China

DAILYAREBORT

Vol I No O10 16 January 1984

PRC INTERNATIONAL AFFAIRS

GiNERAL Laternational Bidding on PRC Oil Projects Begins Al Oceanography Head Leaves tor Antarctic Venture A l SHLJLE JINGJL DAOBAD Views World Economy [2 Jan] Al

UNITED STATES

Continued Reportage on Premier Zhao's U.S. Visit B

Newsletter on Washington Activities [RENMIN RIBAO 14 Jan]

Zhao Addresses San Franscisco Banquet

Meets Consulate Officials, Students

Comments on China's Reunification

Toure Berkeley Campus

Feted by California's Governor

Meets Two U.S. Executives

Receives Key to San Francisco

Zhao on USSR, Kampuchea

Comments on Sino-U.S. Trade

Newsletter Reviews California Visit [RENMIN RIBAO 15 Jan]

thao Arrives in New York

Mayor Koch Hosts Luncheon

Zhao Meets ATT Chairman

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NORTHEAST ASIA

Further on DPRK Tripartite Talks Proposal

RENMIN RIBAO Commentator [13 Jan]

DPRK Embassy News Conference

Beijing Radio Commentary

International Committee's Support Japan's Nakasone Cited on PRC, Korea Issue Chinese in Japan Praise Deng Yingchao Speech

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SOUTHEAST ASIA & PACIFIC

SRV Continues ‘Armed Provocations' Along Border

Beijing Commentary Views SRV Cease-Fire Proposal

Sihanouk Scores Heng Samrin Regime Celebration

Sihanouk Departs DPRK for PRC 14 January Beijing Arrival

Beijing Article on SRV-Controlled Kampuchea

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SOUTH ASIA

Further on Visit of Pakistan's Industry Minister é | Meets Li Peng l

XINHUA Interview F USSR Use of Napalm, Gas in Afghanistan Reported Pj 1986 UN Afghan Refugee Relief Pact Signed 7, - Sri Lanka President, PRC Envoy at Factory Ceremony PF 2

WESTERN EUROPE

Coverage of Visit of UK Air Force Chief of Staff G

Zhang Tingfa's Fete G Meets Yang Dezhi G Tours Xian G

Leaves Zhejiang for Shanghai G Italian Merchant Marine Minister Visits G Meets Li Qing G Meets Li Peng G

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EASTERN EUROPE

Romanian Trade Delegation Arrives for Talks H 1 Chen Muhua Fetes Group H 1 Song Ping Meets GDR Foreign Trade Delegation H 1 PRC NALLONAL AFFAIRS BAN YUE TAN Notes ‘Anxiety’ on Party Rectification K 1 [No 23, 10 Dec] JLEFANCJUN BAO on Rectification, Correcting Errors K 2 Deng Liqun on Propaganda Workers’ ‘Clear Head" K 3 [GUANGMING RIBAO 23 Dec] Commentator on Rural Science, Technology K 6 [RENMIN RIBAO 10 Jan] Commentator Stresses Economic Results Over Speed kK 8 XINHUA on 1983 Industrial Output Records . = Statistics of Major Industrial Goods Output K 10 RENMIN RIBAO on Positive Education of Peasants K ll [13 Jan}

Deng Yingchao at KMT Congress Anniversary Event iN Fang Yi Addresses Popular Science Congress x Leaders View Export Instruments Exhibit K 13 Yang Shangkun, Yu Qiuli Address PLA Award Meeting K PLA Air Force Solves More Than 200 Practical Problems ~

PRC MEDIA ON TAIWAN AFFAIRS

Deng Yingchao Urges Kuomintang To Work for Unity Ui

Ll. 16 Jan 84 PRC INTERNATIONA I AFFAIRS Al GENERAL

INTERNATIONAL BIDDING ON PRC OIL PROJECTS BEC INS

OW1S41511 Betting XINHUA in English 1445 GMT 14 Jan 8&4

[Text] Beijing, January 14, (XistiVA) -- Bidding proposals opened here today for two oil projects worth 263.2 million U.s. dollars, according to the China National Technical Import Corporation (CNTIC). The projects are the deveiopment of the ddep oil strata at the Gaotaizi zone of China's largest oilfield, Daqing in northeast China, and the Wenliu project at the developing Zhongyuan oilfield in central China. The World Bank has provided China with the above-mentioned sum ‘n hard loans. Two agreements on the loans, which were signed in the first half of 1963, came into effect last September.

Many of the 80 tenders from the United States, Japan, the United Kingdom, Canada, Singa- pore, France, the Federal Republic of Germany and Hong Kong represent world-renowned petroleum equipment manufacturers, such as Dresser Industries Inc. and Cooper’ Inc.

in the United States.

