CHINESE WEEKLY OF NEWS AND VIEWS I' Vol. 31, No. 46 November 14-20, 1988 Reunderstanding Capitalism and What It Offers China Capturing a unique scene. Wang Wenlan HIGHLIGHTS OF THE WEEK BeijingR«?it^ Reunderstandlng Capitalism VOU 3i, NO. 46 NOV. 14-20 • In a frank and. systematic appraisal of modern capitalism. CONTENTS Xu Jiatun, head of the Xinhua News Agency's Hong Kong NOTES FROM THE EDITORS 4 branch, calls for the rejection of stereotyped views of capitalist societies. He acknowledges that great changes have taken place Public Tip-Offs Aid Drive in their social and economic practices, and that they still possess Against Corruption a large potential for developing their productive forces. Xu also EVENTSARENDS 5-9 claims that capitalism's positive features and achievements should be assimilated into the task of building socialism with Revving Up Rural Reform . Chinese characteristics (p. 18). Foreign Contracts Will Be Respected UN Awards Disability Worker Thrcc-Gorgcs Plan: Public Tip-offs Aid Anti-Corruptlon Drive I-inalization Needed Pugwash Ponders Regional • This year. 900 corruption reporting centres have opened Peace across China to collect and process information supplied by the Wccklv Chronicle public about official malfeasance. The centres have both played (Oct. 31-Nov. 6) a major role in the recovery of millions of yiian's worth of goods INTERNATIONAL 10-13 and money and helped to promote clean government. The Supreme People's Procuratorate is now drawing up a series of r\ Nations Rally: regulations to standardize corruption reporting work across Middle East: Tripartite the country (p. 4). Talks Promote Peace FRG-USSR: Kohl Visit Warms Relations Israel: Major Parties Vic for Privatization of Urban Housing Swing Votes The Privatization of Urban • Until now, housing provision in China's cities has alwasy Housing 14 been regarded as a welfare service. Bui the Chinese governmern Documents: Report to the is currently planning to put hall" of the country's 2.4 billion Third Plenary Session of the square metres of public housing up for sale. Us oserall goal is 13th CPC Central Committee converting the heavily subsidized hose-building industry into a (Centrefold ) self-financing business (p. 14). ReunderstandJng Capitalism 18 China's Elderly Surveyed 22 Causes Given for Income Zhao's Report to 3rd Plenum of the CPC Unfairness 25 Facts & Figures (Decade of Chinese Party leader Zhao Ziyang delivered a report to the Reform VIII): Changes Third Plenary Session of the 13th CPC Ccntial Committee on in the Life-Style of Urban September 26. The report, recently published in Chinese Residents 26 newspapers, dealt with three major issues improving the FROM THE CHINESE PRESS 28-29 economic environment and rectifying the economic order; BUSINESS/TRADE 30-31 promoting comprehensive reform systematically and under CULTURE/SCIENCE 32-33 unified leadership; and strengthening Party leadership. Full TOURISM 34 text of the report (Supplement). COVER: New high-rise apart• ment bkx;ks in Beijing. Xue Chao Published every Monday by General Editorial Office Tel: 8314318 Subscription rates{1 year): BEIJING REVIEW English Dept Tel: 831.5599 Ext, 646 Australia A.$29.00 USA.. US$29.00 24 Baiwanzhuang Road. Distributed by China International Book New Zealand... NZ.$39.00 Canada Can.$25.00 Beijing 100037 Trading Corporation (GUOJI SHUDIAN) The People's Republic of China UK £14.50 P.O. Box 399, Beijing, China m NOTES FROM THE EDITORS Public Tip-Offs Aid Drive Against Corruption China has made great achievements in reform and opening to the outside world in the last ten years. But some government employees have taken advantage of the reform programme and the open policy to abuse their powers for personal gain. Such malfeasances have hindered economic development and the implementation of various reforms. They have also tarnished the reputation of the Party and the government, and generated strong feelings of resentment among the people. The corruption report system has been one of the country's responses to the problem. by Li Li ince China's first corruption the Party and the judiciary have Supervision's hotline received an Sreport centre was opened by acted in unison. On June 29, the average of 44 calls a day in its first the Shenzhen Municipal People's Supreme People's Procuratorate 13 days of operation. Procuratorate in Guangdong opened its anti-corrupfion tele• Among the many problems earlier this year, another 900 have phone hotlines, and the chief and exposed have been: official abuse sprung up across the country. deputy chief procurators de• of power for personal gain, Acting on tip-offs from the public, manded daily reports on progress. acceptance of bribes, bureaucrat• they have already handled more On August 4, the Ministry of ism, dereliction of duty, the than 40,000 cases of corruption, Supervision established a series of protection and cover-up of embezzlement, bribery and other corruption report centres to corrupt officials, and infringe• crimes. In addition to clamping handle information and charges of ments on citizens' rights. The down on illegal