Vol. 28, No. 4< December 9, 1985 JING

A CHINESE WEEKLY OF REVIEW NEWS AND VIEWS Qualitative Escalation of Superpower Arms Race Ten Major Changes in China's Economic Research SPOrUQHt

Xiamen Today

A wharf at Xiamen's Dongdu Harbour. After tfie comple• tion of 23 deep-water berths, V - the annual handling capacity BP' of Xiamen Harbour will increase from 4 million tons to 1 5 million tons.

Xiamen International Airport.

The Xiamen Special Economic Zone has es• tablished trade relations with more than 80 countries and regions. Xiamen has stepped up coustruction of its commu• nications and energy facil• ities, and improved its administration to keep abreast of its changing needs.

Workers at the Xiamen Synthetic Fibre Weaving Mill operating with jockquard looms imported from the Federal Republic of Germany. BEIJING

REVIEW HIGHLIGHTS OF THE WEEK

Vol. 28, No. 49 December 9, 1985 Superpower Arms Race Enters a New Stage Both the United States and the Soviet Union are researching CONTENTS and developing space weapons. This represents a qualitative escalation in their arms race, bringing about changes in their NOTES FROM THE EDITORS 4 military strategies. The implications of the new trend have No Relaxation in Groin Production not yet been fully revealed, but it can be said for certain that LETTERS 5 it will profoundly alter the world strategic situation (p. 15). EVENTS & TRENDS 6-10 Study of Economics Undergoes Vast Changes Price Reform: 6 Months Later Sino-Maiaysion Relations Develop Spurred by the cascading current economic reforms, China's Students Spurred to Renew Spirit American Writers Dearly Re• study of economics is witnessing changes in 10 major aspects, membered from critical to constructive economics, from the categorical rejection of contemporary Western economics to its analysis INTERNATIONAL 11-14 and use, and from theoretical to applied economics (p. 17). North-South: Co-operation Bene• fits Both Sides Central America: Contadora Per• Price Reform: Good Beginning in 1985 sists in Peace Pursuit Chinese grocery markets were gripped by price hikes soon Afghanistan: Major Shakeup in after the government decontrolled the prices of non-staple food Kormal's Party items earlier this year. But with pay rises and subsidies, city Australia: Sandwiched Between dwellers find it easier to cushion the higher cost of living Partners (p. 6). United States: Trade Policies Re• main Sensitive Seelfing Steady Grain Production A Qualitative Escalation in the Superpower Arms Race 15 Despite an estimated reduction in China's grain output for Ten Major Changes in China's Study 1985, the nation's total agricultural output value is expected of Economics 17 to remain steady, with peasants' average incomes showing mod• China's Fish Farming Jumps Up• est increases due to the cultivation of more cash crops and stream 21 the overall development of the rural economy. The current Tianjin Has Something for Everyone 24 tendency to neglect grain production, however, must be check• FROM THE CHINESE PRESS 26-27 ed, and measures must be taken to ensure the steady develop• BUSINESS & TRADE 28-29 ment of China's grain production (p. 4). CULTURE & SCIENCE 30-31 China's Fish Farming Jumps Upstream BOOKS 32-33 China has been able to supply two more kilogrammes of SPORTS 34 fish to each person this year. This improvement can be at• COVER: Fishermen hauling in a con• siderable catch ot the XInanjiang Re• tributed to the adjustment of fishing policies, the reform of servoir in Zhejiang Province. China's economic structure, and the scientific methods of fish Photo by Shoe Shuchang farming (p. 21).

Published every AAonday by Distributed by China International Book SubtCTipHen prices (1 year): Troding Corporrtlon BtlJING REVIEW (GUOJI SHUDIAN), Australia A.$ 22.00 USA VSSZm 24 Boiwanihoono Rood, Beijing P.O. Box 399. Beijing, China New Zealand... NZ.$30.00 UK £12.00 Jhe People's Republic of Chino Canada Can. $2t00 NOTES FROM THE EDITORS No Relaxation in Grain Production ing poorer than those from indus• capita amount of grain in by WANG DACHENG trial production and cash crop cul• China has reached 400 kg. The (Economic Editor) tivation. problem of feeding the country's 1 It is estimated that China's total In recent years, a responsibility billion people has been basically grain output this year will be some• system has been adopted in the solved, which is by any standard what les's than its all-time high of countryside in which remuneration an amazing achievement. 407.3 million tons reached last The enormous increase in grain year, making the 1985 harvest the production has paved the way for country's second largest. Because a more diversified, balanced and of the planting of more cash crops vigorous rural economy. It has and the growth of rural industry, Although the problem of also contributed to the country's the nation's total agricultural out• feeding 1 billion people overall economic development as put value has remained steady, al• well as political stability and unity. lowing the peasants' ayerage in• has been basically solved, come to increase to some degree. Efforts in improving grain pro• The sizable harvests in the last China's level of grain duction, however, still should not few years have enabled both the consumption is still very be slackened. The Chinese peo• state and the peasants to store re• ple's consumption level is still very serves. As the reduced output this low compared with that of low compared with that of the de• year will not affect the balance be• the developed countries. veloped countries. With the de• tween supply and demand, grain velopment of the foodstuff industry prices have remained stable. The increase of population and animal husbandry, as well as The drop in grain output can be at the rate of 10 million with changes in people's diet, the attributed to three main factors. every year and the demand for grain is expected to in• First, the acreage sown to grain has crease. Furthermore, some areas been reduced. According to in• expansion of food stuff in China are developing more formation collected from 11 prov• industry and animal rapidly than others. The current inces, the reduced area accounts per-capita amount of grain consum• for more than half of the reduction husbandry call for ed in 16 provinces and autonomous in output. When China had a num• continued efforts in grain regions is lower than the national ber of bumper harvests several average. Peasants in a few areas years running and when its grain production. are still leading a difficult life. reserves had been significantly in• Moreover, China's population is creased, it was necessary for China expected to increase by about 10 to reduce grain growing areas to million every year for the next few make room for more cash crops. has been tied to output, agricultur• years, putting an added burden on The reduction this year, however, al taxes have been reduced or ex• grain reserves and production. did seem to be too large. empted, and the state monopoly on It is unrealistic for a large coun• Second, serious natural disast• grain purchase has been replaced try like China to rely on imports ers also adversely affected by purchases according to contracts to solve the country's food prob• production levels. The grain and the market. These policies, lems. . In addition, China has a output in the three northeast China designed to support and boost pro• limited amount of cultivated land provinces alone was reduced by 10 duction, have stimulated the peas• and there is not much cultivatable million tons as a result of serious ants' interest in grain growing. In land that can be turned to good ac• summer flooding. And third, the 1984, China's total grain output count. For all these reasons, the peasants' enthusiasm for grain pro• went up more than 100 million steady development of grain pro• duction was dampened by an un• tons over that of 1978, an average duction is a basic state policy. favourable price system that made annual increase of 5 percent. At economic returns from grain grow• present, the average annual per- It is estimated that the country's

4 Beijing Review, No. 49 LETTERS

Enhancing Sino-US their personal interests to this Relations goal" (Beijing Review, August 19, 1985). I enjoyed reading the article But it is sad to say that the pres• "Sino-US Relations: Opportunities ent trend now existing in our and Potential Crisis" (Beijing country is contrary to what it Review, No. 41, October 14, 1985). should be. Instead of making sac• As an economist and president of rifices for the benefit of the com• ADA Digital Systems, Inc., I can total grain output will reach 450 mon people and our country, many only envision opportunities ahead, million tons by 1990 and 500 mil• young graduates and well-trained because any crisis would be too lion tons by the year 2000. professionals are seeking greener costly for the United States. pastures in other lands in hopes of Currently, some cadres and peas• fulfilling their selfish interests and ants emphasize the importance of The future economic relation• of becoming rich, no matter what rural industries at the expense of ship can be healthy and mutually might happen to the socio-eco• grain production. This tendency, rewarding. To enhance the rela• nomic and political situations in however, has not gone unnoticed tionship and improve the abil• their country, and despite the fact by the government. Chinese ity of both nations to meet shared that such a "brain drain" is sure leaders have repeatedly stressed global concerns, I have to stress to have a detrimental effect on that the problem of feeding and the positive scenario for the best their country. clothing a population as massive interests of the American and Chi• nese peoples. The US-China eco• as China's is not only a serious Samuel D. Cabe nomic relationship is of substan• economic problem, but also an Marawi, The Philippines enormous political one as well. tial benefit to both countries by Without enough grain, there would stimulating competition, expanding be no political stability. Ichoices, adding to 'available re*^ Comments on Transport sources (human and material) in China will continue to work for each country, and increasing over• I learned very much from your a diversified rural economy while all economic efficiency. article "Developing Road and paying adequate attention to grain River Shipping." According to the production. While readjusting The China market is open and article, China's Special Economic crop composition, attention will be investment opportunities are avail• Zones should put more stress on paid to correctly handling the re• able and guaranteed by the Over• exchanging goods with other re• lations between grain production seas Private Investment Corpora• gions in China, while also import• and other crops in line with local tion. Americans need to improve ing foreign products and technol• conditions. It is necessary to main- our efforts to gain access to the ogy. In addition, the various areas tarn enough amount of areas for China market. As to Taiwan, it is in China should also improve the grain crops, and popularize agro- a province of China. I am sure transportation of their local prod• techniques to raise per-unit yield. that Beijing Review readers should ucts. Efforts will be continued to im• know the reality of Sino-US rela• prove farmland irrigation and re• tions. I now appreciate the Chinese duce losses incurred from natural government's efforts at trying to disasters. The specialized grain Francis Shieh solve this dilemma. production households should be Maryland, USA helped in various ways so that they Japan's land transportation is might expand production and raise Avoiding a "Brain Drain" over-developed. Furthermore, some labour productivity, thereby im• state-owned railways are being In your article "Hu Calls on proving economic returns. These inadvertently transferred to the pri• Youth to Make Sacrifices," Party include readjusting prices in order vate sector. The situations in the General Secretary Hu Yaobang is to encourage better quality in two countries reflect their different absolutely right when he urges the grain production. policies. youth, particularly intellectuals, to All these measures are meant to "devote themselves to their coun• Nobuhiko Shimizu ensure the steady development of try, its people..., and subordinate Hokkaido, Japan grain production.

December 9, 1985 5 FVFNT?? AND TRENDS

Price Reform: 6 Months Later

A major price reform is sweep• amounts of red ink, the result of supplies to bring the soaring ing across China's nonstaple food a system of over-subsidizing in market prices down. market. By June 1, uniform price which the state sold pork and The country's unwieldy, though controls on meat, poultry, eggs and other ndnstaple foods at prices improving, economic system also fish had been lifted in 35 major lower than those at which they compounded the problem. In cities to make way for prices that were purchased from the pro• Heilongjiang Province, for exam• fluctuated with market supply and ducers. ple, before a 100-kg pig becomes demand. In the meantime, city The reform has sent food prices meat at consumers' dinner tables, residents have been issued monthly up, sometimes to alarming de• it changes hands five times — subsidies to offset possible price grees. In Beijing, meat has in• first from the local pig collector hikes. (For details, see Beijing creased 30 percent. Well-marbled to the county distributing agency, Review, issue No. 20, 1985). cuts of pork sell for 3.8 yuan per then on to the slaughterhouse be• The changes made in food kg, a hike compared to the pre• fore going to the city grocery prices are but one of three major vious price of 2.52 yuan. Vege• company and retail stores. By the price-reform measures considered table prices soared as well, and time it reached the consumers its the key to the country's ongoing are not expected to settle at rea• price has gone up by 90 yuan, an economic reform. sonable levels for some time. expense covered by the con• sumers. The other two measures in• Higher prices have brought high• volve readjusting grain purchase er costs of living. According to a The free market has also open• prices aimed at promoting rea• report hiade by Cheng Zhiping, ed the door to illegal rnoney-mak- sonable agricultural patterns, director of the State Price Ad• ing schemes. Many stores have and increasing short-distance rail• ministration, at last month's 13th been known to mix fat into lean way transportation charges in or• Session of the Sixth National Peo• meat and sell the combination at der to shift some of the overflow ple's Congress Standing Commit• 100-percent lean pork prices. passenger and cargo transportation tee, China's total retail price in• These problems have stirred burden to highways and water• dex rose by 5.6 percent in the much discontent — and a fair ways. first three months of this year and amount of scepticism among con• 8.8 percent in the second over The reform's main goal is to sumers about the wisdom of the those of the corresponding periods facilitate commodity flow to pave price reform. On the whole, how• in 1984. way for expanded production and ever, the public seems to favour a better livelihood for the people. In May, when price controls on the changes, since at least for this meat and vegetable prices were year, the price reform has gotten Pork, the chief component of first lifted, the retail price index off to a good start. In the pro• the Chinese diet, has been the rose by 9.3 percent point, which cess though prices of meat and inevitable focus of the food is an all-time high. It was not until vegetables have gone up, other es• market price reform. The state the July-September period that tTie sentials, such as grain, edible oils, has abolished its mandatory pur• cloth and most consumer goods chase quotas for pork, and pork figure took a downturn because of remain stable. And the market is producers now sign contracts intervention by state commercial thriving. According to statistics, with the state for the amount of operations. in the first six months of 1985, pork they want to sell at prices The initial runaway price in• the volume of business on both that are no longer state-fixed but creases can largely be attributed the rural and urban markets to• negotiable between buyers and to inadequate preparations. When talled 3.339 billion yuan, a 65.5 sellers. This move has helped local free markets were suddenly percent rise over that of the same boost farmers' enthusiasm for glutted with vegetables, holding period of the previous year. raising pigs and other animals, the whole city market in their and has enabled state foodstuff sway, state grocery companies Farmers, delighted to see the companies to erase their huge simply did not know where to get prices of their produce settle at

