Daily Report—

Daily Report China

FBIS-CHI-94-104 CONTENTS 31 May 1994

NOTICE TO READERS: An * indicates material not disseminated in electronic form. INTERNATIONAL AFFAIRS General

Spokesman Views Hungarian Election, Cambodia Talks /XINHUA] Li Peng Meets With World Bank, Co-Financing Bank Officials /XINHUA] Envoy to UN Calls For ‘Dialogues’ on DPRK Nuclear Issue /XINHUA] Secretary General of World Women’s Conference Arrives /XINHUA] Woman Diplomats, Envoys’ Wives Discuss Family, Women Issues /XINHUA] Peng Peiyun Discusses Women’s Conference With UN Official /XINHUA] Chen Muhua on Importance of World Women’s Conference /XINHUA]


Reform Conference Participants Zou Jiahua Says Sino-Foreign Cooperation Mutually Beneficial /XINHUA] United States & Canada

Spokesman Asks U.S. To Stop Official Contacts With Taiwan /XINHUAj Justice Ministry Says U.S. Rejects Prison Exports Claim /XINHUA] More on Report {XINHUA Sources See ‘Restrained’ PLA Reaction to Arms Import Ban [Hong Kong SOUTH CHINA MORNING POST 28 May] Column Calls U.S. Action “Wise Decision’ /Hong Kong TA KUNG PAO 28 May] Editorial Sees Mutual Benefit in MFN Decision /Hong Kong WEN WEI PO 28 May] PLA Leader Meets U.S. National Defense University Guests /XINHUA] President Jiang Zemin Meets U.S. Oilman /XINHUA] Li Peng Views International Securities Firms Cooperation /XINHUA]

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Central Eurasia Jiang Zemin Meets Russian Prime Minister /X/NHUA] 9 Chernomyrdin Sees ‘Bright Future’ for Sino-Russian Ties /XiNHUA] 10

Russia’s Chernomyrdin Departs Beijing for Shanghai /X/NHUA] 11 XINHUA Publishes Sino-Russian Communique 11

Leaders Express Satisfaction With ‘Effective Cooperation’ /XINHUA] 12 Russia’s Chernomyrdin Returns to Moscow, Views China Visit /XINHUA] 13 More on Chernomyrdin’s Comments /XINHUA] 13 Southeast Asia & Pacific Li Peng, Malaysian Leader Exchange Letters on Ties /XINHUA] Malaysian Leader Confident of Increase of Ties /XINHUA] 14 PLA Logistics Commander Meets Australian Guests /XINHUA] wee 14 East Europe PLA Deputy Chief, Bulgarian Deputy Defense Minister Meet /XINHUA] 14 Chi Haotian Meets Bulgarian Visitors /X/NHUA] 14 Ministry of Supervision Delegation Visits Czech Republic /XINHUA] 14 Qian Qichen Receives Croatian Businessman /X/NHUA] 15

Republic of Macedonia To Open Embassy in Beijing /XINHUA] 15


31 May 1994 2 China Polish Official Discusses Upcoming Visit to China /XINHUA] 15 Qian Qichen Meets Visiting Polish House Speaker /XINHUA] 15 Qiao Shi Meets Oleksy /XINHUA] 15 Polish Speaker Calls For Strengthened Ties With Beijing /XINHUA] 16 Romanian Parliament Leaders Receive Chinese Delegation /XINHUA] 16 State Councillor Song Jian Meets Slovakian Visitors /XINHUA] 16 NATIONAL AFFAIRS Political & Social Jiang Calls For Conscientiously Studying Deng’s Theory /XINHUA] 2 17 Speech by Jiang Zemin on Work To Assist Poor /Q/USHI 16 May] 17 Tiananmen Prisoners’ Letter Describes Torture [Hong Kong SOUTH CHINA SUNDAY MORNING POST 29 May] 20 Dissident Yu Haocheng Leaves for U.S. /AFP] 22 Police Resume ‘Harassment’ of Dissident’s Relatives [Hong Kong SOUTH CHINA SUNDAY MORNING POST 29 May] 23 Bereaved Family Demands Police Stop ‘Harassing’ Them [Tokyo KYODO] 23 Surveillance of Dissidents in Beijing Continues [Hong Kong SOUTH CHINA MORNING POST 30 May] 23 Article Views Status of Leading Dissidents /Hong Kong LIEN HO PAO 30 May] 24 Former Officials Executed for Smuggling /XINHUA] | 25 Beijing Executes Official, Three Police Officers /XINHUA] 26 RENMIN RIBAO Views Smuggling Crackdown /30 May] 27 XINHUA on Editorial 28 Deputy Procurator General Stresses Stability /XINHUA] 29 Article Lauds Success of Penal System, Part6 {ZHONGGUO XINWEN SHE] 29 Spokesman Denies Report of 28 May Lhasa Demonstration /AFP/ 30 CPPCC National Committee Holds Chairmanship Meeting /XINHUA] 30 Wei Jianxing, Delegation Return From Middle East /{XINHUA] 31 Zou Jiahua on Carrying out Statistics Law /XINHUA] 31 Li Ruihuan Speaks on Urban Planning Work /XINHUA] 32 Rong Yiren Inspects Shandong Enterprises /XINHUA] 32 Li Tieying Gives Top Prize at Government Film Awards /XINHUA] 33 Wang Zhaoguo Meets Hong Kong Textile Industry Group /XINHUA] 34 Liu Yunshan Identified as Deputy of Propaganda Agency /XINHUA] 34 Guangzhou Holds Photo Exhibit on Deng Xiaoping /XINHUA] 35 College Level Enrollments Down Slightly in 1994 /ZHONGGUO TONGXUN SHE] 35 Former Mao Secretary's Reminiscences To Be Published /XINHUA] 35 Science & Technology ChinaSat To Lease Transponders From Hong Kong Firm /CHINA DAILY 28 May] 35 Space Industry Expands Worldwide Cooperation /XINHUA] 36 Government To Promote Production of Integrated Circuits /XINHUA] 36 Natural Resources Study Center Set Up 31 May /XINHUA] 37 New Rice Strains Pass Expert Appraisal /X/NHUA] 37 Military CMC Vice Chairman Views National Defense /Wuhan Radio] ane Official Views Implementation of Military Service Law /XINHUA] 38 Filming of TV Series on National Defense Completed /XINHUA] 39 Economic & Agricultural Rong Yiren Encourages State-Owned Enterprises /X/NHUA] 39 Li Peng Signs Decree on Abolishing Some Regulations /X/NHUA] 40 Zou Jiahua, Conference Views Rural Electrification /X/NHUA] 40