CNTIC said that China would use the money from the World Bank to buy four mobile drilling rigs, bop stacks, drilling equipment, motor vehicles, inspection tools, workovers, submersible oil pumps, formation testers and complete sets of equipment for two seismic teams. It is expected that the winning bids will be announced in about one month.

OCEANOGRAPHY HEAD LEAVES FOR ANTARCTIC VENTURE

OW140822 Beijing XINHUA in English 0744 GMT 14 Jan 84

[Text] Beijing, January 14 (XINHUA) -- Luo Yuru, director of the State Bureau of Oceanography, left here today together with three experts to join an Argentine scientific expedition to Antarctica at the invitation of the Argentine Government. An official of the Chinese Embassy in Buenos Aires will also join the expedition, which is to leave Argentina by ship on January 19 for aone-month summer survey in Antarctica.

Luo Yuru, who is also vice-chairman of the Chinese National Committee for Antarctic Research, will have talks with the Argentine Government on the two countries’ future cooperation in expeditions to Antarctica. He and his party will also visit some Argentine institutions of Antarctic research. Since 1982 sixteen Chinese scientists have joined Argentine expeditions to Antarctica, including Director Luo and his party. So tar 33 Chinese scientists have gone to Antarctica at the invitation of the Governments of Australia, New Zealand, Argentina, Chile and Japan. Eleven are there at present, including a woman.

SHLJLE JINGJI DAOBAO VIEWS WORLD ECONOMY

4WK130859 Shanghai SHIJIE JINGJI DAOBAO in Chinese 2 Jan 84 p 3

‘Article by Huan Xiang, "Well-known Specialist on International Questions and Adviser to This Paper": "Recovery of World Economy Is Slow, Weak, and Unstable")

[Text] The year 1983 saw a turn for the better in the world's economy: The most serious (longest in time and greatest in influence) economic crisis in the capitalist world since the end of World War II has come to an end, and the Western economy began to recover in spring 1983.

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towever, leve lopments in various countries were uneven, with the »-5. recovery being the quickest, followed by that in Japan and then by that in Western Europe. Since Andropey started economic reforms, the Soviet Union has in the main checked the declining tendency of the growth rate of its national economy. Industry and agriculture in East European countries have also grown to a certain extent. In the Third World, most Asian countries have raised their economic growth rates over the past year and have brought down inflation rates; but Latin American countries passed the year 1983 “under the most depressed condition in the last 50 years." African countries also generally met with serious economic difficulties. In addition, most Third World countries have been racked with heavy debts.

As we enter 1984, the world economy is still confronted with many difficulties and problems.

lm the Western world, although cyclinal crisis factors have abated, noncyclical and structural v.actors still exist and will continue to hold back further recovery. It will etill take the Soviet Union a long time to effect its economic reform and it will hav’ to adept many resolute steps to achieve it. East European countries are faced wit: many problems that are not easy to solve. So, the Soviet and East European economies can hardly be expected to achieve major growth in 1983 [year as published]. Most Third World countries will continue to be harmed by the Western countries’ practice of shifting the economic crisis onto others and their policy of building

up tariffs and trade barriers, so it will remain difficult for them to shake off economic difficulties.

All this shows that the recovery of the world's economy in 1984 will be slow, weak, unstable, and uneven.

INTINUI GE ON PREMIER ZHAO'S U.S. VISI'

Newsletter on Washington Activities

HELSOBOG Me MIN RIBAO in Chinese 14 Jan 84 p 56

“Newsletter ft: America” by Yuan Xianlu and Zhang Yunwen: “Broad Prospects for Devel- 1 - tions’

lext Premier Zhao Ziyang completed his activities in the American capital at 1000

the mornin, f | inuary, and ntinued his otticial visit to the United States by.

leaving Washingt for San Francisco.

Premier Zhao had a very busy schedule in the American capital. On 11 January, he went t ngress ¢ neet the leaders of the House and Senate; in his hote! he met Secretary

etense Weinberger, Commerce Secretary Baldrige, and presidential science adviser Keyworth. He was also interviewed by tive major U.S. television stations, met the editor in chiet of the WASHINGTON POST, held a grand tarewell banquet, and also attended a

icheon elven by the National Council for U.S.-China Trade and a dinner jointly given bv the China Society, Chinese-Americans of various circles, and the U.S.-China People's ‘riendship Association. Onthe morning of the 12th, apart from attending a Cabinet breakfast in the White House, Premier Zhao also signed two agreements and said farewel| to President Reagan. In addition he also specially set aside time for an activity that had been cancelled by his hosts due to heavy snow -- a visit to the Sidwell Friends School. Premier “hao had very broad-ranging contacts with Americans inside and outside government during a period of 48 hours.

