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Strategies & Market Trends : HONG KONG -- Ignore unavailable to you. Want to Upgrade?

To: Tom who wrote (2718)	3/15/1999 10:06:00 AM
From: RealMuLan	Read Replies (2) \| Respond to of 2951

WRAPUP-Zhu Rongji combatative ahead of U.S. trip By Andrew Browne Monday March 15, 9:24 am Eastern Time BEIJING, March 15 (Reuters) - Premier Zhu Rongji scoffed on Monday at reports that China stole U.S. nuclear secrets and was massing missiles aimed at Taiwan, and he warned Washington against a Star Wars defence plan for Asia. In a combatative mood ahead of a scheduled visit to Washington next month, Zhu called allegations that China snooped for secrets at the U.S. Los Alamos weapons laboratory a ''tale from the Arabian Nights.'' And at a news conference broadcast live on national television at the end of an 11-day session of parliament, he also took a a jab at U.S. Secretary of State Madeleine Albright over human rights. Zhu recalled telling Albright this month in Beijing that he was ''struggling for China's democracy, freedom and human rights'' when she was still in high school. Zhu admitted he was prepared for a hostile reception in the United States, where anti-China sentiment is bubbling in Congress and the media, but he made clear he did not intend to duck a fight over sensitive political issues. Still, he dangled the prospect of major trade concessions to secure access for China to the World Trade Organisation and said China should open its markets to foreign telecommunications companies and banks. ''China will make the biggest concession within its abiltity,'' Zhu said. ''I am very hopeful that an agreement can be reached,'' providing concessions were made on both sides, he said, adding to speculation that an announcement on WTO may be made during his visit to Washington. Zhu also emphatically ruled out a devaluation of the Chinese currency, a prospects that still sends shivers through global financial markets. Zhu was bluntly dismissive of the nuclear theft charges, something he said was impossible given tough U.S. security and unnecessary because of the brilliance of Chinese scientists. ''The so-called problem of China stealing military secrets from the United States is like a tale from the Arabian Nights,'' Zhu said. The New York Times said last week that China used secrets stolen from the Los Alamos laboratories in New Mexico to produce small warheads that could be launched from a single missile at multiple targets. U.S. President Bill Clinton's administration is battling criticism from Republican Party lawmakers that it did not take swift enough action in response to the alleged theft. Zhu said China was the victim of an ''anti-China'' mood in Washington caused by a domestic political struggle. He dismissed news reports that China had increased its deployment of missiles facing Taiwan to around 600, although he did not deny that some missiles were in place. ''If I don't know about them, how do you know about them?'' he asked. But while he sought to ease apprehension in Taiwan, he repeated that Beijing would not rule out the use of force to reunify the island with the Chinese mainland. Taiwan believes Beijing is trying to cow it into submission with the threat of overwhelming rocket force. ''Our missiles are absolutely not aimed at our brothers and sisters in Taiwan, and we will would not easily use these missiles,'' Zhu said. ''We are hoping for a peaceful unification of China, but we can by no means abandon the use of force. If we do that, Taiwan will be split forever from the motherland.'' Zhu also warned the United States against developing a Theatre Missile Defence shield for Asia. ''We are against TMD,'' he said. ''We are especially firm in our opposition to including Taiwan under the TMD.'' ''TMD would constitute a violation against international agreements on missiles as well as an encroachment on China's sovereignty, territorial integrity and an interference in China's internal affairs,'' Zhu said. China believes a missile umbrella would only encourage independence sentiment in Taiwan. On the final day of the annual session of parliament, lawmakers issued a ringing endorsement of Zhu economic reforms and carved out a special role for the burgeoning private sector in the Communist constitution. Members of the National People's Congress adopted Zhu's state-of-the-nation report that insisted China would not retreat from tough reforms, including the closure of loss-making state enterprises, despite the pain of unemployment. Lawmakers also passed the national budget, but with a surprisingly large number of dissenting votes. The budget calls for record deficit spending to prime the economy for 7.0 percent growth. They also signalled their unhappiness about rising crime and corruption. Constitutional amendments elevated the private sector to an ''important component'' instead of just a ''complement'' to the socialist economy. Private businesses have been viewed with suspicion ever since the 1949 Communist revolution. Another amendment enshrined the rule of law in China. biz.yahoo.com