Identifier
Created
Classification
Origin
08CHENGDU175
2008-08-07 05:42:00
SECRET
Consulate Chengdu
Cable title:  

TIBETAN PREFECTURE IN SOUTHWEST CHINA -- HIGH SUBSIDIES

Tags:  PGOV ECON PHUM CH 
pdf how-to read a cable
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RUEHCN/AMCONSUL CHENGDU 3533
S E C R E T SECTION 01 OF 09 CHENGDU 000175 

SIPDIS

DEPT FOR EAP/CM AND INR

E.O. 12958: DECL: 8/7/2033
TAGS: PGOV ECON PHUM CH
SUBJECT: TIBETAN PREFECTURE IN SOUTHWEST CHINA -- HIGH SUBSIDIES
DON'T APPARENTLY BUY HAPPINESS

REF: A. CHENGDU 135

B. CHENGDU 13

C. 07 CHENGDU 220

D. 07 CHENGDU 56

CLASSIFIED BY: James A. Boughner, Consul General, U.S. Consulate
General, Chengdu.
REASON: 1.4 (b),(d)



S E C R E T SECTION 01 OF 09 CHENGDU 000175

SIPDIS

DEPT FOR EAP/CM AND INR

E.O. 12958: DECL: 8/7/2033
TAGS: PGOV ECON PHUM CH
SUBJECT: TIBETAN PREFECTURE IN SOUTHWEST CHINA -- HIGH SUBSIDIES
DON'T APPARENTLY BUY HAPPINESS

REF: A. CHENGDU 135

B. CHENGDU 13

C. 07 CHENGDU 220

D. 07 CHENGDU 56

CLASSIFIED BY: James A. Boughner, Consul General, U.S. Consulate
General, Chengdu.
REASON: 1.4 (b),(d)




1. (S) Summary: A series of internal government documents
recently obtained by post provide an unusually detailed look
into the internal workings of the poor and predominantly ethnic
Tibetan prefecture of Ganzi in southwest China's Sichuan
Province. Massive subsidies are being invested in
infrastructure and other development projects to try to raise
people out of poverty and so, in theory, ameliorate ethnic
conflict. The focus of the documents, however, also illustrates
the apparent continued failure by government authorities to
recognize that possible material gains by what are perceived as
being "ungrateful" Tibetans will not alone overcome grievances
felt after years of political and religious repression. End
Summary.


2. (S) Post is currently in the process of preparing summary
translations of internal documents related to the holding of the
first session of the Tenth People's Congress of the Ganzi
Tibetan Autonomous Prefecture (TAP) in April 2008 that were
given us by a contact. In this and upcoming reports, we will
look at how local authorities review and critique efforts to
provide better public services and improve living standards in
Ganzi. The documents we obtained include:

-- Secrecy Guidelines to be observed during the People's
Congress.
-- Government Work Report.
-- Ganzi TAP Intermediate Level People's Court Work Report.
-- Ganzi TAP People's Procuratorate Work Report.
-- Ganzi TAP Finance Department Work Report on Execution of the
2007 Budget and Draft 2008 Budget.
-- Execution of the Ganzi TAP 2007 Civilian Economy and Society
Development Plan and Draft 2008 Plan.
-- Ganzi TAP Sichuan Province More Prosperous, Calmer and
Healthier People Project Program (2007 - 2015) Draft.

Protests and Repression
--------------


3. (C) Conflicts between ethnic Tibetans and government and
Party leaders in Ganzi began to intensify over a year ago --

well before the outbreak of unrest in Lhasa in March 2008 that
quickly spread to Ganzi other areas -- as local authorities
strived to implement "patriotic education" throughout the
prefecture (ref a). In addition, ongoing land disputes over
hydropower development and grasslands, exploitation of lucrative
caterpillar fungus, as well as other social and economic factors
added to the overall atmosphere of ethnic tension and ill will
(ref b). Ganzi's ongoing "patriotic education" campaign,
modeled on earlier campaigns in the Tibetan Autonomous Region
(TAR),intensified after a crowd at the August 1, 2007 horse
race festival in Litang in the west of the prefecture (ref c)
called for the return of the Dalai Lama to China. During the
campaign, monks have been forced to sign loyalty pledges to the
Party and denounce the Dalai Lama. Some comply while others
protest or flee their monasteries.