6 Beijing Review, No. 49 sensible levels, have been according to Cheng, strict During their talks, both Premier highly enthused by the sud• measures will be taken to Zhao Ziyang and Prime Minister den flow of cash • into their control the price index for retail Mahathir stressed the importance pockets and have since expanded goods, so that living standards for of good international relations be• production to meet the snowball• the majority of the people will tween nations of divergent social ing market demands. In Cheng• not be affected by the market and political backgrounds. The du, truck farmers expanded their changes. Measures will also be difference in their systems is not operations and supplied the city taken to keep price increases at a important. What is important, with 115 million kg of vegetables pace lower than increases in they said, is whether they observe from January to August, averag• family incomes, and to gradually the Five Principles of Peaceful ing a delivery of half a kilogramme improve the people's livelihood Coexistence. Zhao noted that bilat• each day for every resident. This on the basis of expanding produc• eral economic and trade co-opera• move alone augmented farmers' in• tion. tion would gain further develop• comes by 4 million yuan. ment if China and Malaysia make efforts based on equality, mutual For urban consumers, the benefit and mutual help to make emergence of market places full Sino-Malaysian up for each other's needs. There of vegetables, many of them fresh is still much room for expansion with morning dew, is indeed a Relations Develop of bilateral relations, Zhao said. dream, come true. "In the past, As a sign of improved bilateral when you went grocery shopping, Mahathir said he has gained a relations, a 200-member Malaysian you often came home either with better understanding of China's delegation, headed by Prime Mini• an empty basket or food that was policies and recognizes the "strong ster Mahathir Mohammed, visited too withered or too old to eat," desire" of Chinese leaders to China November 20-28. The dele• said a Beijing timber mill worker. develop relations with Malaysia. gation, which was one of the "Now shopping is so much more He said the fact that he had largest China has received in re• convenient, and the vegetables brought along so many Malaysian cent years, included five cabinet are fresh and tender. I'm happy business people attested to the members and more than 100 Ma• even though I'm paying more." sincerity of Malaysia's wish to ex• laysian business people. pand trade and economic co• A large portion of the increased "The visit of such a large dele• operation with China. food bill has been offset by gov• gation signifies the progress made ernment-granted wage rises, as The two prime ministers dis• in promoting relations between well as by the monthly price sub• cussed various possibilities for ex• our countries," said Chinese lead• sidies for city residents. Since panding trade and economic co• er Deng Xiaoping at a meeting last January, middle and primary operation between their coun^ with Mahathir on November 22. school teachers have received sal• tries. Both said it was important "Because we are neighbours, it is ary increases, while the workers to develop direct trade between important that we promote sound and government employees have the two countries, and to increase relations between our nations," had their wages increased by an the trade volume. They also Deng said. Both being develop• average of 20 yuan since last July. agreed that barter trade was an ing countries, China and Ma• According to Cheng, workers' important way to increase trade laysia should work for mutual wages this year have averaged a between developing countries. understanding and co-operation. 17 percent increase over that of If developing countries strengthen• During the Prime Minister's last year, while the rise in peas• ed co-operation and trade among Beijing stay, the two governments ants' net income is expected to themselves, they could form the; signed an agreement on the avoid• top 10 percent. world's single largest market, ance of double taxation and on the The guideline for the price re• Deng said. prevention of tax evasion. The form is to "make initially incre• agreement provides that China Third world countries, with mental and prudent steps in or• and Malaysia will avoid double vast land and human resources, der to ensure success." The State taxation on profits, investment re• should help each other and co• Council has accordingly announc• turns and income from labour ser• operate in a variety of ways, Deng ed that in order to avoid upset• vice. Both sides also signed an stressed. "Such co-operation," he ting the relative calm in the mar• agreement promoting and develop• saidr"could improve the economic ket, no major moves in price re• ing direct trade between China growth in each country, and could form are planned for 1986. and Malaysia. also help overcome individual dif• What is more important. ficulties," Deng said. Responding to the question if

December 9, 1985 7 he had discussed with the Chinese In a keynote speech at the leaders the issue of the Commu• forum, veteran Communist Party nist Party of Malaysia, Mahathir leader, Bo Yibo, urged students to American Writers said, "We decided that we would carry on the December 9th tradi• talk about areas in which we tion by standing in the forefront Dearly Remembered could reach agreement, rather than of the country's drive for moderni• those about which we hold dif• zation. He said unity and stability A handsome donation by the ferent opinions." The Prime Mini• were the fundamental guarantees late Marshal Zhu De to the state ster added, "We concentrated for building civilization, premoting was recently allotted to the Strong- more on trade relations than politi• economic reforms and implement• Smedley-Snow Society of China, cal problems. We feel we can get ing China's open policy. as special funds for the study, around those minor problems." Yuan Baohua, president of the translation and publication of Agnes Smedley's works. Mahathir described his talk Students' Union of Beijing Univer• with China's four top leaders, in• sity in 1935 and now president of The 116,000-yuan donation was cluding Chinese Chairman Li the China People's University, the total of Smedley's royalties Xiannian and Party General Sec• compared the domestic situation from her books China's Red Army retary Hu Yaobang, as pleasant of today with that of 1935, and Marches and China Fights Back. and successful. urged today's university students The royalties were presented to to shoulder the historical duties Zhu De according to her will. Mahathir and his entourage also society has placed on them. The donation was announced at visited Shanghai, Hangzhou, a gathering held on Nov. 23 in the Xian, Guangzhou and Shenzhen Exchanging their views with capital to commemorate the birth• before returning home. the Party veterans, the students said that the forum had brought days of the three noted American home the concern and expectations journalists and writers who dedi• of the older generation and offer• cated much of their life work to ed aft opportunity for making a China. It was the 100th birthday comprehensive appraisal of the of Anna Louise Strong, the 93rd Students Spurred Party policies and tasks facing of Agnes Smedley and the 80th today's youth. of Edgar Snow. To Renew Spirit The meeting was attended by "We should not just comment 600 people, including General on the reforms like outsiders," Secretary Hu Yaobang and Tracy Chinese students were called on said Zhang Qin, who is studying Strong, grandnephew of Anna to remember and renew China's for a doctoral degree in nuclear Louise Strong, and Kang Keqing, revolutionary tradition at a recent physics at Qinghua University. widow of Zhu De and Vice-Chair• Beijing forum in commemoration "We should throw ourselves into man of the Chinese People's Politi• of the 50th anniversary of the the struggle and put forward con• cal Consultative Conference Na• December 9 Movement. sidered and constructive opinions." tional Committee. Zhang's coUegemate, Zhuang The forum was attended by Qian, president of Qinghua Uni• Kang described the gathering as some 80 Party veterans and 120 versity's postgraduate association, an expression of China's "deep students from 16 universities. All also said that while problems feelings and high respects for all the veterans had personally taken would arise during the reform, they foreign friends who have helped us part in the 1935 movement, when could only be solved under the in the difficult years." Chinese students, led by the leadership of the Party. Complain• Communist Party, took to the ing would not do any good, he She said that Strong, Smedley streets in Beijing to protest against said. and Snow, who came to work in Japanese aggression of China. China at a time when the Chinese Vice-Premier Li Peng, who is people were fighting for emancipa• The five-day forum, which also a member of the Party Cen• tion, made valuable contributions ended on November 27, is said to tral Cominittee's Political Bureau, to the promotion of world under• have strengthened the link be• saw this direct dialogue between standing of the Chinese revolution, tween the two generations, who leaders and students as a reward• and to the enhancement of friend• ended the forum finding much ing experience. In his speech, he ship between the Chinese and the common ground in building up a hoped this could continue as an people of the United States and modernized socialist China. ongoing dialogue. other parts of the world.

8 Beijing Review, No. 49 News in Brief

Several hundred construc• tion projects throughout China have been closed down in a recent nationwide quality inspection. Nearly 3,000 6r 56.000 projects al• ready completed or still under construction were found potentially dangerous, due to faulty design or work• manship. The inipcction team ordered a stoppage of work at 721 projects. An• other 207 will be torn down and rebuilt, and 1.516 need substantial repairs.

Twenty-three defendants charged with economic crimes, 21 of whom were government cadres, were tried recently in Beijing." They were charged with taking bribes totalling more than 256,000 yuan. Wang Lou, former Party secretary Sevefbl hundred Americon and Chinese participants listen to speeches dedi of Beijing's Miyun County. catecfto the work of the three American journalists. Timber Company, received "Their noble spirit of interna• He urged Chinese youth to take a 15-ycar sentence on charges tionalist devotion and their sincere the path the three American friends of accepting bribes totalling friendship towards the Chinese had chosen, and emulate them in more than 20,000 yuan. people will be enshrined in our learning and conduct in life. hearts," she said. Zhou Erfu, vice-president of the In his speech, Huang Hua, pres• Chinese People's Association for China's coal output from ident of the SSS Society of China, Friendship With Foreign Countries, local mines is expected to be Retailed the life of Snow and his read a speech by Lu Dingyi, mem• more than 440 million tons contributions to the Chinese rev• ber of the Standing Committee of by the end of this year, olution. the Central Advisory Commission making up half of the na• of the Chinese Communist Party. tion's total. The country's "We can learn a great deal from local coal mines include Edgar Snow," Huang said. "Today, Lu recalled the time when he more than 2,500 mines run we should particularly learn from met Anna Louise Strong in Yanan, by local governments, more his strong will power, with which where they were received by Chair• than 50,000 owned by town• he exerted himself to seek truth, to man Mao. ships and villages, and more promote the understanding and than 10,000 mines set up by friendship between the Chinese and "The three of us sat around a self-employed miners. American peoples and among the table outside the cave," Lu said. peoples of the world, and to work "During his talk with her, Comrade indefatigably for the well-being of Mao Zedong analysed the Chinese mankind and for world peace." revolution and the world situation

December 9, 1985 9 China & the World Hu QUI Visits West Germany The new-found friendship between the Chinese Com• munist Party and the Ger• man Social Democratic Party (SPD) is attributable to their common interests and similar views on many major inter• national issues, said Hu Qili, member of the CPC Central Committee's Political Bureau and Secretariat, in Bonn be• fore returning home Novem• ber 28. During his week-long visit Shanhaiguan Opens Electric Switchyard to the I-ederaJ Republic of Germany, Hu exchanged An electric switchyard went into operation November 20 one year views with SPU leaders on ahead of schedule at the Shanhaiguan Railyway Station. A key construc• tion project in China, the yard has enabled the railway station at the both domestic andinterna- end of the Beijing-Shanhaiguan Railway to double its passenger-train (ional issues. handling capacity and increase its freight-train handling capacity by 40 percent. EC-China Business W6ek A 180-membcr Chinese delegation headed by State Councillor Zhang Jinfu. in• as a whole. It was during this talk a daughter of the oppressed and cluding representatives of that he made the famous statement, exploited working people. central and provincial trade 'All reactionaries are paper tigers.' officials and technicians, ar• I still remember her ecstasy on "The joys, the sufferings, the rived at Brussels December 2 hearing these words. And ever anger, the hopes of the Chinese and to attend the EC-China since, the name of Anna Louise other peoples under the heel of Business Week. The five-day Strong has been closely associated national and social oppression were meeting is set to discuss Chi• with this well-known saying by not just sympathetically felt but nese markets, business tech• Comrade Mao Zedong." were her own," Epstein said. niques, law and foreign ex• Israel Epstein, member of the He said no image of Smedley was change eontrol. Standing Committee of the CPPCC more typical than that of her strid• China jBxpands International National Committee, said in his ing in the ranks of the rifle-should• Railway Transport speech about Agnes Smedley that ering soldiers with her typewriter China shipped 10.47 mil• in her heart a revolutionary flame strapped to her back. had burned from her childhood as lion tons of import and ex• Rewi Alley, a New Zealand wri• port goods this year through ter, said in a message sent to the its international rail service, meeting that Strong, Smedley and more than twice as much as Snow became commemorable be• in 1981, The freight vo• cause they had a spirit that carried lume in. 1984 exceeded 8 them through all they set out to million tons, a 61.8 percent do — with that spirit the modern• increase over 1981. During ization of China will be a success. the Seventh Five-Year Plan .period (1986-90). the inter• To commemorate the three national rail freight volume American friends, an exhibition will expand annually by an was opened in the Museum of the average 10-15 percent. Chinese Revolution in Beijing.

10 Beijing Review. No. 49 INTERNATIONAL

international economic order that North-South does so much to harm the inter• ests of the developing countries.

