CHINESE WEEKLY OF NEWS AND VIEWS

Peng Zhen Answers Journalists' Questions

HIGHLIGHTS OF THE WEEK BeijingR^r VOL. 30, NO, 17 APRIL 27. 1987

CONTENTS

NOTES FROM THE EDITORS 4 The •('onscrvalive "Rerormist' Myth p. 14 p. 18 EVENTS/TRENDS 5-9 Ho Change in HK Policy The "Conservatives" / "Reformists" Mytli Macao Pact, A Historic Event Foundation Helps Tibet Develop • Recently some foreigners have alleged that there has been a Swapping Jobs at Talent Centre factional struggle between Chinese "conservatives'" and Weekly Chronicie (April i.V19) ••reformists." Except for a few who deliberately try to create confusion, most of these people do not know that 's INTERNATIONAL 10-13 reform and the four cardinal principles are two aspects of the Arms Control: Sun Peeps Through same political line: build socialism with Chinese characteristics. The Clouds In China there is only one Marxist faction and there is no social Zimbabwe: Achievements Since basis for complicated factional struggles as exist in the capitalist Independence world (p. 4). Turkey; Applying for Full EC Membership Answers Questions Chad; National Unity in Sight • In his meeting with journalists from Hong Kong and Petig Zhen iPUtswers Journalists' Macao, Peng Zhen, CPC and NFC leader, conllrmed that there QltesQons 14 is no "factionalism" in China's leadership. He also discussed Housing Prospects for the Year the NPC's more prominent role in China's political life and Hu 2000 (Residential Houses, Yaobang's resignation (p. 14). Pictorial in Colour; 16 Facts and Rgures: Foreign Deng on China's HK Policy Investment Up in 14 Coastal Cities 20 • reassures members of the Hong Kong Insurance Gains Ground Under Basic Law drafting committee that Hong Kong, Macao and Reforms 21 Taiwan can keep their capitalist systems after reunification with Deng Xiaoping on Democratic the mainland (p. 5). C(»itratism 23 Report on the Draft 1087 Plan What Does Democratic Centralism Mean For National Economic and • Taken from Deng's speech delivered at the Enlarged Social Development Working Conference of the CPC Central Committee in 1962, (Excerpts) (Centrefold) this article argues that without derhocracy there could be no centralism. It stresses the necessity of respect for minority Report on the Implementation opinions and expounds the principle of collective leadership Of the State Budget for 1986 and individual responsibility (p. 23). and on the Draft State Budget for 1987 (Excerpts) (Centrefold) NPC: Economic Plans for 1987 TOURISIVI 27 FROM THE CHINESE PRESS 2829 • The NPC endorsed the draft 1987 plan for national BUSINESS/TRADE 30-31 economic and social development, delivered by , CULTURE/SCIENCE 3233 minister in charge of the State Planning Commission, and the BOOKS 34 draft state budget for 1987 delivered by Bingqian, COVER: Apartment buildings under minister of Finance. Extracts are reproduced in the supplement consiruclion in lieijiiig Chen Hai (centrefold).

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n a recent meeting with foreign need to combat bourgeois Hbe- leadership set China's reform I guests. Chairman Deng Xiao• ralization and to adhere to the against the four cardinal prin• ping of the Central Advisory four cardinal principles. At the ciples. In their eyes, the two are as Commission of the Chinese end of last year, to counter the incompatible as fire and water. Communist Party said, "Some spread of bourgeois liberalization They stick the label of "refor• look upon me as a 'reformist' and and remedy the weak leadership, mists" on those who spoke about upon others as 'conservatives.' I Deng emphasized the need to take reform and opening up and am a reformist, that's true. But if stigmatize those who advocate one who advocates upholding the upholding the four cardinal four cardinal principles (the principles as "conservatives." socialist road, the Communist That is their logic. They do not Party leadership, the people's There are no understand the truth as confirmed democratic dictatorship, by the Chinese: The two Marxism-Leninism and Mao "conservative" and complement each other, rather Zedong Thought) is a conserva• "reformist" factions in than contradict each other. They tive, then I'm a conservative. So, China's leadership. There is are two aspects of the one and under the circumstances, I'm only a Marxist "faction." To same political line China has been neither a reformist nor a following over the last few years. conservative. To be more exact, I be more exact, they are This line is: In the light of China's am an advocate of seeking truth advocates of "seeking truth actual conditions, build socialism from facts." What he said is both from facts." with Chinese characteristics. witty and thought-provoking. China's original defective struc• Since the struggle against ture must be reformed to fit bourgeois liberalization was China's reality and speed up the launched and the change of country's development. Reform is a clear-cut stand and firm attitude personnel in the Party Central aimed at improving the socialist towards the struggle against this Committee took place in China, system, not deviating from or erroneous trend. If this were an there has been much speculation abandoning it. This is because the attack launched by the "conserva• abroad to the effect that the Chinese people have come to see tives" against the "reformists" as "conservatives" in the Chinese from their long-term experience alleged by certain people abroad, leadership have waged a struggle that only the socialist system can wouldn't it mean that he launched against the "reformists," and that solve China's problems. Whether an attack against himself? This "the 'conservatives' have the at the time when China em• argument simply does not hold upper hand" while "the 'refor• phasized opposition to the water. mists' are suffering setbacks." shackles of the "leftist" ideology These statements, however Premier has been a which had led to inadequate vociferous, are ill-founded. strong executant of the policies of understanding of the significance It is known to all that Deng structural reform, invigorating the of reform and opening up, or at Xiaoping is the initiator of China's domestic economy and opening to another time when China stressed reforms. He was the first to stress the outside world over the last few the need to combat the rightist the need to uphold the four years. That also is a well-known trend of bourgeois liberalization, cardinal principles at the Party's fact. Recently he became acting and to correct mistakes in work, theoretical work meeting held in general secretary of the Party this country's aim has been to March 1979. At the time he Central Committee, taking over comprehensively carry out this perceived, within society and the the post of his predecessor who Hne. This political line was Party, the presence of an had resigned. If this change is formulated collectively by China's erroneous trend where a handful arbitrarily described as the top leaders who are neither of people spread doubts about and '"reformists' Suffering setbacks "conservatives" nor "reformists." opposition to the four cardinal and 'conservatives' gaining the As Chairman of the NPC principles. He called people's upper hand," such an assertion is Standing Committee Peng Zhen attention to this trend. Over the equally untenable. said in his recent meeting with last eight years, he has spoken, Those who allege that there is a journalists from Hong Kong and ' more than anybody else, of the factional struggle in the Party Macao: "In reality, we only have a

4 BEIJING REVIEW, NO. 17 EVENTSARENDS

No Change in HK Policy

ong Kong will be allowed to all Hong Kong's affairs are to be H keep its capitalist system for at governed by Hong Kong people least 50 years after the Chinese without any control from the government recovers jurisdiction central government. "Such an idea over it, and this can remain is not realistic," he said. unchanged even after that 50-year Of course, the central govern• period, China's top leader Deng ment will not interfere with the Xiaoping said in Beijing on April management of day-to-day affairs Marxist 'faction,'" or as Deng 16. in this special administative zone; Xiaoping has noted, they are The same will also apply to there is no need for this. "But how advocates of seeking truth from Macao and Taiwan after they are can Beijing be expected to sit back facts, which is the essence of unified with the mainland accord• if something happens in Hong Marxism. ing to the policy of "one country, Kong that might jeopardize the In the capitalist world, struggles two systems," added Deng, fundamental interests of the state between political parties and chairman of the Chinese Commu• or those of Hong Kong itself?" between factions within them are nist Party Central Advisory Deng asked. quite common, because these Committee. Deng made these It is the policy of the central parties and factions represent remarks during a meeting with government that the interests of different interest groups. Conflicts members of the Hong Kong Basic Hong Kong should not be harmed between these groups lead to Law Drafting Committee. Deng and it also hopes that nothing will constant strife between their congratulated the members of the happen in Hong Kong that harms political representatives, that is committee for its progress since the interests of the state and Hong between the various political founding in 1985. The committee Kong itself. parties and factions. People have has had four sessions so far. "Our policies, including special become used to such phenomena. The drafting of the Basic Law policies towards Hong Kong and This view conforms with the "is unprecedented in world Macao, are made on the basis of situation over there. But when history" and will serve as a model the four cardinal principles. Ours someone uses the same framework for Macao and Taiwan, he said. is a socialist country under the for analyzing China, then he can Deng said that the law should leadership of the Communist only have a distorted view of the not be bogged down in too much Party," he said. To keep Hong country, and the conclusions he detail. "The political system in Kong's system unchanged, it is draws simply do not tally with Hong Kong cannot copy that in imperative to maintain socialism China's reality. In China there is the West. The present system has with China's charateristics under no social foundation for com• gone through one and a half the leadership of the Communist plicated factional struggles as in centuries. It is not feasible to copy Party, he stressed. the capitaUst world, because the the parliamentary system of While discussing the reunific• fundamental interests of Chinese Britain or the United States and to ation of Taiwan with the mainland workers, farmers and intellectuals judge on that basis whether it is under the concept of "one are identical. democratic or not," he said. country, two systems," Deng said To Chinese who are familiar Deng said the Western parlia• that the only stipulation to be with things in China, the above- mentary system is not practised in made is it must be made clear mentioned allegation made ab• China's mainland. "Our legisla• Taiwan is part of China, and road is, according to an old saying, tive body is the National People's everything in Taiwan, including its as incongruous as "a horse's jaws Congress, which is in comformity current system, will remain the in a cow's head." Many of those with China's actual conditions," same. who believe or spread this myth he added. He said, "Some American lack understanding, and when "In future. Hong Kong will be journaUsts have asked why they learn the real situation, they administrated by the Hong Kong Taiwan should be reunited with will eventually reach the correct people. The qualifications for the the mainland since the economic conclusion. administrators should be: they level on the mainland is lower." As for those who deliberately must love the country and love "My answer then was, first, the create confusion, facts will refute Hong Kong," he said. reunification of China has been their alarmist remarks. • Deng warned against the belief the desire of all Chinese people, a that everything will be all right if common wish shared for the past

APRIL 27, 1987 EVENTS/TRENDS

rule. They forced the Qing government to sign the Sino- Portuguese Beijing Treaty, which said Portugal would administer Macao permanently. Since then Macao has been a Portuguese- ruled colony. In 1979, when China and Portugal established diploma• tic relations, the two governments reached an understanding about Macao and agreed to solve the issue through negotiations.

The settlement of the Macao issue in such a short time is due to the joint efforts of the two governments and also to the policy of "one country, two systems" Chinese Premier Zhao ZIyang and Portuguese Prime Minister Cavaco Silva at the adopted by the Chinese signing of the Sino-Portuguese Joint declaration on (Macao on April 13. government. In his speech at the signing century and a half, rather than Macao Pact, ceremony. Premier Zhao Ziyang that of a party or a faction," Deng told Silva, "The joint declaration said. A Historic Event has been signed thanks to the joint "Secondly, without reunific• efforts of our two sides. During ation, Taiwan's status is not the negotiations, our two govern• n April 13, the joint declar• stable, and some day it might be ments, attaching importance to ation regarding Macao of the taken away by others." O the overall interests of Sino- governments of the People's China wishes to increase its per- Portuguese friendly relations and Republic of China and the capita income to US$1,000 by the co-operation and bearing in mind Republic of Portugal was offici• end of this century. And more the history and reahties of Macao, ally signed in Beijing by Chinese importantly, on this basis, it plans carried out consultations on an Premier Zhao Ziyang and Por• to quadruple the figure to $4,000 equal footing and in a spirit of tuguese Prime Minister Cavaco in 50 years. By then, the country mutual understanding and mutual Silva. with a population of 1.5 billion accommodation." and gross national product at Deng Xiaoping, chairman of $6,000 billion will rank among the the Central Advisory Commission He pointed out that the medium-developed countries in of the , principle of "one country, two the world. and , Chinese presi• systems" is an important state For this goal, China needs a dent, attended the signing cere• policy formulated by China to stable political situation and mony which was held at the Great achieve national reunification. continuation of current policies. Hall of the People. The successful settlement of the "China cannot sustain any According to the declaration, Macao issue has proved that the turmoil," he stressed. China will resume sovereignty concept of "one country, two He said some have asserted that over Macao effective December systems" is realistic and viable. China's open policy may be 20, 1999. "The Chinese people will continue changed after 's Macao consists of a peninsula to firmly follow this principle and resignation. They neglect that and two small islands at the outlet work hard for the complete China's policy consists of two of the Pearl River in the South reunification of our motherland," aspects: One is the open policy and China Sea. Its present population he added. the other is the four cardinal is over 400,000, of whom 97 Premier Silva said the signing of principles. When we say there will percent are Chinese. About 10,000 the joint declaration solemnized be no change in the policy, we refer are of Portuguese descent. the compromises made by the two to both aspects, not just one. At one time, Macao belonged to governments about the timing and "It is absolutely certain that our Guangdong Province's Xiangshan conditions of the transfer. "The policy of opening to the outside County. But in 1887, thejoin t declaration also has another world will continue and that Portuguese, took advantage of the meaning — it establishes a new China has not opened wide defeat of the Qing imperial court perspective for relations between enough," the Chinese leader said. in the first Opium War, put the Portugal and China," he whole area under their colonial continued.

6 BEIJING REVIEW, NO. 17 In their speeches, the two prove Macao's international com• The foundation, initiated by premiers also expressed their mercial standing. Bainqen Erdini Qoigyi Gyaincain hopes of promoting Macao's For a long time, China has been and , both stability and development. supplying Macao with necessities, vice-chairmen of the Standing In recent years, Macao's industrial raw materials, semi• Committee of the National economy has been developing manufactured goods and building People's Congress, plans to put rapidly. Its growth rate last year materials. According to available the financial support it receives reached 6.5 percent, compared to statistics, the total value of goods into economic, cultural, educ• 2.5 percent the year before. Prices and materials imported by Macao ational, public health and scient• remained stable and the inflation from interior China in 1986 ific development of Tibet. "It will rate was below 2 percent. exceeded 1.4 billion Macao yuan, help the region shake off poverty Due to the Chinese nearly twice as much as in 1980. and catch up with economically government's open policy, Before the signing, Chinese developed areas," said the Bain• economic relations between leader Deng Xiaoping said in talks qen Lama. Macao and interior China have with Silva that the solution of the Since the peaceful liberation of grown greatly. Many factories set Macao issue on the basis of the Tibet in 1959, the central up by Macao firms in the "one country, two systems" policy government has always shown mainland have gone into opera• could be a model for settling great concern for the development tion, and many commodities gaps international disputes and and progress of the region, and in Macao markets have been eliminating the world's hot spots, provided the region with financial filled. In recent years, trade fairs he said. subsidies totalling 8.8 billion yuan and talks held by China in Macao Deng described Silva's visit as (about US$2.4 billion), not have attracted many firms from opening new vistas for the including investment in construc• Southeast Asian and other development of Sino-Portuguese tion projects funded directly by countries. This has helped im- relations. • other State departments. "This has helped boost the economic, cultural, educational, health and scientific development in Tibet." Foundation Helps Tibet Develop said the Bainqen Lama. At the same time, he added, the n an effort to boost Tibet's Tibet Development Aid Found• life of the Tibeten people has been I advances, a preparatory com• ation was established in Beijing on much improved, and economic mittee to lay the groundwork for a April 15. construction and various other undertakings have entered a new Ceremony marking creation of tlie Preparatory Committee of tlie Tibet Development phase of development. Aid Fund. However, to speed up Tibet's CHEN ZONGIIE development, it is hoped that additional channels for funding will be tapped. Bainqen, also chairman of the fund, noted that the foundation is to be an unofficial, non-profit organization responsible for rais• ing funds for Tibet's economic and cultural development from friend• ly world organizations, foreign governments, overseas Tibetans, Hong Kong and Macao com• patriots, and people from all walks of life at home. "We welcome all Tibetan compatriots living ab• road, including the Dalai Lama, to provide financial support based on their feelings towards their native home," he said, adding that it will receive donations of money and materials attached with no any political conditions. He told a press conference held m EVENTS/TRENDS

New Bank of China —Open for Business " ^

The new building of the Bank of China in Beijing recently opened for business. The bank is directly under the State Council and is responsible for conducting the entire country's foreign exchange business, including the management of foreign capital and the handling of revenue and the expenditure of foreign exchange (including those in Renminbi which arc related to foreign exchange). The bank has already established contacts with more than 3,400 branches of 1,200 banks from more than 150 countries and regions. With a total floor space of 27,200 square metres, the building is 82 metres high and has 22 floors on the ground and five floors underground.

