Extracts.

DPRK Order Awarded to Chinese Ambassador.

A DPRK order was awarded to Chinese ambassador to the DPRK Wang Guozhang
with due ceremony at the Mansudae Assembly Hall Wednesday. The friendship
order first class of the DPRK was awarded to him in recognition of his
positive activities to strengthen and develop the DPRK-China friendship.

A DPRK  order was awarded to Chinese ambassador to the DPRK Wang Guozhang
with due ceremony at the Mansudae Assembly Hall Wednesday. The friendship
order first class of the DPRK was awarded to him in recognition of his
positive activities to strengthen and develop the DPRK-China friendship.

Present at the ceremony were Kim Yong Nam, President of the Presidium of the
Supreme People's As1embly of the DPRK, Kim Yong Il, vice-minister of foreign
affairs, and staff members of the Chinese embassy here.

Wang Guozhang said that the order awarded to him is an expression of deep
friendship of leader Kim Jong Il, the party, government and people of Korea
toward the party, government and people of china, adding he would make every
possible effort to develop the friendly relations between china and the DPRK
in the future. 

Kim Yong Nam Meets Chinese Ambassador
President Kim Yong Nam of the Presidium of the DPRK Supreme People's
Assembly met and conversed with Wang Guozhang, Chinese ambassador to the
DPRK who paid a farewell visit to him, at the Mansudae Assembly Hall
Wednesday. Present there were vice-minister Kim Yong Il of foreign affairs,
officials concerned and Tian Baozhen, minister-counselor of the Chinese
embassy here, and other embassy officials.

****
Saddam Meets Iraqi Air Force Chief Amid U.S. Anti-Iraq Threat.

Iraqi President Saddam Hussein on Wednesday met with Iraqi Air Force
Commander Hamid Rija Salah and a number of officials in the air force
command amid widespread speculations that the United States might soon
launch a military campaign against the country.

Iraqi President Saddam Hussein on Wednesday met with Iraqi Air Force
Commander Hamid Rija Salah and a number of officials in the air force
command amid widespread speculations that the United States might soon
launch a military campaign against the country.
During the meeting, Salah pledged to Saddam that the pilots and soldiers of
the Iraqi air force are ready to carry out any task under the president's
order and defend Iraq's sovereignty and territorial integrity, the official
Iraqi News Agency (INA) reported.
"Saddam hails the efforts and achievements of the air force fighters, and
blesses their keenness to improve their fighting abilities with advanced
technical means," the INA said.
Saddam has held frequent meetings recently with his top military aides to
discuss the security situation in the country as the U.S. toughened its
rhetoric against Iraq since the September 11 terror attacks on the U.S..
In the latest warning to the sworn enemy, U.S. President George W. Bush on
Monday demanded Saddam to allow arms inspectors back "to show us that he is
not developing weapons of mass destruction."
When asked about the consequences if Iraq rejects, Bush said: "He will find
out." 
Iraq on Tuesday rebuffed the warning as "arrogant" and vowed not to bow to
any threats. 
Iraq, who has rejected international arms inspection since it was attacked
by the U.S. and Britain in December 1998, insists that the return of arms
inspectors hinges on the total lifting of the sanctions.
Iraq has been under sweeping United Nations sanctions since its 1990
invasion of neighboring Kuwait.
U.S. Secretary of State Colin Powell has said that the U.S. could turn
attention to Iraq after its military campaign in Afghanistan is over.


****


CIA Officer Killed in Afghan Prison Revolt.
 
An officer of the U.S. Central Intelligence Agency (CIA) was killed in a
prison revolt near Mazar-i-Sharif in northern Afghanistan, the U.S. spy
agency said Wednesday.

An officer of the U.S. Central Intelligence Agency (CIA) was killed in a
prison revolt near Mazar-i-Sharif in northern Afghanistan, the U.S. spy
agency said Wednesday.

The officer, identified as Mike Spann, was the first American officially
recognized as being killed in combat situation within Afghanistan.

Spann's body was recovered shortly after Northern Alliance forces, backed by
U.S. and British special forces, quelled a revolt by hundreds of
surrendering foreign Taliban and al-Qaeda prisoners. The CIA did not provide
any details on how the 32-year- old spy was killed.

Earlier reports had said that one U.S. personnel was killed in a shootout
during the revolt which took place on Sunday. But the Bush administration
had denied the reports, insisting that all U.S. personnel had been accounted
for. 

The administration later disclosed that five U.S. military personnel were
injured by a stray U.S. bomb dropped by U.S. warplanes which intended to
provide air support to the Northern Alliance troops to crush the riots.

