[ut.chinese] Nov.

chi@vlsi.uwaterloo.ca (Bo Chi) (11/09/89)

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

		    (ND Canada Service)

                       -- Nov. 9 (III), 1989

Table of Contents
                                                                   # of Lines
1)  China Closes Private Firms, Collectives ............................. 42
2)  Bush Meets Nixon To Discuss His China Trip .......................... 20
3)  Black Markets Shut down in Beijing .................................. 36
4)  Kissinger Urge China And U.S. To Repair Relations ................... 66
5)  Congress to probe mail delays to China .............................. 12
6)  The Life around ``Chairman Mao''s Grandson .......................... 76 

1.  China Closes Private Firms, Collectives
[Source: Associated Press, 11/06/89]

    BEIJING  --   About 1 million rural factories,  one of the great  success
stories  of China's past decade of reforms,  have shut down this year because
of government austerity policies.

    Hundreds of thousands of other rural enterpriss either stopped production
or shifted to making other goods since the year began,   the official  Xinhua
News Agency said Tuesday, quoting Agriculture Ministry officials.

    The  China  Daily  said in a related report that the  number  of  private
business  people in China fell from 14.5  million at the end of 1988  to 12.3
million  now as a result of the economic slowdown and Beijing's determination
to tighten controls over the private sector.

    Xinhua did not say how many people lost their jobs as a result,  and  the
government  has  not  addressed  the  issue  of  rising  rural  unemployment.
Government  officials  have said unemployment will double from 2  percent  on
Jan.  1, 1989, to 4 percent on Dec. 31, but those figures refer only to urban
workers. Laid-off rural workers can return to farming, the government says.

    Fast-growing  rural  enterprises  and private business  have  made  major
contributions  in  the  past  decade,  by providing services  and  goods  the
inefficient state-run economy can't handle and by providing millions of  jobs
for surplus farm workers.

    At  the end of 1988,  China had 18.8  million rural enterprises employing
nearly 100 million people. Total output value last year was $175 billion,  up
about 40  percent from 1987, exceeding the nation's agricultural output value
and accounting for a quarter of that of the entire country.

    The   China   Daily  said  that  despite  the  sharp  drop   in   private
entrepreneurs,  the government stands by its policy of encouraging supervised
growth  of the private sector and allowing some people to "become  prosperous
first through honest labor and lawful dealings."

    It  quoted  a government official as saying the state wants  the  private
sector  involved  in  food and drink,  repair work,  handicraft  and  service
industries that are not profitable for state and collective enterprises. Most
private business people now are involved in commerce.  Only 15.5  percent are
in service and food industries.

    The  official said tax collection on individual incomes must be  improved
to  "readjust the staggering profits some private entrepreneurs make  and  to
hold back upstarts."  Tax evasion is pandemic, with 90  percent of Shanghai's
private entrepreneurs not paying taxes.

2.  Bush Meets Nixon To Discuss His China Trip
[Source: Associated Press, 11/06/89]

    President Bush had dinnerwith former President Nixon at Sunday to hear  a
report on Nixon's just-concluded trip to China,  White House spokesman Marlin
Fitzwater said today.

    During his trip, Nixon had urged the United States and China to put aside
differences  and resume normal relations despite lingering  tensions from the
bloody crackdown on pro-democracy forces.

    "The president (Bush)  found those views quite interesting and productive
but our general policy has not changed,"  Fitzwater told reporters.   "We  do
want to preserve the relationship and ...  as events proceed we will continue
to consider possible actions that would change our relationship."

    The White House  dinner  had  not been announced in advance.   After  the
meeting, Nixon returned to New York.

    Other dinner guests included Vice President Dan Quayle,  Deputy Secretary
of  State Lawrence Eagleburger,  national security adviser  Brent  Scowcroft,
deputy national security adviser Robert Gates,  CIA Director William Webster,
White House chief of staff John Sununu and Michel Oksenberg, a  China scholar
and a member of Nixon's entourage.

3.  Black Markets Shut down in Beijing
[Source: Associated Press, 11/06/89]

    BEIJING  --   Authorities have shut down dozens of black markets  in  the
capital, exposed thousands of illega street traders and confiscated thousands
of pornographic books in a 100-day campaign, a newspaper said Monday.

    The  campaign  unearthed  110,000   unlawful  businesses  and  gained the
government $567,000 in taxes and fines, the newspaper said.

    It  said 36  black markets were closed down and 500  "unlawful  cliques,"
many dealing in fake or inferior goods, were disbanded.