Co-operation Benefits Both Sides The world today is a unit con• sisting of both developed and de• veloping countries. The two Political dialogue and economic exchange between the groups depend on dne another. developing countries and the developed ones will Closer links between them would benefit both sides in the end. not only benefit the South, but would also bring prosperity to the North. In their efforts to keep the Caribbean, Pacific and Africa, by CHEN TEAN up with economic development, the EC has signed three economic the developed countries are con• treaties (Lome Conventions). Its fronted with raw material short• OREIGN ministers from the co-operation agreements also go ages, commodity and investment European Community (EC), F far into the Mediterranean and saturation, and repetitive rises in the Central American Common Latin American countries, the As• the trade wars. Market, and the Contadora sociation of Southeast Asian Na• Group, ended their two-day tions and other developing coun• Developed countries can no second ministerial conference on tries. These mutually beneficial longer turn to their usual method November 12, issuing two politic• EC policies have achieved effec• of shifting the crisis to developing al and economic communiques. tive results and are expected to countries, or squeezing them for The first document declared the yield more. readiness of the 21 participating their own interests, for this tactic countries to give support to solv• has proven destructive. Accord• A problem of critical impor• ing all Central American disputes ing to statistics, the exports from tance that has caught worldwide and to ending instability in the developed countries would be cut attention, precarious North-South region. by 3 percent if the developing relations were put on the interna• countries reduced their unports tional agenda as early as 1974, The 10 EC member countries, by 10 percent. It has finally when a Declaration on the Es• and Spain and Portugal, will dawned on some world leaders tablishment of a New Internation• provide priority aid to Central that the best way to maintain a al Economic Order and the Pro• America's regional development, comfortable status for their own gramme of Action were endorsed according to the economic com• people is by helping the less for• at the Sixth Special Session of munique. This is the first time tunate survive. the UN General Assembly. How• that political and economic co• ever, 11 years have passed with• operations between the EC and Currently, improved North- out any major breakthroughs in the Central American Community South economic relations and the lagging relations. Despite are systemized, giving hopeful even enforced co-operation seems dialogues and other hopeful signs, signs for better relations between to be the most effective way to the North and South. improved North-South relations face strong opposition from manjj get out from underneath the eco• nomic embarrassment. With its As the world's largest econom• developed nations. Some have paid ic and trade group among the only lip service to the enterprise. recent conference with Central developed countries, the EC has A second group are sceptical America, the EC has demonstrat• been active in pushing for North- about the possibilities of norma• ed that developed countries are South dialogue. The EC has paid lized relations, and do not believe capable of enhancing better great attention to developing good that such an improved relation• North-South relations, based on relations with the third world ship will benefit them. The third mutual benefit and equality. It's countries, enabling itself to be• group, which looks down on third high time that the door of co• come the third world's largest world countries outright, are deaf operation between the Nordi and trade partner. With 65 nations in to requests to eliminate the old South is opened.

December 9, 1985 11 were three sticky issues that called for further discussion: military manoeuvres, arms reduction and Central America supervision and compliance of the treaty. The nine Latin American Contadora Persists in Peace Pursuit nations held another meeting last October, but failed to make any The most recent draft of a peace treaty in Central America progress. So the meeting set the goes unsigned as disagreements over military and se• date for completion of the talks on curity issues continue to surface. November 20. The November 19-21 meeting duras is ready to sit at the nego• in Panama did result in an agree• by Yl MING tiating table any time it is called. ment on the supervision and com• "Beijing Review" News Analyst pliance of the peace treaty, but the HE mediation for a Central Therefore, it is obvious that the other two crucial problems remain Central American countries sup• unresolved. T American peace treaty init• port the peace talks. They are iated by the Contadora Group of willing to continue the talks until On the question of military Panama, Colombia, Venezuela they finally reach an agreement manoeuvres, Nicaraguan represen• and Mexico, has run into difficul• under the sponsorship of the Con• tative advocated that once the ties since representatives of con• tadora Group. peace treaty was signed, all the cerned parties were not able to military manoeuvres in Central come to an agreement on security Since its inception in January America should be prohibited, yet issues at their recent meeting in 1983, the Contadora Group has Honduras and El Salvador dis• Panama. The four group mem• held as many as 20 meetings to agreed. On the arms reduction ques• bers and five Central American design peace in the region. It has tion, Nicaragua held that, con• countries <—' Honduras, El Salva• contributed much to the defusion fronting the US military threat, its dor, Guatemala, Costa Rica and of tensions there, and has laid the defence should be stronger than Nicaragua — were to have com• groundwork for an overall solu• other countries in the region. But pleted a draft of the treaty by the tion. So the group has received Honduras and El Salvador charg• second day of the meeting, held worldwide support, including the ed that Nicaragua had maintained on November 19-21. United Nations, nations in the non- an excessive army and military aligned movement, the Group of equipment. Faced with this stalemate, some 77 and the European Economic observers believe that the process Community. Last July, four South In the revised draft peace trea• of negotiation should not continue American countries — Peru, Ar• ty, there are provisions about the indefinitely, while others contend gentina, Brazil and Uruguay — military manoeuvres. It also stipu• the Cpntadora Group is not capa• formed the Lima Group (later lates that from the date the treaty ble of settling the Central Ameri• joined by the Dominican Re• is signed, no country may buy new can crisis. public), which has structured a weapons, increase troops, and each But, as the Venezuelan repre• common front of Latin American country must submit for supervi• sentative to the meeting put it, no countries to back the Contadora sion an inventory of weapons, ultimatum should be delivered to Group's efforts to find a peaceful troop strength and military equip• the peace talks. The El Salvadoran solution by the Latin Americans ment. representative said because the ac• themselves. Nicaragua had consented to the cord was so important no time In September 1984, a peace original peace treaty draft, but has limit should be imposed on the treaty was drafted by the group declared that unless the United talks. and set to be signed the following States gave up its support of Nica• . The Nicaraguan representative October by the countries con• raguan anti-government armed believed the tasks of the group cerned. Honduras, El Salvador and forces, it would not sign the cur• were numerous, they should not be Costa Rica submitted amendments rent draft. Nicaraguan President confined to simply drafting a trea• to the draft, however, and it was Daniel Ortega said the revised ty. And the representative from not until after a year of consulta• treaty had provisions that would Honduras expressed his country's tion that a revised draft was jeopardize Nicaragua's self-defence willingness to hold talks with adopted at the September 1985 against US intrusion. other countries in the region. meeting of the nine Latin Ameri• "The minimum requirement for And if necessary, he said, Hon• can countries. Nevertheless, there reaching accords of supervision. 12 Beijing Review, No. 49 inspection and reduction of arma• tween the two countries. defence minister, was involved in ments is that the United States a palace shoot-out last summer fol• stop its aggression against Nicara• According to reports from the lowing a dispute over the Afghan gua," Ortega declared. US press, a confidential document army's role in fighting resistance [n view of these, the Contadova revealed that the United States forces. Group has appealed to the United would rather have seen the peace It is also reported that several States and Nicaragua to resume mediation process at a standstill, police and security officials were dialogues between the two coun• than to have an unfavorable agree• promoted in the shakeup. General tries. Washington and Managua ment signed. It seems, therefore, Najib Ullah, chief of the Afghan conducted nine rounds of talks that the Contadora Group's appeal secret police, was appointed secre• from June 1984 to January 1985, places its hopes, first of all, on co• tary of the central committee and which helped to ease tension be- operation from Washington. party spokesman. His deputy, Ghulam Farooq Yaqoob, head of the interior ministry's special pol• Afghanistan ice, was promoted to full member of the Politburo. Defence Minister Nazar Mohammed and Nationali• Major Shakeup in Karmal's Party ties Minister SuHeman Laeq also became full members of the Polit• Although the recent reshuffle in the People's Democrat• buro. ic Party and the intensification of military campaigns The promotions, observers be• in Afghanistan are aimed at prolonging Karmal's rule, lieve, indicate that the Karmal re• neither is expected to be effective. gime is trying to tighten its reins which have forced Karmal to take on the power in Kabul by beefing by YA TAI "disciplinary measures" to streng• up its internal security institutions. then his position in the party. Ac• They also said the reshuffle HE ejection of three senior cording to some accounts, Panjshe- came in the midst of the winter of• Tmembers from the Politburo of ri has led a group within the party fensive of the Soviet troops against the People's Democratic Party of opposed to Karmal. Though, osten• the Afghan resistance forces, in Afghanistan has been regarded by sibly, Panjsheri was removed from which the Soviets mobilized 15,000 many as the most spectacular the Politburo on "health grounds," troops and deployed numerous shakeup in Babrak Karmal's ruling his role in opposing Karmal is a modern weapons for the action. government since Soviet troops in• more likely factor contributing to Both the reshuffle and the military vaded the country nearly six years his removal. actions were aimed at prolonging ago. Karmal's rule, but neither is ex• In the reshuffle carried out on According to Western diplomats, pected to be effective in reaching November 21 at the party's 16th Qadir, who was earlier sacked as that goal. plenum, former Afghan Defence Minister, Abdul Qadir, and form• er Foreign Secretary, Ismail Da• Australia nish, were dismissed from the Po• litburo, and Ghulam Dastagir Panj- Sandwiched Between Partners sheri, an important party leader, was relieved of his title as a full Because differences of opinion between the United Politburo member. States and New Zealand — two-thirds of the Australia- All three had played important New Zealand-US Security Pact (ANZUS) — have crop• roles in setting up the Karmal re• ped up recently, the pact's third leg, Australia, is caught gime. Qadir personally drove a in the middle and uncertain about which way to lean. tank into the presidential palace of Sardar Mohammed Daoud during by XIN PING his nuclear prohibition legislation the 1978 coup that paved the way will be introduced in the New Zea• for the installation of the Soviet- USTRALIA has been cautious land's parliament this month. backed regime in Kabul. Observers A in taking a stand in the US- The first hint of a falling out have viewed the administrative New Zealand imbroglio sparked between the United States and shakeup as a sign of divisions in by New Zealand Prime Minister New Zealand came last February the People's Democratic Party, David Lange's announcement that when Lange banned American December 9, 1985 13 warships from New Zealand ports. Zealand legislation, nor has he home and abroad. Australia's rep• Lange had earlier announced that agreed to join the United States resentative to the United Nations only verifiably non-nuclear ships in pressuring New Zealand against recently sponsored an adopted re• could use his country's harbours. adopting the legislation. solution approving a comprehen• Because Washington refused to sive nuclear test ban treaty. "There is a need for us to see state whether its ships were outfit• the nature of the legislation be• Such a move might be consi• ted with nuclear arms, Lange pro• fore making any assessments or dered a tilt in the direction of New hibited them from entry. In what comments." Hayden said on Zealand's squarely anti-nuclear has been regarded as a US res• November 25. corner. The United States, how• ponse to Lange's move, visiting US ever, is one of Australia's longest Assistant Secretary of State Allan However, in the face of the running allies, and such a rebuff Holmes, special US envoy sent to glowing anti-nuclear movement at seems unlikely. Australia to brief that government on the Geneva summit, said he would not offer New Zealand the United States same privilege of a briefing. In his response to Lange's re• Trade Policies Remain Sensitive quest for verification of which ships were nuclear-armed and Although the US government has adopted some meas• which were not. Holmes said: "We ures aimed at easing the enormity of the US trade def• feel strongly that we cannot pro• ceed as an ally with two navies." icit, the problem remains a considerable headache for "We have one navy with world• the Reagan administration. wide responsibilities," he said. "Ail our other allies around the by ZHANG LIANG The bill is a compromise meas• world recognize the importance of ure that reflects both the growing our ability to continue to operate NOTHER trade bill aimed at Congressional call for trade sanc• on a worldwide basis," he said. A controlling inexpensive im• tions and the hesitancy Of others, ports to the United States was pass• like Reagan, to submit to protec• The United States earlier also ed out of the US Senate on Novem• tionism. And it was proposed as rejected the visit of a New Zea• ber 20. The measure was billed a way to avoid an embarrassing land envoy sent to deHver an ad• as "constructive" and as an out• showdown between the White vance copy of the nuclear prohibi• growth of bipartisan support for a House and the Congress over tion legislation to Washington, "sensible trade policy, in contrast the trade issue. The US House saying it was already aware of the with other protectionist bills de• of Representatives and the Sen• general contents of the legislation. signed for partisan political gain." ate each has passed a bill re• stricting textile and apparel import, In order to ease the tension be• According to its more than 30 and they will soon hold a joint ses• tween his government and the Republican and Democratic Senate sion to work on the two versions United States, Lange on Novem• sponsors, including Senate Majority of the bill for final Congressional ber 25 disclosed that a revision had Leader Robert Dole, the bill, call• approval. But Reagan has said he been made to the nuclear prohibi• ed a trade-law reform bill, intends would veto the bill if it is passed tion bill that would remove require• to promote greater use of US reta• by the Congress. ments for statutory committees liation as a means of prompting to approve ship visits. The chang• other nations to alter restrictive The textile bill, however, is only es, Lange said, should remove trade practices. The measure also one of more than 300 measures Washington and London's objec• establishes a new definition of aimed at blocking imports. At tions to the legislation. what is considered "dumping," or present, protectionism is causing a clamour in Congress, with many Australia, now sandwiched be• the excessively inexpensive sale of members having tailed for a limit tween its two ANZUS partners, has goods imported from nations with to the amount of imports by im• so far avoided siding with either non-market economies, and im• posing import tariffs. Even among the United States or New Zealand. proves legal protection for US pa• those who have traditionally stood Australian Foreign Minister Bill tents, trademarks and copyrights for free trade, many have become Hayden has reportedly neither against international piracy, while converts to the notion of protecting agreed to join Lange in criticizing expanding patent law protection US industries by blocking imports. the US government's refusal to ac• for agricultural, chemical and cept the advance copy of the New manufacturing processes. (Continued on p. 53.)