Apart from Spann, another three U.S. military personnel have been killed
outside Afghanistan in accidents related to the military strikes which began
on October 7. 

****


Afghan Alliance Rejects U.N. Proposal.

The Afghan northern alliance rejected the United Nations' proposal for an
international security force for Afghanistan, insisting Wednesday that a
security force-- theirs-- is already in place.
They also dampened expectations that the former king would head an interim
administration. 

The Afghan northern alliance rejected the United Nations' proposal for an
international security force for Afghanistan, insisting Wednesday that a
security force-- theirs-- is already in place.

They also dampened expectations that the former king would head an interim
administration. 

Deciding on the makeup of a security force, as well as an interim
administration, are the two difficult goals of a U.N.-sponsored meeting of
four Afghan factions at a mountaintop manor outside Bonn.

``We don't feel a need for an outside force. There is security in place,''
the northern alliance's chief negotiator, Younus Qanooni, said at the second
day of the talks. 

If a security force is needed to enforce an agreement on an interim
government, Qanooni said it should be comprised of Afghanistan's ethnic
groups. 

The other groups at the conference �� supporters of ex-King Mohammad Zaher
Shah, and two other exile groups based in Cyprus  and Pakistan�� are pushing
for a neutral, U.N.-backed force.

Qanooni also dampened expectations that the former king would head an
interim administration, saying he would have a role only if elected by a
national council. 

``We don't believe in the role of a person and personalities. We believe in
a system, for example, the loya jirga,'' Qanooni said. ``If the people agree
through a loya jirga that the king has a role, of course,'' he said.

Delegates from other factions at the conference indicated earlier Wednesday
that consensus was growing around the ex-king as head of a transitional
administration, which would run Afghanistan until a national council, or
loya jirga, can convene, possibly as early as March.

In Washington, U.N. Secretary-General Kofi Annan said after a meeting with
Secretary of State Colin Powell that the Afghan leaders in Bonn ``have a
unique and historic responsibility to do something for their people.''

Annan said that if they form a broad-based transitional administration, the
international community will have a partner with which to work.

``I urge them and plead with them for the sake of their people and the
country and the region to show the leadership required.''

After heralding a unifying tone at the opening sessions, the United Nations
toned down expectations on the talks' second day.

With discussions under way at informal meetings among the delegations and
with representatives of observer nations in the corridors of the Petersberg
hotel on the two contentious issues, the four delegations have twice
postponed a working meeting with U.N. envoy Lakhdar Brahimi. That meeting is
to take place on Thursday, U.N. spokesman Ahmad Fawzi said.

``We have to decide whether we should not help them move along and overcome
obstacles,'' deputy U.N. envoy France
<http://www.peopledaily.com.cn/english/data/france.html> sc Vendrell said,
adding that the United Nations will probably ``encourage them, prod them.''

U.S. envoy James F. Dobbins said it was natural for differences to begin
emerging at this stage in the talks.

``They've now gotten past the get-acquainted stage and are grappling with
the real issues,'' Dobbins said.

Key to any accord is the northern alliance, a coalition of warlords that has
gained control of much of Afghanistan since U.S. forces began bombing
suspected terrorist targets in the wake of the Sept. 11 attacks on New York
and Washington. 



Toward a New Afghanistan
Representatives of the Northern Alliance and three other factions open talks
on forming a broad-based interim administation for Afghanistan Tuesday in
Bonn, Germany.
Rome delegation
Representing ex-King Mohammad Zaher Shah;includes former ministers,
economists and two afghan women's rights activists.
Cyprus deledation
Representing Afghan exiles close to to Iran. The group will include two
advisers. 
Peshawar delegation
Representing some Pashtuns and based in the Pakistani city of Peshawar.
United Front
Representing the groups that make up the Northern Alliance; including
Tajiks, Hazaras and Uzbeks.


****

Fast Growth, High Efficiency and Low Inflation Feature China's Economy (II).

China has achieved a good beginning in carrying out the blueprint of the
"10th Five-year Plan", as evidenced by the new, noticeable achievements in
economic construction: a 7.3 percent GDP growth over the previous year is
expected this year, it is entirely possible to reach the economic growth
target set early this year.
Beijing's success in its bid for hosting the 2008 Olympic Games, the
successful convocation of the APEC Conference in Shanghai, China's upcoming
accession to the World Trade Organization (WTO) and other major events have
attracted the attention of the world people who hail the good momentum of
China's economic development.