for the establishment of the The centre's 1987 Spring preparatory committee that the Swapping Jobs at Personnel and Intelligence Ex• foundation will use the first Talent Centre change Fair took place April 8-10 donations to set up new schools, at the Agricultural Exhibition give financial aid to some existing hen Jiao was overjoyed when Centre in eastern Beijing. It was schools, repair a number of Cshe finally found work at the seventh and largest job fair monasteries and temples and set Dianyang Advertisement Corpor• sponsored by the centre since it up orphanages and homes for the ation Ltd., a joint venture. was inaugurated three years ago. aged. Because of a complicated family More than 400 work units, Tibet now lags behind many background, Chen, 23, had had including local factories, schools, other regions in China, a situation trouble being accepted by a work hospitals, hotels, industrial com• unsuited to the development of the unit even though her English was panies, research institutes, and country's modernization drive, good. It was the Beijing Service enterprises in the city's rural areas, Bainqen noted. However, because Centre for Talent Exchange that as well as some units from Hebei of its remoteness and unique helped her find the job. Province, came to the fair seeking character, it has attracted many The centre, a service organiza• suitable additions to their work• overseas friends who are con• tion for talent exchange, develop• force, and more than 14,000 cerned with its development and ment and training, was established individuals in a bid to find new are wiUing to provide aid to the in June 1984, when trial imple• jobs to their liking. region. mentation of the regulations Job fair-benefit both indivi• "Therefore." Bainqen said, reforming the cadre system passed duals and units that badly need "the foundation will also act as a by Beijing's municipal Party specialists. Individual workers can liaison between local and overseas committee went into effect. The learn about many jobs in one place investors and provide the neces• centre is part of the city's during a short period of time, sary supplementary financing for Personnel Administration while units can choose the most the development of Tibet." Bureau. suitable workers from among

8 BEIJING REVIEW, NO. 17 those interested. Some units think Weekly Chronicle I for the first international sym• job fairs are much cheaper and (April 13-19) posium on traditional Chinese more fruitful than advertising for opera. recruiting workers. Han Guangyao, director of the POLITICAL April 16 service centre, said that in the past • Xinhua reports that China two years the centre has received April 17 has introduced a Lu Ban Prize, 25,500 inquiries from specialists in • The fourth session of the named after a legendary Chinese various fields and has helped more Basic Law Drafting Committee of architect, to reward outstanding than 1,400 find more suitable jobs the Hong Kong Special Admini• construction projects. within their specialized fields. strative Region closes in Beijing The centre also has the power to with an announcement that the arbitrate disputes that arise in April 17 fifth session is to be held August talent exchanges and has arbit• • China sets up a national 22-26. rated 28 so far. "We are not willing cuisine association to codify to use this right often," Han said. cooking techniques over the "It is only an administrative centuries, do research on improv• method, after all. We hope for ECONOMIC ing dishes and snacks, compile improvements in the exchanges of cook books and train chefs. talent through reform of the April 13 personnel system." • Four more ports — Wuhu, Jujiang, Huangshi and Wuhan — SOCIAL But China's attempt to reform on Changjiang (Yangtze) River the personnel system still falls are now open to foreign vessels, short of the needs of the economic April 13 according to the overseas edition • Vice-Premier urges reform, he said. Also, the problem of Renmin Ribao (People's Daily). of "ownership of talent by all levels of governments to be departments and units" has not well-prepared for possible April 15 fiooding. been resolved. For example, there • A Labour and Personnel are now 557,000 staff members in Ministry official says 600 Chinese the units under Beijing munici• cities and counties have adopted a April 17 pality. Of these 294,000 are new pension and retirement specialized and technical person• system in which enterprises pay a • At a meeting on public nel of various kinds, and about 24 certain percentage of their em• health in , leading medical percent of them cannot give full ployees' wages to a local labour experts and managers call for play to their skills. About 70 insurance department which then urgent reforms of present hospital percent of the specialists who takes over the enterprises present management systems, Xinhua come to the centre looking to job task of paying out pensions. reports. changes are in positions unsuited to their special training, he said. Han said that the contract CULTURAL FOREIGN RELATIONS system should be developed to put relations between individuals and April 14 April 15 units on a reciprocal basis. China • Wan Mingfu, a doctor in • Chinese leader Deng Xiao• should also pass laws granting Chongqing, Sichuan Province, has ping tells former president of that specialized personnel the found that acupuncture can help Tanzania and head of Julius right to resign, he said. fat people lose 7 to 20 kg after a 25- Nyerere that China actively China's personnel departments day treatment, Xinhua reports. supports establishment of the are now facing the challenge of • China's universities and South Commission to promote co• new concepts of personnel man• colleges will enrol 620,000 new operation among developing agement, he added. However, students this year, an increase of countries. some people still believe talent 8.4 percent over 1986, according exchanges are a practice unique to to Liu Zhongde, vice-minister of April 17 capitalist countries. "They should the State Education Commission. • Premier Zhao Ziyang meets rethink this," said Han. "EnHght- visiting President of the Congo ened, scientific methods of April 15 Denis Sassou-Nguesso and as• personnel management should be • About 80 Chinese and sures him that a major facet of introduced to make better use of foreign opera experts from the China's foreign policy is strength• talented people." United States, Britain, France and ening its unity and co-operation by Wang Yanjuan the Soviet Union come to Beijing with African countries.

APRIL 27, 1987 9 m INTERNATIONAL

ARMS CONTROL sort of land-based testing of the system. In addition, he explained clearly for the first time the Sun Peeps Through the Clouds meaning of the term "laboratory," which has been the subject of United States Secretary of State George Shultz's Moscow wrangling by both sides since the visit led to progress in arms control and eased recent tensions Iceland summit. Gorbachev between the two countries. pointed out that it meant SDI research work could be carried out on the ground — "in institutes, at he deadlock in US-Soviet arms Ronald Reagan, who said, "We proving grounds, at plants." Tcontrol negotiations seems to have never believed in linking Gorbachev's statement on SDI have finally been breached. those two weapon systems, but we was a response to Reagan's During his three-day visit to the have believed negotiations should decision just before Shultz's visit Soviet Union, US Secretary of be simultaneous." to trim the time limit for observing State George Shultz offered a The main block to a complete the 1972 Anti-Ballistic Missile formal response to Soviet leader success of the Moscow talks is the (ABM) treaty from 10 to five Mikhail Gorbachev's proposal to US reservation about years. Gorbachev called his new open talks on removing short- Gorbachev's new offer. Shultz offer a compromise decision and range missiles from Europe, which said at a press conference final effort. would pave the way for an following his Moscow visit that Gorbachev replied to an agreement to reduce medium- Washington has the right to invitation by US President range nuclear weapons in Europe. develop short-range missiles and Reagan to visit Washington by He explained the American stance deploy them in numbers approxi• expressing interest. He said he on this matter in detail. Though mately equal to those of the Soviet hoped for a summit this year but differences remain, both sides say Union before an agreement to set needed "serious business" to they are closer to an accord on this ceilings on the number of such justify the trip. He said that since issue and agreed to leave missiles is reached. The US side he was not near retirement, he Euromissile reductions and verif• has long referred to destroying all ication to negotiators at the could not travel just for pleasure. INF worldwide instead of remov• Geneva talks, which are to open Observers noted that Gorbachev ing only Euromissiles. But this next month. would only go to Washington to time Shultz said that if the Soviets sign an accord on medium-range insist that each side retain 100 The Euromissile deal, which has missiles, otherwise he would not. warheads outside Europe, the taken shape since last October's Shultz's visit was shadowed by United States might have to keep summit in Iceland, means remov• quarrel over "penetration" of the Soviets company. Finally, it is ing Soviet SS-20 and US cruise each nation's embassies, the most important for the US to and Pershing II missiles from outgrowth of a sex-and-spy consult with its allies about Europe, but each side would retain scandal in the US embassy in Gorbachev's new offer before any 100 warheads elsewhere. In Moscow. But when he left for accord can be hammered out. February, the Soviets dropped Western Europe to inform allies of their demand for a link between During this US-Soviet talks, his talks with the Soviets, the Euromissiles and the US Strategic Gorbachev also made a new climate seemed brighter, thanks to Defence Initiative (SDI). Despite suggestion about SDI, saying new hopes for arms control. the change, the US insisted on Moscow would not object to any linking the Euromissile pact to a by Wan Di deal on short-range missiles in the belief that removing Euromissiles ZIMBABWE would leave the Soviets with a great advantage in short-range weapons. Achievements Since I Independence On the eve of Shultz's Moscow visit, a message came from Since achieving independence in 1980, the Zimbabwean Gorbachev in Prague that negoti• people have met with successes in economic development and ations on short-range missiles should run concurrently with talks foreign affairs. on the intermediate nuclear force (INF) in Europe. Gorbachev's imbabwe won independence Prime Minister Robert Mugabe new overtures received a reserved Zon April 18, 1980. Since then," have made great strides in building welcome from US President the Zimbabwean people under the country and in diplomacy.

10 BEIJING REVIEW, NO. 17 For seven years, the Zimbab• 1985-1986 they had another other front-line countries and has wean government has pursued bumper harvest, with a maize taken an active part in regional national reconciliation and unity, output of 2.9 million tons. The economic co-operation. It is a stressed development of science 1987 maize in store is expected to member of the Southern African and technology, and improved the amount to about 2.5 million tons. Development Co-ordination Con• level of production and manage• In the field of mineral ference and the Preferential Trade ment of state enterprises, co• production, the output value of Area for Eastern and Southern operatives and private businesses. mineral products in 1984 was Z$ Africa. The government has also 546 million, and in 1985 Z$629 Zimbabwe opposes South concentrated on developing social million, a 15.2 percent increase. Africa's racist policies, which services and basic facilities, and Zimbabwe has some foundations threaten the peace and stability of encouraged national enterprises to for manufacturing and a balanced neighbouring countries. It urges join strategic industrial depart• mix of light and heavy industrial the international community to ments. A number of new state and goods. Food, hardware and adopt comprehensive, mandatory co-operative enterprises have been chemical industries are fairly economic sanctions against the established, including such in• developed. Zimbabwe's level of Pretoria regime and has called for dustrial sectors as chemicals, production technology is higher an end to apartheid. It supports fertilizers, construction and than that of other African the efforts of the African National capital goods. countries. However, there are still Congress of South Africa, Pan- Regarding industrial develop• some problems in Zimbabwe, such Africanist Congress and other ment, the government has focused as unemployment and shortage of liberation organizations, as well as on establishing and consolidating foreign exchange. the South West Africa People's Organization for Namibian inde• the bases of science and tech• In the area of world politics, the nology, making better use of pendence. Its stand is based on the Zimbabwean government has human resources, and strengthen• United Nations Security Council's pursued the policies of peace, ing its workers' education and Resolution 435 on self- neutraUty and non-alignment, it is training. It has also improved its determination for the Namibian boldly against imperialism, revenue and financial systems to people, and it opposes South colonialism, racism and power suit the new order. Export trade Africa's attempt to tie Namibian has increased with the establish• politics. In September 1986, independence to withdrawal of ment of a national trade Zimbabwe hosted the eighth non- Cuban troops from Angola. corporation. aligned summit conference. It has Zimbabwe has been developing stressed friendly and co-operative diplomatic and trade relations The Zimbabwean government relations with Mozambique, Tan• with Eastern and Western has paid special attention to the zania, Zambia and Botswana. countries. issue of land for the peasants and Zimbabwe has engaged in frequ• by Shi Fei rural settlements. It has worked ent political consultations with the out a three-year plan for rural development. Thus far, the government has settled more than 1 million refugees and assigned 2.5 TURKEY million acres of land to 18,000 peasant households. It has also actively supported the peasants Applying for Full EC Membership and raised their living standards. There is free primary education and free medical care for low- Turkey is knocking at the door of EC, but it will probably not income families, and wages for open until the next century. workers and staff members have risen somewhat. The above policies have pro• moted economic development. urkey has formally applied to before the end of April. The Zimbabwe had a bumper harvest T join the European Community ministers will decide by a majority in 1980-1981, with a maize output (EC) as its 13th member, Leo vote or by consensus on whether of 2.8 million tons. Although the Tindemans, current president of to approve the application. Zimbabwean people suffered from the EC Council of Ministers, Turkey's minister of state in droughts between 1982 and 1984, announced on April 14. charge of relations with EC which resulted in smaller harvests, Tindemans said the application described the application for full they survived this difficult period would be examined objectively membership as a "solemn and because of large grain reserves. In when EC foreign ministers meet historic moment for Turkey,"

APRIL 27. 1987 II INTERNATIONAL saying that his government would main reason is said to be Turkey's starting December 1,1986, but the ensure the integration of Turkey economy, which lags far behind community's foreign ministers into the EC and that the Turkish that of the EC member nations. vetoed the accord at a meeting last people would share in the EC's The nation's per-capita income is December because of the pres• destiny. He expressed hopes for an US$1,000, less than half that of sures caused by Turkish im• affirmative response in the near Portugal, a full EC member with migrants. Moreover, Greece, future. the lowest per-capita income. The which has a long-standing ter• Links between Turkey and EC big economic gaps among EC ritorial dispute with Turkey, has can be traced back to the 1960s. members — the so-called "South- voiced strong objections to Turkey, which regards itself as a North contradiction" — pose Turkey's entry into EC. European country although 97 many problems to the organiz• Newspapers in Western Europe percent of its territory is located in ation, including how to assign have pointed out that Turkey has Asia, signed an association financial shares and farm-product a long, difficult road ahead before agreement with EC in 1963 and quotas for its members. In the EC door opens and that this is became an associate member the addition, internal and external unHkely before 1990. following year. A supplemental problems brought about by Turkey also made a formal accord reached in 1973 said Spain's and Portugal's entry make application for full membership in Turkey would officially become a it impossible for EC to accept now the Western European Union full member of EC 22 years later, yet another country with low level (WEU) at the same time. The by 1995. However, EC froze aid to of economic development. Turkish foreign ministry noted Turkey in 1980 after the country's that Turkey wants to join WEU armed forces seized power in a EC's reluctance to admit because it attaches great im• coup and declared the martial law. Turkey is heightened by fears that portance to the defence of Europe The strain in relations did not ease its entry into the community as laid out in the North Atlantic until last year. would mean heavy influxes of Treaty Organization (NATO) Turks into other EC member aUiance and because of its interest The Turkish government has countries. The 1.8 million Turks in in the integration of Europe. It always given priority to its entry EC countries, mainly in West appears that Turkey is keenly into EC. Since Prime Minister Germany, has contributed to interested in forging strong links Turgut Ozal came to power in unemployment rates. In 1976, EC with Europe, especially given its 1983, he has followed a free and Turkey signed an agreement strained relations with Greece, a economic policy, reforming the allowing free entry of Turkish member of NATO and EC. tax system, making changes in labourers into EC countries by Zheng Yuanyuan state enterprises, fostering private business and encouraging exports. These measures have slashed the country's inflation rate from 130 CHAD percent in 1981 to 38 percent in 1986, expanded export trade, and improved the lagging economy, National Unity in Sigiit with the economic growth rate reaching 5 percent a year over recent years. Such economic On March 27, Chad's government troops captured Faya- momentum has given Turkey the Largeau, the biggest town in northern Chad, and drove Libyan confidence to apply for full EC membership. Analysts said Tur• troops to the north. The Chad civil war, which has lasted for key would receive great trade and more than 20 years, seems to be drawing to a close. economic benefits from full EC membership and would not suffer any political or economic losses in he capture of Faya-Largeau latitude, which divided Chad into its relations with its oriental trade T was another brilliant victory southern and northern sections in partners. for the Chadian government since 1982. On January 12 this year, However, EC is unlikely to its troops began the attack four they first recaptured one town in approve Turkey's application. months ago. The victory marks a northern Chad, and then, on Although the organization's fore• practical end to Libya's occup• March 22 took Ouadi Doum, the ign ministers agreed to give ation of northern Chad, which has second largest Libyan army and objective consideration to lasted for four years. air force base in Chad. Libya Turkey's application, they also In November 1986, the Chadian owned the 3,800-metres runway said it would be difficult for EC to government troops launched an and advanced air monitoring approve it for the moment. The attack across the 16 degrees north equipment and had 5.000 troops

12 BEIJING REVIEW, NO. 17 stationed there. The capture of community. But Goukouni, not the United States. Ouadi Doum was a turning point taking his defeat lying down, The Libyan troops have now for the Chadian government launched a massive attack^ retreated to the northern moun• troops. It removed the natural supported by Libya, on Habre tains and Aozou Strip of Chad. protective screen sheltering forces in June 1983. This put Military co-operation between Libyan troops in Faya-Largeau. Habre's forces in a critical Habre and Goukouni forces has Air and ground connections with situation. In response to Habre's paved the way for ultimate Libya's north bases were cut off appeals, the French troops in recovery of the northern territory and the town was isolated. Under Chad joined in, taking military occupied by Libyan troops. such conditions, the Libyan action and establishing a security On April 16 Goukouni said in troops had to retreat to the deep line along the 16 degrees north Libreville, capital of Gabon that north bases near the Chad-Libya latitude. This finally halted the current President Habre should be border without returning fire. attacks of Goukouni and Libyan recognized as the country's The victories by the government troops. The line that divided Chad legitimate head of state. Gou• troops in the north have greatly into two parts had never been kouni had just held a two-hour inspired the Chadian people, who broken through, although there talk with Gabonese President have been thirsting for the were some battles between two Omar Bongo, who is playing an peaceful unity of the country. sides. important role in promoting When the news that Faya-Largeau The present dramatic changes reconciliation between the fac• had been liberated spread over the of military situation in Chad have tions of Chad. radio, people in the capital took to been attributed to the Habre the streets to hail the victory. At He said that Habre should make government's policy. While con• concessions to all leading rebels so night, signal flares shot into the taining Goukouni and Libyan sky from everywhere. that they could rally to him troops north of the dividing line without feeling humiliated. He However, the victory was hard- with support from the French also said that he was prepared to won. Chad gained independence troops, it has been striving for the return to Chad under certain in 1960. Five years later, the national conciliation on one hand conditions. Although he did not Christian minority in the south and preparing to recover the specify, it is understood that one came into power. The Muslims in northern territory from Libya on of these is the establishment of a the north refused to obey and the other. Early last year, more multi-party system in Chad. began carrying out anti- than 3,000 anti-government guer• Goukouni was deposed as government struggles. By 1968 the rillas in the south walked out of president by Habre in 1982 and struggle had enveloped the whole the jungle and gave allegiance to stayed in Libya for several years country. By 1973, anti- Habre forces, which made the until he left Libya for Algeria last government forces, supported by south first to realize peace. In the February. north, there was discord between Libya, occupied half the country's by Li LI territory. In 1978, the government Goukouni and the Libya troops. had to come to terms with the anti- On October 16, Goukouni government forces and established declared that he was willing to a Transitional Government of hold unconditional consultations National Unity (GUNT) with with Habre government. The Goukouni Oueddei as president. Chief of Staff of Goukouni forces But soon the two main forces led the main forces converted to within the government, one fighting against Libyan troops headed by Goukouni and the together with Habre forces, which other by Hissene Habre, divided put the Libyan troops in an into warring factions and began unfavourable military situation. armed confrontation. Backed by Libyan troops in an unfavourable Libyan troops, Goukouni forces military bases in Tibest Highlands in the north marched to the south were caught in a pincer attack and occupied the capital. Later, between Chad government troops however, Habre's forces, sup• from the south and Goukouni ported by French troops, re• forces from the north. captured the capital and drove the The recent victories of Chad Goukouni forces to the north. government troops have also been Habre established his oVvn govern• due to logistical support of the ment, which has been generally French troops and a large amount recognized by the international of military aid from France and