14 Beijing Review, No. 49 A Qualitative Escalation in the Superpower Arms Race With the formulation of new space equipment, many have been by SA BENWANG outer space weapon projects, both spy satellites (for photo or elec• the United States and the Soviet tronic reconnaissance), early warn• ONCERNED people around Union have started developing ing satellites (for nuclear attack C the world are closely follow• their outer space military power symptom surveillance), communi• ing the development of space and have initiated a large-scale cation satellites (for strategic and weapons initiatives by the United scrambling for the occupation of tactical command and communica• States and the Soviet Union, the "high frontier" — outer space. tion), geoditic satellites (for milit• repeatedly demanding that the two In their view, those who com• ary targets survey) and navigation superpowers stop such competi• mand outer space will exercise satellites (for pinpointing location tion. global control. Because of the of nuclear submarines, warships In recent years, the United enormity of such a prospect, space and aircraft). Until now, the use States and the Soviet Union have arms competition has become the of these satellites has been con• each launched programmes for the fined to an auxiliary battle-support development of space weapons. role. This new trend has raised the Outer space weapon systems that curtain on a new stage in the US- The US and USSR are are now being researched and Soviet arms race, marking yet scrambling for the again a qualitative escalation. This developed by the United States and is manifested in contest between occupation of the "high the Soviet Union are advanced the two to extend their military frontier." In their view, space-based strike weapons, those who command capable of attacking targets not power into outer space, charac• only in outer space, but also on terized by expansion from a outer space will control the ground, on the sea and in the battle-support role to its overall the world. militarization. Furthermore, their air. stress on improving military strength has shifted from an em• New Generation of phasis on offensive nuclear forces central issue in the arms race be• Laser Weapons to a new generation of laser direct• tween the two superpowers. The emphasis on strategic arms ed energy weapons used for both build-up has turned from the mod• offensive and defensive measures. Overall Militarization ernization of offensive nuclear The rivalry for superiority has force to developing a new genera• turned from the nuclear domain to The US-Soviet outer space com• tion of directed-energy weapons, that of outer space, and their mili• petition began early in 1957. Ac• which combine offensive and de• tary strategy has added space cording to Western press reports, fensive uses, strategic and tactical strategy to conventional and nuc• by the end of 1984, the United purposes, and frontline and auxi• lear strategies. States had launched 1,029 satellites liary battle-support systems into and space ships, and the Soviet one. Union 2,020. The space material The "High Frontier" launched by the two countries ac• Since mankind entered the During the four postwar counts for more than 94 percent nuclear age in July 1945, with the decades, the United States and the of the total. From the very begin• first explosion of an atom bomb, Soviet Union have been stepping ning, their space activities have offensive nuclear forces have up their arms race. However, had an obvious military ourpose. played the starring role in military whereas previously their rivalry About 70 percent of the satellites strength and development. The has been restricted to a contest launched by the Soviet Union and two superpowers have each deve• for the domination of land, sea the United States have either loped an offensive nuclear "triad" and air, now it is extended to directly or indirectly been used for consisting of intercontinental bal• outer space. military purposes. Of this outer listic missiles (ICBM), submarine December 9, 1985 15 launched ballistic missiles (SLBM) Having developed for the last 40 strategy, as well as conventional and strategic bombers, as the pil• years, nuclear arsenals possessed and nuclear strategies. lars of their military forces. Al• by the two superpowers have Nuclear strategy has developed though in the 1960s the two coun• reached a high level of perfection, and evolved with the improvement tries had deployed land-based anti- with both the United States and of nuclear arms. Since World ballistic missile (ABM) systems, the Soviet Union reaching a satura• War II, nuclear strategy and con• they have since either dismantled tion point in their number of ventional strategy have been the or halted further ABM deployment nuclear weapons. The power ratio point of convergency in the mili• because of their ineffectiveness in of the warheads now approaches tary strategies of the United States dealing with large-scale nuclear the theoretical realm. At least for and the Soviet Union. attack. the duration of this century, both the United States and the Soviet Now it is inevitable that the In the 1980s, the United States Union will continue their efforts development of outer space weap• and the Soviet Union resumed to improve the accuracy and dura• onry will spark transformations their research and development of bility of their nuclear arms. Both, in military strategy, operational strategic defence systems with theory, war patterns, and defence space-based laser (directed-energy) organization and establishment. In weapons. Directed-energy and fact, the U.S. Strategic Defence other high-tech systems can not Initiative itself constitutes a major only be used to destroy large revision to the nuclear strategic numbers of attacking ballistic The qualitative escalation concept of mutual assured destruc• missiles, but also bear the poten• tion (MAD), and suggests a change tial for building a new generation of the arms race in outer from a theory of "nuclear deter• of weapon systems with both of• rence" to a "war-fighting" strategy. space will certainly have a fensive and defensive capabilities. Succeeding the battlefronts of Used defensively, laser weapons profound effect on the ground, sea and air, outer space can destroy strategic ballistic mis• will become the "fourth front." siles and neutralize cruise world's strategic situation, The theory of contending for con• missiles, and can even be inte• trol of outer space, the tactics grated with anti-satellite (ASAT) first and foremost in the involved in waging war in outer and anti-bomber systems, making military realm. space and the new military force an overall defence system. Used of outer space have been designed offensively, laser weapons can and put forward. Some are cur• launch space-to-space, space-to-air rently being developed. Early in and space-to-surface attacks. Laser 1964, the Soviet Union established weapon systems are characterized •its Space Defence Command under by high speed (speed of light), the National Air Defence Force, however, have come to realize that high accuracy (almost 100 per• while the United States established neither will be able to break the cent accurate), total effectiveness its Air Force Space Command and present military balance by rely• (hard to protect against), limited Navy Space Command in 1982 and ing solely on improving nuclear side effects (no radio-activity) and 1984 respectively. In September weapons. multiple uses (for strategic, opera• 1985, the United States formally tional and tactical purposes, in Some analysts hold that both established the United Space survey, control and battle). If the United States and the Soviet Command. the problems of energy and dura• Union -now consider strategic bility can be solved, laser weapons defence a possible end to their The curtain has been raised for can be developed into the most stalemate. If either establishes an a new round in the arms race be• advanced form of weaponry since effective strategic defence system, tween the United States and the nuclear arms. and captures an overwhelming Soviet Union. Its implications "first strike" capability, it could have not yet been fully revealed get them military upper hand over and its future is difficult to pre• Race for Outer Space its counterpart. dict. However, the qualitative Control escalation of the arms race in Space Strategy outer space will certainly have a The arms race has shifted from profound effect on the world's a race for nuclear superiority to The main components of mili• strategic situation, first and fore- one for the control of outer space. tary strategy will include space mosti in the military realm. •

/6 Beijing Review, No. 49 Ten Major Changes in China's Study Of Economics Therefore, while studying the the development of the science of by MA DING problems of the socialist economy, economics and, what is worse, will HINA'S current economic Chinese economists are using the inflict heavy losses on our socialist C structural reform is a great Marxist stand, viewpoint and economic construction. experiment and is also a profound method to develop a science of In a socialist society, instead of social revolution in Chinese his• economics for building sociaUsm setting economic science in direct tory. Propelled by this deluge of in the light of China's reality. opposition to economic policy, we reforms, changes have taken place From Theoretical Explanation of must unify the two and use the in the study of economics in the Economic Policies to Scientific former as the basis for the latter. following 10 aspects: Analysis. Marxist political econ• To achieve this, we must sincerely From Critical Economics to Con• omy has a strong, distinctive class carry out the policy of "letting a nature and practicality, and it is hundred flowers blossom and a structive Economics. Marxist polit• hundred schools of thought con• ical economy faces different tasks tend," so that our economists can in different historical periods. A air their opinions and views freely century ago, when Marx wrote his In the past, Chinese and make various suggestions and monumental work Capital, he economists only contented plans for solving our economic analysed mainly the capitalist themselves with problems. This will help us lay mode of production and the cor• explaining, elaborating our present economic policies on responding relations of production, and justifying the the solid basis of the science of the relations of exchange and the economic policies in economics. relations of distribution, thereby force and seldom thought uncovering the objective laws of deeply about them, From Rejecting Contemporary economic movement governing the criticized them or analysed Western Economics to Analysing advent, growth and decline of cap• them scientifically. and Using It. By and large, bour• italism, and proving that socialism geois political economy has passed is the inevitable result of the through two stages of development clashes and contradictions between geared to serve the practice of the — classical economics and vulgar the capitalist productive forces proletariat and the broad masses economics. Contemporary Western and relations of production. of other people. Political economy, bourgeois economics is but a con• But in the 20th century, after on the whole, is also a science that tinuation of the traditional vulgar socialism has changed from a scien• correctly reflects the objective economics and is still, in essence, tific theory to reality, the main laws governing social economic vulgar and unscientific. This, task confronting Marxist political movement. In the past, Chinese however, does not mean that it economy is no longer to criticize economists only contented them• has no rational or valuable parts the old capitalist world but to fa• selves with explaining, elaborating at all. Marx, Engels and Lenin not cilitate the more strenuous his• and justifying the economic policies only critically assimilated the torical task of building a new in force and seldom thought cream of classical economics but socialist world. And the study, deeply about them, criticized also made concrete analyses of therefore, must be focused on how them or analysed them scien• each school of vulgar economics to develop the social productive tifically. Under such circum• and affirmed the rational and forces and increase the national stances, one group of economists valuable elements. wealth, how to maintain a steady after another tried to rationalize For a long period of time in the growth of the economy, and on the "great leap forward" in 1958, past, however, owing to the ultra- how to make the socialist economy the repudiation of "bourgeois left political line and traditional operate smoothly. For these ques• rights" during the "cultural rev• conservative ideas, Chinese econ• tions, no ready answers can be olution," and the rash advance in omists took a one-sided approach found in Capital or any other 1978. Experience has proved that to different economic theories. Marxist classics. this sort of practice can only stem They only stressed criticizing the December 9, 1985 17 vulgar, apologetic and reactionary nature and the level of develop• was once the weakest and most features of contemporary bourgeois ment of the productive forces in a neglected link in our study of eco• economics and neglected the fact certain historical period, it is im• nomics. Chinese economists used that it is still, in certain aspects, possible to have a full understand• to study the socialist relations of practical, reasonable and scientific. ing of that period's whole system production from only three aspects Today, in re-evaluating contem• of relations of production. Pre• — ownership, exchange and distri• porary bourgeois economics, they cisely for this reason, while study• bution — in an abstract, general are using the scientific approach ing the capitalist relations of pro• and static way. They failed to which the authors of Marxist duction, authors of Marxist classics make concrete, deep and dynamic classics adopted towards traditional never viewed them as abstract or studies of the socialist relations of vulgar economics. isolated, never brushed productive production from the angle of eco• forces aside. nomic operation mechanism. Thus In my opinion, as far as the they were unable to gain a com• different schools of contemporary Formerly, in the study of polit• prehensive, correct understanding Western economics are concerned, ical economy, our economists con• of the relations of production or to the following results of their think• centrated on the isolated, one-sided come up with effective counter- ing especially should not be ignor• examination of the relations of measures to the various problems ed: J. M. Keynes' method of macro- production to the neglect of the which arose in the course of analysis and his theory on using productive forces. This not only operation. a policy of fiscal and monetary made the productive forces an expansion to stimulate the active "abandoned baby" in the science Currently we are studying the reaction of circulation and con• of economics but also led our study specific economic operation me- sumption on production; the study of political economy into a blind channism characteristic of China's of the neo-Cambridge school on the alley. planned commodity economy (a inter-relations between income dis• combination of planning and the tribution and economic growth; In recent years, people have market mechanism), the different the theories of the comprehensive made extensive studies of the laws kinds of economic levers (price, neoclassical school, which stresses governing the economic operation taxation, credit and loans) and eco• combining the analysis of macro- of the productive forces (including nomic incentives (salary, subsidy economy with that of microecon- the law of saving labour time, the and bonus), in an effort to improve omy and emphasizes the impor• law governing the constant rise in tance of state interference in eco• labour productivity, and the law the operation of the entire national nomic activities while taking care of the proportionate development economy, as well as that of each to make use of the regulatory role of the various branches of the na• department, and to enhance the of the market mechanism; the tional economy), and a new branch economic operation mechanism of analysis made by the neo-laisser- of learning — productive forces each enterprise. faire school on the market mechan• economics — has come into being. From Qualitative Analysis to ism and the harm done by exces• But the law governing the move• sive state interference in economic ment of the contradiction between Quantitative Analysis. Economic activities; and input-output an• the social productive forces and relations of any kind form an alysis, linear programming and relations of production in socialist organic unity of quality and quan• other forms of measurement used society and the interaction between tity. For correct and accurate in metrological economics. To the two has not received adequate handling of economic relations, it criticize, analyse and use the re• stress, and profound studies are is necessary to combine qualitative sults of the above-mentioned still required. analysis with quantitative analysis. Western economic theories in a In Capital, Marx's analysis of the scientific way is definitely of im• From a General Study of Eco• economic relations (value, surplus portant theoretical and practical nomic Relations to Concrete value, wages, profit, average profit, significance for enriching Marxist Analysis of Economic Operation. production price, interest and rent) Mechanism. Since socialist eco• economics and building socialism in capitalist society has set us an nomic relations have inseparable with Chinese characteristics. example of combining qualitative links with the socialist economic analysis with quantitative analysis. From Studying Relations of Pro• operation mechanism, the study of duction to Studying Productive political economy must not only However, Chinese economists on Forces. Productive forces and the include the social relations of pro• the contrary ignored this tine tradi• relations of production are two in• duction but also the operation tion of Marx in making theoretical separable aspects of social produc• mechanism of social economy. analyses. While criticizing the tion. Without understanding the Economic operation mechanism mistake of bourgeois economists in