Li Ruihuan Praises Wan Li Book on Construction /XINHUA] 41


31 May 1994 3 China Song Jian Discusses Cleaning Up Huai He {XINHUA 41 Economist Gao Shangquan cn Reform Research Topics [ZHONGGUO XINWEN SHE) .............. 42 Tong Zhiguang Discusses Foreign Trade Strategy /GUOJI SHANGBAO I May] 43 State Tightens Supervision of Foreign Capital (ZHONGGUO TONGXUN SHE) ...... 47 Efforts Made To Control Fixed Asset Overinvestment /XINHUA] 47 Trade Official Says Exports, Imports Increasing /XINHUA] 48 Provinces, Cities With Most Foreign-Funded Firms {ZHONGGUO TONGXUN SHE] 48 Guangzhou Oversight of Foreign-Invested Firms


ign Investment To ‘Save’ State Firms Sought

[CHINA DAILY (BUSINESS WEEKLY) 29 May-4 Jun] 49 Officials Pledge ‘Fully Convertible’ Yuan

[Hong Kong SOUTH CHINA MORNING POST 30 May] 50 Securities Regulatory Commission Chairman To

[Hong Kong SOUTH CHINA SUNDAY MORNING POST (MONEY) 29 May] 51 Securities Commission Considers Expanding B Shares

[CHINA DAILY (BUSINESS WEEKLY) 29 May-4 Jun] 51 Authorities Move To Regulate Securities Markets

[Hong Kong SOUTH CHINA MORNING POST (BUSINESS POST) 28 May] $2 Treasury Bonds Reportedly Sold Out at End of May /XINHUA] 53 North High-Tech Industrial Belt Progresses /{XINHUA] : 53

Chemical Industry Seeks To Improve Quality, Output [XINHUA] .........vssssessssssseesseessnsensenee coe 54 Need To Increase Investment in Power Supply Noted /CHINA DAILY 28 May] 54 Minister of Railways Says Firms Diversifying {ZHONGGUO TONGXUN SHE] 56 56 56

Cities Take Lead in Electrical Appliance Ownership /ZHONGGUO XINWEN SHE] Trade Unions Active in Drafting Laws /XINHUA]

Editorial Views Boosting Agriculture With Science /NONGMIN RIBAO 7 May] $7 Government Establishes Body To Regulate Land Deals /CHINA DAILY 28 May] 59 ‘Soilless’ Cultivation Promoted Throughout Nation /XINHUA] 59 Report Says Peasants’ Purchasing Power Increasing /XINHUA] 59 Need To Promote Grain, Cotton Production Stressed /XINHUA] 60 Increased Investment For Agriculture Promised /CHINA DAILY 31 May] 61 REGIONAL AFFAIRS East Region Huaihe Valley Improves Flood Control, Becomes Granary /XINHU. 62 Anhui Scores ‘Marked’ Progress in Anticrime Crackdown [H Hefei Radio} 62 Fujian Officials Find Controlling Growth Difficult /AFP) 63 Shandong Discovers ‘Serious’ Joint-Venture Fraud /Jinan Radio 63 Shandong Reports Employment Statistics /Jinan Radio] 64 Severed To Reap Another ‘Record’ Harvest /XINHUA] 64 Shanghai's Use of Foreign Capital Discussed /XINHUA] 64 Shanghai Opens First Sino-Foreign Supermarket /XI]NHUA] 67 Shanghai Telephone Information Service Marks Anniversary /X/NHUA] 67 New Shanghai University Merges Four Former Universities mage 67 Shanghai To Build ‘China Colossus’ as Monument /Hong Kong EXPRESS 28 May] .. 68 Central-South Region Guangdong Price Increases Continue To Exceed Target [ZHONGGUO XINWEN SHE} .............+. 68 Guangzhou Leaders Warn Against Foreign Espionage [Hong Kong EASTERN EXPRESS 31 May] 70 Shenzhen Foreign Exchange Trading Center Starts Business /X/NHUA] 70 Workers Win Pay Raise After Strike in Zhuhai [Hong Kong SOUTH CHINA MORNING POST 30 May] 70 Guangxi Secretary Views Agricultural Development /Nanning Radio] 71 Guangxi Attracts More Overseas Investment /X/NHUA/ ... 73 Hainan Secretary Meets Hong Kong Trade Group /Haikou Radio] 73