    Among  the main targets of the cleanup were privately owned hair  salons,
bars,   cigarette  booths,  street billiard operators,  black  market  money-
changers and unlicensed street traders.

    The  paper  said  the  campaign,   part of  a  nationwide  drive  against
pornography, netted 820,000 copies of books, magazines and albums.

    It  also  appeared linked to moves initiated by the government's  current
conservative leadership to control private enterprise.

    Authorities  stress  that  private enterprise will  continue  to  play  a
supplementary role in China's socialist economy, but since the June crackdown
on the pro-democracy movement and subsequent purge of reformers, advocates of
market-oriented private trade have been on the defensive.

    Many  private  businesses  or small collectives  have  halted  operations
because  of  increased  taxes  or inability to get  credit,   energy  or  raw
materials because the government now gives priority to state-run enterprises.

    Before  the campaign,  Beijing officials had expressed concern over  what
they described as a rampant increase in unlicensed business activities.

    The report also said officials had persuaded 80,000  rural laborers,  who
operate many of the free market street stalls, to return to their hometowns.

    It said similar campaigns will be repeated to provide a "clean and  fresh
atmosphere" for the Asian Games in Beijing next September and October.

4.  Kissinger Urge China And U.S. To Repair Relations
[Source: UPI, 11/06/89]

By Gary Aderman

    HONGKONG --  Former Secretary of State Henry Kissinger Monday urged China
and  the United States to repair relations "on the basis of  mutual  respect"
and  said  Beijing must resume its economic decentralization plan to build  a
modern society.

   Kissinger  also  said the United States should not  allow  China's  brutal
crackdown  on  democracy protesters in June to completely  disrupt  relations
between the two nations.

    "If  America  cuts  itself off from China,  it will affect  all  American
relations  in  Asia,"  said Kissinger,  who served in the  administration  of
President Nixon, who just completed a visit to China.

    "It  is imperative,  in my view,  that a dialogue resume on the basis  of
mutual  respect,"   Kissinger told a seminar on "The Future  of  Asia-Pacific
Economic Relations."

    The  United States imposed an arms embargo on China  following  Beijing's
use  of troops against the unarmed demonstrators at Tiananmen Square and  has
severely restricted the flow of high-technology equipment.

    Kissinger  also said ties between the United States and China will play a
key  role  in future contacts between America and former  archenemy  Vietnam,
whose active solicitation of Western trade and  aid has attracted the rest of
U.S. business.

    "I   believe  that  even  without  confrontation,    especially   without
confrontation,   Chinese  good sense plus the stated objectives of  the  most
important  leaders  will  return  it  to  the  course  of  decentralization,"
Kissinger said.

    The  dilution of central government control in favor of greater  autonomy
for China's provinces and cities a cornerstone of the modernization policy of
senior  leader Deng Xiaoping has fallen out of favor in Beijing and is blamed
for triggering inflation and scarcity of goods.

    "If (China) chooses the route of modernization, it will have to implement
what  it has stated as its own conviction the idea of  decentralization,   of
greater  emphasis  on  markets,   of  greater  responsibility  to   (private)
enterprises and more education for its citizens," he said.

    Kissinger qualified his remarks by pointing out China's unpredictability.

    "So  far  as I know,  very few China watchers had predicted  any  of  the
events  since  I  first got to know China in 1971,"  he said.  "I  have  seen
Chairman Deng come and go, twice, totally unexpectedly."

    Deng was purged twice during the tumultuous 1966-76  Cultural  Revolution
instigated  by  the late Chairman Mao Tse-tung,  yet ultimately prevailed  to
push China's opening to the West.

    There is,  however, a risk China will isolate itself from the rest of the
world  and  live on its own resources,  something it has  done  periodically.
Such  a  move  would cause it to fall behind its  neighbors  in  development,
Kissinger said.

    He  said better U.S.-China relations should take precedence over improved
ties between the United States and Vietnam, indicating the latter would anger
the Chinese.

    "I believe it is very important for the United States at some early point
to  resume  our strategic dialogue with Beijing and I would be  very  careful
during a period of tension with Beijing to engage in acts that may appear  to
Beijing as if we are attempting to encircle it," Kissinger said.

    Vietnam,  which borders southeast China,  has been soliciting trade  with
the West for the last two years despite a U.S. trade boycott.