The talks between Premier Zhao and President Reagan showed that China and the United States indeed have important points in common and also important differences. It was ‘bvious that the differences between the two countries over the Taiwan issue were not resolved in these talks. A number of Americans concerned over Sino-U.S. relations told these correspondents that due to historical reasons and current U.S. political realities, it is still umrealistic to demand that the leaders of the two ccuntries immediately clear way this obstacle affecting the steady development of Sino-U.S. relations. However, it is necessary to see another aspect of the matter, that is, the tide of development of these relations is irresistible. A U.S. Government official held that it was extremely significant that the leaders of the two countries held friendly and frank talks on the icute and sensitive Taiwan issue, with each stating his position and understanding the viewpoint of the other, and directly exchanging views in this way. A person involved in U.S.-China friendship activities said that by clearly expounding the Chinese Government's position on the Taiwan issue to the American public through his talks with the media, such as the five television stations and the WASHINGTON POST, Premier Zhao would effec- tively stimulate the efforts of people inside and outside the U.S. Government to solve this difference between China and the United States.

Before Premier Zhao left Washington, China and the United States signed an agreement on industrial technological cooperation and an agreement on scientific and technological cooperation. These two agreements symbolize "the new fruits" in Sino-U.S. ties "that need to be preserved and the new fields to be opened up," and show that “the prospects for Sime-.S. relations grow ever broader." The splendor of the lunch given by the National Council for U.S.-China Trade on 11 January expressed the tremendous interest of \(merican businessmen in developing economic cooperation with China.

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»peaking on the dramatic interest in the number of member companies of this organization

in recent years, council chairman Surrey said humorously: "I want to tell you, Premier chao, we have been unable to find an effective way of controlling the population of this council.” At the lunch, Premier Zhao expounded on China's external economic policy,

gave some explanations in view of certain misunderstandings, and also spoke frankly on a number of Chinese shortcomings and problems on this issue. Many American businessmen said that the Chinese leader's frank and sincere statements and truth-seeking approach had further strengthened their interest and confidence in carrying out economic exchanges with China.

Premier Zhao said in one speech: "Since I came to America, I have personally seen that the American people have particularly friendly feelings toward the Chinese people." During his visit to Washington, one thing was unforgettable. When Premier Zhao gave

a return party on 1l January, despite bitter cold and deep snow on the roads, which had not yet been cleared, and resulting in poor traffic conditions, the guests were unprece- dentedly enthusiastic. Quite a number of them had come by plane from elsewhere especially to attend the party. The big banquet room of the hotel was a sea of people, and at the end people had to wait more than half an hour to collect their hats and coats. An atmosphere of warm friendship pervaded the party. Premier Zhao said to the guests that this was the best-attended party given by China since the establishment of diplomat- ic relations between the two countries, and this showed that the friends of China were ever increasing in number. At the dinner given by the third group of the U.S.-China People's Friendship Association, Mrs Troy, chairman of the association, stressed in her warm and friendly speech the importance of developing friendship between the American and Chinese peoples. The warm welcome and affection shown to Premier Zhao when he visited the Sidwell Friends School vividly proves that Sino-U.S. friendship is already deep-rooted in the hearts of the next American generation. Viewing the future, the friendship between the peoples of the two countries will develop further. This is the inevitable trend of history.

Zhao Addresses San Francisco Banquet OW131415 Beijing XINHUA Domestic Service in Chinese 0932 GMT 13 Jan 84

[Text] San Francisco, 12 Jan (XINHUA) -- Premier Zhao Ziyang said here today that

China and the United States, being two big powers, bear especially heavy responsibilities for the maintenance of stability and peace in the Pacific region. He said: "The

Pacific region, like others in the world, is fraught with crises and latent troubles.”

Premier Zhao made this remark at the dinner given in his honor in San Francisco by the World Affairs Council, the Commonwealth Club and the San Francisco-Shanghai Friendship City Committee. About 1,000 people attended the dinner.

Premier Zhao said: Superpower rivalry in the Pacific region is intensifying. "The sovereignty and territorial integrity of some countries have been flagrantly infringed and trampled upon. Some countries are still kept in a state of artificial division.

A growing number of warships are plying the waters of the Pacific Ocean, and more and more missiles have been deployed on its periphery.”

He pointed out: "The dark clouds of war are still hovering over us. The maintenance of stability and peace in the Pacific region is an urgent task. China and the United States, being the big powers on the opposite sides of the ocean, undoubtedly bear especially heavy responsibilities."

