Oct.5) showed the en• Shanghai Symphony Orchestra semble's high level of musical accomplishment. Principal conductor and mus• ical director Chen Xieyang con• cians to become a conductor Philharmonic has been greatly ducted one of the concerts, a since the founding of the Peo• praised. He made successful ap• mixed programme of Chinese ple's Republic of China in 1949. pearances at the 33rd Aspen and Western music. Principal In 1965 he was graduated from Music Festival Orchestra in guest conductor Yoshikazu Fu- the Department of Conducting 1982 as well as the Chinese Mu• kumura led the orchestra at the Shanghai Conservatory of sic Festival in Scotland in 1988. through three Western works Music. In 1981 he was invited In 1983, at the invitation of a during the second concert. by the Centre for US-China Art French record company, he con• Two compositions by Chinese Exchanges to study and perform ducted the Beijing Central Phil• composer Zhu Jianer, the Sym• in the United States. While harmonic Society in recordings phony No.2 and a concerto there he took training in con• of dozens of Chinese orchestra for so-no (traditional Chinese ducting from Professor Otto music. At the same time he par• horn) and orchestra titled Ec• Mueller of Yale University. ticipated in conducting the large stasy of Nature were paired Since the 1970s Chen has per• musical dance production, the with Sergie Rachmaninov's formed in Korea, lapan, Cana• Song of the Chinese Revolution Symphony No.2 in E Minor in da, the United States, France, Chen praised Zhu Jianer's the concert conducted by Chen. the Soviet Union and Hong Symphony NO.2 and Ecstasy of These works of different times Kong. His work with the Group Nature. Finished in 1987 and and different nations were skil• for Contemporary Music of based on the "cultural revolu• fully performed to highlight New York, the Brooklyn Phil- tion," the Symphony No.2 mani• their divergent styles. Chen's en• harmonia, the Honolulu Sym• fests the struggle between the thusiastic conducting drew out phony Orchestra, the Tokyo people and their oppressors, be• their contrasting colours and Symphony Orchestra, the Tokyo tween good and evils. It me• made emotional contact with Youth Symphony Orchestra, the diates on the nation's fate and the audience Miyagi Philharmonic Orchestra is marked by strong, tragic col• Chen, now in his 40s, is one of Japan, Philippine State Or• ours. of the most accomplished musi- chestra and the Hong Kong Finished in 1989, Ecstasy of

32 BEIJING REVIEW, JANL.UiY 15-21, 1990 CULTURE / SCIENCE

Archaeological Institute, super• vised the excavation. He said Fossilized Dinosaur Skin Discovered that the two tombs outshone oth• er Longshan Culture remains in rare fossilized dinosaur skin was recently discovered in an area of terms of size and the quantity of southeastern China known as "the hometown of dinosaurs." The discov• ery in Zigong, Sichuan Province, was the first of its kind in China. cultural relics they yielded. Han AThe discovery was made accidentally on October 30 when scientists from said that the discovery provided the Zigong Dinosaur Museum were restoring the remains of a dinosaur from important material for the stu• the late Jurassic period. It had been excavated in the outskirts of Zigong in dy of civilization and prehisto• April 1985. ric Chinese culture. The fossilized skin, located in a layer of slate, was joined to the shoulder Linqu is rich in ancient animal bones of the dinosaur. The skin's surface pattern resembles that of present-day reptiles such as snakes and lizards. fossils and human cultural arti• A total of 400 square centimetres of fossilized skin have been traced out. facts. The bird fossils and fossils Each square centimetre includes three scales. of ancient rhinoceroses, deer and Experts said that because of poor natural conditions for preservation, the other large animals discovered in skin of ancient animals rarely becomes fossilized. This discovery is especially Wangcun village of the county helpful for study of the superficial structure of dinosaur skin and in assessing have drawn the attention of the thickness of the soft tissues under skin. It also provides reliable materials the international palaeontologi- for recreating a realistic image of the prehistoric animal that became extinct on earth hundreds of thousands of years ago. • cal circles. •

