From: gaojeng@durras.anu.edu.au (J. Gao)
Subject: CND-Global 18-8-92 TUE
Summary: CND
Keywords: CND
Organization: Computer Services Centre, Australian National University
Date: 18 Aug 92 11:33:24 GMT

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

                              (News Global)

                        Tuesday, August 18, 1992

Table of Contents                                                # of Lines
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1. News Brief (4 Items) ................................................ 44
2. China Industrial Output up 21.8% in July, 19% in 1st 7 Months. ...... 44
3. Military Cooperation Between China and Japan in Peacekeeping. ........62
4. Li Peng to Visit Vietnam Despite Tension. ........................... 45
5. Chinese Leaders Continue to Support Reforms. .........................50
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1. News Brief (4 Items) ................................................ 44
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[Reuters 8/16/92] SHANGHAI -- A 24-year-old bus passenger, Dong Huibo, died
in the street, after tangling with one of the city's dreaded woman bus
conductors.   His nightmare began inside the bus when the ticketpuncher
snarled an insult about the shape of his backside.   She swore at him,
slapped his face and broke his glasses, made a grab for his testicles, then
stood back and aimed a vicious kick at his private parts.  As he scrambled
out of a window, the driver -also a woman- slammed her foot on the
accelerator pedal and sent him flying. (From: Di Bi Cao)
                        ____  ____  ____  ____

[AP-DJ, 8/17/92] SEOUL -- South Korea's Korea Development Bank is seeking
to open a representative office this year in China, the second for a
Korean bank, following the Korea Exchange Bank, an official at the Korean
bank said. According to the official, the state-run Korean bank has filed
an application with the China's central bank, the People's Bank of China,
to this end and is awaiting approval from China's central bank.
(From: Huijie Chen)
                        ____  ____  ____  ____

[AP-DJ, 8/17/92] HONG KONG -- A Chinese joint venture has submitted papers
with the U.S. Securities and Futures Exchange (SFC) to obtain a New York
stock listing, according to a senior Merrill Lynch executive, Liping Zhang,
the brokerage's vice president for China, as quoted in the official
English-language China Daily as saying that approval is expected within
the next two months.  Zhang said that if the listing succeeds, wholly
state-owned companies may follow suit. (From: A CND reader)
                        ____  ____  ____  ____

[AP-DJ, 08/16/92] A Hong Kong joint venture has established China's first
real-estate consulting firm, an indication of the growing significance of
the mainland's property market.  Jianyin Real Estate Consulting Corp. was
formed in Beijing by the colony's Francis Lau and Co. and two Chinese
partners, Trust and Investment Corp. of the People's Construction Bank and
China Real Estate Development Corp.  The venture is to provide domestic
and foreign investors with advice in such areas as valuation, development
design, real-estate management, project supervision and brokerage services.
(From: Huijie Chen)

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2. China Industrial Output up 21.8% in July, 19% in 1st 7 Months. ...... 44
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From: Huijie Chen
Source: AP-DJ 8/17/92

BEIJING -- China's industrial output in July was up 21.8% from the same
month in 1991, the biggest gain in more than four years, the official
China Daily newspaper reported Monday.

July's high output pushed the industrial growth rate for January-July to
19% compared with the same period one year earlier, the newspaper quoted
the State Statistics Bureau as reporting.  China calculates annual growth
rates by comparing each month with the same month of the previous year and
averaging the differences.

The People's Daily newspaper said heavy industry outpaced light industry,
which had been the leader in recent years. Energy production was up 6.2% in
July, it said, healthier growth than the sector has seen lately but still
falling far short of industry's needs.

The China Daily said economists at the bureau were unconcerned about the
high growth rate because worker efficiency and exports also were up. Imports
from January through July totaled 39.32 billion dlrs, up 22.6% from the same
period last year, while exports rose 16.4% to 42.75 billion dlrs, the paper
said.