activities, their administrative breaches of the law guilty have included leading very effectiveness has played a or discipline. officials. Party members and legal positive role in the supervision of personnel. officials and the promofion of In early September, the CPC The overwhelming majority of clean government. Central Commission for the the information has come from Corruption has manifested Inspection of Discipline re• cadres, workers, sales clerks and itself in China alongside the great published in Renmin Ribao residents, but perhaps the most achievements of the last ten years. (People's Daily) its Regulations significant tips have been provided Some government employees have on the Handling of Reports, by accountants, treasurers, en• taken advantage of the reform Accusations and Appeals which it trance guards and drivers — many programme and the open policy to had adopted in 1987. These state of whom gave eyewitness reports abuse their powers for personal that it is impermissible to suppress of illegal acts. Most of the gain. Such malfeasances have or harass anyone who exposes or informants supplied their names, hindered economic development accuses Party members or work units and addresses, and said and the implementation of various organizations guilty of corrup- that in protecfing the interests of reforms. They have also tarnished fion, and anyone who attempts the state they were not afraid of the reputation of the Party and the such actions should be dealt with retahation. government, and generated strong severely. feelings of resentment among the The public have proved en• To process the informafion people. thusiastic participants in the crime provided by the public. China's The corruption reporting sys• reporting system. When the procuratorial bodies have organ• tem has been one of the country's Guangzhou Municipal People's ized special teams. The Supreme responses to the problem, along Procuratorate opened its centre on People's Procuratorate issued a with measures to strengthen June 1, people queued up outside special circular in October urging China's legal system, oversee the the gate to pass on information procuratorial bodies to handle strict enforcement of laws and before it started work. The cases based on public information. impose Party and administrative Shanghai Procuratorate's centre This has raised the public's discipline. To ensure the system handled 1,937 cases within its first confidence in the system — as works effectively, the government, 48 days, and the Ministry of have some of the major cases that 4 BEIJING REVIEW, NOVEMBER 14-20, 1988 EVENTSARENDS have been uncovered and pros• ecuted. Between June and Septem• ber, the Linfen Municipal Pro- Revving Up Rural Reform curatorate in Shanxi Province recovered around 50,000 yuan by ural reform needs to be According to stafistics, in 1984, pursuing reports of 22 economic Raccelerated in order to increase China's grain output hit the all- crimes. Acting on a series of tip- agricultural production, especially fime high of 407.3 million tons. offs, Wuxi Municipal Procurato- grain producfion, by 1991, or Since then the country's grain rate in Jiangsu Province un• before the Eighth Five-Year Plan production has stagnated and covered one case of embezzlement begins, according to Vice-Premier failed to meet the state plan. involving 500,000 yuan of public Tian Jiyun. "These problems, if not solved funds. Speaking on November 2 at a soon, will hamper the country's Between March and August, national agricultural work meet• reform, the development of the Shenzhen, Guangzhou and Shan- ing, convened by the Central national economy, and the tou in Guangdong Province Committee of the Chinese stability and improvement of investigated 183 reports of Communist Party (CPC) and the people's living standards," Tian malfeasance. Although 30 have State Council, Tian said China's stressed. been placed on file for further rural economy has made notable investigation, already several progress in the past decade. He pointed out that agriculture hundred thousand yuan's worth For instance, China's grain is the basis of the country's of goods have been recovered and production in 1987 totalled 400 national economy, and grain is the activities costing the state 7 million tons, a 32 percent growth basis of agriculture, so it must not million yuan have been stopped. over 1978, and the average per- be neglected. Following this opening round capita income in rural areas in Although the country's of success, the problem facing 1987 showed a 2.5-fold increase economic growth rate will be China's anti-corruption drive is over 1978. decelerated and capital construc• how to maintain momentum. A However, there are still pro• tion reduced somewhat in the next national corruption reporting blems in agriculture that cannot be two years, Tian said, agricultural work conference held in Shanghai ignored, and of eminent concern is development, especially grain and in mid-October both summarized the gap between demand and cotton production, will be stepped major achievements of the past supply in the grain sector, Tian up.