Preparation for Henan’s Xiaolangdi Dam Project Viewed /XINHUA] 73


31 May 1994 4 China Henan’s Xiaolangdi Dam Resettlement Project ‘Stunning Success’ {XINHUA] 74 Strength of Hubei’s Private Sector Economy Increases /X/NHUA] ' 74 Hunan Makes Progress in Protection of Children {XINHUA/ : 75

Southwest Region Guizhou Improves Infrastructure To Boost Tourism /X/NHUA] 75 Seats Capen Sage iy Sane Se Seas: Sees ee ee ernenieiiens 76 uan Popularizes Agricultural Technology {XINHUA . 76 chee Seeks To Increase Pork Exports /XINHU. 76 Police Beat, Round Up 40 Tibetan Merchants /7¢ KYODO) . 76 Paper Details Police Clash With Demonstrators in Tibet [Hong Kong SOUTH CHINA SUNDAY MORNING POST 29 May} 77 State To Grant Tibet Preferential Economic Policies /Hong Kong WEN WEI PO 30 May) ........... 77 Tibet’s Chairman Delivers Government Work Report /XIZANG RIBAO 16 May] . 78 Tibet Leaders Discuss Government Work Report /XIZANG RIBAOQ 17 May] . 79 Tibet Congress Hears Economic, Social Reports /XIZANG RIBAO 16 May] 80 Report on Economic Reform in Tibet /ZHONGGUO ta apa , 81 Tibet Officials Attend Military Service Law Forum (Lhasa TV] .. 81 Report on Infrastructure Improvements in Tibet /XINHUA] | ; 82 Tibet's Monasteries Almost Renovated /XINHUA] .. , . Tibet Attempts To Improve Sanitary Conditions (XINHUA) seid 83 Lhasa Residents Enjoy Fresh Vegetables All Year Round /XINHUA] ' 83 Yunnan Accelerates Power Industry’s Construction /XINHUAj 84 North Region Beijing Congress Committee Approves Personnel Changes /BEIJING RIBAO 22 May) ........ ——_ International Aid ‘Pouring’ Into Shanxi’s Poorer Areas /XINHUA/ 85 Tianjin Restructuring State-Owned Industries /X/NHUA] povonnenacne 85 Northwest Region

Qinghai Province Seeks To Develop Local Resources {CHINA DAILY 31 May] New Discoveries Made at Xinjiang’s Karamay Oilfield /XINHUA]


Reportage on Visit of Former Soviet Prime Minister Ryzkov Arrives in Taipei /CNAj Meets With Prime Minister Lien /CNA/ President Li Receives Ryzhkov /CNA/

Prime Minister To Leave for Central American ited Departs 29 May /CNA/ Stops in U.S. en Route [CNA] Arrives in Miami [CNAJ .0....0...sccserosersevsserenerenveees

Cross-Strait Travel Security Negotiations Proposed /CNA/

Cross-Strait Cultural Exchanges May Resume /CNA/

President Asks Industrialists To Help Development /CNA/

Government Strives To Cut Deficit With Japan /CNAJ

U.S. Urged To Develop Balanced Ties With Taipei, Beijing /CNA/

U.S. Administration Considers Taiwan Policy /CNA]

Official To Talk to U.S. on Wildlife Sanctions /CNAj

UK Trade Minister To Arrive | Jun /CNA/

Niger President To Arrive on Visit 2 Jun /CNA/

Trade Deficit With EU Widens /CNA/

Former Ambassador on Strengthening Ties With El Salvador /CNA/ .

French Technology Exhibition Set for Taipei att oets sennsnemaneenenneeinesessnesnesnesnsbstenetnenneeuesnants

Jordan Seeks Reduction of Debt /CNA/ _ )

Fruit Trade Talks Held With Seoul /CN. oes . a

Taxation Pact With Vietnam Expected / A] . senssesneneneensenssusnnssneunsssetencequssusetennecnmssseneete


F BIS-CHI-94-104

31 May 1994 5 China KMT Says Temporary Pension Plan Unworkable [CNA] 95 Official Comments on Nation Business Center /CNA] 96 Private Investment Shows Continued Growth /CNA/ .. 96

Investments Rise in Aviation Industry /CNAj .... 96 Export Zone Manufacturers Optimistic About Outlook /CNAj 97 Island Considers Voluntary Car Export Limits for Japan, ROK /CNA/ 97 Government Crushes 20,000 Pirated Discs, Video Tapes /CNA/ 97 Antidumping Tariffs Planned on Polypropylene Imports /CNA/ 9% Survey Shows Women Dissatisfied With Social Status /CNAj 93


