From: gaojeng@durras.anu.edu.au (J. Gao)
Subject: CND-Global 16-8-92 SUN
Summary: CND
Keywords: CND
Organization: Computer Services Centre, Australian National University
Date: 16 Aug 92 13:09:20 GMT

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

                              (News Global)

                        Sunday, August 16, 1992

Table of Contents                                                # of Lines
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1. News Brief (4 Items) ................................................ 42
2. China's 1.1 Billion Consumers Lure Advertisers....................... 66
3. Taiwan: KMT Leader to Visit Beijing ................................. 34
4. Japan: Miyazawa Said to Skip Controversial Shrine Visit ............. 30
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1. News Brief (4 Items) ................................................ 42
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[AP-DJ, 8/14/92] HONG KONG -- Officials in Shenzhen have arrested 17 people
for reselling stock vouchers at up to five times their face value following
the chaotic distribution of applications for new shares earlier this week,
Hong Kong's government-owned radio reported Friday.  Authorities in the
southern Chinese city have also warned citizens that foreign organizations
are circulating counterfeit stock forms, the independent Ming Pao newspaper
reported. (From: Jian Liu)
                        ____  ____  ____  ____

[REUTERS, 8/12/92] TAIPEI -- Taiwan has rejected a proposal by the General
Agreement on Tariffs and Trade (GATT) that the words "Chinese Taipei" be
added to the end of the name under which it is seeking to join.  Taiwan
applied in 1990 as the "Customs Territory of Taiwan, Penghu, Kinmen and
Matsu" instead of under its official name the "Republic of CHINA", in an
attempt to avoid opposition from Beijing.  But processing of the application
is being delayed because China is insisting that it be allowed to join GATT
first.  Taiwan remained willing to consider other changes to the name to
speed up approval of its application. (From: A CND Reader)
                        ____  ____  ____  ____

[SOUTH CHINA MORNING POST, 8/13/92] THE controversial Hongkong Bill, which
formalises American policy towards the territory after 1997, was unanimously
passed by the US House of Representatives yesterday. The bill, which is
opposed by CHINA, locks into American law the guarantees of autonomy and
other rights for Hongkong as promised in the Sino-British Joint Declaration,
designed to make it difficult for China to renege on the agreement after it
recovers sovereignty.  It emphasizes the importance of human rights, backs
Hongkong's membership of multilateral organisations and covers areas such
as commerce, transportation, culture and education.(From: A CND Reader)
                        ____  ____  ____  ____

[AP, 8/16/92] SEOUL -- About 1,000 students hurled firebombs and rocks at
police Saturday following a banned rally demanding the unification of South
and North Korea. Communist North Korea also held a pro-unification rally at
the border village of Panmunjom. A 6-day series of rallies in South Korea,
which began Wednesday, are timed to coincide with the 47th anniversary
Saturday of Korea's liberation from Japanese colonial rule in 1945. The last
rally will be Monday. Witnesses said about 10 students were injured in the
half-hour clash in front of Seoul National University in southern Seoul,
where about 15,000 students and dissidents rallied. Protesters burned a huge
Japanese flag and accused Japan of trying to revive its old militarism by
deploying troops overseas as part of the U.N. peace-keeping operations.
(From: Huijie)

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2. China's 1.1 Billion Consumers Lure Advertisers ...................... 66
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From: A CND reader
Source: Reuters, 8/13/92
By: Andrew Browne

BEIJING - When China's first television commercial aired in 1979 -- a plug
for Rado watches -- Chinese workers still dressed alike in Mao suits, and
foreign-made sunglasses were the height of fashion, worn with the label
stuck proudly to a lens.

A late starter, advertising in CHINA is now almost a billion-dollar-a-year
industry, fuelled by a consumer boom and a growing demand for imported
luxuries.  With slumping revenues in the United States and Europe, foreign
advertisers are flocking to CHINA to do business.

"For international agencies, CHINA is perhaps the fastest growing market in
the world," said Ron Cromie, general manager of J. Walter Thompson CHINA.
Saatchi and Saatchi, J. Walter Thompson, Ogilvy and Mather, Dentsu, Young
and Rubicam -- to name a few -- are in the middle of rapid expansion in the
world's largest consumer market. Some 20 newcomers have joined them in the
past year alone.

Many of China's 1.1 billion people have acquired spending power under econo-
mic reforms championed by patriarch Deng Xiaoping. And after four decades of
building socialism, the government is building markets instead.

Less than $4,000 buys foreign companies an advertising slot on CHINA Central
Television, which claims about 600 million viewers for the evening news. Few
countries offer rates so low, and none can match the audiences.

What excites international advertisers is that Chinese consumers are snapp-
ing up anything with a foreign label.  "They believe foreign products are
the best," said Steve Chen, an Ogilvy and Mather executive.

Although official statistics show the average monthly pay of Chinese workers
is only $30, the figure is much higher in Beijing and coastal cities. A
recent J. Walter Thompson survey suggests average annual household income in
Canton, capital of China's richest province Guangdong, is about $2,200 and
in nearby Shenzhen across the border from Hong Kong is $3,300. The figure
for Beijing and Shanghai is about $1,300.

