From: gaojeng@durras.anu.edu.au (J. Gao)
Subject: CND-Global, Tue, September 15, 1992
Summary: CND
Keywords: CND
Organization: Computer Services Centre, Australian National University
Date: 15 Sep 92 07:04:24 GMT

              * * *  C h i n a   N e w s   D i g e s t  * * *

                              (News Global)

                         Tuesday, September 15, 1992

Table of Contents                                                # of Lines
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1. News Brief (5 Items) .................................................50
2. Vice-premier Zhu Rongji Warning on "Runaway" Economy .................45
3. Former Finance Minister Wang Bingqian Urges Economic Slowdown ........45
4. Chinese Officials Recommend More Stock Exchanges .....................18
5. Jiang Zemin to Address Business Leaders in Beijing ...................22
6. Taiwan Sets Conditions for Direct Air-Sea Links with Mainland ........17
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1. News Brief (5 Items) .................................................50
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[AP-DJ, 9/14/92] TAIPEI -- Taiwan and France have slowed discussions over
the purchase of French-made Mirage jets because of pressure from Washington,
but Taiwan still is expected to buy the fighters, The Asian Wall Street
Journal reported Tuesday. A negotiating team headed by Dassault Aviation
SA, which manufactures the Mirage, left Taipei late last week without
sealing an agreement. But Taiwanese officials say their government remains
eager to add the plane to its arsenal. The officials say the administration
of U.S. President George Bush has placed Taiwan in a difficult position.
On Sept. 2, Bush reversed a 10-year U.S. ban on the sale of advanced
warplanes to Taiwan, authorizing the export of 150 F-16 fighters. Since
then, the U.S. State Department has said that it believes Taiwan doesn't
need to acquire aircraft in addition to the F-16s to meet the island's
defensive needs. (From: Hui Jie)
                             ____  ____  ____

[AP, 9/10/92] TAIPEI -- A former Nationalist Party warlord who
kidnapped the late Generalissimo Chiang Kai-shek in about 56 years
ago told Chinese journalists Thursday that he would like to visit the
mainland. In his first interview with mainland journalists, Zhang
Xueliang, 91, said he was not sure when he would return to his
hometown in northeastern China because he had difficulty walking.
"I miss my hometown very much, and I hope I will have the chance to go
back," Zhang said. He did not comment on news reports that he plans to
visit China next month. Chang also said in the interview that he believes
Taiwan and the mainland would be reunited. (From: Zhao Hua)
                             ____  ____  ____

[AP, 9/10/92] North Korea has barred Chinese tourists from entering the
country by land in retaliation for China's recent normalization of ties
with South Korea, Western diplomats said today. The diplomats said the
entire border was closed to Chinese visitors but that Pyongyang was still
allowing Chinese businessmen and those with relatives in North Korea to
enter the isolated and economically backward Communist state.
(From: Zhao Hua)
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[AP, 9/09/92] LONDON -- The British Broadcasting Corp. will broadcast
programs to China and India using transmitters in the former Soviet
Union, including one previously used to jam Western broadcasts, the
BBC said Wednesday. The agreement between the BBC and Moscow's Central
Administration of Radio Broadcasting Network will allow the BBC
World Service to transmit from Tashkent and Chita, in the Russian
Far East, the BBC said in a statement. Tashkent was identified in 1980 as
the site of Soviet jamming of Western broadcasts, the BBC said.
"This new development is an indication of just how dramatically
the old order has changed," said John Tusa, managing director of
BBC World Service. For the last three years, Beijing has tried to jam some
BBC Chinese broadcasts. Using the transmitters in the former Soviet
Union should make World Service Chinese language broadcasts more
audible throughout communist China, the BBC said. (From: Zhao Hua)
                             ____  ____  ____

[REUTER, 9/13/92] Hong Kong granted political asylum to about 30 Chinese
dissidents who fled to the British colony after Beijing's brutal 1989
crackdown on the pro-democracy movement, a local newspaper reported. The
English-language "Sunday Morning Post" said as many as 800 asylum-seekers
had crossed into Hong Kong since the 4 June army attack on demonstrators.
(From: Gao Jie)

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2. Vice-premier Zhu Rongji Warning on "Runaway" Economy .................45
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From: A CND Reader
Source: SOUTH CHINA MORNING POST, 9/10/92
By: Willy Wo-Lap Lam

Vice-premier Mr Zhu Rongji has taken steps to cool down the economy amid
signs that Beijing has lost control over efforts by departments and
localities to aim for high-speed development.

