During his recent inspection tour to northwest China's Gansu and Qinghai provinces as well as Ningxia Hui Autonomous Region, premier Zhu Rongji called for an immediate implementation of the government's plan to develop the economy in its western areas.

Zhu's inspection tour, from October 21 to 30, followed his similar tours in Shaanxi, Yunnan and Sichuan earlier in the year. He told provincial officials that Deng Xiaoping considered the development of China's western areas an essential part of the modernization process.

Zhu elaborated on Deng Xiaoping's blueprint for economic reform which first saw several of China's coastal cities become Special Economic Zones. Deng also called for the development of China's central and western areas to follow the economic prosperity of Special Economic Zones such as Shenzhen.

Zhu added that President Jiang Zemin was also firmly committed to the development of China's western areas, stressing repeatedly that "high priority" must be given to their development.

During his inspection tour, Zhu visited Dingxi, one of the poorest counties in Gansu Province, afforestation projects in Lanzhou and Xining, and poverty relief irrigation projects in Ningxia. Zhu also visited poverty-stricken households in these areas, expressing concern for their living conditions.

The development of China's western areas is by no means an easy project and one that needs to proceed step by step, the premier said. He added that while developing the infrastructure of these areas is a priority, protecting the environment is also very important.

Zhu also emphasized that an accelerated development of these regions requires increased investment into basic facilities such as highways, railways, airports, natural gas pipelines, power grids and telecommunications networks.

A transportation network should be set up linking the western areas with the central, eastern, southwest and northwest areas, utilizing local water resources and building water control projects.

Protecting the environment is also a priority. Zhu said that soil erosion in the western part of China could result in accumulating sediments in Yangtze River and Yellow River causing severe flooding along the middle and lower reaches of these two rivers.

Zhu listed science, technology and education as essential to the development of these areas. He added that the development of these areas will be a huge long-term and arduous project requiring careful planning.

The premier also inspected some State-owned enterprises during his inspection tour. He pointed out that the CPC Central Committee Decision adopted at the fourth plenum of 15th CPC Central Committee has set policies and measures concerning the development and reform of State-owned enterprises (SOE).

The premier emphasized four points in reforming northwest China 's SOEs: (1).improving enterprise management systems; (2).debt-to- equity swaps for enterprises in need, and increasing investment to upgrade technology and finance enterprises;(3) building a social security system; (4) Stepping up the restructuring process for the enterprises.

Outdated production technologies should be discarded. Some enterprises should be closed down including deficit-ridden ones, the premier said.

"The central government's target of helping most State-owned enterprises out of difficulties is definitely within reach, as long as all parties concerned could make concerted efforts and fully implement the guidelines set out at the fourth plenum of the 15th CPC Central Committee," the premier stressed.

Senior government officials accompanying the premier on his inspection tour included Sheng Huaren, Zhou Yongkang, Dai Xianglong, Hu Fuguo, Duan Yingbi, Ma Kai, Li Rongrong and Lou Jiwei.