Vol. 28, No. 26 EIJING July 1, 1985

A CHINESE WEEKLY OF REVIEW NEWS AND VIEWS North, South Co-operate for Common Prosperity Sichuan Ta^i^y^gpign Jnnds

Hongshui gives More Po wer Medicinal Food Restaurant The Medicinal-Food Restaurant, jointly managed by the Tongrentang Pharmacy in and the Yanjing Hotel, produces traditional Chinese medicinal-food. Its dishes are both nourishing and therapeutic.

Tuckahoe pastries are good for the stomach, spleen and heart.

Longan with sliced silky chicken — an effective tonic for women.

SPOTLiqHT

A waitress explains the fine points of medicinal cuisine to customers. HIGHLIGHTS OF THE WEEK

Vol. 28, No. 26 July 1, 1985 Hongshui River to Provide More Power CONTENTS The richly endowed yet little-known Hongshui River will soon become a major power fupplier. When 11 planned power NOTES FROM THE EDITORS 4 projects are completed by the end of the century, they will Water Lack Colls for Action generate some 60 billion kwh of electricity each year (p. 14). LEHERS 5

EVENTS & TRENDS 6-9 Landlocl(ed Province Readies for New Age Nine New Younger Ministers Appointed Sichuan, with its vast potential market of 100 million NPC Names New HK Low Group people, is attracting overseas investors in spite of its distance Zhao Wraps Up European Tour from coastal ports. A recent investment symposium in Chengdu Soccer Rioters Sentenbed to Joil has paved the way for further trade with foreign countries INTERNATIONAL 10-13 (p. 20). Koreo: Optimism Surrounds Renewed Talks South Africa: New Move to North-South Co-operation tor Mutual Gain Control Namibia India: US Trip Builds Better Ties Pakistan; Small Industry Has Big North-South economic co-operation could connect the Impact advanced technology and capital of the North with the abundant Nicaragua: After the Trade Em• natural and labour resources of the South. It may well be the bargo only way to bring prosperity to people all over the world Portugal: Coalition Dissolves After (p. 18). Row The Hongshui River: A Mighty Powerhouse 14 Loolfing Bacic at a Watcher North-South Co-operation for Mu• Right in Her Soul, written by Anna Louise Strong's grand- tual Prosperity 18 nephew and his wife, tells the story of this famous journalist's SPECIAL REPORT very full 84 years of life in the United States, the Soviet Union and China. The authors describe her thoughts, her hopes, her Landlocked Province Opens to the strengths and weaknesses, as well as her overpowering drive to Worid 20 fulfil what she knew was her destiny (p. 28). 25-26 BUSINESS a TRADE 27 CULTURE & SCIENCE Easing Water Shortages Broolfs No Delay 28-30 BOOKS Despite its progress in developing waterworks since 1949. "Beijing Review" Subject Index China is still plagued by chronic water shortages, which have (Nos. 1-26, 1985) (centrefold) become a stumbling block to its economic growth. To solve COVER: The Yanton Hydroelectric this problem, the government is encouraging conservation while Power Station on the Hongshui River under construction. developing new water sources and drafting laws to protect its Photo by Xu Shenggong water resources (p. 4).

Published every Monday by Distribution and subscriptions handled by Subscription prIcM (1 yMr)i BEIJING REVIEW China International Boeic Trading Australia A.S 14.00 USA USS18.00. 24 Baiwanzhuong Road, Beiiing Corporation (GUOJI SHUDIAN), New Zealand NZ. $18.00 UK tS.OO The People's Republic of China P.O. Box 399, Beijing, China Canada Con. SI 5.00 NOTES FROM THE EDITORS

Water Lack Calls for Action — Inadequate funds for build• by WANG DACHENG ing urban waterworks. ually increase its investment in (tconomic Editor) urban waterworks and sewage By 1990, according to some esti• treatment facilities; encourage ra• China's cities are plagued by mates, China's cities will need an tional use of water; gradually serious water shortages. extra 15 million tons of water a day — a figure that will rise to 88 bring sea water into use for cool• At present, 188 Chinese cities million tons by the end of the cen• ing and washing; and import ad• are short of more than 10 million tury. The country's water resour• vanced foreign technology and tons of water a day. In 40 cities, ces total about 270 million cubic equipment for saving water. the situation is more grave. The Another long-term measure to problem has become a major ease the urban water shortage is stumbling block for China's transferring water over long dis• economic development. tances. In 1980 and 1982, water China follows two from the Huanghe (Yellow) River Since the founding of New principles for easing was twice diverted to Tianjin, an China, great progress has been water shortages: industrial city in north China. La• made in developing urban water• economizing on water ter came projects of diverting wa• works. By the end of 1984, a dai• use and developing new ter from the Luanhe River to ly supply of 39.07 million tons of sources. Tianjin, the Biliu River to Dalian, running water was available to a port city in the northeast, and 89.02 million people, or 83 percent the Luanhe River to Tangshan, a of the country's urban residents. coal city in north China. All ini• In addition, industrial enterprises metres, ranking it sixth in the tially eased shortages in these generate supplies of 65.6 million world, but its average per-capita cities. More such projects are now tons a day for their own use. In supply is only 25 percent of the in the planning stage, including the spite of this, water supplies are world figure. Even worse, those diversion of Songhua River water still far short of demand. resources are very unevenly distri• to cities in the Liaohe River re• There are many reasons for the buted, and their utilization is also gion, Luanhe River water to Qin- water shortage, but the main ones inadequate and irrational. Solving huangdao, a port city in north are: the shortage problem has there• China; and Huanghe River fore become a pressing task. — The increasing reduction of water to Qingdao in Shandong water resources in the cities due China's efforts towards this fol• Province. When the diversion of to rapid urban development, low two principles: economizing the Huanghe to Qingdao is com• dramatic increases in industrial on water use and developing new pleted, the city's daily supply will sources. rise from its present 150,000 tons use, and a lack of unified manage• to 700,000 tons. ment leading to overexploitation The main water-saving measure, of resources; ' Attempts are also being made to apart from establishing supply divert water from the Changjiang — The low rate of recycling, quotas and penalizing waste in in• (Yangtze) River to the north. If which now accounts for only a lit• dustry, will be raising the rate of this project is carried out, water tle more than 20 percent of all in• water recycling, improving the shortages there will be alleviated. dustrial water supplies; treatment and recovery of indus• trial sewage and spreading the use Greater efforts are also being — The lack of equipment for of modern technology. All this, it made on legislation to prevent the disposing of waste water. At pres• is hoped, will raise recycling rates loss and polluHon of China's water ent, 98 percent of the waste water to above 70 percent nationwide supply. A law on preventing and generated in urban areas cannot within the next two to three years. treating water pollution has been be treated, and 86 percent of put into effect and another new China's cities have no sewage In its Seventh Five-Year Plan statute is being drawn up to pro• treatment plants; and period (1986-90), China will grad• tect water resources.

4 Beijing Review. No. 26 LETTERS

On Economic Reform Hope "Review" Retains Being separated from our And Other Topics Its Style motherland for several generations by the vast expanse of the Pacific I find your achievements in re• Beijing Review is the only readi• Ocean, I know very little of our form as reported in the article ly available source of balanced, ac• language, culture and ethnic herit• "On Reform of Chinese Economic curate news of China for the age. Yet I completely identify Structure" by Huan Xiang in Bei• foreigner, but it is important not myself with the destiny of the jing Review No. 20 quite breath• to slavishly accommodate Western motherland. Towards this end, I taking. What you are doing is very consumerism. Beijing Review is am organizing a tree planting tour new in socialist society. It breaks uniquely Chinese, and if that is to the motherland. away from the traditional view of lost, it will become just another Daniel |. W. Yee socialism as heavy industry and "news magazine." Hawaii, USA rigid state planning and makes it The articles I like most are more attractive. I would like to those concerning politics in China see more articles in this vein and International Reports and theoretical articles. 1 also a bit more about the socialist Favoured like articles about the heroes of theory that is guiding the reform. the revolution such as "Nie's Me• It is daring of you to break with 1 find the contents of Beijing moirs Chronicle Troubled Times" dogma and recognize that a form Review very interesting, especially in No. 18 and the book review of of commodity production con• the reports on foreign affairs as Selected Works oj in tinues to exist during the transi• well as reports on the relations No. 19. tional stage of socialism. between China and other coun• Antony Keyes tries. Beijing Review will be I also enjoyed the article "Safe• Queensland, Australia more informative if you publish guarding World Peace an Urgent Through reading issues No. 13 articles on the economic and social Task." 1 have never seen war and and 14. 1 come to realize how im• affairs of a given country, as well don't want to, and 1 am grateful portant and interesting Beijing as stories about its position in in• for the efforts made by China and Review is. ternational relations. other third world countries to defend world peace. In both quality and style, your Kisra Ahmed content and layout can be matched Beni-Mellal, Morocco "Port City Profiles: Sagacious with magazines in our country and Tianjin Businessmen on the Go" in the West. From reading articles by Lu Yun was exciting to read. on China's present reforms, I come Bad Habit Should Be A lot of ports here in Europe are to see the great strength of the Discarded not doing very well and it was Chinese people and their earnest reassuring to think that at least in• spirit, as well as the practical ef• As Canadian born people, we dustry is expanding in some parts forts they have made to look for know a great many Chinese and of the world like in China, and so the best way to improve their lives. we know that the Chinese are not all is doom and gloom. The current Chinese leaders are never in trouble with the law or wise and bold and they should be drunkards in Canada. They are 1 have been studying Beijing congratulated. a real credit to their motherland. Review for a number of years and Yerko Torrejon K. We did notice a terrific amount of now I find the reportage much Punta Arenas, Chile Chinese smoke and this is very more in touch with the kind of things that absorb and interest the poor for their health. So we feel general public. The article "Prices Concern for the that they should be encouraged on Go Up as Beijing Implements Motherland a national level to give up this Reform" in Events and Trends of habit along with the spitting I was very much encouraged by No. 20 is a good example. habit. your article "Planting Trees to |. Martin L. Clarke Commemorate Life" in Issue No. Harold MacMillan London, Britain 20, 1985. Murvillumbah, Australia

July 1. 1985 5 EVENTS AND TRENDS •]• • - ••- - • • -- —Ti'- pT in—-r-\r r- — •'—nf-rni- i-rr ir iivrn"niriW

regions and municipalities by the Nine New Younger Ministers Appointed end of this month. China carried out its second semiconductor and microprocessor After the move, 70 percent of major move within the central theory and technology. Ding Heng- the new leading cadres will be government in the past two years gao, 54, now minister in charge under 60, Hu said. on June 18 when it announced the of • the Commission of Science, In the past few years, 900,000 appointment of nine new min• Technology and Industry for Na• veteran cadres have retired. The isters. tional Defense, is an expert in na• state estimates that 2 million will tional defense affairs and was The appointments, announced have retired by next year. once head of a research institute. by the National People's Congress Standing Committee, are part of The five other leaders are Wang a state drive to promote younger Tao, 53, the new minister of the and better-educated cadres to top petroleum industry; Li Xue, 56, NPC Names New positions. minister of the astronautics indus• try; Yu Hongen, 57, minister of HK Law Group Another nine ministers were the coal industry; Ding Guangeng, replaced in 1983 for similar 55, minister of railways; and Li A 59-member committee has reasons. Zhisheng, 56, minister of radio and been appointed by the National All the new leaders are univer• television. People's Congress to prepare a sity graduates or have attained an basic law for Hongkong after it Of the eight officials who were equivalent level of higher educa• becomes a Special Administrative replaced, six are past the manda• tion. They are former chief Region of China in 1997. tory retirement age of 65. engineers, geologists, research in• The committee consists of 15 stitute directors, university ad• ^4eanwhile, many provinces and high-ranking government officials, ministrators or recognized experts autonomous regions also elected 10 public figures and 11 jurists in their fields. new younger governors and pro• from the mainland. It also in• vincial Party committee heads. The youngest is Li Tieying, 48, cludes 23 people representing the new minister of the electronics Chen Huiguang, 46, a former industrial, commercial, cultural, industry. The oldest is 58-year- engineer, was elected secretary of educational, trade union and old Zou fianhua, minister of the Guangxi Zhuang Autonomous religious groups in Hongkong. the ordnance industry. The new of• Region Communist Party com• Representatives from Hongkong's ficials average younger than 55 mittee. In [iangxi, Wan Shaofen, administrative, legislative and years. 54, became the first woman to judicial circles are also on the head a provincial Party committee. list. Vice-Premier Li Peng, 56, was She had studied economics and The arrangement is intended to appointed minister in charge of last year earned certification as a better express (he opinions, de• the State Education Commission, lawyer. a new body which replaces the mands and desires of the people Ministry of Education. Administer• The move reflects the Party's of Hongkong, and to bring the ed directly under the State Coun• programme to modernize its lead• basic law into line with the ter• cil, it will be responsible for ership by making cadres more ritory's conditions, said Peng setting educational principles and revolutionary, younger, better edu• Chong, vice-chairman of the NPC policies, formulating regulations, cated and more professionally com• Standing Committee, at its 11th unifying education reforms and petent. session held from lune 15 to 19 in generally overseeing programmes. Beijing. In April, Party leader Hu Yao- Li also keeps his position as vice- bang said that the leadership read• Of the Hongkong members, premier. justment would be completed in eight represent local industrial, Li Tieying was once deputy the 107 departments under the commercial, financial and trans• director and chief engineer of an Central port associations. They will play electronics research institute, and Committee, the State Council and an important part in maintaining is considered knowledgeable in the 29 provinces, autonomous Hongkong's stability and prosper-

Beijing Review. No. 26 ity because of their positions and The improved political climate influence, he added. has ushered in boom trade times The committee is organized ac• between the two countries. Last News in Brief cording to an April 10 NPC deci• year Sjno-Dutch trade reached Stressing quantity over sion on preparing a basic law for US$500 million, an increase of quality will deal a serious Hongkong's future. 13.6 percent over 1983. China's blow to China's economic 1984 imports from Holland totall• _ reforms, State Councillor ed US$175 million, a hike of 57 Zhang lingfu said recently. percent over 1983, while exports Zhao Wraps Up to the Netherlands totalled The Stuic Economic Com• US$325 million, a drop of 1 per• mission will send out 16 European Tour cent. groups to check the quality of industrial products across Chinese Premier During Zhao's visit, leaders of the country. After the s«^ visited the Netherlands June 16-19 the two countries signed an agree• \ey, cnterpriscb will be asked on the last leg of his 17-day Euro• ment on the protection of mutual to hah pi-oduclion el good> pean tour that had already taken investments. w'hich fail to meet State stan• him to Britain and West Germany. Under the pact, both countries dards. The factories,: wiH also* be lold to make tnt- The Netherlands' visit, said pledge to extend their economic relations and encourage invest• pvovcmcnis vvilhin a set lime Zhao, was aimed at developing limit. Zhang said, A national friendly relations and co-operation ment through the creation of stable and favourable conditions for such <.tualiiy control network is en the basis of the Five Principles planned, he added. of Teaceful Coexistence. business. The agreement will remain in force for 10 years. The Netherlands was among the West European countries that re• Visit Hailed as Success. Zhao's cognized New China in the early European tour was hailed in China now I 1950s. But after the Hague de• China and in Britain, West Ger• of locally - mn livered two submarines to Taiwan, many and the Netherlands as a nearly 7 percent of China downgraded its diplomatic great success. By meeting West ihc couiilry's 52,000 km ties in May 1981. Full diplomatic European leaders face to face, the ol' irjick. The local lines relajipRS were resumed only in premier was able lo convey arc in 10 areas, including He- February 1984 when the Dutch China's views and express the nan. IJaoning. Tianjin, Si- government agreed to cancel Tai• country's desire for friendship and winan. Guangdong and wan's order for four more vessels. co-operation. Giiuni.'\?. llcnan has 45 per- Dutch Foreign Minister Hans Van Zhao told the European leaders ccni ol ihc tola! with 15 Den Brock's visit to China last that China believes the major is• linos lotalling 1.700 km. January was regarded as a reflec• sues confronting the world revolve Local railways carried tion of the warming relationship around the East-West peace ques• 28.6 million tons of freight between the two countries. tion and North-South development last year, up 5.4 percent over l'-)8>. Profits were 15 million yuan, up 25 perceiit. Places in This Issue

