SCMP Wednesday, June 9, 1999
Pressure on Zhu at leaders' meeting
WILLY WO-LAP LAM
Moderate and conservative factions are set to
clash over economic and foreign policy at the
annual leadership meeting in the northern
seaside resort of Beidaihe.
A party source said yesterday the position of
Premier Zhu Rongji would be further exposed
if Beijing failed to reach an agreement with the
United States soon on China's accession to the
World Trade Organisation (WTO).
"Beidaihe conferences usually start in late July
or early August, and if a WTO agreement is
wrapped up by then, Zhu can recommend
more reform measures there," said the source.
"However, much depends on the concessions
on economic, trade and technological matters
that Beijing is expecting from Washington."
A senior US State Department official is due in
Beijing soon to discuss ways to improve
bilateral ties after the bombing of the Chinese
Embassy in Belgrade.
Mr Zhu and senior aides, such as State
Councillor Wu Yi, have sent subtle messages
to Washington, the gist being that unless the
US is willing to engage in give-and-take,
reformist cadres might succumb to pressure
from the conservative coalition.
The party source said National People's
Congress Chairman Li Peng had been
particularly active building bridges to cadres in
three government units deemed most opposed
to the WTO - the ministries of agriculture,
information industry and civil affairs.
Moreover, Mr Zhu faces pressure to water
down his programme to restructure inefficient
large-scale state enterprises in three years.
It is understood President Jiang Zemin might
lend his support to cadres who argue that the
deadline for reforming state enterprises should
be extended by two years or more.
During well-publicised talks on enterprise
reform in Chengdu, Sichuan province, and
Wuhan, Hubei province, recently, Mr Jiang
and proteges including Vice-Premier Wu
Bangguo sounded much less aggressive on
reform than Mr Zhu.
Discussions on the outlines of the 10th Five
Year Plan (2001-2005) will also dominate.
Debates are expected on integration with the
world market and private-sector growth.
Relations with the US and Taiwan will top the
diplomatic agenda.