Background
--------------


4. (U) Ganzi Tibetan Autonomous Prefecture in western Sichuan
Province has a population (2007) of 955,000 or just over 1
percent of Sichuan Province's 87 million people. According to
the March 2008 Ganzi TAP Statistical Bulletin (see
),the ethnic breakdown of
Ganzi is 753,000 Tibetans (87 percent),169,000 Han (17 percent)
and 27,000 Yi (2 percent). Eighty-three percent of the
population are peasants or live in the countryside. Growth has
been concentrated in the secondary (industrial) sector which
officially rose 21 percent during 2007, compared with 3.7
percent in the primary (agriculture and mining) and 5.3 percent

CHENGDU 00000175 002 OF 009


in the tertiary (service) sector. Ganzi's overall GDP grew by
13.5 percent in 2007 (Note: Sichuan province inflation, led by
rising food prices, was about 6 percent in 2007),making 2007
the seventh consecutive year of double digit GDP growth for
Ganzi. Fixed investment in Ganzi totaled 9.9 billion RMB (USD
1.5 billion) during 2007, up 25 percent from 2006.


5. (U) Over 10 percent of China's Tibetans live in Ganzi
Prefecture, situated in the Kham region of traditional
ethnographic Tibet that has historically provided many Tibetan
merchants and warriors. Ganzi lies between the Tibetan
Autonomous Region, home to just under half of the ethnic
Tibetans in China, and the other predominantly Tibetan
prefecture in Sichuan Province, the Aba Tibetan Qiang Autonomous
Prefecture. Aba TQAP (pop: 874,000) has several hundred
thousand Tibetans concentrated in the northern half of the
prefecture that was less seriously affected by the May 2008
Sichuan earthquake. (Aba 2007 statistical bulletin at
).

Development Plans
--------------


6. (C) Despite the material gains some ethnic Tibetans in Ganzi
have seen from government spending on various projects and
subsidies, repression of their religion and their monks, the
traditional educators and moral leaders of their society, and
insults to their spiritual leader the Dalai Lama, infuriates
them. Resistance to "patriotic education" has occurred not only
in the monasteries but in also in the government and Communist
Party, as an October 2007 speech on "patriotic education" by
Ganzi Party Secretary Liu Daoping (ref d) made clear. Showing
ethnic Tibetans in China the benefits of being Chinese by trying
to lift them out of poverty through massive subsidies and
infrastructure projects has long been an important strategy in
the TAR and to a lesser extent in Sichuan's two majority Tibetan
prefectures, Ganzi and Aba. The negative public reaction of
many Han Chinese to recent protests often appears to be anger at
the "ungratefulness" of Tibetans for the massive subsidies
funneled to their areas.

Deep Poverty
--------------


7. (S) According to the internal report, "Ganzi TAP, Sichuan
Province More Prosperous, Calmer and Healthier People Project
(2007 - 2010) Draft" presented at the April 2008 Ganzi People's
Congress, "Ganzi TAP is a region with among the deepest, most
widespread and largest number of poor people in all of China.
Among the 782,200 rural population in 2006, 415,500 are poor, or
53.12 percent. Although the total population of Ganzi TAP is
just 1.1 percent of Sichuan's population, the prefecture has
16.7 percent of the province's population living in abject
poverty" and 3.1 percent living in relative poverty -- three to
ten times the provincial average." Another part of the report
notes, "State policies and investments are not suitable for the
actual situation of Ganzi TAP, so most public service investment
still depends upon the very weak resources of local government.
~ Under the present system health organizations depend upon
local government for subsidies which these governments are
unable to provide." This report will be examined more closely
in an upcoming Congen cable.

