Jiang Underlines Agriculture, West Development, SOE Reform

Chinese President Jiang Zemin Monday stressed the importance of pushing ahead strategic restructuring in agriculture, implementing an ambitious program to develop the western areas, and meeting the target of reforming the state-owned enterprises (SOEs).

Speaking at plenary meetings of two delegations to the on-going Third Session of the Ninth National People's Congress (NPC), Jiang said the strategic restructuring in agriculture is a central task of agricultural development in the new stage; a comprehensive plan must be mapped out to promote development of the western region; concerted efforts must be made to achieve the three-year goal of lifting most loss-making SOEs out of difficulties by the end of this year.

Meeting deputies from northeastern Jilin Province, the president said bumper harvests during the past five years and sufficient grain supplies prove that China has remarkably boosted its comprehensive agricultural production capacity and enabled the people to have enough food and clothing.

This is "a marvelous achievement" the Chinese people have dreamed of for hundreds of years, he said.

Jiang said that the problems that came along with the bumper harvests, including difficulties for farmers to sell grain, declining prices of farm produces, and a slow rise in farmers' income, are the ones occurring in the country's development process and on the way towards a well-off nation.

He warned against tendencies to ignore agriculture following successive grain harvests and stressed the importance of strengthening the status of agriculture as the economic base.

It must be clear that the harvests and sufficient grain supplies do not necessarily mean that the agricultural base has been consolidated, he said.

There have been no fundamental changes in farming conditions in quite a few localities, he said, adding that the country's agricultural sector has not freed itself from dependence on the nature. Once there are severe calamities, serious problems may arise. Agriculture will remain a hard issue for China, at least for dozens of years to come, Jiang said. He pointed out that the country should strategically readjust its agricultural structure as China's agriculture enters a new period of development.

Only by improving and optimizing the structure of agriculture can China further enhance the productivity, competitiveness and efficiency of its farming sector, and increase the farmers' income, Jiang said. This is an arduous task which calls for redoubled efforts, he added.

Top priority must be given to agriculture in developing the national economy, Jiang noted.

To strengthen agriculture, the president said, efforts must be made unremittingly to accelerate construction of agricultural infrastructures with focus on irrigation networks and ecological improvement with priority on afforestation.

Efforts must also be made to protect arable land and the farmers' enthusiasm and promote the advancement of agricultural science and technology.

Speaking to deputies from northwestern Gansu Province, Jiang said the government-initiated strategy to develop the vast western areas is of great importance to China.

The strategy will effect a coordinated economic growth in different regions for common development and prosperity; help implementing the strategic readjustment of the whole economic structure for a sustained, speedy and healthy growth of national economy; increase the unity of all ethnic groups and safeguard the stability and enhance defense capabilities in frontier areas, the president said.

As the large-scale development of the west is a gigantic project, he noted, efforts should be made to comply with the new situation in the growth of socialist market economy, objective laws should be followed, and overall planning be implemented steadily and stage by stage, he added. The central government will allocate proper input while urging developed eastern areas to aid and assist the west through various forms.

What's more important, he noted, is that the west should deepen reforms, open itself wider and adopt new mechanism and methods to attract qualified professionals, funds and technology from elsewhere in China and overseas.

Meanwhile, the western areas should give full scope to its own advantages, strengthen the infrastructure construction, develop science, technology and education, and step up environmental protection, he said.

In his speech, Jiang also spell out his views on the retooling of state-owned enterprises which, he stressed, is the core of the entire economic restructuring and represents the most vital job for the country in 2000, the last year for the three-year government program to bring the majority of loss-making firms out of difficulties.

President Jiang listed the major tasks for the state sector as follow:

-- To accelerate the establishment of modern corporate system and transform the managerial mechanism of these firms;

-- To make strategic readjustment of the layout of the state economy and regroup state-owned enterprises;

-- To advance technological and innovation progress of state-owned enterprises, and;

-- To strengthen the building of leadership for state enterprises.

Moreover, President Jiang called for appropriately handling the relations the retooling and development of enterprises as well as relations between reform, development and stability in general. Moreover, he asked old mining and defense departments to pay special attention to the life of their workers, so as to maintain social stability.

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