18 Beijing Review. No. 49 stressing quantitative analysis to From Theoretical to Applied Eco- tation, construction, and labour the neglect of qualitative analysis, tKMnics. Reviewing the history of economics and of national eco• we went to the other extreme of our studies of socialist political nomic planning. Second, we must one-sidedly stressing qualitative economy since the founding of strengthen the study of different analysis to the neglect of, or even the People's Republic in 1949, we kinds of peripheral economics, discarding, quantitative analysis. may conclude that our whole such as social, demographic, This turned our qualitative study study centred on theoretical eco• educational, geographical, tourist, into abstract, empty commentary. nomics, and even up till now the public health, physical cultural, The result was, theoretically, we deviation of stressing theory to military and information eco• were unable to found Marxist eco• the neglect of application has not nomics. Third, we must strength• nomic metrologies and, practically, been thoroughly corrected. en in particular the study of it rendered our economists inca• technology economics, since it is pable of gaining a correct under• In my .view, the starting point of the greatest practicail signifi• standing of conditions throughout and the end-result of our study of cance but still the weakest link in the country and therefore unable socialist economics should centre our study of applied economics. to provide solutions to the im• on applied economics. The study The study of technology economics portant problems which arose in is divided into macro and micro our everyday lives. studies. The former investigates our country's industrial set-up, In fact, some theoretical prob• Without research in product mix, technology structure lems of the greatest importance applied economics, and regional economic structure, in our socialist economic construc• theoretical economics while the latter studies the ideal tion, such as the proportion be• would become a rootless size of an enterprise and the tween the three major depart• tree and a sourceless rational organization of its pro• ments of the national economy — fountain, and its study ductive forces. agriculture, light industry and would never deepen. heavy industry; the proportion be• Neglecting the study of From Microeconomy to Macro- tween the means of production applied economics cannot economy, From Short-Term and the means of subsistence — help advance socialist Planning to the Study of Long- the two major components of economic construction Range Strategy. This is to bring social reproduction; accumulation one iota but will only up the problem of laying partic• and consumption; speed and ef• impede it. ular emphasis on research into ficiency; and the over-all balance socialist economics from two dif• of the national economy, need not ferent angles — space and time. In only qualitative analysis but the past, our study stressed especially, quantitative study. of socialist theoretical economics microeconomy and paid little Only in this way can we make should, eventually, serve applied attention to macroeconomy. We socialist political economy more economics, while the study of regulated the macroeconomy and more accurate, practicable applied economics should supply mainly by relying on mandatory and complete. information and data to the re• plans and administrative measures Marx once pointed out that a search in theoretical economics. by state organizations which science could not reach a very Without research in applied eco• exercised rigid and excessive con• high level unless it had successful• nomics, theoretical economics trol over our enterprises and ly employed mathematics. For• would become a rootless tree and restricted their development. tunately in recent years Chinese a sourceless fountain, and its economic theoretical workers, par• study would never deepen. Neg• Currently, China's economic ticularly economists engaged in lecting the study of applied eco• structure is undergoing a change practical work, have realized the nomics cannot help advance from an old model to the new. importance of making quantitative socialist economic construction The product-type economy (with studies of economic relations. Pre• one iota but will only impede it. the state allocating all the prod• mier Zhao Ziyang said in 1982 Now, we are shifting our focus ucts) under a mandatory plan is that in the future, the State of study from theoretical eco• being turned into a planned com• Council would not discuss docu• nomics to applied economics. First modity-type economy and, along ments sent in by economic depart• of all, we must strengthen the with this, the means of regulating ments if they presented only study of different departmental the macroeconomy are being qualhative analysis but no economics, such as of industrial, changed from administrative to quantitative information. agricultural, commercial, transpor• economic ones (price, taxation. December 9~, 1985 19 credit and loans). This calls for the world-wide new, technological of other branches of learning, strengihening our study of the revolution and our own economic particularly the results and macroeconomy. It is all the more development strategy, so as to methods of contemporary systems urgent now because of the super• make our strategic system for analysis, cybernetics and informa• high speed at which the national economic development more tics. This will help us effectively economy has grown in , recent scientific and consummate. make an overall social analysis of years. This has quickly swelled our economy, help co-ordinate the From Isolated, Narrow-Scope the need for investment and con• different factors of the whole Study of Economics to Compre• sumption, giving rise to problems society (in the economic, political, hensive, Plural-Faculty Social Eco• of investment-starvation, pre-ma- cultural and psychological fields) nomic Studies. Society itself is ture "consumerism," serious price and enable them to progress a complicated system composed of fluctuations, market shortages and simultaneously. overextended bank credit. Given a multitude of factors. Within this From a Unitary Knowledge Struc• this, while strengthening our system the different factors ture to a Multiple Knowledge efforts to enliven the microecon- depend on and restrict each other's Structure. All economists must omy, we must redouble our efforts development. Needless to say, the acquire basic knowledge of theory, to achieve stronger control and history and statistics — the three better regulation over the national tools for analysing economic prob• economy through economic means Economic study must a/so lems. Of the three, theory is the and quickly bring about more absorb the techniques of most important, since historical normal conditions of circulation and statistical data themselves in the whole national economy. research of other branches of iearniing, particuiarly can't talk, and must be explained After World War II, the major the results and methods by theory. To explain complicated capitalist countries attached great of contemporary systems social economic phenomena, one importance to the study of analysis, cybernetics must acquire a knowledge of strategy for economic develop• and informatics. This will history and statistics. ment — a crucial problem which help us effectively make an Currently, the structure of we have neglected. For over three overall social analysis of knowledge among Chinese econ• decades since the founding of the our economy. omists is seriously lop-sided. People's Republic, we have drawn Many economists have basically up only short-term (annual) plans acquired a systematic theoretical and medium-range (five-year) knowledge of Marxist economics plans, but failed to project a long- economy is not the only factor but lack knowledge of history and term plan. It was not until 1979 functioning in this system. Given statistics. that Chinese economists began to this, our economists must consider take up the study of economic not only the social effects brought In discussing the knowledge development strategy. The 12thabou t by economic growth but structure- of China's present-day National Party Congress held in also the influence of social economists, many people showed 1982 formally laid down the environment and other social fac• more concern about China's strategy for China's economic tors on economic development. future economists. They pointed development over the two decades This calls for a study of all the out that in order to train econ• between 1981 and the end of this social factors related to economic omists with a wide range of century; this is. "while steadily activities, such as culture and knowledge, a strategic rearrange• working for better and more eco• education, medical service and ment must be made in the nomic results, to quadruple the public health, science and technol• curriculum for the study of eco• gross annua! value of industrial ogy, environmental pollution, the nomics. The teaching of Marxist and agricultural production" by use of natural resources, energy economic theories should be the year 2000. and transportation, and the stressed; at the same time, qualifi• tertiary industries. In the last few ed teachers must be appointed and Currently, we must make years, while drawing up a long- adequate time assured to facilitate further studies. We must find out term plan, we have already linked the study of history (including the implications of this strategy, economic development with all that of Chinese economics, of Chi• the measures for reaching its the other aspects of social develop• nese economic theories, of foreign target, the relation between eco• ment. economics and of foreign eco• nomic strategy and the strategy nomic theories) and statistics for social and cultural develop• Economic study must also (including theoretical, economic ment, and the connection between absorb the techniques of research and mathematical statistics). •

20 Beijing Review, No. 49 China's Fish Farming Jumps Upstream

Traditional Chinese pond farming has been internationally acclaimed as energy- efficient, economically profitable, waste-recycling and conducive to the maintenance of a sound ecological order. The UN FAO believes the method should be populariz• ed around the world, especially in the third world countries. by WEI LIMING the quality and breeding of fresh• ing mainly involved pond cultiva• Our Correspondent water aquatics, thus ushering in a tion of carp. Some of the charac• new period of fishing development. teristics of pond farming are as This year the average Chinese follows: finds himself with two more kilo• Traditional Fish Farming — The pond not only offers a grammes of fish on the table than China is the number one pro• place for fish to grow but also a was there two years ago. Yet, it ducer of freshwater fish in the place to produce fish feed. For is no easy task to keep up such a world. Its fish farming techniques example, manure can be used to growth rate when considering the date back more than 2000 years, cultivate planktons, which in re• enormous Chinese population of 1 when the first book on fish farming turn can be used as feed. In so billion is swelling at an annual rate was written by Fan Li, a minister doing, the body of water can be of about l(j million. of the Yue State. fully used at comparatively low cost. The government department in Endowed with numerous rivers charge of aquatic production attri• and lakes, China abounds with in• — As different species of fish butes the improved fish market to land water bodies covering a total live at different water levels, many the adjustment of fishing policies area of 16.7 million hectares teem• species can be stocked and raised and the reforming of China's ing with more than 800 species of simultaneously in the pond. This economic structure. China has fish. mixed method increases the den• abandoned its traditional method Chi Yingjie, deputy secretary- sity of farming. of aquatic production which general of the China National — Staggering the age of fish in stressed the quantity and fishing of Aquatic Production Association, the pond by harvesting the old and marine products to the neglect of said China's freshwater fish farm• leaving the young to mature offers a continuous supply to the market. Members of specialized fish households In Rongnian County, Hebei Province, landing a good haul of freshwater fish. — The pond can simultaneously be used to cultivate fodder for animals, gradually developing a rational ecosystem. Chi said traditional Chinese pond farming had been interna• tionally acclaimed as energy- efficient, economically profitable, waste-recycling and conducive to the maintenance of a sound ecolog• ical order. The UN Food and Agri• culture Organization believes the method should be popularized around the world, especially in the third world countries.

Present Sftuatisn This year China has succeeded for the first time in artificially pro• pagating its four major Epecies oi

December 9, 1985 21 out the country, in addition to ing. His research won him the more than 300 communes or town• nation's first-class scientific and ships, and more than 4,000 bri• technical award. . gades that specialize in fish farm• Today China has five universi• ing. ties and colleges that specialize However, owing to the lack of in fishery production, 13 secondary knowledge about the importance fishery schools, ai)d a fishery acad• of water bodies and the erroneous emy that has affiliated research guideline enforced during the "cul• institutes on the Yellow Sea, the tural revolution," individual fish East China Sea, the South China farming among the peasants was Sea, the Changjiang (Yangtze) seen as "development of capital• River, and the Zhujiang and Hei- ism." To boost grain production, long Rivers. In addition, each some regions went so far as to province, municipality and autono• destroy water areas by filling up mous region has its own fishery lakes and ponds, demolishing the research organizations staffed with ecological equilibrium. As a result, 14,000 researchers. fish output in some areas went down year by year. Fish Doctors

In 1979 China began to imple• In 1952, Jiangsu and Zhejiang ment a policy that gave equal at• provinces, known for their suc• tention to breeding and fishing. cessful fish and rice production, The government introduced such were hit by fish epidemics. The rural economic policies as the con• disaster changed the entire course tract system in which remuneration of US-trained Ni Dashu's career. A is linked to output. All these graduate of the zoology department have helped fish production, and of the University of Pennsylvania by 1981, the freshwater fish volume in 1948, Ni had published several was four times that of 1979. papers on protozoology that drew At present, Chi said, state-owned worldwide attention. enterprises produce half of China's Before the founding of New freshwater fish, while more than 4 China in 1949, there were few re• million specialized fish farmers searchers studying fish diseases in produce the other half. China has China. Taking on the challenge, Ni 3.27 million hectares of water area, went to the provinces and stayed At the aquatic products market in about 20 percent of the country's ChangshUc Jiangsu Province, which is there for three years, holding total, devoted to fish farming. Its open for business around the clock, classes for the local peasaints in an about 15,000kg of fresh fish are avail• total output of freshwater fish in effort to eliminate the diseases. able for purchase every day. 1984 reached 2.25 million tons, ac• Ni went on to become the founder counting for 36 percent of its total of pathological fishery research in black, grass, silver and variegated fish products. China. carps. In the past two years, China has During the 1950s and 1960s, conducted comprehensive experi• "After more than 30 years of China built 13 large commercial ments in 700 hectares of land on hard work by Chinese scholars, fish farms at the Zhujiang (Pearl) the Zhujiang River Delta, raising more than 100 fish diseases have River Delta, Hangjiahu Plain^ the per-hectare yield from 5.84 tons been brought under control," Ni Dongtitig Lake, Poyang Lake, the to 9.41 tons. said. Great Bend of the Huanghe Last year Zhao Naigang, a Ni divided the history of China's (Yellow) River, Sanjiang Plain, the fishery specialist of Anhui Prov• research on fish diseases into three Sichuan Basin and other places. ince, succeeded in artificially pro• stages. In the 1950s, research cen• China now has about 6,000 state- pagating river crab in a man-made tred on parasitic diseases. In the owned enterprises and undertak• pond th^t mixed fresh and sea 1960s, the study of bacterial ings employing 400,000 workers water, a project that has been diseases came into focus, and since and staff responsible for fish pro• widely considered an important the 1970s, the research has turned duction and management through• br.;akthrough in freshwater farm• to viral diseases.