Secrecy Rules at Ganzi Tenth People's Congress
-------------- --------------


8. (S) Begin text Congen summary translation of Secrecy
Guidelines:

Secrecy is maintained at this meeting of the Ganzi Prefecture
People's Congress according to the Secrecy Law (baomifa) in
order to ensure that the meeting is conducted properly. All
documents relating to state secrets, internal materials, and
working notes must be kept in the meeting area at all times.
They may not be taken with you when you take part in social
occasions or go to places of entertainment. Any materials that
will be released to the outside must be approved by the
secretary general or deputy secretary general of the conference
before release. No documents, leaflets, photographs or other
materials may be released without getting this approval. The

CHENGDU 00000175 003 OF 009


News and Publishing Secrecy Regulations (xinwen chuban baomi
guiding) must be strictly adhered to. People attending the
meeting may not discuss secret matters by telephone, radio
communications, unencrypted telegrams or ordinary mail so that
internal matters discussed at the meeting will not be disclosed.
If you discover that meeting documents or materials have been
lost, immediately inform the secretariat. Deliberate loss or
disclosure will be prosecuted according to the Secrecy Law.

End Text.


9. (S) Begin text of Congen summary translation of TAP
Government Work Report:

Ganzi Prefecture People's Government Chairman Li Changping:
Government Work Report of April 13, 2008

Part One Review of Ganzi TAP 2003 - 2007

Government Subsidies Quadruple During 2003 - 2007
-------------- --------------

Ganzi Prefecture production rose by an average of 13.7 percent
annually during 2003 - 2007 to 7.887 billion RMB (USD 1.1
billion). Prefecture government income was 1.084 billion RMB
including 665 million RMB for local government. This is an
increase of 57.6 percent over 2006 and five times the level of

2003. Social fixed investment rose by 24.71 percent during 2007
and is 3.1 times the level of 2003. Deposits at financial
institutions rose 17.9 percent to 10.625 billion RMB in 2007,
twice the level of 2003.

A rapid rise in industrial output boosted the relative size of
the second (industry) sector compared with the primary
(agriculture and mining) and tertiary (service) sector, the
relative sized of the sectors changing from 24.1:27.5:48.4 in
2003 to 25.1:36.4:38.5 in 2007. During the period 2003 - 2007,
the hydroelectric and mining sectors increased production by 34
percent annually to 5 times the 2003 level. In 2007, Ganzi
welcomed 3.26 million Chinese and foreign tourists and earned
2.3 billion RMB from the tourism. Under the program of
integrated harmonious development, spending in support of
agriculture rose 10 percent annually to 1.87 billion RMB; on
social security by 21 percent annually; on public health by 28
percent annually to 805 million RMB. County level government
enjoyed 71 percent of all the fiscal income in the prefecture.
Private enterprise income grew 15 percent in 2007 to 2.837
billion RMB.

Transportation infrastructure is improving rapidly. Test
flights from the new Kangding airport were successful. A
highway between Kangding and Ya'an has been accepted as part of
the Sichuan province highway plan. A route within Ganzi has
been established for the planned Tibet - Sichuan highway.
Construction of the Jiulong 500 kilovolt power line was
completed. Five hundred kilovolt transformer stations will be
built in Kangding and Danba.

The urbanization rate in Ganzi Prefecture rose by three
percentage points from 2003 to 18.3 percent in 2007. Road and
telecommunications infrastructure growth has accelerated. In
rural areas, 9000 methane gas pools were built, 6000 solar ovens
and 5000 biomass ovens were installed. Electric power reached
an additional 16,364 households during 2003 - 2007 and drinking
water supply problems for 66,500 livestock were solved.

Education
--------------

During 2003 - 2007, 460 million RMB were invested to eliminate
school fees, improve the educational system and help poor
students who can't afford schooling beyond eight years of
compulsory education. Dormitories for students who must live at
a faraway school were built. By 2007, 432 schools in Ganzi had
dormitories and accommodated 75,000 students. Fifteen counties
implemented nine years of compulsory education with a coverage
rate of 85 percent. Ninety-nine percent of school age children
are in school. Ganzi Prefecture now has 140,000 students in
elementary, middle and high schools along with 300 children from
peasant or herder families who are studying in Ganzi High School

CHENGDU 00000175 004 OF 009


classes in Chengdu, Deyang and Mianyang. Children withdrawn
from monastery (schools) are being enrolled in public schools
for compulsory education.

Rural and Urban Incomes
--------------

Vocational training is being strengthened to reduce
unemployment. Registered urban unemployment is 4.6 percent.
During 2003 - 2007, a variety of subsidies and payments are
provided including, to compensate farmers for returning cropland
to forestland (655 million RMB total over five years); grain
subsidy for herders who took livestock off grassland to allow it
to recover (56.92 million RMB); and subsidies for people obeying
family planning regulations at 134 million RMB. In 2007, urban
disposable income in Ganzi Prefecture was 10,178 RMB, an
increase of 26.7 percent over 2006 and 58 percent higher than in

2003. Average 2007 income for peasants and herders was 1692
RMB, 210 RMB and 14 percent higher than in 2006 and 64 percent
higher than in 2003.