Jiang Zemin Gives Speech te | Kong Advisers /Hong Kong TA KUNG PAO 27 May] ............ 99 ‘Exiled’ Dissidents Refused Visas for Hong Kong 99 Visa Applications by ang ong Kong EASTERN EXPRESS 28 May] . 9 [Hong Kong SUNDAY HONGKONG STANDARD 29 May] 100 Governor Defends Ban /Hong Kong HONGKONG STANDARD 31 May] 100

Official on People’s Need for ‘Stable Society’ /Hong Kong WEN WEI PO 29 May] March Held Commemorating Tiananmen Massacre

Marchers ‘Scuffle’ With Police /Hong Kong SOUTH CHINA MORNING POST 30 May) .... Accuse Police of ‘Abusing Powers’ /Hong Kong HONGKONG STANDARD 31 May] ......

Journalists Resign Over Dropped Tiananmen Documentary aS ee CHINA MORNING POST 31 May]

Laments Self-Censorship By TV Company tong Kone SOUTH CHINA MORNING POST 31 May]

Underground Prodemocracy Movement Helps Judge Flee China [Hong Kong SOUTH CHINA SUNDAY MORNING POST 29 May]

Taiwan Official Says PRC Caused Village Demolition [Hong Kong HONGKONG STANDARD 31 May]

Human Rights Watch/Asia Blasts Clinton Decision on MFN [AFP] KM tom

Hong Kong Economists Welcome Renewal of MFN Status /X/NHUA] petinke

ee kee were gt ne wep pee U.S. Chamber of Commerce in Hong Kong on [XINHUA]

OW 3005 122094 Beijing X'NHUA Domestic Service in Chinese 1146 GMT 30 May 94

[Text] Beijing, 30 May (XINHUA)—A Foreign Ministry spokesman answered reporters’ questions here today. Question [Q}: What are your comments on the victory of

the Hungarian Socialist Party in the national parliemen- tary election?

Answer [A): The Hungazian election is an internal affair

national interests and continue to seek a proper settle- ment of their internal dispute through consultations.

re. COC

OW2905 154194 Beijing XINHUA in English 1523 GMT 29 May 94

{Text} re ee eee Peng said here today that China welcomes forcign bankers to invest in China's power industry and con- struction on other infrastructures.

Co-Financing (ECO) to China's Yangzhou Thermo- Power Plant here this afternoon.

During the meeting, Li extended his welcome and con- to the bankers for the success of the 120 million U.S. dollar ECO cooperation for the Chinese plant, saying that China's economy has had suutainnd Govdbapanean, tn etch Gen Goveiapamen of Ge power industry holds an important position. Long into the future, he said, China will continue to take in foreign funds and equipment to accelerate its devel- opment in the power industry and on other infrastruc- tural construction.


The World Bank has decided to provide a 350 million U.S. dollar loan for the Yangzhou Thermo-Power and agreed to provide a guarantee for those foreign

reform, China's ability to pay back loans in foreign currency is no problem.

The representatives of banks that are providing the ECO loan said that they are satisfied with the implementation of the program, which has been accomplished within such a short period of time.

The World Bank and other foreign banks wili use the EUO program with the Y Thermo-Power Plant as reference for the next ECO program with China, so as to expand the scale of cooperation with China, they said. Chinese Finance Minister Liu Zhongli and Minister Shi Dazhen of the power industry took part in the meeting.

Envoy —— For ‘Dialogues’ on DPRK

OW3105061394 Beijing XINHUA in English 0534 GMT 31 May 94

[Text] United Nations, May 30 (XINHUA)—The United Nations Security Council tonight called for


“immediate consultations” between the International Atomic Energy Agency (IAEA) and the Democratic People’s Republic of Korea (DPRK) on necessary mea- sures for discharging nuclear fuel rods.

In a statement by the president of the Security Council, Council

In a letter dated May 27 to the U.N. secretary-general, the IAEA said if the discharge operation at the 5-

technical measures for monitoring the discharge of nuclear fuel rods and reach agreement as pos- sible so as to ensure the continuation of nuclear safe- guard monitoring.

susteay tan is Gy Gikapats ond enqpunina boneeen nity should contribute ‘o this goal.

Secretary General of World Women’s Conference Arrives

OW2705 133394 Beijing XINHUA in English 1245 GMT 27 May 94

{Text} Beijing, May 27 (XINHUA)-—-Gertrude Mongella, secretary general of the Fourth World Conference on Women, arrived here today at the invitation of Liu Huagqiu, Chinese vice-foreign minister and vice- chairman of the Chinese organizing committee of the conference.

Gertrude Mongella has come to inspect China’s prepa- rations for the conference.

Greeting her at the airport was Wang Shuxian, vice- chairman of the All-China Women’s Federation.

Woman Diplomats, Eavoys’ Wives Discuss Family, Women Issues

OW2705 144494 Beijing XINHUA in English 1412 GMT 27 May 94

[Text] Beijing, May 27 (XINHUA)—Woman ambassa- dors and wives of diplomatic envoys of various countries gathered here today to discuss such topics 2s family, women and children, as a way to mark the “International Year of the Family”.

there are over 200 million families in China. The Chi- nese Government has always attached great importance to the role of the family, as it is the basic cell of society.

