GF 323
CONFIDENTIAL #2
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produce would be established in Henan Province by the end of 1989. Futures trading was supposed to provide
guarantees to producers and buyers (including the state) of a specific future price and quantity demanded/supplied and to assist producers in planning production. То achieve its objective, an established legal system for the enforcement of contracts, an efficient settlement system and broad participation by traders would be necessary. None of these exist in China at present.
20.
(iii) China's foreign debt
According to the Deputy Director of the State Administration of Exchange Control, China's short-term debts (with maturity of less than one year) amounted to US$10 billion by late 1988. For debts with maturity of over one year, the outstanding amount was approximately
(16). US$30 billion
With a view to re-centralising the control over the borrowing and the use of foreign loans, the State Council announced the following arrangement in December 1988 :
State Planning Commission
responsible for the overall foreign loan limit, gives approval to individual foreign loans and determines the types and sources of foreign loans
People's Bank of China
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responsible for the management and monitoring of foreign loans, and advises individual borrowers. on the type of currencies, terms of maturity and other loan conditions
(16) Other estimates ranged from US$21 billion to US$35
billion.
CONFIDENTIAL
機密