From: jxg601@huxley.anu.edu.au (J. Gao)
Newsgroups: aus.culture.china
Subject: China News Digest (Global), Mon, 10/12/1992
Date: 12 Oct 92 06:46:13 GMT
Organization: Australian National University
NNTP-Posting-Host: 150.203.2.12
Summary: CND
Keywords: CND

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

                              (News Global)

                        Monday, October 12, 1992

Table of Contents                                                # of Lines
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1. Deng Prevails: Central Advisory Commission Is Abolished ..............57
2. Party Congress Opens with Effusive Praise for Deng ...................74
3. Jiang Reportedly to Head China's Government, Party, and Military .....37
4. Party Bosses May Replace 3 Conservatives .............................28
5. U.S. and China Reach Agreement on Trade Accord .......................30
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1. Deng Prevails: Central Advisory Commission Is Abolished ..............57
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From: A CND Reader
Source: UPI, 10/11/92

BEIJING -- In a major victory for senior leader Deng Xiaoping over his
elderly conservative foes, China's Communist Party announced Sunday the
abolition of the powerful Central Advisory Commission and heralded Deng as
the "chief architect" of the country's successful modernization.

On the eve of the party congress, spokesman Liu Zhongde announced that
Deng, who holds no official title, had been invited as a special delegate
to the congress in recognition of "the great contributions he has made to
the party."

The two announcements and the election of a reformist leadership to head
the one-week congress confirmed Deng's growing status as a demigod while
curtailing the powers of his main rival, Chen Yun, the ailing economic
czar who heads the advisory commission.

Deng, 88, re-emerged from semi-retirement earlier this year, calling for a
renewed commitment to economic reforms and taking command of key personnel
decisions.

Until recently Chen, 88, had resisted Deng's efforts to abolish the
commission, which he had used as a conservative power base for those
opposed to Deng's economic program.

Persistent rumors of Chen's deteriorating health were confirmed over the
weekend by his failure to appear at the final meeting of the central
advisory commission, a body of 229 influential elders.

Chen's position as head of the advisory commission means he is
automatically a delegate to the party congress, but he is considered
unlikely to appear because of his health.

The congress spokesman also announced the election of four men with
reformist leanings to lead the congress for its one-week duration, leading
to speculation the four will be given additional powers in the overall
party leadership.

The praesidium, as it is known, will be led by security chief Qiao Shi, a
Deng protege and economic reformist, and could lead to his appointment in
a new position of party vice-secretary-general.

Qiao's three deputy secretary-generals for the congress are reformists
Ding Guangen and Wen Jiabao and moderate Hu Jintao.

Ding, who is an alternate member of the powerful Politburo standing
committee, may be made a full member, a promotion that is also rumored for
Hu Jintao, the former party secretary of Tibet.

The runup to the congress opening Monday has been marked by numerous
articles in the official press praising Deng Xiaoping and his program of
economic reforms.

Workers recently erected a huge billboard displaying Deng's face in
downtown Beijing, while newspapers Sunday trumpeted the opening of a new
documentary film on his achievements.

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2. Party Congress Opens with Effusive Praise for Deng ...................74
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From: Liu Jian
Source: Dow Jones International News, 10/11/92

BEIJING --The ruling Communist Party opened a crucial meeting Monday by
vowing to pursue supreme leader Deng Xiaoping's capitalist-style reforms
for 100 years. 

Setting the tone for the week-long 14th congress of the Chinese Communist
Party, party Secretary-General Jiang Zemin delivered a keynote address
devoted to singing the praises of Deng's 14-year modernization drive. 

"We can truly say that we have begun a new revolution, the objective of
which is to fundamentally change the economic structure that has hampered
the development of the productive forces and to establish a new and
vigorous socialist economic structure," said Jiang, dressed in a
three-piece business suit. 

The congress opened to the strains of the Internationale, the rousing
anthem of the fast disappearing communist movement, and a moment of silence 
in remembrance of China's Communist forefathers, including Mao Zedong and 
Zhou Enlai. 

Jiang, speaking before about 2,000 delegates from a flower-bedecked dais
inside the cavernous Great Hall of the People, repeatedly referred to Deng
as the guiding force behind China's economic reform policies. 

Deng, who has long retired from all party posts, did not attend the opening
session of the congress, broadcast live on national television. But he
remains China's most powerful leader because of his personal connections
with party and military leaders built over a lifetime at the forefront of
the communist movement. 

The congress, a ritual held every five years to make leadership changes and
affirm party policy, may be Deng's last best chance to ensure that his
market-driven reform policies survive him. An ailing 88, he is unlikely to
be around for the next one. 

Since becoming China's paramount leader in 1978, Deng has introduced a
number of market reforms, frequently hedged with restrictions to ease the
break with the past and to placate conservative party elders. 

But in his report, Jiang signaled that the Chinese Communists intend to
pick up the pace. As an editorial Monday in the People's Daily, the party's
mouthpiece, put it, Deng's policies "are the great banners to guide the
Chinese from victory to victory." 