APRIL 27. 1987 13 m ARTICLES

Peng Zhen Answers Journalists' Questions

n April 8, Peng Zhen, member Dialectics presupposes constant objective is the wish and honour of O of ihe Political Bureau of the reform and constant progress. the state and us Communists. Party Central Committee and Comrade Deng Xiaoping said Q: It has been said that you chairman of the NPC Standing that if you talk about reformists he want very much to be on the Committee, answered questions is a reformist; if one insists that Standing Committee of the CPC raised by reporters from Hong adherence to the four cardinal Political Bureau. Is it true? Will Kong and Macao who came to principles is conservative then he Deng Xiaoping retire at the 13th cover the Fifth Session of the Sixth is a conservative. To be more National Party Congress? NPC and Fifth Session of the exact, he said, he belongs to a Peng: Before the 12th National Sixth CPPCC. The following is a "faction" seeking truth from facts. Party Congress in 1982, many report by our correspondent Lu This is well said. We Communists comrades suggested I enter the Yun. represent and serve the common Political Bureau Standing Com• Question: There has been interests of the 1 billion people of mittee. Comrade Deng Xiaoping much talk abroad about Chinese all nationalities in China. Be it the said at a meeting: "Comrade Peng leaders being divided Into a National People's Congress, the Zhen is fully qualified to be a "reformist faction" and a State Council, the Chinese member of the Political Bureau "conservative faction," and that People's Political Consultative Standing Committee. I'm all for you are not a "reformist." What Conference or the democratic it." 1 was getting on for 80 at the do you think.of this? parties, the common interests of time. I told them they should Peng: People abroad are free to the Chinese people are what they consider comrades in their 50s and say what they like. If there were discuss and where their primary 60s. What I meant was that they any "faction" in China, it is the concern lies. Some people see should select some younger "faction" of Marxists. As Lenin things distorted and arbitrarily comrades when many old ones are said. Marxism is, in essence, divided us into reformist and still alive. I'm for the combination critical and revolutionary. To conservative factions. They say 1 of the old, the middle-aged and the make revolution implies going am a conservative, I don't care a young in our leading bodies. Older through reforms - from capital• hang. They can say what they like. comrades have more experience ism to socialism and then to Our purpose is to serve the and can pass on their knowledge comniLmism. Such reform re• majority of the people and to the younger cadres and help quires a very long period of time. eventually move from socialism to them take over from the veterans To practise socialism, we must communism. To achieve this later. This will also help ensure have the leadership of the Communist Party. Simultaneous• ly we must enforce the people's democratic dictatorship and per• sist in Marxism. Leninism and thought. The proletariat can only emancipate itself after the emancipation of all humanity. With the disappearance of classes and the state, the political party of the proletariat — the Communist Party — will wither away. This entails a very long process, and nothing can be achieved without reform. Some people set Marxism against reform. A majority of them have done so out of misunderstanding, but some have ulterior motives. The Communist Party acts according to dialectical material• ism and historical materialism.

14 BEIJING REVIEW, NO. 17 stability for the state. Old made collectively by the Party members and people's deputies. comrades pass on their experience committee. There were so many Q: Some foreign reports said to young people and young people people in his Party committee. that you played a very important excel the old people — that is the How can you take him to court, role in General Secretary Hu way history advances. how do you punish him? Yaobang's resignation. Any com• As for Comrade Deng Xiao• Under the old director responsi• ment about this? ping, he is very fit, his mind is bility system under the leadership Peng: Basically this is not true. alert, he can go on working for of the Party committee, nobody The work of Comrade Hu some time to come. I have been could assume full responsibility. Yaobang as General Secretary of thinking that we old comrades So I suggested a new system in the Party Central Committee may should retire, but he should which the director of a factory be divided into two stages. It is remain. 1 am not advocating assumes full responsibility, and hard to say he made no mistakes in personality cult. We of the canvassed opinions about this in the first stage. But, on the whole, Political Bureau have also played Hangzhou, Shanghai, Nanjing, he did his work alright and he our part in the decision of major Dahan, , Jilin and himself was quite modest. Prob• issues. Nevertheless, there should Heilongjiang. I'm not taking lems occurred in the latter stage. be a chief engineer and a chief credit for myself. Some people say He not only erred on the question designer. In my opinion, Deng that the NPC is conservative, that of combating bourgeois liberaliz• should not retire, he should stay in I am a conservative. In fact, before ation but also failed consistently the Political Bureau and continue the NPC Standing Committee to adhere to the four cardinal to be a Standing Committee decided to postpone the adoption principles. Sometimes he abided member. But he said that he would of the enterprise law, I had by them, sometimes he didn't. The persuade the others to let him step discussed this question with basic problem is that he could not down. Whether he can convince Premier Zhao Ziyang. adhere to the four cardinal them or not I can't say. He hasn't The director responsibility sys• principles from the beginning to convinced me. tem is a major project. Although the end. Q: How will the NPC and its our people's deputies agreed with Our Party follows the principle Standing Committee improve most of the clauses, differences of democratic centralism. All our their work? remain. Further investigation is decisions are made collectively Peng: A very important task for needed. But the NPC Standing and carried out separately. the National People's Congress is Committee meeting has confirmed Individuals should submit to the to develop socialist democracy the director responsibility system decisions of the organization, and and perfect the socialist legal and decided to carry it through. the minority, to the majority. system. In this respect we still have We already have the new Comrade Hu Yaobang failed to much to do. For instance, the Constitution and 57 laws. There obey collective decisions on some Draft of the Organic Law on are still many laws to be made in major issues and thus violated the Villagers' Committees examined the future, particularly laws principle of democratic central• and discussed at this NPC session concerning economic and admini• ism. So people had a lot of is quite a big issue. It will allow the strative affairs. The work ahead is complaints about him. We had 800 million farmers to exercise still very arduous. warned him long before, but he autonomy over their own affairs Old China did not leave us turned a deaf ear to our warnings. according to the principle of much in the way of democratic Later he found that he could democratic centralism. In fact it is traditions. To develop democracy hardly carry on his work and a very large democratic training it is necessary to foster among applied to resign. After discussion, course, and a place where they China's 1 billion people the habit the Standing Committee of the practise democracy. of acting in a democratic way and Political Bureau of the Party The Law on State-Owned knowledge of the law. We must Central Committee agreed to his Industrial Enterprises will also be also institute democratic systems resignation. The Political Bureau eventually passed. Some people in conjunction with the reforms of did the same. After all this, the abroad asserted that our National the economic and political decision to accept his resignation People's Congress is conservative structures, and strengthen the was made at the enlarged meeting and put the law on the shelf. I supervision of law. Of course, the of the Political Bureau of the CPC don't know what they will say National People's Congress and Central Committee and it was after the enterprise law is adopted. the people's congresses at all levels agreed that the decision will be Actually it is I who proposed the will also improve their own work submitted to the next plenary director responsibility system. A and keep on studying Marxist session of the Parly Central director made mistakes which he theory and knowledge of the law. Committee for confirmation. The admitted. But later he said all The NPC Standing Committee Political Bureau has the right to do these mistaken decisions had been will also strengthen its ties with its so. •

APRIL 27. 19X7 15 m ARTICLES

Housing Prospects for the Year 2000

The author, Zhu Yi, is deputy director of the Urban Housing Bureau, Ministry of the Urban and Rural Construction and Environmental Protection.

survey of urban housing, By the end of 1985, the average that by each household, 62 square A conducted in 1985 for the first per-capita construction area in metres. The statistics also showed time in China's history, brought China's countryside was 17.80 that 54.2 percent of the villages forth the basic facts and figures of square metres and the area have electric lights; 13.8 percent of housing in cities and towns. actually used by each farmer the farmers have running water; The survey indicated that by the averaged 14 square metres and and 40 percent of the rural end of 1985, the construction area households have access to purified water. for each urban resident averaged Chart II: The Equipment of Urban 15.24 square metres, the average Houses Since the founding of New area actually used by each person China, the central government has was 10.04 square metres, and that given much attention to housing by each household, 37.94 square construction which has developed metres. Apartments with kitchens rapidly in the past seven years. and toilets accounted for 26.05 percent of the total area of housing. Chart IV: Increased Investment In However, limited resources Urban Houses, (billion) have prevented China from Individual investment (million) conducting a nationwide survey of its total housing. So data of rural housing were based on the _Q. statistics provided by the depart• Electricity Running water Bathroom Kitchen Piped got ment concerned. (With electric lights 96.73% With running water 99.99% Chart I: The Structure of Urban . With toilet 34.10% Houses With kitchen 69.05% With pipe gas 8.45%)

Chart ill: The Structure of Rural 45.13 Houses 37.83 % 58.6 Chart V: The Increase of Finished Urban Houses 10.86 (million square metres) 6.18 JO. n 22.4 19.0 concrete

(Steel-concrete structured houses Brick and Thatched Others 6.18% wood and adobe Brick-concrete structured houses 45.13% (Brick-wooden houses 58.6% Brick-wooden structured houses Houses with adobe walls and 37.83% thatched ceilings 22.4% Others 10.86%) Other kinds 19.0%)

16 BEIJING REVIEW, NO. 17 Housing Boom Before 1978, about 100 million population having insufficient square metres of new houses were housing. Besides, the modestly There has been a rapid increase built in the countryside each year. equipped houses and the limited in housing investment and fin• While in the five years from 1981 number of apartments fall far ished houses in China since the to 1985, some 3.2 billion square short of the demand of the people. late 1970s, which is a result of the metres of new houses were erected Now that a strategic goal has Chinese government's policy of in the rural areas with a total been set for the Chinese people to using all possible financial re• investment of 120 billion yuan, enjoy a comfortable standard of sources of the central and local averaging 640 million square living by the year 2000, it is governments, enterprises and metres of houses and 24 billion expected that by then, most of the individuals to solve the housing yuan of investment each year. urban families will be housed with problem. Besides, there was an obvious decent apartments and the farmers From 1950 to 1985, the state, improvement in the quality of the will Uve in practical, hygienic and including state-owned businesses, newly built houses. Brick-wooden compactly laid-out courtyard put in 91.83 percent of the total houses and brick-concrete houses houses. investment in urban housing, took up 56.6 percent and 28.5 The key to solving the housing while the proportion of invest• percent respectively of the total problem hes in economic develop• ment from collective-owned busi• newly built houses in 1984, ment. The target of housing nesses and individuals was very comparing with 61.22 percent and development must be set in line small. However, since the end of 28.72 percent respectively in 1985. with economic conditions. In light the 1970s, individuals have Of the newly built residences in of its economic and social gradually increased their invest• 1985, 26 percent were two-storey conditions, China will achieve the ment in housing. In 1980, their buildings. above goal in two steps. The first investment accounted for only step is to help families solve their In the rural areas, high-quality 3.14 percent of the total invest• serious housing problem before and better-structured houses are ment in urban housing. The figure 1990; the second step is to provide on the increase, replacing adobe jumped to 10.92 percent in 1985. better apartments and courtyard walls, thatched roofs, and paper- Before'the early 1970s, it was the houses for both urban and rural pasted windows. In some rela• central government that invested residents by the year 2000. To tively wealthy villages, farmers are directly in housing construction. attain their goal, the central now able to afford sanitary This phenomenon has changed government will invest directly in equipment, heating, and high- considerably, though, since the 650 million square metres of urban grade cooking equipment. Apart end of the 1970s, when local houses from 1986 to 1990, and 3 from these, solar energy and governments and enterprises billion square metres of rural marsh gas have come to be of began to pour more money into houses are expected to be increasing importance to rural life. the construction of houses. From completed in the same period. 1981 to 1985, funds invested by During the Sixth Five-Year The Chinese government stands enterprises amounted to 60 Plan (1981-85), the newly built for solving the housing problem percent of the total investment in urban houses accounted for 48 by relying on the joint efforts of urban housing. percent of the total building area the state, enterprises, and indivi• As in the cities and towns, rural from 1950 to 1985, with an duals. It is with the effort of the housing construction has devel• average of 16 apartments for 1,000 whole society, the individuals in oped dramatically since the end of people per year. At the same time, particular, that the steady devel• the i970s. the newly built houses in the rural opment of bousing is possible and Chart VI: Increased Investment in areas amounted to 47 percent of the goal can be reached. Rural Houses the total houses set up from 1950 to 1985, with an average of 11

40% • houses for 1,000 people per year. Ways and IVieans (a) Policy Summing up historical expe• Goal of Housing by 2000 rience and considering the existing problems, China has adopted a As a developing country, China housing policy for solving these is still economically backward. problems. Its main points are as The achievements made so far in follows: no way mean the end of the 1. Reform urban housing housing problem. In fact the system standard of housing is still low in For quite some time, China has 1978 1979 1980 1981 1982 1983 1984 1985 China, with about a quarter of its introduced a low-rent system,

APRIL 27. 1987 17 Outside and Interior view of new house built by a better-off farming famiiy in southern Jiangsu Province. ZHOU ZHONGYAO

under which all urban housing has 2. Control urban population the urban housing shortage can be been provided by the state. increase alleviated. However, because of the state's Rapid population growth Chart VII Population Growth limited financial resources, this brings pressure to bear on housing

system actually cannot meet the development. It is obvious that 1000 Imilliwl growing needs of housing for China's family planning policy has 900 urban dwellers and so the shortage played a positive role in control• of housing can hardly be eased. ling the population increase. From The state not only has to spend a 1975 to 1985, the average annual huge amount of investment in growth rate of China's populafion housing construction but, because was 12.36 per thousand, but from rents are far lower than construc• 1965 to 1975 it was 24,52 per Uiban population tion costs and are far from enough thousand. to pay maintenance fees, it has to allocate extra funds as subsidies With the development of 3. Set new housing standards for maintenance. The more houses industry, the urban population are built, the heavier the burden growth is an inexorable trend. Recently the Chinese govern• the state has to bear. This is so in China as is the case in ment has issued the designs and the developed as well as other standards for urban housing Now in China, rents account for developing countries. But efforts projects.lt includes an independent only 3.08 percent of an urban should be made to prevent it from apartment with sitting room, resident's total annual consump• developing unchecked. The bedroom, kitchen, toilet and tion. Thus, the low rents have Chinese government has adopted storage area. encouraged people's housing de• a series of measures to limit urban It also stipulates the minimum mand. Inadequate financial re• population growth and solve the area standard for every sources and unreasonable demand housing and other problems apartment: have widened the gap between resulting from urbanization. A bedroom: supply and demand of housing. basic policy is to strictly control double bedroom Under such circumstances, so• the size of b'g cities, rationally 9 square metres lution of the housing problem will develop the medium-sized cities single bedroom not be in sight. So the state has and promote the development of 5 square metres decided to reform the urban small cities and towns. In 1985, the sitting room: housing system. The guideline for urban population in Beijing, 12 square metres the reform is to enlarge the Tianjin and Shanghai only kitchen: proportion of personal investment increased by 10.79 percent over with gas stove in urban housing projects, intro• 1981, but the population in towns 3.5 square metres duce new housing rent standards, increased by 25.11 percent in the with coal stove and encourage individual families same period. The way to control 4.5 square metres to buy housing. Of course the urban population growth is with firewood stove attention must be paid to citizen's developing the rural economy. If 5.5 square metres incomes and society's financial the rural labour forces can work in toilet: 1.1 square metres support. A few cities have begun the small cities and towns instead this reform. of pouring into the big cities, then washroom 1.8 square metres

18 BEIJING REVIEW. NO. 17 • DOCUMENTS IIIM Report on the Draft 1987 Plan for National Economic and Social Development (Excerpts) (Delivered at the Fifth Session of the Sixth National People's Congress on March 26, 1987) Song Ping and IVIinister in Charge of the State Planning Commission

