Vol. 28, No. 37 September 16, 1985 BE IJING ^^^-j^-^ A CHINESE WEEKLY OF £VIEW NEWS AND VIEWS Yc!ei Plan Owerfulfilled Making lew iiiiprint at OPO Oonference A Typical Wulii^g Scene There is magical place for tourism in the depths of the Wuling Mountains, located in the northwestern part of Hunan Province. This picturesque place in• cludes the Zhangjiajie State Forest Park in Dayong County, the Suoxiyu Natural Scenic Spot in Cili County and the Tianiishan Naturol Scenic Spot in Sangzhi County. A scene of Nantianmen in the Tianzishan Natural Scenic Spot. A sea of clouds over peaks in Ridges and peaks. Suoxiyu Natural Scenic Spot. The Mengdong River in the Zhang- jiajie State Forest Park. Huanglong Cave, one of the karst caves in Hunan. SPOTLIQHT BEIJING n REVIEW HIGHLIGHTS OF THE WEEK Vol. 28, No. 37 September 16. 1985 Meeting Heralds Complete Success CONTENTS The Party conference, scheduled for this month to discuss the CPC Central Committee's proposals for the Seventh Five- NOTES FROM THE EDITORS 4 Year Plan and name younger personnel to the Party's leading Meeting Heralds New Success bodies, will lead the economic reforms to complete success (p. 4). LEHERS 5 EVENTS & TRENDS 6-10 Economy Girded to Beat Deficit Sixth Five-Year Plan Succeeds Spending Controls Holt Construc• tion With some quotas fulfilled and others overfulfilled, the Thousands Battle Northeast Floods success of the Sixth Five-Year Plan is reviewed when it is Modern Heroes for New Age drawing to a close by the end of 1985 (p. 14). INTERNATIONAL 11-13 United States: Sanctions Against S Africa Ordered Recent Transformations in Tibetan Life Nigeria: New Coup Brings High Hopes What has happened to Tibet's former serfs and slaves in Geneva: For Equal Use of Space the past 25 years? How are the one-time nobles faring now and Sea that their days of privilege have ended? Our correspondent US-USSR: Flexing Pre-Summit attempts to answer these questions in this second part of her Muscle report on her recent trip to Tibet (p. 15). Sixth Five-Year Plan Succeeds 14 Visit to Tibet (II): Ex-Serfs and Serf- Ownets Speak Out \5 Third World Also Has Right to Use Space and Sea SPECIAL REPORT A few developed countries have occupied most of the China's Administrative Regions: available orbits and radio frequencies, the property of all na• Hunan: Agriculture Enjoys Priority 20 tions, leaving few for the developing countries in spite of their growing need for satellites. The same holds true with the SPORTS 27 exploration of undersea resources, which also has met strong FROM THE CHINESE PRESS 28-29 third world protests (p. 12). BUSINESS & TRADE 30 31 CULTURE & SCIENCE 32-33 Hunan Economy Still Based on Agriculture BOOKS 34 Favourable natural conditions, abundant resources and COVER: The steep and towering hills of good tourism potential herald a major economic take-off for Cili County in Hunan Prcince. Hunan Province, which still stresses the development of agri• Photo / Li Zhenting culture (p. 20). Published every Monday by Distribution and subscriptions handled by Subicrlptlon price* (1 yaar)i BEIJING REVIEW China International Book Trading Australia A.$ 14.00 USA USS 18.00 24 Baiwanzhuang Road, Beijing Corporation (GUOJI SHUOIAN), New Zealand NZ. $18.00 UK t8.00 The People's Republic of China P.O. Box 399, Beijing, China Canada Can. $15.00 Meeting Heralds New Success consumption levels of urban and of capital construction, the too by JIN Ql rural residents is expected to grow rapid growth of consumption Economic Editor at an average annual rate of 7.5 funds, the issuance of too much percent, and there are good pros• currency and excessive credits. The forthcoming National Con- pects for production, distribution, Effective measures have been fei-ence of the Chinese Communist circulation and consumption. taken to remedy this situation Party, scheduled to discuss and which added to the difficulties adopt proposals put forward by By the end of the five-year of the reform drive. the Party Central Committee for period, it is estimated that the the Seventh Five-Year Plan (1986- state's annual revenue (both na• The Seventh Five-Year Plan will 90) for the nation's economic and tional and local) will have doubl• lay a solid foundation for vigorous social development, and name ed. The huge deficits incurred at economic development in the new, younger personnel to the the end of the 1970s may be 1990s and accumulate reserve Party's leading bodies, will be one eliminated in 1985. Foreign trade strength. The key to achieving of historic significance. will also have doubled, and this, lieSk..in. making,,the urban re• China's balance of payments will forms and the reform of China's It is expected that the session show a surplus. scientific research and educational will draw up a development blue• systems a success. As Premier print