22 Beijing Review, No. 49 The death rate of grass carp, a other regions and countries in black fish tastes as good as Chinese large part of the Chinese diet, was 1964. crucian carp and has become ano• about 90 percent before the 1970s, ther popular dish found on many To create a wider variety of fish Ni said. But towards the end of dinner tables throughout China. species, Chinese scientists began to the decade, the Chinese scientists practise with hybrid species in the discovered ways to build up im• 1950s and have since developed Technology Import and mune systems in fish and today 80 more than 60 hybrids. They have Exchange percent of the fish are immune created new breeds such as the To further enrich the Chinese from diseases for as long as 14 Heyuan and Feng carp. These diet. Pan Jinpei, deputy director of months, increasing the survival hybrids, when raised together with the Aquatic Animal Research In• rate of grass carp from 10 percent other species, not only grow better, stitute, said China had introduced to 70 percent. but help the other species grow many other breeds from abroad, Ni also discovered another place bigger. such as rainbow trout from Ko• suitable for grass carp — the rice Tong Dizhou (known as T.C. rea, and gengoro-buna (phytopha• paddy. Raising grass carp in rice Tung in the West) and other Chi• gous crucian carp) from Japan. paddies, he said, not only protects nese biologists began experimen• These imported species have the fish from disease, but also in• ting on new breeds through biolog• "settled down" in more than 20 creases the output of rice. ical engineering in the 1970s. They provinces and municipalities. The grass carp living in rice have created a hybrid by combin• To promote technical exchanges fields eats weeds and insects. So ing carp nucleus and crucian with other countries, China in a sense the fish do much of the cytoplasm, and another hybrid by sponsored the Asian Symposium on work for the farmer. The carp combining grass carp and blunt Freshwater Fish Culture in Beijing digests and absorbs only 30 per• snout bream. The first hybrid last October, attended by more cent of the weeds it takes in and already has had its third generation than 130 fish experts from nine excretes the remaining 70 percent, of offspring. Asian countries and regions, as which actually turns into manure Through genetic engineering, well as from the Federal Republic for the rice. Grass carp also eat Chinese scientists are trying to of Germany, the United States and mosquito larvae, thus contributing create new varieties that grow fast, the Soviet Union. More than 100 to a healthy environment in the taste good and are resistant to papers about freshwater farming countryside. disease. Wu Qingjiang, director of and feeding, fish diseases and breeding were exchanged at the Nr said Chinese research scien• the Aquatic Animal Research In• symposium. tists involved in fisheries were stitute of the Chinese Academy of different from their foreign coun• Sciences, said that while many In 1978 China, the UN develop• terparts because they paid more at• countries were experimenting in ment Programme, and the UN tention to the application of their this field, "we want to be in the Food and Agriculture Organization results to production. The 79-year- van." co-sponsored a comprehensive fish old professor is now working on The Nile tilapia that China im• farming training and research cen• methods to shorten the growth ported from Africa, he said, could tre in Wuxi, a city known for its period of grass carp. "I want to grow well only in warm southern long history of fish farming. More help the peasants benefit," he said. provinces, but not in the cold than 150 technicians from third north. To solve this problem, they world countries have received New Breeds are trying to transplant the most training at the centre. • Peasants in suburban Wuxi, cold-resistant cell lines of the Nile Jiangsu Province, discovered that tilapia into nucleus-removed egg cells to create new species suitable COKRECTION: For "the Fine Gael" blunt snout bream (megalobrama mentioned anywhere in the article for the north. 'Britain-Ireland: A Breakthrough In amblycephala) was easy to breed, Diplomacy" which appeared in our last and tasted delicious. They began Wu and his partners said the issue on page 14, the correct party should have been the "Ulster Unionist raising the fish in the mid-1960s Chinese government has shown Party." and the output of blunt snout great support for their "test-tube The last sentence of the third para• bream now makes up 11 percent graph of the same article should read; fish" and has listed the biological •Their major political organizations of the area's total fish. engineering project on the agenda are the Social Democratic and Labour Party and the Sinn Fein Party, which for the Seventh Five-Year Plan to The wild species, found in the is the political wing of the Irish Re• begin in 1986. publican Army (IRA). Both parties middle and lower reaches of the advocate unification of Ireland and Nile tilapia has been available Northern Ireland." And the fifth line Changjiang River, was domesticat• In the last but one paragraph should ed in 1960 and made available to in Beijing market for years. This read: "about 100,000 Protestants. . .

December 9. 1985 23 Tianjin Has Something for Everyone Although Tianjin is generally known as an industrial city, its scenic spots and sites of historical interest also have a place in the city's development. Its traditional handicrafts have always attracted Chinese and foreign tourists. by LU YUN project has been completed and and the Tiancheng Temple is now opened to tourists. This section of open to the public. It received Our Correspondent the Great Wall was first built in more than 550,000 visitors last IANJIN, 120 kilometres south• 557 A.D. In 1569, during the IVIing year. Dynasty, it was rebuilt under the Teast of Beijing, has become a Other cultural relics now under famous general Qi Jiguaflg. When "boom-town" with something for repair in Tianjin include the Tian- it was under reconstruction this everyone, Chinese and foreigners hou Palace and 80 Qing Dynasty t\me, special bricks were used, each alike. buildings around it. This project weighing 12.5 kilogrammes. One of the three municipalities is scheduled to be completed by directly under the central govern• The Dule Temple located west of early next year. Repairs have been ment, and with a population of Jixian has been put under state completed on the well-preserved 7.83 million, Tianjin has grown protection because of its historical Guangdong Guild, Wenmiao Tem• into China's second largest indus• value. The 1,000-year-old massive ple (built in 1476), and Luzutang trial port city. Since it was de• wooden structure is noted for its Alter — once a training centre of signated as one of the 14 sea-board strong traditional flavour; it re• the anti-imperialist Yihetuan Move• cities open to foreign investment ceived more than 220,000 Chinese ment in 1900. and trade last year, there has been and foreign tourists last year. The The Guangdong Guild was built a great increase in foreign business Avalokitesvara Hall, 23 metres in 1907. The architectural style is activities, while tourism has been high, is the oldest hall of the tem• indigenous of Guangdong Prov• booming. Tianjin's historical sites ple, where an 11-faced enormous ince, representing a combination and handicrafts have created a statue of the worshipped Avaloki- of architectural skills of both north• magnet for foreign vacationers. tevara — a mythalogically female ern and southern China. It has a Another lure to tourists is the Buddha — and two clay Buddhas wooden-stage built without a sin• stone-built section of the Great that date back to 984 A.Dgl. e pillar and its umbrella-shaped Wa!! that cuts through Jixian stand. Ancient frescoes inside the roof is rarely seen in China. County in Tianjin's suburbs. hall have provided important ma• terial for the study of painting and During the heydays of the 12th Buddhism in China. In the past Traditional Handicrafts century, the seaport then called thousand years, 28 earthquakes, in• Tianjin is a must for tourists Zhigu, was found to be easily ac• cluding three devastating ones, de• interested in traditional Chinese cessible by both land and water, stroyed many architectural wonders handicrafts. making it an important strategic in the area, yet most of the temple One of the local traditional import and export region. It was and Avalokitesvara Hall survived. built into the city of Tianjin in handicrafts is the block-printed 1404. During the Qing Dynasty Panshan Hill in Jixian County New Year pictures of Yangliu- (1644-1911), Tianjin developed has been listed as one of the 15 qing Town and other 30 adja• into a commercial region and it most famous scenic spots in China cent villages in the western suburbs was then foreign businessmen first because of its oddly-shaped stones, of Tianjin. Shao Wenjin, deputy discovered its attractions. towering pine trees and lovely land• director of the Yangliuqing New scape. Many emperors had dozens Year Picture Publishing House, Cultural Relics of temples built there. During the said the Yangliuqing pictures had Qing Dynasty, Emperor Qianlong a history of more than 300 years. !n the past year, many organiza• had his imperial vacation villa, the Paint is applied to the hand-made tions and individuals have donated Jingji House, built along the hill. wood blocks, giving the final pic• a total of 7.45 million yuan for the These temples and the lingji House tures a flavour of both print and reconstruction of the Huangya- were all razed during the Japanese paint. One of the representative guan-Taipingzhai section of the invasion some 40 years ago. They works of Yangliuqing is the chubby Great Wall. The 873 metre-long have been partially rehabilitated baby embracing a big red carp and

24 Beijing Review, No. 49 holding a lotus flower in one hand. The picture expresses the people's wish for happy life and a rich har• vest. But most of the works of Yangliuqing are based on real life at different stages and historical themes. Because of their superb craftsmanship, the Yangliuqing Spring Festival pictures are loved by the local people and known throughout the country. Clay "Zhang" figurines are also the pride of the Tianjin people. The painted sculptures were first designed by Zhang Mingshan, a folk artist who lived more than 140 years ago, and his descendants. Zhang Mingshan was famous for the realism in his work. It is said that when he went to see a perfor• mance, he would take some clay with him and shape figurines of the performers with the clay hidden up his sleeves. His son, Zhang Yu- ting, was also good at sculpture and his works won prizes at quite a few international exhibitions. After liberation in 1949, Zhang's grandson, Zhang linggu, was in• vited to teach at an art institute and was received by the late Chair• man Mao Zedong. In 1953, a work• shop in honour of Zhang was estab• lished in Tianjin to train artists in the painted sculpture technique.

Hand-woven carpets and kites A pogodo in the Panshan Hill scenic area. are other Tianjin specialities. World-renown for their lively pat• terns, Tianjin carpets are exported The Nanshi Gourmet Street is According to Tianjin municipal to more than 100 countries and re• lined with shops done up in tradi• government officials, currently em• gions. Some patterns are like re• tional Chinese style, where visitors phasis is being put on developing lief sculptures in themselves. One can enjoy traditional Tianjin deli• tourist services in connection with of the most famous examples is the cacies and dishes from various foreign economic and trade ex• Great Wall tapestry donated to the parts of China. changes. They hope to combine United Nations by China in 1974. Tianjin's current hotel facilities tourism with services for interna• Tianjin kites have been known do not meet the needs of domestic tional conferences and exhibitions, throughout the world for quite and foreign tourists. Efforts are as well as business and academic some time. In 1914, kites made by being made to increase the number activities. Foreigners are also wel• Wei Yuantai, a famous Tianjin kite of hotels, including four joint ven• come to visit the local factories, artist, won a gold medal at a world ture hotels built together with US schools, hospitals and neighbour• exhibition in Panama. Now, the and Singapore businesses. An hoods if they wish. In the near Tianjin Arts and Crafts Factory, amusement park has been com• future, various fairs will be held where Wei's third-generation family pleted and opened to the public, to include Spring Festival flower members work, also produces and a racecourse and golf course shows, kite competitions, martial shell carvings, feather patchworks, have been included the city's con• arts competitions and international Chinese paintings and papercuts. struction plan. marathon races. •

December 9, 1985 25 FROM THE CHINESE PRESS

promoting the cultural and scien• Knowledge Key to Modernization tific knowledge needed to trans• form their backward production This is not a new lesson. Some methods and update their tradi• from "GONGREN RIBAO' developing countries have import• tional concepts. (Workers' Daily) ed shiploads of modem goods and It is obvious that the moderniza• conveniences to augment the lives tion of technology is important. OT long ago while I was away of their citizenry. As a result, The modernization of technology, on official business in Guang• N however, those countries now however, stems from the moder• zhou, I reached in my pocket for find their development has assum• nization of people's knowledge. one of my "Beijing" brand ciga• ed a lopsided stance. Although In other words, human beings rettes. Before I could light it, there are probably of variety of are the most important factor in someone told me my cigarettes causes for such imbalanced de• modernization. It is in the human were an embarrassment because velopment, it seems apparent that capacity for knowledge and they were common and inferior too much money was spent on growth, therefore, that bigger to more modem brands like conveniences and not enough on sums should first be invested. "555," a pack of which this per• son promptly pulled out for dis• play. "You know." he said, "this is a more fashionable brand." For First Time Ctiina Tourists

