Extracts. Why China Not Allowing EP-3 to Fly out China sought US understanding Wednesday for its refusal to allow US Navy spy plane to fly home, saying public sentiment would be outraged if the aircraft flew again over Chinese territory, according to a report by chinadaily.com. Deputy Foreign Minister Li Zhaoxing said the Chinese public was outraged both by the resumption of US surveillance flights near China and by US suggestions that the spy plane be flown back from the Chinese military base where it landed after colliding with a Chinese fighter jet on April 1. ``If we allow such a military plane which had a mission of spying on China to be flown back from a Chinese military airfield, that would further hurt the dignity and sentiments of the Chinese people," said Li. It would be ``the cause of strong indignation and opposition from the Chinese people." ``This is the reason for what we are doing," said Li, who accompanied Chinese President Jiang Zemin to Hong Kong where he is attending the Fortune Global Forum. Beijing hopes the US side will take a ``pragmatic and reasonable attitude'' and negotiate the return of the damaged spy plane, ``maybe by boat, for example," he said in an interview. Li, former Chinese ambassador to the United States, said Beijing was intent on seeking cooperation and friendship with Americans for the ``sake of our common interests." Li's comments followed a meeting earlier Wednesday between Jiang and former US President Bill Clinton. Clinton did not bring any formal message for Jiang and met with him in a private capacity, said Clinton's spokesman, P.J. Crowley. The collision last month of the US Navy spy plane and the Chinese fighter jet, whose pilot apparently died in the crash, was an added irritant in ties already strained by differences over human rights, Taiwan and other issues. The EP-3E Aries II aircraft has sat on a military runway on the southern Chinese island of Hainan since making an emergency landing. China announced on Tuesday its refusal to allow the plane to return by air. Li's comments appeared to be an appeal for US understanding of Beijing's position. **** China Hails New Proposal by Egypt, Jordan on Resolving Israel-Palestine Conflict China appreciates and welcomes the proposal on resolving the Israel-Palestine conflict recently put forward by Egypt and Jordan, said Chinese Foreign Ministry Spokesman Sun Yuxi in Beijing Wednesday. Sun Called the proposal "positive and constructive." When asked for comments on the proposal designed to resolve the escalating Israel-Palestine conflict and resuming peace talks between the two, the spokesman said that China is deeply concerned over the conflict and condemns Israel's act to let its army "re-enter" Palestine and resort to force, which caused serious casualties. As a permanent member of the Security Council of the United Nations, China has always supported the efforts by the international community and parties concerned in easing the tension in the Middle East, Sun pointed out. The spokesman promised that China will continue to make its due contribution to resolving the Israel-Palestine conflict as well as to resuming peace talks between the two sides. **** Roundup: Myanmar Endeavors for Reducing Foreign Trade Deficit As deficit in foreign trade has become a major economic problem puzzling the Myanmar <http://english.peopledaily.com.cn/data/myanmar.html> government for a longed period, the government has in recent years made great efforts to solve the problem and scored some achievements to certain extent. According to the latest figures published by the country's Central Statistical Organization, in 2000, Myanmar's foreign trade totaled 4.086 billion U.S. dollars, of which imports amounted to 2.567 billion dollars, while exports were valued at 1.519 billion dollars, the trade deficit being 1.048 billion dollars. The first measure taken by the government in bringing down trade deficit is that it adopted the "sell more, buy less" and "export more, import less" strategies, encouraging its people to use home-made goods, use less foreign goods and substitute imported goods with domestic products as much as possible. Secondly, it greatly supported enterprises engaged in producing export goods, providing privileges in accordance with its policy. Thirdly, it added more border trade points, simplified related formalities, appropriately adjusted its standard of charge collection, strictly controlled the import of high-grade consumers goods and luxury ones. Fourth, it strove for the promotion of production, ensured goods supply and tackled the phenomena of shortage of locally-manufactured commodities. The main reasons for Myanmar to cause foreign trade deficit for consecutive years could be as follows: Myanmar is an agricultural country. The majority of its required capital goods including machines and equipment depends on import, whereas such goods mostly contain high degree of technology and highly-added value, and the prices are relatively costly in comparison. In 2000, Myanmar imported capital goods worth of over 600 million dollars, accounting for 28.2 percent of the country's total imports. In addition to relying on import of capital goods, Myanmar still has to spend much foreign exchange annually, importing a large quantity of consumers goods to ease the phenomena of shortage of locally-manufactured consumers goods. In 2000, Myanmar's import value of consumers goods took up 44.2 percent of the country's total import. Myanmar's main export goods are primary products such as agricultural products, marine products and timber. The prices of these primary products in international market are low, constituting a great contrast against capital goods which contain high degree of technology and highly-added value. For a long period, the structure of Myanmar's export goods has been unitary and commodities available for export has also been much limited. Besides, Myanmar products lack good quality and competitiveness in the world market. Total settlement of the deficit problem could not be brought about overnight. The realization of the target is up to the