[ut.chinese] Dec. 23

chi@vlsi.uwaterloo.ca (Bo Chi) (12/23/89)

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

		    (ND Canada Service)

                       -- Dec. 23 (I), 1989

Table of Contents
                                                                  # of Lines
 Headline News  .......................................................  16
 1. Loyalists Groomed to Head Provinces  ..............................  35
 2. A $100 Million Bonanza for Chinese Military  ......................  35
 3. World Bank Poised to Resume Loans to China  .......................  55
 4. PRC Proposes Amendments to Joint Venture Law  .....................  26
 5. Developments in EE and SU: Warsaw Pact Allies Condemn Killings  ...  27

 Headline News
From: IZZYQ00@OAC.UCLA.EDU (J.D.) and lin@cs.stanford.edu
Source: AP News, 12/20-22/89

    An  Agriculture  Department report shows that China in  1990  will  keep
its  huge  lead  as  the  world's  biggest pork producer despite a shrink in
its overall swine inventory.

    China has bought additional U.S. wheat under a  price  subsidy  program,
the Agriculture Department said Wednesday.

    China said the events in Romania were an internal  affair.  In  Beijing,
the China-Romania Friendship Association opened a laudatory photographic ex-
hibit called "Romania in Socialist Construction."

1. Loyalists Groomed to Head Provinces
From: kwchan@hkucs.UUCP (Chan Ki Wa)
Source : South China Morning Post, 12/21/89

By Willy Wo-Lap Lam

    The conservative leadership in Beijing is working to ensure that  loyal-
ist cadres are appointed to top positions in the party committees of 12 pro-

    Next spring, Beijing is scheduled to reshuffle the leadership  of  party
committees responsible for running 12 provinces and autonomous regions.

    A top priority of the party Central Committee's Organisation  Department
is to ensure that both "red and expert" cadres are picked for leadership po-

    The harshness of the leadership's political demands was stressed by  the
party  organisation chief, Mr Song Ping, when he met organisation department
cadres from 18 provinces and major cities, in Beijing.

    Analysts say the newly assertive conservative leadership is  anxious  to
further  weed out die-hard supporters of the former party chief, Mr Zhao Zi-
yang, and the deceased former party chief, Mr Hu Yaobang.

    During recently convened planning conferences, local-level cadres  tried
to resist Beijing's efforts to take back financial decision-making powers.

    Several regional leaders can be considered to be close followers of  ei-
ther  Mr  Hu  or  Mr  Zhao.  For example, members of the so-called Communist
Youth league faction -- which has traditionally supported  liberal  policies
-- still staying on in power include Mr Wang Zhaoguo, the Governor of Fujian
province and Mr Hu Jingtao, party boss of the Tibet Autonomous Region.

2. A $100 Million Bonanza for Chinese Military
Source: United Press International, 12/20/89

By: David Schweisberg

    President Bush's approval for China to launch  three  U.S.-built  satel-
lites  will   mean   a   $100  million bonanza for the Chinese military that
could aid its missile program, Western military and  industry  sources  said

   The  White House move, announced Tuesday, authorized the export to  China
of  three communications satellites made by American aerospace companies for
launch  aboard Chinese rockets, the first full-fledged business for  China's
aspiring commercial space industry.

    The  deals  were  suspended  for  review  after  Bush imposed  sanctions
against   China  in response to the Chinese army's bloody suppression of the
pro-democracy  movement  last  June.  The  sanctions also included  economic
measures and a suspension of military sales.

    The  Bush  administration,  under  intense  domestic  criticism for  its
recent  initiative  to improve relations with Beijing, defended the decision
as  in  line  with  its  goal  of  keeping the sanctions from damaging  U.S.
commercial interests in China.

    But  according  to  Western  military and aerospace experts, the  launch
payments   to  the  nominally civilian Chinese space companies involved will
actually be under the control of China's military.

    And  given  the  direct  links  between  civilian  and  military  rocket
programs,   they refused to rule out that some funds could ultimately accrue
to China's missile development program.

3. World Bank Poised to Resume Loans to China
From: kwchan@hkucs.UUCP (Chan Ki Wa)
Source: South China Morning Post, 12/22/89

    The World Bank and the French and Japanese  governments  are  poised  to
lift  economic and political sanctions on China, despite the fact that Beij-
ing has not modified in any substantial way its domestic and  foreign  poli-

    World Bank sources said yesterday that the international financial  body
is likely to resume lending to China early next year.