The number of people covered under insurance plans for the five
hazards (wuxian) -- old age, unemployment, workplace injury,
giving birth, and medical care -- increased by 12 percent to
204,000.

Health and Life Expectancy
--------------

Over 2004 - 2007, 290 million RMB was spent on building
infrastructure to prevent and control epidemic disease. Sixty
five medical units were established at the county level or
above, 270 at the township level and 500 at the village level.
There are now four medical technicians for every 1000 people and
3.42 sick beds. Maternal and infant mortality declined sharply.
Population and family planning work was strengthened. In 2007,
the natural rate of increase of the Ganzi Tibetan Autonomous
Prefecture population was 6.36 per thousand and is steady at a
low level. The average life expectancy in Ganzi TAP is 67.18
years.

Since Ganzi TAP implemented the public roads to every rural
district policy, the length of prefecture public roads has
reached 12,945 kilometers. Roads to reach rural districts
include built 234 kilometers of paved roads and 2340 kilometers
of roads to reach villages.

Ganzi TAP has contributed to work on military recruiting and
finding employment for retired military members. Ganzi TAP also
strengthen its civilian military forces (minbing) emergency
response capacity which along with the military stationed in
Ganzi TAP and the PAP make great contributions to economic
development and social stability.

Ganzi TAP during the past four years has been fully implementing
nationalities and religion policies. This includes the "two
uniteds" (we fight side-by-side and we prosper together --
liangge gongtong) and the "three no separations" sange bu likai
(Congen Note: in a note at the end of the speech text, this
slogan is explained as "the Han nationality cannot be separated
from the minority people, the minority people cannot be
separated from the Han people, and the various minority people
cannot be separated one from another"). Religious work
concentrates on the four words -- strengthening propaganda work
on religious regulations and strengthening management of
religious venues, religious activities, and religious personnel
and to solve problems in the religious area such as minimum
income, repair of religious sites, and work subsidies.

Culture
--------------

Cultural work: Minorities folk art is developing rapidly in
literature, music, dance, photography and painting. Sculptures
of the (Tibetan king) Gesar and (traditional Tibetan) Tanka
illustrations have been included in the national Olympic Culture
project. The construction of New China bookstores, libraries,
and cultural centers has accelerated. Television broadcasts
reach 84 percent of the population of Ganzi TAP. Monitoring of
places of entertainment and establishments providing internet

CHENGDU 00000175 005 OF 009


access has been strengthened. Controls on publishing have been
strengthened and seizures of illegal publications and
audiovisual products have increased. Culture-related business
incomes rose by 27 percent to 161 million RMB during 2007.

Fostering democracy: Over the past four years, the government
has considered 1132 proposals from the Ganzi People's Congress
and its Standing Committee. Village autonomy and openness in
village affairs has been promoted. The promotion of openness in
factory affairs (chanwu gongkai) has helped protect the legal
rights of workers.

Government Functions
--------------

Improvement of government functions: the newly revised
"Government Work Regulations" aim at improving democratic
decision making, institutionalize the use of expert advice for
making important decisions, government legal advisors, and
hearings. This is intended to make the sunlight shine on
government work, promote openness in government work and
openness in office work. Separations are being implemented
between government and business, between government and capital,
and between government and market intermediary organizations.
With reforms in the system for administrative permissions, the
number of projects involving administrative permissions fell
during 2007 from 915 to 256. Re-evaluations of 104 projects
granted awards or considered to have achieved a higher level
reached standards resulted in the cancellation of 90 awards or
ratings and the retention of 14 projects.

The past four years have seen much liberation of thinking and
more reform and opening. These have been four years of
administration done according to the law and of strengthening
democracy in administration. ~ These four years of breakthroughs
have taught us that we still have many problems. Old ideas, old
ways of thinking and old customs still hinder our development.
The barriers to reform deep in our system and ways of doing
things have not yet been broken down. Our infrastructure is
still backward and there are many bottlenecks that need to be
broken. Peasants still have few sources of income and many of
them are poor.

