Chiang Ching-Kuo the Relation Between Planning and Market a Monk Meets the Camera
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Chiang Ching-kuo The Relation Between Planning and Market A monk meets the camera. BeijingR^'r HIGHLIGHTS OF THE WEEK Government Bodies to Be Revamped VOL. 31, NO. 15 APRIL 11-17, 1988 • State Councillor Song Ping makes a report to the National CONTENTS People's Congress explaining the proposal for restructuring the State Council. Under the proposal, the State Council will NOTES FROM THE EOITOIIS 4 reduce the number of ministries and commissions to 40 from Aquino Comes to Promote the current 45 (p. 5). Relations EVENTSARENDS 5-9 Taiwan's Situation After Jiang Ciiing-kuo Government Bodies to Be Restructured • An analytical article by the deputy director of the Taiwan NPC Examines Draft Amendment Affairs Research Institute predicts the coexistace of both stable Li Calls Session on Rail and disruptive factors in Taiwan's political situation in the Accident post-Jiang Ching-kuo era. In the short term, stability will CAFIU Promotes International override any unrest, but in the long-term there will be a reversal Ties of this situation (p. 14). Bainqen Reaffirms Policy on Dalai Weekly Chronicle (March 28-April 31 Philippine President Visits China INTERNATiONAL 10-13 France: Tough Electoral • China and the Philippines have a tradition of friendly Contest Under Way relations. People hope that Philippine President Corazon Nicaragua: Truce Pact Aquino's visit to Beijing will further consolidate and strengthen Promotes Peace Process such relations and promote bilateral co-operation in all fields Israel-South Africa: Military (p. 4). Collusion Is Reprehensible Taiwan's Potttical Situation China's Expanding Ocean-Going Fleets After Chiang 14 Relations Between banning • While the world's shipping industne were languishing in the And IMaritet 19 doldrums in the 1980s, China's shipping business has been Cliina's Ocean-Going Fleets 22 booming. Its ocean-going fieets, with a total deadweight Experts and Scttolars on Reforms 25 tonnage of 17 million, are now recognized as a major force challenging the traditional ocean shipping powers (p. 22). FROM THE CHINESE PRESS 2728 BUSINESSARADE 29-30 BOOKS 31 The Relation Between Planning and IVIarket CULTURE/SCIENCE 32-34 • The socialist commodity economy China is pursuing calls COVER: N!'C deputies Cai Zimin, Lin for the reduction of mandatory planning and an increased Liyun, Zhang Qia and Tian Fuda (right regulation by market forces. According to an official from the to left), all natives of Taiwan, visit the State Commission for Restructuring Economic Systems, both Taiwan Affairs Research Institute. can be effectively applied in an economy dominated by public Xu Jaangjun and Xue Ciiao ownership (p. 19). Subscription rates (1 year): USA.. ... US$24.00 Published every Monday by General Editorial Office Tel; 8314318 Agstralla . A.$24.00 ..Can.$23.00 BEIJING REVIEW English Dept Tel: 831.5599 Ext. 546 New Zealand NZ.$33.00 24 Baiwanzhuang Road, Distributed by China International Book UK. £13.00 Beijing 100037 Trading Corporation (GUOJI SHUDIAN) The People's Republic of China P.O Box 399, Beijing, China • NOTES FROM THE EDITORS Aquino Comes to Promote Relations by Our Guest Commentator Gao Shixing hilippine President Corazon local reporters in Manila that she initiated a privatization pro• PAquino will visit China from wished to visit China to promote gramme, and adopted new April 14 to 16 at the invitation of the historic good relations be• investment code to provide the Chinese government. The tween the two countries. "Since incentives to investors. relationship between China and China is one of our neighbours, it Although the pace of invest• the Philippines is rooted in the is only natural that I go there to ment has been slow, the govern• countries" historical and geo• establish better relations with our ment plans to absorb investment graphical propinquity and their neighbour." of USSl billion in 1988, double common interests. Since diploma• last year's figure. The target She also said she wanted to visit tic relations were established in industries for investment are her great grandfather's home 1975, progress has been made in electronics, textiles, clothing, food village of Hongjia, near Quanz- developing friendly relations and production and processing, auto• hou, Fujian Pro.vince. bilateral co-operation. motive components and chem• With the formation of the icals. Industrial rehabilitation and Aquino government, opportun• modernization are also priorities. ities to consolidate and strengthen The government's economic ties increased. Since Aquino came to reforms have enabled the national In June 1986. Philippine Vice- economy to grow, in sharp President Salvador Laurel visited power in February 1986, the contrast to the