A drive to collect all the secret and folk prescriptions of traditional Chinese medi• cine into one major source work was launched recently. The China .Association for the Research and Develop• ment of Traditional Medicine and Medical Science has been set up to run the project. (1) Jiangxi (P. 6) (2) Guongxi (P. 6) (3) Sichuan (P. 20) (4) Chengdu (P. 20)

July I. i985 7 Hubei Relic Opens

As a symbol of peace and prosperity, the ancient Huanghe (Yellow Crane) Tower reopened- earlier this month in Wuhan, capital of Hubei Province, after a four-year, 15-million-yuan renova• tion. Located atop Sheshan (Snake) Mountain, the 51-metre tall Yangtze River landmark was first built in 223 AD as a sentry post. Destroyed and rebuilt a number of times in the following centuries, it was burnt down during the reign of Emperor Guangxu (1875-1908) of the Qihg Dynasty. The picture at right shows a ceramic mural from a hall on the first storey of the pagodq. Called "The White Cloud and Yellow Crane," it illustrates the legend of the tower's history. concerns. Zhao's explanations of to jail terms ranging from four temporary worker at a building China's fundamental stand helped months to 2-2 years on June 18. materials company, confessed to enhance mutual understanding and hurling bricks and stones at a btis The riot broke out May 19 after laid a solid foundation for the and a taxi. He was sentenced to the Chinese national team was further development of co-opera• six months in jail and ordered to beaten 2-1 by Hongkong in a door- tion. pay a 200 yuan compensation. die World Cup qualifying match The exchange of views between at Beijing's Workers' Stadium. Huang was given a shorter sen• Zhao and his European counter• tence due to his age and the fact The longest prison sentence was parts also proved fruitful. A that he admitted his guilt. The imposed by Beijing's Municipal Renmin Ribao (People's Daily) two others also pleaded guilty. Intermediate People's Court upon editorial commented, "We are Liu Guofang, 20, a tree planter at The Lower Chaoyang District convinced that, in the future, the Babaoshan Cemetery in west• People's Court sentenced two friendly co-operation between ern Beijing. other men to detention for four China and the West European months for their part in the riot. countries will greatly develop to Liu was jailed for 30 months become a pacesetter for North- and ordered to pay 61 yuap in Textile worker Zhao Fengjun, South co-operation and to contri• damages for injuring a policeman 22, admitted throwing plastic drink bute to the development of the and a soldier when he threw a containers at the Hongkong soccer world economy." stone through the window of a team, and salesman Ding Guohua, police vehicle. also 22, pleaded guilty to kicking a policeman. Government office worker Hua The Beijing Municipal Procura- Soccer Rioters Zeping, 25, who admitted helping torate has refused to proceed with other rioters overturn a taxi, was charges against another two de• Sentenced to Jail jailed for two years and forced to tainees unless the Beijing Security pay 200 yuan in damages. Five participants in China's Bureau can produce more worst soccer riot were sentenced Sixteen-year-old Huang Hui, a evidence.

S Beijing Review, No. 26 A total of 127 soccer fans, rang• "I am more concerned about how ing in age from 14 to 25, were de• to deal with the rioters in the after• — f tained after the riot. All but seven math rather than searching for China & the World detainees were released within psychological explanations. It Leaders to Visit China three weeks. seems meaningless to generalize China will receive visits about the motives of the rioters, by three state leaders in late which would probably range from |unc and early July, a for• Excitement or Xenophobia? expressions of chauvinism to vent• eign ministry spokesman an• ing personal grievances." nounced recently. The digni• Some foreign press reports in• taries are Icremaia Tabai, dicated that anti-foreigner senti• Others, however, feel it neces• President of the Republic of ment drove the rioters to vent their sary to dig deeper to discover the Kiribati: Turkish Prime anger upon innocent bus passeng• root cause of the incident. "It is Minister Turgut Ozai; and ers and foreigners who happened not only a matter of courtesy, but Hashemi Rafsanjani, speaker to pass by the stadium. also one of ideology," said Wang Meng, a famous writer. "The inci• of the Iranian Islamic Con• But none of the rioters express• dent, in other words, is warning us sultative Assembly. ed any special hostility towards not to neglect the education in in• Sino-Sovtet Pact Siigned foreigners in their confessions. Xu ternationalism. It is also urging us A Sino-Soviet cultural co• Lin, an office worker in a Beijing to oppose exclusivism and na• operation programme for film company, said, "Our mistakes tionalism." 1985 was signed recently. were totally due to a lack of ma• The programme provides ior turity and a sense of discipline. I Because of China's long history exchanges of cultural and don't think the riot was spurred of being bullied by imperialist art delegations and the by any special hostility towards countries, the Chinese have had to staging of exhibitions. foreigners. We were just unable battle a national inferiority com• to take defeat. We apologize for plex. The trouble is, Wang said, Bank Aids Rural Works our wrong deeds and we firmly people are liable to go to the other China will borrow $164.3 support the government in punish• extreme — to advocate "patriot• million from the World ing those who broke the law." ism" in a warped, xenophobic Bank and its lending af• sense. Wang noted that "a few filiate, the International Though there has been wide• 'black sheep' made trouble while Development Association, spread condemnation of the riot, shouting 'waiguoren, waiguoren,' for three projects designed some Beijing residents feel the (foreigners) after the China-Hong• to mcrease agricultural pro• press has blown the riot out of pro• kong soccer match." duction, develop forest re• portion. "Treat the riot as it was," sources and provide data on said one college student. "It was Wang, an alternate member of a major gas field. nothing but a few young guys in the Chinese Communist Party Cen• excitement. It's common all over tral Committee, said he is worried About §92 million will be the world." that the media is overplaying the provided to centra! Anhui nationalistic nature of interna• Province for a project to in• The student said he doubted the tional sports. He said a game is crease crop output by devel• reports of anti-foreigner sentiment, oping water resources, noting that the Chinese people are not war between two countries. It should be aimed at promoting reducing flood damage and famous for their hospitality, not improving food distribution. their hostility. "My classmates friendship and improving health, like European classical music, he said. Bids Total $2 Billion Japanese TV plays and Ameri• "We should restore the spirit of China' has bought US$2 can sports stars. As a matter of fair play in sports competition. It worth of equipment and fact, you find no evidence of xeno• is not unusual to be joyous in technology by international phobia in our college and even out• victory and disappointed in de- bidding in the last few years, side our campus," he said. ;feat. But, if you exaggerate the said the Chinese Interna• There is as much discussion of political significance of a sports tional Tendering Company. the judicial system's handling of victory, a potential ideological The money was borrowed the matter as there is about the danger may take root, which will from the Japanese, Danish cause of the ugly scene. China spur destructive feelings when and Kuwaiti governments Daily columnist Qiu Mi (a pen people see their favourite team and the World Bank. name meaning "ball fan") wrote. losing," he said. luly 1, 1985 9 INTERNATIONAL

Korea Korea iron, textiles and aquatic products while the DPRK will trade its iron ore, magnesium and Optimism Surrounds Renewed Talks corn. Recent talks between North and South Korea have serv• The two sides earlier presented ed to defuse the tension on the Korean Peninsula. proposals for commodity trade and agreed in principle to recon• ic co-operation committee. Al• nect a North-South rail link severed by LI TU though the draft agreements they in the 1950-1953 Korean War. presented differed, the two sides The draft agreements, issued at OREANS on both sides of the agreed to study each other's draft Panmunjom, represent a major K demilitarized zone that di• and hold the fourth talks on Sep• breakthrough in the inter-Korean vides the peninsula may look back tember 18. on the first half of 1985 as the time economic negotiations that started when their leaders were able to South Korea has proposed buy• last November. begin building a bridge between ing anthracite coal from the Both DPRK chief negotiator Li their different political and DPRK, initiating trade exchanges Song Rok and South Korean re: economic systems. this year and establishing joint presentative Kim Ki-Hwan ex• An April 9 proposal made by fishing areas. The draft statement pressed optimism about the odds the Democratic People's Republic said that Seoul will sell North for success. of Korea (DPRK) calling for North-South talks won immediate endorsement from many coun• tries. And, more importantly; the proposal was accepted by the South Africa South, a departure from its past silence towards such initiatives. New Move to Control Namibia Equally welcome were the re• sults of the latest round of North- Following its military incursions into Angola and Bots• South Red Cross talks. For the wana, South Africa has set up an "interim government" first time in 12 years. Red Cross in Namibia to perpetuate its control of the territory. officials from Pyongyang and Seoul sat face to face to discuss independence. Their hope for ways of reuniting the families by YAN ZHENG torn apart by the Korean War. The peace and freedom was reflected fact that the two sides agreed to in United Nations Security Council EFYING worldwide opposi• resume negotiations is in itself a Resolution 435, which called for tion, South Africa on June sign of detente in Korea, even D free elections leading to the estab• 17 unilaterally set up an "interim though a detailed agreement cannot lishment of a constitution and in• government" for Namibia to per• be reached until late August. , dependence. The resolution has petuate its control of the territory. not only been accepted by th^ What's more, renewed economic The move, which followed South Namibian people and supported by talks can be regarded as another Africa's military incursion into the international community, it sign of the thaw in North-South Angola in May and its |une 14 was even accepted by the South relations. As talks began on June raid on Gaborone, Botswana, has African authorities. 20, both sides moved closer to been protested by the Namibian Nevertheless, the South African their first economic exchanges people and condemned by other regime has announced the estab• when they agreed to a three-point African governments and the in• lishment of an interim government basic agenda for future talks. ternational community. in its northwestern neighbour The North and South of Korea The Namibian people have car• without elections and without con• agreed to establish a joint econom• ried on a long battle for national sulting the South West Africa

10 Beijing Review, No. 26 People's Organization (SWAPO), India the sole legitimate representative of the Namibian people. US Trip Buiids Better Ties Pretoria's aim is to use the in• terim government as a tool to con• Indian-US relations, often strained in the past, now ap• tinue controlling Namibia and to pear headed for improvement following Prime Minister keep SWAPO out of power. By granting Namibia its pseudo- Rajiv Gandhi's visit to the United States. independence, South Africa will Carbide Plant pay an indem- be able to maintain a firm grip by LI WENZHENG nity according to law. on the troubled territory previous• ly known as South-West Africa. GOOD foundation has been Against that background, both A laid for improved tndian-US sides actively tried to improve But who could be fooled by such ties, but differences still remain. bilateral relations during . the a scheme? Indian Prime Minister Rajiv Gan• Washington visit. Gandhi later At a protest rally attended by dhi told reporters on June 14 dur• described his talks there as frank more than 1,000 people, a SWAPO ing his five-day visit to the United and open-minded, and added that representative called the interim States. he believed India can further im• government a new colonialist plan prove its already-friendly co-opera• Since he took office last Octo• tion with the US. which will result in national disas• ber, Gandhi has made a series ot ter. The Namibian people will remarkable domestic and diploma• US President Ronald Reagan not accept such an imposed gov• tic moves, including a much-pub• agreed. He admitted thai the two ernment, he said, and they will licized trip to Moscow for talks countries have areas of disagree• continue struggling for true in• with Soviet leader Mikhail Gor• ment, but said both are convinced dependence. bachev. The US visit, his first since that their fundamental areas of During a June 17 special session he became prime minister, was agreement far outweigh what he of the United Nations Council for therefore th? focus of world scru• called "the differences of the mo• tiny. ment." Reagan has agreed to visit Namibia, UN Secretary-General India before the end of the year, Javier Perez de Cuellar stated that Western diplomatic sources be• in what will be the first trip to "all unilateral measures taken by lieve a foundation exists for im• New Delhi by a US president in -the South African regime in Nam• proving ties between Washington more than 10 years. ibia in contravention of Security and New Delhi. But even in the Council resolutions 435 (1978) and absence of trade and territorial Gandhi also succeeded in per• 439 (1978) are null and void." conflicts, their relations have not suading Washington to sell his Two days later, the UN Security developed as smoothly as both country some US arms, which he Council passed a resolution calling sides would like. A new squabble wants in order to modernize In• for South Africa's immediate can• began just before Gandhi's US dia's army. And his visit won cellation of the so-called interim visit when India blamed the United further agreements on extending government. The Security Council States for selling too many arms scientific and technological co• promised to consider further meas• to neighbouring Pakistan. For its operation pacts. ures against South Africa if part, the United States grumbled While the US expressed its will• Pretoria refuses to co-operate at India for saying that the Soviet ingness in principle to sell arms with the United Nations. The Union's 100,000 troops were and advanced military technology United .Nations and its member "invited" to Afghanistan. to India, the two countries states, according to the resolution, have clinched no large-scale will not recognize the interim gov• For all their differences, how• arms sales in the past 20 years. ernment. ever, neither country has consi• Instead, the Soviet Union has be• dered cutting their many trade and come India's largest arms supplier. At a weekly news briefing on cultural links. Indian popular sen• June 19, a Chinese Foreign Min• timent also seems to favour Before leaving the US, Gandhi istry spokesman called the estab• India relations; even in the vola• reiterated India's policy of non- lishment of the interim govern• tile climate following the disas• alignment. He denied that his ment a grave new challenge to trous gas leak at Bhopal, no anti- country is closer to Moscow than the international community and American demonstrations were to Washinton, and said he will not another obstacle to the Namibian seen, while the Indian government attach India to either superpower. people's struggle for independence. merely demanded that the Union But he also criticized the US

]uly 1, 1985 over Reagan's "Star Wars" plan, reportedly defended Soviet opera- tion and investment analysis. The saying it would add a new dimen- tions in Afghanistan as a "justified facility has established close ties sion to world insecurity. He also response to a specific threat." with more than 60,000 investors and often dispatches agents to Europe and the Middle East to Pakistan persuade Punjabis there to mail back remittances which are then ploughed back into the company. Small Industry Has Big impact Since 1979, overseas Pakistanis have helped set up more than 500 Small industry, an important part of Pakistan's economy, small enterprises in Punjab. is drawing increasing attention from both the government and local businessmen. For the last eight years, the Pak• istan government has been en• couraging lower-cost small enter• by SHI ZONGXING Those mini-factories are located in towns throughout the Punjab prises, which yield quicker profits, plain, and they provide more than especially in remote areas. The MALL industry has assumed an 1.8 million jobs to local residents. move has proved, helpful not only S important and growing role in to agricultural development, but Pakistan's economic development. Two factors help explain why also to preventing rural workers During the 1983-84 fiscal year, the Punjab has recorded such rapid from migrating to urban areas. the vital sector produced 7 percent small industrial development. One is strong technological direction: During the country's current of the country's gross national sixth five-year plan, the Islamabad product — compared with a 12 the company has established eight centres to instruct workers in tech• government has allotted 16.6 bil• percent share for big and medium- lion rupees to developing small sized factories. niques of pottery and porcelain making, leather processing, metal industry — almost 20 percent of its In the same period, 47 percent working, instrument and machine total industrial development of Pakistan's total exports were the manufacturing, carpentry and tool- budget. At a special meeting on products of small industries, as making. The centres apply new small industry at the end of last were 70 percent of its textiles. technology to business, raising year, one minister declared that the government would further liber• Small factories also employ more productivity and quality while lowering costs, thus improving the alize its rules for small enterprises. than 2 million workers, an as• The government will also pro• tounding 87 percent of the coun• competitiveness of the company's products. vide more favourable taxation try's total industrial workforce. terms on products for home use A recent national industrial ex• The second factor is a broad and for export. As these new hibition held in Islamabad vividly investment base. For this, the policies come into effect, small in• demonstrated the strength of small company has set up a consultative dustry will certainly scale new industry. More than half of the centre to provide market informa- heights. show's 300 booths were rented by small enterprises. Marked by di• versity, quality and reasonable Nicaragua prices, many products made by those enterprises have found their way onto the world market. After the Trade Embargo The Punjab Small Industrial The Nicaraguan government tries to shrug off internal Company, for example, displayed difficulties imposed by the US trade embargo, and makes furniture, tableware, colourful tex• some early gains. tiles and finished dresses, marble request for US$27 million in products, copperware and wood by KE DAAN handicrafts. "non-military" aid for anti-govern• ment forces in that small Central The company, only 12 years old, OLLOWING imposition of the American country. has over 80,000 sub-enterprises F American trade embargo on ranging from large ones employing Nicaragua on May 7, the US House With these difficulties, Managua up to 100 workers to small ones of Representatives voted in favour opened a diplomatic offensive consisting of only a single family. of the Reagan administration's designed to expand its foreign

