Subject: CND-Global, June 2, 1993

From: [email-masked]
Date: Tue, 1 Jun 1993 23:10:51 -0500

*  *  *   C h i n a   N e w s   D i g e s t   *  *  *

                               (News Global)

                          Wednesday, June 2, 1993

Table of Contents                                                 # of Lines
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1. News Briefs (3 Items) ................................................ 34
2. Chinese Economist Says Inflation Shut Plants, Drained Banks .......... 34
3. Japan, China Call for Resolution of North Korea
        Nuclear Weapons Impasse ......................................... 50
4. Chinese Products See Growing Sales in U.S. ........................... 40
5. Disney Sells Mickey Mouse Comics in China after 4-Year Absence ....... 27
6. June 2, 1989: Troops Repelled from Advance to TianAnMen;
                 Hou Dejian et al Starts Hunger Strike .................. 97
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1. News Briefs (3 Items) ................................................ 34
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[AP, 5/31/93] BEIJING -- China has pumped nearly $8.7 billion into public
works this year in an effort to ease strains in transport, energy and other
areas, an official report said Monday.  Investment in transport and
telecommunications rose nearly 138 percent in the first four months of 1993
from the same period last year, the official Xinhua News Agency said.
Funding for raw materials rose nearly 49 percent and for energy 17 percent,
it said.  But an international expert on transport said Monday that China
won't be able to meet its transportation demands for the next 20 to 25
years.  (Forwarded by: Deming)
                                ___ ___ ___

[UPI, 5/31/93] MACAO -- Nine men were executed by firing squad after being
convicted of staging a series of highway robberies and other holdups in
southern China, according to reports from the Zhuhai Special Economic Zone.
The official reports reaching the adjoining Portuguese enclave of Macao
said the nine men, all in their 20s, were executed Monday immediately after
their trials. The men were executed by firing squad after the Zhuhai
Intermediate People's Court pronounced the death sentence, the reports said.
(Forwarded by: A CND Reader)
                                ___ ___ ___

[AP-DJ, 5/31/93] BEIJING -- China will hold a second trade fair in South
Africa this year to help improve economic ties with South Africa, an
official newspaper said Monday.  The China Economic and Trade Consultants
Corp., which is sponsoring the fair, said about 70 Chinese firms, mostly
in the machinery, electronics and textiles industries, will attend the
October fair in Johannesburg, the China Daily reported. The first fair was
in April.  The newspaper also said South Africa will hold its first trade
fair in China next March. China has expressed interest in buying advanced
South African technology in mining and metallurgy.
(Forwarded by: Jian Liu)

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2. Chinese Economist Says Inflation Shut Plants,Drained Banks ........... 34
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Forwarded by: Jian Liu
Source: Dow Jones International News
Date: 5/31/93

HONG KONG -- A top Chinese economist has said inflation in China has forced
factories to shut and drained bank funds, a report said Sunday.

Yang Peixin, a senior government economist under China's State Council or
cabinet, told the pro-Beijing Wen Wei Po newspaper that price reforms, a
cornerstone of China's economic reforms, should be put on hold this year to
control inflation.

"With prices rising at current levels, continuing to lift price controls
on coal, oil, electricity and other products would only add fuel to the
fire," Yang said.

He said, however, that plans to free rail freight prices should continue.

Yang said all Chinese banks except for the central Bank of China were
running at loss. Bank deposits dropped 4.5 billion yuan in March, meaning
banks had difficulty paying for farmers' crops and could not finance
industry, he said.

"This has made 2 to 3% of factories stop production or work at half
capacity," he said.

The amount of currency circulating outside bank and finance systems had
risen from 40% to about 60%, weakening the role of banks as economic
regulators, Yang said. He also said the Renminbi Yuan was losing its value,
with one U.S. dollar now buying over nine yuan outside banks against an
official rate of one dollar to just over five yuan.

He said retail sales jumped 25.4% in April, the largest increase since
1988, when iflation was at 30%.

Yang said yearly interest rates for bank deposits should be raised 5% to
12.56% in an effort to draw money back to banks. China has already raised
interest rates this month, but many observers said the raises were too
little, too late.

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3. Japan, China Call For Resolution of North Korea
        Nuclear Weapons Impasse ......................................... 50
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Forwarded by: A CND Reader
Source: UPI
Date: 6/1/93

Tokyo -- Prime Minister Kiichi Miyazawa and Chinese Foreign Minister Qian
Qichen called Tuesday for a resolution of the international rift resulting
from North Korea's withdrawal from the Nuclear Non-Proliferatrion Treaty.

