I think you guys see what I see. On October 9, 1998, GRNO announced that the Chinese visited Charleston. It announced that because of the importance of being able to demonstrate the plant. On November 6, 1998, GRNO announced the agreement with the Chinese, which included receipt of the first $100K. Compared to any other visitor GRNO had in the preceding several years, these guys not only came through with action instead of words, they did it with blinding speed. The news releases about the Chinese deal announced various predictions of future events. While their plate may seem full and the schedule extremely aggressive, so far one can get the impression that the Chinese do what must be done to meet schedules.
As further indication of what I suggest is Chinese culture of getting things done, there has been further indication on a national scale of action backing up orders from the national leadership. Back in the 1980s, money began to be cut off from the Peoples Liberation Army (PLA). The central government decided to let the PLA go into businesses to earn profits which would be used to improve the standard of living of the soldiers. Over the years, it turned out that the PLA got more and more into cutting corners to improve profitability by smuggling. The central government decided that it was losing control over the PLA and that the widespread smuggling was negating governmental policies of using tariffs to promote domestic businesses. Therefore, the government recently told the PLA to divest itself of such businesses and since then it has turned about 1/3 of those businesses over to local governments.
Deadlines set for divesting
CHINA'S government institutions, the military and the armed police must complete
divestment of their businesses by the end of this year, said Sheng Huaren, minister of the State
Economic and Trade Commission (SETC), yesterday at a press conference in Beijing.
In July, President Jiang Zemin ordered the military to wind up their business operations _ a
bold move seen as complementary to the crackdown on smuggling and corruption.
Government agencies should also gradually sever ties with firms they have established, senior
officials say.
"The involvement of government agencies can interfere with these agencies' own work, harm
their image and even lead to corruption," said Sheng.
Before yesterday's announcement, no official timetable had been set for the severance.
The deadline for government-affiliated firms is set at December 31 and for army and
police-owned companies December 15, Sheng said.
chinadaily.com.cn.net
However, the PLA griped that it wasn't the only entity in China guilty of operating the same businesses it regulates. The Communist Party agreed and now it has decided to also divest itself of businesses.
BEIJING, Nov. 29—China's ruling Communist Party ordered itself out of
business enterprises today, four months after telling the nation's army to
sever all ties with its far-flung business empire of dance halls and
pharmaceutical companies, the state-run media announced.
washingtonpost.com
China is also recognizing other problems and, rather than ignoring them, is warning it intends to do something about them.
China magazine warns of trust co debt catastrophe
04:36 a.m. Dec 01, 1998 Eastern
BEIJING, Dec 1 (Reuters) - China must take drastic
measures to resolve mounting foreign debts owed by its
international trust and investment companies (ITICs) to
ward off potential financial disaster, the Outlook
Weekly magazine said.
''There could be a catastrophe in China's financial,
economic and social systems if we fail to take timely
and resolute measures and fundamentally restructure
trust firms owned by provincial and city governments,''
said a signed article in the Nov 30 edition of the official
magazine.
infoseek.com:80/Content?arn=a0534LBY818reulb-19981201&qt=china&sv=IS&lk=noframes&col=NX&kt=A&ak=news1486
GRNO's news releases about the Chinese deal also mentioned a payment schedule of about $100K a month for buying preferred stock. GRNO needs the cash now, why is it being stretched out in installments? Maybe there is a clue in this article.
Full story
China slows payments as forex crackdown
hits
01:42 a.m. Nov 30, 1998 Eastern
By William Kazer
SHANGHAI, Nov 30 (Reuters) - China's clampdown
on capital flight, aimed at preserving foreign currency, is
slowing payments to overseas creditors and disrupting
trade, bankers and businessmen said on Monday.
It also was putting China at odds with international
payment practice and threatening to damage the
nation's reputation as a reliable trade partner,
disgruntled foreign businessmen said.
(snip)
Another snag is a new requirement that customs
officials confirm bank documents, meaning that
documents have to be physically taken or posted to
customs for examination. The rules, which are being
broadly interpreted, require confirmation for payment
on all import transactions of over $100,000.
infoseek.com:80/Content?arn=a0185LBY782reulb-19981130&qt=china&sv=IS&lk=noframes&col=NX&kt=A&ak=news1486
I think the schedule of payments has been set up to allow the government bureaucrats time to do what they must do to implement these new government regulations. Needless to say, it is not anticipated that these new rules will require years of delay as in other countries with characters acting out their own personal dog-in-the-manger agendas.
As far as management of government departments is concerned, the Chinese premier called for improved performance.
PREMIER Zhu Rongji yesterday called on central government departments to enhance the
construction of honest government and improve their functioning and work style to meet the
new situation resulting from the restructuring of bodies under the State Council.
chinadaily.com.cn.net
I think that money flowing from the Chinese to GRNO and the detailed announcements indicate the confidence felt by the Chinese and GRNO that there will be minimal interference by the Chinese government, again in contrast with other countries' governments.
Charles |