12 Beijing Review, No. 26 markets, marshal world support duced in the Soviet Union and stoppage will bring Nicaragua and, above all, win new economic Eastern Europe. The Managua many problems, analysts also say, aid. In the past month, President government is now trying to it cannot attain its desired results. Daniel Ortega and Vice-President import machine parts and instru• The embargo's long-term impact, Sergio Ramirez Mercado have ments from American enterprises the analysts predict, will either be visited several European countries, located outside the United States, to diversify Nicaragua's interna• while other top officials travelled but the problem is a thorny one, tional relations and trade markets, to Canada and South American and it is far from being solved. thus ridding it of dependence on and Asian nations to ask for help. one or two countries, or to force Observers differ on the effect Managua to move closer to the The visits succeeded in gaining of the US embargo. But while it Soviet Union — the last thing the guarantees on oil supplies, one of is generally believed that the trade embargo's architects had in mind. Nicaragua's most urgent needs. Previously, the country relied on Venezuela and Mexico for 13,000 Portugal barrels a day, but that supply was cut when the government proved Coalition Dissolves After Row unable to pay for them. However, the Soviet Union has now agreed The Social Democratic Party decided early this month to provide 3.5 million barrels, 80 percent of Nicaragua's annual oil to end its coalition with the Socialist Party after a con• needs. In addition, Mexico has flict over labour and agrarian policies, leaving Portugal consented to sell 320,000 barrels to to deal with a new political crisis. Nicaragua between fuly and September and a further 400,000 by HUANG PENGNIAN stitutional government since 1974, barrels in the fourth quarter ot was directly generated by changes this year, helping lay a firm OLLOWING the Social Dem• in the Social Democrat hierarchy. foundation for the Nicaraguan F ocratic Party's (PSD) deci• A new PSD leadership, elected economy for the rest of the year. sion to end its coalition with the at its 12th congress in May, refused Socialist Party (PS) after a row to support Soares in presidential At the same time, Managua has over labour and farm policies, elections scheduled for December. also won new grants or substantia] seven ministers and 12 state secre• increases in economic aid. The taries handed in their resignations The parties met in four summit European Economic Community to Socialist Prime Minister Mario conferences, but all failed to reach will give 7 million European Soares on June 13, throwing the any compromise. Monetary Units in aid to Nica• government into a new state of Portugal has had 15 govern• ragua this year. crisis. ments since the fall of the right- A more pressing issue, however, Social Democratic leader Anibal wing dictatorship in 1974. Eco• is foreign trade, which has been Cavaco Silva criticized the social• nomic difficulties have been one badly hit by the US embargo. ists for their "tardiness" in im• of the major causes of the repeated Although Nicaragua previously plementing land reform, budget changes in leadership. Inflation is earned only about USS50 million cuts and social legislation. running at 29.3 percent and unem• ployment is at 12 percent. Portu• last year on its exports to the US In a speech televised nation• gal's gross national product has while importing US$120 million wide, Soares announced that he also dropped by 2 percent and it worth of American goods, most of would resign to help resolve the now has foreign debts of US$15 its machines, vehicles and spare conflict and called the withdrawal billion, a sum equal to 70 percent parts had to come from the United decision "irresponsible." States — as did the materials for of its GNP. These difficulties have On June 12 Portugal signed its making toothpaste, soap, matches, been restated in continuous quar• treaty of accession to the European plastics and medicine. rels between the two coalition par• Economic Community (EEC). ties. As the crisis deepens, the Under the trade embargo, Soares also condemned the PSD country has three constitutional Nicaragua's private sector will for rocking the government options: forming a caretaker gov• have to face more problems than before the Lisbon parliament rati• ernment until presidential elections state-owned departments, which, fies Portugal's accession to the can be held; setting up a presiden• unlike the private enterprises, have EEC. tial government, as was done in gradually replaced their American The rupture of the two-party the late 1970s; or calling early par• equipment with machines pro• coalition, the country's ninth con- liamentary elections,

/w/y 7985 15 The Hongshui River: A Mighty Powerhouse

water reservoirs will be built to of 135 million tons of manganese by ZHOU ZHENG make use of the river's 1,100- ore. It ranks first in reserves of Our Correspondent metre drop in driving a cluster of tin, second in antimony, third in 11 large hydroelectric stations. silver, fourth in bauxite, sixth in ESPITE its roaring turbu• When completed, the stations will tungsten, seventh in zinc and ti• lence, the Hongshui for cen• D have a total installed capacity of tanium, and eighth in lead and turies ran almost unnoticed from its 11.5 million kw, or 46 percent of mercury. Without huge supplies source on the remote Yunnan- China's national total in 1984. of power, however, these minerals Guizhou Plateau in southwest Thai is enough to generate 62.78 cannot be exploited. Said Gang China. While the Changjiang billion kwh of electricity a year — Ku, a power engineer, "Guangxi's (Yangtze) and Huanghe (Yellow) fully 70 percent of the country's economic takeoff is out of the Rivers were regarded as symbols output last year. question if the Hongshui River of the world's most populous lays untapped." country, few had ever heard of An added bonus to this cascade the Hongshui — until state plan• hydroelectric project is its site: Guangxi will certainly not be ners realized it could be turned Located in a sparsely populated the only region to benefit from into an inexhaustible powerhouse area, it will destroy less farmland the Hongshui^ videvelopment. to drive the development of the and displace fewer local residents When the cascade project is com• region, long an economic back• than is usually in a plan of this pleted at the end of the century, water. size. Yunnan, Guizhou and the rest of south China will all get a sub• The river's development is cru• stantial share of power supplies. "An Inexhaustible Well" cial to the economy of the Guang- xi Zhuang Autonomous Region, As a result, the Hongshui is through which it runs. The region A Tough Job rapidly emerging from oblivion, is one of China's poorest, with and will soon become a potential per-capita industrial and agricul• For the five institutes respon• power supplier second only to the tural output value well below the sible for designing this gigantic Changjiang and Huanghe. By the national average. But it is ex• project,, preliminary surveying and end of the century, power stations tremely rich in resources. Guang- prospecting have been the most built along its course will generate xi leads the country in the deposits difficult part of the entire job. 60 billion kwh of electricity each year. The Hongshui River Hydroelectric Power Network Because of all this, a visit to the Hongshui was placed on the agenda of a Sino-American sym• GUIZHOU r^-' posium on river development held V in Nanning, capital of the Guang- xi Zhuang Autonomous Region, in April last year. One American hydrologist was so impressed that he began to wonder why the huge sums spent by China and the United States on oil prospecting in the South China Sea should not instead be used to develop the Hongshui. With so rich resources, he said, "The river is a well that will never run dry."

Years of geological surveys have finally resulted in a plan for the l)Lubu9e (2)Tianshengqiao (3)Datengxia Hongshui's future. First, two head•

14 Beijing Review. No. 2b can seep through the karst's nu• merous hidden crannies and disap• pear down subterranean stream. To build the headwater reservoir, the researchers first went spelunk• ing, descending into the area's many seemingly bottomless cav• erns to look for potential leaks. In their role as cave explor• ers, the geologists once worked for over 20 hours in a 400-metre- deep cave. With nylon ropes tied to their waists, they sometimes had to dive into underground rivers to ascertain their size and direction, and trace them to their sources. Only after they had explored all the caves around the reservoir could they begin its design and construction.

No More "Big Pot"

Construction is now under way at the sites of the Yantan and Tianshengqiao Hydroelectric Sta- ions, and a responsibility system has been introduced to further speed the work. Under this sys• tem, construction teams which fulfil their tasks ahead of schedule can get substantial bonuses, while At one work site on the Hongshui hydroelectric project. those which fail to meet their deadlines are penalized. This prac• One of them, the Guangxi design of the Yantan Hydroelec• tice has paid off. Last year work• Hydropower Prospecting and De• tric Power Station. ers at Yantan fulfilled an invest• ment of 60 million yuan, outstrip• signing Institute, had completed Working in previously untouch• ping the construction plan by 20 prospecting for a single power ed wilderness, under constant million yuan. station, the Dahua, ten years ago. threat from cold and hunger, the To familiarize themselves with survey team at Yantan drilled 330 Public bidding was also used to the Hongshui's characteris• holes and obtained 28,000 metres rally the efforts of construction tics — and especially its floods — of core samples to test the under• teams from other areas. By offer• the designers visited over 100 ground rock on which the power ing a competitive price, a team plant will later sit. Their work from the Changjiang River Ge- villages near the Yantan site, col• gave them 30 possible loca'sions zhouba Engineering Bureau in Hu- lecting whatever historical data for th& Yantan station, which, bei Province won the contract for they could lay their hands on. An• after repeated screening, were digging the foundation of a dam cient architectural structures and narrowed down to just one. and a diversion canal for the docks were studied carefully, and Yantan station. the new findings compared with Guangxi's numerous karst caves never fail to delight the tourists The Gezhouba team arrived at data obtained from 41 years of who visit them from all over the the site in (anuary after a hydrological observation. In the world. But when it comes to 1,800-km journey from the north. past 150 years, the researchers building a hydropower station, the In 29 hours, they finished install• found the river has had 15 major scenic karst topography spells ing a power-driven shovel — a task floods. This information, once trouble. Water that should be used normally done in four days. A known, played a key role in the to drive the station's generators 20-ton truck that usually carries

/«/>' /, 1985 75 Facts on File: The Hongshui River

HE Nanpan and Beipan Rivers, cent makes it ideal for hydro• power stations have been planned T rising on the Yunnan-Gui- electric development. Eleven (See table). zhou Plateau, converge near • the Guizhou-Guangxi border to form Annual generating the Hongshui River, which flows Name Location Installed capacity capacity (billion through central Guangxi and joins (million kw) hwh) the Liujiang River to form the Qianjiang River. The whole Lubuge Nanpan R. 0.6 3.06 system is part of the extensive Zhujiang (Pearl) River network of Tianshengqiao Nanpan R. 1.08 5.3 south China. The Hongshui, upper dam t meaning "Red Water," is named Tianshengqiao Nanpan R. 0.88 8.2' for the pinkish colour of its water, lower dam (first phase) the result of silt from weathering 0.44 (second phase) sandy shale areas on its upper Pingban Hongshui R. 0.36 1.86 reaches. A total of 1,200 km of the Longtan Hongshui R. 4 18.6 Yantan Hongshui R. I.l 8 Hongshui River's course has been Dahua Hongshui R. 0.4 3.6 brought under a plan aimed at • (first phase) developing its 19,000-square- 0.2 (second phase) kilometre basin. Bailongtan Hongshui R. 0.18 0.91 The river cuts through a sub• Etan Hongshui R. 0.56 3.62 tropical area with an annual rain• Qiaogong- Hongshui R. 0.50 3.15 Datengxia Qianjiang '•2 _ 6.58 fall of 1,200-1,800mm and an an• nual runoff of 133 billion cubic Total 11.5 62.78 metres. The Hongshui's steep des•

74 cubic metres of stone or earth reach 180 yuan a month, while sion project in Tianjin. The team in a workshift now can carry 180 those who make less contribution has also subcontracted part of its cubic metres or even 228 cubic get only a tenth as much. work at Tianshengqiao to another metres. team from the Ministry of Water Their quick progress will enable Resources and Electric Power. What accounts for this high pro• the Yantan engineers to dam the Their plan is to dam the Hongshui ductivity? "We feel obliged to do river by the end of 1987, a year by the end of this year so the our share for the four moderniza• earlier than planned. But that will dam's first generators can go into tions, particularly on a key state only be possible if supplies of operation in 1989. project in a place which used to rolled steel and cement are assured. be a revolutionary base area inhab• Because the river drops 181 me• ited by minority people," 'said Importing Funds and tres in only 14 km near Tiansheng• Zhang [inliang, one of the Ge- Technology qiao, the site makes an excellent zhouba team leaders. Zhang also location for its two planned power attributed the workers' high enthu• The Tianshengqiao Power Sta• stations. Key to the project, how• siasm to an eagerness to get the tion, astride the Guangxi-Guizhou ever, is the digging of three water- work done and return home as border, is being put up by a Peo• diversion tunnels totalling soon as possible. The bonus sys• ple's Liberation Army construction 28.56 km long. tem, too, no doubt played a key team which earlier won a gold med• role. The highest awards can al for its work on a water-diver• Traditional dynamiting technol-

lb Beijing Review. No. 26 BEIJING REVIEW Subject Index (Nos. 1-26, 1985)

issue page issue page No. No. No. No.

Corrupt Cadres Face Crackdown 9 : 8 I DOMESTIC Party Consolidation Enters Second Stage 10 : 4 1. Pollfical Remove Obstacles to Economic Reform 16 4 3) National People's Congress and the 1) General Chinese People's Political Consulta• China's Role in Multipolar World 1 42 tive Conference What Deng Says (1): Current Policies Committee Studies New Contract Law 3 6 Will Continue 4 15 NPC 3rd Session Agenda Detailed 4 7 What Deng Says (11): One Country, NPC to Consider Inheritance Law 13 8 Two Syetems' Born of Reality 5 15 Sessions Discuss Congress Reports 14 6 What Deng Says (111): Optimism for NPC Wraps Up 15-Day Session Economic Construction 6 15 15 6 CPPCC Delegates Optimistic on HK Leaders Go Deep Into Realities of Life 7-8 4 15 6 NPC Sidelights: Economic Reforms Suc• What Deng Says (IV): Open Policy Will ceed in Pilot Cities Not Change 7-8 15 15 19 CPPCC Sidelights: Delegates Assail Un• What Deng Says (V): Promoting the healthy Tendencies Young to Leading Posts 9 15 15 21 NPC Sidelights: Taking the Road to Deng Says China Sticks to Socialism 11 15 Common Prosperity 16 17 Top Leaders Vow Taiwan Flexibility 12 17 NPC Names New HK Law Group 26 6 Socialism Enters a New Phase 13 30 Deng: Reform Is 'Second Revolution' 14 6 4) Cadres, Intellectuals Concept Points Way to Reunification 14 22 Deng: China Keeps Communist Ideals 16 6 Personnel System Needs Change 3 28 Enriching Classic Marxist Theories 16 27 Gap Appears in Talented Personnel 4 29 Stand on Cultural Pollution Clarified 17 8 Foreign Talents Welcomed 5 6 How China Develops Its Nuclear Younger Leaders Making Strides 9 7 Weapons 17 15 Intellectuals Are Younger, Better Trained 19 26 Townships Replace People's Communes 24 8 Problems of Intellectuals 23 27 Model Democrats Commended 24 10 Training More Qualified People 24 4 Nine New Younger Ministers Appointed 26 6 2) Chinese Communist Party 5) Democracy and Legal System Good Party Member Poll 5 28 News Conference for the Masses 5 28 Prisoners Manufacture Porcelain 2 28 Party Secretary and His Classmate 5 29 How Does China Deal With Divorce? 5 : 18 issue page issue page No. No. No. No.