Farid Rahman, representative of the office of the United

FBIS-CHI-94-104 31 May 1994

Peng Peiyun Discusses Women's Conference With UN Official

OW 3005 161394 Beijing XINHUA in English 1403 GMT 30 May 94

[Text] Beijing, May 30 (XINHUA) —Peng Peiyun, chair- person of the Chinese Organizing Committee of the Fourth World Conference on Women, said here today that as a host, the Chinese government attaches great importance to the convocation of the conference.

“Now it has been listed as an important item on the government's work agenda,” said Peng, also Chinese State Councillor, at a meeting with Gertrude Mongella, secretary-general of the Fourth World Women’s Confer- ence, here this afternoon.

During the meeting the two agreed that they share a common goal of making ihe conference a success, with hopes for furthering their cooperation and making full preparations for the conference.

Peng said that now the Chinese organizing committee has been soundly formed and every functional com- mittee has drawn up detailed plans, v hich are now being gradually implemented,

She said: “Our preparations in the fields of finance, materials and manpower have also been supported by governments at all levels and the Chinese people as well.”

Many non-governmental organizations also have shown their aspirations to contribute to the World Women's Conference, she said, adding: “This will be an important guarantee for us to make preparations well.”

Peng said that under the outstanding leadership of Mongella, the secretariat of the United Nations has made unremitting efforts and is playing an important role in promoting the preparatory work in regions of the world and various countries’ departments at all levels.

“We appreciate this,” she added.

She said: “We very much cherish our good cooperation. and ties established between us. It 1s our inclination that the two sides will make concerted efforts for the suc- cessful convocation of the Fourth World Women's Con- ference.”

Mongella said that her tour of China has enabled her to know more about the progress that China, the host, has made in its preparatory work.

Now that the Chinese organizing committee has become further established, she believes thai with the care of the Chinese government, the preparatory work for the con- ference will be conducted smoothly.

With the growth of the Chinese eoonomy, the social status of Chinese women has risen greatly.


“We appreciate the confidence and courage that Chinese women have shown in China's reform and the important roles that they are playing. This provides an important condition for the successful convocation of the confer- ence,” she said.

from the UN ted by Ebrima K. Jobarieh, deputy secre- tary-general of the Fourth World Women's Conference, made a special inspection of the Beijing International Convention Center and the Beijing Asia Hotel.

The officials of the Chinese organizing comnittee gciia's first tour of China.

defined as a place for holding the conference, to be held in Beijing in 1995.

has made positive preparations for the conference tour.

The halls for meetings and rooms for offices, press and

services as well as various facilities that the conference needs have been decided on the whole.

Mongelia congratulated China for its progress in making preparations for the conference, adding: “! have full confidence in the successful convocation of the confer- ence.”

Chen Muhua on Importance of World Women's

OW'2905 134594 Beijing XINHUA in English 1327 GMT 29 May 94

{Text} Beijing, May 29 (XINHUA)—Chen Muhua, vice- chairwoman of China's National People’s Congress (NPC) Standing Committee, said here today that the Fourth World Conference on Women to be held here next year will be of great significance in raising women's social status.

The NPC vice-chairwoman made the remarks when she met with a delegation from the United Nations headed by Gertrude Mongella, secretary-general of the confer- ence, here this afternoon.

Chen said that Mrs. Mongelia, as secretary-general of the conference, shoulders great responsibility. Making the conference successful is the will of various sides and China is willing to strengthen contacts and consultations yoyh- + ae 90 a3 lo prepare well for the conference,

Extending her welcome to Mongella on her visit to China, Chen said that ever since the first U.N. delegation visited Beijing one year ago, the Chinese organizing committee for the conference has, according to the


U.N.’s requirements and the needs of the conference, conducted scheduled preparations and achieved major

the past one year.

Liu said the Chinese Government, as a host, places great importance on the conference.

He told Mongella that the preparations for the confer-

the plan under the leadership of the State Council and the guid- ance of the organization committee of the conference.

He said the conference's significance and background have been widely popularized in China and the holding of the conference here has won powerful support by the people from all walks of life.


FBIS-CHI-94-104 31 May 1994

and deputy secretary- general of the U.N. have intro- suggestions.

Meanwhile, he said: “Mongella has offered us very good ideas in this regard”.

“It is our inclination to continuously maintain and strengthen such cooperative ties,” he added.

Mongella said she has known more about China's prep- arations for the conference after she made a study tour of Beijing and other parts of the country.

She said what she has seen during the study tour is that the Chinese Government attaches great importance to the conference.

The Chinese women have shown their strong self- confidence in raising their social status and their great enthusiasm for the conference has been supported pow- erfully, she said, adding that this is an important condi- tion for the success of the conference.

She expressed the belief that through friendly coopera- tion between the U.N. and the Chinese Government the meeting will surely achieve a full success.

Conference on Economic Reforms Opens in OW2705 133194 Beijing XINHUA in English 1242 GMT 27 May 94

was held here this morning, focusing on economic reforms in China.

