From: gaojeng@durras.anu.edu.au (J. Gao)
Subject: CND-Global 17-8-92 MON
Summary: CND
Keywords: CND
Organization: Computer Services Centre, Australian National University
Date: 17 Aug 92 07:40:23 GMT

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

                              (News Global)

                        Monday, August 17, 1992

Table of Contents                                                # of Lines
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1. News Brief (4 Items) ................................................ 40
2. Former US Coach on China's Performance in Barcelona. ................ 23
3. Leftists Resign in Boost for Deng. .................................. 49
4. China Loses Control of Mainland Companies Investing in Hong Kong. ... 64
5. China Receives 100th Boeing Jetliner. ............................... 62
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1. News Brief (4 Items) ................................................ 40
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[AP, 8/15/92] BEIJING -- Forty-five people were killed in heavy rainstorms
and flooding in southwest China's Yunnan province last month, according to
an official report seen in Beijing on Saturday. The heavy rains and floods
also injured 342 people and left 120,000 homeless, the China Disaster
Reduction News reported. The brief report did not give any other details.
(From: A CND Reader)
                        ____  ____  ____  ____

[UPI, 8/16/92] In an effort to exert pressure on the Khmer Rouge to
cooperate with United Nations peacekeepers in Cambodia, a high-ranking
Chinese official held a rare meeting in Bangkok, Thailand, last week with
former strongman Pol Pot, diplomats in Washington say. The meeting, which
has not been confirmed by Beijing, would support the widely held view
that Pol Pot continues to wield control of the radical movement, which
brutally restructured Cambodian society in the 1970s.  The talks were
reported by Vietnamese radio and confirmed through diplomatic channels.
(From: Charles Mok)
                        ____  ____  ____  ____

[South China Morning Post, 13/8/92] Anhui, in east China, is offering 745
projects for overseas investors in Hongkong in a bid to tap up to US$4.7
billion of foreign capital.  The province's governor, Mr Fu Xishou, said
in Hongkong yesterday industrial output in the first half of this year
grew 20.4 per cent over the same period last year.  According to Mr Fu,
Anhui is giving priority to the construction of four cities along the
Yangtze River - Wuhu, Ma'anshan, Anqing and Tongling.  The province is
also developing the Hefei High and New Technology Development Zone and
the Mountain Huangshan International Tourism Development Zone.
(From: A CND Reader)
                        ____  ____  ____  ____

[Laser Focus World, July 1992] Taiwan has signed an agreement with the US
Army to buy 26 mast-mounted sight (MMS) electro-optical multisensor system
from McDonnell Douglas Electronic System (McLean, VA). The MMS systems are
used in such applications as target acquisition, reconnaissance, mine
detection, friend-or-foe identification, gunfire control, and rescue
operations. The Taiwanese government plans to purchase 26 OH-58D heli-
copters, and 12 MMS units will be integrated into the helicopters. Funding
for the additional 14 MMS units is expected to be approved later this year.
This agreement marks the first international sale of the OH-58D/MMS heli-
copter system. (From: Y.H. Su)

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2. Former US Coach on China's Performance in Barcelona. ................ 23
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From: Charles Mok
Source: Sports Illustrated 8/17/92
By: William Oscar Johnson

What is to be made of the performances by the team from Germany (82 medals,
including 33 golds) and China (54 and 16), which finished third and fourth,
respectively, in the medal standings?  China, though it remains under a
heavy totalitarian thumb, saw its athletes improve tremendously since the
last Olympics, almost doubling their take from Seoul (28) and tripling the
number of gold (5) they won in 1988.

How is all of this to be explained?  Dr. LeRoy Walker, 74, the wise and
venerable former U.S. Olympic track coach who is expected to be elected
president of the U.S. Olympic Committee in October, says, "It is not
realistic to look at ideology or new world orders or drugs to explain
what has happened.  It is mainly a matter of coaches.  The Unified Team
is still on top because it held on to many of the best coaches from the
old Soviet Union.  Germany is down because many of the very good coaches
who ran the East German system were not hired in the West.  Some of them
helped train the Chinese.  Some Russian coaches went there, too.

"It's not surprising to see China winning - with more than a billion
people, the Chinese _ought_ to be winning.  Once they grasped the fact
that they couldn't continue to demand a rigidly egalitarian existence
and that they had to let the elite rise to the top - as elite Olympic
athletes must - they began to improve."