Spreading the Rudiments of Law 6 : 4 Warning on'Natural Resources 2 : 27 China Upgrading Legal Institutions 7-8 : 6 Learn Updated Management Skills 3 : 4 Women Claiming Their Legal Rights 10 : 9 Service Trades on the Rise 4 : 4 Education, Concern Reform Convicts 10 : 10 Rural Economy No Longer Just Farming 5 : 4 Special Report: - Handling Economic Special Report: Regional Co-operation Disputes 11 : 24 Distributes the Wealth 7-8 : 25 Foreigners Entitled to. Property Rights 11 : 28 Reforms Invigorate 1984 Economy 10 : 15 Prison Officer Regrets Abuse 13 : 31 Western Money Market: What's in the Patent Seekers Rush to Apply 16 : 9 Card? 10 : 18 NPC Passes Law on Sino-Foreign Discussion: How to Deal With Losing Contracts 17 : 21 Enterprises 10 : 25 Legal Education Surges Ahead 18 22 Combine Research With Production 11 •= 4 Better Security for Beijing People 18 27 Lottery Craze Draws Criticism 11 : 9 Stiffer Penalties for Black Money Mart 19 7 NPC Session to Promote Economic 12 : 4 Convicts Excel in Examinations 19 27 Reform 4 Soccer Match Riot Mars Image 22 7 Chinese Peasants Favour Small Towns 13 • Inheritance Law Protects Individual's Ministers Chart Growth Plan 14 . 7 Rights 24 28 China Sets Free Its Rural Economy 14 8 Soccer Rioters Sentenced to Jail 26 9 State Decontrols Aquatic Farming 16 8 Coastal Open Economic Areas 17 4 6) People's Liberation Army Upgrading Existing Enterprises 20 4 Ideas on Developing West China 21 29 Veterans Recall Historic Zunyi Meeting 4 6 Tax Evaders Cut State Revenues 22 9 PLA Marches Towards Modernization 18 19 Projection of China's 7th 5-Year Plan 22 17 China Decides to Cut Its Army 24 6 Economist On Socialist Commodity Troop Cuts: Major Move on Peace 25 4 Economy 25 26 Production Set-Up Key to Economy 25 28 7) National Minorities

Report From Xinjiang: Xibes Find 2) Economic System, Wage and Price Reform Home Out West 4 20 Young Tibetans Have Broad Interests 6 30 Zhao on Price and Wage Reform 1 15 Korean Culture Highlighted 10 . 31 Price Reform Heralds New Economic 1 35 8) Others Boom School Teachers Due Pay Raise 2 6 Taiwan Intelligence Officers Implicated 4 : 7 Market to Replace the Quota System 2 : 7 Taiwan Terrorism Condemned 5 : 6 Price System Due for Reform 4 ; 16 My Heart Remains Young in China 5 : 16 Pork- Rationing Returns to Cities 6 : 7 Humanism Has a Place in China 6 : 29 Why Relax Agricultural Price Controls? 7-8 : 16 China Celebrates Lunar New Year 9 : 6 Key Enterprises Urged to Vitalize 9 : 10 Taiwan Agents Get Prison Terms 9 : 9 Chinese Leaders Honour Epstein 17 : 8 Zhao Expounds Wage and Price Reform 13 : 6 China Slams the Sham 23 : 6 State Council Bans Illegal Price Hikes 13 : 7 Price Reform Key to Increasing 2. Economic Production 16 : 15 Prices Go Up as Beijing Implements 1) General Reform 20 : 6 A Record-Breaking Year 1 : 4 On Reform of Chinese Economic Competition, Collaboration Work in Structure 20 : 15 Tandem 2 : 4 Market Changes to Set Prices Right 21 : 4 issue page issue page No. No. No. No.

Key Goods Fail State Contracts 24 10 Growing Sino-Thai Economic Ties 9 33 Second-Stage Rural Structural Reform 25 15 New Trends in China's Silk Exports 10 29 CATIC Praised by King of Jordan 10 29 3) Opening to the World and Co-operation Qingdao Makes Project List 10 30 Jiont Development of Scenic Spot 10 30 Chen Muhua Outlines Tasks I 40 China Forms Joint Ventures Abroad 11 30 Foreign Capital Boosts Agriculture 1 40 China's Carpets Popular Abroad 11 31 Sino-Japan Software Joint Venture 1 41 Three More Regions Open to Investment 12 8 World Bank Awards a China Contracting Shenyang to Focus on Foreign Trade 12 30 Company 1 41 Special Zones Record Advances 12 30 Internationa] Aviation Exhibition 1 41 Customs Reduces Import Duties 12 30 Reviews CITIC Progress 2 29 Fur and Leather Garments Fair 12 31 Machine Export & Import Increase 2 29 Open Policy Essential to Socialism 13 15 Economic Relations With Finland 18 Furthered 2 30 Why is China Opening to the Outside? 13 Official Spells Out Investment Laws 3 16 Yunnan Symposium Seeks Investment 13 28 Kuwait Extends Loans to China 3 29 Fast-Food Joint Ventures Set Up 13 29 Kuwait Interested in China Investments 3 29 Corporation Key to Beijing's Efforts 13 29 CSCEC — China's Largest Construction Sino-Polish Trade Expands 14 29 Firm 3 29 Chinese Workers Help Iraqi Factory 14 29 Sino-US Joint Venture to Build Coal China to Export Watch Mechanism 14 30 Mine 3 30 Venture Produces Pharmaceuticals 14 30 Contract OK'd for First Nuke Plant 4 8 Volkswagen Plant Opens in Shanghai 14 30 Contracts and Labour Service Expand 4 30 Opening Includes Socialist Countries 15 7 Sino-Soviet Border Trade Rejuvenated 4 30 14 Open Cities Make Headway 15 8 Urban Dairy Programme in Motion 4 31 Biggest Investor Bullish on China 15 9 Overseas Bank to Extend Shanghai China Steps Up Timber Industry Co• Services 4 31 operation 15 30 Trade Balance Dips Into the Red 5 6 Textile Exports Now Licensed 15 31 More Money to Import Technology 5 30 China, Algeria Strengthen Ties 15 31 China Petroleum Engineering Construc• tion Corp. (CPECC) 5 30 China to Expand Joint Cigarette Ventures 16 29 More Public Bonds to Be Issued 5 31 Yunnan Develop Internationa! Ties 16 30 More Ports Will Open to Trade 6 6 German Delegation Visits Anhui 16 30 Sichuan to Import Technology 6 31 China Needs More Modern Technology 17 9 Cameroon-China Co-operation Praised 6 31 Progress in Sino-French Trade 17 30 New Round of Offshore Oil Bidding 6 32 Health Cigarettes Sell Well in Japan 17 30 Three Agencies Taking P:;tent Foreign Funds Develop Tourism 17 31 Applications 6 32 Goods for Export Deserve Priority 18 26 Joint Venture to Handle Nonferrous Slight Decrease in China's Imports 18 28 Metals Leasing 6 32 HIETCC Praised for Its Efficient Work 18 28 Shanghai to Host Foreign Trade Meeting 7-8 32 Joint Exploration of Onshore Oil 18 29 Chinese Company Builds Harbours 7-8 32 Joint Honey Venture Formed 18 29 'International Business' Published Soon 7-8 33 New Regulations for Foreign Banks 19 8 Plans to Attract Middle East Investment 7-8 33 Chinese Workers Win Acclaim Abroad 19 28 Reciprocal Exhibitions Planned 7-8 33 Benin Cotton Mill Doing Well With Chi• Jinzhou Seeks More Investment 19 29 nese Aid 7-8 33 Lloyd's to Train Chinese Specialists 19 29 Food Exports Increasing Rapidly 9 32 World's Bankers, Entrepreneurs Meet 20 29

III issue page No. No. No. No. issue page

174 Projects Set for Co-operation 20 29 Notes From Shanxi (III): Joint First Sino-Belgian Joint Venture 20 30 Exploitation Absorbs Foreign Capital 7-8 21 Fibre Materials Imports to Increase 21 31 Port City Profiles: Ningbo —A Jewel by Portugal Interested in China Market 21 31 The East China Sea 9 24 Foreign Firms to Invest in Hainan 21 32 Notes From Shanxi (IV): Miners' Past Bank of China Plays Key Role in Open And Present 10 21 Policy 22 23 Port City Profiles: Zhanjiang — Planning Investment Crucial for Updating for Prosperity 12 21 Industry 22 24 Zhuhai: Taking the Road of Rejuvena• Japanese Banks Step Up Activity in tion 13 23 China 22 34 Tourism Offers Something for Everyone 13 26 Chemical Bank Expands Business 22 34 Port City Profiles: Beihai: Once-Sleepy Development Plans for Mt Changbai 22 35 Port Ready to Take Off 15 . 24 Netherlands Holds Exhibition in Beijing 22 35 Port City Porfiles: A New Age for Am• Jiangsu Lining for Export 23 30 bitious Wenzhou 16 : 22 More Funds Fuel Power Projects 23 29 Port City Profiles: Lianyungang — Xinjiang Opens Doors to Investors 23 29 Door to the Heartland 17 24 Bulgaria Holds Exhibition 23 30 Port City Profiles: Sagacious Tianjin Businessmen on the Go 20 20 Sichuan Sells Coke 24 8 Machine Imports Speed Mechanization 24 32 Energy-Saving Show for November 24 32 5) Industry, Communications and City Construction Fujian Plans for More Imports 24 32 Tibet Border Trade With Nepal Grows 24 33 New City System Outlined 4 28 Expanding Foreign Insurance Business 25 29 Shanghai Economy Gets Top Priority 6 6 The China Hotel — A Rising Star 25 29 The Cleanest City 6 30 China Buys More Foreign Planes 25 30 Mounting Garbage Threatens Cities 7-8 9 Landlocked Province Opens to the World 26 20 Communications Boom Expected 7-8 30 Guangdong Corp. Looks Overseas 26 25 Auto Industry Hits Boom Times 10 6 China Fishes Foreign Shores 26 25 Production of Energy Increases 14 10 Foreign Firms Eye China Market 26 26 Further Explorations of Small Towns (1): China's Road to Rural Industrializa• tion 14 24 29 4) Special Economic Zones, Open Cities and Bionic Ears Restore Hearing 15 Administrative Regions Further Explorations of Small Towns (11): Rural, Urban Industries Melded To• 17 22 Xinjiang — A Centre for Future Devel• gether opment 1 27 Further Explorations of Small Towns Price Reform Heralds New Economic (111): Surplus Rural Labour Put to 21 20 Boom 1 35 Work Port City Profiles: Shanghai Opens Its Develop Nuclear Power Properly 20 27 Arms to the Wold 2 19 Brainpower Develops Xiangfan's Industry 22 26 Port City Profiles: Nantong: Smooth Flat Sales Cure Housing Headaches 25 6 Sailing to Industrial Boom 5 22 Reports From Shenzhen (V): University 6) Agriculture, Forestry and Water Conservancy Uses New Educational System 6 17 1 7 Port City Profiles: Fuzhou — A People's Communes No Longer Govern Historically Famous Cultural City 6 :20 New Rules Curb Rural Pollution 1 7 Reports From Shenzhen (VI): New Breed Government Aids Poor Farmers 4 9 Of Managers Make Their Mark 7-8 : 19 Modern Methods Boost Ag Harvest 5 7 issue page issue page No. No. No. No.

Farmer Take on New Businesses 6 8 Films Dubbed in Minority Languages 16 31 Agriculture Needs Does of Knowledge 9 31 Fujian's Ancient Music Still Strong 19 30 Peasant Investment Enlivens Cities 20 28 Shaoxing Opera Makes TV Debut 19 32 Green Great Wall Holds Back Desert 21 9 Modern Drama Mirrors Society 21 33 Developing Rural Energy Resources 21 23 China's Vocalists Hitting the High Notes 22 29 Water Pollution: A Growing Threat 23 7 Soprano Blends Korean, European Styles 22 36 China Enjoys Top Rice Seed Resources 23 28 35th Anniversary of 'El Popola Cinio* 22 37 A Waterworks on Water 24 9 Ballet Based on Ancient Drama 22 37 The Hongshui River: A Mighty Power• Paintings by Children 22 36 house 26 14 Concert Marks Russian Composer 23 32 Lao She Masterpiece on Television 23 31 7) Finance and Trade People's Bank Crucial to Macro• Sales Ploy Reflects Irrational Prices 3 7 economics 23 17 Why China Has Foreign Debt 6 16 Children's Reading Has Wide Range 23 10 State Contracts Co.iunercial Outlets • 10 6 Weifang Flies a Kite 24 34 How China Views Its Budget Deficit Modern Literature Reflects Chinese Life 25 23 China to Tax Foreign Firms 21 10 The 10,000 'Li' Huanghe 25 32 Consumer Market Opened Up 22 32 2) Education 8) Others Part-time Education on the Rise 7-8 30 War on Rodents Marks Rat Year 10 8 Sichuan Buddhist College Established 7-8 35 Let the Retired Keep Going 11 28 Students Taking Part-Time fobs 11 10 Hainan Island — China's Hawaii U 29 Schools Reform Admission Rules 18 9 Weather Reports No Longer Free 16 9 Teachers' Social Status Improving 19 4 Workers to Play Greater Role 18 7 Colleges Start Design Courses 19 9 Education System Slated for Reform 21 6 Should Teachers Do Business? 21 30 3. Culture Vocational Schools Working Harder 23 8 1) Art and Literature Deng Xiaoping on Developing Education 23 15 Upgrading Education Through Reform 23 16 National Photo Exhibit Shows New Tibetan Students Studying in Beijing 23 26 Forms 1 44 Changing Educational Theory and Shakespeare Society Founded 1 45 Methods 24 19 Writers Promised Free Expression 2 6 Surprising Fine Arts Exhibit 2 31 3) Science and Technology Painting Society Keeps Styles Alive 4 33 Chinese Pipe Played Key Tune 9 31 Fusion Device Will Aid Research 1 45 Ancient Poems Brought to Life 9 35 Know-how Goes on Trading Block 2 8 Western Composer Nourished by Chinese •Great Wall' Will Go Up in Antarctic 2 10 Music 9 35 Science Academy Alters Its Funding 3 6 Museum to Feature Minority Artifacts 10 32 Beijing Collider to Boost Physics Re• Korean Troupe Impresses Beijing 12 32 search 3 31 Lantern Festival Lights Up Ancient City 13 32 Largest Science Centre Under Way 3 32 Filmmakers Join to Produce Movies 13 33 Tibet's Crops Catalogued 6 33 Terra-Cotta Army Comes Alive on Stage 14 31 Atomic Particle Named After Mao 7-8 31 Young Pianists Show Off Talent 14 32 Soybean Leaves Yield Whole Plants 10 28 Reflections on the Movie Decline 15 29 Scientific System Due for Reforms 11 6 New War Movie Focuses on Emotions 15 32 Zoologists Count Yunnan Monkeys 12 32

V I

issue page issue page No. No. No. No.

