China will continue to advance reforms, open wider to the outside world, keep the government strictly in line, and make greater efforts to develop the government itself this year, Premier Zhu Rongji said today in his government work report.

Meanwhile, the premier said, China will promote the great cause of peaceful reunification of the motherland, score success in its diplomatic work, and strive to greet the New Century with outstanding achievements.

The Report on the Work of the Government, delivered at the 3rd session of the Ninth National People's Congress (NPC) which opened in Beijing this morning, consists of 10 parts. One-third of the 16,000-word report deals with adhering to the policy of expanding domestic demand, working energetically to promote strategic restructuring of the economy, and continuing to advance reforms and bringing about comprehensive improvement in management. Last year, China's quality of national economic growth improved, its science, technology, education and other social undertakings developed in an all-round way, and major progress was made in reforming state-owned enterprises and turning around loss-making operations, Zhu said.

He said this year China will continue to follow a proactive fiscal policy. Long-term treasury bonds worth 100 billion yuan will be issued and the resulting funds will be pumped mainly into infrastructure development, science, technology and education facilities, environmental improvement, and ecological conservation projects and technological upgrading in enterprises, with more investment directed to the central and western regions of the country.

Zhu said the top priority for this year's government work is to turn around most of the large and medium-sized state-owned enterprises operating at a loss and initially establish a modern corporate system in most key large and medium-sized state-owned enterprises, Zhu said.

"The objectives set by the central authorities for reforming state-owned enterprises and turning around loss-making operations within three years are attainable," the premier stressed. On the strategy of revitalizing China through science, technology and education, Zhu said great efforts should be made to develop and spread the use of high and new technology that can play a crucial role in upgrading the traditional industries and can be widely applied.

On education, he said all types of schools at various levels should work to improve the overall quality of their students, strengthen their moral education, help them develop practical abilities and a spirit of innovation, and effectively reduce homework load for primary and secondary school students to ensure that they improve in terms of their moral, intellectual and fitness level as well as in their appreciation of aesthetics. And goals in the effort to make nine-year compulsory education basically universal in the country and to eliminate illiteracy among young and middle-aged people should be attained on schedule. The process of China's entry into the World Trade Organization (WTO) has been accelerated, Zhu said. China should seize new opportunities, meet new challenges and take more effective measures to promote the expansion of foreign trade and utilize more foreign funds this year.

The establishment and development of a social security system has an overall impact on reform, development and stability, the premier said. "We need to continue implementing and improving the system of "three guarantees--guarantee of basic cost of living allowances for workers laid off from state-owned enterprises, guarantee of unemployment insurance benefits and guarantee of subsistence allowances for urban residents. On this basis, we must work to create conditions necessary for the transition to a sound social security system."

Zhu stressed the importance of safeguarding social stability and state security, saying that effective measures must be taken to crack down on violations of the law and all types of crimes. Efforts must also be made to properly deal with religious work and affairs concerning ethnic minorities, and strengthen national defense and the building of the army.

The premier called for keeping the government strictly in line and making greater efforts to develop the government itself. He said greater efforts should be made to fight corruption and build a clean and honest government, practice strict economy and combat extravagance and waste, further transform the functions of the government and carry forward reform of government institutions. Government at all levels must subject themselves to the supervision of the people's congresses at the corresponding levels and their standing committees, he added.

The premier reiterated the government's stance on the Taiwan issue, saying that "we will continue to adhere to the principle of 'one country, two systems'."

The return of Hong Kong and Macao has made the task of resolving the Taiwan issue and realizing the complete reunification of the motherland all the more outstanding as a sacred mission for the people of all ethnic groups in China, including the compatriots in Taiwan and overseas Chinese, he said. "The Chinese people are determined and absolutely able to bring the Taiwan question to an early settlement and realize the great cause of reunification of the motherland."

Zhu reviewed China's diplomatic work in 1999 and analyzed the international situation, pointing out that China will unswervingly take the strengthening of unity and cooperation with other developing countries as a basic principle underlying China's foreign policy.

He said the objective for the growth rate of the gross domestic product (GDP) was attained; there were structural adjustments in the economy; and economic performance improved noticeably. Total profits from state-owned enterprises and enterprises with controlling share held by the state reached 96.7 billion yuan, a rise of 77.7 percent over the previous year, a record high for the past five years, the premier said.

The per-capita disposable income of urban residents rose by 9.3 percent over the previous year in real terms after adjusting for price decreases, he noted. The per-capita net income of rural dwellers rose by 3.8 percent in real terms, and the population below the poverty line decreased by 8 million.

Last year, China celebrated the 50th anniversary of the founding of New China and smoothly secured the return of Macao to the motherland, Zhu said. China also resolutely opposed the U.S.- led NATO bombing of Chinese embassy in the Federal Republic of Yugoslavia, dealt a powerful blow to the arrogance of the Taiwan separatists represented by Lee Teng-hui, and took decisive measures against the Falun Gong cult.

Meanwhile, Party and government leaders at or above county level were educated about the importance of theoretical study, political awareness and honest conduct, Zhu said, adding "This notably improved their ideological standards and political awareness and ensured smooth progress for reform, opening up and the socialist modernization drive."

While recognizing the positive factors in economic growth, Zhu also reminded people of the difficulties and problems in China's development path, which include inadequate domestic demand, unemployment pressure, slow growth in farmers' income, lax management in many fields and organizations, bureaucracy, formalism, falsification, and certain types of corruption. "We must continue to take effective measures to solve these problems," the premier said.