-Caveat Lector-

Hardliner in attack on reform

A CHINESE die-hard Marxist has condemned the sell-off of small, ailing
state-owned enterprises and warned that capitalism is eroding socialism.

Hardline comments by Deng Liqun, 84, once China's propaganda chief and
still regarded as the country's leading leftist figure, reflect a
broader political chill.

In a speech reprinted in the December issue of the monthly magazine
Zhong Liu _ literally meaning ``midstream'' _ Mr Deng took a swipe at
reformists in the Communist Party whom he said had abandoned socialism.

``In their hearts, it's no longer `only socialism can save China' but
`only capitalism can save China','' he said.

``The rights of an overwhelming majority of people would be guaranteed
if state-owned enterprises were in the hands of Marxists and
Leninists.''

China is selling off thousands of money-losing state enterprises while
shoring up its top 1,000 or so corporations under the slogan ``grab the
big, abandon the small''.

Avowed Marxists led by Mr Deng have made no secret of their opposition
to the sweeping reforms endorsed by the Communist Party in September
last year and aimed at thrusting state firms into the marketplace.

Leftists _ small in number and largely toothless, but a vocal and
influential group _ say the reforms will undermine communist control and
spark a social backlash as millions of workers lose their
cradle-to-grave
security.

``The sale of state enterprises to capitalists has transformed workers
from the masters of enterprises to the hired hands of bosses,'' Mr Deng
said in the speech given to the Society of Research on the History of
the People's Republic of China.

He said the role of the state sector in the economy had been reduced to
one-third this year from 76 per cent last year.

``This situation cannot be ignored,'' he said.

``Public ownership should be the mainstay and non-public ownership
supplementary.''

Mr Deng warned against administrative orders to forcibly sell off ailing
state enterprises.

Premier Zhu Rongji toured northeastern Liaoning province, the cradle of
China's Soviet-style heavy industry, in November and was quoted as
saying sell-offs should not be the sole way of reforming state
enterprises.

Mr Zhu cited instances in which state enterprises had been disposed of
by a ``half-sale, half-give-away method'' at great loss to the state,
and called for an end to the practice.

Mr Deng said there were about 30 million xia gang workers _ state
workers laid off but still receiving partial pay _ with 50 million
dependants.

Mr Deng accused foreign investors, including those from Hong Kong and
Taiwan, of opposing the establishment of labour unions, refusing to
implement the labour law and hiring child labour.

He said 48 million rural residents lived below the poverty line. -
Reuters



--
"And it came to pass that in the last days catatonics
roamed the earth, and great monsters ruled the masses."
     ---------------- Joshua II ----------------

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