Second, industry, which had been developing at a super-high rate in 1985, slowed to a normal pace, maintaining an appropriate rate of growth. Total annual output value of industry rose by 11.1 percent, or 9.2 percent excluding village industrial undertakings - that is, slightly more than the planned 8 percent. Light and heavy industries continued to develop proportionately and that the output of both readily marketable consumer goods and important means of production increased rapidly. The output of woollen fabrics, sugar, beer, tape recorders, cameras and household refrigera• tors grew at rates between 12 and 54 percent. The output of electricity reached 445.5 billion kwh., 8.5 percent more than in 1985. Production of steel was more than 50 million tons and of rolled steel 40 million tons, representing an increase of 11.2 percent and 9.8 percent respectively over the previous year. The state plans for transport, post and telecommunications services were overfulfilled. I. Implementation of the 1986 plan Third, the excessively rapid growth of Nineteen eighty-six was the first year of the investment in fixed assets was somewhat slowed, and Seventh Five-Year Plan for Economic and Social construction of key projects was accelerated. In 1986 Development. In this year both construction and investment in fixed assets of state-owned enterprises reform went smoothly. The Plan for 1986 was and institutions came to 193.8 billion yuan, an fulfilled, there were fresh, encouraging achieve• increase of 15.3 percent over the preceding year. Of ments in every field of endeavour and the economy this, investment in capital construction was 115.2 grew steadily. All this has laid a solid foundation for billion yuan, an increase of 7.3 percent, which was the implementation of the new Five-Year Plan. much lower than the 44.6 percent increase in 1985. More funds were invested in the energy, transport First, tlie rural economy lias been growing on tlie and raw and semi-finished materials industries, basis of increased grain production. In 1986 the representing 49.6 percent of the total as against 48 production of grain increased. Despite the fact that percent in 1985. Ninety-six large and medium-sized several major grain-growing provinces suffered projects and 165 single items were completed and serious natural disasters, the overall harvest reaped put into operation. Capacity for electricity was fairly good: total output was 391,090,000 tons, generation, coal mining, oil extraction and steel representing an increase of 11,990,000 tons over production as well as the handling capacity of ports 1985. The total annual value of agricultural output all increased more than in any other year in the past grew by 3.5 percent over the previous year, decade, as did the mileage of new railroad track put surpassing the projected growth rate of 3 percent. into operation. Technological transformation of Other rural undertakings developed much faster: existing enterprises was carried out at a higher rate, total output value of industry, construction, with 60.1 billion yuan invested in updating transportation and commerce grew by 22.3 percent. equipment and transforming state enterprises and All this demonstrates that a new step forward has institutions, 33.8 percent more than in 1985. been taken in the restructuring of our rural Fourth, the domestic market flourished and production. more commodities were in adequate supply. The total

1 value of retail sales in 1986 came to 495 billion yuan, and corresponding measures were taken to reform an increase of 15 percent over the preceding year, or planning, statistics, materials supply, finance, credit 8.5 percent after allowing for price rises. Both in and industrial and commercial administration, so as town and country, volume of sales rose by a wide gradually to break down the barriers between margin for consumer goods of all kinds. The ample different departments and regions. In state supply of commodities on the market helped keep enterprises provisional rules and regulations were the rise of the retail price index down to the 6 put into effect for the contracting of labour, the percent level projected in early 1986, as against 8.8 recruitment and employment of workers, the percent in 1985. dismissal of employees who violate discipline and the provision of insurance for former employees Fifth, economic and technological exchange with waiting for new jobs. All this helped to bring about foreign countries continued to expand. In 1986 our a major reform in the labour system. Measures foreign trade was confronted with a sharp drop in taken a few years ago to reform prices and wages world oil prices, increasing trade protectionism and were improved, and ways to reform the financial many other difficulties. Under these circumstances, system and expand the market for funds were we adopted the economic policy of encouraging actively explored. Taken together, these reforms export enterprises to earn more foreign exchange. have done much to promote the growth of the We promptly readjusted the proportions of economy. different export commodities and tapped new That there are still some problems in the sources of production, thus facilitating steady economy demanding urgent solution. The chief growth in this area. According to customs statistics, ones are as follows: total annual export volume reached US$30.9 1. Investment by local authorities and extra- billion, a 13 percent increase over the previous year. budgetary investment exceed the amount set in the Total volume of import was US $42.9 billion, 1.6 state Plan and that there are still too many fixed- percent more than in 1985. A total of 4.8 billion assets projects under construction in the society as a dollars' worth of foreign loans was actually used, whole. somewhat more than in the previous year, and 2. Consumer demand is growing too fast. The many more of the projects funded directly by average wages of workers and other employees last foreign businessmen were productive ones. year were raised by 16 percent over 1985 (8.4 percent in real terms after adjustment for price Sixth, science, education, culture, public health rises), an increase far surpassing the rise in labour and sports developed further. In 1986 we started productivity, which was 4 percent. systematically to launch key scientific and 3. Our industrial product mix does not meet the technological state projects in accordance with the changing demand of the market. The production of Seventh Five-Year Plan. More than 4,000 many goods consumes too much material and technological development projects were included consequently costs too much. in the "spark programme" designed to invigorate 4. There is a deficit in state revenue, the prices the rural economy. Nine-year compulsory of some commodities have soared and there is an education was introduced wherever local conditions imbalance in receipts and payments of foreign permitted. Higher and secondary education, exchange. This shows that the problem of making vocational and technical education and adult total social supply meet total social demand has not education developed steadily on the basis of yet been fundamentally solved and that there are readjusted disciplines and improved quality of still some unstable factors in the economy. instruction. Progress was made in the press, The problems we are confronting in our efforts publishing, broadcasting, cinema, television, to develop the economy are those encountered not literature, art and other cultural undertakings. by a declining economy but by a growing one. But Medical care was improved for the masses. New so long as we continue to push the reform and to successes were scored in sports. adopt correct policies and measures, the problems Seventh, the people's living standards in both will be solved. town and country were raised. A sample survey shows that the portion of average per-capita income II. Tasks and Emphasis of the 1987 that urban residents spent on living expenses came to 828 yuan, an increase of 20.9 percent over the Plan preceding year, or 13 percent after adjustment for In accordance with the arrangements and price rises. Average per-capita net income of requirements for the first two years of the Seventh peasants was 424 yuan, an increase of 6.7 percent, or Five-Year Plan, and taking into consideration the 3.2 percent after allowing for price rises. Housing actual conditions, the 1987 Plan for National was improved for both urban and rural residents. Economic and Social Development essentially sets forth two tasks: to achieve a basic balance between Eighth, economic restructuring progressed on total demand and total supply and to maintain a the basis of the consolidated achievements of the past steady development of the economy. These are to be few years. Extensive horizontal economic ties were accomplished by conducting a vigorous campaign established between regions, trades and enterprises, to increase production, practise economy, raise

II revenue and reduce expenditure, and by deepening first-stage project. We shall complete the rolling- the reform to further invigorate large and medium- mill projects at the Wuhan, Panzhihua and sized enterprises and to strengthen agriculture for Tangshan Iron and Steel Companies and a number continued growth. of technological transformation projects, with a (1) We must strengthen agriculture to bring view to expanding the capacity for rolled steel of about a greater increase in the output of grain and different varieties urgently needed at home. We plan other farm and sideline products urgently needed by to lay an additional 538 kilometres of track, to the society. double-track 532 kilometres and to electrify 677 In 1987 we shall try to bring our total output of kilometres. So far as ports are concerned, we shall grain up to between 400 and 405 million tons, 8.9 to emphasize the building of off-loading docks in 13.9 million more than in 1986. At the same time we coastal provinces and cities that are short of coal must work hard to increase production of cotton, and the construction of ports in coastal cities that oil-yielding and sugar-yielding crops and high- are open for foreign trade. quality tobacco and to diversify the rural economy In 1987, 195 billion yuan will be invested in so as to bring about all-round prosperity in the fixed assets of state enterprises and institutions, countryside. In 1987 total agricultural output value roughly the same amount as in 1986. is planned to reach 313.5 billion yuan (calculated in (4) We must adhere to the policy of opening to terms of constant prices for 1980), an increase of 4 the outside world and expand export in order to earn percent over last year. more foreign exchange. (2) We must readjust the structure of industrial We shall continue to tighten control over production, emphasizing the product mix of the imports, especially consumer durables and ordinary textile industry and other light industries and of the machine-building and electronic equipment. We machine-building and electronics industries. must ensure that our limited foreign exchange is We must try to increase production of quality spent to purchase advanced technologies, key brands and of goods in short supply, while curbing equipment and those raw and semi-finished production of inferior and overstocked goods. This materials that are in short supply on the domestic year we plan to update 20 percent of the existing market and to increase our capacity to generate varieties of light industrial products and to develop more foreign exchange through export. We must do a number of new ones. In the machine-building and our best to achieve a balance between receipts and electronics industries we should concentrate on the payments of foreign exchange this year. manufacture of special large modular sets needed by (5) We must undertake a number of key projects the energy and raw and semi-finished materials in science and technology and other projects for industries and on the production of railway rolling spreading the application of advances in these areas. stock. Where prpducts are assembled in China from We must also train more skilled people in different parts that are mostly imported at present, we should fields and promote cultural progress of all kinds. try to make more of those parts ourselves. We must see to it that the bidding and According to the 1987 Plan, total industrial contracting for key scientific and technological output value will be 1,100 billion yuan (calculated in projects to be undertaken during the period of the terms of constant prices for 1980), an increase of 7 Seventh Five-Year Plan are conducted properly. percent over 1986. Light industry will grow at We should make sure that advanced technologies roughly the same rate as heavy industry. are applied as widely as possible, that the "spark (3) We must continue to strengthen the programme" is carried out and that technological construction of key projects and increase the capacity progress in production is speeded up. We should of the energy, raw and semi-fmished materials, research and develop high technologies. Regular transportation and communications industries. higher education should be steadily developed and In 1987 we plan to complete and put into teaching conditions gradually improved. In 1987, operation generators with a total capacity of 5.5-6 620,000 students will enter regular or special million kw., of which 1 million kw. will be added to undergraduate programmes offered by regular power grids in north China, 1.1 million kw. to institutions of higher education, and 45,000 , 1.2 million to east China and 0.9 students will be enrolled in postgraduate million to central China. A 500,000-volt programmes. transmission and transformer project for these four People working in the fields of literature, art, regions will be completed this year, and testing will broadcasting, cinema, television, the press and begin on China's first 500,000 ultra-high-voltage publishing and in other cultural areas must uphold DC transmission project. the Four Cardinal Principles and take a firm stand In the raw and semi-finished materials against the tendency towards bourgeois liberaliza• industries, the emphasis will be on accelerating the tion. They must resolutely implement the principle development of iron and steel production and on of "letting a hundred flowers blossom, a hundred expanding the nonferrous metals, chemical, schools of thought contend" and the principle of petrochemical and building-materials industries. serving the people and socialism: they should work Specifically, we shall construct the second-stage hard to make socialist literature and art flourish so project of the Baoshan Iron and Steel Complex in as to enrich people's cultural life. They must Shanghai and provide complete equipment for the continue to develop public health and sports.

Ill We must persist in our efforts to promote building standards, reducing consumption of family planning and control the growth of materials, cutting operating expenses and population. eliminating unnecessary expenditures. (6) We must improve the living standards of both To achieve good results in increasing urban and rural residents on the basis of expanded production, practising economy, raising revenue production. and reducing expenditure, we must do the following In 1987 we must arrange to provide jobs in in 1987: cities and towns. Total wages of workers and other 1. Further shift the focus of work to the employees will increase over the 1986 figure by 14 improvement of economic performance. billion yuan, the bulk of which will necessarily go to 2. Further readjust the investment pattern and the newly employed and to those who, after a trial strive to increase returns on investment.' In 1987 we period, become regular workers on regular wage must be sure to follow the State Council's guidelines scales. We shall build houses for the workers and known as the "three guarantees and three other employees according to plan, trying to restrictions." This means we must guarantee the complete 90 million square metres of new floor construction of projects included in the Plan, of space. The peasants' income will continue to rise productive projects and of essential state projects, with the growth of agricultural production. We while restricting projects that are outside the Plan, must go on helping poor areas to lift themselves out non-productive and non-essential. One of the of poverty and become prosperous. important measures that the state will take is to To keep pace with the growing income of both issue through the banks 10 billion yuan's worth of urban and rural residents, we must increase the bonds for key construction projects and for key market supply of commodities in town and country. enterprises. This will enable us to muster extra- Total volume of retail sales in 1987 is projected to be budgetary funds from the various localities, 555 billion yuan, 12.1 percent more than last year. departments and enterprises for the construction of People's governments at all levels must exercise major projects envisaged by the Plan in the energy, strict control over the market, ensuring that general transport and raw and semi-finished materials retail prices rise no more than they did in 1986. industries. 3. Restrain the excessive growth of consumer demand and resolutely cut back unreasonable, non• III. Increase Production and Practi• productive expenditures. 4. Strengthen control over foreign exchange and se Economy, Deepen the Reform foreign loans and make effective use of them. and Completely Fulfil the 1987 5. Strictly enforce financial and labour discipline Plan and strengthen economic supervision The State Council has decided that the major The key to complete fulfilment of these tasks in tasks of the economic structural reform in 1987 are 1987 is to do well in two major respects: first, to put as follows: to invigorate enterprises, especially large a brake on spending and carry out the nationwide and medium-sized state-owned ones, focusing on campaign to increase production, practise the reform of their managerial mechanisms and of economy, raise revenues and reduce expenditures in their leadership structure; to continue to expand ail occupations; and second, to deepen the horizontal economic associations; to speed up economic structural reform, focusing on the further financial reform appropriately; to further expand invigorafion of large and medium-sized enterprises. the market for means of production; gradually to According to the 1987 Plan, industrial reform and improve the labour and wage systems of enterprises should raise their labour productivity by the enterprises and their management of investment 4 percent, reduce their material consumption by 2 in fixed assets; and to make necessary preparations percent, cut their overall operating expenses and for the whole range of reforms. There will have to be those of their workshops by 10 percent and reduce certain reforms in the planning system. In their losses in the process of production by 30 particular: 1) the scope of mandatory planning and percent. Commercial enterprises should reduce the number of materials under unified state their costs of circulation by 2 percent and their distribution will have to be further reduced and the losses by 20 percent. All industrial, transport and scope of guidance planning and market regulation commercial enterprises should reduce the amount broadened, and 2) better ways of implementing of funds tied up and shorten the length of time for guidance planning will have to be devised. The State turnover of working capital by 2 or 3 percent. In Planning Commission will further investigate and capital construction, 5 percent of total investment study these problems and will work out methods for should be saved by lowering excessively high the application of guidance planning. •

IV The United Nations has designated the year 1 987 as the Year of Shelter for the Homeless. The government of the People's Republic of China is doing its utmost to improve people's housing conditions, and is issuing commemorative stamps depicting the varied styles of house building in different areas of China.

Houses in a Jiangsu market town. H^ow^ Guanmin

I.Sichuan 2. Zhejiang 3. Hunan 5. Tibet 6. Inner Mongolia 7. Northern Shaanxi 8. Anhui 9. Fufi^P 10. Taiwan 11. Shanghai 1 2. Yunnan 1 3. Northeast Oiina 14. Befjing

Newly built Inuses In Zhejiang ProvirKe. Xie Jun new building in a village in Jiangsu Province.

Wang Guanmin

A Sichuan farmer's bedroom.