Research System Undergoing Reforms 12 : 18 Inventors Encouraged to Aid Economy 25 : 18 Team to Survey Loess Plateau 12 : 33 Eugenics Successes Recorded in China 25 : 27 Revamping China's Research System 14 : 15 Chinese Spikers Win in Beijing Tourney 25 : 33 Decision on Science Management System School Trains New Football Stars 25 : 33 Reform Highlighted 14 : 19 Pear Grower Combats Tree Pests 16 : 31 5) Medicine and Health Chilling Monsters Identified 18 : 30 Passing On Traditional Chinese Medicine 3 : 20 Tough New Cotton Strains Developed 18 : 31 New Theory Helps Deal With Cancer 3 : 31 Views on Science and Technology 23 : 28 Baby Kidney Works 14 : 28 Peasants Turn to Science for Help 23 : 22 Scientists Produce Virus Fighter 15 : 33 Technology Fair Gets Results 25 : 9 Pigskin Used in Burn Cases 18 : 31 Private Dctors Get Ministry OK 20 : 8 4) Sports Boosting Medical and Health Projects 23 : 4 China Finishes Second in the Asian Cup 1 : 46 Orbis Eyes China Tour 23 : 9 Masters Square Off in Greece 2 ; 34 Chinese Medicine Wins World Favour 24 : 31 Asia's Top Athletes Chosen 2 : 34 More Nuclear Centres Go Up 25 : 32 Top 10 Sports Stories of the Year 3 : 33 China Organ Swaps Tops in World 25 : 32 Latecomer Wins Windsurfing 4, : 34 River Rafters Challenge Yangtze 4 : 34 6) Archaeology and Cultural Relics Woman Skater Wins Speed Title 4 : 34 Where Did Chinese Culture Begin? 3 : 28 China's Badminton Battlers Flex Muscles 5 : 33 History Lives at Taoist Temple 7-8 : 34 Ancient Crossbow Finds New Life 6 : 34 Famed Lamasery to Open to Tourists 7-8 : 35 Farmer Sponsors Ping-Pong Tournament 6 : 34 Ancient Relics Found in Tibet 10 : 32 Chinese: Rising Gymnastic Power 7-8 : 36 Bamboo-Documents Describe Han Life It : 32 Poll Picks China's Top 10 Athletes 9 : 37 4,000-Year-Old Castle Uncovered 11 : 32 Challenging Climbers Charge to China 10 : 33 State Cracks Down on Relics Vandals 12 : 10 China, Japan to Tackle Unclimbed Peak 10 : 33 Primitive Pictographs Still in Use 13 : 30 China Improves Winter Showing 11 : 33 More Terra-Cotta Figures Unearthed 14 : 31 Bowling Lanes Reappear in China 11 : 33 Underground Palace Found at Qin Tomb 17 : 32 Women Athletes at the Forefront 12 : 34 Elegant Artifacts in Ancient Tomb 17 : 32 China Leads Japan in Go Tournament 14 : 33 Many Dinosaur Footprints Found 17 : 32 Ice Champs Visit China 14 : 33 Prehistoric Elephant Tusk 17 : 33 Worker's Daughter Rewrites Fencing Mysterious 'Boat' Coffin in Wuyi 19 : 26 History 15 : 34 Three Hallmarks of the Chinese 19 : 27 Chinese Paddlers Still Dominate 16 : 33 Neolithic Sites Found in Beijing 19 : 31 First Olympic Gold Medal Won With Ease 17 : 34 Ming Tombs to Be Protected 19 : 31 Shanghai Gymnastics Meet Tests New Where Did the Tomato Originate? 20 : 28 Code 18 : 34 New Discoveries Reveal Ancient Life 20 : 31 10,000 Pound Beijing's Streets 19 : 33 Fossils Reveal 18 Million-^ear-Old World 25 : 31 Chinese Divers Dominate Tournament 19 : 33 Hitching Posts Reflect AiJ^ent Life 26 : 27 Shandong Peasants Take Up Sports 21 : 26 7) Books More Areas Opend in Tibet 21 : 34 More Areas Opened in Tibet 21 : 34 Investment Guide Provides Timely Advice 1 ; 39 Shuttlecocks Gain Popularity in China 22 : 38 Deng Xiaoping's Works Published in Parachutists Show Their Potential 22 : 38 Britain 2 : 32 Chinese Land in Antarctica 24 : 25 More of 's Works Published 3 : 34 Converging Socjal, National Sciences 24 : 30 Blind Author Writes With Clear Vision 5 : 34 issue page issue page No. No. No. No.

International Folk Song Book Published 9 : 38 Rural Women Adjust to Changes 14 : 28 Encyclopaedia Volume Examines the Law 10 : 34 Students Stress Independence 16 : 27 First Volumes of Buddhist Works Ready U : 34 Youth Encouraged to Become Pioneers 19 : 6 Almanac Charts Economic Changes 13 : 34 China Plays Host to Youth Meeting 19 : 6 Encyclopaedia Translated Into Chinese 14 : 34 China Marks International Youth Year 19 : 21 's Story Makes Fascinating Book 14 : 34 Rural Young People Change Their Out• Marshal's Memoirs Bring History to Life 16 : 34 look 19 : 23 Nie's Memoirs Chronicle Troubled Time^ 18 : 32 World's Youth Gather for Peace 21 : 7 Dong Biwu Emphasizes Democracy, Law 19 : 34 Experts' Advice on Child Raising 22 : 10 Peng's Memoirs Chronicle Mis Rise, Fall 23 : 33 Free Women From Heavy Burden 22 : 32 Shapiro's Book About Chinese Jews 25 : 34 Survey Reveals Childbirth Attitudes 24 : 30 Revolution-Watcher's Life Retold 26 : 28 Job Woes Waste Wanted Skills 25 : 27 New Wedding Ways in Tibet 25 : 28 8) Others Papers, Periodicals Published Profusely 1 10 2)' Population and Life Professor Finds Unusual Geyser 2 : 28 Beijing Offices Say Farewell to Nap 1 : 8 Giant Pandas May Move East 3 : 28 Diet, Meal Style Due for Changes 1 : 9 More Bearded Toads in China 4 : 29 Nuclear Families Dominate Countryside 1 : 42 Imperial Clocks Mix Time With Art 4 : 32 How to arrange for 200 Million? 2 : 27 Research Suffers From 'Inbreeding' 5 : 28 Disabled Worker Scores Successes 2 : 28 Virtuoso's Embroidery Lives On 5 : 32 Changes in Life Sparked by Reform 3 : 27 Media Speaks in Many Tongues 6 : 30 School Offering Children Course 4 : 10 Rare David's Deer Back Home 6 33 9 of 10 Marriages Now 'Free-Choice' 6 : 9 Star Succeeds Across the Straits 11 : 29 Chinese Youth Adopt New Styles 7-8 : 7 Centre to Protect Endangered Tiger 15 • 33 Ministry Moves to Reunite Couples 7-8 : 8 Rare Plants Being Cultivated 16 32 Lifestyle Takes Turn for Better 7-8 : 31 No More Pandas to Be Ambassadors 19 9 Advantages of Socialist Lifestyle 9 ' : 30 Mass Media Achieve Growth 19 27 Tianjin's Elderly Describe Their Lives 10 : 27 Chinese Character Used Beyond China 20 28 Changing Attitudes Towards Life 10 : 28 Researcher Listed in Who's Who 21 29 Consumption Changes Forecast 12 : 29 Journalists to Pedal Around the World 22 33 The Key to Choosing a Spouse 12 : 29 Children Press Grow-s 24 31 Shanghai Favours Quality Books 13 : 30 Newlyweds Showing Independence 14 : 28 4. Social A Survey: What Youth Do After Work? 15 : 28 Rural Child-Rearing Outlook Changes 16 : 19 1) Youth, Women and Children Controlled Urbanization Vital 18 : 4 Correct Way to Treat Children 1 42 Measures for Population Control 18 : 26 Young Worker Becomes Specialist I 43 35 Million Only Children 18 : 26 University Students Have High Ideals 3 27 Five Types of Marriage in China 18 : 27 Women Face Variety Challenges 4 28 Revolution on the Dinner Tabl^ 19 : 26 Women Reject Return to Home 5 9 Housekeeper Introduction Office 21 : 30 Retarded Children Need More Schools 5 10 Care for the Urban Pensioners 23 : 27 5-Year-Old Goes to College 5 29 Birth Drop 'Grays' China's Population 25 ; 7 Chinese Women Active in World Arena 9 17 5) Social Trends Mother in the Eyes of Her Children 9 18 They Also Have the Opportunity j 11 20 Good News for the Blind, Deaf, Mute 6 : 10 Beijing Boy-Girl Ratio Almost 1 : I 11 29 'Down-to-Earth' Work Encouraged 12 : 9

VII issue page Issue page No. No. No. No.

300,000 Yuan Didn't Tempt Them 14 27 Third World Transnationals on the Rise 11 : 16 New Life of a Criminal 15 28 Looking Back on Bandung 15 : 14 Planting Trees to Commemorate Life 20 27 China Would Join in Disarming — Li 16 : 7 Beijing Enforces Ban on Spitting 21 9 Hu on S. Pacific Nuclear-Free Zone 17 : 7 Surly Sates Clerks Dis-serving People 25 9 Deng: China, Europe 'Forces for Peace' 17 : 7 Work for the Benefit of Handicapped 25 20 World Workers' Common Aims Stressed 18 : 7 Wu: China Never Threatens Others 18 : 9 4) Others Bandung Spirit Be Carried Forward 18 : 15 Historical Tragedy Must Not Be Repeated Giant Palms of Women Champions 1 43 18 : 16 Developing Countries Step Up Co• Nonsmokers Revive Anti-Smoking Drive 3 8 operation 19 : 16 Weight Woes More Common in City 9 30 Safeguarding World Peace an Urgent' 12 28 An Analysis of 100 Divorces Task 20 : 13 Funeral Customs Experience Change 13 9 Deng Urges Arab Unity in Struggle 20 : 20 China's Jews Found Harmony 14 27 Developing Coutries: Economic Recovery Luxury and Thrift in Banquets 22 33 Slow, Uneven 21 : 14 Water Lack Calls for Action 26 4 China Pushes for Total Disarmament 21 : 15 China, W Europe Speak Common 5) Supplements Language 22 : 4 Regulations on Implementing the Patent CPC Won't Force Its NVill on Others 22 : 6 Law of the People's Republic of China-Europe: Mutual Interests Promote China 7-8 : centrefold Ties 22 : 15 Communique on Fulfillment of China's Sino-E. European Ties Furthered 23 : 7 1984 Economic and Social Develop• The People Desire, Safeguard Peace 23 : 18 ment Plan 12 : centrefold North-South Co-operation for Mutual The Current Economic Situation and the Prosperity 26 : 18 Reform of the Economic Structure 16 : centrefold Report on the Execution of the State 2. China's Foreign Relations, Budget for 1984 and on the Draft State Budget for 1985 17 : centrefold Countries and Regions Report on the Draft 1985 Plan for National J) ASIA Economic and Social Development 17 : centrefold Middle East: Palestine Issue Still the Key I 13 Middle East: US Move Yields Little 15 II. INTEJINATIONAL Progress 19 Middle East: Peace Talks Will Not Come Easy 21 11 1. General Afghanistan 10 Major Events of 1984 1 13 Soviet Trudging in Mire 3 12 Independence Is the Basic Canon 1 16 Bangladesh A Look at the US-Japan-ASEAN Triangle 1 20 April Elections May Win Support 2 12 Where the World Stands — A Foreview 2 15 Policies Speed Economic Growth 14 12 Political Turbulence Continues 2 15 Economy Shows Signs of Recovery 2 16 Burma South-South Ties Stronger 2 18 Ties With Burma, Thailand Expand 9 4 FAO: World Grain Harvest Improves 7-8 13 Deng Praises Sino-Burmese Ties 20 7 China Urges Arms Reduction 9 11 Li Stresses Friendship, Peace With Burma, Strong China Good for World Peace 11 7 Thailand 12:

Vlll issue page issue page No. No. No. No.

Cyprus Lebanon A Failed Attempt, a Step Forward 7-8 • 13 Israel Moves to Withdraw Its Troops 5 : 11 Christian Split Complicates Matters 14 : 13 India New Clashes Lead Karami to Resign 17 : 11 Gandhi Brings Hopes to India 2 11 Lebanon-Palestine: Beirut Camns Torn bv India-Pakistan: Encouraging Signs of a Clashes 22 : 14 Thaw 10 13 India-Sri Lanka: Visits Break Diplomatic Pakistan Deadlock 14 13 India-Pakistan: Encouraging Signs of a Gandhi: Makes Visit to Moscow 22 11 Thaw 10 : 13 India-Sri Lanka: Move to Improve Re• A Step Towards Democracy 11 : 12 lations 24 11 Pakistan, Iran and Turkey: Co-operative US Trip Builds Better Ties 26 11 Organization Revived 18 : 11 Pakistan: Protesting Afghan Border Raids 25 12 Iran Small Industry Has Big Impact 26 12 Iran-Iraq: Gulf War Reaches New Heights 13 11 Pakistan, Iran and Turkey: Co-operative Palestine Organization Revived 18 11 Firm Support for Palestinians' Just Struggle 17 19 Israel Lebanon-Palestine: Beirut Camps Torn Israel: Aim of Troop Pullout Delay 25 12 by Clashes 22 14

Japan Sri Lanka US-Japan: Nakasone's Trip Highlights India-Sri Lanka: Visits Break Diplomatic Ties 2 12 Deadlock 14 13 Nakasone Offers Pacific Prosperity 5 11 India-Sri Lanka: Move to Improve Economic Growth Brings Changes 10 11 Relations 24 11 US-Japan: Economic conflict Grows Hotter 15 13 Thailand Trade Delegations Reflect Interest 11 7 Ties With Burma, Thailand Expand 9 4 Peng in Japan Urges Closer Ties 18 8 Li Stresses Friendship, Peace With Burma, Tokyo Draws Closer to Africa 22 : 12 Thailand 12 6 Turkey Jordan Pakistan, Iran and Turkey: Co-operative Jordan-Palestine: Middle East Stalemate 18 11 Broken 10 12 Organization Revived Viet Nam Kampuchea Another Offensive Gains Nothing 9 11 Hanoi's Offensive Doomed to Failure 3 11 Hanoi Attempts Deception Again 12 13 10-Year-Struggle for Independence 17 : 11 Bitter Fruit of Aggressive Policy 19 14 Korea North Korea: Higher Agricultural Goals 2) AFRICA for 1985 2 : 14 Relaxation of Tension Faces Test 3 : 13 Africa: Working for an End to Famine 11 . 11 South Korea: Democratic Forces Gather Central Africa: Nations Revamp Economic Strength 9 : 12 Policies 15 : 12 Political Talks Sincerely Proposed 16 : 13 Southern Africa: Group Marks Success, Hu Visits Korea 19 : 9 Charts Goals 16 : 11 Common Desire Links Koreans 23 : 11 China Lends a Hand to African Victims 21 : 6 Optimism Surrounds Renewed Talks 26 : 10 Africa: Obstacles Block Economic Growth 25 : 14 issue page issue page No. No. No. No.

Angola Nicaragua

Angola: Oil Industry Develops Rapidly 4 : 14 After the Trade Embargo 26 12

Sierra Leone Uruguay Support Pledged for Sierra Leone 14 : 9 New Period of Democracy Opens 11 : 14

South Africa 4) NORTH AMERICA South Africa: Prosperity From Workers' Misery 10 : 14 Relations With US, Soviets on Track 2 17 South Africa: World Condemns Mas• Superpower Reach Military Balance (I) 3 ^14 sacres 14 : 11 Superpower Reach Military Balance (II) 4 : 25 South Africa: Another Plot to Control Namibia 20 : 10 Canada New Move to Control Namibia 26 10 Tough Budget Raises Taxes 23 13 Sudan Transitional Military Council Formed 16 : 12 United States New Leader Forges New Ties 25 : 13 US-USSR: Geneva Talks Indicate Thaw 1 11 Togo UNESCO Pullout Sparks Complaints 1 11 Togo: Agriculture Policies Reap - • US-Japan: Nakasone's Trip Highlights Rewards 22 : 13 Ties 2 12 Geneva: New Start for Soviet-US Talks 3 10 3) LATIN AMERICA Cuba-US: Quiet Exchanges Mark Relations 6 13 Central America: Region Sees Hope Reagan's Budget Proposal Attacked 7-8 11 Amdist Tension 1 12 US Charge Groundless 9 10 Central America: New Developments Unique Dollar Rise Defies Rules 9 13 Stymie Talks 6 12 Geneva: Arms Talks — a Difficult Western Europe: Latin American Ties Course 12 11 Strengthened 7-8 12 A Move Towards Protectionism 12 15 Latin America: Central America Hopes United States: Facing Middle East 17 12 for Peace Choices 13 n Chinese Principles on Central America 22 17 US-Europe: 'Star Wars' Plan Tests Argentina Relations 14 14 US Funding Decision Based on Slander 15 4 Peronist Party Breaks Up 13 14 US-Japan: Economic Conflict Grows Bolivia Hotter 15 13 Upheaval Haunts Coming Election 13 12 The Soviet-US Talks: No Progress in Geneva 18 13 Brazil Nicaragua: US Trade Ban Blocks Peace Military Rule Ends With Vote 4 11 Process 19 : 13 Democracy Takes Another Step 12 14 Middle East: US Move Yields Little New Government, Heavy Tasks 18 12 Progress 19 : 15 Cuba West Germany: Cemetery Visit Resurrects Emotions 20 : 11 Cuba-US: Quiet Exchanges Mark Paris-Washington: Disagreements at Bonn Relations 6 13 Summit 21 : 12 Havana Launches Peace Offensive 21 • 13 Sino-US: Trade Relations Improve 22 : 9 Paraguay US-Soviet: Arms Talks Plod Along 23 : 12 Democracy and Reform Demanded 23 • 12 China Hits US Attack 24 : 7

X issue page issue page No. No. No. No.