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3. Leftists Resign in Boost for Deng. .................................. 49
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From: A CND Reader
Source: South China Morning Post, 8/13/92
By: WILLY WO-LAP LAM

Patriarch Mr Deng Xiaoping has made more gains in his anti-leftist campaign
as leading Maoist ideologues have tendered their resignations.  Mr Deng
and his aides have also encouraged "bourgeois-liberal intellectuals" to
openly vent their views about exterminating remnant Maoism.  Chinese
sources said yesterday top ideologue and head of the Propaganda Department,
Mr Wang Renzhi, had tendered his resignation for the second time this year.

However, Mr Wang was told by politburo member in charge of organisation Mr
Song Ping, that the reshuffle of the ideological and propaganda establish-
ments would be made at the same time.  Analysts said Mr Wang, together with
Acting Culture Minister Mr He Jingzhi and People's Daily director Mr Gao Di
would be sacked en masse late this year.  The only leftist who continues to
show defiance is former propaganda chief Mr Deng Liqun.  Sources said
Mr Deng Liqun had been taken ill recently apparently in reaction to the
declining political fortunes of his faction.

However, the hard-liner has continued to lobby conservative party elders
in a bid to mobilise the party against "the return of bourgeois
liberalisation".  Last Thursday, a group of the capital's free-thinking
intellectuals staged another challenge to the ideologues by holding an
anti-leftist seminar.  Participants included such well-known figures as
former People's Daily editor Wang Ruoshui, economist Mr Yu Guangyuan and
former vice-chief of propaganda Mr Wang Huaide.

The conclave was organised by the Shanghai People's Press, which will
later publish an anthology of anti-leftist papers. The theme of the
meeting was to "make propaganda" for the market economy and to eradicate
Maoism.  "We agreed that the party did not go far enough in denouncing
the mistakes of Chairman Mao", a participant said.

"We also clarified the point that leftists were bogus Marxists who cited
the Marxist canon merely to justify their hold on to power."  Mr Yu, who
has cancer, warned that the party should go for a "market economy", not
a "socialist market economy".

"The prefix `socialist' would give leftists a pretext to roll back reforms
on the grounds that the latter can only be made under the perimeters of
classic socialism," he said.  Meanwhile, two veteran members of the
liberal faction and a retired general have written to Mr Deng Xiaoping
urging him to go whole hog in fighting leftism.

Former politburo member Mr Lu Dingyi, former vice-premier Mr Gu Mu, and
former army chief of staff General Yang Dezhi asked Mr Deng to consider
"thorough de-Maoification" on the grounds that only a realistic appraisal
of the late Chairman's errors could rid the country of leftism. The semi-
official China News Service said yesterday it would run a dozen-odd pieces
on the effects of the "Deng whirlwind".  CNS quoted such liberal academics
as Mr Wu Jinglian, Mr Wu Mingyu and Mr Huang Nansen on Mr Deng's "theory
of emphasis", that while the party should be on guard against "rightism",
its emphasis should be on fighting leftism.

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4. China Loses Control of Mainland Companies Investing in Hong Kong. ... 64
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From: A CND Reader
Source: South China Morning Post 8/13/92

Hong Kong -- China'S central Government appears to have lost control of
mainland companies speculating in Hongkong property, according to the
latest research report from Brooke Hillier Parker.

The central government has openly encouraged medium-term and long-term
investment in Hongkong by mainland companies as part of China's strategy
to support long-term development of the territory, but it has repeatedly
stressed that mainland companies must not engage in property speculation.
"Such an ambiguous warning has seldom been treated seriously as there is
no written measure to enforce the general rules," the Brooke Hillier
Parker report says.

China has overtaken Japan and the United States as Hongkong's biggest
foreign investor, with China-backed companies believed to have invested
more than $10 billion in the local property market over the past two
years.  According to Brooke Hillier Parker, this brings the cumulative
direct investment to more than $90 billion.  "It seems clear that the
central government has partly lost control of Chinese companies which
have proliferated in great numbers," it adds.

Brooke Hillier Parker thinks the New China News Agency (NCNA) is not
powerful enough a representative of central government to supervise
Chinese companies in Hongkong.Beijing's Hongkong policy is implemented
through the NCNA, which is directly controlled by the Hongkong and Macau
Affairs Office of the State Council which has equal rank to a ministry.

Brooke Hillier Parker says one of the most important measures available
to the central government for controlling Chinese companies is financial
restrictions. The government has imposed some restrictions on the
financial affairs of these companies by insisting that they handle their
major financial issues through the Bank of China. By doing so it is to
some extent able to supervise their business activities.

