Between May and August of this year, a scientific investigation team organized by the state made the first comprehensive investiga• tion of Hoh Xil, an uninhabited area on the Qinghai-Tibetan Plateau. The team's findings lift the veil of this area known as "a mysterious land." Rising on an average 5,000 metres above sea level, Hoh Xil covers a total land area of 250,000 square kilometres. In addition to the varied icebergs, lakes, marsh and hot springs, there are many types of wild animals and hardy plants. 1. Top: The lofty Kunlun Mountains zig• zag through the Hoh Xil area. 2. Centre: A herd of wild yaks. Many rare animals including the wild yak, Tibetan ante• lope and wild donkey roam about this "natural paradise for wild animals." 3. Bottom Left: A massive glacier on the Kunlun Mountain. Photos by Ma Qianli Beijing«^!!- VOL. 33, NO. 48 NOV. 26-DEC. 2, 1990 President Yang on China's Reunification CONTENTS • In an interview with the Taiwan-based China Times, Presi• dent Yang said he would like to see the two sides of the Taiwan Straits reunify as soon as possible under the concept of "one country, two systems." The first thing right now for both sides, the President said, is to initiate direct exchange of mail, trade NOTES FROM THE EDITORS 4 and air and shipping services and establish channels to facili• tate direct talks between the two sides, (p. 7). China's Economy Out of Slump EVENTS/TRENDS 5-6 The Strengttis and We<dcnesse$ of Soclaiism Busy Season for Chinese • This is the second part of Chinese scholar He Xin's talk with Diplomacy Japanese economist Yabuki Susumu. He believes China's cur• Tibetan Population Outgrows rent problems are part of an economic cycle which can be Average resolved by state regulation. He notes that China's effective Science, Peace Week in Beijing resistance to crisis-oriented changes has ensured social and economic stabihty and that events in Eastern Europe do not herald the end of socialism (p. 14). CHINA Yang Shangkun on China's Reunification 7 China's Economy: Out of the Slump The Advantages and • With the successful economic readjustment and deepenig Disadvantages of reform, China's economy has quickly picked up, evidenced by Socialism—Chinese scholar He an increase in the gross national product. The national econo• Xin's Talk with Japanese my, now out of the slump, has taken a turn for the better. Still, Professor Yabuki Susumu (H) 14 some outstanding problems, like the sluggish market and re• Reform Brings Vigour to Road duced economic efficiency, need to be resolved in order to Construction 20 maintain steady economic growth (p. 4). INTERNATIONAL Road Building in China Albania: New Changes in Diplomacy .[f, 26 • The reform programme has given an impetus to the con• Mexican Economy Comes to Life 27 struction of highways, including expressways, in China, which, in turn, has greatly promoted the country's economic develop• BOOKS 28 ment and further opening up to the outside world <p. 20). BUSINESS/TRADE 29-31 CULTURE/SCIENCE 32-34 Tibetan Population Outgrows Average COVER: The Dayangfang Overpass on D According to this year's census, Tibet's population has the Beijing—Tianjin—Tanggu express• increased at a rate above the national average, reaching 2,196,- way. 010. The population increase is due to relaxed family planning Photo by Song Lianfeng policies and improved conditions in public health and living standards, (p. 6). General Editorial Office Published every Monday by BEIJING REVIEW Subscription rates (1 year): Tel; 8314318 24 Baiwanzhuang Road, Beijing 100037 Australia.. ..A.$ 30.50 TLX: 222374 FLPDA CN The People's Republic of China New Zealand ..NZ.$40.50 FAX: 8314318 Distributed by China International Book UK ..£16.50 English Dept. Tel: 8315599 Ext. 546 Trading Corporation (GUOJI SHUDIAN) USA.. US$30.50 P.O. Box 399, Beijing, China Canada. ..Can.$30.50 NOTES FROM THE EDITORS China's Economy Out of Slump by Li Yongxia hina has successfully im• ed that total grain output for the crease in the nation's foreign ex• proved the economic envi• year will top 420 million tons; change reserves was the largest ronment by rectifying the both total output and per-hectare since since 1985. Ceconomic order and deepening the yield reaching new records. Rich With the upturn of domestic reform. As the factors restricting harvests were also reported for consumer demand, the total value production and circulation have such major cash crops as cotton, of retail sales of commodities wit• been gradually eliminated, the oil- and sugar-bearing crops. nessed a growth of 3.6 percent economy has speeded up its recov• Construction of key projects in September compared with the ery. The gross national