adjustment of the structure of Myanmar's export goods, improvement of products in quality as well as the uplifting of the degree of industrialization and level of science and technology. The number of countries and regions having trade links with Myanmar is only over ten, of which the main trading partners are Singapore <http://www.peopledaily.com.cn/english/data/singapore.html> , China, Thailand <http://english.peopledaily.com.cn/data/thailand.html> , the Republic of Korea and Malaysia <http://www.peopledaily.com.cn/english/data/malaysia.html> . **** Full Text of Jiang Zemin's Speech at Fortune Forum President Jiang Zemin Attends Fortune Global Forum in Hong Kong Following is the full text of the speech delivered by Chinese President Jiang Zemin <http://english.peopledaily.com.cn/data/people/jiangzemin.shtml> at the dinner for the opening of the Fortune Global Forum 2001 in Hong Kong <http://english.peopledaily.com.cn/data/hk.html> Tuesday, May 8: Mr. Gerald M. Levin,Mr. Tung Chee-hwa,Distinguished Guests,Ladies and Gentlemen, I am delighted to be with you here in the Hong Kong Special Administrative Region of China on this beautiful evening. I wish to express, on behalf of the Chinese Government and people, warm welcome to all of you who have come here for the Fortune Global Forum 2001 sponsored by AOL Time Warner. The theme of this Forum, "Next Generation Asia", is of great significance, for the development of Asia bears on the development and prosperity of all countries and regions not only in this continent but also worldwide. In the course of the 2Oth century, we Asian people waged an unyielding struggle to win national independence and liberation, get rid of poverty and backwardness, and bring about development and prosperity, and scored remarkable achievements. All this has contributed significantly to peace and development in Asia and the world at large. The tremendous change and rise of Asia are a great miracle that the Asian people have created and an important landmark in the world development and progress of the 2Oth century. Currently, the world is moving deep into multipolarity, economic globalization is developing further and science and technology are advancing rapidly. This has presented both new opportunities and challenges to the development of Asia. There are 49 countries and regions in Asia, and most of them are developing economies. Economic globalization will benefit them in the following manner: It will facilitate their access to more capital, especially direct investment from multinationals, which will enable them to speed up their economic development and restructuring. It will encourage them to acquire and exploit new markets and develop foreign trade and economic cooperation with other countries by giving full play to their advantages. Furthermore, it will enable them to acquire advanced technologies and management expertise more quickly so that they will be able to make better use of their advantages as late starters and attain technological progress by leaps and bounds. At the same time, it must be noted that economic globalization is a double-edge sword. As the unfair and unreasonable international political and economic order has not been fundamentally changed yet, economic globalization has exacerbated the uneven development among countries and regions and widened, in particular, the gap between the North and the South and between the rich and the poor. It has also made developing countries more vulnerable to the impact of external economic turmoil and financial crises, as evidenced by the grave impact of the Asian financial crisis of the late 199Os on some Asian countries and regions. It is true that there exist in Asia's economic development some problems that merit our attention. They include irrationality in the economic structure of some countries and regions, their low level in science and technology, inadequacy in the financial system to ward off risks, and heavy dependence on external economies. The outbreak of the Asian financial crisis has made Asian countries, particularly those hard-hit countries and regions, more keenly aware of the urgency to address those problems. They are now working hard to promote economic growth. Asia is the largest continent on earth, with nearly 30 percent of the world land area and about 60 percent of the world population. It boasts a huge potential in market demand and a sound foundation for development. It is also rich in both natural resources and human resources. It has a time-honored history and culture. The valleys of the Yellow River, the India <http://www.peopledaily.com.cn/english/data/india.html> n River, the Euphrates and the Tigris are known as cradles of human civilization. This diversified culture in Asia has invigorated and stimulated its development. More importantly, the Asian peoples have a strong sense of self- esteem, self-confidence, self-reliance and self-improvement. This is an important driving force for transformation and innovation. The Asian peoples know full well the importance for all countries to treat each other as equals, conduct mutually beneficial cooperation and live with each other in peace and harmony. They strongly believe that peaceful co-existence among countries with different traditions, cultures and social systems is an important political condition for closer friendly relations and cooperation. At present, Asian countries and regions are vigorously restructuring their economies, enhancing their respective development capacities, improving their environment for investment and trade, and preparing themselves against possible financial risks. Meanwhile, they are deepening regional economic and technical cooperation, with emphasis on scientific and technological exchanges, human resources development and infrastructure construction. They are working for a sound development of a multilateral trade regime so that they may complement one another. Economically, Asia is still the most dynamic region in the world. Asia will surely make a greater contribution to world peace and development in the new century as long as it