From: gaojeng@durras.anu.edu.au (J. Gao)
Subject: China News Digest (Global), Wed, 9/30/1992
Summary: CND
Keywords: CND
Organization: Computer Services Centre, Australian National University
Date: 30 Sep 92 06:16:01 GMT

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

                              (News Global)

                       Wednesday, September 30, 1992

Table of Contents                                                # of Lines
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1. News Brief (6 Items) .................................................49
2. China and South Korea Sign Trade, Cooperation Agreements .............47
3. China: Personal's Foreign Currency Savings up 25% So Far This Year ...18
4. Chinese Official Predicting Record Grain Harvest This Year ...........26
5. Beijing to Form Commissions to Watch Securities Market ...............42
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1. News Brief (6 Items) .................................................49
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[DJ, 9/29/92] DALLAS, U.S. -- Responding to Bush's veto to the bill that
would impose conditions on China's MFN status, the Chinese Foreign Ministry
issued a brief statement in Beijing Tuesday, saying, "We welcome this
decision by President Bush." In U.S., Democratic leaders said they would
again try to override Bush's veto before Congress adjourns at the end of
this week or next Monday.  "This ignoble act should be over-ridden," said
House Majority Leader Richard Gephardt, D-Mo. (From: Liu Jian)
			       ___  ___  ___

[AP-DJ, 9/28/92] SEOUL -- Samsung Co., South Korea's leading general trading
company, said Tuesday that it has signed a 200 million dlr contract with
China's state-run Jilin Chemical Industry Corp. to build an ethylene
producing plant in China. This is the largest ever contract between a South
Korean company and China for providing industrial plant facilities in China,
a Samsung official said. The plant, which is slated for completion in July,
1995, will be capable of producing 300,000 tons of ethylene annually.
(From: Huijie)
			       ___  ___  ___

[KYODO, 9/28/92] China plans to soon turn its attention to improving
relations with South Africa, the state-run Xinhua News Agency reported
Sunday. (From: Liu Jian)
			       ___  ___  ___

[KYODO, 9/28/92] Russia has agreed to grant China access to a Sea of Japan
port in a decision likely to strenghten moves to establish a Northeast Asia
trading bloc, according to Chinese officials. (From: Liu Jian)
			       ___  ___  ___

[PR Newswire, 9/29/92] TAIPEI -- The first McDonnell Douglas MD-11 three-
engine jetliner for Taiwan is at Chiang Kai Shek International Airport today,
being prepared for scheduled operations beginning this week.  The airline's
initial MD-11 services will link Taipei with Hong Kong and Bangkok. Operations
will be extended to North American cities as additional aircraft are
delivered.  The Taipei-based international carrier is the fifth airline in
Asia to operate the MD-11. (From: Liu Jian)
			       ___  ___  ___

[DJ, 9/28/92] MILPITAS, Calif., U.S. -- Creative Technology Ltd. said it
created a joint venture in Beijing, China, to develop and market its
multimedia products there. In a press release, Creative Technology said it
holds a 70% share in the joint venture, called Beijing Chuang Tong Multimedia
Computer Ltd. Other shareholders are China-based NewStone Co., 20%, and
China Da Heng Corp., 10%. According to Creative's president, K.S. Chay,
Chuang Tong will develop Chinese language multimedia CD-ROM software, develop
multimedia CD-ROM software that provides information on Chinese philosophy,
art, tourism and literature for the international market, and develop,
manufacture and distribute computerized digital musical instruments.
(From: Liu Jian)

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2. China and South Korea Sign Trade, Cooperation Agreements .............47
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From: Liu Jian
Source: AP-DJ, 9/29/92

BEIJING -- China and South Korea on Wednesday signed trade and economic
cooperation agreements, capping the first summit between leaders of the
former Cold War adversaries.

Chinese President Yang Shangkun bid farewell to South Korean President Roh
Tae-woo after the signing ceremony at the Diaoyutai State Guesthouse. The
South Korean president then departed for a visit to the industrial hub of
Shanghai, the final stop of his four-day China visit.

The accords provide measures to promote trade, create investment guarantees
and boost scientific and technological cooperation. The two countries also
signed an agreement to set up regular Cabinet-level committees on economic,
trade and technological cooperation.

The two sides issued a joint communique Wednesday that said the historic
summit between Yang and Roh had "great significance to peace and development
in Asia and the world as a whole."

The communique also emphasized the importance of easing tensions and promoting
de-nuclearization on the divided peninsula, but didn't mention what role
China would play in using its influence with North Korea to bring the two
Koreas closer together.