Trade at China's borders, formerly tightly restricted or closed, doubled as
a result of new government encouragement. Direct trade at the border with
India recently resumed for the first time in decades, and new trading points
also have been opened along the borders with Vietnam, Russia and other
former Soviet republics.

Neither paper gave detailed performance figures for state factories, only
one-third of which have shown profits in recent years. But the papers said
state factories as a group turned 91.6 billion yuan over to the government
in profits and taxes during the first seven months of 1992, up nearly 18 pc
from the same period last year.

The China Daily said increased construction this year has caused inflation-
ary pressures but gave no figures. The last time the government released
comprehensive inflation figures was in May, when it said prices rose an
average of 11 pc in the 35 cities, the biggest jump in four years.

Raw material prices were up 6.4 pc in January-June compared with one year
earlier, the government disclosed last month, an increase likely to be
passed on to consumers in the second half of the year.

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3. Military Cooperation Between China and Japan in Peacekeeping. ........62
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From: Huijie Chen
Source: KYODO 08/17/92

China does not necessarily oppose Japan's intention to become a major
political power, military intelligence sources in Hong Kong reported,
quoting a senior Chinese official.

Yang Baibing, secretary general of the party's Central Military Commission
and director of the Chinese army's General Political Department, made the
remarks in a government document issued in May, the sources said.

Yang reportedly expressed concern over Japan's recent moves to authorize
the dispatch of Self-Defense Forces personnel to participate in U.N.-
sponsored peacekeeping missions, saying Japan is making efforts to turn
itself into a major political power from a major economic power.

He reportedly said, however, that for the moment China is not necessarily
opposed to Japan's intention to become a major political power if it uses
its economic power to contribute to world stability and prosperity in Asia.

The Nihon Keizai Shimbun reported Monday that Japan and China may jointly
work on projects under the United Nations peacekeeping mission in Cambodia
in an effort to deepen mutual understanding.

Japan's Self-Defense Forces (SDF) personnel may participate in a joint
operation with Chinese People's Liberation Army troops to reconstruct Phnom
Penh's international airport, the business daily quoted Japan's Foreign
Ministry sources as saying.  The joint effort would attest to the friendly
relations between Japan and China in the 20th anniversary year of
normalized ties, which will be best emphasized by the planned visit by
Emperor Akihito to China in October, the Nihon Keizai said.

The move follows China's call on Japan to take caution in sending SDF troops
overseas, and reflects Japan's eagerness to join hands with Beijing to
achieve peace in war-torn Cambodia, the newspaper said.

"The SDF and the People's Liberation Army would be able to enhance mutual
understanding through the joint peacekeeping operation," a Foreign Ministry
source was quoted as saying.  Japan is expected to send an SDF team, mainly
engineers, to Cambodia in October.

In another related development, Japan's largest selling newspaper, the
Yomiuri Shimbun, reported that Japan's Defense Agency has mapped out a
fiscal 1993 budget of 4.72 trillion yen, which proposes a record 6.8% cut
in spending on front-line systems.

The Yomiuri said in a front-page article that about 1.95 trillion yen or
41.4% of the total budgetary request will go to provisions and 1.84 trillion
yen or 39% for logistic and personnel costs.  Requests for heavy weapons
amount to 926 billion yen, or 19.6% of the proposed budget, falling below
20% for the first time, the daily said.

The Yomiuri said the agency is seeking appropriations for such military
hardware as an Aegis destroyer and an 8,900-ton troopship for the Maritime
Self-Defense Force and nine multiple-launch rocket systems, 23 Type-90
tanks, and nine launch vehicles for short-range, ground-to-air missiles for
the Ground Self-Defense Force.

The agency is also requesting funds for eight F-15 intercepters and a set
of Patriot ground-to-air missiles for the Air Self-Defense Force, the
Yomiuri said.

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4. Li Peng to Visit Vietnam Despite Tension. ........................... 45
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From: Charles P. Mok
Source: Reuters 8/14/92

HANOI -- Li Peng will become the first Chinese premier to visit Vietnam for
over 20 years when he travels to Hanoi later this year, diplomats said on
Friday.