[Text] pe May 27 (XINHUA)—An International Academy of Management conference

Pedro Nueno, chancellor of the International Academy of Management, and Jing Shuping, managing director of a codl Gaeies oF Ge anaes Ee tion and president of the All-China Federation of Industry and Commerce, made opening speeches.

This is the academy's first conference in China. It has

Representatives from |1 countries at the gathering are discussing such issues as China's current economic reform policy, securities, using overseas investments, and financial, taxation and state-owned enterprises

The International of Management, set up in

Academy 1958, has 232 members from 34 countries. The current conference is aimed to promote the academy's study of China's economic reforms and development.

FBIS-CHI-94-104 31 May 1994

ee SS SS Se eee

OW 2805042794 Beijing XINHUA in English 0400 GMT 28 May 94

[Text] Beijing, May 28 (XINHUA)}—Chinese Vice- President Rong Yiren mei with foreign participants of the symposium on China's economic reforms at the

Great Hall of the People here this morning.

(CIEC), and the China Europe Management Institute.

Rong said that he was pleased with the symposium and expressed congratulations to its success.

Briefing guests on China's economic growth, Rong said that in building a socialist market economy, China attaches much importance to the absorbing of foreign management expertise.

He asked foreign management experts io give their valuable advice as often as possible.

IAM President Pedro Nueno said that the symposium helped him and his colleagues acquire more knowledge about China's economic growth. China promises a very bright future, he said.

Founded in 1985, [AM boasts of over 200 members from 34 countries.

CIEC President Jing Shuping took part in the meeting.

Sino-F oreign Cooperation

OW2805 155794 Beijing XINHUA in English 1519 GMT 28 May 94

[Text] Beijing, May 28 (XINHUA)—Sino-foreign coop- eration should uphold

tions, Chinese Vice-Premier Zou Jiahua said here today. He made these remarks while mecting with foreign delegates attending an international seminar on China's

new investment style of “B.O.T. (build, operate and transfer)”.

China's reform and opening to the outside world demand a peaceful international environm ~nt and China is willing to cultivate economic cooperation with foreign nations and international organizations, the vice-

Zou Jiahua Mutually

Each party should make use of its own strengths in the cooperation, he said, adding that many Western coun- tries have advanced technology, management systems and abundant capital, which could be combined with China's rich natural resources.

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Justice US. Prison Ministry Says Rejects


at the U.S. Embassy in China about this matter. Lorraine Toly, a U.S. embassy official, stated that AP’s report was mistaken and had distorted what she uad said in the reporter: “If the U.S. Customs is tipped off that a certain on nel is exporting its products to the United

departments arranged a visit by two officials from the U.S. Embassy in Beijing to the No. 4 prison in cast China's Ziejiang Province and other units from May 19

to 21. Prison officials answered questions from the U.S. There was no evidence during their visit that shows China had violated the memorandum of understanding, However, in his article AP reporter John Leicester clrimed that “U.S. officials had information that the camps were exporting prison-made goods to the United

In reponse to a Chinese Ministry of Justice ~ a's inquiries, Lorraine Toly, first secretary fo ye US. Information Service of the U.S. Emb ... in w-ying, said in a letter yesterday that AP reporte: " Le’ cester had made “errors” in his article.

She said that “what I said was that if U.S. customs officials receive information that a Chinese prison might be exporting prison- made goods to the United States, they then contact the Chinese authorities to ask to inspect the prison.

“This explanation became in his article: “Toly said U.S. prison-made goods to the United States...”

The U.S. official said: “1 was annoyed by this article when I read it last week.” She said: “I will call ASSOCI- ATED PRESS and complain.”

In the letter, she also said that she was “sorry for any confusion this article might have caused.”

He pointed out that the letter from the U.S. Embassy official showed that the May 2! AP report by John Leicester was a sheer distortion of facts.

Sources See ‘Restrained’ PLA Reaction to Arms Import Ban 71K2805052494 Hong Kong SOUTH CHINA MORNING POST in English 28 May 94 p 7

[By Willy Wo-lap Lam]

[Excerpt] The powerful People’s Liberation Army [PLA] establishment has responded angrily to President Bill Clinton's ban ca guns and ammunition, indicating it is yet another example of American “hegemonism”.

Sources close to the army said, however, because the value of the targeted imports was no more than U.S.$200 million (HK$1.5-billion [Hong Kong dollars] ) the PLA would be relatively restrained in making public protests.

Moreover, the PLA is still hopeful of tic resumption of

FBIS-CHI-94-104 31 May 1994

which would enable China to import technology with should not jeopardise the first steps that had been taken earlier this year towards the partial resumption of mili- tary links.

Chinese Vice-Chief of Staff General Xu Huizi is still expected to visit the U.S. in the summer, when he will probably look at military-related technology. The sources said that if the American army proved amenable to upgrading military relations, Beijing would not play up the just-announced ban. [passage omitted]

Column Calls U.S. Action ‘Wise Decision’

HK2805070194 Hong Kong TA KUNG PAO in Chinese 28 May 94 p 4

(“Political Talk” column by Shih Chun-yu (2457 0689 3768): “Clinton Has Made a Wise Decision” ]

[Text] China issued a statement to express its welcome as U.S. President Clinton announced his decision on the renewal of China’s most-favored-nation [MFN] status and declared ‘iat all future MF™ decisions involving China would be delinked from human rights. This is a new turning point in the U.S.’ handling of its relations with China since the “4 June” incident of 1989. Beijing gave a prompt response. The PRC Ministry of Foreign Affairs issued a statement yesterday expressing its wel- come for the decision, also pointing out that Sinv- American relations face a favorable historic opportunity and that China will continue to adopt measures to develop relations between the two countries.

