From: gaojeng@durras.anu.edu.au (J. Gao)
Subject: CND-Global, Wed, September 9, 1992
Summary: CND
Keywords: CND
Organization: Computer Services Centre, Australian National University
Date:  9 Sep 92 03:02:39 GMT

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

                              (News Global)

                        Wednesday, September 9, 1992

Table of Contents                                                # of Lines
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1. News Brief (4 Items) .................................................36
2. China Rejected U.S.'s Explanation on the Fighter Jet Sale to Taiwan ..50
3. China's Trade Surplus Rises as Exports Hit All-time High .............25
4. Japan Advised China Not to Purchase Ukrainian Aircraft Carrier .......50
5. Taiwan, Russia Set up Missions; China Expected to Protest ............25
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1. News Brief (4 Items) .................................................36
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[AP-DJ, 9/08/92] SEOUL -- Zhou Hanrong, vice president of the People's
Construction Bank of China (PCBC), will visit Seoul Sept. 16 to discuss the
establishment of its office here with Bank of Korea officials, the South
Korean Finance Ministry said Tuesday. PCBC was established in 1954 to supply
funds for infrastructure investment and major construction products in China.
Its equity capital was 6.2 billion dlrs at the end of 1990. Meanwhile,
President Wang Deyan of the Bank of China will visit Seoul in November to
open its Seoul office, according to the finance ministry. The ministry gave
a go-ahead in July to the Chinese bank to open its first office in Seoul this
year. (From: Huijie)
                             ____  ____  ____

[AP-DJ, 9/08/92] BEIJING --Plans are being made to build a 70-million-dlr
trade center in Shanghai, which has seen an explosion of development recently,
official media reported Tuesday. The trade center will cover 4.4 hectares
and be built in the Hongqiao development zone, the state-run Xinhua News
Agency said. It said contracts for the trade center are being drawn up, but
did not identify the primary developers. (From: Jian Liu)
                             ____  ____  ____

[AP-DJ, 9/08/92] MOSCOW -- Four former Soviet republics agreed Tuesday to
hold talks with China on border disputes and demilitarization of the border,
ITAR-Tass reported. Russia, Kazakhstan, Kyrgyzstan and Tajikistan will
continue the talks which were started by the Soviet Union, the news agency
said. China and the former Soviet Union agreed to 90% of their more than
7,500-kilometer border prior to the December 1991 collapse of the Soviet
Union. Unresolved are competing claims along the Amur and Ussuri rivers,
which led to bloodshed in 1969. Each country claims that 19th-century border
agreements gave them control of islands in the rivers. (From: Jian Liu)
                             ____  ____  ____

[UPI, 9/07/92] TAIPEI, Taiwan -- In the latest sign of growing cultural and
economic contact between Taipei and the former Soviet Union, Taiwan and
Russia have agreed to exchange representative offices, the Foreign
Ministry announced Tuesday. The argeement, recently approved by Russian
President Boris Yeltsin and Taiwan Premier Hao Pei-tsun, is expected to spur
trade between the two nations, once bitter Cold War adversaries. "It will
focus mostly on trade issues," said Vice Foreign Minister John Chang, "to
pave the way for a better trade environment and help our people better
understand what trade and investment opportunities are there in Moscow."
(From: A CND Reader)

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2. China Rejected U.S.'s Explanation on the Fighter Jet Sale to Taiwan ..50
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From: Zhao Hua
Source: UPI, 9/07/92

BEIJING -- A senior U.S. government official failed Monday in talks with
Chinese officials to dispel outrage over the sale of advanced warplanes to
Taiwan, with  China  rejecting his explanation as "unjustifiable" and
continuing to blast the deal.

"The  U.S.  side  has  to  bear  all  the responsibility for the serious
consequences  arising  from  its  wrong  action,"  the official Xinhua news
agency  quoted  Chinese Foreign Ministry officials as saying after meetings
with Assistant Secretary of State William Clark.