Some Chinese people have put former capital, tourists can visit undue emphasis on the modern from "RENMIN RIBAO" one of the world's scenic wonders way of life and on having new (People's Dally, Overseas Edition) — the life sized terra-cotta soldiers and improved versions of every OR tourists on their first trip and horses that date back to the little thing — even cigarettes. To F to China, visiting Beijing, Gin Dynasty (221-206 BC). While many of these people, money Shanghai, Xian and their environs in Xian, visitors can also enjoy means modernization. Imported can provide the tourists with an a hot natural spring bath in the cars, televisions, refrigerators and instructive and pleasant introduc• Huaqing Pool. If you are a des• washing machines are, to these tion to the vast nation. cendant of the Yellow Emperor, people, the "correct" signs of the Emperor's mausoleum awaits As China's political and cultural prosperity, of modernization. your visit of homage. centre, Beijing offers tourists a multiplicity of attractions. In ad• It is not wrong to want modern Because of its vast territories, dition to the Badaling section of conveniences for oneself and parts of China are always the Great Wall, tourists will also one's family, for the goal of the worth visiting regardless the sea• find in Beijing the renown Sum• four modernizations is to im• son. Visits to Beijing, Shanghai mer Palace, Beihai Park and the prove the quality of people's lives. and Xian, however, are recom• Imperial Museum or Forbidden At present, all Chinese should mended for spring and autumn. City occupied by the royal families work hard, live simple lives and Kunming, known as "Spring City," of the Ming and Qing dynasties put the state's modernizations and capital of China's southern from 1368 to 1911. Visitors to above their personal interests. If Yunnan Province, offers such at• Beijing will also find a variety of China remains underdeveloped tractions as stone forests and fine restaurants, including those in industry, agriculture, science Dianchi Lake. From Kunming, specializing in the fabled "Beijing and technology, individual moder• tourists can also train to the even duck." nization will be superficial with warmer climate of Xishuangbanna an unstable foundation. What is Shanghai, China's largest city, is to enjoy the subtropical scenery the use of having imported cars and also one of the best spots for along the Sino-Burmese border. TV sets if there are no modem shopping. From Shanghai, tourists Guilin, located in the Guangxi, highways, no effective transporta• can also easily find their way to Zhuang Autonomous Region is tion management, no high-quality two of China's beautiful cities, another good winter tourist spot, gasoline, and no well-equipped Suzhou and Hangzhou. and is famous for its mountains TV stations able to produce In Xian, the starting point for and rivers. For those who enjoy worthwhile programmes? the ancient "Silk Road" and a a hearty dose of winter fare, a

26 Beijing Review, No. 49 trip to China's northeastern city lowing are some of the survey's gaged couples to live together. The Harbin in January or February major findings. rest s^id they were either unsure or would provide a pleasant diversion. that living together was acceptable. In Harbin, one can ski and ice The survey shows 62 percent of About 20 percent said it was skate, in addition to viewing the the respondents agreed that wom• understandable for some married splendid sights of winter in north en's virginity is sacred, while 24 people to have lovers other than China. percent said they were uncertain their spouses. About 50 per• about its importance, and the rest, cent, however, said adultery was Tourists who enjoy shopping 14 percent, felt virginity is not immoral. will never be at a loss for things sacred. The preference for wom• to purchase. China's handicrafts, en's premarital virginity is held by About 75 percent of the students silk, porcelain, carpets and cotton both men and women and is the said they thought Chinese people textiles are world renown and can most inflexible of traditional Chi• were too strict about sexual rela• be had in China at lower prices tions. Half said traditional Chinese than elsewhere. Special local prod• nese morals, even among university sexual morals suppress human na• ucts are available in different students. ture. Another 20 percent said they areas. Beijing, for example, is a About 25 percent of the students felt a serious attitude towards sex good place to buy cloisonne said they found it immoral for en- was not a virtue. enamel and carpets. Shanghai is famous for its Chinese garments, and Hangzhou for its silk. Suzhou has a number of antique outlets, Rural Specialized Household and Xian offers the visitors uni• que figurines and tri-coloured glaz• Standards ed pottery in the style of the Tang Dynasty. from "NONGMIN RiBAO" modity rate of more than 60 per• (Peasants' Daily) cent.) The friendship stores in Beijing 4. The household's income ob• and Shanghai also offer the travel• INCE 1979, and with the de• tained from selling products (in• ler varied commodities from all S velopment of the rural com• cluding service fees) must double over China. These stores will also modity economy, specialized house• the average household-income ship purchases nearly anywhere holds in different areas have been made from sales by local (taking in the world. evaluated with different criteria. county as a unit) non-specialized For those interested in cal• In an attempt to co-ordinate the households. ligraphy, paintings and antiques, evaluation process, the State Sta• A recent survey shows that at stores specializing in these areas tistics Bureau set unified standards the end of 1984 there were 4.256 have opened in China. When for all rural specialized households. million households throughout the purchasing such items, it is im• According to the new guidelines, country that met the above stand• portant for tourists to remember to specialized households must meet ards, amounting to 2.3 percent of get a receipt and to check whether the following criteria: total rural households. The annual each slip bears an official red seal. average income for a specialized 1. Established on the unit of household is 4,624 yuan, 81 percent the individual household, the fam• higher than the average income of University Students ily's major labour force or most the nation's peasants. members of the family take part in At present, rural specialized a certain production, or embark on households have the following Value Virginity specialized managing activities, on characteristics in their develop• which more than 60 percent of the ment. The business scales of the from "KEXUE YU REN labour time are spent. specialized households are expand• (Science and People) 2. The household obtains more ing, while the number of house• than 60 percent of its total income holds specializing in industry and O find the truth behind a cur• from specialized production. service trade surpass that of those Trent rumour accusing China's engaging in farming and breeding university students of being in• 3. More than 80 percent of spe• production. In addition, these fluenced by the West's "sexual lib• cialized products turned out by households are becoming more eration," a group of researchers the household must be for sale. specialized, and reaching higher surveyed university students about (The specialized grain-producing levels of commercialization and their ideas on sexuality. The fol• households, however, are at a com- productivity.

December 9, 1985 27 BUSINESS AND TRADE

vertising agencies in China and Beijing to Host 3rd World Ad Congress more than 3,600 Chinese organiza• tions involved in the advertising in• dustry. The Third World Advertising Congress, in which delegates will The China National Advertising discuss the role of advertising in Association for Foreign Economic developing economies, will be held Relations and Trade was establish• in Beijing in June 1987. ed in 1981, and as a national foreign trade advertising organiza• At the meeting which is the first AOVERTISINC CONGRESS tion the association has forged of its kind ever to be held in China BEIJING 1987 close ties with nearly 100 advertis• and also in the third world, dele• ing companies around the world. gates will concentrate on tackling The emblem

Beijing Review, No. 49 28 May 1985 by the efforts of the large precision instruments started China National Oil Development in China in 1958, but has only Used Equipment Corp. and four Australian Oil con• made incremental progress. Today, sortia headed by the CSR Orient there are more than 10,000 large Symposium Ends Oil Pty ltd, began operating after precision instruments, in China, the contract was in force on Sep• and most are imported. The con• An international used equipment tember 1. vocation of this conference will symposium, the first of its kind in The consortium's oil exploration play a vital role in accelerating the China, was held from November contract includes seismic mapping development of China's analytical 30 to December 6 in the Zhejiang and geological fieldwork in the testing technologies and precision Exhibition Hall in Hangzhou, east northern part of Hainan Island, instruments. China. covering an area of 2,800 square • In the past six years, the Bank Business people from 60 enter• kilometres. The CSR group had of China has set up branches and prises and firms in 13 countries earlier joined the Occidental Pe• offices in a number of financial and regions, including Canada, the troleum Corp. of the United States and trade cities throughout the Federal Republic of Germany, which won the bids in August 1982 world. By the end of 1984, the France, Hongkong, Japan, the Phi• for oil exploration along 1,200 bank had established 293 branches lippines, Spain and the United square kilometres in the Zhujiang and offices with a total value of States participated in the sym• (Pearl) River Basin of the South assets amounting to US$18.3 bil• posium, at which 1,000 pieces China Sea. lion, a 3.9-fold increase over that of second-hand equipment were The bulk of the northern section of 1978. Its deposit volume total• presented for discussion. Most of Hainan Island, where the con• led US$9.6 billion, a nearly 200 of the equipment date back sortium will be drilling for oil, is percent increase. These branches to the 1970s, though some the Fushan depression, which oc• and offices have also made loans were manufactured in the cupies an area of 2,500 square kilo• amounting to US$4.7 billion, reg• 1960s and others in the first half metres and is part of the oil-rich istering a rise of 300 percent of the 1980s. The majority of the Beibu Gulf Basin. The sediment• over the 1978 figure. items at the symposium included ary section of the Fushan depres• • The State Science and manufacturing equipment, elec• sion in the 5,000 metres of earth Technology Commission of the tronic and metallurgical equip• from the Neogene and Cretaceous People's Republic of China and the ment. periods (70 million years ago) is European Communities will be• During the symposium, which thought to be rich in petroleum gin developing alternative energy was sponsored by two Chinese resources. resources on China's Dachen companies and a Hongkong firm, Since the Chinese government Island, Zhejiang Province, in early representatives also participated in decided in January 1985 to open 1986. The scheduled projects in• talks on the use and purchase of its ten southern provinces for oil clude work in wind, solar and such equipment. tidal power stations, and biogas co-operation with foreign oil com• pits. These projects involve a Most of China's 400,000 enter• panies, 59 foreign oil firms have total investment of 20 million prises are medium-sized and small discussed onshore oil exploration yuan, with US$4 million contri• enterprises, and it would be ben• and development with the China buted by the European Commu• eficial for them to import second• National Oil Development Corp. nities. hand equipment in order to effect News in Brief • The British government has their technical transformation. announced it will grant China its • The first Beijing Conference first batch of loans totalling 100 and Exhibition on International million pound sterling (about Analysis, sponsored by the State US$140 million) for the construc• China Strikes Oil Science and Technology Commis• tion of China's energy and ma• sion of the People's Republic of chine-building industries. Deal With Australia China, was held from November 18 to 27. More than 200 experts With a period of 20 years for The Australian Oil Consortium, and representatives of 100 compa• repayment and a five-year exten• set up to explore petroleum resour• nies from 17 countries and regions sion period, China expects to re• ces on Hainan Island, Guangdong attended the conference and visited pay the loans, at an annual inter• Province, started work in Haikou the exhibition. est rate of 5 percent, six months recently. The consortium, estab• after the completion of the lished according to a contract in The research and application of projects.

