NES, THE BRAIN HARVEST
PREVIOUS YEAR EXCEPT 1924. THERE WERE, HOWEVER, DECREASES IN THE CUTPUT OF COTTON AND OIL-BEARING CROPS (OF 14.6 PER CENT AND 6.7
CENT PESPECTIVELY).
9.GROSS INDUSTRIAL OUPUT ROSE IN VALUE BY 11.1 PER CENT, TO ACCOUNT FOR 59.4 PER CENT OF THE TOTAL SOCIAL PRODUCT. IN PHYSICAL TERMS, THERE WAS AN INCREASE IN THE OUTPUT OF ALMOST ALL PRODUCTS OF LIGHT AND HEAVY INDUSTRY. THE CUPUT OF COAL WAS 370 MILLION TONNES (SEMI-COLON) OF STEEL 52 MILLION TONNES (SEMI-COLON) AND OF CRUDE
OIL 131 MILLION TONNES.
10. THE FIGURES FOR TRANSPORT SHOW THAT ALMOST ALL CARGO WAS CARRIED WITHIN THE COUNTRY BY RAIL OR BY WATER. THE AMOUNT CARRIED BY ROAD WAS LESS THAN 5 PER CENT OF THE AMOUNT CARRIED BY EITHER OF THE TWO
OTHER MEANS.
11. NO FIGURES ARE AVAILABLE FOR UNEMPLOYMENT OR UNDER-EMPLOYMENT. THE OFFICIAL RETAIL PRICE INDEX INCREASED BY 6 PER CENT (7 PER CENT IN URBAN AREAS AND 5 PER CENT IN THE COUNTRYSIDE).
12. EXTERNALLY, CHINA HAD A BETTER YEAR. AT US DOLLARS 30.2 BILLION, EXPORTS INCREASED IN VALUE BY 13.1 PER CENT. AT US DOLLARS 42.2 BILLION, IMPORTS INCREASED BY 1.6 PER CENT. THE DEFICIT ON CURPENT ACCOUNT WAS US DOLLARS 3.3 BILLION.
13. THE BIRTH RATE IN 1986 WAS 20.77 PER THOUSAND AND THE DEATH RATE 6.69 PER THOUSAND. THE POPULATION THEREFORE ROSE BY NEARLY 15 MILLION DURING THE YEAR. THE TAPSET OF A STABLE POPULATION OF 1.2 BILLICIN BY THE YEAR 2000 IS LOOKING INCREASINGLY UNREALISTIC (THE ARTICLE ON THE SUBJECT IS THE MOST RECENT ECONOMIST IS A GOOD ONE).
PROBLEMS
14. THE INTERNAL PROBLEM WHICH WORRIES THE GOVERNMENT MOST IS INFLATION. AT A RECENT DINNER WITH EC AMBASSADORS, VICE-PREMIER TIAN JIYUN ADMITTED IN TERMS THAT THE INSTALMENT OF PRICE REFORM DUE FOR 1987 HAD BEEN POSTPONED ON ORDER TO HEAD OFF PRICE RISES FOR BOITH CONSUMERS AND INDUSTRIAL CONCERNS. THE INFLATION OIF 1925 AND 1996 WAS GENERATED BY LARGE INCREASES IN WAGES AND BONUSES, VARLIDATED BY A LARGE INCREASE IN THE MONEY SUPPLY. DESPITE DECLARED POLICIES, WAGES AND BONUSES HAVE CONTINUED TO INCREASE IN 1997 (BY OVER 16 PER CENT IN JANUARY/FEBRUARY OVER THE GAME PERIOD OF 1986). AS A RECULT, THERE IS CONTINUED DEMAND-SIDE INFLATIONARY PRESSURE. INFLATION HAS BEEN GIVEN EXTRA INCETUS BYLTHE TOTAL OP PARTIAL DECONTROL DE MANY PRICES. AS MOST PRICES IN CHINA WERE BELOW MARKET CLEARING LEVELS, THEIR DECONTROL MEANT EITHER HIGHER FLOATING PRICES OR House spe
ARKET PRICES.
THE OVE
YET
SE SEALING
DUELL 3 AND
DECONTROLLING PRICES. THERE IS NO EVIDENCE
CONFIDENTIAL
い
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