Part Two: Suggestions for the Work of Ganzi Prefecture
-------------- --------------
--------------

The Ganzi TAP must conscientiously implement the spirit of the
Seventeenth Congress of the Communist Party of China, of the
fourth session of the seventh Sichuan Provincial Party
Committee, and of the fifth session of the Nine Ganzi TAP
Communist Party Committee. We need to fully bring into practice
the scientific view of development, continue to liberate our
thinking, uphold reform and opening, in order to build the first
ecology-economy prefecture, to implement that the "well off and
wealthy people" project, strongly push for the transformation of
our mode of economic development, foster ecological agriculture,
ecological energy industry, a superior mining industry,
eco-tourism, eco-pharmaceuticals, and minority cultural
industries.

The basic principles are development, the livelihood of the
people, ecology, and harmony. Our goal is to boost the economic
product of Ganzi TAP by 14 percent annually through 2011 to
reach 13.5 billion RMB (USD 2 billion). Local government
budgets will climb by 12 percent annually to 1.36 billion RMB.
The value of retail consumption will grow by 12.3 percent
annually to 3.65 billion RMB. Peasant income will grow by 12.2
percent annually to an average of 2680 RMB and urban income will
grow by 7.3 percent annually to 13,500 RMB.

Development of Ganzi TAP natural resources aims at reaching 4
million kilowatts of installed hydroelectric power generating
capacity by 2011; mineral ore production of over 4 million tons;
and over 5.4 million tourist visits. The integration of the city
and the countryside aims at settling herders and diversifying
their employment opportunities.

In order to ensure progress, we need to stress innovation in our
reforms, encourage outside investment, stress macro controls,

CHENGDU 00000175 006 OF 009


keep prices stable, optimize the system of investment, conserve
energy and reduce emissions, and strictly manage land resources.

We need to ensure social stability, democracy, and rule by law.
We need to oppose national splittism. We need to hold high the
banners of social stability, protection of socialist legality,
and the basic rights of the great majority of the people. We
need to firmly oppose splittism, protect the unity of the
country and of the nationalities.


I. Key Work for 2008

Our goals for this year, according to the request of the fifth
session of the Ninth Ganzi TAP Party Committee, are to increase
the Prefecture's economic product by 16 percent, social fixed
investment by 30 percent, local finance ordinary budgets by 30
percent, social retail consumption by 14.2 percent. The value
of the industrial output of larger companies should increase by
over 25 percent. The disposable income of urban residents
should increase by over 10 percent. Peasant income should
increase by 200 RMB or more. Registered urban unemployment
should be held to under 4.5 percent and the natural increase in
the population held to 7.5 per thousand or less. Agricultural
land should be held at 58,100 hectares and basic farmland at
58,900 hectares. The energy required per 10,000 RMB of
production should decline by 4 percent. Consumer prices, safe
production indices and pollution emissions should be controlled
within the limits set by Sichuan Province.

Ecological agriculture: Science and technology can further
improve production through better seeds, techniques and
education of farmers. Our goal is for use of good seeds and
methods to be 80 percent. Demonstration projects will lead the
way for improved varieties of wheat and other crops. Big
irrigations projects are under way including dams in Qingde and
Huding counties.

Ecological energy. As part of the "Send Sichuan Power to Other
Provinces" project, boost installed hydroelectric capacity to
700,000 kilowatts in 2008 and begin building 3.8 million
kilowatts of additional capacity and construct 500 kilovolt
power transmission lines.

Mineral industry: Revise the section in the Ganzi TAP Eleventh
Five Year Program regarding the mineral development as well as
the "Ganzi Prefecture Mineral Production and Resources
Management Regulations." Accelerate the development of ferrous
metal smelting capacity and boost the value of minerals mined,
selected, and smelted from 300 to 500 million RMB.

Ecotourism: Draft the "Ganzi Kangbei Tourist Area Construction
Plan" based on the "Sichuan Shangri-La Ecotourism Area Overall
Development Program" and the "Two Hour Circumnavigation Gongga
Mountain Tourist Route Development Program". We will strive to
increase the number of star level accommodations in this area by
at least 50 percent. The ultimate goal is to welcome 3.5
million tourists to this region annually and earn a tourism
income of 2.45 billion RMB.

