From: gaojeng@durras.anu.edu.au (J. Gao)
Subject: CND-Global, Tue, September 1, 1992
Summary: CND
Keywords: CND
Organization: Computer Services Centre, Australian National University
Date:  1 Sep 92 07:16:59 GMT

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

                              (News Global)

                       Tuesday, September 1, 1992

Table of Contents                                                # of Lines
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1. News Brief (3 Items) ................................................ 30
2. South Korea President Reportedly to Visit China in September .........12
3. Returning Dissident Student Shen Tong Arrested in Beijing ............33
4. US Official: Chinese Public Needs Education On Stock Market ..........22
5. China to Approve Foreign Bank Branches ...............................44
6. Big Bribery, Corruption Cases on Rise in China .......................24
7. An Erratum on the Russian Fighter Plane MIG-15 ...................... 15
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1. News Brief (3 Items) ................................................ 30
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[CND, 08/31/92] In recent CND internal annual election, Dr. LIN Wei of the
University of Washington was elected CND Manager for 1992-1993, he has now
assumed the position. As a volunteer's group, CND will continue to provide
quality services to computer network readers.  (From: Bo Xiong)
                         ____  ____  ____  ____

[AP 08/28/92] BANGKOK, Thailand--Vietnam's state airline has resumed flights
to China after a 13-year suspension, the official Voice of Vietnam radio
reported Wednesday.

A Vietnam Airlines flight from Hanoi arrived Tuesday in the southern
Chinese city of Guangzhou, formerly known as Canton. The radio station said
there will be monthly flights until October, then two or three flights a
week.

Vietnamese and Chinese leaders agreed to restore transportation and other
contacts during a summit last November. The summit officially ended the open
hostility that started with Vietnam's invasion of Cambodia in late 1978 and
its ouster of the pro-Chinese Khmer Rouge government.

Earlier this year, China resumed flights from Guangzhou to Vietnam's Ho
Chi Minh City and from Beijing to Hanoi. (From: A CND Reader)
                        ____  ____  ____  ____

[UPI 8/31/92] New York--The New York Chinese Businessmen's Association
Monday loaded a 48-foot trailer with supplies for the victims of Hurricane
Andrew in Florida.

The $40,000 worth of supplies includes canned food, bottled water, baby
food, batteries and other items, said Henry Yung, president of the
association which has almost 200 members in wholesale and export businesses.

"Our members are mostly immigrants who have built successful businesses
in this country," Yung said. "We want to help victims of the hurricane as a
way to show our appreciation what this country has offered us." (From: A CND
Reader)

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2. South Korea President Reportedly to Visit China in September .........12
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>From: Jian Liu
Source: AP-DJ, 8/30/92

SEOUL -- South Korean President Roh Tae-woo will visit China Sept.  27-30
at the invitation of Chinese President Yang Shangkun, the national news
agency Yonhap said Sunday.

South Korea and China established diplomatic relations last week, ending
decades of Cold War animosities. The accord capped a decade of expanding
economic ties that finally prodded Beijing to recognize the Seoul government
despite its decades old friendship with Communist North Korea.

Roh will meet Chinese leaders in Beijing and will return home via
Shanghai, the report said, quoting an unidentified government official.

The official said South Korea hoped to delay the trip for several days so
that it didn't conflict with Roh's planned Sept. 20-24 trip to the United
Nations in New York, but that Chinese leaders pressed for an earlier date.

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3. Returning Dissident Student Shen Tong Arrested in Beijing ............33
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>From: A CND Reader
Source: UPI, 8/31/92
By: Charles Hutzler

A leading Chinese political dissident who fled to the United States after
the 1989 crackdown on student protesters at Tiananmen Square was arrested
Monday in Beijing after sneaking back into his homeland to continue the
pro-democracy movement, a colleague said.

Shen Tong was arrested by police at his family's home around 1:30 p.m.
EDT Monday, or 1:30 a.m.Tuesday in China, said Marshall Strauss, executive
director of the Newton, Mass.-based Democracy for China Fund, co-founded by
Shen.

Strauss said he learned of Shen's arrest when he made a long-planned
telephone call from the Boston area to the dissident leader.  "Shen Tong
said, 'The police are here,'" Strauss said, and then someone hung up the
telephone. Strauss called back and Shen managed to relay a pre-arranged code
word signaling his arrest.

Shen's immediate whereabouts could not be determined. A reporter for the
New York Times in Beijing called Shen's home but an unidentified person
answered, saying Shen was gone, Strauss said.

A European television reporter at the home also may have been detained,
Strauss said.

Shen's arrest came hours before he was to hold a news conference to
announce the setting up of a Democracy for China Fund office in China.

As a 21-year-old Beijing University student, Shen helped put together a
negotiating team to talk with government officials during the pro- democracy
demonstrations in the spring of 1989. He fled China after the brutal June 4
crackdown.

While studying at Brandeis University in Waltham, Mass., Shen set up the
Democracy for China Fund to help continue the pro-democracy movement.

Shen entered China through the southern tourist resort of Guilin on Aug.
5, Strauss said.

Officials have known about Shen's return for about a week, when he
arrived at his family home near the Communist Party and government office
buildings, Strauss said. Shen had hoped that his high profile in the West
would protect him from official action, Strauss said.

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4. US Official: Chinese Public Needs Education on Stock Market ..........22
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>From: Huijie
Source: AP-DJ, 8/31/92

BEIJING --China must educate the public about the volatility of stocks
and establish a reliable financial information system if it expects to
internationalize its fledgling stock markets, the U.S. stock market's top
regulatory official said Monday.

