TNAG-2292-FCO40-3304-Official-visits-from-Hong-Kong-to-China-1991 — Page 14

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sector, the State Council decided in July 1991 to establish

the Production Office(6) under its direct supervision,

with a view

Commission in 1992(7).

to

re-establishing

the State Economic

5.

Partly because

of the

inefficiency of the

state-owned enterprises,

the bottleneck sectors

the growth rates of output from

like energy and certain key raw

materials were again lagging significantly behind the

double-digit growth rate of overall industrial output in

1991,

(6) In July

the State Council abolished the Production Committee under the State Planning Commission and established the Production Office with Vice-Premier Zhu Rongji as Director. The Production Office will take part in devising annual production targets, and in directing the deployment and transportation of resources. It will exercise certain controls over the use and allocation of resources and

(7)

funds, imports and exports, prices, credit and taxation. This office will also be responsible for planning technical upgrading, production management and professional training.

The State Economic Commission (SEC) was abolished in 1988. But the Economic Commissions at the provincial level were kept intact. The SEC is mainly responsible for planning, co-ordinating and managing the activities of the state-owned industrial enterprises. Former Premier Zhao Ziyang is now being blamed for the current inefficiency of the state-owned sector since it was he who decided to abolish the State Economic Commission in 1988.

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