This is despite claims by the State Statistical Bureau yesterday that
industrial production, which jumped 19.2 per cent in the first eight months
of the year, was still "on track".

In a meeting this month with senior officials, Mr Zhu, who has been empowered
by patriarch Mr Deng Xiaoping to oversee economic reform, warned against
unrealistic and over-ambitious growth targets.

The Vice-Premier said while Mr Deng had advocated a high-speed model, growth
must take place "on the basis of good efficiency, high qualify (of products)
and (an adequate) export orientation".

Mr Zhu, who has assumed day-to-day administration over the economy, said the
growth rate this year had already exceeded the targets by huge margins.

"No major problems have yet been discovered," he said. "Yet problems may
arise if the trend continues."

The Vice-Premier also warned against excessive speculation in the securities
and real-estate markets.

Economists in the capital said Mr Zhu was worried that the momentum for
reform would be blunted by such signs of dislocations as inflation and
excessive capital construction.

In the past decade, conservatives, including central planners, have slowed
down reform on the pretext of forestalling inflation and runaway investments.
Moreover, they said, since Mr Deng issued his call for market reforms,
localities and government departments had upwardly revised their targets
without adequate consultation with the central Government.

The Beijing-run Wen Wei Po newspaper in Hongkong yesterday reported that
various regional administrations and government departments had recently
revised their development plans.

For example, the Beijing municipality had revised its plans so that targets
for the year 2000 could be reached three years earlier.

The Wen Wei Po reported that some provinces and cities had submitted their
new plans to the State Planning Commission of the central Government.

However, sources said the senior leadership was worried that Beijing had lost
control over the development of localities, which were no longer dependent on
central funds to finance expansion plans.

The State Statistical Bureau yesterday reported that industrial production in
the first eight months of the year had jumped 19.2 per cent, with the August
figure of 232.1 billion yuan (HK$328.18 billion) 21.2 per cent over the same
month last year.

Officials from the bureau ascribed the high growth to faster economic
development along the southeast coast, with some provinces registering a
growth rate of above 20 per cent in August.

The New China News Agency quoted the officials as saying that China's
economic performance was "still on track".

However, sources said, after Mr Zhu's directives, the central Government had
taken steps to restrict credit and to oblige local governments to scale down
"over-ambitious projects".

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3. Former Finance Minister Wang Bingqian Urges Economic Slowdown ........45
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From: Jian Liu
Source: AP-DJ, 9/13/92

BEIJING -- In a blow to China's economic reform drive, former Finance
Minister Wang Bingqian on Sunday urged Communist Party leaders to cool the
economy, return to central planning and control the ballooning deficit.

Writing in the party's People's Daily (Renmin Ribao) newspaper, Wang said
that "the scale of construction must be compatible with state planning" if
China is to "advance steadily in the right direction."

"If the overall balance is not right," Wang warned, "it will dampen the
enthusiasm of the masses, damage the country and the people's wealth, waste
everyone's time and make things slower instead of faster."

The commentary, Wang's first public statement since resigning on Sept. 4,
paid tribute to his predecessor, former Chinese President Li Xiannian. Li,
who died in June, was a veteran revolutionary and a leader of the hard-line
faction opposed to economic reforms.

Wang, who didn't give any reason for stepping down, has never been labeled
as a reformist or a hard-liner. But his paean to Li's rigid ideas suggests
the hard-liners are building up to a crucial Communist Party meeting later
this year that is expected to include major personnel changes and map the
country's future direction.

"If you push me and I push you, then we tie each other up," Wang wrote,
hinting that the reformers would need the cooperation of economic
conservatives at the meeting.

"Comrade Li said setting finance policy without studying the economic
situation is very dangerous and can only result in making a big mistake
later," Wang cautioned.

Describing China's recent economic results as "not ideal" Wang urged leaders
to learn from Li's ideas of tight economic cost controls to reduce waste.

"Our country's development is very fast," Wang said. "It creates a serious
imbalance in which the large amount of goods being produced doesn't suit
society's needs."

Wang handled the books during China's drive in the 1980s to open up to the
outside world and introduce market-oriented economic reforms under the aegis
of senior leader Deng Xiaoping.