Clark  arrived  Monday  morning  by special plane on a hastily arranged
visit,  a  bid by the Bush administration to salve Beijing's anger over the
decision last week to sell up to 150 F-16 fighter jets to Taiwan.

A  U.S.  Embassy  spokesman said Clark held meetings of 90 minutes each
with  Vice  Foreign  Minister  Liu  Huaqiu and Zhang Yijun, director of the
Chinese  Foreign  Ministry's  American affairs department. Clark refused to
make any public statement after the talks.

But  the  Xinhua  dispatch  indicated Clark had received in private the
angry  criticism  that  Chinese  officials  have  been  issuing  in public,
rejecting U.S. explanations of the deal.

"The  Chinese side reiterated China's solemn and just stand against the
U.S.  sale  of  F-16  fighters  to  Taiwan,  and  refuted the unjustifiable
explanations of the U.S. side," Xinhua reported.

China  has kept up a drumbeat of daily criticism in the state-run media
since the F-16 sale was announced.

In  the  latest  broadside,  Wan  Li, chairman of the National People's
Congress,  the  nominal  parliament, said Monday at a meeting with visiting
Japanese news agency executives that China "opposes U.S. power politics and
hegemonism."

Wan  reiterated  China's  allegation that the F-16 deal violates a 1982
Sino-U.S.  agreement in which the United States pledged to reduce gradually
the  quantity  and quality of arms sold to Taiwan, which Beijing views as a
renegade province.

"Under no circumstances can China agree to it," Wan said.

A  commentary  in  the communist party newspaper People's Daily charged
the F-16 sale showed the U.S. government "has gone back on its word and its
promises are not credible."

The  commentary,  written  by  a  professor  of  international law, Liu
Wenzong,  derided U.S. claims that the United States could continue to sell
arms to Taiwan under its Taiwan Relations Act, which set up unofficial ties
with Taipei after Washington recognized Beijing.

"If the U.S. president signs international treaties on the one hand and
then uses domestic law to oppose international commitments he has promised,
how can he win international credibility?" Liu asked.

China  has  made  no specific pledges of retaliation against the United
States  so  far,  but  has  threatened  to withdraw from international arms
control  talks  and  withhold  cooperation  in  U.S.-led  global  coalition
initiatives.

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3. China's Trade Surplus Rises as Exports Hit All-time High .............25
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From: A CND Reader
Source: UPI, 9/08/92

BEIJING -- China enjoyed a $1.27 billion trade surplus in August, with
exports hitting an all-time high, an official newspaper said Tuesday.

The English-language China Daily said China exported a record $7.88
billion worth of goods in August, a 21.6 percent increase over August
1991. August imports reached $6.61 billion, an 18 percent rise over the
same period last year.

However, the figures include items most nations do not count in trade
statistics, such as foreign aid, raw materials imported for processing,
and equipment imported for use by foreign companies.

China Daily said that without those items, the Asian nation's foreign
trade reached $11.07 billion during August.

The report marked the first time an official Chinese newspaper has
issued such adjusted trade figures. China is currently shifting toward
international statistical standards in preparation for joining the
General Agreement on Tariffs and Trade (GATT).

China Daily said August's strong increase in foreign trade
demonstrates the economic boom that has swept China since earlier this
year, when communist elder Deng Xiaoping called for a return to free-
market reforms.

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4. Japan Advised China Not to Purchase Ukrainian Aircraft Carrier .......50
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From: Zhao Hua
Source: UPI, 9/07/92

TOKYO -- Japanese  Vice Foreign Minister Koji Kakizawa on Monday advised
China not to purchase a Ukrainian-built aircraft carrier, warning that such
an acquisition could destabilize the Asia-Pacific region.

"I  would like to solicit very prudent action from China," Kakizawa told
a symposium commemorating the 20th anniversary of normalized Sino- Japanese
relations.