product has picked up and there has been same period last year. (GNP) reached 1,197.7 billion a successful readjustment of the The rate of retail price increases yuan in September, a 2.7 percent investment structure. Between has gone down monthly. Between increase over the same period last January and September, an in• January and September, the total year, indicating that the economy vestment of 26.8 billion yuan, or retail sales price level rose 2.3 per• has gotten over its slump and tak• 67.2 percent of that planned, has cent from the same period last en a turn for the better. been made for construction of 200 year, the lowest rate since 1985. The speed of industrial produc• key state projects, exceeding the Although the economy is now tion began to pick up in ^arch, 57 percent rate of national invest• out of a slump, there are still increasing from -0.9 percent to 1.4 ment for capital construction. difficulties, the most notable of percent in March and up to 12.7 The construction of energy and percent in October, gradually communications projects has been which are: reaching the level of a normal strengthened, although the pro• Market sales remain weak. Be• year. Between January and Sep• portion of investment in ordinary tween January and August, the tember, the output of coal, crude processing industries has dropped. total retail sales value was down oil, pig iron, steel, rolled steel, Between January and Septem• 1.19 percent from the same period coke, sulphuric bcid, chemical fer• ber, among investments in units last year; the sales value of the tilizer, farm chemicals and gener• owned by the whole people, the consumer goods market was down ated power output all increased value of investment made in ener• 1.3 percent; and that of the capital slightly over the same period last gy industry went up 22.1 percent goods market by 5.9 percent. year; the output of cement, plate from the same period last year, its Serious overstocking of finished glass, generating equipment, proportion to the total investment products. The value of finished machine tools, automobiles, mini- rising from 26.7 percent to 36.3 products of budgeted state-owned tractors and rolling stocks, on the percent, the highest ever since the industries reached 109.7 billion other hand, dropped somewhat. 1980s. The value of investment yuan by the end of July, up 34.5 Between January and October, the made in transportation and te• billion yuan from the same period nation's industrial enterprises at lecommunications climbed 16.3 last year, a 45.9 percent increase. and above the township level re• percent, its proportion increasing A slip in economic returns. Be• gistered a total output value of from 13.5 percent to 14.6 percent. tween January and September, 1,571.6 billion yuan, up 4.1 per• The nation's balance of pay• profits and taxes registered a de• cent from the same period last ments has notably improved and crease of 21.5 percent, of which year. The mix of industrial prod• foreign exchange reserves have profits made up 57.9 percent. The ucts was readjusted and the prod• picked up. According to customs number of loss-making enterprises uction of products needed in the statistics, between January and and the value of losses both in• market remained stable. September, the total value of ex• creased. There was an all-round rich ports was US$41.4 billion, up 14.2 The state's financial difficulties agricultural harvest, putting an percent from the same period last increased. Between January and end to the fluctuation of a few year; the total import value was August, domestic financial in• years ago. The summer grain yield US$36.5 billion, down 14.6 per• come increased by 13 percent over reached an all-time high of 99.35 cent, eliminating a balance of pay• the same period last year but ex• million tons. A good autumn har• ment defict which has continued penditures increased by 18 per• vest is also expected. It is estimat- for several years running. The in- i cent. 4 BEIJING REVIEW, NOV. 26-DEC. 2, 1990 EVENTS/TRENDS The emphasis of current econo• mic work is on getting the market in gear. Using structural readjust• Busy Season for Chinese Diplomacy ment and efficiency improvement as our focus, we should bring ovember 11-17 was a busy Jiang told Soeharto that about a moderate increase in week for Chinese diplo• China has ah/ays believed coun• production. N macy. On November 14 tries should handle their rela• The solution to the problem of alone, China hosted four visit• tions in accordance with the a sluggish market lies in readjust• ing dignitaries. Five Principles of Peaceful ing both the product mix and the The dignitaries included In• Coexistence.