for China's socialist moderni• The above facts show that the Zhao Ziyang said, this plan is, in zation. It will elect more dedicated tasks set by the 12th National a sense, a plan for reform. and talented leaders and carry the country's economic reforms, Party Congress have been fulfilled Experts think that creating which have made great break- in terms of fundamentally improv• a more relaxed economic througlis in the countryside and ing the economic situation. environment in terms of ma• are now under way in urban areas, These achievements can be at• terial, financial and human re• to complete victory. tributed to the country's economic sources is indispensable to the reforms. But urban reform, which steady progress and success of the The conference is to be held at was iriiplemented nationwide reform. This requires us to slow a time when the Sixth Five-Year only last October, is far more com• China's economic growth, which is Plan (1981-85) will be overful• still too fast, arjd to determinedly filled. In the first falf of the dec• plicated and difficult than rural emphasize improving the quality ade, the average annual economic reform, and the decisive price and of products and the economic ef• growth rate has been estimated at wage adjustments have just begun. ficiency of factories. above 10 percent. This figure not As a result of the separation of only far exceeds the original plan• government administration from Also obviously, it is necessary to ned target of 4 percent, but has enterprise management, the dele• curtail the total scale of capital topped the average annual rate of gation of more decision-making construction. Efforts should focus 7.2 percent necessary for achieving power to the enterprises, the open• on speeding the development of the goals set for this century. ing of domestic markets and the energy, communications, raw ma• diversification of market bases terials and other basic industries, Agriculture, light industry and abroad, the microeconomy has and the construction of infrastruc- heavy industry, which were pre• been invigorated. But many prob• tural facilities. At the same time, it viously seriously disproportionate lems concerning how the state tan is necessary to press ahead with in their growth, have now embark• properly use economic levers and upgrading the technologies of ex• ed on the path of sustained, steady legal means to balance and co• isting er '"rprises and the replace• and proportionate growth; the ordinate the development of dif• ment of outdated equipment, and construction of key projects in ferent macroeconomic sectors re• to tap production potential. energy, communications, and raw main to be solved. For a short time It is expected that the reforms materials exploitation has been ac• the economy overheated due to will continue to centre around in• celerated. After deducting such the excessive speed of industrial vigorating China's enterprises, factors as price hikes, the actual development, the overly large scale especially its large key enterprises. 4 Beijing Review, No. 57 LETTERS China's Ultimate Goal reality, and attempt to set the re• forms against the socialist system. In my opinion, your reports on Their attempts will be smashed by the speeches delivered by Deng the essence of the reform and the The domestic market will be Xiaoping are very good. These course of history; facts will even• further opened, and a greater play speeches elaborated the general tually scotch these rumours. should be given to the role of principle of the "second revolu• As for the open policy, I care• market regulation. The planned tion," which refers to the reform fully read the sections entitled economy, based mainly on manda• drive and its progress in the Peo• "Fear of Capitalism Not Neces• tory planning, will gradually be ple's Republic of China. I think sary" and "Uphold Marxism in changed into one based mainly on all these reports have dealt with Opening the Country" in the arti• state guidance. The government's the fundamental nature of social• cle "Open Policy Essential to So• major management method will ism in the '-'second revolution." In cialism." I also read a few para• also change from direct control by the article "China Upholds Com• graphs about self-reliance and the administrative means to indirect munism," Deng reaffirmed that open policy in this article, which control by economic levers and China sticks to the lofty ideal of proved that self-reliance and the legislation. Of course, some ad• communism and the socialist sys• open policy complement one an• ministrative interference is still tem. other. China will always, not only needed, especially in the process today but also in the future, up• of replacing the old economic Three articles in your magazine, hold its policy of self-reliance — a structure with the new.