Extracts.

China Sees Good Beginning for Tenth Five-Year Plan.

The year 2001 will go down in history as a milestone for China as well as a
good beginning for the country's five-year (2001-2005) plan for economic and
social development. According to Zeng Peiyan, minister in charge of SDPC,
Chinese economy is expected to grow by 7.4 percent, exceeding 9 trillion
yuan for the first time in history. Development of agriculture, industry,
western regions, etc, shows a favorable tendency. WTO Entry also will
trigger more changes.

The latest official information shows that the year 2001 will go down in
history as a milestone for China as well as a good beginning for the
country's five-year (2001-2005) plan for economic and social development.

Zeng Peiyan <http://english.peopledaily.com.cn/data/people/zengpeiyan.shtml>
, minister in charge of the State Development Planning Commission, said
earlier this week the Chinese economy is expected to grow by 7.4 percent,
exceeding 9 trillion yuan (US$1.09 trillion) for the first time in history.

Higher Efficiency, Low Inflation
This year's fast economic growth, characterized by higher efficiency and low
inflation, indicates "a good beginning" for the five-year plan, said the
minister, describing it as a hard-won achievement as the world economy has
experienced a marked slowdown in growth.

Industrial Profits Up

During the first 10 months of this year, the total industrial profit
increased by 9.3 percent to 364.7 billion yuan (US$44 billion) over the
corresponding period of last year, while fiscal revenue rose by 256.8
billion yuan (US$31 billion), Zeng said.


Inflation Rate Remains Stable

According to a forecast by the commission, the inflation rate for this year
will remain basically stable, while the per capita disposable income for
urban residents will grow by 7 percent and the net per capita income for
farmers will increase by at least 4 percent.


Unemployment Rate Under Control

Meanwhile, the registered unemployment rate for urban China will be below 4
percent. 

Industrial, Agricultural Restructuring Fruitful
Encouraging progress has been made in industrial and agricultural
restructuring. 


Output of Farm Produce & Major Grain Increases

In coastal areas in eastern part of the country, priority has been given to
farm produce with higher added value, while in major grain producing areas
in the middle and western parts, the output of quality and special-purpose
farm produce has been increased.

The share of such major crops as wheat reported by regions with better
natural growing conditions has been increasing.


Coal Mining Industry Become Profitable

The country's coal mining industry, the only loss-making industry of
traditional industrial sectors, is set to become profitable this year for
the first time in years thanks to massive cuts in redundant jobs and higher
coal prices. 

China Becomes Biggest Handset User
In July, China overtook the United States as the world's biggest user of
mobile telecommunications, with the number of mobile phone users totaling
120 million. 

The IT industry is expected to reap a yearly income amount to take over 7
percent of China's GDP within five years, according to a forecast by the
State Development Planning Commission (SDPC). An annual average growth of
more than 20 percent will be achieved by mobile telecom. Handset users in
China are expected to exceed 260 million by 2005.

Overseas Investment Shows New High
Other highlights are new highs in recent years in fixed asset investment and
investment by overseas investors in the country, and some expensive products
priced at the 100,000 yuan (US$12,195) level -- such as cars -- are gaining
popularity. 

According to the Ministry of Foreign Trade and Economic Cooperation
<http://english.peopledaily.com.cn/data/organs/statecouncil.shtml#mftec> ,
China approved 18,585 overseas-funded projects in the January-September
period, 18.14 percent higher than in the same period of last year.
Contractual overseas investment for the first nine months reached 49.347
billion U.S. dollars, up 30.35 percent, and actual overseas investment
32.196 billion U.S. dollars, up 20.66 percent.

Hi-Tech Sector Made Achievements
In addition, China has launched a number of projects to commercialize
high-tech achievements, which have attracted nearly 20 billion yuan (US$2.4
billion) worth of social capital using small amount of capital collected
through issuing treasury bonds.

Western Development Strategy Pursued
China's western development strategy has gone into full swing as several
gigantic infrastructure projects were launched, such as the first railway
line linking the Tibet
<http://english.peopledaily.com.cn/data/province/tibet.html>  Autonomous
Region and Qinghai 
<http://english.peopledaily.com.cn/data/province/qinghai.html>  province,
and the projects designed to transmit electric power or natural gas from the
resources-rich west to the rapidly-industrializing east.

To facilitate the flow of human resources and urbanization, governments at
all levels have eased, to varying degrees, the restriction on migration from
rural areas to urban areas.

WTO Entry, A Historic Event
China's entry into the World Trade Organization   is viewed at home and
abroad as "a historic event" which will trigger more changes for China than
the country has seen in the past two decades.