Clinton’s decision met the expectations of all quarters, because facts have clearly shown that if the United States continued to apply pressure on the pretext of human rights issues, China would never accept it. If China took retaliatory action, the attack on the United States would not be insignificant. Apart from the United States, Hong Kong’s import and export trade would also suffer great setbacks, and even Southeast Asian countries would be generally harmed.

A wise man never takes a decision which harms others but does not benefit himself, let alone injures himself. Recently, more and more figures in U.S. financial and economic circles and congressmen have successively issued warnings to Clinton urging him not to act rashly in dealing with China’s MFN. The focus of the U.S. economic recovery is centered on the Asia-Pacific region and depends on the vast market of 21st century China, a country with a population of 1.2 billion. [sentence as published] After China rejoins the GATT, large numbers of American products will be exported to China. Under the principle of fair competition, Sino-American trade will develop further. This will also be beneficial to reducing the U.S. trade deficit.


The United States is hoping for the expansion of China’s vast market America’s Boeing and the computer, elec- tronic component, telecommunications, and petrochem- ical industries are placing high hopes on the expansion of China’s vast markets. If the vast market of 1.2 billion with unlimited potential was lost because of the so-called “human rights” issue, leading to a great increase in unemployment, it would have been too late for the decision maker to repent.

The change in the situation is independent of man’s will. China’s political and economic position in the present- day Asia- Pacific region and in the world can no longer be wantonly manipulated by foreign countries. It is incompatible with reason to link human rights with MFN status. It could never hold ground in the interna-

tional community.

The fact is, in the past five years since the “4 June” incident, China has opened its door wider to the outside world and has done more to develop its economy and stabilize its society. Public sentiment has become calm. The advanced nations of the West, Southeast Asian countries, East European countries, Russia, and other countries have been competing with one another to develop economic and trade relations with China. Some figures inside the American government have also real- ized that it is impossible to continue to use human rights issues to put pressure on China. Clinton’s announcement of the delinkage of MFN status renewal from the human rights issue is a wise decision. Instead of him losing face, it is beneficial to enhancing his prestige.

New development in relations between the two countries Clinton’s decision has also shown that relations among nations cannot be separated from mutual benefits in practice. If the current close economic relations between China and the United States deteriorated because of their dispute over human rights, and both sides suffered because of this, the American people would never sup- port it. On the contrary, if the human rights issue, a hindrance to relations between the two countries, is removed, the development of Sino-American relations will embark on a new and easy path.

Recently, the international community has attached importance to the development of China’s relations with the four central Asian countries and the improvement in Sino-Ukrainian and Sino-Russian relations. China and Russia are two big nations after all. Of course, the development of China’s relations with the central Asian countries and Russia is not targeted at any third country. However, the new cooperation between China and Russia in economics, culture, and science and tech- nology will be further strengthened through Russian Prime Minister Chernomyrdin’s visit 10 China and Pres- ident Jiang Zemin’s visit. to Russia in September. This is an undeniable trend.

Under such a new world situation, no one can tolerate human rights elements undermining Sino-American relations and harming U.S. interests. Is this not clear



Editorial Sees Mutual Benefit in MFN Decision

HK2805063094 Hong Kong WEN WEI PO in Chinese 28 May 94 p A2

{Editorial: ““‘What Has Clinton’s Delinking Policy Shown?”’]

[Text] U.S. President Clinton announced yesterday his decision on renewing the most favored nation trading status for China for another year and abandoning his policy of linking trade issues with human rights. This delinking policy is the beginning of a change in U.S. policy toward China and will be helpful in strengthening and expanding bilateral cooperation in economic rela- tions and trade and the vigorous economic development

in Asia-Pacific region, and promoting understanding and ties between peoples of the two countries.

The Chinese Government was the first to set out sepa- ration of human-rights issues from the MFN trading status. At first, the U.S. Government did not accept it, while believing that the linking policy was the most powerful weapon to add pressure on China, assuning that China, to acquire MFN status, would inevitably make concessions to the tough pressure from U.S. inter- vention in China’s internal affairs. Tremendous changes in the world situation have taken place over the past five years as well as in China’s economic strength. Among the world industrial powers, the United States is the only one that continues to intervene in China’s internal affairs by means of human rights, whereas other coun- tries have expressed their position on the need to sepa- rate human rights and economy; consequently, the United States has found itself isolated from its allies. At the same time, owners of some 100 largest U.S. firms share the belief that China is a huge market, and they wrote to Clinton demanding a change of the linkage policy.