Di Xianghua '

Cave dwellings in northern Shaanxi ProvirKe. Qu Weibo Report on the Implementation of the State Budget for 1986 and on the Draft State Budget for 1987 (Excerpts)

(Delivered at the Fifth Session of the Sixth National People's Congress on March 26, 1987) state Councillor and Minister of Finance

Of total revenues for 1986, tax receipts amounted to 206.45 billion yuan; receipts from state treasury bonds, 6.2 billion yuan; funds collected for construction of key energy and transport projects, 16 billion yuan; receipts from foreign loans, 7.87 billion yuan; receipts from other sources, 11.751 billion yuan; and funds carried forward from the preceding years, 6.005 billion yuan. Apart from this, subsidies for losses by enterprises amounted to 32.246 billion yuan. These were deducted from total state revenues, as they had been in the 1985 budget. For total state expenditures in 1986, the breakdown of major items is as follows: Budgetary appropriations for capital construction totalled 65.57 billion yuan. Funds expended to tap the potential of existing enterprises, finance their technological transformation and subsidize the trial manufacture of new products totalled 12.62 billion yuan. Aid to rural production and other operating I. Implementation of the State expenses for agriculture came to 12.032 billion yuan. Operating expenses for culture, education, Budget for 1986 science and public health totalled 38 billion yuan. With the development of the national Expenditures for national defence accounted for economy, state revenues in 1986 grew satisfactorily, 20.126 billion yuan. Administrative expenses exceeding the budgeted figures. This guaranteed the amounted to 16.585 billion yuan. Subsidies to financing of scheduled production and construction compensate for price rises came to 24.2 billion yuan. as well as the development of cultural, educational Expenditures for amortizing state treasury bonds and scientific undertakings and facilitated the totalled I billion yuan and for servicing the smooth implementation of the measures adopted principal and interest of foreign debt 3.4 billion. for economic structural reform. However, for As the figures for 1986 show, revenues and various reasons, expenditures also exceeded the expenditures failed to strike a balance, resulting in a budgeted amounts by wide margins, resulting in a deficit of seven billion yuan. Here, I should like to deficit. explain a few points; According to present estimates, state revenues (1) The receipt of state revenues in 1986 was in 1986 totalled 222.03 billion yuan (including satisfactory. This was, partly thanks to our domestic receipts of 214.16 billion yuan), or 103.7 adherence to the principles of economic reform, percent of the budgeted figure. State expenditures opening to the outside world and invigorating our amounted to 229.11 billion yuan, or 107 percent of economy, and partly thanks to the excellent the budgeted figure. The balance thus showed a development of the economy as a whole. In 1986, deficit of 7.08 billion yuan. China's total industrial output value increased by

V Il.t percent over the previous year, total 1985. In terms of 1986 prices, consumption funds agricultural output value went up 3.5 percent, and rose by another 12.5 percent, following a 23.7 the total volume of retail sales rose by 15 percent. As percent increase in 1985. Both exceeded the growth a result, domestic receipts exceeded the budgeted rate of the nafional income. Economic efficiency of figures and were 3.7 percent greater than in the enterprises was unsatisfactory since production previous year. State revenues were affected to a costs rose and losses increased. All these factors certain extent by the steep fall in oil prices on the were directly or indirectly refiected in finance which world market, the decline in the prices of primary upset the balance and disrupted financial stability. products, the rising cost of earning foreign It should also be noted that great changes in the exchange through exports and the decrease in structure of revenues and expenditures have taken income from customs duties. Even allowing for place in recent years in the wake of economic reform these special factors, domestic receipts in 1986 and the delegation of powers to lower levels. The increased by 6 percent over the previous year, which proportion of state revenues in national income was is by no means a low growth rate. To push forward 31.9 percent in 1979. In 1986 it dropped to 25 the reform and invigorate enterprises, especially percent. Furthermore, revenues of central financial large and medium-sized ones, the state raised the departments now make up only about 50 percent of depreciation rate for fixed assets of certain state state revenues, a proportion highly incompafible enterprises, reduced their regulatory tax, reduced with the tasks assumed by those departments. These taxes for a number qf trades and enterprises to allow changes have created problems in state finance and them to keep more profits at their own disposal and have adversely affected the balance of revenues and increased their subsidies. In addition, efforts were expenditures, especially in the central financial made to supplement and improve the wage and departments. Consequently, if we are to solve these price reforms carried out in 1985. Some of these financial problems, in addition to making efforts to measures were incorporated in the budget, and develop production, promote economic efficiency, many others were taken in the course of increase revenues and reduce expenditures, we implementing it. According to statistics, total should increase the proportion of state revenues in amount of reduced tax and increased subsidies in national income and the proportion of revenues of the execution of the budget exceeded 6 billion yuan. central financial departments in state revenues, in (2) The deficit in 1986 was also attributable to order to avoid excessive dispersion of funds. Also, increased expenditures in the implementation of the we must not overlook the problems in financial budget, expenditures that surpassed our financial work itself, such as the lax management of revenues capability for the year. The major overruns were as and expenditures in the past two years when the follows: Expenditures for capital construction financial situation had taken a turn for the better, exceeded the budgeted figure by 8.79 billion yuan, grave cases of tax evasion and losses from wasteful of which 7.7 billion went for projects financed by expenditures. We shall sum up our experience and localities out of their own reserve funds. Funds adopt effective measures to solve those problems. expended to tap the potential of existing enterprises, finance their technological transformation and subsidize the trial manufacture of new products II. The Draft State Budget for 1987 exceeded the budgeted amount by 6.38 billion yuan. Operating expenses for culture, education, science In 1987 we shall launch a nationwide campaign and public health services came to 2.3 billion yuan to increase production, practise economy, raise more than anticipated. Administrative expenses revenues and reduce expenditures. We shall also were 2.21 billion yuan more. intensify the economic reform and open our country wider to the outside world, further rationalize the (3) So far as the 1986 deficit is concerned, we relations between major economic sectors and strive had foreseen it in the first half of the year when we to ensure sustained development of the entire made an analytical forecast of revenues and economy. In view of these objectives and of our expenditures for the whole year, and we had present economic situation, the 1987 state budget adopted measures to increase income and reduce was drawn up according to the following basic outgoings. These measures did much to increase principles: 1) We must enhance economic efficiency revenues, control expenditures and reduce the by increasing production and pracfising economy deficit, but they were unable to eliminate it and open up new sources of income so as to ensure a completely. It seems to us now that the measures steady increase in state revenues. 2) We must firmly adopted at that time were not sufficiently effective reduce infiatcd expenditure wherever possible and and that some unnecessary expenditures were not allocate and use funds rationally, in accordance strictly curbed. This is an important lesson for us. with the principle of guaranteeing implementation (4) The finai]cial and economic problems of the reform and completion of key construction cannot be separated from each other. The deficit is projects, maintaining adequate reserves for essentially the financial manifestation of problems continued development and bringing about self- arising in the economy. For example, investment in sustained economic growth. 3) On the basis of fixed assets of state enterprises increased by 15.3 increased production and labour productivity, we percent in 1986, following a 41.8 percent rise in must continue to raise the living standards of urban

VI and rural residents. 4) We must perfect the budget will reduce their taxes so that they will retain more control system by strengthening and improving after-tax profits for their own use. Preferential macro-economic control and strive to keep the measures will be adopted in particular for textile deficit within the bounds set by the state budget. and other light industrial enterprises in the coastal The draft state budget for 1987 which I am areas to subsidize their technological transforma• submitting for examination and approval projects tion and their interest payments. With a view to total state revenues at 237.929 biUion yuan and total increasing the capacity for future agricultural expenditures at 245.946 billion yuan, for a deficit of development, we shall slightly increase aid to rural 8.017 billion yuan. production and other operating expenses for Of the total revenues envisaged in the 1987 agriculture. In addition, we shall take necessary state budget, domestic receipts will account for measures to improve the contract system for state 223.329 bilUon yuan and foreign loans for 14.6 purchase of farm and sideline products such as billion. The basic breakdown for domestic receipts grain, cotton and oil-yielding crops, and gradually is as follows. Tax receipts; 219.398 billion yuan; straighten out the price ratio between agricultural receipts from state treasury bonds: 6 billion yuan; products. The State Council has decided to reduce construction funds collected for key energy and the total quota of grain which the state purchases transport projects: 17.7 billion yuan; receipts from under contract and to raise the prices it pays, special items: 4.1 billion yuan; and income from whether fixed or negotiated, for certain grain, other sources: 12.103 billion yuan. Subsidies for cotton and oil-yielding crops. anticipated losses of enterprises are estimated at 35.972 billion yuan, which is a debit in the budget The two above-mentioned measures will and is already deducted from projected domestic require 11 billion yuan for tax reduction and receipts. increased subsidies. The breakdown of major items of expenditure (2) We shall readjust the pattern of investment for 1987 is as follows. Budgetary expenditures for and ensure the completion of key construction capital construction: 65.593 billion yuan; funds to projects. The state will allocate a total of 65,593 tap the potential of existing enterprises, finance million yuan for budgetary capital construction in their technological transformation and subsidize 1987, equalling the anticipated final amount for trial manufacture of new products: 10.788 billion 1986. Of this total, 36.5 billion yuan will be yuan; aid to rural production and other operating allocated in the form of state loans rather than of expenses for agriculture: 12.445 billion yuan; appropriations, and 14.6 billion yuan in the form of operating funds for culture, education, science and foreign loans. Moreover, in view of the country's public health: 38.778 billion yuan; expenditures for financial difficulties this year, it has been decided nafional defence: 20.376 billion yuan; administra• that 7 billion yuan of the allocation in the form of tive expenses: 15.608 billion yuan; expenditures for state loans will be raised by the People's Bank amordzation of state treasury bonds: 2.32 billion through loans and the issuing of bonds. Investment yuan; expenditures for servicing foreign loans: 5.9 in capital construction arranged with local reserve billion yuan; and expenditures for subsidies to funds this year will be reduced to 5.843 billion yuan, compensate for price rises: 33.723 billion yuan. In 50 percent less than the estimated final figure for addition, allocations for the general reserve fund last year. total 3 billion yuan, of which half is at the disposal (3) We shall rationally allocate funds for the of the central authorities and half is available to development of intellectual resources and ensure local authorities. indispensable expenditures for culture, education, science and public health. In the Sixth Five-Year When we drafted the state budget for 1987, we Plan period, operating expenses for culture, deemed it imperative to handle correctly the education, science and public health increased at an contradiction between demand and supply of funds, average annual growth rate of 15.2 percent, and last so as to ensure the availabihty of indispensable sums year they grew by an additional 20 percent. Both for our construction projects and the economic figures exceeded the rates of increase for state reform anti to minimize the deficit. To this end, the revenues and expenditures in the corresponding State Council has drawn up a number of policy period. With the steady increase in funds, culture, measures concerning state revenues and expendit• education, science and public health have expanded ures, and these are listed in the state budget. Chief fairly rapidly. Since the state is faced with financial among these are the following. difficulties this year, it will be impossible to increase (1) We shall promote the reform, invigorate operating expenses for culture, education, science enterprises and strengthen reserves for sustained and public health by wide margins, as we have done agricultural development. To further invigorate in the past few years. Budgeted operating expenses large and medium-sized enterprises and textiles and in these areas in 1987 will be 38.778 billion yuan, an other light industries, the state will continue to raise increase of 2 percent, of which 21.858 billion, yuan the depreciation rates for fixed assets for some state- will be allocated for education, an increase of 2.3 owned enterprises and will cut their regulatory tax percent. this year. As for enterprises in electric power, (4) We shall cut back expenditures and eliminate forestry, textiles and other light industries, the state those that are non-essential. The State Council has

VII decided to reduce all budgetary expenditures by 10 The present draft lists a deficit of 8 billion percent on the basis of the estimated figures of last yuan, which of course is a temporary phenomenon. year. Excepted from this rule will be appropriations Many things demand our immediate attention. We for the following: subsidies for price rises, support need adequate state allocafions to further for the disabled and families of deceased servicemen invigorate large and medium-sized enterprises, to and others, social relief, and service of the principal increase the capacity of agriculture for sustained and interest of domestic and foreign debt, together growth, to speed up the construction of key projects with other necessary appropriations for special in the energy and transport industries and to purposes. increase investment in the development of (5) We shall introduce new taxes and properly intellectual resources, all of which have a vital readjust some tax rates to increase revenues. We plan bearing on the economy, the modernization drive to levy taxes on the use of arable land for non- and the people's standard of living. At the same agricultural purposes, beginning from this year. time, we also need state expenditures to ensure the Half of these taxes will be retained by localities to set continual rise of that standard. We have cut back as up a special fund for agricultural development, much as possible expenditures on certain projects which is to be used for land reclamation, soil that should not have been undertaken at this time preparation and improvement of existing cultivated and on others that can wait. In the past there have land; the other half will be turned over to the state. been times when a small deficit was listed in the state At the same time, to control the scale of investment budget of a certain year because of economic in fixed assets, we shall put two other measures into readjustment or for other reasons. Providing for a effect. One is that, we shall change the uniform rate small budget deficit this year will help to ease the of taxes levied on construction projects financed by contradictions in economic development and to units themselves to differential tax rates. The other avoid losses that would result from sudden is that from this year on, the collection of funds for retrenchment and large-scale readjustment. construction of key energy and transport projects will be extended to collective enterprises in urban and rural areas. Hi. Vigorously Carry out the (6) We shall increase foreign loans. According Campaign to increase Production, to the state budget for 1987, foreign loans will come to 14.6 billion yuan. Of this amount, 3.2 bilHon Practise Economy, Raise Revenues yuan is earmarked for foreign equipment needed by and Reduce Expenditures and the second-stage project of the Baoshan Iron and Ensure tlie Successful Fulfilment Steel Complex in Shanghai and 11.4 billion is to be used for other projects under the Seventh Five-Year of the Tasks $et in the 1987 State Plan. There will be a marked increase in foreign Budget loans in 1987. This is mainly because the key projects (in such areas as coal, electricity, port To ensure the successful fulfilment of the tasks construction, iron and steel, petrochemicals and set in the 1987 state budget and put the economy on nonferrous metals) included in the Seventh Five- a path of steady development, we must conduct in Year Plan either have already been launched olr are breadth and depth the campaign to increase scheduled to be started this year. Most of the foreign production, practise economy, raise revenues and equipment required for these projects will arrive reduce expenditures. To this end we must do the within a short time, thus causing a rise in payments following: to be made with foreign loans. This is a new (1) We must bear in mind that the key to success situation this year. Contracting a foreign loan we in this campaign lies in raising our level of should borrow only a prudent amount of foreign understanding and unifying our thinking on the funds, taking into full consideration our capacity to subject. repay them; we should use foreign funds only for the (2) To make the campaign a success, we must development of production, and pay attention to concentrate on crucial points, set clear objectives and the economic results; and in disposing of the work out practical measures. additional income gained through the use of such (3) We must integrate the campaign with the funds, we should first deduct the amount needed to deepening of the reform, so as to improve economic pay the interest and repay the principal and then performance, which will become the test of the allocate the remainder to other uses. So long as we reform. adhere to these j^rinciples we shall not run any risks, (4) We must strengthen financial supervision, even if we borrow a little more foreign funds within enforce rigorous financial discipline and check all a certain period of time. unhealthy tendencies. •

VIII It also sets requirements for the Shenyang, and Hangzhou. In investments from unofficial public areas, natural lighting and Hangzhou youth apartments ac• organizations and individuals; the ventilation. The rural housing count for 20 percent of the total latter's role will be increasingly should pay attention to safety and housing construction areas built important under China's present hygiene and meet the people's with local government investment. situation. needs for living and production. Now more and more old people have appeared in China. With On the other hand, the young couple leaving home, they (c) Better Quality government also controls what the will form their own aged families, For a long period of time the highest standards will be. Now so the government should also urban housing shortage will be a nuclear families are becoming very provide them suitable housing. serious problem in China. In order popular in China. According to to avoid rebuilding, we are going the first.national urban housing to pay more attention to investigation, in 1985 the average improving the quality of the new household has 3.78 persons. In (b) Financial IVIeasures homes we build. 2000 it is estimated that the Direct government investments average household will have 3.5 promote the housing construction Now China's housing quality is persons. In the rural areas, in 1985 and play an important role in rather poor with old fashioned the average household had 4.42 improving housing conditions for design, inflexible construction, persons, in 2000 the average the urban population. In Zhejiang irrational room arrangement and household is expected to have 4.2 Province, for instance, 1 to 2.5 simple equipment. In order to persons. So while China's popu• percent of the provincial financial encourage architects to design lation is increasing, the number of budget is used for housing projects. more suitable and beautiful households is increasing even But the government also tnobilizes housing, the government has more rapidly. But our land, funds, society as a whole to finance decided to give prizes to the and building materials are limited. housing projects. The proportion excellent design projects. From If the housing areas are too large of business investment in urban 1983 to 1985, five urban housing for every household, it will hinder housing construction is already areas won the engineering silver our ability to realize the housing very large but it should be medals; in 1986 six urban housing project's aim. Thus the govern• increased. The state will adopt still areas won the excellent design ment stipulates that the housing more measures to encourage medals and seven housing projects areas should be within 55 square enterprises to build their own won the design medals. Several metres for every small and housing projects and to improve hundred urban housing projects medium-sized apartment. The housing conditions for their staff have been built in China. In 1987, rural housing should be rational and workers. Tianjin, Jinan and Wuxi cities will and compactly laid out and the provide three of the latest models housing areas should be strictly Every year the Chinese People's of housing projects. Shanghai also controlled. Construction Bank provides loans held a contest on space-saving to housing development com• ways to decorate the room, and panies for commodity housing the Shanghai television station 4. Establish "youth apart• construction. Now the Industrial introduced residents' views on ments" and Commercial Bank is making improving interior decoration. loans available for deposits on These activities have brought Youth apartment buildings are new homes and giving financial notable result. especially for young people. aid to individual families for According to China's population buying or building homes. When Now most of the existing houses information, by the end of the an individual's deposit accounts have to be used until the year 2000. 1980s and in the early 1990s more for 30 percent of the price of the Some worn-down urban areas than 16 million young couples will house, the Industrial and Com• have to be revamped. Emphasis come of marriageable age. Of mercial Bank will grant a loan. In will be placed on improving the them, 2 million couples are in the countryside, the Agricultural infrastructure, upgrading the urban areas. With the improve• Bank of China and credit co• environment and housing equip• ment of the living standards, operatives also grant farmers ment. In recent years, Tianjin has young couples hope to live apart loans for building individual rebuilt all the old houses. The from their parents and to establish houses. Qingnianhu worn-down areas in their own nuclear families. In Beijing and the old land No. 303 in order to meet their needs, a As government's investments Shanghai have also been rebuilt, number of youth apartment have played an important role in which have provided good buildings have been built in some improving housing conditions for examples for worn-down urban cities, including Beijing, Shanghai, the urban people, so have the housing rebuilding. •