Ll. 16 Jan 84 & 3 PRC INTERNATIONAL AFFAIRS UNITED STATES

Premier Zhao emphatically pointed out. "China's stand is that the Pacific Ocean should become a truly great and pacific ocean. The various countries in the Pacific region should strictly observe the principles of mutual respect for each others’ territorial integrity and sovereignty, mutual nonaggression, noninterference in each other's internal attairs, equality and mutual benefit, and peaceful coexistence. They should settle their disputes by peacetul means, without resorting to force or threats of torce. The arms race, and particularly the nuclear arms race, must be halted. Foreign military bases set up in other countries must be dismantled and foreign military forces stationed in other countries withdraw. Such acts as forcibly occupying the territories of other countries, infringing upon their sovereignty, and interfering in their internal affairs must be stopped. This is the only way to dispel the dark clouds over the Pacific Ocean, and avert crises and hidden troubles, so that the people in various countries may live in peace, engage in equitable and mutually beneficial cooperation, and build a happy life."

Premier Zhao said: The American people also ardently cherish peace. They, too, hope that their peaceful life and achievements in construction will not be destroyed by war. He hoped that the American people will joint hands with the people of China and that the people in the Pacific region will join hands with the people of various countries in

the world in the common endeavor to preserve peace in the Pacific region and in the world at large.

Meets Consulate Officials, Students

OW140809 Beijing XINHUA Domestic Service in Chinese 0901 GMT 13 Jan 84

(Text | San Francisco, 12 Jan (XINHUA) -- This evening, Premier Zhao Ziyang went to the Chinese Consulate General in San Francisco where he met with staff members, workers, and representatives of other Chinese Government organizations in San Francisco as well as representatives of Chinese students.

Premier Zhao encouraged them to work and study hard. He also informed them about the excellent situation on all fronts in China. He said that in recent years, China has rapidly developed its economy, and that by the year 2,000, China will achieve even greater development. The situation in China is stable, its policy is on the right track, and the country is hopeful.

Those present were greatly encouraged by Premier Zhao's intimat2 and lively talk. Comments on China's Reunification OW131844 Beijing XINHUA Domestic Service in Chinese 0817 GMT 13 Jan 84

{Text | San Francisco, 12 Jam (XINHUA) -- At a San Francisco meeting this afternoon with representatives of Overseas Chinese and Chinese nationals on the West Coast of the United States, Premier Zhao Ziyang pointed out that China's reunification and revitali- zation is the common aspiration of the whole Chinese nation, including the people of Taiwan and those living abroad. He called on Chinesenationals residing in the United States to make still greater contributions to the reunification of the motherland.

Shortly after Premier Zhao's arrival in San Francisco after concluding his visit in Washington, over 300 representatives of West Coast Chinese communities heard his speech on China's reunification at the Fairmort Hotel where Premier Zhao is staying. After mentioning the hardship the Overseas Chinese in the United States had endured in crossing the vast ocean more than a century ago as well as their tremendous contribution» :o the development and construction of the United States, Zhao Ziyang said that he want: to take the opportunity to discuss China's reunification, an issue the people in San Francisco and Los Angeles and from Taiwan and Hong Kong are highly interested in.

lL. 16 Jan 84 B 4 PRC INTERNATIONAL AFFAIRS UNITED STATES

Zhao <lyvang said: "Por many years, people have always taken note of the differences between the Kuomintang and the Communist Party; as a matter of fact, there are also common points between the two parties. Is it not an important point common to the two sides that they both believe there is only one China? Moreover, China's peaceful reunification has come to be the common language for both the KMT and the Communist

Party. We truly and wholeheartedly hope our motherland can be peacefully reunified.”

"To achieve a peaceful reunification, there must be an appropriate way to do so. This

is why we have proposed that talks [hui tan 2585 6151] be held between the KMT and the Communist Party for a third round of cooperation so that they can join in a common ettort to accomplish the great cause of national reunification, thus making contributions to the Chinese nation. The starting point of our policy is to respect history and reality, and take full account of the wishes of the people of various nationalities in faiwan and the interests of the Taiwan authorities. It will not be a case of the main- la d swallowing up Taiwan, nor vice versa."

He said: “for this reason, we propose that, after our motherland has been reunified, Taiwan and the mainland shall both be part of the People's Republic of China and Taiwan can become a special administrative region [te bie xing zheng qu 3676 0446 5887 2398 0575]. This means that Taiwan shall be fully independent to manage its own affairs [you zi ji de chong fen zi zhu quan 2589 5261 1569 4104 0339 0433 5261 0031 2938] and enjoy some exclusive powers that other provinces, municipalities and autonomous regions do

not enjoy. laiwan can practice a system different from that on the mainland. It can have an independent judiciary, and there is no need to ask Beijing for final judgment Taiwan can aiso keep its own forces. The mainland will send no representatives to laiwan, neither troops nor administrative personnel. The party, government and military apparatus in lfaiwan will all be under the control of Taiwan itself. After reunification, there will be enduring cooperation, long-term coexistence, and mitual supervision between the CPC and the KMT. Members of the Taiwan authorities and public figures of various circles are also welcome to hold leading posts in political organizations at the national level and discuss state affairs together with us.”