However, Brooke Hillier Parker says such a monopolistic position by the
bank is now being challenged with many Chinese companies finding it more
convenient to deal with foreign banks where their activities are confiden-
tial.  While mainland companies in Hongkong still have to follow existing
rules regarding conduct of business, they have benefited from the terri-
tory's laissez-faire economic policies.

A number of them, including Guangdong Investment and China International
Trust and Investment Corp (CITIC), have already listed on the Stock
Exchange of Hongkong.  "It is expected that more Chinese companies will
request permission to be listed on the Hongkong market and thus will make
it more difficult for the Chinese government to control Chinese
companies," Brooke Hillier Parker says.  Since the restructuring of
China-backed companies in 1988-89, mainland investors have steadily
become more active in the territory. Unlike some foreign investors,
they see opportunities - not problems - associated with 1997.

"With the Hongkong and even the Chinese governments intending to control
property speculation, mainland investors in Hongkong have played a dubious
role as middlemen in providing liquidity in the primary residential
market."  In fact, with the Hongkong Government likely to actively dispose
of land to the private sector to finance the development of the new
airport and related infrastructure, it would seem that these Chinese
middlemen are also providers of capital in the new airport.

"That could be the logic behind the Chinese Government's intention to reduce
property speculation by its entities, so that capital is redirected towards
long-term projects," Brooke Hillier Parker says.

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5. China Receives 100th Boeing Jetliner. ............................... 62
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From: A CND Reader
Source: PR Newswire 8/11/92

Seattle -- When President Richard Nixon touched down in Beijing aboard a
Boeing 707 on Feb. 21, 1972, it was more than the start of a new relation-
ship between the United States and the People's Republic of China, Boeing
Commercial Airplane Group said today.  It was the opening of a new era of
trade relations, one that has buoyed air travel in China and greatly
benefited Seattle-based Boeing.

The same year President Nixon arrived on Air Force One, China ordered 10
Boeing 707s.  Today, some 20 years later, China received its 100th Boeing
jetliner.  An additional 59 airplanes are on firm order from Boeing and
various leasing companies.  The value of these 159 planes in 1992 dollars
is nearly $9 billion--enough to fund Boeing's current facilities expansion
and entire payroll (1991 salaries for 159,100 employees) for a year.

The 100th Boeing jet delivered today is a Rolls-Royce powered 757 for
Xiamen Airlines.  In honor of the occasion, and as a symbol of good luck,
members of Seattle's Chinese community conducted a traditional lion dance
at the base of the airplane.

"No one could have foreseen the rapid growth of China's economy and of our
airline industry," remarked Hu Yizhou, senior advisor and former director
general of the Civil Aviation Administration of China (CAAC), forerunner to
China's newly regionalized air carriers.  "The good relations between CAAC
and Boeing have not only helped U.S.-China trade relations and the exchange
of technology in the field of civil aviation, but, as a result, many people
have come from all over the world to visit China."

As China's economic reforms continue, the country will likely need more
airplanes.  "I see the trend continuing indefinitely," said Hu, the man
most responsible for purchasing China's jets from Boeing.

This year Boeing will deliver no fewer than 24 airplanes to China,
representing every model Boeing has in production, from the 737 twinjet
to the latest 747-400 jumbo.

"We are pleased that China recognizes the advantage of common flight decks
and pilot ratings among our aircraft types and of engine commonality between
our," said Dean Thornton, president, Boeing Commercial Airplane
Group.  "These strategic advantages and Boeing's hallmark service to the
customer are why today's leading airlines say they prefer Boeing for their
fleet modernization."

China's dozen-plus airlines carried about 22 million passengers last year,
an enviable traffic gain of 31 percent from 1990, CAAC reported. Airlines
based in China added 47 new routes -- 38 domestic and nine international
-- in 1991, ending the year with a total of 452 routes. CAAC is forecasting
an increase of 10.3 percent in passenger boardings to about 24 million this
year.

Of China's 61 civilian airports, 48 are equipped with instrument landing
systems, and 19 are undergoing major expansion.  In 1991, CAAC invested
$130 million on infrastructure, including new runways, better lounge
facilities and computer systems.  Many of the airport upgrades are along
China's coastal cities and nearby Special Economic Zones (SECs), of which
Xiamen is among the fastest-growing.

This month, CAAC Director General Jiang Zhuping said airlines and businesses
outside of China soon will be able to purchase stock in China's airlines.
The purpose of the new investment scheme is to "set a fresh pace for the
country's accelerated drive of opening up its economic sectors to foreign
investment and cooperation," according to a report in the China Daily.

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