contraction which China, and in September of the relations between China and hit the economy for three same year, Chinese Vice-Premier the Philippines have been consecutive years before Ferdin• Tian Jiyun visited the Philippines. strengthened in political, and Marcos was ousted. During these visits the two sides economic and cultural fields. The country's export earnings exchanged views on international in 1988 are expected to increase by and regional issues of mutual US$ 1 bilhon from US$5.2 billion concern. On many of the issues, in 1987. But the tremendous their views converged. Since Aquino's government problem of foreign debt totalling assumed power in a civilian- Both sides are interested in US$28 billion exerts enormous backed military uprising, it has seeking new ways to develop pressure on economic obtained initial results from its bilateral economic and trade development. efforts to steer -the Philippines relations, such as through barter On the social front, the towards constitutional rule and trade. Among the topics Aquino government has increased salaries economic recovery. The Aquino planned to discuss during her visit for the more than 1.2 million government has basically held its is the Philippines' trade deficit government employees to offset political ground since it came to with China. continued inflation. The govern• power, and the political situation ment aims to create 1 million jobs Since China adopted the policy is tending to improve in the wake this year. of opening up to the outside world of five crushed military coup Despite progress in all these in the late 1970s, it has been attempts. A new constitution is in fields, the Aquino government still seeking to expand its economic force, a new Congress is faces a lot of problems. It is our relations with other countries, functioning, and local elections hope that her administration will including members of the neigh• were held on January 18. successfully address these pro• bouring Association of the On the economic front, the blems and lead the nation to Southeast Asian Nations. government has lowered soaring greater political stability and President Aquino recently told inflation, dismantled monopolies. economic development. • .4 BEIJING REVIEW, A'PRIL'H-.ii7, 1988 m EVENTS/TRENDS ••MBWMMIIIil^^ Government Bodies to Be Restructured proposal to restructure gradually become indirect. A China's State Council will reduce the number of ministries To reduce the number of and commissions to 40 from the management levels, new ministries current 45, State Councillor Song and commissions will have only Ping said. two levels — bureaus and sections. Song told the Seventh National The establishment of the 10 new People's Congress (NPC) on ministries and commissions March 28 that under the proposal, should be completed three months 14 ministries and commissions will after the NPC session approves be abolished and 10 new ones will the proposal. be set up, while 30 ministries and commissions will be retained. In addition to 45 ministries and Xinhua, China's official news commissions, the State Council is agency, will be placed directly currently composed of 22 bureaus under the State Council. and five working offices. Its staff With the broadening of the totals more than 50,000 people. economic reform. Song noted, the There are also 14 bureaus directly defects of the present government run by ministries and commissions setup are becoming increasingly and 75 ad hoc groups. evident. These include non- separation of government and XUE CHAD The restructuring will reduce enterprise functions, irrational State Councillor Song Ping delivers a the State Council staff by about structure, overly rigid micro- report on the proposal for restructuring one-fifth or 10.000 people. Song management, insufficient macro- tlie State Council. said. Some current staff members control, overlapping institutions, will be transferred to units relating overstaffing, similarity of func• to taxation, finance, prices, tions and duties, and low working compared with the government auditing, supervision, statistics, efficiency. streamlining of 1982. the administration of industry and "We will not simply abolish commerce, and law enforcement. "Without restructuring the some offices, merge others and cut Many will join companies, government organs, the economic back staff. Instead, we will associations, social groups and reform cannot be carried out in a introduce changes to their func• institutions involved in inform• deep-going way, nor can the tions, according to the principle of ation, consultancy and research. achievements of the economic separating the functions of Some with professional knowl• reform be consolidated. And government from those of edge and managerial expertise will many measures for reforming the enterprises." work in enterprises.