    The easing of the US position on economic co-operation with  China  will
make it easier for the World Bank to resume loans, the sources said.

    A resolution adopted by the US Congress, calling for  a  freeze  on  new
loans to Beijing, is due to expire at the end of this month.

    "Given the recent easing of US restraints on economic aid to China,  the
US Congress is unlikely to call for the extension of the resolution," a Bank
source said.

    Diplomats in Beijing said yesterday that France,  the  sternest  Western
critic  of Beijing's crackdown on the democracy movement, had made an about-
face by offering to finance a joint-venture deal in China.

    In saying it will provide public funds for a new  Citroen  plant,  Paris
has given Beijing every reason to believe that its intransigence towards the
West is paying off, analysts said.

    The offer represents a breach in economic sanctions decided at  a  late-
June  European  Community summit in Madrid in response to the Chinese crack-

    At the same time the Tokyo-based economic newspaper Nihon Keizai report-
ed  yesterday  that  the  Japanese  Government has decided to invite Chinese
Machinery and Electronics Industry Minister, Mr Zou Jiahua, to  visit  Tokyo
in  January, partly lifting the ban on interchange of ranking government of-

    The Japanese media also reported yesterday that the Government  has  de-
cided  to  begin consultations with China in January on Japanese yen credits
totaling 100 billion yen (HK$5.42 billion) for six projects  included  in  a
second  package  of  Japanese  loans totaling 470 billion yen (HK$25.48 bil-

    On Wednesday Japanese bankers had said they were prepared  to  extend  a
credit  line  to  China that was arranged four years ago, if it was formally
requested by the state-controlled Bank of China.

    The Foreign Minister, Mr Taro Nakayama, told a group of business leaders
that  Japan  was  preparing  for the "new development" of its relations with

4. PRC Proposes Amendments to Joint Venture Law
From: tang@ssurf.ucsd.edu
Source: Wall Street Journal, 12/22/89

    China's legislature proposed amendments to a law  governing  joint  ven-
tures with foreign firms.

    The amendments will include guarantees that the government will not  na-
tionalize  or  requisition  joint ventures, the official media reported. The
changes also stipulate that the two partners in a joint venture  may  choose
the  chairman  and  vice chairman of their operation; the current law states
that the chairman must come from the Chinese side.

    The amendments also says that joint venture  partners  need  not  set  a
specific  time  for the length of their contract.  Previously all joint ven-
tures were for fixed periods, often 20 or 30 years.

    Some 8,000 joint ventures have gone into operation  since  China  opened
its  doors  10 years ago, and foreign investors have provided about $14 bil-
lion for business venture.

5. Developments in EE and SU: Warsaw Pact Allies Condemn Killings
From: kwchan@hkucs.UUCP (Chan Ki Wa)
Source: South China Morning Post, 12/21/89

Vienna -- The brutal crushing of anti-government demonstrations  in  Rumania
has  raised a storm of indignation from the country's liberal neighbours and
Warsaw Pact allies.

    Only the Soviet Union took a more cautious line, saying  it  lacked  the
detailed information on which to pass proper judgement.

    Hungary, Poland and Czechoslovakia were the most outspoken in their con-
demnation of the bloodshed in Timisoara.

    Czechoslovakia's probable next president, the play-wright Vaclav  Havel,
denounced  "the  regime of the Rumanian Dracula, who is killing his people."
the Polish parliament condemned the "repression and terror," while  in  Hun-
gary a black flag was hoisted over the parliament building.

    East Germany also made an official protest against  the  repressive  ac-
tion.  Even  Bulgaria,  which has been on good terms, expressed shock at the
precipitous closure of their common border and the "tragic news" coming from

NOTE OF EDITOR: Dracula, a vampire in a horror novel of Bram Stoker.

|   Executive Editor:  Sanyee Tang, tang@ssurf.ucsd.edu                    |
News       Transmission    chi@vlsi.uwaterloo.ca   (or)
-----------------------    ---------------------
NDCadada Editor: Bo Chi    chi@vlsi.waterloo.edu    
Sat Dec 23 12:24:35 EST 1989