But the by-product of reform was a tremendous increase in spending, which
triggered huge budget deficits. Yet Wang and other officials also continued
to prop up money-draining state-run enterprises, the bulwark of China's
socialist system.

With last year's budget gap - the 11th in 12 years - hitting a record 20.3
billion yuan (3.7 billion dlrs), more Chinese officials have recently lost
patience with the country's economic performance.

Last week the official Economic Information Daily compared China's expected
12% economic growth this year to an "express train" and questioned how long
the fast pace could continue without China slamming on the brakes.

The People's Daily also ran a commentary last week by a provincial official
who warned that some Chinese wanted to accelerate reforms to the point where
China would become too Westernized.

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4. Chinese Officials Recommend More Stock Exchanges .....................18
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From: Jian Liu
Source: AP-DJ, 9/14/92

BEIJING -- China should set up more stock exchange centers to avoid
uneven development in China's securities markets, the state-run Xinhua News
Agency quoted Chinese officials as saying Monday.

The officials recommended establishing markets in northern and central
China. Beijing, Tianjin and Shenyang were suggested as northern cities, while
Wuhan was mentioned as a stock center for central China.

China currently has two bourses, one in the eastern port of Shanghai and the
other in special economic zone of Shenzhen bordering Hong Kong.

Such an expansion would enable the government dampen "share fever"
throughout China, the officials were quoted as saying. Otherwise, "the
imbalance will be a hidden danger for the normal development of China's stock
market."

"Strategically a share-holding system should be practiced widely, but it
should be practiced in a controlled way," Xinhua quoted Zhao Haizhen as
saying. Zhao is director of the finance research institute under the People's
Bank of China.

Xinhua said the officials were trustees of the Chinese government's
shareholding system policy-making body. The group concluded a four-day
seminar Saturday in Wuhan on the future development of China's stock markets.

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5. Jiang Zemin to Address Business Leaders in Beijing ...................22
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From: Jian Liu
Source: PRNewswire, 9/14/92

MENLO PARK, Calif. -- "China's Regions Emerge," a major conference sponsored
by SRI International and involving key leaders of the Chinese government and
business executives from around the world convened today in Beijing and will
run through Sept. 16.  The Honorable Jiang Zemin, general secretary of the
Communist Party of China, will address the meeting.

Paul J. Jorgensen, executive vice president and chief operating officer of
SRI said, "This meeting is a strong indication of China's opening up, with
many of its regions taking the lead in the process. SRI has spent over a
decade working with the Chinese and it is gratifying both to see the changes
being made and the degree of interest being shown by such leaders of the
international business community as Ryoichi Kawai, the chairman of Komatsu."

Chinese leaders, including Ma Hong, president of the Development Research
Center and senior Economic Advisor to the State Council and key
representatives from Guangdong and Hainan Provinces, plus the cities of
Tianjin, Shanghai and Shenzhen will address the attendees.

The U.S. Ambassador to China, the Honorable J. Stapleton Roy, will also
address the meeting as will such key international executives as Ryoichi
Kawai, chairman of Komatsu Ltd., and Ted C. Lee, vice president of
International Bechtel Inc.

Executives from 19 nations will attend a number of sessions examining the
market driven growth of China's regions and discuss the specific
opportunities available in the pharmaceutical, transportation,
telecommunications, finance and industrial machinery markets.

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6. Taiwan Sets Conditions for Direct Air-Sea Links with Mainland ........17
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From: Jian Liu
Source: AP-DJ, 9/13/92

TAIPEI -- China must stop calling Taiwan a renegade province and end
its threats to use force for reunification if it wants to establish direct
air and shipping links, according to a Nationalist government report issued
Sunday.

"Direct links, especially air links, involve our national security and we
can hardly consider the matter (now)," said the report, compiled by the
Nationalist government's Mainland Affairs Council.

The report said the rival Beijing government must also recognize the
Nationalists as a political entity.

Ma Ying-jeou, deputy director of the council, told a seminar of scholars
that discussed the report, the mainland government should respond to
Nationalist President Lee Teng-hui's decision last year to end 43 years of
wartime provisions against the Chinese Communists.

By ending the wartime provisions, the Nationalists ceased to regard the
Communist government as a rebel group. In turn, Lee had urged China to end
its policy of trying to push the Nationalists into diplomatic isolation.

"We have made the first step to end hostilities and we hope the Chinese
Communists can response to it," Ma said.

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