Richard Breeden, chairman of the Securities and Exchange Commission
(SEC), who spoke to reporters at the U.S. Embassy, has been meeting top
Chinese banking and investment officials as part of the SEC's first official
trip to the Communist state. He is scheduled to visit the Shanghai and
Shenzhen stock markets later this week.

Though he declined to comment on riots earlier this month in Shenzhen
over application forms for shares of stock, Breeden said any emerging market
is likely to have accounting, regulatory and information problems.

Breeden said Chinese officials didn't "see any reason to turn away from
the development of securities markets. They recognize that there has been an
imbalance in supply of securities and demand for securities."

Breeden recommended that China set up a regulatory organ similar to the
U.S.'s SEC, draft securities laws consistent with international market
standards and ensure fair and honest earnings reports and other financial
news.

At the same, the government must inform people there is "a difference
between buying a lottery ticket and buying a share of stock" and that stock
purchasing "is not a one-way ticket to wealth and riches," Breeden said.

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5. China to Approve Foreign Bank Branches ...............................44
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>From: A CND Reader
Source: UPI, 8/31/92

BEIJING -- China's central bank is planning to allow the opening of nine
foreign bank branches in Chinese cities in the near future, an official
newspaper reported Sunday.

The English-language China Daily said the move is aimed at increasing
funds available for investment as China's economy expands, fueled by the
revival of economic reforms this year.

The newspaper quoted Di Weiping, head of the supervision division of the
People's Bank of China as saying the bank is expected in the near future to
approve nine foreign banks for branches in four cities.

Among the banks are Britain's Standard Chartered and France's Banque
National de Paris, Japan's Yamaguchi Bank and Sumitomo Bank, the Hong Kong
and Shanghai Banking Corp. and two other Hong Kong banks, Nan Yang
Commercial and the Bank of East Asia.

The newspaper said the central bank was cautious during the 1988-1991
economic austerity program, but that now China "has suffered from a shortage
of investment funds even as economic growth shifts into high gear."

"Pushed by strong economic growth this year and demands from local
cities, the central bank this year finally decided to loosen its restriction
on foreign banks," it said.

Although 218 foreign bank representative offices have been set up in
China, along with 47 foreign-funded banking and finance institutions, the
banks until this year were only allowed branches in the country's five
special economic zones and Shanghai.

The central bank, however, recently authorized branches in seven other
cities -- Dalian, Tianjin and Qingdao in the northeast, Ningbo and Nanjing
in east China and Fuzhou and Canton (Guangzhou) in the south.

"Besides pooling capital, foreign banks have introduced new procedures
that encourage state-owned banks to restructure themselves and improve
management practices," the China Daily noted.

In a separate dispatch, however, the China Daily also quoted a senior
foreign trade official as sounding a cautionary note on foreign investment,
saying tougher controls may be needed to ensure foreign investment projects
are of proper quality.

Jiao Sufen, director of the Foreign Investment Administration of the
Ministry of Foreign Economic Relations and Trade, warned the "nationwide
frenzy" for foreign investment has spawned "less-than-desirable" projects.

"Many local government have made it almost compulsory to absorb a set
amount of foreign investment per year, ignoring economic efficiency," Jiao
said, adding: "We don't need foreign investment in every case."

The concern has arisen as China has devised plans to allow foreign
participation in a much wider range of industries, from services like
tourism to infrastructure and real estate.

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6. Big Bribery, Corruption Cases on Rise in China .......................24
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>From: A CND Reader
Source: UPI, 8/31/92

BEIJING -- Major cases of bribery and corruption by Chinese government
officials rose by more than 13 percent between January and July this year,
an official newspaper said Sunday.

The state-run People's Daily said cases of official bribery and
corruption involving at least $1,850 rose 13.3 percent over a year earlier.

The newspaper said corruption and bribery had cost China $45 million in
economic losses during the seven months.

The newspaper, listing some of the most significant corruption cases
handled so far this year, noted the manager of a trade development company
in south China who embezzled $650,000.

China's public prosecutors handled over 48,000 cases of bribery and
corruption involving government officials between January and July, the same
as last year, the People's Daily said.

Of the cases, 457 involved county-level government officials and 12
involved officials at departmental level, the newspaper said. It did not
give details of which other levels of officials had been involved.

Anger over government corruption was a major impulse behind pro-
democracy demonstrations that swept China in 1989 and China's state-run
media have been anxious to highlight government efforts to eliminate
corruption within its ranks.

In a recent government-sponsored opinion poll however, more than 78
percent of respondents said "you can't get things done without giving
gifts," suggesting official corruption remains widespread.

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7. An Erratum on the Russian Fighter Plane MIG-15 ...................... 15
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From: Yungui Ding, 8/31/92

In the subject news "Bush Nears Decision to Let Taiwan Buy U.S. War
Planes" (item No.4 of August 31 CND-Global), the last sentence in the
eleventh paragraph reads:

"China, meanwhile, is buying top-of-the-line Russian SU-27 fighters and
acquiring the right to manufacture another highly capable Russian model, the
MiG-15."

As pointed out by several readers (Anthony Lee, Doug Luo and a reader in
Iowa State University), "MIG-15" must be a typo, since China was already
able to manufacture MIG-15 in the early 50's.

It has been confirmed that the typo occured in the original news report
that CND received. Verification of the correct model of the airplane is
on-going.  We thank the readers for writing to us about the error.

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