gives full play to its advantages. Opening-up to the outside world is a major decision China has made to advance its modernization drive and also its long-term basic state policy. Over the past twenty years and more, an all-directional opening- up pattern has, by and large, taken shape in China and its open economy has gown rapidly. China is now the 7th largest trading nation in the world. For eight years in a row, it has attracted more foreign capital than any other developing country. It has engaged in extensive economic and technological exchanges and cooperation with other countries and regions. This has not only given a strong boost to China's economic and social development, but also created favorable conditions for businesses of other countries and regions to seek business opportunities and conduct cooperation in China. In today's world, a country can hardly develop in isolation. The Chinese Government will unswervingly implement the opening-up policy. It will more vigorously promote all-directional, multi- tiered and wide-range opening-up and take part in international economic cooperation and competition at a greater width and depth. China will continue to develop its foreign trade vigorously. It will more effectively implement the strategy of diversifying market and expanding trade on the strength of quality and through science and technology, so as to increase import and export of both goods and services. It will stick to the policy of making active, rational and effective use of foreign capital. It will continue to improve its investment climate and attract more foreign capital. It will explore various ways to put foreign capital to better use, such as acquisition, merging, investment fund and equity investment. It will open wider to the outside world, both sectorwise and geographically. It will phase-in the liberalization of such service sectors as banking, insurance, telecom and trade and promote the opening-up in its mid-west. It will work hard on e-commerce, accelerate the process of informatization, and support enterprises in applying modern information network technology to international cooperation and exchanges. It will take an active part in the multilateral trading system as well as regional and international economic cooperation. It will develop its bilateral and multilateral trading ties in an all-round manner. The next five to ten years will be a crucial period for China's economic and social development. China will keep a sustained, rapid and sound economic growth. The blueprint has already been drawn for the development in the next five years. According to the program, continued efforts will be made to promote economic growth and social progress, with development as the main theme, restructuring the key link, reform, opening-up and technological advancement the driving force, and higher living standards the ultimate goal. At present, China is making strategic readjustment to its economic structure and speeding up the readjustment of its industrial setup, regional structure, urban and rural structure and ownership composition. China has given prominence to the development of science, technology and education, accelerated the informatization of national economic and social progress, strengthened environmental protection, expedited township development and improved public service system. It is expected that China's GDP will have reached 12.5 trillion yuan by 2005. China's development will present huge business opportunities to business communities of other countries. According to a preliminary estimate, from 2OO1 to 2005, China will import 1.4 trillion U.S. dollars worth of equipment, technologies and products. We welcome more overseas investment, new investment projects in China and long-term stable cooperation with us by business communities around the world. Negotiations on China's accession to the WTO have been going on for 15 years. China's stance remains the same. Following its entry into the organization, China will steadily expand its opening-up program in terms of commodity and services trade, create a level playing field for a fair and transparent competition between Chinese and overseas enterprises, establish and improve a foreign trade regime that is consistent with international practice and that suits China's own national conditions, and provide the overseas enterprises with more and stable accesses to the Chinese market so as to facilitate economic cooperation and trade between China and other countries. China's entry into the WTO will instill new vitality into the economic growth of China as well as other countries and regions in Asia and beyond. The Chinese people will benefit from it, and so will the people of other countries in Asia and the world. "One country, two systems", "Hong Kong people administering Hong Kong", a high degree of autonomy and maintenance of the long- term prosperity and stability of Hong Kong are the established principles and policies of the Chinese Government. This Fortune Global Forum 2001 in Hong Kong will give you an opportunity to see for yourselves a new look of Hong Kong under the principle of "one country, two systems", a new Hong Kong that is dynamic and thriving. Since its return, Hong Kong has been comprehensively implementing the principles of "one country, two systems", "Hong Kong people administering Hong Kong", and a high degree of autonomy, and its Basic Law. The Central Government has faithfully observed the Basic Law, firmly supported its Chief Executive and the government of the SAR in their work, and has never intervened in the affairs that are under the autonomy of the HKSAR. Facts have proved that the HKSAR government with Mr. Tung Chee-hwa as its Chief Executive has the wisdom and capabilities to cope with complicated situations and that Hong Kong people can manage Hong Kong well. Since Hong Kong's return to China, its previous capitalist system and way of life have remained unchanged. Hong Kong residents have enjoyed full freedom and more democratic rights than ever before. Much to our joy, people from all walks of life in Hong Kong have more