Minorities cultural industry: Strive to achieve prosperity for
the minorities' cultural industry, do market promotion for the
"thousand tanka (Tibetan painting) cultural promotion project",
and get the Danba group of old carvings listed as a world
heritage site. Promote cultural exchanges with outside culture,
exhibitions, cultural entertainment and markets.

Ecological pharmaceuticals. Strengthen the central management
of caterpillar fungus (dongchong xiaocao),accelerate its
transformation into an industry and the development of
facilities to grow it in the wild and build centers for
cultivating caterpillar fungus. Promote the cultivation of
materia medica for both Chinese and Tibetan medicine. Research
and develop standard doses for Tibetan traditional
pharmaceuticals, establish a database and screen Chinese and
Tibetan medicines according to their characteristics.

II. Accelerate Infrastructure Development

Transportation: Ensure the proper operation of the Kangding
Airport, which opened in May 2008. Accelerate the construction

CHENGDU 00000175 007 OF 009


of routes G318 and S211 and of the Que'er Mountain tunnel.
Begin construction of 500 km of rural district (xiang) level
roads and 2500 km of village access roads. For certain road
segments use a variety of financing methods including private,
joint, cooperative and built-operate-transfer so that roads can
be built faster and more funding can be made available for road
construction projects.

Urban and rural construction: Publicize, implement and enforce
the "City and Countryside Planning Law" (Chengxiang guihua fa).
Ensure that modern housing retains a local ethnic flavor so that
the modern can be organically combined with traditional culture.
Study and solve the problem of supply water to cities and towns
in the winter. Implement the "Calming Project" (anxin
gongcheng). (Congen note: a note at end of speech reads "a new
housing reform and construction project intended to solve the
housing problems in Ganzi TAP of government and Party cadres and
employees."). Strive to achieve a Ganzi TAP urbanization rate
of 18.90 percent.

Ecological construction: Create an ecological culture, return
some cultivated land to forest, reduce grazing to restore the
grassland, protect marshland, and wild plants and animals.
Complete the creation of 70,000 mu of planted forestland,
closing mountain land and promoting the return of the forest in
another 460,000 mu, ending grazing and restoring grassland on 6
million mu, exterminating rats and other pests on 4 million mu
of land. Promote projects implementing the "Qinghai Tibet
Plateau Southeast Green Protection Area Program" and the "Ganzi
TAP Desertification Prevention and Alleviation Program" and
wetlands protection.

Building information infrastructure: Improve the coverage and
quality of cell telephone and internet network and telephone
service, especially in tourist areas and key industrial and
mining areas. Improve the telephone coverage of administrative
villages. Improve television broadcast coverage for villages as
well as the quality of translations into the Kham dialect of
Tibetan.

III. Continue Deepening Reform and Opening

Strengthen reforms: Liberating our thinking, renovating
concepts and reforming markets will means adjustments in
resources, industry, products and projects are managed. We need
to optimize our economic structure, change our mode of
development, and uses energy conservation and reducing
emissions are criteria for shutting down or renovating
factories. Land use and leases should be handled on a business
basis and the management of state assets strengthened. Reform
the system for managing road upkeep to solve the problem of "If
no one is responsible for road upkeep, we can't keep our roads
in good condition." Strive to solve the problem that minority
business has difficulty attracting investment capital, strive to
attract 7.5 billion RMB of capital. Increase opening and reform
and seek to attract foreign investment, especially in the areas
of transforming rural agriculture into a business (nongye
chanyehua),ecotourism, eco-pharmaceuticals, and minority
culture. Seek more international exchanges and actively seek
more government-to-government international assistance projects.
Strengthen economic and technical cooperation with adjacent
developed areas. Do more propaganda/publicity work to build the
image of Ganzi TAP as an open place.

IV. Support Social Development

Making education a priority: Implement the policy of the Party
and Government on exempting poor students from fees for books
and other miscellaneous items and services and ensure funding
for rural schools, and promote the development of compulsory
education. Strengthen the educational system and promote
bilingual education. Regulate private schools and standardize
the management of schools with dormitories. Increase the
proportion of minor students who have been withdrawn from the
monasteries who are enrolled in school. The people's government
should run schools that the people are satisfied with.

