8

Six important strategic planning principles

14.

In order to achieve the objectives of the

Seventh Five-Year Plan, the Central Committee of the CCP

has outlined six important strategic planning principles, as summarised in the following paragraphs.

15.

(i) Promoting comprehensive and stable

agricultural development

Agricultural development is described as "the foundation for the development of China's economy" The

Plan calls for the production relations and-structural

set-up of the production units in the agricultural sector to be further adjusted with a view to achieving specialization, commercialization and modernization. "contract responsibility system" would undergo further improvement and perfection, and free market forces would be allowed to play a more influencial role in determining the prices of agricultural products.

16.

2

In line with the aim of achieving

The

specialization, commercialization and modernization of the

agricultural sector, the Plan calls for more intensive

development in forestry, animal husbandry, cultivation of fresh water and marine products, market gardening and dairy products. Also, the development of rural industries and of township enterprises, supported by the agricultural produce derived from the surrounding areas, is to be greatly encouraged. Development of township enterprises is regarded as "the essential way to revitalise China's rural economy". However, probably in response to the criticisms launched by the opponents of reform,

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CONFIDENTIAL # 3

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