CONFIDENTIAL
120043
MDHIAN 9
INCLUDE FOREIGN BORROWING AND TREASURY BOND ISSUES IN REVENUE, OR 34 BILLION RMB ACCORDING TO WESTERN ACCOUNTING PRACTICES. THE BUDGET FOR 1989 FORECASTS A DEFICIT OF 35 BILLION RMB. FOREIGN BORROWING WILL INCREASE 19 PER CENT TO 16.5 BILLION RMB, SUBSIDIES FOR ENTERPRISE LOSSES ARE BUDGETTED TO RISE OVER 18 PER CENT OVER ACTUAL EXPENDITURE LAST YEAR AND ALMOST 30 PER CENT OVER THE BUDGETTED FIGURE FOR LAST YEAR. PRICE SUBSIDIES WILL RISE 29 PER CENT OVER LAST YEAR'S ACTUAL EXPENDITURE.
4. THE PLAN. YAO YILIN'S PLAN FOR 1989 FOLLOWED VERY CLOSELY THE GENERAL LINES LAID DOWN BY LI PENG AND ECHOES HIS MESSAGE OF AUSTERITY. AGRICULTURE IS TO GROW 4 PER CENT, INDUSTRY 8 PER CENT, GNP 7.5 PER CENT. TOTAL INVESTMENT WILL BE REDUCED 20 PER CENT. THE RATE OF INFLATION WILL BE LOWER THAN LAST YEAR. IN LINE WITH THE NEW INDUSTRIAL POLICY AGRICULTURE, ENERGY AND MATERIALS, AND TRANSPORT ARE TO RECEIVE SPECIAL ASSISTANCE. REFORM WILL FOCUS ON IMPROVING THE ENTERPRISE CONTACT
RESPONSIBILITY SYSTEM AND STRENGTHENING THE POWERS OF THE CENTRAL
BANK.
5.
SUPREME PEOPLE'S PROCURATORATE. LIU FUZHI REPORTED THAT A CRACKDOWN HAD BEEN MADE ON ECONOMIC CRIME SINCE LAST MARCH. 66,000 ECONOMIC CASES, MOSTLY OF BRIBERY AND EMBEZZLEMENT, HAD BEEN TAKEN ON BY PROCURATORAL OFFICES, AN 11 PER CENT INCREASE OVER 1987. OVER HALF OF THOSE CONVICTED FOR CORRUPTION WERE PARTY MEMBERS. THEY ALSO INVESTIGATED 40,000 CASES OF INFRINGEMENT UPON PEOPLE'S RIGHTS BY GOVERNMENT AND SECURITY OFFICIALS, A 7.8 PER CENT INCREASE OVER 1987. THESE RANGED FROM UNLAWFUL DETENTION TO EXTORTION OF CONFESSION BY TORTURE. 227 INCIDENTS RESULTED IN DISABILITY OR DEATH.
6.
SUPREME PEOPLE'S COURT. REN JIANXIN REPORTED PUBLIC ORDER ''BASICALLY STABLE'', BUT REVEALED A 9 PER CENT INCREASE IN MURDER CASES, 43 PER CENT INCREASE IN ROBBERY AND 63 PER CENT IN SERIOUS THEFT. THERE WAS AN 8 PER CENT INCREASE IN CRIMINAL CASES HEARD BY THE COURTS AND A 13 PER CENT INCREASE IN CONVICTIONS. REN ATTRIBUTED A LARGE PROPORTION OF SERIOUS CASES TO TRANSIENTS IN BIG CITIES, THE OPEN COASTAL REGIONS AND ALONG MAJOR TRANSPORTATION ROUTES. 30 PER CENT OF THOSE CONVICTED WERE SENTENCED TO DEATH OR OVER 5 YEARS' IMPRISONMENT. NOTED AN INCREASE IN JUVENILE DELINQUENCY. THOSE AGED BETWEEN 14 AND 18 ACCOUNTED FOR 9 PER CENT OF CONVICTED OFFENDERS, UP 13 PER CENT. HE URGED A NUMBER OF MEASURES TO DEAL WITH JUVENILE OFFENDERS, INCLUDING THE ESTABLISHMENT OF JUVENILE COURTS.
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REN ALSO