The two met for 40 minutes at Miyazawa's official residence, sharing the
view that a solution to the impasse on the problem is desireable. The
Japanese prime minister said it is an extremely serious security issue for
Tokyo.

Miyazawa reminded Qian that as a nuclear power and a member of the NNT,
China has a special responsibility to exert efforts to stem the
proliferation of nuclear weapons, officials said.

Qian replied that China also attaches great importance to the matter as it
seeks a nuclear-free Korean Peninsula and that his visits during the past
week to Japan and South Korea are part of Beijing's efforts find a solution
to Pyongyang's NNT withdrawal.

Officials said Qian told Miyazawa China would like the Japanese prime
minister to pay an official visit to Beiging.

The Chinese Foreign Minister had said Monday that high-level talks between
North Korea and U.S. officials may help persuade Pyongyang to retract its
pullout, effective June 12.

North Korea must be persuaded to rescind its decision through international
cooperation and dialogue, not by pressure, Qian said.

"China more than before hopes that (North Korea's) talks with the United
States will yield some progress," Qian told the Japan National Press Club.
"This could be very helpful for a resolution of the problem."

Ranking officials from the two countries will meet in New York Wednesday.
U.S. Assistant Secretary of State Robert Gallucci, heading the U.S.
delegation, has said the United States is prepared to address North Korea's
security concerns if the isolated communist country agrees to stay in the
NNT.

North Korea is expected to seek U.S. assurances that it will not use nuclear
weapons against it.

Pyongyang announced in March it was pulling out of the NNT rather than allow
two suspected nuclear sites to be opened to inspection by the International
Atomic Energy Agency. North Korea insists the facilities are military
operations and not subject to checks.

China, North Korea's closest superpower ally, was successful last month in
preventing the U.N. Security Council from inserting a threat of economic
sanctions into a resolution calling on North Korea to reconsider its
withdrawal decision.

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4. Chinese Products See Growing Sales in U.S. ........................... 40
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Forwarded by: Deming
Source: AP
Date: 5/31/93

NEW YORK -- If it's on your back, on your feet or in your child's playroom,
chances are it was made in China. That comes as a surprise to many
Americans.

During the 1980s, while American automakers and computer chip manufacturers
hemmed and hawed about the threat from Japan, China was quietly racking up
the second biggest trade surplus with the United States.

Thousands of Chinese factories are churning out a large and growing volume
of the toys, garments, footwear and inexpensive electronics sold in retail
stores ranging from Payless Shoe Source to Bloomingdales.

Nike sneakers, Mattel's Barbie Dolls and Ralph Lauren sweaters are among
China-made goods.

The reasons are clear. China has become the world's premier low-cost
producer. Its southern region has become a leading manufacturing center,
with geographic proximity to the commercial centers of Hong Kong and
Taipei.

Less clear is what's at stake for American consumers if a trade war were
to breaks out with China. That's an unlikely prospect now that President
Clinton has decided to renew Beijing's trade privileges for another year,
but still remains a possibility if relations between the two countries
deteriorate.

The lost jobs would no doubt hurt China, for which the United States is
the top export market, taking $25 billion worth of goods in 1992.

Rich Brecher, who advises companies for the Washington-based U.S.-China
Business Council, estimates that canceling China's most-favored-nation
status and incumbent low tariffs would cost American consumers $13 billion
to $16 billion annually, with duties on Chinese-made goods rising from the
6 percent range up to as much as 50 percent.

That would almost certainly prompt U.S. companies that manufacture in China
or buy Chinese goods to go elsewhere.

"There's nothing unique about China's supply of these goods," said Randall
Stross, a professor of business at San Jose State University. "Whether they
could be produced at equally low cost would remain to be seen."

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5. Disney Sells Mickey Mouse Comics in China after 4-Year Absence ....... 27
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Forwarded by: Wenfeng
Source: AP
Date: 6/1/93

Beijing -- Mickey Mouse comic books went on sale all over the country
today, marking the cartoon rodent's return to China after a 4-year absence
due to copyright infringements.

The monthly comic book, selling for about 35 cents, is the first of a
series of publications that the Disney Co. (NYSE:DIS) unit, The Walt Disney
Company (HK) Ltd., is producing with Chinese partners, the company
announced.

Coming soon: Disney shoes, clothes, stationery, schoolbags and other items.
Company officials said Disney is bringing Mickey back to China because
Beijing agreed early last year to strengthen protection of intellectual
property rights.

Disney pulled out of China in 1989 because it was losing millions of
dollars to copyright infringements.