In 2001, the pace of the three major economies of the United States, Japan
and European Union (EU) has further slowed down, the world economic
development has encountered difficulties unprecedented in the past 20 years.
In the year soon to be over, hundreds of millions of Chinese people, under
the leadership of the Communist Party of China (CPC), are taking firm step
in overcoming various difficulties, and through their hard work, have
achieved a good beginning in carrying out the blueprint of the "10th
Five-year Plan", as evidenced by the new, noticeable achievements in
economic construction: a 7.3 percent GDP growth over the previous year is
expected this year, it is entirely possible to reach the economic growth
target set early this year.
Beijing's success in its bid for hosting the 2008 Olympic Games, the
successful convocation of the APEC Conference in Shanghai, China's upcoming
accession to the World Trade Organization (WTO) and other major events have
attracted the attention of the world people who hail the good momentum of
China's economic development. In the complicated and changeable external
environment, we have persisted in the principle of expanding domestic
demands, implemented the pro-active fiscal policy and a robust monetary
policy, as a result, a situation of rapid growth has appeared in economic
operation, bringing fresh vigor for world economic development.

Macro-economic Decision: Being Predictable, Scientific and Efficient
Since the beginning of this year, due to the synchronous slowdown in the
economic development of the world's three major economies-the United States,
Japan and EU, the deterioration of the international economic environment
will be worse than the Asian financial crisis. The acceleration of economic
globalization has added burden on many countries and regions around the
world. Under such an international environment, it is really not easy for
China's economy to maintain a growth rate of over 7 percent.
The fact that China's economy still maintains a rapid growth under the
circumstance of a downturn of the world economy shows that China's
macro-economic policy decision is predictable, scientific and efficient.
The Central Economic Work Conference held at the end of November last year,
while planning this year's economic work, clearly pointed out that it was
necessary to persist in solving the problems arising in the course of
advance by the method of development, promptly adjust the macro-economic
decision in light of the change and development of the situation and
constantly improve it in practice.
The Central Working Conference held this February called on comrades of the
whole Party to rally more closely around the Party Central Committee with
Comrade Jiang Zemin at the core and, uphold Deng Xiaoping Theory and the
Party's basic lines as the guidance and comply with the requirements of the
"three represents", to get a clear understanding of the situation, grasp the
general situation, make concerted efforts, do solid work in real earnest,
and work hard to accelerate the reform, opening up and socialist
modernization drive and to achieve the magnificent goals of the "10th
Five-year Plan" for social and economic development.
The Fourth Session of the Ninth National People's Congress (NPC) held in
March this year made predictable analysis and judgment on the difficulties
that may be encountered in China's economic development resulting from the
slowdown in international economic growth rate and inadequate domestic
demands and made relevant arrangements.
The desirable performance of China's economic development this year once
again proves the correctness and timeliness of implementation of the policy
of expanding domestic demands.
China has implemented a macro-control policy based mainly on expanding
domestic demands for four consecutive years and has achieved remarkable
results since 1998. In the middle of 2000, China's economy began to take a
turn for the better, the GDP growth rate was restored to 8 percent and the
years-long economic declining trend was reversed, this has not only helped
China shake off the adverse influence of the Asian financial crisis, but
also has greatly enhanced reserve strength for further development.
On the basis of past years' practice, this year China has continued to
implement the proactive fiscal policy and a robust monetary policy to boost
the sustained, rapid and healthy development of the national economy.
China has continued to issue additional treasury bonds worth 150 billion
yuan, which is mainly to be used in infrastructure construction, the
large-scale development of the western region, technical renovation and the
continuation of some projects using national bonds. National bond investment
arranged for this year is budgeted at 150 billion yuan, this, plus the 50
billion yuan national bond funds carried over to this year from last year,
makes usable national bond funds reach 200 billion yuan, higher than the
average annual 120 billion yuan level in the previous three years. Of the 50
billion yuan national bond funds to be used for developing the projects of
the western region, 20 billion yuan is arranged to be used in the first half
of the year, the remaining 30 billion yuan can be put into use in the second
half of the year. 
In the face of the many unfavorable factors for economic development,
continued efforts have been made to implement the principle based mainly on
expanding domestic demands to maintain the continuity and stability of the
monetary policy, we have made flexible use of a variety of money policy
tools to maintain an appropriate growth in the money supply.
Increase of investment is integrated with expansion of consumption. This
year, we have continued to regard the expansion of consumption as an
important content of the implementation of the proactive fiscal policy, and
have further increase effort for the policy of expanding consumption. First,
we increased the wages for staff in organizations and institutions and
pensions for retirees twice in April and October respectively. Second,
central and local financial departments have dramatically increased
expenditures on social security, basic pensions for enterprise retirees and
basic living costs for laid-off workers from State-owned enterprises have
been issued on time and in full. Third, we have tried by every possible
means to increase farmers' income. We have continued to increase input in
agriculture to promote management of agriculture in an industrial way, we
have carried out the policy of supporting the development of leading
enterprises, thus creating conditions for increasing farmers' income and
opening up rural markets. In view of the serious situation of disasters this
year, the State has exempted relevant agricultural tax in villages of the
afflicted areas. Fourth, through the adoption of such measures as increasing
input in tourist infrastructure facilities, encouraging the development of
housing credit, reducing car purchasing tax and abolishing fees on the
initial installation of mobile telephones, we have improved the policy of
consumption and promoted consumption growth in the fields of tourism,
housing, motor vehicle and telecommunications.
It is emphasized that every possible means should be tried to expand
exports. To deal with the situation featuring the slowdown in the world
economic and trade development and a decline in international market
demands, we have persisted in the strategy of diversifying the export
market, actively opened up new markets and adopted a series of measures to
encourage exports and have thus achieved the anticipated results. By
implementing and stabilizing the various measures including export tax
refund, we have maintained the continuity and stability of policy. We have
speeded up adjustment of the mix of export commodities, increased the
proportion of the export of electromechanical products and enhanced
international competitiveness of export. We have continued to deepen reform
of the foreign trade system and foreign trade enterprises, granted
production enterprises more right of import and export management and
enhanced the vigor of enterprises. We have waged resolute and in-depth
special struggle against the gaining of export tax refund through fraud and
deception and struggle against smuggling and illegal arbitrage of foreign
exchange, which have played a desirable role in improving the foreign trade
environment. 
For a period of time to come, fairly big uncertainty and complexity will
continue to exist in international economic development. China is a large
developing country with a population of nearly 1.3 billion, it is faced with
a very heavy task of economic development. In the face of the complicate and
changeable international situation, especially after entry into the WTO,
China's economic construction will be confronted with both new opportunities
and new challenges. Nevertheless, China has vast domestic markets, abundant
human resources and a stable social environment. So long as we persist in
the principle of expanding domestic demands, implement the proactive fiscal
policy and a robust monetary policy, calmly cope with the situation and
pursue the good while avoiding the harm, we will certainly be able to grasp
the initiative of development in our own hands, march forward triumphantly
and maintain the rapid and stable economic growth.