December 9, 1985 29 CULTURE AND SCIENCE

Visitors to the study of author Cao Xueqin examine poems painted on the wall. The photo (right) is a replica of the poems. Memorial Hall Honours Cao Xueqin Though A Dream of Red Man• poor people and the corruption of love story. However, a close read• sions has been studied for more the feudal ruling class. With his ing reveals the author's indignation than 200 years in China and 150 mixed feelings, Cao set pen to at the feudal system. When A years in Europe, literary critics paper in 1753 and rewrote his Dream of Red Mansions first came have only recently begun to take manuscript five times. After 10 out in the form of hand-written a close look at the novel's author, years of hard writing, he finally copy, most people completely miss• Cao Xueqin. 'And what they finished A Dream of Red Man• ed its criticisms of feudal society. found is an author that many put sions. Ironically, paintings depicting in the same league with Shake• scenes from A Dream of Red Man• speare, Balzac and Hugo. The novel deals with the tragic sions were placed in the corridor Cao Xueqin (17247-1763 or love between Jia Baoyu and his of the Chang Chun Gong (Palace 1764) was born into an aristocra• cousin Lin Daiyu. Through the of Eternal Spring) in the Forbidden tic family during the reign of Em• rise and fall of four families — the City. The palace was the home of peror Qianlong of Qing Dynasty, lia, Shi, Wang and Xue — readers Empress Dowager Ci Xi, the su• the last feudal dynasty of China. have an intimate knowledge of life preme representative of the feudal His great-grandfather, grandfather at the time, its ideology and ethics, class that Cao sharply criticized. and father were officials assigned law and education, customs and Even today, these paintings can by the Qing Court to admin• mores. They can sense the author's still be seen clearly. ister the textile industry in Nan• deep sympathy for the oppressed jing. While young, the author-to- and his hatred for the ruling class. With time, the true nature of A be led a luxurious life. But during Cao depicts the feudal rulers as Dream of Red Mansions was rec• a court power struggle, his father seekers of debauchery who know ognized, and the story spread far was dismissed and his home ran• only greed and cruelty. His depic• and wide through various story• sacked. From then on, his family tion of the morally bankrupt feu• telling forms such as danxian declined and moved to Beijing, dal society foretold its inevitable (story telling to musical accompani• where Cao lived a poverty-stricken doom. ment). There used to be a popular existence. But Cao's work carries its mes• saying in Beijing: "If you have no Because of his experience, Cao sage in a subtle writing style. knowledge of A Dream of Red Xueqin knew well the misery of Readers may first take it as just a Mansions, you are useless even 30 Beijing Review, No. 49 though you read poems and other ly titled The Story of the Stone, books extensively." Chinese the major character, lia Baoyu, is Cao's Novel Known Far scholars began the research of A stone incarnate. • It is interesting Beyond China Dream of Red Mansions in the that near the hall are a few age- early 19th century. old stones in grotesque shapes. The novel was introduced Legend has it that these unusual to Western countries more After the founding of New stones gave Cao Xueqin the idea to than 150 years ago, and it has China, plays, films and even ballets name his novel The Story of the been published in English, adapted from the novel were pro• Stone. Dutch, French, German, duced. Some institutes have been Itallian, Japanese, Korean and set up for the study of the novel, Dun Cheng, Cao Xueqin's close Russian. In 1973 and 1977 and a whole field of research has friend, described the surroundings Professor David Hawks of developed around the work. where Cao lived: "Paths are over• grown with weeds, they never blos• Oxford University published Chinese scholars have long stu• som the year round. At sunset an English translation in two died A Dream of Red Mansions, one can see the glow behind the volumes, which he titled The but until recently they gave less western hills." Even today, a visi• Story of the Stone. Hawks' attention to the author, Cao Xue• tor can see weeds growing around translation had a great im• qin. Over the past few years more the hall, and watch the sun setting pact on the literary world. In and more scholars and critics have behind the hills from the gate of 1978, Chinese translator closely studied the author's life and the hall. Yang Hsien-Yi and his wife, thought. The China Society for Gladys Yang, published the According to Shu Chengxun, a the Study of Cao Xueqin was form• first full-length English trans• Zhenbaiqi elder of 80, folk rhymes ed in 1983, and in April 1984 a Cao lation of A Dream of Red around Fragrant Hills have long Xueqin Memorial Hall was opened Mansions. And by the end of included the lines describing Cao's to the public in Zhengbaiqi village 1981, Chinese scholar Li home: "In front of the house are at the foot of Fragrant Hills in Bei• Tche-Houa and his wife, two old Chinese scholartrees. One jing's western suburbs. Jacqueline Alezais, published is growing forthrightly while the the first complete French The site of the hall is thought to other is sagging. Not far away are translation of the novel in be the place where Cao spent his a small bridge, brook and herbs." Paris. British scholar Arthur years writing the world-famous The described scene, is precisely Waley, who studied oriental novel. The beautiful scenery the same as the site of Cao's memo• culture, once said the ap• around Fragrant Hills gave him rial hall. Visitors today can find pearance of A Dream of Red inspiration. The hall's surround• two old Chinese scholartrees, one Mansions was a great event ings resemble the environment Cao on each side of the hall. One is in world literature. With Xueqin described in his novel. straight and the other askew. Not these new translation, it is In the novel, which was original• far from the hall there is a stone gaining true recognition.

On the northwest side of the Cao Xueqin Memorial Hall, stone tablets bearing words about Cao are also on display. bridge over a dry river bed. And it should be mentioned that the surroundings are original, and not created after the hall was planned.

The memorial hall has five ex• hibition rooms, displaying histori• cal relics and household articles used in Cao's time. Curators expect to collect more cultural relics and written mater• ials concerning Cao Xueqin. In addition, they also plan to con• struct a library and an exhibition hall that will retain the elegant style of the memorial hall. The collection will be useful for further study of Cao's life, his family his• tory and his writings.

December 9, 1985 31 BOOKS

Accounts of a Patriotic General My Reminiscences (In Chinese) mittee. He went there to accom• of the latter. As early as the 1920s by Zhang Zhizhong, published by pany Mao Zedong to Chongqing when Sun Yat-sen proposed the the Chinese Cultural and Histori• (capital of the war-time Kuomin• Three Great Policies of alliance cal Reference Materials Publishing tang government) for negotiations with Russia, co-operation with the House, will be available through• with Chiang Kai-shek on both Communist Party and assistance out the country by the end of this trips, after the victory of the anti- to the workers and peasants. year. Japanese war. In spring 1946, Zhang supported Sun's policies Zhang visited Yanan again with and never swerved from that Zhang Zhizhong (1890-1969), a cause. patriotic Kuomintang general who Zhou Enlai and G.C. Marshall, a contributed to the co-operation of US special envoy to China, in an In 1924 Zhang worked as an in• the Communist Party of China attempt to bring the CPC and the structor at the Huangpu (Wham- (CPC) and the Kuomintang KMT to peace. poa) Military Academy, where he (KMT), made a special trip in Zhang Zhizhong who had a had contacts with Zhou Enlai and 1945 to Yanan, the location of the long history of relations with the other Communists and worked Communist Party Central Com• CPC, can be said as a close friend for KMT-CPC co-operation. In 1932, Zhang participated in the January 28 battle against the Japanese invaders in Shanghai. During the civil war of 1927-37, Zhang never took part in the cam• paigns against the CPC. After the victory of the anti-Jap• anese war, relations between the CPC and the KMT deteriorated and another civil war was in the making. Considering the situa• tion, Zhang and Wu Dingchang, a high-ranking official of the KMT government, suggested to Chiang Kai-shek that he invite Mao Ze• dong to Chongqing for negotia• tions. Zhang vacated his own house to make room for Mao Ze• dong during the visit. Thanks to the negotiations, the CPC and the KMT concluded an armistice agreement on October 10, 1945, after which Zhang. Zhou Enlai and Marshall com• posed a "supreme military media• tion group" and a "programme for the reorganization of armed forces" was signed. The group in• spected the areas where the CPC and the KMT had fought and finally arrived in Yanan in the spring of 1946. At the grand wel• coming ceremony held by the Com- 52 Beijing Review, No. 49 munist Party Central Committee, Zhang published a "S^tement on of the Standing Committeic of the Zhang emphasized the importance the. Present Situation" and was• National People's Congress, vice- of implementing the programme. invited to attend the Chinese Peo• chairman of the National Defence During that meeting Zhang is re• ple's Political Consultative Con• '"Council, and vice-chairman of the corded as saying, "When you ference. He also cabled General Central Committee of the Revolu• write the history of this period, Tao Zhiyue who was in charge tionary Committee of the Kuo- please do remember Zhang Zhi- of political and milifary affairs in mintang. In his hfetirtie, Zhang zhong's three visits to Yanan." Xinjiang, and Burhan Shahidi, made important contributions to His speech was received with the chairman of the local govern• socialist construction and the re• hearty applause and was widely ment, asking them to co-operate unification of China. Zhang Zhi- publicized the next day. Despite with the CPC, thus contributing zhong died on April 5, 1969, of Zhang's remonstration, the KMT to the peaceful liberation of Xin• sickness. refused to implement the truce. jiang. As a result the negotiations for In My Reminiscences a reader On the eve of the founding of peace ended in failure and the will discover records of Zhang's New China on October 1, 1949, civil war resumed. political and military activities a discussion was held on the make and his patriotism and the spirit Before Zhang went to Xinjiang of the national flag. The majority of seeking truth. As a long-time on a mission in the winter of were for a design of three hori• member of the policy-making 1945, Zhou Enlai and his wife, zontal bars with a big star at the group of the Kuomintang govern• Deng Yingchao, asked Zhang to upper left corner against a red ment^ Zhang's accounts are an try to secure the release of the background. The three bars were important historical reference, CPC members and other patriots to symbolize the Changjiang valuable for studying the contem• held in custody in Xinjiang. (Yangtze), Huanghe (Yellow) and porary Chinese history and the Zhang promised to do his best. Zhujiang (Pearl) rivers in China. relations between the CPC and Before the civil war broke out Zhang and several others dis• the KMT. again in 1946, these people had agreed, however. Zhang said the been freed. three bars could be mistakenly Deng Yingchao, who wrote a interpreted as being three "big preface for the book, first met In April 1949 when the army sticks" to split the state and Zhang in Guangzhou in 1925 and of the CPC was closing in on revolution. Their recommendations had been a good friend since. Nanjing, the KMT government's against adopting the design was "The people will remember those delegation headed by Zhang draft• accepted • by Chairman Mao. who did them good turns," Deng ed a "peace agreement" with the says. "Zhang made important CPC in Peiping (Beijing), but the After the founding of New Chi• contributions to China's demo• agreement was turned down by na, Zhang was consecutively cratic revolution and socialist con• Nanjing. Faithful to Sun's three council member of the Central struction. His name will go down policies, Zhang decided to remain People's Government, vice-chair• m history." in Peiping at this crucial histori• man of the Northwest Civil and cal moment. During that stay, Military Committee, vice-chairman — Zhou Shu

(Continued front p. 14) In the face of growing support competitiveness of US goods for protectionism, the Reagan ad• abroad. The US trade deficit, which has ministration has adopted some been on a steady increase in recent concrete measures to improve These measures have, to a years, is estimated to reach the US balance of trade. degree, alleviated the plea for pro• US$150 billion in 1985. As a re• These measures have includ• tectionism in the US Congress. The sult, some ailing industries hurt by ed a series of trade talks with trade deficit, however, will not be the huge deficits, have exerted a Japan since the beginning of this eliminated entirely by these steps great deal of pressure on the Con• year, asking Japan to open its alone. In order to seriously gress. This problem is a sensitive market to US goods. On Septem• slash the deficit, the US gov• one, particularly for those up for ber 22, financial representatives ernment must take more drastic re-election next year. The Democ• from the United States, Japan, the measures against its high interest rats even hope to win more votes Federal Republic of Germany, Bri• rates, the root cause of the strong and regain their lost Senate majori• tain and France met in New York dollar. Without such measures the ty by adopting favourable trade to discuss measures to devalue trade imbalance will remain intact, policies. the dollar in order to enhance the as will protectionist fever.

December 9, 1985 33 SPORTS Women Spikers Add One More Title

China's women's volleyball when one of its ace spikers, Zhang M,;izhu, Yang Xiaojun and team spiked its way to another Rongfang, and other veterans like Liang Yan fused to shoot the team trophy during the Fourth World Zhou Xiaolan, retired from the heads and tails above its compe• Cup tournament held in Japan court. At the same time, the team's titions. During the three straight from November 8-20, marking the seasoned head coach. Yuan Wei- set victory over the Soviet team, team's fourth consecutive victory min, also stepped down, giving his China slammed down 22 points by since winning the Third World post to his assistant, Deng Ruo- spiking, blocking the net and keep• Cup in 1981, the Ninth World zeng. Yuan has since been promot• ing errors to a minimum. Tournament in 1982 and the gold ed to the job of vice-minister of Since the Los Angeles Olympic medal in the 23rd Olympic Games. State Physical Culture and Sports Games, almost every team has gone Commission. But worse than hav• through some adjustments, making The recent victory was an impor• ing suffered these losses, the team many of this season's teams tant one recognized by the Interna• also had to withstand psychological younger and less experienced than tional Volleyball Federation, whose pressure imposed by China's now before. China's former coach Yuan president, Ruben Acosta said Chi• lofty expectations. na's women's volleyball team has Weimin said because of youth and To warm up for the tough cam• inexperience, the Soviet team failed it long been considered the model t team in world volleyball circles. paign in Japan, China's team par• to make the most of the talent in K China's victory, Aeosta said, is not ticipated in the Japan Cup this its two key matches against China simply a victory over another team, April, the Xinmin Evening News and Cuba. As for Cuba, China's but a celebration of the ordeal the Cup in Shanghai and Beijing's arch rival. Yuan said, though it tt. team has gone through to reach its Seagull Cup. They also toured the was strong in offensive, the team current level of play. German Democratic Republic and still had not reached the level ex• + Cuba, volleyball in tow. This hibited by the US team during the Hi The team underwent a serious August the team moved to Xin- 1984 Olympic Games and at the shake-up following last year's cheng City in northeast China for last World Cup tournament. K Olympic games in Los Angeles, intensive summer training. During One point noticed during this A training, they often had i tournament was the players' stature Chinese team via Japanese team to battle from behind, and health, which seemed much on November 20. with scores of 10 to 14, improved, especially among the using their prowess Latin American players. Some a and their wits. Be• Cuban, Peruvian and Brazilian * cause of such arduous players nearly matched their male training, the team was counterparts when it came to skill well-prepared for their and ballhandling. grueling matches jwith the powerful Cubans In the 10th World Volleyball and Soviets, - Championship to be held next No• vember, China will face Latin Am• China's performance erica, the tall European spikers and the Soviets. To hold its lead, Chi• in the recent tourna• na's women's team should waste ment proved the team no time in developing its already to be one step closer remarkable skill. to its peak. Besides tl f the might of spiker At the end of this year, there will be two exhibition matches be• Lang Ping's hard tween China's women's team and il hammering, the dy• an all-stars team made up of the namic and diversified strongest players from nine •t m techniques of Zheng countries.

Beijing Review, No. 49 1

ART PAQE

Sculptures by Lin Yuhao

Born in 1940 in Guangdong Province, Lin Yuhao is now working in Guangzhou's Sculp• ture Studio. Skilled in figure sculpting, Lin's works capture his subjects' true personalities.

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