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---"Focused Coverage Informed Perspectives"---Thu, Sep 11, 1997 edition

National Congress Coverage congress abuzz over expected radical overhaul of state-owned sector

Also in this edition . . . 1: HK legislators call for referendum 2: President Lee in Honduras 3: in Beijing today Pyongyang and Washington agree to meet 4: high rates of failure for Korean investment 5: China releases Tibetan prisoners 6: monk on hunger strike 7: and more . . .

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HONG KONG

Hong Kong: ( SCMP Internet Edition ) Two ousted legislators called for Chief Executive Tung Chi-hwa to bring his electoral package to the people for a referendum. Unionist Lee Cheuk-yan and Democratic Party member Cheung Man-kwong challenged Mr Tung's assertion that the electoral package, which would reduce the functional constituency from 2.5 million to 180,000, was supported by the people. The paper reports: Mr Lee said: "The best way is to give people a choice between full democracy and his electoral proposal by putting it to a referendum. "If he claims Hong Kong people want the electoral changes and do not want more democracy, then he should put it to the test. If he wins, we will be convinced," Mr Lee said. "If he contends otherwise, he should put it to a referendum to see whether Hong Kong people are willing to have their right to vote deprived." According to an August 3 poll, 70 percent disagreed with the switch to corporate voting blocks; around 54 percent preferred the "one man, one vote" system used in the 1995 election; and 26 percent favoured proportional representation, reports the paper. Will Mr Tung respond? Hong Kong: ( Exco plans to meet consuls ) Tung Chi-hwa's Executive Council is considering to meet with the consular corps on a regular basis. This would facilitate an exchange of views, reports the South China Morning Post. Hong Kong: ( SCMP Internet Edition ) Some villagers in the New Territories have asked the government to change its housing policy to provide them with free land to build high-rises, reports the South China Morning Post.

PARTY CONGRESS

Reform: leadership is expected to deal with loss-making state sector by selling all but 1000 enterprises ( Congress to Canonize Deng, Sell State Firms ) The 15th Party Congress will likely enshrine Deng Xiaoping's maxim of "building socialism with Chinese characteristics" by putting it into action. In a Reuters dispatch published by Inside China the writer notes an expectation among analysts and party-insiders that Jiang Zemin will announce the liquidation of all but 1000 of China's 370,000 state-owned firms. The reporter notes, neither Jiang nor the congress's 2,048 delegates will likely term it as a 'privatization' scheme, and instead they will use 'common ownership' to describe the entire range of schemes for divesting the government of its debt. As the paper explains, Some firms will be merged with more successful partners, some will sell stock to investors or employees, some will list on China's stock markets, a few will go bankrupt and some will be simply sold off to the private sector. "What's happening at this congress is the Chinese leadership is really making a bold attempt to clear up the state enterprise problem," said Denis Simon, director of Andersen Consulting's China Strategy Group. ( Hong Kong Standard China ) But in so far it is a bold attempt, the leadership understands it must move gingerly through this potential mine field littered not only with the mere number of enterprises but also the sheer millions of people who will be affected by the moves. The Hong Kong Standard, for instance, gives us a little more perspective into the kind of day Vice-Premier Zhu Rongji had in explaining a topic so sensitive and a plan so bold that he could not even use precise terminology to describe it to the members of the congress. In their quest to increase "productivity", the leadership is expected to use Jiang's speech tomorrow to begin the formal task of persuading its members that "no efforts" go untried in achieving this end. When delegates heard of this they apparently asked for clarification, and Mr Zhu was sent to reassure them. As the paper writes, "Mr Zhu assured the committee that public ownership might still be retained but the important thing was to try out new ways of running the companies. " "A majority accepted Mr Zhu's assurances on the need to keep the language ambiguous." "Mr Zhu is almost certain to succeed Li Peng as China's next premier." Intentionally ambiguous, such wording hopes to obscure the inevitable, that foreign investors will likely take a larger role in relieving the government of this debt. Opening state-owned enterprises to outsiders, even if only in theory, is politically dangerous and emotionally charged for a people who have learned from texts or first hand the vagaries of capitalism in their history. How might we else understand the political mind set? Another phrase expected from Jiang Zemin tomorrow is: "all kinds of business operations and organisational forms could be adopted so long as they conform to the law in socialised production'," writes the paper. ( Enterprise reform 'not privatisation' ) But Xu Guangchun, spokesman for the congress, tried to temper the media's discussion and understanding of these radical changes: "Reforms of state-owned enterprises will lead to a strengthening of the state sector . . . It is different from privatisation," reports the paper. Leadership: Jiang raises Deng for own gain ( Jiang seeks to raise status by elevating Deng ) By raising Deng Xiaoping's thought to the level of Marx, Lenin and Mao, President Jiang Zemin is trying to solidify his own power in China's political universe. Apparently, Jiang arrived at his momentous decision to raise Deng's thought after unifying various points of view in the party---whatever that might mean. The Shanghai gang, of which Jiang heads, stands to benefit the most as Jiang consolidates his power and mandate, notes the paper.