****


U.S. to Buy 155 Million Doses of Smallpox Vaccine.

The Bush administration signed a contract Wednesday to buy 155 million doses
of smallpox vaccine from a British firm, preparing for the possibility
terrorists would try to spread the deadly virus.

The Bush administration signed a contract Wednesday to buy 155 million doses
of smallpox vaccine from a British firm, preparing for the possibility
terrorists would try to spread the deadly virus.

The contract with Acambis Inc. will bring the nation's stockpile to 286
million doses of the vaccine by the end of next year, promising protection
for every American should bioterrorists attack with the all-but-extinct
virus. ''The risk does exist and we must be prepared,'' said Health and
Human Services Secretary Tommy Thompson.

The vaccine can be administered four days after exposure to smallpox and
still offer protection. For that reason, and because the vaccine can cause
some rare but deadly side effects, officials have no plans to resume the
routine vaccinations of Americans that ended in 1972.

Thompson said that buying the new vaccine is sure to prompt demand for the
shots by some Americans and debate in Congress and at the White House over
whether vaccinations should resume.

The government already has 15.4 million doses of smallpox vaccine on hand,
and officials are preparing to dilute each of them to create five doses,
bringing the total to 77 million. Researchers are studying whether each dose
could be further diluted, to get 10 doses from each one.

In either case, the diluted vaccine would only be used if the new doses had
not yet been delivered, or if they ran out, said Dr. Anthony Fauci, director
of the National Institute of Allergy and Infectious Disease.

An additional 54 million doses have already been ordered from Acambis and
are expected to be delivered next year.

The new contract will bring another 155 million doses, which are expected by
late fall 2002. They will cost the government $428 million, or $2.76 per
dose. That's less than the $509 million that the Bush administration has
asked from Congress to pay for the new vaccine.

The initial budget request assumed that the government would need to buy 250
million doses, but new research has found that the existing vaccine can
safely be diluted, meaning much less new vaccine is needed.

Smallpox hasn't occurred in the United States since 1949 and was declared
eradicated from the globe in 1980. But the Centers for Disease Control and
Prevention in Atlanta and a Moscow laboratory hold stocks of the virus, and
experts worry that samples could fall into terrorists' hands and be brewed
into enough to be used as a weapon.

Bioterrorism experts say a smallpox attack is unlikely, but it could
overwhelm communities were it to occur. The virus is highly contagious, and
nearly a third of its victims die.





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