GF 323
CONFIDENTIAL
機密
6.
The State Council held a conference recently to
discuss the trend of declining grain output since 1984(5). Grain output in 1988 is now expected to be 3%
lower than in 1987. Natural hazards, unreasonably low grain prices, shortages and high prices of fertilizers and insecticides, and insufficient rural infrastructural investment have caused this expected decline.
7.
With a view to containing the runaway growth in
capital investment, the State Council in October has instructed both the central and regional authorities that capital investment projects currently being planned will have to be screened carefully, particularly
"non-productive" projects
(6)
According to the State
Statistical Bureau, by September this year the total value of the projects currently under construction exceeded Rmb 1,000 billion (most will not be completed in the current year). The ministries in the central government
and localities have had 111 construction projects delayed
or stopped, which would cut investment by only Rmb 5 billion. However, it was claimed that there was an
improvement in the investment mix, with 76.4% belonging to
"productive" projects the highest share in the past ten
-
(5) On the other hand, the population in China has
increased by 60 million since 1984, hence the annual per capita grain output is expected to decline to 730 kilograms this year from 788 kilograms in 1984.
(6)
In China, only those investment projects that belong to primary production (like agriculture, fishery, mining and forestry), secondary production (like manufacturing and electricity generation) and some selected tertiary services (like transportation) are considered "productive" projects. Thus others like hotels, schools, hospitals, assembly hall, offices, shops and restaurants are all regarded as "non-productive" projects.
CONFIDENTIAL
機密
No comments yet.
Private notes are available after approval.