Foreign Trade, Foreign Exchange Reserve Increase
Despite the sluggish demand outside the country, China managed to achieve a
7.9 percent increase in foreign trade during the first 10 months of this
year, with export up by 6.1 percent.

Senior Chinese economic officials believe overseas investment in China will
total US$59.4 billion this year.


Foreign Exchange Reserve Set New Record

Highlights of China's economic development include the new record high of
its foreign exchange reserve, which had exceeded US$200 billion earlier this
year. 

The outstanding amount of deposits by Chinese residents topped the 7
trillion yuan (US$853.6 billion), also a record high, earlier this year.

Meanwhile, China has continued to deepen its reform, regulate market and
economic order, improve its pricing system and maintain financial stability.

Living Standard of Chinese People Improved
The year 2001 also witnessed progress in China's bids to improve the
standard of living for its people in terms of material goods and cultural
life, and the overall concept of ethics in society.

A number of high-profile sports events also helped boost the morale of the
Chinese people. 

Solid Foundation, Uncertainty Warned
Economist Liu Guoguang attributed the economic and social achievements China
has made this year mainly to the country's adherence to the policy of
expanding domestic demand and commitment to a positive fiscal and stable
financial policies. The economist said the achievements will lay a solid
foundation for the country's economic development in the coming years.

But he warned that the uncertainty of the international economic environment
will restrain to some degree the Chinese economy, as the
better-than-expected increase in domestic demand has failed to offset the
drastic slump in overseas demand. "We must remain cool-headed amid
optimism," Liu said.

****



China Urges Compliance With International Humanitarian Law.

Sha Zukang, Chinese delegate and ambassador to the Office of the United
Nations in Geneva, urged Wednesday all parties involved in the conflict in
the Middle East to restrain and stop violence against civilians to prevent
any further deterioration of the situation.

Sha, also delegate of China to other international organizations in
Switzerland, made the call at the conference of High Contracting Parties to
the Fourth Geneva Convention which was held in Geneva on Wednesday.

China Opposes Any Form of Terrorism
He said, "We oppose any form of terrorism and are gravely concerned and
worried about large civilian casualties caused by the Palestinian-Israeli
conflict." 

He emphasized that "The Chinese government always believes that each and
every High Contracting Party has an unshakable legal obligation to respect
and comply with international humanitarian law by protecting the legitimate
rights and interests of victims of war as well as civilians."

Conflict Parties Should Comply with the Law
"It is hoped that all parties to the conflict will effectively respect and
comply with relevant provisions of the Convention as well as the basic
principles of international law," said the Chinese ambassador.

He said China has supported the proposal by the League of Arab States that a
conference of the High Contracting Parties to the Fourth Geneva Convention
be reconvened. 

Efforts to Realize Peace
Sha urged all sides to take effective steps to reopen negotiations and make
efforts to achieve a negotiated political settlement at an early date, thus
contributing to the realization of peace in the region.

The conference, attended by 122 participants, issued a declaration
reaffirming the applicability of the Fourth Geneva convention to the
occupied Palestinian territories, including East Jerusalem.

****


Russia Expects Essential Changes in Ties With NATO, Putin Says.

Russia expects qualitativechanges to happen in its relations with the North
Atlantic TreatyOrganization (NATO), as such a tendency will lead to
Russia'sactive participation in establishing the future system of
Europeansecurity, Russian President Vladimir Putin said here Wednesday.It is
under certain historical conditions that NATO emerged torebuff concrete
threats, the president said, adding that Today,the world situation and the
threats have changed, so NATO shouldrenew its priority tasks.

Russia   expects qualitativechanges to happen in its relations with the
North Atlantic TreatyOrganization (NATO), as such a tendency will lead to
Russia'sactive participation in establishing the future system of
Europeansecurity, Russian President Vladimir Putin said here Wednesday.It is
under certain historical conditions that NATO emerged torebuff concrete
threats, the president said, adding that Today,the world situation and the
threats have changed, so NATO shouldrenew its priority tasks.

Otherwise, ignoring the new realities will cause morecatastrophes such as
the September 11 terror attacks on the U.S.,Putin said.

"Qualitative changes in the relations between Russia and NATOwhich are being
discussed now might prove to be a good bridgeleading to Russia's
participation in the future European securitysystem," he said.

The president made the statement in an interview with Greeknews media in the
Kremlin on the eve of his official visit toGreece, which is to begin on
Thursday. 

The future of Europe lies on a united collective securitysystem capable of
fending off real-life threats, he said.If Russia can take part in solving
the European security issuesas a full-fledged member, there will be no need
for NATO'sexpansion, Putin said.