APRIL 27. 1987 19 •i ARTICLES

FACTS AND FIGURES Foreign Investment Up in 14 Coastal Cities

ast year saw an increase in signed 235 productive project expanding their investment in arid L direct foreign investment in contracts with foreign businesses: co-operation with China. the 14 open coastal cities (Dalian, up from 51 percent in 1985 to 65 In Tianjin most foreign-funded Qinhuangdao, Tianjin, Yantai, percent of the total. Their value in enterprises have done well and Qingdao, Lianyungang, Nantong, the total went up from 19.4 balanced their foreign exchange Shanghai, Ningbo, Wenzhou, percent to 21.7 percent. books. The Tianjin Otis Co. Ltd., Fuzhou, Guangzhou, Zhanjiang The number of export-oriented the biggest Sino-US joint venture and Beihai), and an improvement in the city, has been able even to in efficiency in foreign-funded project contracts Shanghai signed with foreign businesses last year produce a surplus of foreign businesses already in operation in exchange in the first two years of these cities. accounted for 60 percent of the total, an increase of 20 percent co-operation. Its earnings in 1. Rapid increase in foreign over 1985. The city also improved foreign exchange has exceeded the investment. The proportion of the composition of foreign total investment made by the US contracts for joint ventures in the investment. While restricting fore• side and its products are up to Otis total number of newly signed ign investment in non-productive standards. Compared with the investment contracts increased. projects such as hotels, restaurants period before it was operated Last year, these coastal cities and office buildings (a drop of 65 jointly, the venture's 1986 income attracted USS354 milHon in percent), the city increased the went up 127 percent and the taxes foreign investment, an increase of proportion of industrial projects and profits it handed over to the 21 percent over 1985. They also to 15 percent from 5 percent in state were up by 120 percent. signed 359 contracts (worth 1985. The number of export- All but 0.01 percent of the US$868 million) with foreign oriented and technology-intensive products for export turned out by businesses. Of these, 215 are for projects also went up. the Huachang Co. Ltd. in Yantai, joint ventures (US$333 million), a joint venture with Hong Kong 143 for co-operative enterprises In 1986 the city of Yantai signed (one of the six joint ventures which (US$535 million) and one for a 15 joint venture and co-operative have already gone into operation wholly foreign-owned enterprise management contracts with fore• in the city), are now up to the (US$650,000). The proportion of ign businesses, 14 of which are quality standards, compared with contracts for joint ventures rose export-oriented projects with 6 67 percent at the beginning period from 34.2 percent in 1985 to 38.4 being granted new preferential of co-operation. This venture percent while the proportion of treatment. employing 110 people turned out contracts for co-operative busi• in the seven months after it went nesses dropped. 4. Foreign-funded enterprises into operation 91,800 dozen sports already in operation have perfor• caps and earned US$624,000 in 2. Direct investment from West med well. In the three years from foreign exchange from export, European and North American 1984 to 1986 these coastal cities that is. an average of US$5,672 per countries increased. The propor• signed 1,540 joint venture and co• person. tion of agreed investment from operative contracts, and 820 of But there are some problems in these countries went up from 26 them (53.2 percent) have gone into attracting direct foreign invest• percent of the total in 1985 to 42.5 operation. In Guangzhou, 70 ment. The environment for percent last year, while that from percent of the 378 foreign-invested foreign investment and produc• other Asian countries and regions enterprises, which have already tion should be further improved dropped from 73 percent to 55 started paying taxes, earned a and legislation should be strength• percent. The proportion *of total of 110 million yuan profit. ened in the interests of foreign investment from Hong Kong and These businesses include the investors. Actual investment by Macao decreased from 60 percent China (Guangzhou) Hotel, Guan- foreign businesses is progressing to 45 percent and that from Japan, gmei Food Co. Ltd., Xindongfang slowly in some joint ventures and from 10 percent to 4 percent. Kitchen Equipment Engineering co-operative enterprises which 3. The number of productive, Co. Ltd. and the Tele-Art have gone into operation. Some technology-intensive and export- (Guangzhou) Electronics Co. Ltd. foreign-funded enterprises are oriented enterprises increased and The improvement in these busi• short of capital and the actual the composition of investment nesses' efficiency has strengthened investment from foreign investors improved. Last year the 14 cities overseas investors' confidence in is less than that was negotiated.B

20 BEIJING REVIEW, NO. 17 Insurance Gains Ground Under Reforms

China's insurance industry has made much headway since domestic insurance services were restored in 1979. it is becoming an important compensation system for enterprises and people who suffer natural disasters or accidents, whereas before there were only state subsidies. Overseas insurance services have also advanced rapidly over the last few years.

by Our Correspondent Li Rongxia

ingkou County in Liaoning Beijing joined the family insurance In the last few years, the YProvince was hit by a flood in plan. By now the figure is development of the national July 1986. Xue Zhanhua, a farmer 327,000, averaging one in every economy and the improvement in turned grocer who took up his eight. the people's living standards has household specialization shortly Zhao Hongzhang, who lives in provided a huge market for the before the flood, lost 37,000 yuan 4 Taotiao Lane, says, "My insurance industry. Taking out worth of property. This could income has increased in the last property and life insurance is have meant bankruptcy for him. few years, and I have bought a becoming important. Farmers, But he received compensation for colour television, a refrigerator who first got prosperous and his losses from the insurance and a washing machine. For peace became specialized households, company. of mind I took out property urban enterprises which are On May 21, 1985, the Nanjing insurance." His wife adds, "Now responsible for their own profits No.3 Pharmaceutical Factory we don't worry about them. If they and losses and enterprises involv• caught fire and lost 600,000 yuan go up in flames or are stolen we ing foreign investment, they have worth of property. The factory, will be compensated." all sought to insure their whose claim was paid by the insurance company, bought new equipment and raw materials and quickly restored production. Meanwhile it updated its produc• tion facilities and improved the quality of its products. Insurance in 1985 Cases like these are not unusual in countries with a developed insurance industry. In China the House and contents situation is different. Since insurance 45 million families domestic insurance was suspended Life insurance 10 million people, or 1 percent of the nation's in the 1960s, many young people total population had never heard of it. Now Enterprise insurance 330.000 enterprises (for 700 billion yuan increasingly the insurance indus• worth of property) or 70 percent of try is being integrated into the the staleowned ones countr's economy and the people's Accident and casualty 3.5 million vehicles or two thirds lives. of the nadon's total Income from insurance 9.5 billion yuan, averaging a 50 services percent increase a year Rapid Development Compensation paid 3.7 billion yuan Profit and taxes handed Five years ago only one out of over to the state L88 billion yuan the 2.64 million households in

APRIL 27. 1987 21 •1 ARTICLES

increasing econofiic risk. socialist country like China which has a population of I million the Since the domestic insurance is large but poor, if losses from insurance company has only one services were restored in 1979, the accidents are not compensated for office. People's Insurance Company of by established insurance funds but China has established 2.400 by the state, its revenue and Overseas Business branches employing 53,000 people expenditure will be unbalanced. and providing 160 kinds of This is harmful to the socialist The People's Insurance Com• services. planned economy." The insurance pany of China offers expanding The insurance company com• industry has remedied this. overseas services, whose income pensates losses suffered in acci• In the last few years the practice has increased at an average annual dents and at the same time reduces by which enterprises "ate from the rate of 10 percent in the five years the burden on the state financial same big pot" of the state has been from 1981 to 1985. The company departments and civil administr• changed. Now enterprises are has also established insurance ation departments. At the same economic entities responsible for business relations with 1,000 time it accummulates funds for the themselves and can no longer go to companies from more than 100 construction of the country, the state for compensation of places abroad. Last year the benefiting the state, enterprises losses incurred in natural disasters company offered to insure satellite and the people. and accidents. Obviously they launching and nuclear power stations. It also provides 80 kinds In 1986, the insurance industry must take out insurance. of insurance to foreign trade and developed at record speed and its According to Cheng Wanzhu, Sino-foreign economic and tech• income reached 3 billion yuan. Yet vice-president of the People's nical projects. Basically, it now it is still in its early stages. In the Insurance Company of China, offers all the insurance services world as a whole there are 12,000 "Running the insurance industry available on the world insurance insurance companies, with an in our socialist country is not done market. annual income of USS500 billion for profit but simply to have a and accounting for 5 percent of reasonable compensation system To guarantee the profit of the GNP in many countries; in to guarantee production and foreign investors and reduce their China it makes up only 0.4 management of enterprises, to risks in China, the company percent. So China still has great stabilize the people's life and as a provides insurance for foreign potential in this field. means of raising funds for the businesses' political risks and the construction of our country." profits they remit back home. The It is taking some time for people company plans to establish a to learn the value of insurance. In branch in Western Europe to offer New Necessities April last year the ground floor of insurance for investment in China. the Swan Hotel in Harbin caught The branch will register in the host China is frequently subject to fire, sustaining 250,000 yuan country and will abide by its laws. natural disasters. Since liberation worth of losses. The insurance In its dealings with foreign in 1949, 3 million houses have company had offered the hotel businesses, the company has been destroyed, another 5 million insurance a number of times but improved its settlement of claim damaged and tens of millions of was refused. After the incident the services and won itself a good people suffered every year as a hotel's leader applied for reputation. In 1985 the company result of natural disasters. Victims insurance. paid out HK$250,000 for losses have lived on state subsidies and caused by an accident during the loans. But since insurance started There is 'a need to publicize construction of the Jinqiao Hotel up the situation has changed. insurance services more widely. in Xiamen involving Hong Kong In the summer of 1985 , State Councillor investment, and thereby guaran• northeast China was hit by and president of the People's Bank teed the smooth progress of the exceptionally serious floods and of China, has said that to develop project. typhoons and about I million the insurance industry it is In the same year the company houses were destroyed. The local necessary to make it known and also paid out US$4 million for a insurance offices ended up paying emphasize its roles as a guarantor Short-360 plane which was out 200 million yuan, thus helping of the stable production of enter• seriously damaged when it landed local enterprises restore their prises. She hopes all enterprises badly at Enshi Airport in Hubei production and local people to will take out insurance. Province. Through its services the rebuild their houses. That burden At present, China has only one company has helped strengthen did not fall solely on the state. state-owned insurance company the co-operation between China It is impossible for the state to and in fact its expansion is still and other countries and increased cover all such losses. As one lagging behind demand. In the confidence of foreign investors economist pointed out, "In a Beijing's Chaoyang district which in China. •

BEIJING REVIEW. NO. 17 DOCUMENTS

Deng Xiaoping on Democratic Centralism

Following are excerpts from Deng Xiaoping's speech delivered at the Enlarged Working Conference of the CPC Central Committee on February 6, 1962 when Deng was General Secretary of the Secretariat of the CPC Central Committee. The speech deals mainly with Party building, and this part on democratic centralism was translated from the text as it appeared in "Hongqi" (Red Flag), issue No. 4, February 1987. Headings are ours.

omrade Mao Zedong spoke of higher level would be divorced fully: How well have we broached C democratic centralism from a from the lower level. Fur• the five unifications — in under• highly principled plane, saying it is thermore, such a situation would standing, policy, planning, com• a question concerning whether we prevail even on the same level in mand and action — on the basis of want socialism or capitalism, which a handful of people or one concentrating correct opinions? proletarian dictatorship or bour• person would become divorced Were things more centralized geois dictatorship. from the majority of the people during the revolutionary war and those few people or one period, in the first few years after person would act arbitrarily. victory, or in the last few years? It No Democracy, At present. inner-Party life is should be pointed out that they No Centralism seriously defective. Of course, have appeared to be far more there are many reasons for this. centralized in the last few years, Over the last few years targets but when judged by the five It is true that without democ• have been set too high due to over- unifications, the situation was not racy there would be no centralism. eagerness, fuelling the growth of as good as in the past! That is to But this centralism must be based both decentralism and command- say, decentralism has developed. on democracy before it can be ism, thus greatly weakening our fully and correctly accomplished. Party's democratic centralism. Commandism. which often Without proletarian democracy Superficially, we seem to be more coexists with decentralism. has and proletarian centralism, there centralized in many areas; but in developed too. Inner-Party demo• would be no socialism and reality, decentralism is rather cracy has thus been weaken• capitalism would make a serious. Again, many things, when ed. Without democracy there can comeback. As far as the method of looked at superficially, appear to be no centralism, hence no unity in leadership is concerned, only be more democratic than before; understanding and action. We when "from the masses" (this biit in reality the practice of emphasize strengthening central• means taking scattered and commandism and arbitrary ac• ism and unity, and opposing unsystematic ideas from the tions by the few or a single person decentralism, therefore we should masses— Tr.) is observed will "to is very serious. It was proposed at further uphold the principle of the masses" (which means bring• the conference that we should democratic centralism. Emphasiz• ing concentrated and systematic strengthen democratic centralism, ing centralism, and unity should ideas back to the masses — Tr.) be develop democracy, strengthen not be mistaken for abandoning possible. Without centralism centralism and unity, and oppose democracy, which is part of which is based on democracy, we decentralism. That is very nece• democratic centralism. To streng• can neither take the ideas "from ssary and timely. then centralism and unity and to the masses," nor bring them back oppose decentralism, it is all the "to the masses." If we failed to In the last few years decentral• more necessary to uphold democ• practise democratic centralism, we ism in our work has been a rather racy. With democracy (which is would be divorced from the people serious problem. Comrades, you one aspect of democratic central• and from Party members, also the may ponder this question care• ism), centralism has a solid base

APRIL 27. 1987 23 DOCUMENTS

and there can be real centralism Our country needs to create the their dissenting views. The Party's and unity. situation too. However, if such a constitution stipulates that before In the future, when drawing up situation does not exist within our any decisions are taken on an plans we should make them Party, creating the situation issue, all Party members can air conform with actual conditions, within our country will be their opinions about the issue at and leave some leeway. In the impossible. Our Party must create the Party's conferences or in the future, the tasks we set should not a lively political situation, there Party's journals. There are only be too heavy or too rigid. During must be full democracy within our two prohibitions: First, Party discussions, comrades worried Party. members are not allowed not to that the tasks set by the central Our Party is unified, united and act upon the Party's decisions. authorities would be too heavy. has combat effectiveness. Without They can voice their opinions if Here I promise that the Central democracy, there would be no they differ from the Party's Committee will do its best to centralism and unity; without decisions and can ask for revision ensure that the tasks it set will not centralism and unity, our Party and modification if they find any be too heavy or rigid. The would not have combat effective• incorrect point in the Party's shortcomings of the Central ness. Our Party should maintain decisions. But the Party's consti• Committee in the last few years centralism and unity forever. Only tution stipulates that Party have found concentrated ex• thus could it have real combat members must abide by the pression in the excessively high effectiveness. However, only on Party's decisions, though they targets set. If the targets are the basis of democracy and of have the right to reserve dissenting worked out according to actual giving full play to democracy will opinions while implementing the conditions and with some leeway, it be possible for us to build up a Party's decisions. If they refuse to there should be no target set too Party which is united and disci• act upon the Party's decisions, high and too rigidly. In the future plined and has combat effective• they violate the Party's discipline. when we are planning our work, ness. Second, Party members are not we should, on the one hand, have a allowed to engage in factional Of course, we have made some unified plan; on the other hand, in activities. (Mao Zedong: They are mistakes in this regard in the last the unified plan, we should allow not allowed to engage in few years. Now we reaffirm that the lower levels to arrange their clandestine factional activities. we will correct our mistakes work according to their own But are people allowed to dissent whenever they occur and restore conditions, so that they can suit openly?) They are allowed to do so and carry forward our good their actions to local needs and as stipulated in the Party's traditions which we~ neglected display their own initiative. constitution. Before a decision is before. These traditions are not made, everybody can voice his strange to us. During discussions, opinions openly. But after a In the future when we formulate many comrades cherished the decision is taken, he or she must our specific policies and solve memory of our past inner-Party firmly implement it. In the process problems, and when we emphasize life. This shows you all remember of implementation, they still can centralism and unity, we should these tradifions. Then let us make express their opinions. But apply the method Comrade Mao an effort to restore them. theoretical and academic pro• Zedong advocated, "from the blems are quite another thing. masses, to the masses." Through They can be discussed freely at any investigation and study, we time. In recent years there have concentrate the masses' opinions, Relations Between the been many cases of violation of the formulate practical policies and Party and Its Members principle of inner-Party democ• plans and bring them back to the racy and they should be corrected. masses for implementation and In the future, we will restore and test them in practice. This method carry forward our Party's fine Comrade Mao Zedong has said applies to the solution of concrete traditions. We will also establish a and Comrade has problems too. correct reladonship between the reiterated the "three no's:" no In short, within our Party and Party and its members in grabbing by the pigtails (small our state, we should, as Comrade accordance with such traditions errors — Tr.), no sticking labels on Mao Zedong advocated, create a and the Party's constitution. All them and no beating them with political situation in which there Party members have the right to clubs. Some comrades still wonder are both centralism and democ• voice, in light of the Party's whether this will change in the racy, both discipline and freedom, organizational principles and future. Their worry, a reflection of both unity of will and personal within the Party, their criticisms what has happened in recent years, ease of mind and liveliness. Such a and opinions about the Party, its is understandable. Understand• situation should be created first work, its problems and its leaders. able as it is, their worry is ill- and foremost within our Party. Also, they have the right to reserve founded, however. They should