TAIWAN DESK

Taiwan: ( SCMP Internet Edition ) President Lee is in Honduras where he spoke today before the congress in Tegucigalpa. In his speech Mr Lee called for the world to recognize two distinct China's and, writes the South China Morning Post, he lamented how Taiwan's efforts to join the United Nations and other international bodies "have been intentionally blocked by communist China, whose Government has unilaterally declared it represents all of China," reports the paper. Mr Lee said: "Taiwan has enjoyed the most prosperous period in China's 5,000-year history and is not a inconsiderable member of the international community." The remarks come two days after the mainland broke its relations with the Liberia, the West African nation which declared its recognition of both China and Taiwan.

KOREA WATCH

Korea: despite defections Pyongyang will come to table for talks ( 09-12-97 : 4-Way Talks Set for September 18; Meeting to Proceed despite Defection Row ) In Beijing today U.S. Deputy Assistant Secretary of State Charles Kartman and North Korean Vice Foreign Minister Kim Gye-gwan agreed to resume preliminary peace talks as planned, reports the Korea Herald. The two sides will meet on September 16, three days before the resumption of talk involving China, the two Koreas and the United States. The paper notes, there had been some doubt as to whether the North would return to the talks after its ambassador to Egypt, Jang Sung-gil, and his older brother sought political asylum. The North has accused the Central Intelligence Agency in aiding the two 'criminals' escape, but with little room left to maneuver the North decided to meet with Mr Kartman in Beijing yesterday. yesterday, reports the paper. The bilateral talks are separate affairs from the second round of preliminary peace talks slated for September 18-19, and they should have little bearing on the discussions involving all four powers, the paper writes. In their September 16 talks the US and North Korea will discuss "the defection issue, North Korea's missile exports and other bilateral issues," the paper reports. ( 09-12-97 : North Appoints New Envoy to Egypt ) In related news, Pyongyang announced its new ambassador to Egypt. Korea: high failure rate for China investments ( 09-12-97 : Korean Investments in China Perform Poorly ) According to an article published by the Korea Herald, half of all Korean ventures in mainland China have failed. Combined losses so far have totaled $6.83 billion, and at least one analysts predicts this number will rise to $35 billion by the turn of the century if corrective steps are not taken.

TIBET

Tibet: release of political prisoners raises questions in itself ( China Releases 111 Tibet Prisoners early ) The government announced today the commutation of sentences for 111 prisoners, some jailed for counter-revolutionary activities, Reuters reports. The paper notes human rights groups have raised concerns over China's use of nebulous 'counter-revolutionary' and 'endangering state security' laws. The government announced an annual reduction of sentences for a select number of prisoners, but no other details were forthcoming. Exactly why authorities would choose to reduce sentences at this time is unclear, but with Jiang Zemin's arrival in the United States in a few weeks could Beijing want to make positive overtures on a complex and emotive issue? Tibet: ranking monk has been on a hunger strike since July, group announces ( Jailed Tibetan Is Reportedly on a Hunger Strike ) Chadrel Rinpoche, 58, the highest ranking Tibetan monk jailed in China reportedly began a hunger strike in July to protest the mistreatment he receives from the hands of his jailers. Human Rights China says Chadrel Rinpoche is incarcerated in a prison in a remote part of Sichuan province where he is serving a six year term meted out to him in April for passing information to the Dalai Lama, reports the Times. The paper writes, "he had led the search for the 11th reincarnation of the Panchen Lama, Tibetan Buddhism's second-ranking spiritual leader, a search that was approved by Beijing. He was accused of telling the Dalai Lama of his search team's choice after the Dalai Lama announced the name of his choice for the new Panchen Lama from his exile in India. "China had hoped to use the search to divide Tibetans, and the Dalai Lama's annoucement effectively robbed Chinese leaders of the chance to name the new Panchen Lama," writes the paper.

ANTHROPOLOGY

( The Anthropological Index Online ) The anthropology index is searchable and full of interesting things on China.

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