United States: Call to Stop Investing in France South Africa 24 15 Paris-Washingt9n: Disagreements at Bonn Reagan's Diplomacy: An Overview 24\ 21 Summit 21 12 US-USSR: SALT II's Future in Doubt 2-5.^ 11 Greece Conflicts Sharpen Election Tension 17 13 5) EUROPE ... New Cabinet Sworn In 24 11 Comecon: European Members Regain Impetus 2 13 Greenland Western Europe: Unemployment Still a EEC Loses One of Its Members 6 11 Problem 4 12 Western Europe: Latin American Ties Hungary Strengthened 7-8 12 Agricultrue in the Eighties 24 14 Trade Delegations Reflect Interest 11 7 US-Europe: 'Star Wars' Plan Tests Rela• Italy tions 14 14 Craxi's Trip to Moscow 24 :12 European Community: A Move Towards Unifying Europe 15 11 Portugual Bonn Summit: No Impressive Results Macao, Mainland Benefit From Ties 7-8 9 Achieved 19 11 China, Portugal to Talk on Macao 22 6 Western Europe: Labour Faces New Coalition Dissolves After Row 26 13 Challenges 19 12 The Warsaw Pact: No End in Sight for Soviet Union the Pact 20 12 From Ice Cream to Nuclear Power 22 16 Arkhipov's Visit Boosts Trade, Improves Visit Renews Friendship, Co-operation 24 6 Atmosphere 1 6 Western Europe: Eureka Finds New US-USSR: Geneva Talks Indicate Slow Support 24 13 Thaw 1 11 Friendship, Optimism in Zhao's Bonn Relations With US, Soviets on Track 2 17 Visit 25 6 Geneva: New Start for Soviet-US Talks 3 10 Zhao Wraps Up European Tour 26 7 Afghanistan: Soviet Trudging in Mire 3 12 Albania Superpowers Reach Military Balance 3 14 More Flexible Policies Adopted 23 14 Superpowers Reach Military Balance 4 25

Belgium Why Is TASS Attacking Beijing? 9 16 March Nuke Deployment Delayed 4 13 China Mourns Chernenko's Death 11 6 Chinese, Soviet Leaders Seek Closer Rela• Britain tions 12 6 Record Miners' Strike Ended 11 13 Geneva: Arms Talks — A Difficult Many Factors Prompt Pound's Course 12 It Fall 5 13 USSR: -Second Siberian' Provides Vital Trade Delegations Reflect Interest 11 7 Link 12 12 Towards Better Relations 23 11 Hu: China Hopes for Better Soviet Ties 16 6 14 Denmark Gorbachev Proposes Missile Freeze 16 Gorbachev at the Fielm 18 12 Labour Disputes Continue 18 : 14 The Soviet-US Talks:' No Progress in Federal Republic of Germany Geneva 18 13 Bonn Summit: No Impressive Results US-Soviet: Arms Talks Plod Along 23 12 Achieved 19 : 11 US-USSR: SALT II's Future in Doubt 25 : 11 issue page issue page No. No. No. No. Sweden Hu's South Pacific Tour Successful 18 : 6 Stockholm: No Progress in Marathon New Caledonia Meeting 13 : 12 Riots Erupt Over Independence Plan 5 : 12 6) OCEANIA New Zealand Hu's South Pacific Trip Holds Promise 14 ; 4 US Nuclear Warships Banned 6 : 11 Hu Makes His Oceania Visit 17 : 6

XH ogy proved inadequate for the huge project, so the builders im• ported two full-face tunnellers from the Morrion Kauesen Com• pany of the United States. The company, in turn, sent Leo A. Pel- latier, a Canadian, to help install the machinery and train its Chi• nese operators. A 4-square-metre cubicle at the head of a tunnel served as the Ca• nadian's office, which he nick• named the "American Embassy." Asked for his impressions of his co-operation with the Chinese, he replied, "Excellent." He was satis• fied with their work efficiency, he added, but admitted that there was one problem: Too many operators This American-made full-face tunneller proves o big help for were showing up for training on Tianshengqiao builders. the machines. Only 14 people were needed, he said, but twice as many came every day to learn the new the main diversion tunnel. Tomiji site in China, and the benefit will expertise. Samada, head of the Japanese reveal itself sooner or later." tearn, attributed their good work to The Australian and Norwegian Foreign investment has also sincere Chinese help. "Our com• experts have also actively helped played a role in speeding the pany has contracted for projects in by providing advice on con• Hongshui's development. The more than 20 countries," he said, struction of the project. They, too, Tianshengqiao station, for exam• "but we can work smoothly only have won respect for their con• ple, is partly financed by a Jap• where we are helped by the local scientious work style and advanced anese loan. International co• government and our local counter• expertise. operation on an even larger scale parts. That is what we have seen marks the Lubuge station, at the here in China." head of the cascade project. There, Actually, the Taisei Corp. has state investment is supplemented Ini^tial Returns by a World Bank loan. And inter• sent only 30 Japanese to the work national bidding was called to site. The other 300 members work• ing on the project are all Chinese So far, work has begun on five choose the contractor that would of the 11 power stations called for build its water diversion project. workers and engineers. Tomiji was very much impressed by his in the Hongshui cascade develop• When the bidding was an• Chinese colleagues' diligent work. ment project, and two of them nounced in Renmin Ribao (Peo• But he found it hard to understand have already been partially com• ple's Daily) in 1982, 32 companies why some showed widely varying missioned. from 13 countries entered their attitudes: Some were keen on At Dahua, a runoff hydroplant, names. The deal was finally won their jobs, while the others seemed four 100,000-kw generators have by Japan's Taisei Corp. The Nor• not to care. Said he, "In Japan, it already been installed in the first wegian government, after one of is so easy to deal with those who phase of construction; three of its country's companies failed to do not care about their work, but them went into operation in late win the contract, donated 12 mil• in China it probably takes time." 1983. By,this April, Dahua had lions US dollars and sent an advi• The Taisei company won the generated 1.25 billion kwh. The sory group to the work site. Un• bidding by offering a price so low Etan station, with an initial in• der the aegis of the World Bank, that some still doubt whether it stalled capacity of 60,000 kw, has the Australian Snowy Mountains will do the company any good. generated 1.24 billion kwh since Engineering Corp. also sent a "That question is hard to answer 1981. Both stations have helped group to help carry out the con• for the time being," said Tomiji, alleviate power shortages in tracts and construction work. "but I do believe it is of manifold Guangxi and brought new econom• The Taisei Corp. is now digging significance to operate on a work ic benefits to local residents. July 1. 1985 17 TJie opening of the Dahua sta• tion, for instance, boosted power supplies to nearby Mashan County North-South Co-operation from only 330,000 kwh to 16.09 million kwh. The county's Zhou- lu Township, which once had only For Mutual Prosperity two locally run factories with a total output value of 60,000 yuan, doubtedly continue. However, as by TONG DALIN and LIU Ji today has six such factories markets are limited, competition generating 600,000 yuan in total among these countries will also output value. The number of farm- N a recent meeting with lapa- become increasingly hot. A case product processing workshops in I nese businessmen, Deng Xiao• in point is the tense trade relation• the township has also increased ping said, "The world today is ship between the United States from 50 to 197. confronted with two strategic and japan. Market limitations are The development of the Hong- issues: One is peace and the other the Achilles' heel of the North- shui has also helped change local is economy, or rather, develop• North co-operation. lifestyles. In Duan County, the ment. Peace is an East-West prob• South-South co-operation, a peasants used to burn oil for light• lem, while development is a North- powerful lever facilitating co-oper• ing and use stone mills to grind South question. All these problems ation among the developing coun• corn. Now, all have electric lights can be covered by four words: tries, is receiving growing and power-driven mills. With East, West. South and North. Of emphasis. Exchange of reseurces more electrical appliances finding these, the North-South problem is and market and technological co• their way into the region's homes, the core." operation among the South coun• Guangxi housewives now find it The East-West issue, centred on tries are important to their much easier to complete their the two superpowers vying for he• common prosperity. Born of simi• household chores. gemony, is better recognized, as lar experiences, they have no Also, many local peasants have their confrontation and spiraling fundamental interest in conflict become better-off by working at arms race constitute a grave threat and no psychological blocks hind• the power stations. All but three to world peace. However, their ering co-operation. The South- of the 61 families in Fanai Village competition for hegemony goes South co-operation has attained near the Lubuge station have torn against the will of peace-loving many achievements and will attain down their thatched cottages and and independence-cherishing peo• further success. But the point is built new houses with money they ple all over the world. These peo• that the current co-operation is earned by carrying sand and stone ple are the strongest check on war. still at a low level because its par• for the hydroelectric project. As long as they unite and try ticipants are all poor and short of The power stations will also every possible means to resist the capital and technology. help improve navigation. The superpowers, neither hegemony Hongshui between Dahua and nor war can easily occur in our Obviously, the key to full inter• Yantan could formerly take only lifetime. In this atmosphere, the national economic co-operation is 30-ton ships. But with the com• co-operation between East and co-operaiion between the North pletion of a dam at the Dahua sta• West can hope for further develop• and South. But the South is poor tion, the water levels have risen ment in addition to economic, while the North is rich, and that five metres, and 250-tonners now trade and cultural exchanges gap is still widening. ply the river between the two which have already been under• power stations. taken. Indeed, the five-hour, 87-km Rich North, Poor South journey between Dahua and Yan• tan is an exciting experience. The North-North, South-South For hundreds of years, colonial• ship cleaves through calm, deep- ist and imperialist countries in the green waters flanked by mountains In fact, North-North co-opera• North forced their cruel designs covered with lush groves of green tion has formed its own tradi• on the South. The South's vast re• bamboo, crimson kapok blooms tions. Transnational corporations sources were plundered to lay the and purple tung tree blossoms. brought the North countries toge• foundation for the modern edifice The picturesque scene bodes well ther long ago. Co-operative struc• of the northern empires. The for the future of the people on tures and systems were set up in blood and sweat of the people of both banks of the Hongshui River trade, finance and technology. the South was the source of the — a mighty power house. • This'trend in co-operation will un• North's capital accumulation. But

!8 Beijing Review, No. 26 the North became richer than ever sources, technology and markets. technology. To refuse to make use before after World War II, when It appears that no country can of this is to ignore the reality. the colonized countries were win• maintain al\e by itself, and Deng Xiaoping said recently, "No ning independence one after an• even all the North countries added nation of this world can hope to other. That is because: together are not likely to possess develop behind closed doqrs. For all of these factors. Generally, the China to quadruple its gross na• First, the North was able to North enjoys an advantage in capi• tional product by the end of this wield its accumulated capital, tal and technology, whereas the century, it must continue its open technology and scientific infra• South has superior resources and policy, strengthen international ex• structure to its advantage in peace• bigger markets. As to labour, the change, and introduce advanced time. That laid a solid corner• North is superior in quality, and technology, scientific research and stone for its subsequent economic the South in quantity. Therefore capital from the developed coun• growth. the North must rely on the South tries." for resources, markets and labour Second, state welfare policies co-operation to promote prosperity. The North and South face two relieved the strain of domestic basic choices. One is to let pres• class contradictions and won a 2) [udging each factor singly, ent situation go on, with the relatively stable environment for the economies of the North are South still trying to shut its doors further development. That is an built on increasingly sophisticated and trade with the North accord• important premise for economic technology. However, their tradi• ing to the old unfair pattern while progress. tional expertise, preliminary pro• the gap between them widens. If this continues, sooner or later the Third, advanced technology has cessing, and medium- and lower- level manufactures must depend North-South economic confronta• brought enormous fortunes to the on the South to a large degree. tion will surely become a political North. That is why huge trade imbalances one. Fourth, with its advanced prod• have arisen between the United The second choice is co-opera• ucts, the North has been able to States and some developing coun• tion. The resources and markets trade unfairly with the South, tries — in the latter's favour. of the South will help the North maintaining the traditional trade continue its economic develop• balance in its favour. 3) Independence movements ment, while a developed and pros• The North's prosperity, then, is and national-liberation movements perous South will mean expanded built directly or indirectly on its have made gunboat diplomacy in• markets and persistent support for exploitation of the South. creasingly impossible and pre• the North's development. But the South has only itself to vented the North from further blame for some of its poverty. plundering the resources of the Here one thing must be noted. Factors such as failed policies and South. The rising South countries We do not mean "co-operation" in improper management can be held can protect their sovereignty, and its traditional* sense. Trade under responsible to varying degrees in therefore their resources, while the banner of "economic co-opera• particular countries. It is not prac• South-South co-operation in raw tion" has historically meant un• tical to blame the North for all materials grows into a powerful equal exchanges. The result of this the South's troubles, though ex• competitive force. An illustration is that the North, with only 20 ploitation is truly a root cause of of this, and one North countries percent of the world's population, the situation. should long remember, is the co• has taken 80 percent of its wealth. ordinated action taken by the The co-operation we speak of is petroleum exporting countries in equal and of mutual benefit, and What Should Be Done 1973. is directed at eliminating the old imbalance. The co-operation ' we The question of action can be On the other hand, in order to have carried out so far is mainly discussed in three fields. realize its modernization, the composed of agreements between South must carry out effective eco• governments. It is far from First, without the co-operation nomic co-operation with the enough. Though governmental sup• of the South, developed countries North. Capital and technology, port is important, co-operation will gain no further development; which are imperative in economic among people deserves much more instead, they will slip into grave modernization, cannot be expected effort. Far-sighted experts and economic crises. That is because: to fall from heaven; they are only businessmen should join hands to 1) Contemporary economic attainable through steady accumu• develop a new world economic development is usually based on lation. The North has large order leading to common pros• five factors: Capital, labour, re• amounts of capital and advanced perity. •

luly 1. 1985 19 SPECIAL REPORT

Landlocked Province Opens to the World

Following the 14 coastal cities that opened their doors to outside Sichuan had used foreign funds to world, China's inland provinces also began welcoming trade, investment import 128 technical items with a and advanced technology from overseas. The Sichuan Symposium on total value of US$140 million. Of Investment held in Chengdu in April showed that Sichuan is attractive this amount, US$63 million were to foreign investors in spite of its distance from the coastal ports. How foreign investments made in 1979- do overseas businessmen, local officials and entrepreneurs see Sichuan's 83. The amount rose to USS29 mil• investment environment? Some answers to that question are in this lion in 1984, and it was US$48 special report. — Ed. million in the first three months of this year.