Zhao Zivyang said: "Economically, Taiwan, as a special administrative region, may have its own independent financial budget. The mainland will not collect any tax from or impose any levies of money on Taiwan; Taiwan may also maintain and develop its trade relations as well as exchanges and cooperation with foreign countries in the economic, technological and cultural fields. The combined economies and technologies of Taiwan and the mainland, plus the rich resources and huge market on the mainland, will enhance the prosperity on both sides of the strait, and the living standards of the people in Taiwan will improve even more rapidly."

Zhao Zivang pointed out: "In short, Taiwan will have nothing to lose after reunifica- tion. On the contrary, it will gain honor and benefits as part of the great motherland."

Zhao Zivang said: “These propositions of ours are permeated with the spirit of re- conciliation, and they are sensible and practical. What is your opinion? If you have any more suggestions, please feel free to state them. We are willing to hear them."

He continued: "For a solution to the Taiwan issue, we place our hopes on the Taiwan authorities and the people in Taiwan, and also hope that Chinese nationals in all parts of the world will help promote the cuase of reunification. Chinese nationals in the tnited States are in an especially favorable position to do so. You have exerted valuable efforts in this regard. We also welcome vou to return to the mainland to look around and exchange opinions with us. We equally welcome those who hold views differing greatly fromours. The door of China is always open to all descendants of Huang Di."

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Regarding the domestic situation, Zhao Ziyang said: "People of all nationalities and ill strata at home are united, their life is stable and the political situation is steady. Law and democracy have been further strengthened. The growth of industrial and agricultural production is faster than expected. Internationally, thanks to our independent foreign policy, our international status has never been higher. We can say that the Chinese people have never been prouder and more elated as they are today. China certainly can be revitalized. The Divine Land [poetic name for China] wil] certainly shine with dazzling splendor in the world."

Tours Berkeley Campus OW140738 Beijing XINHUA in English 0703 GMT 14 Jan 84

[Text] San Francisco, January 13 (XINHUA) -- Chinese Premier Zhao Zivang said today he wished to see greater and more successful scholarly exchanges between the University of Calitornia, Berkeley and Chinese universities. While touring the prestigious university, Zhao thanked its chancellor and the faculty for their assistance to the Chinese scholars and students doing research or stuying here.

Premier Zhao, accompanied by Foreign Minister Wu Xueqian, Deputy Secretary General of

the State Council Chen Chu, and Chinese Ambassador Zhang Wenjin was warmly welcomed to the campus by Dr Roderic Park, chancellor; Dr Glenn Seaborg, director of the Lawrence

Hall of Science; of the university.

A gcoup of Chinese students and scholars greeted Zhao in the lobby of the Lawrence Hall. A small robot, bearing around its waist a paper strap inscribed with "Welcome Premier Zhao" in Chinese, said to the Chinese guests, “please follow me," in English.

Founded in 1868, the University of California, Berkeley, has faculty of 1,600, including ll Nobel Prize winners, and 29,800 students in all. About 25 percent of the students are Asian ethnics, half of whom are Chinese. Chancellor Park told Zhao that his university was the first to establish scholarly exchanges with China and that since 1979 about 600 Chinese students and scholars have come to study or do research in the university.

Premier Zhao said, "I understand that these exchanges have been very fruitful. I wish you even greater achievements in this area."

Zhao and his party were shown round the biology laboratory and physics laboratory of the Lawrence Hall of Science. The hall was established by the regents of the University of California in 1958 as a memorial to Earnest Orlando Lawrence, developer of the first in the world cyclotron and the university's first Nobel laureate. In the amphitmeater room of the hall, the Chinese visitors watched displays of plant genetics and biological control in agricultural production as part of the university's research work.

At the end of the one-hour tour, Dr Seaborg, the first to sponsor the university's scholarly exchanges withChina, presented some children's science toys as gifts to Premier Zhao's three grand kids, saying, "As a grandfather of two grandsons, I present these toys to the grandchildren of another grandfather." Accepting the gifts, Zhao said: "On behalf of my grandkids I express thanks to another grandfather. Probably, our children will meet each other some time in the future.”

Feted by California's Governor OW141240 Beijing XINHUA Domestic Service in Chinese 1520 GMT 14 Jan 84

[Text] San Francisco, 13 Jan (XINHUA) -- Premier Zhao Ziyang and California Governor George Deukmejian pledged here today to develop the traditional ties of friendship between the Chinese people and the people of California. They said this during a dinner given in Premier Zhao Ziyang's honor by the governor of California and the California International Hosting Commission.

[. 16 Jan 84 B 6 PRC INTERNATIONAL AFFAIRS UNITED STATES

Ceorge Deukmejian said in his toast: "The friendship between our peoples goes back many years. I would like to see it grow even stronger in the years ahead." He added: “Lt is beneficial to both our countries to keep our economic ties strong and growing."

