-Caveat Lector-

Does this sound like the AOL/Ireland debate ?


>From Associated Press

Friday January 29 1:47 PM ET

China To Hunt Sedition on Internet

By CHARLES HUTZLER Associated Press Writer

BEIJING (AP) - China has ordered police to hunt down people posting
anti-government remarks on computer networks - the latest move to tighten
government control over the Internet, a human rights group reported Friday.

China's national police ministry has ordered special computer task forces
to monitor Internet bulletin board services 24 hours a day, the Hong
Kong-based Information Center of Human Rights and Democratic Movement in
China said.

The directive ordered that once ``counter-revolutionary'' notices are
found, the police are to notify the bulletin board service and track down
the name of the sender, the group said.

Any bulletin board that did not stop the ``seditious'' talk would be shut
down, the group cited the order as saying.

A spokesman for the Public Security Ministry, who only identified himself
as Mr. Yang, said he had ``never heard of such a directive.'' But the rule
is consistent with a clampdown on dissent and intensified efforts to
control the Internet.

With unemployment rising in the cities and farmers resentful over sagging
incomes, Communist Party rulers are taking no chances in a year filled with
politically dangerous anniversaries.

Most sensitive are the 10th anniversary of the Tiananmen Square democracy
movement and its violent quelling in June and the 50th anniversary of the
Communists' 1949 victory.

Chinese authorities have been keen to harness the Internet for business and
education but leery of its capacity to spread dissent.

Last week, a Shanghai court sentenced a computer entrepreneur to two years
in prison for exchanging 30,000 e-mail addresses with an Internet democracy
magazine run by U.S.-based dissidents.

Despite the controls and threats, Internet use has soared in China. Users
topped 2.1 million last year, a four-fold growth in a year, and another 1.5
million accounts are expected to be opened this year.


Monday February 1 11:20 AM ET

6 China Companies Miss Bond Payments

GUANGZHOU, China (AP) - At least six state companies in southern China have
missed repayment of domestic bonds, adding to a string of defaults that
have burned banks and investors.

All of the companies are in Guangdong province. The amount involved appears
to be below 500 million yuan ($60 million) - far less than the 36.15
billion yuan ($4.3 billion) owed by Guangdong International Trust and
Investment Corp., which failed last month.

But it could hurt support for domestic bonds China plans to sell to finance
a spending spree meant to revitalize the slowing economy. A fresh blow to
confidence would come at a bad time, with economic growth expected to fall
to 7 percent this year from 7.8 percent in 1998.

``This could undermine the Guangdong provincial government's ability to
raise funds in the domestic bond market,'' said Dong Tao, senior regional
economist for Credit Suisse First Boston in Hong Kong.

The biggest recent default was by Maoming Qinghua Co., an acrylic fiber
maker. Its underwriter, Guangdong Securities Co., said the bond totaled
more than 100 million yuan ($12 million).

A Maoming city official said the city is considering putting the company
into bankruptcy or merging it with another enterprise.

Guangdong province is facing severe cash needs as it struggles to bail out
bigger state-owned companies.

Last week, Deputy Gov. Wang Qishan said Guangdong may inject as much as 30
billion yuan ($3.6 billion) into Guangdong Enterprises Ltd., the provincial
government's main investment arm in Hong Kong. That sum is equal to half
the Guangdong government revenue last year.

Meanwhile, Guangdong International Trust is trying to renegotiate its debts
after announcing in January that it couldn't repay them on time.

The Hong Kong central bank on Friday urged creditors to cooperate in hopes
of preventing a rush to call in loans at other China-linked Hong Kong
firms.

``Aggressive collection actions will only be counterproductive and make the
situation even worse for everyone,'' said a letter to banks from David
Carse, deputy chief executive of the Hong Kong Monetary Authority.


>From Agence Presse France

China updates constitution but party firmly in control




BEIJING, Feb 1 (AFP) - China's constitutional amendments which mainly
bolster private ownership were made without prior public consultation and
underline the monolithic power of the ruling Communist Party rather than
any fresh direction, analysts said Monday.

Changes announced at the weekend give higher priority to the private
sector, enshrine the rule of law, add "Deng Xiaoping thought" to the
official ideology and eliminate the crime of counter-revolution. They were
all agreed 16 months ago at a key meeting of the party.

"These additions, which were already affirmed in the report of the 15th
National Congress of the Communist Party of China in late 1997 have proved
to be completely correct," said top legislator and number two in the party
hierarchy Li Peng as he unveiled the changes.

"Timely and meticulous amendments to the constitution will make it better
meet the needs of reality and help maintain the authority of the
constitution," he added.

For two weeks before the announcement, China's media reported that changes
were afoot but it was not authorised to give any public information on the
content of the changes.

Officials from both the government and the parliament -- which
theoretically holds the highest power in China and is responsible for all
constitutional change -- said there was no need for public debate.

"You will know about the changes when they are announced," a spokesman for
the parliament told AFP. "Until then, this is not an open subject."

Since the founding of communist China in 1949, the parliament has
promulgated constitutions in 1954, 1975, 1978 and 1982, all under the
"guidance" of the Communist Party.

The latest changes mean that private ownership is an "important" part of
the economy instead of playing a supplementary role to the state sector.

Already, the state sector is dwindling in importance and produces only one
third of the value of China's goods and services. Collectives,
foreign-invested firms and private enterprises produce the rest.

Although the private sector currently accounts for only around 15 percent
of economic output, the government expects sharp growth and is looking to
the sector to soak up millions of excess labourers from struggling state
enterprises.

Other changes mean the government is mandated to rule "according to the
law." And the reform-minded thoughts of late patriarch Deng Xiaoping have
been given the high status of Marx, Lenin and Mao.

The term "counter-revolution" has been removed as an offence and replaced
with "acts against the state."

The amendments were put before lawmakers Saturday, who voted 124 in favour
and zero against and now have only to pass through the rubber-stamp full
session of parliament to become law.

"The constitutional amendments are hardly controversial or unexpected,"
said a western diplomat focusing on China's legal reforms.

"But they underline the real contradictions in the system because the
Communist Party is meant to be subservient to the parliament and the
constitution, but in fact it tells them what to do, even in terms of ruling
by law," he added.

Even party leader and state President Jiang Zemin did little to conceal the
ultimate power of the Communist Party in a speech on the changes broadcast
on national television.

"The Communist Party attached great importance to these amendments and the
move is China's declaration to the world that, supported by the
constitution, the Chinese people will unswervingly push ahead in the
building of socialism with Chinese characteristics," he said.

Back in 1997 when he announced the changes at the party congress Jiang
warned that the party must keep tight control despite economic reforms.

"The conclusion drawn from the great changes in our past is that only the
Communist Party of China can lead the Chinese people in achieving victories
and improving the people's well-being," he said.

~~~~~~~~~~~~
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