5.  Congress to probe mail delays to China
From: yawei@rose.bacs.indiana.edu (Mr. Yawei)
[Source: Herld-Times (Bloomington, IN), 11/08/89]

    U.S.  Rep. Frank McCloskey, D-Ind., has scheduled a committee hearing for
Thursday on why U.S. mail to the PRC is being delivered after long delays, if
at all, since the June protests.

    McClosky  chairs  the House Post Office and Civil  Service  Subcommittee,
which  he  will convene in Washington Thursday to look into the  issue.   The
committee  also will look at ways to improve delivery of mail from the US  to
the Soviet Union.

    A 1988 hearing on limitations on incoming mail by Soviet Union brought to
light a list of items classified as non-mailable to the Soviet Union from the
US.   Since then the US has worked to persuade Soviet officials to change the

The Life around ``Chairman Mao''s Grandson  
From:  <IZZYQ00@OAC.UCLA.EDU> (J. Ding)
[source: AP, by Jones, Terril]

  Mao  Xinyu tries to lead a quiet life at a prestigious Beijing university
despite  being  the  grandson of Mao Tse-tung, the revolutionary founder of
communist hina.

   "I'm  just  an  ordinary  student,"  says the shy, chubby sophomore, who
wears patched clothes and canvas army shoes. "I have 20 classes a week, and
play badminton and Chinese chess with classmates."

    The   19-year-old  history  major  at  People's  University  has  seven
roommates  in  a  cramped first-floor dorm room where he sleeps on a bottom
bunk and is known simply as "Sixth Brother."

    Yet,  on  Saturdays,  a  black military limousine glides up to take the
grandson of the Great Helmsman to an expensive health club, where he enjoys
the sauna.

    On  Wednesdays,  when  he  doesn't have class, the limo takes Mao home,
where he has his clothes washed and an army cook prepares "good food."

    And  mail  pours  in  from  people  across  the country nostalgic about
Chairman  Mao,  who  was  virtually  deified as a living god by millions of
adoring Chinese during his lifetime, and curious about his grandson.

    Mao  Xinyu is the only child of Mao's second son, Mao Anqing, a retired
Russian  translator  for  the  People's  Liberation Army, and novelist Chen
Raohua, who wrote under the pen name Shao Hua.

    His  home,  where  his parents and grandmother live, is near the Summer
Palace  in northwestern Beijing. "I can't tell you more than that," he says
with a chuckle. "It's a state military secret."

    His  favorite class is the history of Sino-U.S. relations, and he spoke
excitedly  about the recent visit to Beijing by former President Nixon, who
paved  the  way  to normalizing ties between Washington and Beijing in 1972
with his historic meeting with Mao Tse-tung.
    Not that the elder Mao's place in history is entirely glorious.

    Western  and  Chinese  historians  alike  credit  him with the abortive
"Great  Leap  Forward"  of  1958-59,  a  drive  to increase production that
ultimately  plunged  China  into  widespread starvation and poverty. He was
also  behind  the  disastrous  1966-76  Cultural  Revolution,  during which
intellectuals  and  merchants  were  reviled, schools closed and Red Guards
spouting Mao slogans went on a nationwide revolutionary rampage.

    "History  will judge him as a great man, a leader of great ability, who
made great contributions," Mao Xinyu says. "But he had some faults."

    Despite   his  interest  in  politics,  Mao  declines  to  discuss  the
pro-democracy protests that rocked China this spring, other than to say "of
course" he did not participate in the marches and demonstrations.

    He  does say, however, that vandals' splattering of the portrait of Mao
overlooking  Tiananmen  Square  on May 23 "made me mad. It made all Chinese
mad. It was just a couple of guys trying to attract attention."

    Mao  attracts  plenty  of  attention  of  his own, receiving bundles of
unsolicited mail.
    "Ordinary  people,  students,  intellectuals, they all write," he says.
"Mostly they're nostalgic about Chairman Mao. But a lot of them say they're
very happy I've gone on to college."

    Some are girls who "just want to be friends."

    Mao says someday he'd like to visit the hometown of Abraham Lincoln and
see  the  Lincoln  Memorial  in  Washington.  "Lincoln  was  a  progressive
capitalist revolutionary, uniting the North and South in the civil war," he

    Mao  also  takes  some  philosophy  courses.  Asked  who  his  favorite
philosophers are, he replies, "Marx. And my grandfather."

|  Executive Editor:  Deming Tang          E_mail:  Tang@ALISUVAX.bitnet    |
News    Transmission    chi@vlsi.uwaterloo.ca   (or)
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Local Editor: Bo Chi    chi@vlsi.waterloo.edu