Deukmejian also pointed out. "A strong Chinese-American friendship can be a positive and peaceful force in the pursuit of a safer world."

Premier Zhao Ziyang said in his return toast: "In reviewing the history of the develop- ment of Calitornia, people cannot but admire the American people's courageous and tena- cious "pioneering spirit," and at the same time think of indelible contributions made to the early development of California by the sweat and toil of large numbers of Chinese laborers.”

Premier Zhao said: "Today, the Chinese and American peoples are continuing their contacts under new historical circumstances. It isthe shared desire of our two peoples to develop our triendly relations in the spirit of equality and mutual benefit."

Premier Zhao also pointed out: "China and the United States have repeatedly acknowledged that the relations of our two countries should be based on such generally recognized norms governing international relations as mutual respect for sovereignty and terri- torial integrity and noninterference in internal affairs." "As long as these norms are observed in earnest, it will not be difficult to remove the differences between China and the United States on the Taiwan issue, and the development of the two countries’ rela- tions will be much smother, " he said.

The speeches by Premier Zhao and the California governor were constantly applauded

and cheered by an audience of about 600 people. Among those present were San Francisco Mayor Dianne Feinstein, local léaders from the American West, influential members of the Chinese community, and other public celebrities. During the banquet, Chinese and

American music was played by a band.

Premier Zhao will leave San Francisco on the morning of 14 January for New York, the last stop of his week-long visit to the United States.

Meets Two U.S. Executives OW140745 Beijing XINHUA in English 0715 GMT 14 Jan 84

'Text] San Francisco, January 13 (SINHUA) -- Chinese Premier Zhao Ziyang was the guest of Samuel Armacost, president of the Bank of America, at lunch here today. Premier

Thao told his host that he hoped American business could play a greater role in pro- moting economic cooperation with China.

In the afternoon, the premier met in the Fairmont Hotel with Stephen Bechtel, chairman of the Board of Directors of Bechtel Corporation, a major construction and engineering firm in the country.

Both Armacost and Bechtel indicated their willingness to develop cooperation with China. Some senior members of Premier Zhao's party were present on the two occasions.

Receives Key to San Francisco OW140753 Beijing XINHUA in English 0725 GMT 14 Jan 84

[Text] San Francisco, January 13 (XINHUA) -- Mayor Dianne Feinstein of San Francisco presented a key to the city this evening to visiting Chinese Premier Zhao Ziyang in a traditionel gesture of welcome. About 1,500 people attended the ceremonial in the San Francisco City Hall. National anthems of China and the United States were

plaved before the presentation.

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In an address welcoming Zhao to the city, Feinstein recalled San Francisco's historical links with China. She said, "I believe all of the people in San Francisco would join me in a very specific determination to work for peace and understanding and friendship between our two countries."

"We have been privileged as you know to share a very special relationship with one of your great cities, the city of Shanghai,” she told the premier. "And our dream is that as that relationship matures, as ov people here and people in Shanghai get to know each other, it can really be the harbinger of peace between our two nations,"

Atter her brief and warm remarks, she presented the key to the city to the premier on behalf of the entire San Franciscvo people.

Volecing his gratitude for the heart-warming welcome, Zhao said that the Chinese people have had many contacts with San Francisco. The establishment of Sino-American diplomatic ties five years ago turned a new page in the annals of Sino-American relations. Likewise, the establishment of San Francisco and Shanghai as twin cities was a milestone in the annals of relations between the two coastal cities. The premier won loud applause by saying, "This golden key wili make it possible for me

to open your golden gate for more exchanges between the people of our two countries."

Mayor Feinstein also declared this day as "Premier Zhao Day" of the city and county of San Francisco. Zhao presented to Mayor Feinstein a piece of needlework, "The reat Wall,” to the city of San Francisco, a gift especially made by its twin city of Shanghai. Before the presentation of the key, Premier Zhao Ziyang met Mayor Feinstein in her office in the city hall, and local civic leaders.

Zhao on USSR, Kampuchea OW141356 Beijing XINHUA Domestic Service in Chinese 0735 GMT 14 Jan 84

[Text] San Francisco. 13 Jan (XINHUA) -- Premier Zhao answered some questions concerning the international and domestic situation raised by personalities from various circles

at a dincer last night given by the World Affairs Council, the Commonwealth Club,

and the San Francisco-Shanghai Friendship City Committee.