The expansion of the military bloc makes sense only to somecountries --
potential NATO members who need NATO in order toresolve their own internal
political problems. "However, I do notthink that NATO has been created for
this purpose," Putin said.Moscow is considering "the possibility of changing
the qualityof Russia-NATO relations from the 'nineteen plus one' to the
'twenty' format," he said.

****


Ford Faces Steep Loss.

Ford Motor said Wednesday that its fourth-quarter losses will be larger than
expected mainly because it is boosting credit loss reserves due to the
weakened U.S. economy.

Ford Motor said Wednesday that its fourth-quarter losses will be larger than
expected mainly because it is boosting credit loss reserves due to the
weakened U.S. economy.

The automaker said it expected to report a loss of 50 cents a share, before
one-time items, for the last three months of the year.

Previously, the company said it expected an improvement from its
third-quarter loss of 28 cents a share, although turning a profit would be
difficult. Analysts surveyed by Thomson Financial/First Call had been
expecting a loss of 14 cents a share for the quarter.

The primary reason for the lower forecast was increased credit loss reserves
reflecting weakened economic conditions, it said. In addition, Ford said
marketing and product costs remained at high levels.

The warning follows an announcement Monday that Ford will reduce retirement
and health benefits for 45,000 white-collar workers and lay off 630 people
to save about $300 million a year.

Ford has been plagued by eroding sales, questions about vehicle quality and
the ongoing Firestone tire crisis.

Ford announced in August it would cut 4,000 to 5,000 salaried positions by
the end of 2001. 

More cutbacks are expected when Ford details a broader restructuring plan
next month. 

****


Cuba Emphasizes Solidarity of ACP Group Countries.
 
Cuba's Interior Minister Ricardo Cabrisas, who left Havana Wednesday to
visit Brussels, Belgium, to attend the 74th Meeting of the Council of the
Asia-Caribbean-Pacific (ACP) Group, stressed the solidarity of this bloc
with the Caribbean island.


Cuba's Interior Minister Ricardo Cabrisas, who left Havana Wednesday to
visit Brussels, Belgium, to attend the 74th Meeting of the Council of the
Asia-Caribbean-Pacific (ACP) Group, stressed the solidarity of this bloc
with the Caribbean island.

Shortly before his departure, Cabrisas told the local press that his country
appreciated the support Cuba   received among ACP member nations, especially
prior to its admission into this group,which dates back to last December.

"This allowed us to work out common strategies in the face of global
processes," the Cuban senior official said.

Cabrisas affirmed the internal unity of the ACP bloc gives way to a single
voice before the situation of underdeveloped countries,which is "more and
more critical as a consequence of the gap that separates them from developed
nations." 

The Brussels meeting will examine and approve the report elaborated by the
ACP Council of Ministers at the previous session,early this year.

A preliminary evaluation of the outcome of the 4th Ministerial Meeting of
the World Trade Organization  (WTO) in Doha, Qatar, on November 9-13, is
also expected. 

ACP groups former European colonies in Asia, the Caribbean and the Pacific
Ocean, which obtain certain trade benefits from the 15-nation European Union
(EU). 

****



Iraq Is Able to Defend Itself: Saddam.

Iraqi President Saddam Husseinstressed on Wednesday that his country has the
ability to defenditself and Iraq's position remains firm despite the threat
of theU.S. military attacks.

Iraqi President Saddam Husseinstressed on Wednesday that his country has the
ability to defenditself and Iraq's position remains firm despite the threat
of theU.S. military attacks.

Saddam made the remarks during his meeting with visiting YemeniForeign
Minister Abu Bakr Abdullah Al-Kurbi, the official INA newsagency reported.

During the meeting, Al-Kurbi conveyed to Saddam an oral messageof Yemeni
President Ali Abdullah Saleh on bilateral relations, andpromised that Yemen
will exert continued efforts to lift the U.N.sanctions on Iraq, said the
agency. 

Yemen, which sided with Iraq in the 1991 Gulf War, has calledfor lifting the
sanctions imposed on Iraq for its 1990 invasion ofneighboring Kuwait .

Iraqi Vice President Taha Yassin Ramadan visited Yemen in Augustthis year
and signed a free trade agreement with Yemen to set up acommon market
between the two Arab countries.

The visit by the Yemeni foreign minister came amid latestthreats by U.S.
President George W. Bush, who hinted that the U.S.might target Iraq as part
of its ongoing war on terrorism."As for Mr. Saddam Hussein, he needs to let
inspectors back inhis country to show us that he is not developing weapons
of massdestruction," Bush said on November 26.

When asked about the consequences if Saddam rejects, Bushreplied: "He will
find out." 

The U.S. demand has been rejected by Iraq, which has barred U.N.arms
inspectors from returning since the U.S. and Britain launcheda four-day air
war against Baghdad in December 1998.









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