and more identified themselves with the State and the nation. They have assumed the role of a master of Hong Kong and are taking an active part in all social undertakings. Since its return, Hong Kong has successfully overcome the impact of the Asian financial crisis and has not taken long to obtain a growth, though of a recovery nature. This shows that it has a fairly good economic foundation and a relatively sound banking regime, market mechanism and legal system. The mainland has been and will always be the strong backing behind a stable and prosperous Hong Kong. I believe that the mainland will continue to enjoy a sustained, rapid and sound economic development, and that Hong Kong will continue to improve its economic system, and maintain and strengthen its important role as a bridge between the mainland and the world market. The Hong Kong economy is bound to have an even broader prospect for development. I would like to take this opportunity to reiterate that it is the long-term basic state policy of the Chinese Government to implement the principles of "one country, two systems", "Hong Kong people administering Hong Kong", and a high degree of autonomy. The Chinese Government will never waver in or change this policy come what may. Peace and development are the themes of the times. People across the world should join hands in advancing the lofty cause of peace and development of mankind. A peaceful environment is indispensable for national, regional and even global development. Without peace or political stability, there would be no economic progress to speak of. This has been fully proved by both the past and the present. In today's world, the international situation is, on the whole, moving towards relaxation. However, conflicts and even local wars triggered by various factors have kept cropping up, and tension still remains in some areas. All this has impeded the economic development of the countries and regions concerned, and has also adversely affected the world economy. All responsible statesmen and governments must abide by the purposes of the UN Charter and the universally acknowledged norms governing international relations, and work for a universal, lasting and comprehensive peace. Nobody should be allowed to cause tension or armed conflicts against the interests of the people. There are still in this world a few interest groups which always want to seek gains by creating tension here and there. This is against the will of the majority of the people and against the trend of the times. An enormous market demand can be created and economic prosperity promoted only when continued efforts are made to advance the cause of peace and development to ensure that people around the world live and work in peace and contentment and focus on economic development and on scientific and technological innovation. I hope that all of us here today will join hands with all other peace-loving people and work for a lasting world peace and common development and prosperity of all nations and regions. Thank you. **** Russia Recalls WWII Nazi Defeat President Vladimir Putin, marking Wednesday's 56th anniversary of the Nazi defeat, warned that no nation should pursue its own security at the expense of others, an apparent chastisement of the United States and its missile defense plans. Putin's statement came as World War II veterans, bent and shuffling with age but proudly draped in medals, gathered at commemorations throughout Russia, Ukraine and Belarus. The holiday known as Victory Day is one of the most solemn and resonant in the former Soviet Union, which lost some 27 million people in the war. ``We remember the ravaged towns and the burnt-down villages, the ruin of treasures of national culture, everything that we lost in those years,'' Putin said in a speech in Red Square. ``Today, the first time we look on this victory from a new century, its significance only grows.'' ``The war's lessons are what we need today. Those lessons teach us to find balance between force and reason ... no one has the right to forget this,'' he said. ``The entire experience of the postwar history shows it is impossible to build a safe world for oneself alone and, still less, at the detriment of others.'' The statement appeared directed at the United States' plans to build a national missile defense system, which Washington says it needs to protect against attacks by small ``rogue'' nations, but which Russia says will wreck the foundations of global security and provoke a new arms race. Hundreds of veterans joined Putin in the Red Square reviewing stands. About 5,000 troops �� including some returning from service in hot spots including Chechnya �� and military cadets marched straight-legged in dress uniforms, as a 600-piece military band played martial tunes and drummers beat out a rapid tempo. Defense Minister Sergei Ivanov rode past the troops standing in a silver-blue ZiL convertible, stopping several times to greet the troops. Ivanov wore a business suit, reflecting his status as a civilian defense minister �� a switch from the Soviet and Russian practice of giving the job to generals. Several thousand Communists and others nostalgic for the Soviet Union marched to a rally in front of the former KGB headquarters on Lubyanka Square, some carrying portraits of wartime dictator Josef Stalin. Veterans gathered in Moscow parks to dance, drink shots of vodka and eat boiled barley scooped out of huge cauldrons as they did at the front during World War II. In the Ukrainian capital Kiev, veterans marched down the city's main street, joined by children and grandchildren. Thousands of the veterans chose to march under red Soviet banners in groups organized by the Communist Party and other hard-line movements. Many veterans walked with obvious difficulty and leaned heavily on canes, but still managed to raise their hands to salute onlookers. Belarusian President Alexander Lukashenko marched at the head of a commemoration parade in the capital Minsk. _________________________________________________ KOMINFORM P.O. 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