On the question concerning Sino-Soviet relations, Premier Zhao said that "China adheres to an independent foreign policy. We are willing to improve and develop our relations with all countries, including, of course, the Soviet Union, on the basis of the five principles of peaceful coexistence. In the last 2 years we have held some dialogues [dui hua 1417 6114] with the Soviet Union. We are opposed to many policies pursued

by the Soviet Union, and this position of ours has not changed. During our dialogues with the Soviet Union, we did not make any progress in solving substantive questions [shi zhi wen ti 1395 6347 0795 7344]. Of course, the trade and economic exchanges between our two sides have increased somewhat, and they will likely increase some

more in the future. At present, there are very few contacts between high-ranking officials of the two sides; there might be some in the future. The appointment between our Foreign Minister Wu and Foreign Minister Gromyko at the United Nations was mot realized, but it has not been canceled. They still have an opportunity to meet with each other. In short, China is willing to improve its relations with the

Soviet Union, but the issues are in the main [ji ben shang 1015 2609 0006] clear, and the major problems are not on China's side."

[Beijing XINHUA in English at 2030 GMT on 13 January carries a short report on Premier Zhao's question and answer session. On Sino-Soviet relations, the XINHUA English version reads: "Asked about the development of Sino-Soviet relations, Premier Zhao said: "China pursues an independent foreign policy and is ready to establish, develop and improve relations with all the countries including the Soviet Union in the world on the basis of the five principles of peaceful co-existence.’

un 84 B 8 PRC INTERNATIONAL AFFAIRS UNITED STATES swenting on dialogue between the two countries in recent years, Zhao said that there has been no substantial progress yet in these talks and China’s position towards many

Licles of the Soviet Union remains unchanged. ‘But we have increased trade and economic relations with the Soviet Union and it is possible te increase these relations in the future," he added. ‘We are willing to improve our relations with the Soviet lon, but apparently this does not depend on China alone,’ he stated.” |

On the question concerning the control of nuclear arms, Premier Zhao said that "China is a large developing country. It is large primarily in population. A question confronting us is how to accelerate economic construction and improve the people's

livelihood. We will not, we are unwilline id it is unlikely for us to join in

the international nuclear arms race. We 4 t a genuine disarmament will be ichieved in the world. In particular, » mations with the strongest arms should take the lead in disarmament and reduce thei lear and conventional arms by a big margin. We have said that China's arms are limite... -.t it is willing to join other countries in disarmament talks if the countries with hugh arms -- here I[ am referring to the soviet Union ood the United States -- reach an agreement on a large arms reduction to

’ . ° ° " show their determination.

Om the best way to make Vietnam withdraw its troops from Kampuchea, Premier Zhao said: "You all know that Vietnam is a country that has experienc2d wars for many years, and its people are Living amid great difficulties. Since Vietr.am invaded Kampuchea, Vietna economie difficulties have worsened. We may say that its economy is in a situation of ‘ollapse. I think that the most reliable way to compel Vietnam to end its occupation t Kampuchea and settle the Kampuchean issue peacefully is to support Kampuchea’s resistance forces and further exacerbate Vietnam's difficulties, in iddition to exerting international political pressure on Vietnam and condemning its

ust invasion of Kampuchea. China earnestly hopes that the Kampuchean issue can be settled politically at an early date, but Vietnam today does not want the issue settled this way and is not prepared to withdraw its troops from Kampuchea. All the proposals put torward by Vietmam are designed to deceive the world public and to legalize its agegressicn against Kampuchea. For this reason, we do not think that the conditions ror a political settlement of the Kampuchean issue are ripe. Perhaps it will continue

be very hard to settle this issue politically in the near future.”

(The XINHUA English version renders Zhao's comments on Vietnam and Kampuchea as follows: "On a possible political solution to the issue of occupation of Kampuchea by Vietnam, Premier Zhao said conditions are not ripe at present for such a solution although Chiaa very much likes to see an early political solution of the issue. Zhao noted that Vietnam is still refusing to withdraw its troops from Kampuchea. The various proposals of Hanoi ‘are all designed to hoodwink international opinion and legalize its occupation of Kampuchea,’ he stressed. The Chinese premier pwinted out that the surest way to fteree Vietnam to pull out of Kampuchea is to support the resistance forces in Kampuchea apart from exerting political and moral pressure on

y

Vietnam." |]

On Chima’s economic role in the Asian-Pacific region, Premier Zhao pointed out:

In recent years China has greatly expanded its trade and economic relations with Asian and Pacific nations, including the United States, Japan, Australia, New Zealand, ind the ASEAN nations. It has also made a good start in economic and technological cooperation with these countries. I think that there is still great potential for trade and economic relations, technological cooperation, and cooperation in other fields between China and the Pacific nations. We still can explore various ways

and adopt various measures to expand the cooperation between us day by day.”