24 BEIJING REVIEW, NO. 17 have faith in our Party's Zedong and Liu SKaoqi and for and at the same time listen to traditions. Of course, it is all right many years by the Party Central others' criticism, then he has the that some comrades want to wait Committee. During discussions at initiative and everybody has ease and see. Even though we have said this conference, many comrades of mind. In so doing, they can that it is permissible to reserve said that in the past they could enhance their prestige rather than differing opinions, some comrades express their opinions freely and tarnish it. still write anonymous letters. found it easy to have heart-to- . Party leaders at all levels Writing anonymous letters only heart talks among themselves. (including all the members of the displays "partial bravery." We Then let's restore the old Party committee) should be have recently received some traditions. We must draw the subject to supervision. The anonymous letters, offering very attention of our Party's leading supervision should come from good suggestions. Why do the comrades at the various levels to several directions: from above and writers want to be unidentified? this problem. Leading comrades below, from the masses and from Since you are Communists, why of our Party, "squad leaders" and the Party group they belong to. I don't you voice your opinions "deputy squad leaders" in parti• have a suggestion for your openly and solemnly and become cular, should submit to and unite consideration. I think the most "completely brave," instead of with the majority and respect the important supervision for the "partially brave?" We should take minority. Comrade Mao Zedong leaders should come from the the lead. Only when we take the has referred to this many times in Party committee or the secretariat lead can we turn this trend around, the past and reiterated it at this or the standing committee they restore and carry forward our conference. Leaders will find belong to because this is a small Party's fine traditions. If we still things easy only when they get the collective. If our leading comrades have fear and dare not speak our consent of the majority. They are organized into Party groups mind, our Party's old traditions must not regard what they say as with their cooks and orderlies, will not come back. In particular, final. The minority should be held there can hardly be any supervi• our "squad leaders" and "deputy in respect as their opinions are not sion. Of course, everybody has to squad leaders" should take the necessarily wrong. Even if their take part in the inner-Party life of lead in restoring our Party's old opinions are wrong, they do not his Party branch, as stipulated in traditions. These old traditions exist in isolation. Only by the Party's constitution. I wonder have been advocated by the respecting their opinions can we whether it is acceptable to get our Central Committee and Comrade place ourselves in a better position leaders to take a major part of Mao Zedong. Our Party has to correct or help them correct inner-Party life in the Party always had its rules, only to be their mistakes. committees, secretariat or stand• damaged in recent years. Our Furthermore, leaders should be ing committees, rather than in the Party's old traditions should and broad-minded, tolerant and acce• Party groups. In the Party can be rapidly restored and ssible to dissenting opinions. They committees, time should be made malpractice should and can be should treat others as equals and .available for heart-to-heart talks promptly corrected. Of course, it be more modest and prudent than and a good atmosphere should be has to be made clear that to realize others. created for conducting criticism this, democracy must be given full What should our Party's and self-criticism. When comrades play in the Party. leading comrades, the important of equal status or comrades ones in particular, build their working together have heart-to- prestige upon? They should build heart talks, supervision might be their prestige on the correctness of better exercised. (Liu Shaoqi: I'd their thinking, work and words, like to suggest Party committees at Unite the Majority and on their democratic style of work, various levels hold an inner-Party Respect the Minority and on a workstyle of criticism life meeting once a month to and self-criticism. It is impossible conduct criticism and self- The attitude of our Party's for leaders to be 100 percent criticism.) Not necessarily once a leading comrades is very import• correct in everything and to make month. It is all right to have such a ant to restoring and carrying no mistakes at all. The point here meeting once every three months. forward our Party's old traditions is whether leaders have the (Liu Shaoqi: It would be good to to the letter. They should be good courage to criticize themselves have such a meeting four times a at listening to dissenting and when they have made mistakes, be year. Is this suggestion feasible different opinions. They should open to others' criticism and that every Party committee, be it a listen to honest words by honest accept and act upon others' provincial Party committee, pre- people. This is also one of our correct criticism. Once someone fectural Party committee or a traditions. This has always been makes mistakes, he should speak county Party committee, hold a advocated by Comrades Mao about them without reservation meeting once a quarter for

APRIL 27. 1987 25 •i DOCUMENTS criticism and self-criticism and for complain of hardship. Since a is of a routine nature and the other inner-Party life?) (Mao Zedong: to "squad leader" has much to do, no of great consequence: matter of review work, sum up experiences one should expect him to get policy and of prime importance. and exchange opinions.) To everything properly handled. So in How day-to-day problems are conduct heart-to-heart talks and some cases, it seems necessary to handled should be OKed by the mutual criticism and to voice forgive. As far as the "squad persons in charge. It won't do opinions. We should pay attention leader" himself is concerned, if he without the approval of the first to the problem of mutual knows it is not easy to be a "squad secretary of the Party committee. supervision within the Party leader," he should learn "how to However, if every matter, big or committee. It is impossible to see play the piano," as Comrade Mao small, has to be discussed by the the superiors or the subordinates Zedong suggested at the Second Party committee or the secretariat, every day, whereas leading Plenary Session of the Seventh the meetings would be endless. members of the same rank are Party Central Committee. It is not Things must be placed directly most familiar with each other. easy to learn "to play the piano." I under the first secretary, or the This is very important for people am afraid we have to learn this all second secretary or other secre• of the same rank to hold our lives. We'd best say we have to taries in charge. Approval should discussion of problems, reach learn every day but not that we be given where it should. consensus and make decisions. have mastered the skill. (Mao However, matters of great conse• Zedong: Even though one might quence should be, in light of their master it one might forget again importance, submitted either to some day) Yes, we do not know the Party committee, or the Party Collective Leadership Witli what to do when we meet with new standing committee or the secre• Shared Responsibility things, new problems, new tariat, for discussion before a persons and when we come to a consensus is reached and a In the internal life of the Party new place. It is really not easy. We common decision is made. (Mao committee, attention should be have to learn how "to play the Zedong: If no consensus is paid to collective leadership with piano" and how to direct an reached, the minority should shared responsibility. Here the orchestra. It is not good if the submit to the majority.) role of "squad leader" is very "squad leader " does not have the In short, democratic centralism important. The Central Commit• courage to hold himself respo• constitutes the fundamental sys• tee and Comrade Mao Zedong nsible. Equally, it is not good if the tem of our Party and country. It is stressed the importance of es• "squad leader" does not take it also one of our traditional tablishing a core for our Party. upon himself to deal with things. If systems. It is very important to Later, as the core was, on the you are not responsible, whom do uphold and improve this system as whole, set up. the stress was laid you shift the responsibility on to? it concerns the fate of our Party on how to be a good "squad Here, the problems can roughly and country. Any violation of this leader." This means that a core be divided into two categories: one system must be dealt with. • has to be erected. Without such a core, a lax and disorganized state would result, the Party committee could hardly do its work well. At this conference, the "squad Beijing Review Suiisciid^e 97 am. leader" has been put on the spot. Please enter my subscription to Beijing Subscription Rates This does not mean we do not Review for year(s). 1 year 2 years 3 years attach importance to the role of I enclose in payment thereof. Countiy "squad leader," on the contrary, it Name USA (US$) 22 37 52 means the leader must be a good England (£) 12 22 30 Rest of Europe (USS| 16 27 37 "squad leader." Where there are Job title no qualified "squad leaders," Austraira |A5) 22 37 52 Address efforts must be made to train some New Zealand (NZ$1 30 52 72 or have the superior members Canada |C$| 21 36 50 appoint some good "squad Switieriand |SF| 45 77 108 leaders" to whom everybody should lend a hand. Being a W- Germanv (DM) 50 90 125 "squad leader" is no easy job, Counlfv Austria (Sch) 330 560 780 involving many problematic tasks. lialy (Lrre) 29,000 49,000 68,000

Don't assume that being a "squad Please mail this form, together with your payment, to your local dealer or either of the following leader" is a comfort. As far as I addresses: • Cfiina Iniemaiional Bcok Trading Corporalion fCuoji Shudian) PO Box 399. Beijiig, China, • Managemeni know, many "squad leaders" Depariment, Beijing Review, 24 Baiwanzhuang Road. Beijing, China. Readefs in China may subscribe lo Beijing Review ai local postal offices

26 BEIJING REVIEW. NO. 17 international winter resort, in• Western Han (206 BC-24) and Sanya: Tourist Spot cluding a swimming pool, a horse• Eastern Han (25-220), Wei and Jin On Hainan Island race course, and a golf course since (220-420), Tang and Song (618- its air and water temp^eratures are 1279). • above 20°C even in the coldest he city of Sanya, on the south January. Tcoast of Hainan Island, has The construction area the city Shooting Range been described by foreign experts has already given over to tourism as "exceptionally rich in natural has reached 150,000 square Opened in Beijing resources, not Hawaii but just as metres. The Cuiyuan Hotel has good." During the Seventh Five- started business and the Xinya Year Plan period (1986-90), it will Hotel, jointly built by a Singapore hina's first shooting range — be built into an international business and the local govern• C the North China Shooting Range — has opened to foreign holiday centre where tourists can ment, will soon be open. tourists. avoid.the winter cold. Sanya received more than Yalongwan, in the east of the 200,000 travellers last year, 2.5 The range provides about 20 kinds of weapons (including city, will be made into an times more than in 1985. • pistols, rifles, sub-machine guns, and light, heavy and wide-cahbre machine guns for marksmen from Hong Kong, Macao and abroad. The North China Shooting Range is located to the northwest of Beijing proper, a dozen kilometres from the Ming Tombs and the Great Wall. It contains over 30 shooting platforms and a foreign guest club-house, a changing room, a film and video room and a coffee bar. The shooting range also provides cable television and automatic scoring facilities. There are manikins, moving targets, steel plates and simulated defensive shooting. Foreign guests are welcome to use one or more light weapons and hundreds of cartridges for only two or threehundred US dollars.

News in Brief

Luoyang is famous as "the • Shandong's Changdao Tomb Museum ancient capital of nine dynasties." County has 32 beautiful islands on Opens to the Public There is a Chinese saying: "Happy Bohai Strait. It received 350,000 to be born in Su-Hang (Suzhou tourists last year. and Hangzhou) and buried in Bei Changdao has to offer a hina's first ancient tomb Mang (northern Mangshan)." Banyuewan Park, a bird hall and a Cmuseum in Luoyang was Mangshan, to the north of history museum. In this museum, completed at the end of March Luoyang city, is far above sea level the process of change in Chinese and is opening to the public this and is so dry that remains do not history and culture from ancient month. On display are the coffin decay. times to the Ming Dynasty (1368- chambers of the imperial and Situated in the northern out• 1644) are traced. In addition to the noble dead dating from the skirts of Luoyang city, the new attractive scenery of the island, Western Han Dynasty (206 BC- museum occupies 3 hectares of travellers can also find colourful 24) to the Song Dynasty (960- land. There are four burial halls round sea-washed pebbles and 1279). below ground including the over 200 species of birds.

APRIL 27, 1987 27 mk FROM THE CHINESE PRESS

instance, peddlers from Zhejiang Province hang up clothes on lines, Sunshine City Takes a New Look Uygurs roam the streets selling dried fruit and skewers of roast mutton, butter and lambskins. mutton, and aromas from restau• "RENMIN RIBAO" The polo (wool fabric used to rants run by people from Sichuan, Hunan and Gansu drift over the (People's Daily, Overseas Edition) make traditional Tibetan costume) market near the Zuglak- streets. One Tibetan said. "We hasa, long known as a city of ang (Jokhan) Monastery offers an had money but Lhasa lacked Lsunshine, offers many attrac• eye-catching array of handicrafts things in the past. Now conditions tions. According to estimates, and special goods for minority have changed. We can have many Lhasa now hosts as many as ethnic people. In addition, several different and delicious meals and 40,000 to 50,000 tourists each day, thousand small retailers from need not go out of the city to buy about 40 percent of its total other provinces and cities bring new products from other pro• population. fabrics, clothing, everyday goods, vinces and cities." Bajiao Street is one of the vegetables and eggs from other busiest sections of the town. It is parts of the country to Lhasa. For (Feb. 20. 1987) lined with rows of new buildings in traditional Tibetan style. Shops and stands offer many kinds of goods to local herdsmen and farmers as well as tourists from The State of Student Health foreign countries and Han people from inland China. One old Tibetan from Qinghai Province "XIN Tl YU' 2. The main problem for said, "Lhasa has changed so much (New Sports) Chinese students is being under• that I barely recognized it. I came weight. According to World here 10 years ago. The streets were Health Organization (WHO) dirty and often flooded in parts. It Almost one-fifth of China's height and weight standards, 68 was very difficult for me to find a ^^opulation are university, percent of male students in China place to stay. Now things are middle or primary school stu• were receiving adequate nutrition, different. There are buildings and dents. A 1986 survey of their 29 percent were undernourished the roads are smooth. Most of the health and physical condition and only 2.7 percent temples have been renovated. I am resulted in these findings: overnourished. Among female very happy to drink in the beauty 1. Gauged by height, weight students, 60.4 percent were of the city's scenery." and chest measurements, there receiving adequate nutrition, 36.2 In the past few years, more than was a better physique because of percent were undernourished and 20 large projects and about 100 improved living standards be• 3.4 percent were ovemourished. Tibetan-style buildings have been tween 1979 and 1985. Only 0.6 percent of students completed in Lhasa with the For instance, urban male suffered from overweight. support of the central govern• students were 3.1 centimetres 3. The survey showed that ment. All the streets and lanes taller, 2.2 kilogrammes heavier height measurements for all have been turned into asphalt or and 2 centimetres wider in the students in all age groups except stone-paved roads with drainage chest on the average than students rural females are increasing faster systems. The old houses and new 10 years ago; female students were than weight and chest measure• buildings complement each other. 2.4 centimetres taller, 1.4 kilo• ments. This means Chinese An American tourist said, "Lhasa grammes heavier and 1.3 centi• students generally tend to be tall, is unique. Its ancient temples and metres wider. In rural areas, male but thin. Some experts expect this new buildings nestle among the students were an average of 4.6 tendency to continue. mountains and the landscape is centimetres taller, 3 kilogrammes 4. The survey indicated that the very beautiful. Although I have heavier and 2.4 centimetres most serious disease students already been here twice, I plan to broader, while female students suffer from is bad eyesight: 34.3 return a third time." were 3.3 centimetres taller, 2.3 percent of Han students suffered Lhasa occupies a key position in kilogrammes heavier and 2.3 from bad eyesight, almost 22 economic exchanges between centimetres broader. Neverthe• percent more than minority Tibet and other Chinese provinces less, most Chinese students still students. Generally speaking, and cities. The livestock market on rank fairly low in health indicators vision problems are more com• Chongsaikang Street offers row compared to students in devel• mon in urban than in rural areas, after row of stands selling beef. oped countries. and among women students than

2S BEIJING REVIEW, NO. 17 male students. Vision problems ous conjunctivitis) was the second slightly simplified in order to take also become more common as most serious eye disease for the some burden off the majority of students grow older: students aged students. It was more common in students. It is a step towards 13 to 17 are most likely to have the countryside than in the cities, improving students' ability in bad eyesight. In some areas, the among males than among females, solving pracdcal questions and proportion of poor-sighted stu• and among minority students than raising educational quality in an dents reach 4.7 percent. among Hans. all-round way. 5. Trachoma (chronic contagi• (issue No. 2. 1987) The tendency to let students lose contact with reahty should also be overcome. Under the present educational system, students, Improving Elementary Education especially those on top, progress from school to school for more than a decade and then join work units. During their school years, "RENMIN JIAOYU' thousands of junior and middle- students are out of touch with the (People's Education) level professionals and millions of masses, society and reality. qualified workers. The erroneous Therefore, courses on working tendency to concentrate on the skills and socially-oriented activ• number of problems exist in proportion of students entering ities should be included in the A China's education system colleges before all else should be curricula so students can under• below college level, including an corrected immediately. Newly stand society and specific con• overemphasis on intellectual de• compiled textbooks for nine-year dition in China. Thus they can velopment to the neglect of moral elemerttary education will be better adapt to their future jobs* education, physical development and aesthetic education. In recent years, the proportion of students who gain entrance to schools of a higher grade has These are the kinds of fish we've been getting since your factory started operating! become a top priority in many Cartoon by FANG CHENG schools. Under the pressure of educational departments, schools press teachers to leave no stone unturned in stepping up students' intellectual development. Parents demand that their children have excellent academic records. This has resulted in a "polarization of students" because many of them give up their hope of measuring up to the academic standards, which prove too much for them. At the same time, lack of moral and aesthetic education has given rise to moral problems among stu• dents. Therefore, schools should adopt measures to enable students to develop morally, intellectually, physically and aesthetically. At present, it is imperative to strengthen moral education, which centres on "five loves" — of the country, people, physical labour, science and socialism. Education below college level also should be geared to serving the majority. This means that the main purpose of education should be turning out thousands upon

