[ut.chinese] Nov. 20

chi@vlsi.uwaterloo.ca (Bo Chi) (11/20/89)

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

		    (ND Canada Service)

                       -- Nov. 20 (I), 1989


Table of Contents
                                                                 # of Lines
1)  Europe's Changes Worrying: Premier Li Peng  ....................... 90
2)  Greater Sino-romanian Coorperation asked by Ceausescu ............. 60
3)  China  alters policy on parallel currency .......................... 23
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1.  EUROPE'S CHANGES WORRYING: LI
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From: HKnet
[South China Morning Post, Friday, November 17, 1989]

EUROPE'S CHANGES WORRYING: LI

 Chinese Prime Minister Li Peng said yesterday that economic sanctions
against his country were "useless and unwise," and that China was "worried
about" changes taking place in Eastern Europe.

 He also revealed that China would provide Pakistan with a 300,000 kilowatt
nuclear power station, which will be the country's second.

 Both China and Pakistan are members of the International Atomic Energy
Agency(IAEA).

  "Therefore, construction of the plant will be under the IAEA safeguards,"
he said.

 Mr Li's remarks came at the end of two days of talks with Pakistani prime
Minister Benazir Bhutto and President Ghulam Ishaq Khan.

 At a press conference in Rawalpinde, Mr Li said the recent, dramatic
reforms in Eastern Europe are not likely to spread to China.

 "We still have to wait and see whether the developments in Eastern Europe
will be positive or negative," Mr Li said.

 "But we will continue with socialism. There will be no changes in China's
system or policies because of developments in Eastern Europe.

 "In Eastern Europe, drastic changes have taken place ... China is also
naturally worried about it," he said.

 Mr Li, who begins his visit to Bangladesh today, said that many countries
are already realising that imposing sanctions against China is both useless
and unwise.

 "China will stick to its policy of reform and opening up to the outside
world," Mr Li said.

 Referring to the recommendation by the United States congress last week
that a stiffer set of trade sanctions be imposed on China, Mr Li said: "The
Chinese people will never submit to such pressure and will not barter away
principles."

 "Our channels of contact with the US Government are still open," he added.

 Pakistan historically has played a major part in bringing together china
and the US.

 It was Pakistan's 1971 manoeuvring that helped arrange then President
Richard Nixon's 1972 visit to Beijing, the first by a US president since
the communists took power in China in 1949.

 Mr Li did not rule out a repeat performance by Pakistan in thawing
today's cool relations between the two countries.

 "Whether Pakistan is ready to promote or facilitate Sino-US relations
returning to normal is up to Pakistan," Mr Li said through an interpreter.

 China and United States have been military sponsors of Pakistan, which
is wedged between an often-hostile India to the east and a civil war in
Afghanistan to the west.

 But Mr Li said: "China and Pakistan have not reached any defence pact."

 China has provided Pakistan with military aid which is only for defensive
proposes, he added.

 Mr Li also said that China wants to improve its relations with India
through consultations.

 "There has been a border dispute between the two countries. It could be
solved through peaceful negotiations and consultations. Yet it will take a
long time and process," he said.

 "If both sides are sincere on it, it can be solved," he added.

 He said that any improvement in Sino_Indian relations "is not against
anyone, nor will it affect Sino-Pakistani relations".

 Mr Li's visit to Pakistan, Bangladesh and Nepal is his first official trip
abroad since the June crackdown of china's pro-democracy movement.

                                        [Agencies]
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2.  Greater Sino-romanian Coorperation asked by Ceausescu
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FROM:    "J. DING"                     <IZZYQ00@UCLAMVS.BITNET>
BY: LUBMAN, SARAH,   (UPI) BEIJING

  Hard-line  Romanian President Nicolae Ceausescu asked Chinese leaders for
support  and  increased  cooperation Saturday in the face of what he called
"the  serious  international  situation,"  a  veiled  reference  to reforms
sweeping Eastern Europe.

   In  an  interview  with the state-run People's Daily, Ceausescu, who has
steadfastly opposed the reforms implemented by other Warsaw Pact countries,
stressed  the  need  for greater Sino-Romanian cooperation "along socialist
principles" in response to unspecified international problems.

    "Right  now,  there  are  a  lot  of  problems  existing in the world,"
Ceausescu  said.  "The international situation is very complicated. At this
time  more  than  ever we need to strengthen cooperation between Communist
Parties and socialist nations."
    Although  Ceausescu  did  not elaborate, the recent historic opening of
the  border  between  East  and  West  Germany in combination with radical
political  liberalizations throughout the East Bloc appear to have left him
in  need  of reassurance that China will not abandon its hard-line position
on socialism.

    Ceausescu  is  not alone  in  his concern. North Korean President Kim
Il-Sung  recently  paid  a secret visit to China from November 5-7, meeting
with senior leader Deng Xiaoping. Kim reportedly focused on the recognition
of South Korea by Poland and Hungary.

    The  meeting  was not reported by official Chinese media partly because
both  China  and North Korea are equally worried about recent events in the
East Bloc, sources said.

    China  has reacted to the news in East Germany by reporting the border
opening  as if it were a mere technicality, with no mention of the symbolic
dismantling of parts of the Berlin Wall. A government official said Chinese
authorities  were playing down recent events in Berlin for fear of arousing
a new wave of dissent.

    Ceausescu's  remarks  are  another  indication  he  is  alarmed  by the
developments in Eastern Europe and hopes to rely on China as a firm ally.

    "In view of the serious international situation, our two countries must
take  action  to  benefit  both  our  own  and  other  countries' socialist
development," he said, referring specifically to the problem of "doing away
with the stages of underdevelopment."

    But China, over the past four months, has lost three former Third World
allies to  Taiwan.  China  broke off ties with Grenada, Liberia and Belize
after  the  three  nations independently established relations with Taiwan,
which allegedly offered fat financial incentives in exchange.

    The  interview  with  Ceausescu  coincides with  a visit to Romania by
ruling Politburo  member  Qiao  Shi,  who departed Friday for Bucharest to
attend the 14th Romanian Communist Party Congress.
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3. China  alters policy on parallel currency 

           By Reuter; Globe and Mail News on China (11/20/89):
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Foreign residents in Beijing who tried to change foreign exchange
certificates back into dollars this week were told by Bank of China
they needed an airline ticket out of the country and could only change
half the amount originally bought. Other foreign residents tried to
deposit FECs in existing Bank of China accounts but were told by clerks
without explanation that deposits were no longer accepted.

Either they are going to abolish the FEC altogether or restrict its
use.

THis could mean that thousands of Chinese possessing FECs would
suddenly find them worthless because they would have no means to show
they had acquired them legally.


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|  Executive Editor:  Gang Xu (NDUS)       E_mail:  GXU@KENTVM.bitnet       |
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News    Transmission    chi@vlsi.uwaterloo.ca   (or)
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Local Editor: Bo Chi    chi@vlsi.waterloo.edu    
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send out time: Mon Nov 20 12:56:27 EST 1989