Still greater changes have taken place in Asia; many government leaders of Asian countries and regions are unable to accept the U.S. policy of linking human-rights issues to MFN trading status. They support extending the MFN trading status to China without conditions, while criticizing the United States for jeopardizing free trade. Asian countries believe that should the United States succeed in intervening in China with human- rights issues, it would do the same in the rest of Asia. Failure to extend MFN trading status to China would inevitably harm the Chinese economy, but Asian coun- tries and regions wou'd suffer from still greater losses, because the Asian economy is closely linked to the Chinese economy. When the United States has dealt with China with human rights as a means, they demanded Clinton abandon such linking. It is rarely seen that Asian countries and regions take the Chinese side with a clear-cut stand. A just cause enjoys abundant support while an unjust cause finds little support. Clinton had to review his practice of forcing China to yield by means of an executive order with additional conditions. Because Clinton is facing not only China, but

FBIS-CHI-94-104 31 May 1994

also many allies, he must avoid self-isolation among Asian countries, the surfacing of anti-U.S. sentiments in the region, and entering a cul-de-sac.

China is a sovereign country; of course, China will never obey the executive order of a foreign president.

If Clinton had issued another presidential executive order with additional conditions, how would the U.S. President get out of the predicament next year, how would he end the show? That is a very realistic political issue.

A statesman must inevitably foresee the future, and he must know others and know himself. Clinton has come to see that Bush’s tactics remain feasible, it is not advisable for the President to stand up front where there is no leeway to turn around; that being the case, separa- tion of human-rights issues from the MFN is the best choice, while discarding the issuance of another execu- tive order is also a wise measure for protecting himself from something unfavorable.

Among his cabinet, officials in charge of defense and national security, as well as the treasury, commerce, and agriculture are for unconditionally extending MFN trading status to China, and the Secretary of State has been doing his best to seek a way to mutual concessions.

How should we account for the surfacing of a delinking policy in the U.S. Congress? First, China’s national strength is not to be underestimated. Just like Clinton put it yesterday: “China is the world’s fastest-growing economy; the protection of U.S. commercial interests is the decisive factor in making this decision.” In addition, “China possesses nuclear weapons, veto power in the United Nations, and is an important power in both Asian and world security”; furthermore the two sides share many common interests, including non-nuclear proliferation on the Korean Peninsula and environ- mental improvement.

The second reason is China’s success in pursuing a peaceful foreign policy of independence and taking the initiative in its own hands. Five years ago, nobody expected that peaceful diplomacy could have scored such tremendous effects. Today, those who want to isolate China find that the isolated is not China. Clinton said: The extension of the MFN trading status “will avoid the isolation of China while making it possible for us to establish ties and communicate with China.” The why China has won friends lies in the fact that it treats others on an equal footing, safeguards peace, and refrains from pursuing hegemonism. However, by no means will China allow foreign intimidation and accept foreign orders.

The third cause lies in changes in the world situation in the post-Cold War period, and it is not advisable to maintain the means of the Cold-War days. Faced with a pluralistic world, the United States has failed to find solution to many domestic issues, nor has it been able to settle issues in Somali and Haiti. The United States must coexist and cooperate in consultation with China in

FBIS-CHI-94-104 31 May 1994

friendliness to cut back troubles; only then, will it be possible to realize arrangements for maintaining U.S. interests. There are all the advantages but no disadvan- tages for the United States to cooperate with China.

The fourth cause lies in the fact that if the United States wants development with a focus on the next century, there is a need to maintain economic relations with China, who is likely to become a power in economic relations and trade in the 21st Century. The United States will lose the Chinese market, whereas Western Europe and Japan will enter it; as one subsides here, another will rise, how can the United States maintain its advantages in the next century? People in the United States require their government to take the lead in adopting a pragmatic policy for the U.S. economy.

After all, Clinton does have a long-range view, and has changed his hegemonist policy toward China; that is an action worth welcoming. In the second half of this year, a comparatively pleasing trend is likely to surface in Sino-U.S. relations.

PLA Leader Meets U.S. National Defense University Guests

OW2805 131594 Beijing XINHUA in English 1242 GMT 28 May 94

[Text] Beijing, May 28 (XINHUA)—Cao Gangchuan, deputy chief of the General Staff of the Chinese People’s Liberation Army (PLA), met here today with a delega- tion from the National Defense University of the United States.

The delegation arrived here on May 25 at the invitation of the PLA headquarters of the General Staff.

President Jiang Zemin Meets U.S. Oilman

OW2705 133094 Beijing XINHUA in English 1235 GMT 27 May 94

[Text] Beijing, May 27 (XINHUA)—Chinese President Jiang Zemin said here today that the development of China’s petro-chemical industry, one of the country’s pillar industries, had bright prospects.

He said this while meeting with Lucio Noto, chairman and chief executive officer of the Mobil Corporation of the United States.

Jiang spoke highly of the economic and technological cooperation Mobil had had with China.

Noto said that Mobil was preparing to expand its busi- ness in China.

It is the first visit to China by Noto since he became heaH of the U.S. oil giant last March.


Li Peng Views International Securities Firms Cooperation

OW 3005 145394 Beijing XINHUA in English 1252 GMT 30 May 94

[Text] Beijing, May 30 (XINHUA)—Chinese Premier Li Peng said here today