"Southeast  Asian countries and Taiwan will begin to feel China poses     a
military  threat"  if  China goes ahead and purchases the aircraft carrier,
Kakizawa said.

China  said  earlier this year it was prepared to militarily defend its
claim  to  the  disputed  Spratly Islands and reports indicated discussions
have occurred about the carrier purchase.

At  a  time when the world is moving towards disarmament, Asian nations
must not embark on an arms race, Kakizawa said.

Participants  from  Japan  and  China  agreed relations between the two
neighbors  are  at  an all-time high and will be further boosted by Emperor
Akihito's  visit  to  China  next  month, but differed on whether Japan had
atoned sufficiently for World War II atrocities.

Conservatives  in  the  ruling Liberal Democratic Party expressed fears
the  emperor  would be pressured into apologizing for the war prosecuted in
the name of his father, the late Emperor Hirohito.

Many  Chinese  remain bitter about Japan's failure to fully acknowledge
its wartime guilt, and considerable attention is expected to be paid to the
emperor's  choice of words in reference to Japan's 1937 invasion and brutal
occupation, in which as many as 13 million Chinese perished.

Xu  Dan,  deputy  director  of  the  China  Institute  on  Contemporary
International  Relations, said war responsibility rests on the shoulders of
a "handful of militants," not with the younger generation.

But  he added many Cabinet members may be included among those who have
failed to recognize Japan's past mistakes.

Xu,  a  former  foreign ministry official, said Japan should follow the
example of Germany, which took a clear-cut stance in condemning Nazism.

"Japanese people clearly do not show the same (attitude)," he said.

Citing  the emergence of neo-Nazism in Germany, Kakizawa said, "Germa    ny
should not be idealized."

He  suggested  Beijing  should  regard  Japan's economic assistance and
position on human rights as substitutes for wartime compensation.

Japan  was  the  first country to ease sanctions imposed by the western
powers   on   China  for  the  1989  military  crackdown  on  pro-democracy
protesters. After freezing aid in 1989, Japan once again is China's largest
source of bilateral aid.

"Japan  led  the  way in reestablishing economic aid to China" Kakizawa
said,  noting  this  should be taken as a gesture of "indirect compensation
for Japan's wartime deeds."

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5. Taiwan, Russia Set up Missions; China Expected to Protest ............25
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From: Jian Liu
Source: AP-DJ, 9/08/92

TAIPEI -- Taiwan and Russia Agreed to set up high-profile unofficial
missions Tuesday despite expected protests from the Communist government in
Beijing.

Taiwan's Vice Foreign Minister John Chang said the exchange of missions was
finalized after Russian President Boris Yeltsin approved last week an
agreement signed in June by Chang and an adviser to Yeltsin in Moscow.

The adviser, Oleg Lobov, who was a deputy prime minister of the former
Soviet Union and now chairman of the Experts Council to President Yeltsin,
will head the Russian mission, to be called the Moscow Taipei Economic and
Cultural Coordination Commission, Chang said. Chang will head the Taipei
mission.

The agreement represents a diplomatic victory for Taiwan and comes after an
embarassing defeat last month when South Korea, Taiwan's last political ally
in Asia, switched its diplomatic recognition from Taipei to Beijing.

"A new page is written in the history" of Taiwan and Russia, Chang told
reporters. "They are high-level missions ... (but) we don't want to stress
their (de facto) official status."

But Russia, which recognizes Beijing, has made it clear that it would not
sell any jet fighters to Taiwan, Chang said. A decision by the U.S. last week
to sell F-16 fighter jets to Taiwan has seriously strained U.S.-China ties.

Chang said Lobov will lead a trade delegation to Taipei later this month to
discuss details of the missions. They will also discuss establishing air links
and winning contracts under a master plan by Taiwan's Nationalist government
to spend 303 billion U.S. dlrs on infrastructure projects in Taiwan.

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