Disney's "The Mickey and Donald Show" was one of China's most popular
television shows, drawing hundreds of millions of viewers every Sunday
night. But it also led to unauthorized likenesses of Disney characters on
everything from candy wrappers to children's clothing to amusement park
rides.

Company officials said Tuesday that Disney is negotiating to bring "The
Mickey and Donald Show" back to Chinese television in October, and is
planning to bring the "Disney on Ice" figure skating show to China later
this year.

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6. June 2, 1989: Troops Repelled from Advance to TianAnMen;
                 Hou Dejian et al Starts Hunger Strike .................. 97
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Source: Compiled by Zuofeng Li from Reuters, the Chicago Tribune, Gannet
        News Service, and the Los Angeles Times, June 2, 1989

BEIJING - Thousands of unarmed Chinese troops made a lightning push toward
Tiananmen Square in the early hours of Saturday but residents barred their
way in dozens of spots and sent them retreating in disarray, witnesses said.

The troops approached from four directions but got no nearer than some 200
yards from the rag-tag tent city set up by pro-democracy student
demonstrators three weeks ago.

In scene after scene, passionate Beijing residents abused, berated and even
assaulted the hapless troops, interrogating individuals and heaping shame on
busloads of soldiers.

"We came here to restore order, we were obeying orders. People of Beijing do
not understand us," one soldier pleaded to a crowd east of Tiananmen.  "We
do understand you. We do not need you here," answered a young woman
crouching nearby.

Most of the soldiers did not appear to be armed but angry citizens produced
several guns, bayonets and truncheons they said had been taken from assorted
support vehicles they had also stopped.

On Friday, Taiwan singer Hou Dejian, wearing a T-shirt covered with
supporters' signatures, was joined by three intellectuals in a fast in the
middle of Tiananmen Square to drum up support for democracy.

"The students have done everything they could but now they are getting tired
and they need our help," the 36-year-old pop star told reporters.

"We don't seek death but real life," said Zhou Tuo, an official at a
computer company and one of the three other hunger strikers.

Hou will fast for two days and the others will not eat for three days.
Others are expected to replace them on strike afterward.

In a hint that the authorities are on the verge of removing the pro-
democracy demonstrators, Beijing Mayor Chen Xitong told a group of children
Thursday: "I think that you will soon be able to pay tribute to the
revolutionary martyrs at the Monument to the People's Heroes."

More pro-government rallies were held in Beijing suburbs Friday and
television showed footage of the events, saying they had drawn huge crowds,
but the scenes showed a stadium with many empty seats. Other government
rallies have drawn relatively small crowds in the past.

The official Communist Party People's Daily newspaper reported that
plainclothes martial-law troops have moved into 10 Beijing transportation
and communication hubs - a move that puts the government in position to shut
down this city of 10 million at any time.

The newspaper also sent another signal that the power struggle between this
nation's moderates and its hard-line communist conservatives is being won by
the hard-liners.

In the story about the 200,000 troops surrounding the capital, the newspaper
omitted the name of Communist Party Chairman Zhao Ziyang from its list of
political leaders - indicating that Zhao, a poltical moderate, may have lost
his battle for power with conservative Premier Li Peng and China's top
leader, Deng Xiaoping.

As the power struggle continued, thousands of Beijing children turned out to
celebrate Children's Day - an event that normally would have found tens of
thousands of them and their parents in Tiananmen Square.

"Little friends, you don't understand this, but there has appeared a gray
wolf in China and we are here to kill it," said an announcement broadcast
over the students' makeshift public address system. The "gray wolf," was an
apparent reference to Peng, who the students want to see purged.

Last night, tensions in downtown Beijing were high. A crowd of students
gathered outside the gate of the Beijing municipal police headquarters near
the south end of the square. Another crowd assembled outside the gate of
Zhongnanhai.

All but a few of the students outside Zhongnanhai dispersed around midnight.
But about 500 students and a few other people, incensed by an alleged police
beating of a student, spent the entire night in angry protest outside the
police headquarters.

Despite the tenseness of the confrontation, both sides showed great
restraint, as has been typical of virtually all such confrontations between
students and security forces since martial law was imposed May 20.

"Down with dictatorship! Long live democracy!" shouted the students, who
despite their obvious anger maintained order throughout the night.

"These students aren't in turmoil," said a middle-aged woman who joined the
crowd. "Our government is in turmoil. The police are in turmoil. They're
arresting people as they please. Do we have laws or don't we? The officers
must obey the law. The (officer who allegedly beat the student) should be
punished severely according to the law."

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