to be invited as a Its conductors Huang Yijun, guest conductor by Chao Peng, Chen Xieyang and a Chinese orches• Hou Runyu, as well as its com• tra. He was mak• posers, Qu Wei and Zhu Jianer, ing his third ap• are renowned at home and pearance in China, abroad. Over the last 40 years, his second co• the orchestra has held more operation with the than 2,000 concerts, performed SSO. He praised Chinese and foreign works and the symphony's made many recordings and vi• high musical lev• deo tapes. The SSO has co• el, especially its operated with famous foreign strings. Duphil, ensembles and musicians, and who has per• has visited Australia, New Zea• formed with the land and Hong Kong. SSO many times, In China the orchestra is en• Chen Xieyang conducts the Shanghai Symphony Orchestra doring a now lives in Hong concert. thusiastically trying to popular• Kong and is consi• ize symphonic music, going so Nature blends traditional and dered as one of the outstanding far as to found the Symphony pianists in Asia. The audience modern methods, drawing on Lovers Association in Shanghai. showed its appreciation to these the so-na's bold and humorous Loved by domestic and foreign two old friends with warm ap• characteristics. Chen comment-, audiences the SSO received 37 plause. ed that both works are thought• million yen in donations last ful, skillfully composed and re• The oldest orchestra in China, year from the Japanese govern• veal the national temperament. the SSO can trace its roots ment for buying new instru• The concert conducted by back to the Shanghai Munici• ments. Early last year Kuniko Yoshikazu Fukumura and ac• pal Public Band, which was en• Kodyashi of Japan donated an• companied at the piano by Mo- larged into an orchestra in 1907. other 1 million yen to the SSO. nique Duphil of France includ• After the founding of the Peo• Chen sees three tasks for his ed Hector Berlioz's Carnaval ple's Republic of China, it was orchestra: introducing famous Roman Overture, Robert Schu• renamed the Shanghai Sym• symphonic works to Chinese mann's Piano Concerto in A Mi• phony Orchestra. It now has people, developing Chinese sym• nor and Stravinsky's ballet suite more than 100 players, many of phonies and raising its own play• from Petrouchka. Fukumura whom have won prizes in inter• ing to an international standard. was the first Japanese conductor national competitions. by Feng Jing

BEIJING REVIEW, JANUARY 15-21,1990 33 CULTURE / SCIENCE scratch, made magnificent achievements after overcoming many difficuhies. It is also in• teresting and moving to discover less known material and histori• cal facts including the failures and frustrations experienced be• A Splendid fore success were achieved. An• other example is the Grain Prod• uction of Modern China which, Historical Record: using selected data from a more than 30 million word source of material, authentically records Modem China China's grain production over more than 30 years. By reading it, one learns how China solved the problem of food for he 50-volume series, Mod• als and data should all be ver• hundreds of millions of people. ern China (Chinese edi• ified by statistical departments The Military Work of Modern T tion), is a great gift for the and backed up by archive depart• Chinese Army (altogether two 40th anniversary of the Peoples' ments. All the facts should be volumes) describes the various Republic of China. checked. As what the pretext to but little known battles in which With Deng Liqun, Ma Hong the series states, it should be a the PLA struggled to protect the and Wu Heng as Chief Editors, practical and realistic style of motherland against invasion af• Modern China began to be com• work: Modern China will pro• ter the founding of the People's piled after November 1982, ceed scientifically. Being practi• Republic of China. The Economy when the Secretariat of the CPC cal and realistic and against of Modern China gives a detailed Central Committee gave its ap• falsely adorning facts and gloss• picture of China's socialist eco• proval. Being a key project of ing over mistakes, Modern China nomic development and achieve• both China's publication cause will use reliable data to record ment as well as the failures. It and the social science research the 30-year construction of New makes public for the first time under the Seventh Five-Year China in order to provide an ac• that, from 1957 to 1960, the de• Plan, all 180 volumes, about 100 curate historical record. Indeed, terioration of the national econ• million words, should be pub• it is clear, after our reading of omy due to mistaken policy lished by 1990. the 50 volumes published so far caused the death rate of the po• A magnum opus of historic as well as those provided for a pulation to rise from 20 per thou• and scientific significance. Mod• pre-publication review, that the sand in 1949 to 25.43 per thou• ern China narrates the country's editors and authors have done sand, a 10 million reduction in development, achievement and their job well. Although there is the number of the population. experiences since the founding of a difference in theoretical out• Such facts demonstrate the rigo• the People's Republic of China. look and literary level between rous scientific attitude and real• It is divided into comprehensive each volume, they all record not istic spirit of the editors. volumes (such as the Economy of only the achievements but also Using indisputable facts and Modern China), volumes on in• the reverses of the past 40 years i materials. Modern China's, value dustries (such as the Petroleum Each volume provides a concrete lies in its reporting which recti• Industry of Modern China), vol• and full presentation in one area, fies past misunderstanding and umes on special topics (such as while the series as a whole prov• gives a chance for people world• the Population of Modern China) ides a comprehensive category of wide to know more about China. and volumes on regions (such national history. It can also help the Chinese peo• as Sichuan Province of Modern Many volumes of the series are ple to gain a better understand• China). quite impressive. For example, ing of themselves and, by refer• As they took up their pens, it the Aeronautics Industry of Mod• ence, direct the nation's future is evident that writers and edi• ern China and Nuclear Industry construction. Moreover, Modern tors believed their words should of Modern China, vividly and China well preserves China's cul• be able to stand the test of time. with great inspiration, tell about tural treasure for the benefit of To do this, they set out some the development history of each the nation's offspring. basic requirements. The materi• industry and have, starting from by Wang Lei

BEIJING REVIEW, JA.NUAKY 15-21, 1990 Busy Winter Farming in the Rural Area. A Good Trade Friend

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