The market already plays a huge role in China's economy, with nearly half
its industrial output coming from non-state companies. The challenge Deng
has set is to introduce market principles of competition and efficiency to
state enterprises, the last haven of overstaffing and guaranteed jobs for
life. 

The challenge has become all the more urgent since the last party congress
five years ago with the breathtaking collapse of the global communist
movement, triggered by the inability of former Soviet President Mikhail
Gorbachev to fix his nation's failed socialist command economy. 

At this party congress, Chinese leaders will acknowledge as they never have
before that the best way to stay in power is to stimulate economic growth
by adopting wholesale from capitalism. 

The only difference from an out-and-out market economy appears to be that a
big chunk of the economy will remain state-owned. But the plan is for it to
operate according to market principles, not state dictate. 

Still, Chinese leaders continue to believe that economic reform can be
accomplished without political liberalization. But elsewhere in Asia,
authoritarian regimes have found that economic growth almost invariably
brings about demand for democratization from emerging middle classes. 

With most of the congress' program well-known in advance, the only suspense
surrounds appointments to top party bodies the Central Committee, Politburo
and Politburo Standing Committee. Supporters of Deng's reform program are
expected to dominate. 

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3. Jiang Reportedly to Head China's Government, Party, and Military .....37
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From: Liu Jian
Source: Japan Economic Newswire, 10/10/92

HONG KONG -- Jiang Zemin will soon take office as China's new president in
addition to his current posts as general secretary of the Chinese Communist 
Party (CCP) and chairman of the powerful CCP Military Affairs Commission, 
according to authoritative sources cited Saturday by the Ming Pao Daily
News.

The Chinese-language daily said the decision was made during the Ninth
Plenary Session of the 13th CCP Central Committee, which concluded Friday.

Session participants completed preparations for the 14th Party Congress
which begins October 12 and determined a lineup for the CCP's supreme
Politburo Standing Committee and other key party and government posts.

Besides proposing Jiang for the largely ceremonial role of president of the
People's Republic of China, the plenary session also determined that Li
Peng should retain his post as premier, according to the report.

The session also decided that Qiao Shi should become chairman of the
National People's Congress, China's parliament, and tabbed Li Ruihuan as
chairman of the Chinese People's Political Consultative Conference, the
Ming Pao said.

The three other proposed members of the Politburo Standing Committee -- Zhu
Rongji, Hu Jintao and Liu Huaqing -- would respectively handle economic,
organization and military policy issues on the committee, it said.

Informed sources told the Ming Pao that high-level CCP leaders considered
that giving Jiang the leadership roles in government, party and military
affairs would help ensure the implementation of the reform principles of
China's preeminent leader Deng Xiaoping.

The Ming Pao noted that the combination of government and party posts seems
to reverse a 13th Party Congress decision in 1987 to reduce the direct
participation of the party in government.

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4. Party Bosses May Replace 3 Conservatives .............................28
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From: Liu Jian
Source: Japan Economic Newswire, 10/11/92

BEIJING, Oct. 12 -- The Chinese Communist Party is likely to replace three
leading conservative ideologists shortly, informed Chinese sources said
Sunday on the eve of the party's 14th Congress.

They identified the three as the director of the party newspaper, the
People's Daily, Gao Di, the head of the party's Propaganda Department, Wang
Renzhi, and Acting Culture Minister He Jingzhi.

All three have been under fire from senior leader Deng Xiaoping for taking
a critical stance against the government's reform-oriented open-door
policy. They were not replaced earlier because of a strong protest by other 
conservatives, the sources said.

They said a reshuffle of the party's core leadership during the congress is
likely to see the three replaced by more reform-minded appointees.

People's Daily Editor in Chief Shao Huaze will be promoted to director of
the party newspaper, and the deputy head of the Propaganda Department, Liu
Zhongde, will take over as acting culture minister, the sources said.

The new head of the Propaganda Department will be Zheng Bijian, vice
president of the Chinese Academy of Social Sciences, they said.

The reshuffle of the three posts will likely to be announced after the end
of the party congress, the sources said.

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5. U.S. and China Reach Agreement on Trade Accord .......................30
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From: Liu Jian
Source: DJ, 10/11/92

WASHINGTON -- The U.S. and China Saturday reached final agreement on a
trade accord the Bush administration hailed as a breakthrough in providing
U.S. companies access to the huge Chinese market.

Negotiators had reached agreement in principle late Friday but it wasn't
finalized until Saturday after the Chinese delegation had conferred with
higher authorities in Beijing.

The deal averts a threatened trade war between the two nations.

Deputy U.S. Trade Representative Michael Moskow, who led the U.S.
negotiating team, called the trade accord "an unprecedented and historic
agreement" that should open up the vast Chinese market and ultimately
result in billions of dollars of increased sales for American companies.

The administration has been increasing efforts in recent years to break
down trade barriers in China.

Breaking down the trade barrier was a way of lowering America's ballooning
trade deficit expected to hit $19 billion this year.

That makes the deficit with China second only to the U.S. deficit with
Japan.

Under terms of the new agreement, China agreed to phase out, over 5 years,
various licensing and import restrictions that have blocked the sale of
U.S.-made products.

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