Sichuan can |' produce a rich Promising Investment Environment array of products, and this opens up broad prospects for for• — He Haoju, vice-governor of Sichuan Province eign trade. Some of its commodi• spoke on the advantages and disadvantages ties have won quality awards in of Sichuan's investment environment in an national competitions. The value interview with Beijing Review correspondent of Sichuan's exports last year was Zhang Zeyu. only US$400 million, ranking 13th among China's 29 provinces, muni• Question: What results were cipalities and autonomous regions. achieved at the Sichuan sympo• Generally speaking, Sichuan is sium this April? still not yet completely open to the outside world. To change this si• Answer: We have achieved good tuation, in the second half of last results, and reached the targets we year we began sending observers expected. The symposium drew to China's coastal cities and over• more than 1,000 business represen• seas to learn from these more ad• tatives from Hongkong and Macao vanced areas. At the end of last and more than 20 countries includ• year they worked out a detailed ing Japan, the United States, Brit• plan for bringing in foreign invest• ain, France, Italy, the Federal Re• ment and advanced techniques and public of Germany, Yugoslavia and for improving foreign trade. Singapore. Talks with them result• ed in the signing of 170 economic Q: What are the main points of and technological contracts with a this plan? total value of US$260 million, in• A: We will offer the following cluding US$80 million in foreign preferential terms: investment and US$45 million in foraign trade. The deals involved He Haoju. For joint ventures, co-operative machinery, electronics, chemicals, enterprises, compensatory trade, silk textiles, food stuffs, medicines, nomic and trade relations with for• enterprises doing processing work construction materials, tourism, eign countries. with materials supplied by foreign agriculture and animal husbandry. Q: Is this the first time Sichuan companies, top consideration will be given them in the supply of I think the most important thing has had large-scale contacts with raw materials and energy, in trans• is that the symposium gave inves• the outside world? port, and in the installation and tors a good opportunity to see Si• A: Yes. But since 1979, when use of posts and telecogimunica- chuan. And it also helped us get China promulgated its open poli• tions facilities. a better understanding of the out• cies, Sichuan has made some pro• side world. Really, the symposium gress in attracting foreign invest• Land rentals in our large and has paved the way for further eco- ment. By the end of last March, medium-sized cities are lower than

Beijing Review. No. 26 20 those in the coastal cities, and the The four disadvantages are: terials thpy need from distant rates in the small cities are still inland provinces. That raises their lower. — Although Sichuan has a com• transport costs. But if they set up prehensive network of railways, their factories where these raw ma• Sichuan will simplify examina• highways, inland waterways and terials are found, they can save tion and approval procedures for airlines to link it with other parts joint ventures, co-operative enter• much money. In addition, they can of China, its transport distances also benefit from lower raw ma• prises, and enterprises with exclu• are much longer than those of the sive foreign investment. We will terials costs and cheaper labour. special economic zones and coastal Moreover, the Changjiang (Yang• also provide necessary services cities. such as insurance, notarization and tze) River gives Sichuan a conve• bank guarantees. — Overseas businessmen still nient route to the coast. In short, know little about Sichuan, and investments in the inland prov• Sichuan will double its 1984 some even' have no idea where it inces are genuinely worthwhile. export volume by 1990. To reach is. We need more publicity to let this goal, we will export more the outside world know about Si• Q: Can joint ventures and co• farm and sideline products, raise operative enterprises set prices for the quality of our exports, import chuan. their products? advanced technologies and equip• — The state gives Sichuan less A: So far, there are two kinds of ment, and develop new products preferential treatment than it ex• prices in Sichuan. One category is which will be able to compete on tends to the special economic zones international markets. for export products. Enterprises and coastal cities. that produce products for export Q: What are Sichuan's advan^ — We also lack experience in can set their prices according to tages and disadvantages, as far as foreign trade. But we have worked international market demand. your investors are concerned? out a plan for training cadres in Commodities sold on domestic this field. markets are priced according to A: There are three main advan• state guidelines. China is now re• tages and four drawbacks. The In the long run Sichuan's invest• forming its price system based on three advantages are: ment environment is promising. the exchange of equal values and Favourable conditions dominate — Rich natural resources. Si• the relations between supply and our outlook; our unfavourable con• demand. Therefore, joint ventures chuan has almost every mineral or ditions are merely temporary, and energy resource found in any other and co-operative enterprises may can be overcome. For example, soon have more power over the province. It is also strong in agri• long-distance transport is a real culture, livestock breeding and prices of products sold on our problem. But overseas businessmen home markets. forestry. It has China's largest de• who run factories in China's coast• posits of rare metals such as al cities often get the raw ma• vanadium, titanium and cobalt. Its Q: Does your province get loans output of grain, rapeseed, tung oil, The Chengdu No, 7 Radio Factory produces magnetic heads for cassette- silk, citrus and pork is among the tape recorders with equipment imported from the Ikejiri Electrical Company highest in the country. Sichuan of Japan. also produces nearly 3,0QD tradi• tional medicinal herbs, many of them unique to the region. — Vast markets. Sichuan has a population of 100 million. With increased production and improved living standards, the purchasing power of its people is growing con• tinuously. — A strong industrial base. Si• chuan has now developed into a major industrial base, especially in electronics and machine-building. Its fixed assets rank second in China. It is also worth mentioning that Sichuan has more engineers than any other province.

luly 1. 1985 21 from foreign countries or interna• China International Trust and In• detailed projects encourage them tional financial organizations? And vestment Company to issue bonds that taking part in the symposium if so, what about your ability to worth 5,000 million yen in Japan. would be worthwhile," she said. repay them? To bring in more foreign capital, Sichuan itself will issue bonds "During the symposium," she A: We get loans from two overseas and borrow money from added, "1 am with five sources. Some funds come from foreign banks. Of course, all our British companies, including the the central government, which actions must first be approved by General Electric Company, who seeks loans from foreign countries the state. are actually attending the sympo• and then allocates them to the sium. And apart from helping provinces and autonomous regions. The term of repayment we adopt them, where necessary, I am also is usually 10 to 20 years. We al• having meetings and doing prelim• These loans will be repaid by the ways take into consideration our government. Others come directly inary liaison work on behalf of ability to repay when we plan to seven other British companies." from foreign countries, and these absorb foreign capital. Based on we repay by ourselves. For exam- the prevailing trends in Sichuan's "This kind of business talks sav• pie, this February we, in the name economic development, 1 am cer• ed us much time," said Branko of the Sichuan Changjiang Busi• tain we can repay US$100 million Markovic of the Yugoslavian In- ness Enterprise Corp., asked the a year. vest-Import Co. "A few days of talks here gave us the opportunity to know many Symposium Explores Inland Potential Chinese industrialists and entre• preneurs, and we have struck some the province's plans to encourage bargains. The Sichuan Changjiang by ZHANG ZEYU foreign investment and import Business Enterprise Corp. wants to Our Correspondent technology, her favourable terms buy our machines, while we need for foreign trade and a detailed their leather. It is good to supply HE Sichuan investment sym• project list — each project includ• each other's needs." T posium contributed to mu• ed a contact name, address and tel• tual understanding and the devel• ephone number. This thorough Zeng Guoming, chairman of opment of economic and trade ^co• preparatory work gave British the board of directors of the Mul- operation between China and for• businessmen a firm base of infor• titech International Development eign countries. This is the con• mation and helped to bridge the (Holding) Company in Hongkong, sensus expressed by more than a gap in distance between Sichuan said that a city or a region should dozen Chinese and foreign indus• open its doors to the outside trialists and entrepreneurs who and the United Kingdom. Specific, spoke with me during the event, which was held from April 2 to Sichuan Governor Yang Zongzi welcomes overseas industrialists and 10. They hoped other provinces business people attending the trade talks. would hold similar talks.

Good Form Katharine Duxbury, the inward missions secretary of the Sino- British Trade Council in London, described the Sichuan symposium as "well organized." She mentioned in particular the Sichuan technical co-operation delegation which went to Britain in December 1984 to help acquaint the London com- jnercial world with Sichuan's abundant natural resources and the potential market of its 100 mil• lion people. "The delegation also announced

22 Beijing Review, No. 26 world. "In order to let outside than that of our country, chase our packaging machines, world know you, you must publi• and Sichuan has a larger popula• too." cize yourself," he said. "The sym• tion, too. We have done business "Sichuan is really a potential posium itself is a good form for with Liaoning and other places. market," said Zeng Guoming. passing information about the Of course, we'd like to do business "So far there are not a lot of over• province to the outside world. The here. Although the province is far seas businessmen coming to Si• Sichuan authorities really did good from the coastal cities, the,opening chuan. To absorb more foreign work in preparation and advertis• of a new air route between Hong• capital, the Sichuan authorities ing. You gave us a hospitable' re• kong and Chengdu provides a fast will give foreign businessmen more ception, and I am satisfied with link with the outside world. In ad• preferential treatment. Usually, the symposium." dition, our company now has an overseas businessmen could get agency in Hongkong. So, it seems Zhu Ligen, deputy head of the better benefits if they signed to us that Sichuan, a remote but import and export section of the agreements related with the first vast market, is not as far away as Sichuan Silk Company, said the published list of investment proj• it once was. Our company's pack• symposium helped the outside ects. Our company should take aging machines are now sold in world know more about Sichuan. this chance, and pick up some Hebei, Hunan, Fujian and Liao• "In the past," he said, "many for• bargains at the investment ning. I believe Sichuan will pur• eign businessmen bought silk fab• symposium." rics from Shanghai. But they did not know that much of what they purchased was actually made in Sichuan. This is because Sichuan Co-operation Breeds Success did not open to the outside world until recently, and they rarely had March. Over ICQ of the cars are the opportunity to visit Sichuan. by ZHANG ZEYU Our Correspondent already on the streets of Chengdu, Now more and more overseas busi• the provincial capital, giving nessmen are coming to know that round-the-clock service. OING business with foreign Sichuan not only has abundant na• The joint venture is going on investors and partners has tural resources, but also a huge D smoothly, a fact mainly attribut• turned out to be good for all potential market." able to ' the friendly relations involved. established between Sichuan and Opening Up New Market Sometimes, both sides may dif• Hiroshima in September 1984. Of course, another important factor When asked why British busi• fer in working methods and philos• — mutual understanding — can't nessmen have chosen to come to ophies, and they even may quar• be ignored. ' Before the Japanese an inland province to do business, rel over economic interests and companies decided to co-operate rather than choosing a more ac• other matters. But all problems with Sichuan, they had some cessible coastal city, Katharine can be solved if they adhere to worries: Could the joint venture Duxbury said, "There are a lot of the principles of equality, mutual stay afloat for long? Would benefit and mutual accommoda• businessmen in the coastal cities, supplies of oil be guaranteed'' tion. and the competition is therefore And was it possible for them to greater." A look at four joint ventures in remit their profits to Japan? The "Of course," she continued, Sichuan reveals that these princi• Chinese side patiently explained their position on all these prob• "from a political angle, Deng ples are, indeed, being carried out lems. As for the issue of foreign Xiaoping and Zhao Ziyang are in practice. currency, the Japanese companies both from Sichuan and many of are allowed to remit a proportion China's recent reforms were given Dispelling Doubts of their profits to Japan. The taxi a trial in Sichuan first. Therefore, business earns foreign currency businessmen coming to Sichuan Take, for example, the case of because most of its passengers are can also find out about the eco• the Sichuan (Sino-|apanese) Taxi foreign tourists, overseas business• nomic changes which have taken Company, the province's first joint men, overseas Chinese and com• place in China as a whole." venture. Funded by the Sichuan patriots from Hongkong and Ma• Klaus Meyer, manager of the Changjiang Business Enterprise cao. If the company failed to earn enough foreign currency in Si• Rieckermann (Hongkong) Ltd. Corp. and Mazda and C. Itoh & chuan, its losses would be covered of Federal Germany, said, "The Co., Ltd. of Japan, it took delivery by the Chinese partner. This ex- area of Sichuan is larger of its first 200 Japanese taxis in

yu/y /, 1985 25 plariation eased the Japanese which 60 percent was provided agreed to import machines and partners' worries and the deal was by the Chinese side. facilities from Italy, while the soon closed. Italians cover the cost of training Although the factory opened their Chinese personnel. "We are very satisfied with the for business in May, its construc• co-operation," said Hiroyasu Ta- tion was not plain sailing. In June Sincerity \r\n naka, deputy-chairman of the 1982, aft^er a letter of intent was board of directors of the company. signed in Guangzhou, the Italian During the April Sichuan sym• "Sichuan is a potential market of partner made an on-the-spot survey posium, businessmen from Si• 100 million people. So far, that of its site in Sichuan. They held chuan and overseas all showed a market is still undeveloped. Look• that Wanxian provided a poor in• sincere desire for co-operation. ing towards the future, I am sure vestment environment because it The result was the signing of 10 that more and more foreign busi• had neither airlines nor railways contracts on new joint ventures. nessmen will turn their eyes to to transport the new company's The China Sichuan Aluminium Sichuan, and do business there. products to market. The Italian Engineering Co. is a case in point. The competition will become company hesitated, and consider• The deal involved the Sichuan In• greater. I hope our company will ed backing out of the deal. In ternational - Economic and Tech• take root and continue to develop. fuly 1983, however, they finally nological Co-operation Company, The two sides in this co-operation reached agreement with their Chi• the Chengdu Airplane Company are to the company what parents nese partners, and in the past two and the Multitech International are to their child. The parents years the Sichuan factory has re• Development (Holding) Company always hope their son will grow corded sales reaching US$1.5 of Hongkong. up to be a qualified man," he said. million. Zeng Guoming, chairman of During the negotiations, both Makino Concessions the board of directors of the Multi• sides made some concessions. tech, said: "The deal went through without a hitch. This fact can't Another example is the Cogeca- Land lease fees, for instance, be separated from the sincere and China Chuandong Co. Ltd., which were set at five yuan per square active co-operation on the part of is located at Sichuan's Wanxian metre per year. The Italian part• Sichuan." County on the upper reaches of ner is responsible for sales of a the Changjiang (Yangtze) River. portion of the factory's pro• "This time we came to Sichuan The joint venture is composed of ducts on the international market, to attend the symposium. Apart the Chuandong Leather Company so as to earn enough foreign cur• from making money in Sichuan, and the Italmacchine Plants S.P.A. rency to balance the joint venture's we also want to express our love of Italy, and uses equipment im• foreign currency expenditures for for the motherland," said Zeng. ported from Italy. The joint the year. "Sichuan's transport conditions venture involved a total invest• are poor, but we can get cheap ment of 1.95 million yuan, of The Chinese side, for its part. raw materials and cheap labour. Chinese and Italian Technicians check machine installations in the Sichuan has a strong technical Cogeca-China Chuandong Co., Ltd. force, and some local factories can process the spare parts we need." The joint venture involves a total investment of US$5 million. According to the contract, the Chengdu Airplane Company will provide the factory buildings, land and some equipment. Its contri• butions, valued at US$2.5 million, amount to half of the venture's total investment. The two other companies share the remaining investment equally. The enter• prise will mainly produce aluminium window and door frames. In its first year of opera- (Continued on p. 30.)

24 Beijing Review. No. 26 BUSINESS AND TRADE

• Technical guidance and per• Guangdong Corp. Looks Overseas sonnel training.

"The Guangdong International aries in Zhanjiang, Shantou, Address: 308 Central Dongfeng Economic and Technical Corpora• Foshan and Jiangmen. Road, Guangzhou tion (GIETC) has signed 25 con• Located in the coastal area Cable: 9875 GUANGZHOU tracts on undertaking projects and bordering on Hongkong and Ma• Telex: 44388 GDFTC CN providing labour service overseas cao, Guangdong is home to many Telephone; 33616 in the past year. The contracts overseas Chinese and has unique were valued at US$20 million," advantages in running joint ven• said (in Bixian, manager of the tures and co-operative enterprises managerial department of the China Fishes with foreign firms. Zheng Tuo- GIETC. bin, who is now minister of Foreign Shores Founded in 1983, GIETC is a foreign economic relations and trade, attended the opening cere• state-owned enterprise led by the It was reported that four tons mony of the Sino-Maltese Service Guangdong Provincial People's of fish were caught by a Chinese Co. Ltd., a joint venture financed Government. It has set up four fleet in its first haul in Guinea- by GIETC and Malta. companies — the Guangdong Wa• Bissau last month. The fleet, ter Resources and Electric Power Between 1982 and 1984, the composed of a refrigerator Engineering Development Com• province undertook 42 construc• vessel and 12 Chinese-made trawl• pany; the Nanfang Real Estate Co, tion, building materials and water ers, was sent out by Beijing in Ltd.; the Guangdong Labour Ser• conservancy projects in a dozen accordance with fishing co-opera• vice Company; and the Guangdong Asian, African and Latin Ameri• tion agreements signed by China New Techniques Service Co. Ltd. can countries, and in Hongkong with Guinea-Bissau, Sierra Leone It also has four regional subsidi- and Macao. The contracts were and Senegal. valued at US$97.63 million. It also Since 1981, 40 countries have The Friendship Building In Shenzhen signed 58 labour service contracts asked for fishing co-operation with undertaken by GIETC. on sending cooks, fishermen, tai• China. After business talks, China lors and chauffeurs to other coun• set up eight co-operative enter• tries — deals that were worth prises in countries, including Gui• US$26.6 million. nea-Bissau, Sierra Leone, Senegal, GIETC has also set up joint ven• Sri Lanka, Mauritius and Guyana. tures with foreign firms, under• Recently a co-operation agreement taken inter-governmental foreign was initialled by China and the economic aid projects and partic• United States on Chinese fishing in ipated in bilateral and multilat• Alaskan waters. eral economic and technological co-operation between countries. An oceangoing fleet sent out by The corporation has offered tech• the Chinese government has begun nical services for foreign countries operations in West Africa. China including: will also carry out co-operative ventures in Alaska, East Africa, • Topographic and geomorpho- South Asia and Latin America. It logical surveying, geological re• is expected that by 1990 several sources exploration and construc• dozens Chinese refrigerator and tion site planning: fishing vessels will work the • Drafting service, technical above-mentioned areas. Part of data and economic and technical the catch will be used to consultation on engineering proj• pay fishing taxes according to the ects; local stipulations and the rest will • Feasibility studies on engineer• be sold on international or domes• ing projects; and tic markets.