Since Chinese workers get free housing, health care, transport and education
-- all part of the "iron ricebowl" state employment system -- their pay is
virtual pocket money.  Nationally there is $200 billion of bank savings, and
more hidden at home under mattresses.

Advertising agencies are arriving in the footsteps of their multinational
clients.  Dentsu, Young and Rubicam, for instance, is opening an office in
Canton to prepare for the product launch in September of Colgate toothpaste,
manufactured locally.

They are using sophisticated advertising and slick public relations to build
brand awareness. Clothing, fast-food and soft drinks and personal care
products are selling well.

Foreign agencies are losing money, but are investing for the future in an
economy growing at a robust 10 per cent per annum.

For now foreign advertisers are concentrating on oA]seas clients, partly
because Chinese companies are reluctant to place commercials through pro-
fessional agencies.

Total advertising billings this year from television, billboards and the
print media are officially forecast to grow 40 per cent to about $920
million. The 42 foreign agencies now registered will earn revenues of about
$37 million, according to the official forecast.

J. Walter Thompson foresees growth of 80-100 per cent this year and billings
of perhaps $13 million.  "With growth like that, even from a small base, it
won't take long to catch up," said general manager Cromie.

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3. Taiwan: KMT Leader to Visit Beijing ................................. 34
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From: A CND Reader
Source: Agence France Presse, 8/13/92

A TOP decision-maker of Taiwan's ruling Kuomintang (KMT) yesterday said he
would accept an invitation from CHINA to visit the mainland.

"They are very sincere in their invitation and after careful consideration,
I have decided to visit the mainland," Mr Koo Chen-fu, chairman of the
Straits Exchange Foundation (SEF), said of the invitation by his Chinese
counterpart.

State radio said Taiwanese President Mr Lee Teng-hui agreed in principle to
allow Mr Koo to visit CHINA after a meeting on Tuesday with him and Mr Huang
Kun-huei, chairman of the top mainland policy planner, the Mainland Affairs
Council (MAC).

State radio said Mr Koo would most likely leave for CHINA after October, but
he still needed final approval from the MAC for his trip.

Mr Wang Daohan, chairman of the Beijing-based semi-official Association for
Relations Across Taiwan Strait (ARATS), sent an invitation last week asking
Mr Koo to visit CHINA and discuss cross-straits financial ties.

Mr Koo, who sits on the KMT's decision-making central standing committee
and heads the CHINA Trust and Taiwan Cement business groups, said he would
discuss with Mr Wang disputes and issues between Taiwan and CHINA and the
operations of the SEF and ARATS.

The two organisations were set up on a nominally private basis to handle
growing cross-strait disputes after the KMT permitted Taiwan civilians to
visit the mainland in 1988.

Local observers said Mr Koo's trip would be highly symbolic and have sig-
nificant political implications given the role of the 75-year-old entre-
preneur, who has helped the diplomatically-isolated island with his
connections and influence.

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4. Japan: Miyazawa Said to Skip Controversial Shrine Visit.  ........... 30
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From: A CND Reader
Source: UPI, 8/14/92

TOKYO -- Prime Minister Kiichi Miyazawa has decided to postpone a politically
charged visit to the controversial Yasukuni Shrine -- where Class A war
criminals are enshrined -- until after an imperial visit to China has been
completed, Kyodo News Service reported Thursday.

The shrine, which reportedly will be visited by 15 Cabinet ministers
Saturday to commemorate the 47th anniversary of the end of World War II, is
one of the most potent symbols of militarism in Japan.

No prime minister has visited the shrine since Prime Minister Yasuhiro
Nakasone broke a 40-year taboo in 1985 by making the trip in an "official"
capacity. The trip provoked angry charges of jingoism from at home and from
Asian countries that had suffered Japanese occupation during the war,
including China.

Miyazawa told reporters Sunday he would visit Yasukuni in a private capa-
city, but did not say when.

Citing sources close to Miyazawa, Kyodo reported that the prime minister has
decided to put off the visit until after Emperor Akihito makes a trip to
China, expected to come in late October.

Nearly 2.5 million Japanese war dead are enshrined in Yasukuni, including
2.1 million who died in World War II.

The government used the shrine as propaganda instrument to fire up
militarism in the 1930s and 1940s. The shrine is a place of worship for
believers of Shinto, an animistic religion with close ties to the emperor,
in whose name World War II was waged.

The religion was dismantled as the state religion by Allied forces following
Japan's surrender, but the religion is still practiced by many Japanese.

Akihito's visit to China will be the first by a reigning Japanese monarch.
Several newspapers speculated Miyazawa's shrine visit was designed to
diffuse opposition to the Akihito's visit to China. Conservatives within the
ruling Liberal Democratic Party fear Akihito would be compelled to apologize
for the wartime aggression unleashed on China in the name of his father,
Hirohito.

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