Yang stressed during his earlier talks with Roh that China believed using
international pressure to try to force North Korea to allow more in-depth
inspections of nuclear sites wasn't the best approach.

China said it supports continued dialogue between the two Korean governments
to resolve their disputes. But Beijing is likely to privately urge North Korea
to cooperate in efforts to turn the highly militarized peninsula into a
nuclear-free zone.

Roh said he hoped China would help persuade North Korea to allow inter-Korea
nuclear inspections, saying concerns over Pyongyang's atomic program were the
biggest obstacle to moving ahead with efforts to reunify the two rival Korean
governments.

The communique also highlighted another major focus of the summit: promoting
joint economic projects and trade that have increased rapidly in recent years
but are expected to skyrocket following the establishment of diplomatic
relations.

Both leaders believe stronger economic cooperation will lead to greater
prosperity in the region, the communique said.

Bilateral trade between South Korea and China this year is expected to
exceed 10 billion dlrs, up from 5.8 billion dlrs last year.

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3. China: Personal's Foreign Currency Savings up 25% So Far This Year ...18
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From: Liu Jian
Source: AP-DJ, 9/28/92

HONG KONG -- The value of foreign currencies held in mainland banks by
Chinese individuals has climbed 25% since the start of the year to 8.5
billion U.S. dollars and significantly more is believed to be held outside
the banking system, according to an official report.

An unidentified source cited in the story in the English-language China
Daily said the government is considering issuing domestic bonds denominated
in foreign currency by year's end to tap into the funds.

The level of non-yuan savings in China has increased some 17-fold since
1985, when it stood at 500 million dollars.

While it is unclear how much cash is kept outside banks, the level was
estimated at 1 million dlrs solely in Jiangshan city, in Zhejiang province,
just south of Shanghai.

Most of the funds come from remittances by foreign workers and overseas
relatives, as well as individuals employed by foreign businesses.

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4. Chinese Official Predicting Record Grain Harvest This Year ...........26
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From: Huijie
Source: AP-DJ, 9/28/92

BEIJING -- China's agriculture minister has predicted national grain
production will climb to 440 million metric tons this year, a 5-million-ton
increase over last year's record yield, an official newspaper reported
Tuesday.

But Agriculture Minister Liu Zhongyi warned that distribution remains a
problem for China's farmers, the China Daily said.

"Although China has achieved much success in developing agriculture, there
still exist many problems hindering further progress," Liu was quoted as
saying. The report gave no other details.

It said Liu told a news conference Monday that this year's increased grain
yield is expected despite a reduction of 1.6 million hectares of cropland.

"Although most areas in the country have been hit successively by such
natural disasters as drought, frost, plant diseases and pests, it looks
certain now that both grain and cotton will have a good harvest," he said.

Officials in China, the world's most populous country with 1.1 billion
people, have predicted that 500 million to 520 million metric tons of grain
will be needed by the end of the century to feed the increasing population.

Even with higher grain yields, officials have said China's agriculture
output is not keeping pace with population growth and grain imports will
have to be increased within a few years.

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5. Beijing to Form Commissions to Watch Securities Market ...............42
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From: Liu Jian
Source: KYODO, 9/29/92

HONG KONG -- The Chinese government will soon set up two new commissions to
regulate the country's fledgling securities industry, a Hong Kong daily said.

The Ming Pao Daily News quoted "a high-level authoritative source in economic
circles in Beijing" as saying the formation of the commissions will shortly
be announced in Beijing.

According to the Chinese-language paper, concerned departments of the
government, are drafting rules to govern operation of the bodies.

Vice Premier Zhu Rongji will become director of the National Securities
Commission (NSC), an official organization to be created under the State
Council at the ministerial level.

The second, called the National Securities Supervision Committee (NSSC),
will have only semiofficial status, but a great deal of power, Ming Pao's
source said.

The NSC will be a fairly small organization responsible for the macroeconomic
coordination of the securities market.  The NSSC will assume the duties of
examining and approving each new securities issue, including determination
of the issue's size.

These functions are currently shared between the State Planning Commission
and the People's Bank of China.  After the new bodies are established, the
bank will no longer be involved in managing the Shanghai and Shenzhen stock
exchanges, the report said.

The source said the reform arose as many localities sought to set up stock
exchanges after senior leader Deng Xiaoping stirred up the economic reform
drive with his visit to southern China's special economic zones early this
year.

Fearing things could get out of control, Beijing leaders began to study
establishing central government-level bodies to oversee the securities
market.  However, disputes over the functions and composition of the
commissions delayed their formation.

The mid-August chaos over the issuance of applications for stock certificates
in Shenzhen played a key role in accelerating the move to form them, the
source said.

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