DEVELOP THE YAM Beijing'^ir VOL. 33, NO. 52 DEC. 24-30, 1990 Li's Visit Promotes Peace and Friendship D China pursues an independent foreign policy of peace, and CONTENTS will not pose any threat to any country in the Asian and Pacific region, either in the remaining years of this century or EVENTS/TRENDS 4-7 inithe next century, Chinese Premier Li Peng says in Manila Li Peng Continues South Asian on'December 15 (p. 4). Tour Saudi King Praises China's Gulf Li Peng Looics 10 Years Into Future Stand Reunification: A Task in '90s a China is set to maintain sustained stability and co-ordinated Catching Up With the Developed deyelopment of the economy for the attainment of its second- 182 Million Own Life Insurance stage strategic goal in socialist construction. The policy of News In Brief reform and opening to the outside world will remain un• changed and the planned economy is to be integrated with market,force for better results (p. 13). INTERNATIONAL China's Noticeable Diplomacy of 1990 8 China's Diplomatic Success in 1990 North-South Economic ties: Past and Future 9 • China has achieved marked successes in its foreign relations with other countries. It has established diplomatic relations CHINA with Namibia, Saudi Arabia, Singapore and the Republic of Chinese Premier on Guidelines of Marshall Islands. It has also restored diplomatic relations with the 10-Year Plan 13 Indonesia. Meanwhile, relations between China and the Soviet Anhui: Rediscovering the Yangtze Union have normalized and those with Western countries have Valley 18 improved, (p. 8). Interest in Psychoanalysis Grows in China 24 Problems Confronting North-South Ties Sister Cities: A Window for Mutual Accommodation 27 • In the last decade of this century, relations between the Major Data of the 1990 Census developed and developing nations depend largely on how the (3): Population of China's dark legacy of the 1980s will be handled, a legacy which left Ethnic Nationalities 30 third world economies devastated through escalating debts, price gaps between primary and finished products, and in• BUSINESS/TRADE 32-34 creased trade barriers created by Western protectionist policies (p. 9). TOURISM 35 CULTURE/SCIENCE 36-37 Anhui Province Set to Develop the Yangtze BOOKS 38 • To expedite the development and opening-up of Anhui Province, the provincial authorities have made a strategic Index (Nos. 27-52, 1990) I-XII policy decision on developing the Anhui section of the Yantze River and will give priority to improving the investment COVERi A dock used exclusively for for• environment of four cities along the river (p. 18). eign trade at Wuhu Harbour in Anhui Province. * Beijing Review issue No.l, 1991 will be published on Photo by Wan Xuan January 7. General Editorial Office Published every Monday by BEIJING REVIEW Subscription rates (1 year): Tel: 8314318 24 Baiwanzhuang Road, Beijing 100037 Australia.. ,.A.$30.50 TLX: 222374 FLPDACN The People's Republic of China New Zealand ..NZ.$40.50 FAX: 8314318 Distributed by China International Book UK 16.50 English Dept. Tel: 8315599 Ext. 546 Trading Corporation (GUOJI SHUDIAN) USA US$30.50 P.O. Box 399, Beijing, China Canada Can.$30.50 EVENTS / TRENDS broaden common ground and de• velop co-operation between the Li Peng Continues South Asian Tour two countries. At the welcoming banquet giv• en by President Corazon Aquino hinese Premier Li Peng and The two leaders briefed each that evening, the Chinese pre• Malaysian Prime Minister other on their domestic policies mier said that friendly relations C Dr. Mahathir Mohamad and develoments and exchanged and co-operation in all technical expressed their common will that views on international issues of areas between the two countries trade and economic relations be• common concern. had consistantly increased since tween the two countries be boost• On the Cambodian issue, they the two countries established di• ed. The Chinese leader arrived expressed the hope that another plomatic relations in 1975. in Malaysia on December 10 to Paris conference would be con• Li said Aquino's goodwill visit start the first leg of his south vened at an early date so that to China in 1988 "contributed to Asian visit, which was also to a political solution could be consolidating and expanding the take him to the Philippines, Laos achieved, as called for by the five friendly relations between the and Sri Lanka. members of the United Nations ; two countries." During a three-hour official Security Council. In her speech, Aquino said talk with his Malaysian coun• Mahathir voiced appreciation both the Philippines and China terpart on December 11, the for China's positive role as a were engrossed in massive na• Chinese premier said that he ex• peace-keeper on the Security tional undertakings to accelerate pected his current visit to further Council. economic development so that the friendship and co-operation In an exchange of views on the their respective people