[. 16 Jan 84 BY PRC INTERNATIONAL AFFAIRS UNITED STATES

On China's implementation of the system of economic responsibilities at home, lremier ‘hao sald that the responsibility system is a very tmportant measure adopted by China in the course of the present economte reform, It 18 a very effective measure. China ls a soctalist country. In the past, something we did was to have ev ryone share food from the same bly pot; and some things we did offset the superiority of socialism. In the last tew years, we have achleved very good results in reforming first some grass- roots units. We vave thus very tngentously integrated the collective ownership of the means of production with the individual's enthustasm for work. Since we reformed our agriculture, we have reaped good agricultural harvests for 5 consecutive years. At present, we are trying to populartze the system in cities and in industry and commerce. Of course, industry and commerce are not exactly the same as the rural areas. We are exploring a certain responsibility system that is suitable to cities and to industry and commerce. When | was in China, | did not hear anvone say that China would reduce tue scope of the responsibility system. What I know is that we should find out how to adapt the responsibility system to various other fields.

Comments on Sino-U.S. Trade (W140730 Beljing XINHUA Domestic Service in Chinese 0243 GMT 14 Jan 84

[Text] San Francisco, 13 Jan (XINHUA) -- At a meeting this afternoon with personages from business cir-'es of the American West at the Fairmont Hotel, Premier Zhao Zivang expressed the hope that they would promote, politically as well as economically, the continued progress of Sino-U.S. relations in a direction that both sides desire.

Premier Zhao said that th western part of the United States has very close economic ties with China. All of you are influential personages from business circles in the American West, and | suppose that you are concerned about the question of Sino-l.S. economic and trade relations. The same question is also one of deep concern for the Chinese people and government. "At the invitation of the U.S. Government, T am visiting your country for the main purpose of promoting the progress of Sino-U.S. relations, including, of course, economic and trade relations."

Premier “hao said that the rate of growth in Sino-U.S. economic and trade relations the past few years may be described as very impressive. However, the scale of these re- lations is, in fact, still too small for two big countries like China and the United States. "These two things indicate that there is still great potential for the develop- ment of Sino-U.S. economic and trade relations."

He said that when speaking of Sino-U.S. economic and trade relations, we cannot ignore the American West. Because of its geograpuical location, the western part of the United States is bound to play an important role in the development of U.S. economic and trade relations with China.

He said that some U.S. economic departments have specialties that correspond precisely with the key tasks that China is undertaking under its program of modernization. This also applies to the American West. Modernization of agriculture is one of the key tasks of strategic importance in China's economic development, while the western and central western parts of the United States are noted for their well-developed agriculture.

lh Jan 54 B 10 PRC INTEANATIONAL AFFAIRS UNITED STATES

ihe « xp l ration of energy resources is another kev task of strategi: importance for our ountry, and several companies in the American West have begun to cooperate with us in this tleld. Construction of communications facilities is our third key task of stra- tegic tmportance, and a number of major communications and transportation equipment suppliers are located on the West Coast. Today we have hundreds of thousands of enter- prises in need of technical transformation. The American West can find a big market in China for tts advanced production equipment, electronic technology, and so forth.

Premier Zhao pointed out that development of the economic and trade relations between

our two countries will encounter numerous difficulties. However, as long as we hold that such relations are mutually beneficial, it is worthwhile for us to make an effort to overcome rather than flinch from difficulties. Some personages in U.S. business circles have shown an unremitting and indomitable will in this respect. We appreciate and admire what they have done.

He said that China and the United States have different social systems, but this should not be an obstacle to our efforts to do business. We will try to understand better the American system and practices. At the same time, I hope that you will do the same in regard to the Chinese system and practices. “I believe that as long as we can under- stand each other more deeply, it is easier to get things done. In my opinion, at least me thing in the Chinese system is favorable to contacts with China by American business- men: im China, all departments and units from the top down are implementing the unified pollctes formulated by the government. Opening to the outside world has been estab- lished by the Chinese Government as a fundamental national policy to be carried out for i long time to come. This has provided a reliable fundamental guarantee for business- men of all foreign countries, including the United States, to develop economic and trade relations with China.”

te said: “There exists a very big gap between the levels of economic development of

the two countries. The gap does create some difficulties for our exchanges. But why should two countries trade with each other if they are exactly the same in everything? The existing gap, plus the huge potential of China's domestic market, is an assurance

for American businessmen to invest in China without the fear of China becoming a threat- ening competitor of the United States. China will not become such a competitor for a very lone time to come. Friction in some fields of course is unavoidable. Nevertheless, there is no doubt that the more China exports to the United States the larger the

Chinese market will be for American goods, technology, and capital.”

Premier Zhao pointed out that trade is always risky, but that the opportunities one has are far greater than the risks one takes when doing business with China. American business circles have always displayed a spirit of taking risks in order to take ad- vantage of an opportunity. Moreover, the Chinese Government, in implementing a policy of opening to the outside, will create all the necessary conditions so that in dealing with China vou can earn rational profits with minimum risks.

He said: We admit that our laws and regulations concerning foreign economic