APRIL 27, 1987 29 • BUSINESS/TRADE

Disputes Settled With Foreign Partners

arly this year, the Economic only in line with China's current EContract Arbitration Com• laws and policies but also mittee under the State Administr• according to international pract• ation for Industry and Commerce ice and established principles and decided that a photo company run will solve disputes fairly and jointly by Hong Kong and a reasonably to protect the legiti• Chinese company should pay mate rights of the interested 20,000 yuan to a Beijing company parties. to cover losses caused by violation For instance, a factory in of contract. Wuhan and an enterprise of West From 1979 to the end of 1986, Germany signed last May a the number of Sino-foreign joint contract for purchases of machin• ventures and co-operative and ery equipment. The German foreign-owned enterprises in enterprise, according to the China reached 7,700, while the contract, delivered promptly, number of contracts signed by while the Wuhan factory didn't these enterprises with individuals pay according to the contract. The and companies enjoying the status dispute was brought to the of legal persons is increasing day arbitration committee, which by day. Disputes are also decided that the factory should The Ka Wah Bank in Hong Kong has 92 increasing. pay the total amount for the goods percent of its shares owned by CITIC. Disputes arise from the follow• delivered and compensate for the losses caused by delayed payment. ing situations: Delay in payment enterprises in setting up 123 joint (42.69 percent of the total), late It has been reported that the companies (including 8 solely delivery (16.15 percent), quality Chinese government, in order to CITIC-owned projects). The cor• disagreeme;nts (13.99 percent), protect the legitimate rights and poration made an investment of quantity disagreements (11.88 interests of foreign investment, is US$1.48 billion. Foreign advan• percent), goods rejected (9.01 making effort to strengthen its ced technology and equipment percent) and price contentions legislative work; and in areas were brought in for the technolog• (6.28 percent). where foreign-invested enterprises ical renovation of some ageing Of all the disputes settled, 56.04 are fairly concentrated foreign enterprises. were from collective enterprises, investment centres will be set up to • Between 1982 and January 23.02 percent from individual provide information and legal 1987, CITIC floated 8 bond issues consultation services. units, 14.61 percent from state in Japan, Hong Kong and Federal enterprises, 6.33 percent from • Germany respectively, totalling an foreign-financed enterprises. equivalent of US$720 million. Zhang Chengquan, ^^eputy Moreover, CITIC secured quite a director of the arbitration com• CITIC Business number of commerical loans. mittee, said that foreign-financed Flourishes • Since the end of 1984, CITIC enterprises have registered with has invested in timber, electroly- the Chinese industry and com• zed aluminium and pulp projects merce departments. They enjoy he China International Trust and Investment Corporation respectively in the United States, the status of a legal person in T Australia and Canada. Besides, China. When disputes arise (CITIC) has made many contri• butions to the development of CITIC participated in the invest• among them foreign enterprises ment in and financing for the should be governed by Chinese China's economy and business since it was established in October second cross-harbour tunnel in law. While dealing with the Hong Kong, and purchased 12.5 disputes they are asked to consult 1979. Over the last seven years, it has done the following work. percent of the equity of Cathay with each other or accept Pacific Airline. arbitration by a third party. If not • By the end of 1986, CITIC successful, within the scope of its had set up 54 enterprises with a • CITIC set up the China control, the Economic Contract direct foreign investment of International Economic Consult• Arbitration Committee will make US$1.2 billion. It itself made ants Inc. In October 1981, and the the final decision. contribution of 1.16 billion yuan. C & C Law Firm in 1985. Over the Zhang said that Chinese • By the end of 1986, CITIC recent years, services have been arbitration departments act not joined hands with domestic rendered on more than 200

BEIJING REVIEW, NO. 17 domestic and foreign China, the president said most big chickens in Southeast Asia and consignments. businesses hope to open an office China. The company will import In 1987, CITIC plans to do the in Shanghai, his company has advanced facilities and technology following works. confidence in China's future for raising poultry. It is expected • This n|onth it signed an development, and will work with to raise 12 miUion chickens, 30 agreement in Japan to issue bonds China's accounting companies in percent of which will be for export, worth 3 million Japanese yen. checking accounts of Sin«-foreign with annual exports amounting to • It will establish the Xinli joint ventures, improving ac• 50,000 tons. Energy Resources Investment counting work and commercial • In the first six months of this Company with the Ministry of affairs. Meanwhile, he said, it is year, border trade between the Water Resources and Electric planning to help some major Soviet Union and the Xinjiang Power. projects in China design new Uygur Autonomous Region in • One of its projects, the computer ware for their needs. China will increase 75.6 percent as Ligang Power Plant in Jiangsu This autumn, said the president, compared with the corresponding Province, will begin building its Arthur Andersen plans to hold a period last year. A border trade first phase project. The plant will symposium on use of computer in contract will be concluded in June be installed with two generating accounting work together with the 1987. sets, total capacity 700,000 kw. Ministry of Electronics Industry Xinjiang's textile exports to the • CITIC has taken over a part and the China International Soviet Union include shirts, of Tianjin's development zone. Economic Consulting Company. children's fur garments, woollen There it intends to finance 40-60 Arthur Andersen has some 200 sweaters, towels, bath towels and export-oriented, technologically offices in over 50 countries. It thermos bottles, and its imports advanced companies. established its first office in Beijing include means of production and by Yao Jianguo in September 1983. • subsistence such as steel products, chemical fertilizers and refrigerators. Arthur Andersen Trade News In Brief • Guangdong Province expor• ted $1.29 billion worth of Shanghai Office commodities in the first quarter of this year, up 75 percent on the rthur Andersen and Co., an • The US Zurn Industries Inc. has signed a contract with the same period last year. A international accounting firm, The province exported $4.29 opened an office in Shanghai on Beijing International Service Cen• tre Ltd. to supply four Keystone billion worth of goods last year, April 10. It will offer consulting accounting for one-seventh of the services to foreign-funded enterpr• boilers for the service centre now commencing construction. They country's total and ranking first in ises in China and also help Chinese China. enterprises invest abroad. are scheduled to be delivered early During the opening ceremony, next year. The boiler, priced • China's stamps are catching Mr. Duanerkullberg, president of around US$2 million, burns 25 the fancy of overseas philatelists the company, said that in recent tons of fuel per hour. Steam and emerging as a potential years, Arthur Andersen's dealings produced by the boilers will help foreign exchange earner for the with the accounting companies of provide energy for the centre. country. China have been very good, and China now has 10 offices his company has helped train BISC will comprise two office abroad distributing stamps across Chinese chartered accountants in towers surrounded by three hotels, the world, with an annual export London, Melbourn, Hong Kong, apartment buildings, a theatre, volume estimated at $2 million. Chicago and Washington D.C., clubs and a shopping mall. This and helped China adopt proper centre is expected to be completed • in the first quarter of this year, computer ware. by 1990 in preparation for the China's exports and imports Asian Games. amounted to IJS$15.61 billion,an Arthur Andersen and Co., said • Construction of the Beijing increase of 7.6 percent over the its president, has a number of Poultry-Breeding Co. Ltd. was corresponding period last year. Sino-foreign joint ventures as its started in mid-April this year. The Exports accounted for US$7.28 clients; they include the Pingshuo company was jointly established billion, an increase of 27 percent; Coal Mine in Province, by the United States, China and and imports for US$8.33 billion, a factories and some hotels af• Thailand, and is expected to be drop of 5.1 percent. filiated with the international completed before the end of 1987. Imports exceeded exports by hotel chains. This is the first Sino-foreign US$1.05 billion; value difference Talking about Arthur joint poultry-breeding company in the same period last year was Andersen's future business in and also the first producing broiler US$1.99 billion greater.

APRIL 27, 1987 31 CULTURE/SCIENCE

Yellow River Cantata {\939) which integrates magnificence, milit• Springtime for Choral fVlusic ancy, and deep love, with grief and indignation. During the period of the War of Liberation (1946-49) which fol• hina's choral music has long and Japan to study. After they had lowed the expulsion of the Cbeen in abeyance, but its spring returned, they began to advocate Japanese, the Huai-Hai Campaign is thought to have shown its first teaching music in schools and Song Cycle — a hymn to the sign last February. The Fifth using music to put their message bravery and victory of the People's National Music Competition across. Liberation Army — is the best. included a choral section. A piece which stands out during This was done to encourage that period is the Charm of the Sea, The time immediately following composers to write choral pieces composed in 1927 by Zhao national liberation in 1949 and choirs to start up with good Yuanren. It is based on a poem by brought many new themes to modern music to sing. For China Xu Zhimo about a girl who loved choral music composition. The has no long history of choral the sea so much that one stormy motherland. Party leaders, look• music. China can pride itself on its day she immersed herself in the sea ing forward to a new life and new beautiful vocal music — but it is and became one with it. happiness, friendship between single melody music — meant for During the War of Resistance peoples of various countries — all one voice usually. Against Japan (1937-1945), choral were written into choral music. Some of China's minorities in music really took off. Inspired by Composers also put their minds to the southwest have their traditions patriotism many composers set making choral music Chinese by of songs for a number of voices, about inspiring others with the composing choral music based on some very beautiful and ancient. fighting spirit. He Luting's Spring traditional and folk songs, But these developed independ• Ploughing and Victory March, and Alamuhan and Guests From Afar, ently, leaving the musical main• Xian Xinghai's On the Taihang Please Stay Over are representa• stream untouched. Mountains (1938) and To the tive of this. When 19 of Chairman China's choral development Enemy's Rear were all part of that Mao's poems were published in took place primarily under the movement. He Luting's Song of 1963 they were made into choral influence of the West. Starting the Guerrillas (1937) has survived pieces. with the May 4th Movement of as a popular piece to this day. I9I9, musician predecessors set The most admired piece from During the 50s and the first half off for Europe, North America this period is Xian Xinghai's of the 1960s, choirs were being set

— "56 Nationalities 56 Flowers" sung by the choir of the Central Song and Dance Ensemble of Nationalities. xu XIANGJUN

32 BEIJING REVIEW. NO. 17 up all over China. Foreign choir Husking" and "Night of the i.e., organic parts usually indicat• masters were invited to train local Torch Festival"—vividly evoke ing the meaning of Chinese choirs and Chinese students were the customs of the Bais, Dais, characters, are left out. sent overseas to train to be choir Naxis, Jingpos and Yis of the There are altogether more than masters. Related courses were province. 47,000, Chinese characters accord• offered in music conservatories. Other prize winners include ing to Kangxi Zidian, an Meanwhile, China's choirs perfor• There Is a Forest in the South. Blue authoritative dicdonary compiled med Chinese as well as Western Sky, Sun and Pursuit and around 1710. Among them, classical choral pieces, including Greetings, Halley's Comet? Each between 5,000 to 8,000 are Beethoven's Choral Symphony of them is a unique piece. All four commonly used. For years since and Mozart's Requiem. songs from the Shanghai Choir 1949, great efforts have been made The "" were prize-winners. This may be by the Chinese government to which undermined every branch attributed to the long-term co• simplify and standardize the of the arts has only one choral operation between the choir characters so as to eradicate piece standing among the musical master, the composers, and the confusions. Under the principle of ruins: Shajiahang appeared during librettists who work on selecting, "following common practice," the that decade (1966-76). It is a piece revising and performing pieces State Council has promulgated that drew on China's theatrical together. several schemes simplifying the melody tradition. Thus spring has come to choral Chinese characters. "The General Choral music failed to recover music, though somewhat stealt• Scheme of Simplified Characters," following the fall of the gang of hily. It has been brought on by the published in May 1964, is four. Long years of neglect in conscious efforts of composers probably the most well-known. schools and in the concert hall left and singers. Although master• Henceforth, people have the country without qualified pieces are still absent, all the pieces replaced the more complicated choir members. A shortage of enrich the people's lives in their traditional characters with the appropriate librettos was ag• drive to modernize the country. simplified ones, as the latter are gravated by composers turning by Wang Zhenya easier to memorize and to use. In away from choral music in favour December 1977, efforts towards of orchestral music. Besides, the further simplification were made expense of putting on a choir as by the State Council, when against a solo singing performance Standardizing another draft scheme was issued. further discouraged its recovery, Chinese Characters Nevertheless, popularization of as did the assault of pop music. the simplified characters is no easy Such being the case, this matter. It has met with several inclusion of a choral section in the hinese characters are known obstacles. competition was quite important. C for their unique structure. 1. Disagreement occurs between It yielded 170 pieces, 24 of which Their uniqueness not only distin• characters before and after they won prizes. The themes and styles guishes them from other written are simplified. People usually get are varied, and ventures into new languages, but is essential to confused by the two different ways techniques were made, such as making them an art form in their of writing the same character. combining melodies and accom• own right. However, problems 2. At present, of all who write in paniment from pop songs. The also arise from this structure — Chinese, only those from main• subject matter of the librettos many characters need more than land China and Singapore are ranged from classical poems to ten, and some even more than familiar with the simplified socialist construction, revolution• twenty strokes to complete. characters. People from elsewhere, ary reminiscences, and praise for Inevitably, this causes inconve• like Taiwan, Hong Kong, and nature and the motherland. nience in memorizing and writing overseas Chinese in other parts of The divertimento Yunnan Cus• them, therefore, people usually the world, still use the traditional toms by Tian Feng is the only tend to simplify the more complex characters, and this has hampered choral piece to win a first prize. ones. communication between the vari• Tian went together with poet Yet, in China, their mother ous Chinese populations. Zhang Donghui and singer Zhao country, some characters have 3. The Chinese characters Xianli to areas in southwest been simplified so much that they themselves are an art form, Yunnan inhabited by ethnic are now beyond recognition, as is developed over thousands of years minorities and studied the local most obvious in advertisements, by skilled calligraphers. For music. The five movements of his posters, etc., in public places. The calligraphers of today, however, piece — "Fishergirls of Erhai reason: it is either that some there are virtually no models of Sea," "On the Way to the FairJ' people coin new characters out of simplified characters to follow. "Mosuo Funeral," "Song of Rice their own minds, or some radicals, 4. Incorrect characters frequ-

APRIL 27, 1987 33 BOOKS^I

AVAILABLE IN ENGLISH festivals and gala activities in these Liu Zonghe multinational areas. Published by: Foreign Languages Life Among the Shen Che, the author, began a Press photographing tour on bicycle Distributed by: China Interna• Minority Nationalities together with a friend in tional Bool< Trading Corpora• Written by: Shen Che September 1980. Setting off from tion (Guoji Shudian), P.O. Published by: Foreign Languages Shanghai, they toured six pro• Box 399, Beijing, China Press vinces and an autonomous region. Distributed by: China Interna• The tour took over 12 months to he book is a collection of more tional Book Trading Corpora• cover a distance of more than Tthan 170 of the finest samples of tion (Guoji Shudian). P.O. Box 8,000 miles. So overwhelmed by embroidery, weaving, hand- 399, Beijing, China the customs and culture he stitching and dyeing patterns for discovered through the multina• costume decorations among he northwestern expanse of tional areas in Yunnan that after people of the national minorities TChina's southwestern province the pedalling tour, he returned in the mountainous Guizhou of Yunnan is crisscrossed with alone to penetrate deep into the Province in southwest China. mountains stretching longitudin• area in Yunnan inhabited by The costume decorations ally, which are paralleled by deep minorities. This book contains 188 among the Guizhou national canyons and rapid rivers. In these colour photographs selected from minorities are added to garments parts the natural conditions are over 1,000 he took on his two by nimble female hands and wild and rugged. Access is difficult trips. therefore may be considered to be due to dangerous peaks and angry relatively independent from the torrents. In the mountains and garments themselves. Such decor• along the rivers, living in their own Ethnic Costume ations may vary in design, size and secluded communities, are such colour composition to conform to Chinese minorities as the Pumi, From Guizhou the requirements of different parts Naxi, Drung, Nu, and Lisu. of a garment as well as to the needs The photographs and the text of — Clothing Designs and Decor• arising from changes in seasons. this book are intended as an ations From Minority Ethnic These characteristics of the art introduction to the natural Groups in Southwest China give it an artistic value of its own environment, ways of life, cul• and make it worthy of collection tures, art, customs, traditions. Compiled by: Huang Shoubao and and study by artists.

ently appear in public places, and sent onto streets to correct wrong structure of the Chinese charac• these, especially ones that are characters, and this has proved to ters," explains the Preface, beautifully written, have a nega• be very effective. In one district in "should be kept stable within a tive influence on people. Shanghai, about three thousand certain period of time for the Problems have already growp primary and middle school purpose of convenience in com• out of these factors. In addition to students have spotted over four mon practice." the many incorrect characters in thousand wrong characters so far. Talking about simplifying the streets, confusions have also The activity has at the same time Chinese characters, one official occurred among elementary and made the students conscious of from the State Language Com• high school students. "It is now a using the correct characters. mission points out that standar• serious problem that many In October 1986, the State dization of Chinese characters students use wrong characters," Council once again issued a requires a complex procedure. The says Zhang Huizhong, a high scheme of simplified characters. work should be carried out school teacher. "Usually there Its purpose, according to its scientifically, and attention should could be as many as ten or more, Preface, "is to clarify confusions be paid not only to reducing the or at least four or five wrong in using the characters so as to strokes, but also to pronunciation characters in an essay of about a make them easier for everyday and meaning. For these reasons, thousand words." use." The new scheme has called few adjustments, e.g., different for the abandonment of the 1977 pronunciation of the same word in The Chinese government has scheme, and, except some minor different context, etc., are made in already been alerted to such adjustments, it is mainly based on the new scheme. confusions. In the past couple of the "General Scheme of Simplified years, many students have been Characters" issued in 1964. "The by Dong Yuguo

34 BEIJING REVIEW, NO. 17 Coming off duty. by Song Enhou Builders. by Yu Mai Become WOME acquaintedN withO ChineseF women CHIN through A

(an Engslish monthly)

• Women's independence and emancipation — various women's careers; • Marriage and family—husband and wife sharing ideals; respect for the elderly; care for the young; • Family planning — late marriage; birth control; one-child families; • Child education — stressing moral, intellectual, physical and aesthetic development; • Women in Chinese history and legends; • Short stories, recipes, paintings, handicrafts, drama, film and dance. Eighteen pages of colour illustrations.

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