Health: Build the capacity of the public health system to
handle emergencies and to prevent the outbreak of serious
epidemic diseases. Promote the development of the public health

CHENGDU 00000175 008 OF 009


system and especially of county and Prefectural level hospitals.
Strive to achieve universal coverage of new village cooperative
health insurance system. Promote therapeutic help to groups
with special health problems. Promote the "Year of Child and
Maternal Health" and bring into full play the role of the Red
Cross.

Culture: Promote the publishing industry, museums and village
book rooms.

Expand employment: Implement the "Labor Contract Law" and the
"Employment Promotion Law." Pay special attention to households
that have no one employed and to landless peasants. Help recent
middle and high school graduates and laid off workers to become
self-employed. The People's Government must constantly strive
to protect the legal rights of workers.

Poverty alleviation: Implement poverty alleviation projects in
68 villages, arrange for 4200 people in 755 households to move
to other areas to improve their incomes, improve village roads,
make drinking water safer, and improve internet, roads and
bridges. Strive to help 34,000 people escape abject poverty
and achieve a decent standard of living (wenbao).

Improve social security: Improve the labor insurance system,
the coverage of social insurance. Make a success of the Jiulong
County farmer and herder retirement insurance experiment. Make
a success of the national level experimental sites for urban and
rural health insurance. Ensure that all the 185,500 people
living in abject poverty in Ganzi Prefecture are covered by the
village guaranteed minimum income. Ensure that there people who
may be moving between city and countryside do get all the
guaranteed income coming to them despite their movements.
Gradually increase the level of village guarantees and pensions
and the special problems of the elderly, handicapped, people
taking care of children and disaster victims.

Strengthen market oversight: Improve the Prefectural, county
and rural district distribution networks to end the problems
peasants and herders have in buying and selling. Strengthen
control of prices, food products, pharmaceuticals, and product
management and eliminate counterfeiting so as to protect
consumer safety. Implement grain supports and pig livestock
production to avoid abnormal price swings in important food
products.

Population and other work: Promote the "Five Big Projects" in
family planning (Congen note: in a note at the end of the
speech handout, this is explained as "the villager autonomy
project; the advanced county family planning services project;
the family planning incentives oriented project; fertility
culture development project; and the informatization development
management project."). Implement the child and maternal
development charter in order to protect the legitimate rights of
women and children.


V. Striving to Build a Harmonious Ganzi

Strengthen the control of society and the effectiveness of
government at handling civil disputes. Strengthen control of
migrants, civil organizations, foreign NGOs, and of special
trades (including hotels, printers, pawnshops). Improve the
handling of petitioners, of administrative remedies to correct
wrongs, and make it easier for people to present complaints.
Investigate disputes and resolve them. Solve problems that
people are complaining about include land takings, tearing down
of housing, resettlement, reforms, and petitions. Solve threats
to stability at the grassroots when they are just budding so as
to prevent mass incidents. Consolidate the results of patriotic
education, strengthen national security work, and combat enemy
forces and elements as they try to infiltrate and cause trouble.

Strengthen Efforts to Ensure Safe Production. Publicize and
implement the "The Emergency Response Law" (tufa shijian
yingdui fa),improve basic infrastructure, strengthen inspection
to avoid accidents. Strictly enforce safety codes on new
construction and on the renovation and expansion of existing
buildings.

Stress national defense: Support the development of the national

CHENGDU 00000175 009 OF 009


defense, and the armed forces, reserves and civil forces
(minbing).

Do nationalities and religious work well: Take the two uniteds
(united we fight, united we prosper). We need to develop equal
and cooperative relationships and harmonious socialist
relationships with and among the national minorities. We must
be very explicit in our opposition to national splittism. We
must thoroughly implement the Communist Party's nationalities
and religion general guidelines and measures to ensure that the
government manages religious affairs according to law.

VI. Improve Government Work

People in government work must be held accountable for their
actions. Honesty and frugality are important. We must that
there is adequate oversight over and constraints on the exercise
of power and root out corruption in government. We need to
constantly look for how to improve the organization of
government and constantly learn how to make it work better. We
need to increase public participation in decision-making,
solicit expert advice, legal advice, and increase openness in
government.

End text of summary translation.
BOUGHNER