"Regarding the visit by Chinese Premier Li Peng, both sides are now
preparing," the Hanoi foreign ministry ministry said without confirming the
date of his visit.

A dispute over the potentially oil-rich Spratly islands in the South China
Sea has fuelled tension between the nations.

But Li wrote to Vietnamese Prime Minister Vo Van Kiet last week in
conciliatory terms and confirming he will visit this year, diplomats said.

Li will be the first Chinese prime minister to visit Hanoi since Chou Enlai
in 1971.

Tensions rose after China signed an agreement with a U.S. company in May to
explore for oil off Vietnam's southern coast and occupied an island in the
Spratlys archipelago in July.

Diplomats say Vietnam and other southeast Asia countries are worried by
moves on the archipelago and a law China passed in February claiming the
Spratlys, other island groups and territorial waters.

But one Hanoi official said China had made some recent friendly gestures
towards Vietnam.  "It is a sign that China has realised its too aggressive,
too brutal approach in this issue has placed China in an unexpected
isolation. Even the United States will not support such aggression," the
official said.

Vietnam, which normalised relations with China last November, has been keen
to avoid any conflict.  It was angered and humiliated when China signed the
oil agreement with the U.S. company in Beijing on May 8. On the same day
Vietnam's foreign communist party chief, Nguyen Van Linh, visited the city
to meet Chinese communist party head, Jiang Zemin.

"Vietnamese people are so angry about that. That was a typical thing for
China to do," one Hanoi civil servant said.

The Spratlys are claimed wholly or in part by Taiwan, Malaysia, Brunei and
the Philippines as well as China and Vietnam.

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5. Chinese Leaders Continue to Support Reforms. .........................50
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From: Huijie Chen
Source: KYODO 08/17/92

Chinese Premier Li Peng and Vice Premier Zou Jiahua have expressed support
for stock market reforms in Shenzhen in the wake of riots over alleged
corruption in share allocations, a Hong Kong daily reported.

The vice premier said the city's policy of issuing stocks is generally
right, adding that if there are a few problems in the process of developing
a stock market, it does not matter, the daily said.

The newspaper also reported that Chinese premier Li Peng has telephoned
leaders and expressed continued endorsement for the city's stock market.

In a related development, a leading Japanese financial daily reported
Chinese authorities have decided to permit foreign banks to open branches
in seven more provincial cities, Dalian, Tianjin, Guangzhou, Fuzhou,
Qingdao, Ningbo, and Nanjing.

With this fall's 14th party congress just weeks away, Chinese Communist
Party officials are said queuing up to jump aboard senior leader Deng
Xiaoping's reformist bandwagon.

And in jocking ahead of the 14th party congress, now just weeks away,
Communist Party General Secretary Jiang Zemin became the latest leader to
embrace the Deng line in a speech carried in major national newspapers
Monday.

"All party comrades must continue to profoundly grasp and fully implement
the spirit of comrade Deng Xiaoping's important statements made earlier this
year," Jiang was quoted as saying. Jiang made the remarks during an August
8-16 visit to northwest China's Gansu Province, the People's Daily said.

Other senior leaders, including Premier Li Peng and Politburo Standing
Committee member Li Ruihuan, have launched similar calls in provinces,
swearing allegiance to Deng's drive for accelerated economic reform.

Such excursions from Beijing offer party leaders the chance to drum up
regional support and widen their power base in advance of the congress,
expected to be held in late September or early October.

In the meantime, it is Li Ruihuan, who is regarded the most moderate
Politburo Standing Committee member, who appears to be gaining most from
the united calls for reform.  Diplomatic sources said Li was recently
granted a private audience with Deng.  Deng reportedly told him to assume
full control over party propaganda and guard against a conservative revival.

Only last week, Li attacked "leftist" thinking and urged greater artistic
freedom in a speech delivered in Inner Mongolia.

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