TNAG-2804-FCO40-4044-National-People-s-Congress-and-Chinese-People-s-Political-Co-1993 — Page 25

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TOWNSHIP AND VILLAGE ENTERPRISES WHOSE OUTPUT VALUE HAD GROWN BY 200 PER CENT IN THE PERIOD AND WHICH NOW ACCOUNTED FOR ONE THIRD OF ALL INDUSTRIAL OUTPUT. HE REFERRED TO SUCCESSES IN OTHER AREAS, FOR EXAMPLE PRICE REFORM, HOUSING AND SOCIAL WELFARE REFORMS, RISING LIVING STANDARDS AND OPENING OF THE ECONOMY TO THE OUTSIDE WORLD. ALL OF THIS HAD ACCELERATED IN 1992, FOLLOWING DENG'S ''IMPORTANT SPEECHES'' AND THE DECISION OF THE 14TH PARTY CONGRESS TO ESTABLISH A ''SOCIALIST MARKET ECONOMY''. THE YEAR HAD SEEN GNP GROWTH OF 12.8 PER CENT AND THE HIGHEST USE OF FOREIGN FUNDS SINCE THE START OF THE REFORM PROCESS.

5.. LI NONETHELESS ACKNOWLEDGED WHAT HE CALLED FAILINGS AND MISTAKES MADE IN THE PROCESS OF SOCIAL AND ECONOMIC DEVELOPMENT. THE HIGHLIGHTED LOW ECONOMIC EFFICIENCY, IRRATIONAL STRUCTURE OF PRODUCTIONS: AGRICULTURAL PROBLEMS: LAGGING INFRASTRUCTURAL AND BASIC INDUSTRIAL DEVELOPMENT: LAGGING SERVICE SECTOR AND IRRATIONAL INCOME DISTRIBUTION. LATER ON, HE DREW ATTENTION TO THE IRRATIONAL PROLIFERATION OF DEVELOPMENT ZONES IN 1992 AND TO THE STILL FRAGILE STATE OF GOVERNMENT FINANCES.

6"

TURNING TO THE FUTURE, LI SAID THE NEXT 5 YEARS WERE CRUCIAL IN CHINA'S MODERNISATION PROGRAMME. THE STATE COUNCIL HAD MADE ''NECESSARY'' ADJUSTMENTS TO THE 8TH (IE CURRENT) FIVE YEAR PLAN IN THE LIGHT OF CHANGED DOMESTIC AND INTERNATIONAL CONDITIONS, AND AVERAGE ANNUAL GROWTH THROUGH THE PERIOD OF THE PLAN WOULD BE INCREASED FROM 6 TO 8 OR 9 PER CENT. IF THIS COULD BE MAINTAINED ACROSS THE COUNTRY, CHINA COULD ACHIEVE ITS GOAL OF QUADRUPLING 1980'S GNP LEVEL IN THE NEXT 5 YEARS, INSTEAD OF BY THE YEAR 2000, AS ORIGINALLY PLANNED. THE BASIC TASK WAS TO PUT INTO PRACTICE THE SPIRIT OF THE 14TH CPC AND TO SEIZE THE OPPORTUNITY TO QUICKEN THE PACE OF REFORM, OPENING UP AND MODERNISATION.

7. IN TERMS OF SPECIFIC TASKS, LI SET OUT THE FOLLOWING:

(I)

STRENGTHEN THE AGRICULTURAL BASE:

(II) ACCELERATE THE CONSTRUCTION OF INFRASTRUCTURE AND BASIC INDUSTRIES (IN THIS CONTEXT HE TALKED OF STARTING THE THREE GORGES PROJECT AS SOON AS APPROPRIATE''):

(III) DEVELOP TERTIARY INDUSTRY:

(IV) EXPAND SCIENTIFIC AND TECHNOLOGICAL UNDERTAKINGS:

(V)

(VI)

CREATE A NEW SITUATION IN EDUCATION:

OPEN WIDER TO THE OUTSIDE WORLD (LI CALLED FOR CHINA'S STATUS AS A GATT SIGNATORY TO BE RESOLVED):

(VII) RAISE THE PEOPLE'S LIVING STANDARDS ON THE BASIS OF ECONOMIC

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