July 1, 1985 25 China will abide by the princi• China, he is confident that his cor• total, 230 offices were set up by ple of "equality and mutual bene• poration is competitive. Japanese firms. fit for common progress," and adopt flexible methods in its co• "Our task at present is to en• operation with other countries. For able our Chinese clients to have a NEWS IN BRIEF instance, China has used tax pay• better understanding of Mazda's ments to build six 135hp fishing products. We shall set tip mainten• • China is co-operating for the boats for Guinea-Bissau and of• ance centres and improve our ser• first time with foreign oil firms fered technical services and other vice system. To this end, Mazda in developing onshore oil resources. consulting services in Guinea- has set up a maintenance factory The first contract, for exploring Bissau. in the Zhuhai Special Economic reserves on Hainan Island in south Zone in Guangdong Province. We China, will soon be signed by the shall also set up five similar cen• Hainan company of the China Na• tres in other cities including Bei• Foreign Firms tional Oil Development Corpora• jing, Guangzhou and Harbin this tion (CNODC) and an international Eye China Market year," Masafumi Bamba said. consortium formed by Australia "We have our eyes on the fu• Many overseas businessmen and other countries. ture rather than on the present. share Masafumi Bamba's views, The contract covers a block of With one-fifth of the world's pop• and have made long-term plans to about 2,800 square kilometres in ulation, China has an immeasur• get into the vast Chinese market. able market potential," said Masa- David Simpson, vice-chairman of northern Hainan. The Chinese fumi Bamba. an official of the the board ot directors of Gould government has decided to call for Mazda Motor Corp. representative Electronics Inc. of the United foreign co-operation in onshore oil office in Beijing. States, said that his company will exploration in ten southern have great opportunities to carry provinces. Mazda, with an annual output on trade with China, because Chi• of 1.3 million auto and truck en• na is a virgin business market. Under the contract, all expenses gines, is one of japan's major mo• and possible risks will be borne tor producers. Its products have Since 1979 more and more by the four companies forming the been marketed in 130 countries representative offices have been consortium. and it has factories in 16 nations. set up in Beijing by foreign Mazda Motor Corp. began ex• enterprises and corporations. • .A contract on establishing the porting its products to China in From 1980 to May this year, en• Sino-Lummus Engineering Com- 1956 and has sold 15,000 so far. terprises and economic organiza• pai^y, a petrochemical joint ven• It plans to sell 10,000 motors to tions from 35 countries and re• ture, was signed on June 1 in Bei• China this year. Masafumi Bamba gions established 640 offices in jing- maintains that although many Beijing. From January to May other [apanese motor vehicle fac• 1985, 85 enterprises registetx;d to The 20-year agreement was con• tories have sold their products to do business with China. Of the cluded by the China Petrochemi• cal Internationa! Company and the Lummus Crest Inc. of the [he Sino-Jopanese Taxi Company in Sichuan Province hos started its business United States. in Chengdu and other cities. The new Beijing-based company will build trfineries, petrochemical plants, synthetic fibre plants and other projects, and modernize old facilities in China and abroad.

It will also supply domestic and foreign firms with services includ• ing project feasibility studies, basic design and construction manage• ment.

This is the China Petrochemical International Company's third joint venture with US companies.

26 Beijing Review, No. 26 CULTURE AND SCIENCE Urn

Hitching Posts Reflect Ancient Life wild animals, their many postures shaped to fit the different shapes of the stones: some forge upward, More than 2,000 engraved hitch• including flowers, plants, birds, while others sit upright or lean ing posts have been discovered in animals, clouds and waves. to one side. Each illustrates the Weibei district, northern Shaanxi temperament of its subject, show• Province, preserving a Chinese The figures most often carved ing men who are generous, aggres• folic art dating back to the South• are lions and monkeys. Almost all sive, prudent, solemn or humorous. ern Song (1127-1279) and Yuan the lions' features are exaggerated The sculptures also portray the (1271-1368) dynasties. to add fierceness to the beast; some stand with their hair point• images of shepherds, old people In ancient times, the possession ing upwards like horns, while and children. Because their crea• of mules and horses symbolized others crouch with their foreheads tors belonged to different tribes, prosperity. To show off their pressed flat and low. Bold strokes they present a gallery of the lives wealth, many local people sank are incised on almost-flat faces to of many ethnic groups. stress the wild and wilful nature hitching posts in front of their Free, vivid, ardent and uncon• of the animal. homes. strained, the artistic style of the hitching posts is quite different After three years of research, The monkey images, on the from that of China's stern and artists and archaeologists found other hand, stress the animal's mysterious religious grottoes and more than 400 posts with artistic liveliness. The ancient artists tombs. But the posts also illustrate value. Tall (about 240-270-cm depicted the animal's typical pos• some of the superstitions of the high), heavy and sturdy, they re• tures to show its agility and grace. country folk of their era. The flect the vigorous and forceful Some of the images are personi• lion, for instance, was regarded as artistic style of their anonymous fied. One, for instance, shows an the king of animals; its carved masons. old monkey seated, cupping her chin in her hands as though medi• image thus reflects the local belief The posts are mostly square or tating despite the small monkey that the beast would scare away octagonal in shape, capped by a playing mischievously on her back. evil spirits and protect their live• drum or lotus flower, which in stock. A woman or a monkey turn supports the sculpted figure The human figures engraved on with a baby on its back symbolizes of a man or an animal. Many posts the posts portray the society of the fertility, while warriors riding wild feature designs carved in relief. time. Most show warriors riding beasts show off male pride. pTjaay ii < HIWIHUIIIMW! BOOKS

Revolution-Watcher's Life Retold

Right in Her Soul a brilliant student, receiving her also met his wife, Li Dequan, who — The Life of Anna Louise doctorate in comparative religion 33 years later as Minister of Public Strong from the University of Chicago at Health would welcome Strong to Written by: Tracy B. Strong the age of 22, a successful the People's Republic of China on and Helene Keyssar organizer of exhibitions on child her final visit. Published by: Random House, welfare throughout the United New York States and in other countries, a Once in Shanghai, arrangements feature writer on the Seattle Union for her passage to Guangzhou via The authors, the grandnephew Record and a foreign correspon• Hongkong were difficult to make of Anna Louise Strong and his dent in Poland and the Soviet because the great Hongkong- wife. Helene Keyssar, have done a Union. Guangzhou strike had begun in remarkable job of capturing in )une of that year. It was accom• print the bold spirit of this famous She had left the United States plished with the help of the Soong journalist, whose career spanned early in 1921 to go to the newly and Liao families, whom Strong the first 70 years of the 20th founded socialist Soviet Union to would later meet in Guangzhou. century and whom they had never see for herself what revolution met, except for a fleeting airport was all about. Her time in Guangzhou was rebuff experienced by Tracy when filled with the excitement of he was eight years old. In the fall of 1925 she found meetings and speeches to militant herself with no commitments until women's groups. She discussed The fact that they were able to the beginning of her American the political situation with her old get right into the soul of this lecture tour in January and headed friends, the Borodins, and her new fascinating and complicated for China via the Trans-Siberian friends, Soong Ching Ling and the woman and bring to their readers Express on "an adventure she had Liaos, and left reluctantly to keep her thoughts, her hopes and needs, wanted for years." a speaking engagement in japan. her strengths and weaknesses as well as her overpowering driv^ to Once in Beijing, she immediately That first trip to China certainly fulfill what she knew to be her set out meeting new people and must have been filled with enough destiny, is testimony to their abil• renewing old friendships. She was of the newsworthy and the exciting ity as biographers and to hers as invited by several organizations to to satisfy even such an intrepid a writer who revealed herself in lecture on developments in the reporter of revolution as Strong. her work. Soviet Union, and her enthusiastic In China and the Chinese people audiences included many of The biography, published in she found a fascinating subject to Beijing's activist students who 1983, tells the story of her very which she would haye liked to were hungry for knowledge of the full 84 years of life in the United devote her full time. But she had Marxist-Leninist experiment. States, the Soviet Union and other obligations: Her annual lecture tour in the United States, China. For this journal, [ will She ran into an old friend from her newspaper work in Moscow dwell almost exclusively on her Moscow, Fanny Borodin, whose and her job as a foreign cor• years in China. husband was then advisor to the respondent. Strong lived by the Strong made six visits to China, Kuomintang in Guangzhou, and Western work ethic and never the first in 1925 when she was Fanny urged her to come and see turned her back on. it. She was 40 years old. She was by that time what was happening there. "Anna only unhappy when she didn't an experienced journalist, a Louise was easily persuaded, and have work to do. seasoned traveller and single- Fanny set about making arrange• minded in pursuing her goal of ments through Soong Ching Ling." She was back in China two gathering information on revolu• Meanwhile, Strong took a frigid years later in 1927, arriving by tion from, the very best sources train trip north of the Great Wall ship in Shanghai from the United .and dispensing this information to to interview , the States. It was a grim and critical the rest of the world. "Christiait general," with whom period, the time of Chiang Kai- She had behind her a record as she was not overly impressed. She shek's betrayal, and Communists

28 Beijing Review. No. 26 were being slaughtered in the streets of Shanghai. Strong went on to Hankou without much delay to see "what it was that filled Hankou with such intensity."

This trip resulted in her joining the Borodins and a small group of people in their historic drive across Henan, Shaanxi, Ningxia to Ulaan Baatar, the capital of Mongolia, and on by car and train to Moscow. She wrote about this amazing trip in China's Millions.

Her third trip to China was not until 10 years later, when she was 52 years old. She came to Hong• kong from Venice, Italy, by ship and made her way quickly to Hankou, where she found the "chaos of human misery. . .. Tens Anna Louise Strong and Zhou Enlai at her 77th brithday party, 1962. of millions of people fleeing westward from the Japanese Here she was most fortunate to The fifth and perhaps most jammed the roads, waterways and discover that Zhou was living in famous visit, to Yenan, came in railroads; refugees swarmed over the city and had sent word "that 1946 v/hen Strong w-as 61. Again every inch of the city, seeking he would like to meet with her for no easy transportation was food, shelter and lost relatives." a series of late-evening interviews. available, but with her usual She managed finally to make her On the first evening he revealed tenacity and nose for out-of-the- way to Shanxi, where she met and that he wanted to give her a way information she got herself talked with Zhu De and other detailed account of the armed booked on an official National Air generals of the Eighth Route clashes between Chiang's generals Transport Service flight from 'San Army. and the Communist-led forces." Francisco to Shanghai on the Zhou told her not to publish the grounds that her proposed visit Her most important interviews material until she received word to was "in the national interests of on that visit, however, were in do so, as he did not want to the United States." She was in Hankou with Zhou Enlai and increase friction prematurely. Yenan by |uly 31. Deng Yingchao, from whom she "But," he added, "we want this learnt a great deal about the status material to be in trustworthy She proceeded immediately to of women in China. hands abroad to release if Chiang, Beijing, staying with her nephew as we fear, attacks more seriously." Robbins who was working as a She also met for the first time missionary. Soong Ching Ling on this trip , Agnes Strong accepted the task as an helped with entry papers to Yenan Smedley and Edgar Snow. By honour, and, upon her return to early March 1938 she was back in and Strong got on a Dixie Mission the United States in January 1941, California ready to tell the Ameri• flight and was in Yenan by July she received the letter telling her to can people about the people of 31, 1946. go ahead. This she did with some China. From this journey came difficulty as the US press, even for Her biographers relate that her book One-Fifth of Mankind. such a scoop, was not about to Strong was "happier than she Strong's fourth visit to China publish anything favourable to the could ever remember being" in came about rather by chance as Communists. She finally managed Yenan. They quote her: "There she was trying to find a route back to get the material into print by was no sense of hurry in Yenan. to the United States from war-torn putting it under the byline of a There was a sense of the ages, of Russia. She was told that there friend who worked on the New time and space. There ••vas a sense was a plane from Alma-Alta to York Herald Tribune. She later of the earth and the slow rhythm Chongqing, and thus arrived in remarked that the article under of the seasons, of the wide difficult Chongqing in late December, another name was "the only real expanse of the Chinese land and 1940. scoop I ever had." the wheeling of the sun above it. fuly 1. 1985 29 bringing seedtime and harvest.... February 1949, just as she was in somewhat by the abrupt disap• So Yenan, despite the war,... the process of returning to China. pearance of friends during the (was)... a haven of peace." She was deported and returned to "cultural revolution." Her sources the United States, only to be com• of information also dried up to Strong is known in Cfliina as pletely ostracized by her comrades some extent and she found it "the paper tiger lady" because it on the left. Travel to China was much more difficult to write. was here in Yenan that the famous impossible, as she was denied a interview with Mao Zedong took passport. But, on the whole, her last years place, in which hp first made the were happy ones, and she even statement, "All reactionaries are It was not until the summer of claimed that life in Beijing had paper tigers." Here she had easy 1958 that the passport situation in improved her disposition. access to all the leaders of the the United States eased and she For any common person, these Chinese revolution and she settled was able to make arrangements to six trips to China over half a with pleasure into living in her travel to Beijing. She would be century, plus the books, newspaper comfortable cave and planned to 73 years old in November and she articles and lectures that were spend the winter writing their was not in the best of health, as given about them, would have story. she was suffering from Paget's provided quite a full life. But for disease and could only walk with Strong it was just a small part. Unfortunately, the civil war the aid of crutches. This was her She worked in her own country intervened and Yenan had to be sixth trip to China, and it turned until she was over 30 and then evacuated. Both Mao and Zhou out to be her last, for she stayed spent another almost 25 years thought it would be better if she until her death in 1970 at the age working in the Soviet Union. did not try to stay in the Shaanxi of 84. During that time she also visited hills, but went back to tell her During those final 12 years she Mexico, England, France, Germ- ^ story to the world. So in mid- regained her health and continued any, Poland, Yugoslavia, Spain, t February 1947 she left for her unrelenting work pace. She Laos and Viet Nam and reported ^ Shanghai, where she spent some moved into quarters at the Peace from many of these countries. ^ months finishing Dawn Over Committee compound and lived a China and trying to get dispatches gracious and pleasant life. She The wealth of material collected «. printed in the US press. In July travelled all over the country, by Tracy Strong and Helene Key- ? 1947 she returned to Moscow. including Tibet. She wrote about ssar in their biography of Anna -f all she saw and interviewed the Louise Strong and their clear and ^ The 12 years following Strong's man on the street as well as the interesting presentation makes ^ departure from Yenan were prob• state leaders. good history as well as a good — ably the most difficult of her life. story. ^ She was arrested in Moscow in Her later years were saddened — Ruth Evans Coe i. -fc fl a (Continued from p. 24.) of the Federal Republic of Ger• • Shares of investment. The A many. Though they had different Haase company wanted to have tt. tion, it is expected to turn out views during their business talks, 200,000 square metres of alumin• less capital registered and to hold A ium. In the following years, its they were both motivated by a' fewer shares in the joint venture output will reach 400,000 square desire to accommodate each other — only 25 percent of the total metres. Two-thirds of its prod• and were finally able to reach investment. The Sichuan side ex• ucts will go for domestic Use, while agreement. pressed its understanding of the remaining one-third will • Proportion of products for Haase's fear of running risk in the be sold abroad by the Hongkong export. The Chinese partner in• Chinese market, and agreed with partner. Its foreign currency itially asked Haase to sell 30 per• its demands. % earnings are first paid back to cent of the joint venture's prod• the Hongkong partner. The term ucts overseas. But the German • The term of the joint ven- * of the joint venture is 15 years. company insisted on assuming ture. The Chinese side suggested g- Another successful example is responsibility for sales of only 10 a term of 15-25 years for the co- ^ the Chengdu Beer Company, Ltd. percent of the beer. After con• operation. However, Haase asked ^ The contract is concluded be• sultations, Haase made conces• for 30 years. Finally, a term of ^ tween the Chengdu Brewery sions and agreed to increase its 25 years was set by both sides. ^ and the Haase-Brauerei G.M.B.H. share to 25 percent. • ^ 30 Beijing Review, No. 26 Paintings by Liu Guosong

Born in 1932 in Yidu County, Shandong Province, Liu Guosong now teaches in the art departement of the Chinese University of Hongkong. FOREIGN LANGUAGES PRESS Beijing China

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