China’s leaders O.K. pragmatism

Press, 2 September 1980, Page 8

China’s leaders O.K. pragmatism

NZPA-Reuter- Peking The ’ Chinese National People’s Congress began its third day yesterday with more panel, discussions on the economic and financial reports delivered oh Saturday by a Vice-Premier, Yao Yilin, and the Finance Minister (Mr Wang Bingqian). Official reports on the discussions yesterday indicated that they were largely devoted to praising the/ pragmatic economic, line “aid down in the two reports. ■ 7 The Xinhua .News Agency quoted one dr. two-. Parliamentary: deputies, as. making occasional suggestions during the . meetings, but , their comments were largely laudatory. . . The main function of the congress, the first in 14 months, is to ratify proposals already decided by the Communist Party, including important leadership changes involving the resignation, of the Party chairman (Mr Hua Guofeng) as Prime Minister. Dissenting views are selddm 'if ever expressed in the Chinese Parliament and have never been reported. Xinhua quoted one suggestion made by 'a delegate 1 callingifor greater power. -to.be given - the {-provinces ,in economic'; mariageipenfc.“han at present. It.said the deputy, Mr Li Ruihuai, a member of the Cornmuriist; Youth League secretariat, urged “he Government to act more, boldly in restructuring the . system of economic management.

But his remarks < were basically in line with the Government policies detailed : by Mr Yao in his repoifct l

1 which included more (autonomy for State-owned enterprises, improved ■_ management and planning procedures and boosting' the role of market forces to; loosen the strait-jacket of -a central-ly-planned economy. r • A peasant deputy, Mr Xu Qingwen, complained about the bad quality,, of some industrial .products sold in rural refrained from criticising the Govern' ment.-. The -Finance Minister, Mr Wang, announced a series of tax measures, ■ including taxes on joint ventures involving ‘Chinese and foreign investment and on individ' uals.:- & ■ Chinese do not pay. ■personal income tax, and it was not clear whether the ■ ■individual. taxes would, apply to foreigners employed by joint ventures or foreign* ers resident in .China. (* Value-added taxes {were proposed for machinery and farm; equipment industries, while ; more State-owned enterprises would have- business taxes levied rather than handing over ; their: profits. to the Government: .. <. . Mr Wang also said that the huge wave of rehabilitations of Cultrual Revolution victims had .cost the■ Government $660 million.- ■ JThe mbriey had been .»«ed for back-dated salary {payments to rehabilitated people and •to aid' those; in- “special difficulties.”

The money, , ..more than was planned for-in the Budget,'had been spent to mobilise the Chinese people to work for riatiphal modernisation “with one heart and one mind,” he said.