may real• between the two countries. Gulf crisis, the two sides said ize a higher quality of life. He stressed that differences in ; they need to initiate political dia• Aquino reiterated her commit• social systems and national con• logue and make joint efforts to- ment to a "one China" policy, ditions would not affect Sino- ! wards preventing war in the re- saying that it was the "corner• Malaysian relations, which are I gion. stone" of Manila's relations with based on the Five Principles of At a cocktail reception held by j Beijing. Peaceful Coexistence. the Malaysian National Cham• The two countries have signed Mahathir said that since his ber of Commerce and Industry agreements on exchanges of visit to China in 1985, bilateral that same evening, Li welcomed products and co-operation in cul• trade volume has tripled and ge• the decision of the Malaysian ture, civil aviation and science nerally developed very smooth• Government to remove its res• and technology. Bilateral trade ly. The six trade agreements be• trictions on tourist visit to China, between China and the Philip• tween the two countries signed saying that it was a wise step pines totalled US$300 million thus far are responsible for this i which would promote economic last year and is expected to top expansion, he said. co-operation and exchanges be- I US$400 million in 1990. Besides, Mahathir added, Ma• tween the two countries. During their talks the follow• laysia has removed restrictions Li assured Malaysian business• ing day. Premier Li expressed on visits to China and non• men that China attached great appreciation for the Philippine's governmental cultural exchanges importance to the development "one China" policy. between the two nations have in• of trade and economic co• "We have consistently held creased. operation with Malaysia. He that the Taiwan issue be solved During their talks, both sides promised that China would con• peacefully," Li said, adding that expressed satisfaction on the de• tinue its reforms and the poli• China may not have objections velopment of bilateral trade, cy of opening up to the out• when countries having diplomat• which stood at US$1.04 billion in side world, and added that the ic relations with the People's Re• 1989. They hoped that such de• Chinese government supports the public of China keep contacts velopments would continue. idea that bilateral trade should with Taiwan, as long as such con• To accommodate increasing be conducted on a direct basis. tacts are not official diplomatic economic co-operation and per• Li left Malaysia and arrived in relations. sonnel and cultural exchanges, the Philippines on December 13. China agreed to increase crude the two countries expect their In a written statement upon his oil supply to the Philippines to already-established airlines to ex- arrival, Li said that the purpose alleviate the country's petrol I pand their service on a reciprocal of his visit is to promote friend• shortages caused by the Gulf 1 basis. ship, deepen understanding. crisis. The Chinese premier an- 4 BEIJING REVIEW, DECEMBER 24-30, 19M0 EVENTS / TRENDS nounced the donation of 100 bus• years of this century or in the He also said that China is not es to Manila as a symbol of next century. j in favour of any country having friendship. "China pursues an indepen• 1 military bases on the territory Expressing her satisfaction dent foreign policy of peace," he [ of foreign countries. He said the with the dvelopment of bilateral said: "The major task for ourI presence of US military bases in relations between the two coun• country at present is economic the Philippines is a question that I remains unanswered, adding he tries since they established di• reconstruction and modernza- j believed that the Philippine gov• plomatic ties in 1975, Aquino tion, which requires political ernment and people will properly promised that the Philippines stability and a peaceful interna• solve it with the United States on would take all necessary mea• tional environment." the assumption that the interests sures to simplify visa processing He said that China's military of the Philippine people be prodedures for visitors from force was purely defensive in na• served first. China. ture and it had no intention to Li also told reporters that Answering a reporter's ques• launch military intervention in China was willing to establish di• tion at a press conference on De• other countries in the region. plomatic ties with Brunei, the cember 15, Li said that China "Should China have any influ• last country in the Association of would not pose a threat to any ence," I^i said, "it would be for Southeast Asian Nations which country in the Asian and Pacific facilitating peace and friendship does not have such relations with region, either in the remaining in the region." China, • it could to seek a peaceful solu• Saudi King Praises China's Gulf Stand tion so long as there is even a shred of hope.