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Summary of premier Wen's press Conf.


Premier Wen Jiabao Sunday pledged to steer the "big ship of the Chinese economy" on a smooth and fast course, while pushing ahead the country's political reform.

The premier also reiterated that China firmly opposes any attempt to separate Taiwan from the motherland and that the central government will do everything possible to back prosperity and stability in Hong Kong.

Speaking to the press shortly after the annual session of the National People's Congress which ended yesterday afternoon, Wen said the Chinese Government faces a test "no less severe" than the one posed by last year's SARS (severe acute respiratory syndrome) epidemic.

"The most important job of the government (this year) is to maintain a balanced, relatively-fast economic growth," Wen said. "We must stand up to new challenges and live up to the expectations of the people."

As the country's economy developed rapidly and demonstrated "more dynamism" last year, some deep-seated problems in the economic structure remained unsolved while new ones, such as excessive investment scale, decreasing grain output and an "obvious trend of rising prices," kept cropping up, the premier said.

These problems, plus the ever strained supply-demand relations in energy, transport and key raw materials, have put China's economy in a "critical juncture" and the government in a new serious test.

If the problems are properly handled, the "big ship of the Chinese economy" will move forward smoothly. If not, "setbacks" will be "inevitable," Wen said.

As macro-control has become more difficult over an economy where the market has an increasingly important say and whose doors are opened wider to the outside world, the government must sustain steady economic growth by solving the outstanding problems in a timely and effective fashion, he said.


Government reform
The premier said China's reform, from its very beginning, has combined economic changes with political restructuring.

"Without successful political restructuring, there would be no successful economic reform," he said.

Wen said that, since assuming the premiership last year, he has set three objectives for government institutional reform.

The first is to establish a scientific and democratic decision-making mechanism, including a group decision-making system and consultations with experts and professionals.

The second is to prompt the government to administrate the country in line with the law, build a clean and honest government, and pursue the appropriate combination of government's power and responsibility.

And the third goal is to put the government under scrutiny from every corner of society, including supervision from the National People's Congress and the Chinese People's Political Consultative Conference. Governments must hear and solicit opinions and views from the general public.


Peaceful reunification
In answering questions regarding Taiwan, the premier said we will never allow anyone to separate Taiwan from the motherland by any means, while striving for peaceful reunification with the utmost sincerity and greatest efforts.

He invoked two modern and contemporary Taiwan writers to talk about the appalling past of Taiwan and how the people aspired for reunification.

He said there is only one China in the world, and the Taiwan Straits can never sever the "blood relations" shared by Chinese both on the mainland and in Taiwan.

The mainland will strive to maintain stability across the Straits and push for direct mail service, trade, air and shipping services across the Straits, as well as cross-Straits economic, cultural and personnel exchanges, he said.

The mainland will strive for an early resumption of cross-Straits dialogue and negotiations under the one-China principle and for the eventual peaceful reunification of the motherland, he added.

The referendum scheduled for March 20 by the Taiwan authorities under the pretext of democracy poses a threat to stability across the Taiwan Straits, and challenges the universally acknowledged one-China principle, the premier said.

Wen said he appreciated the international opposition to the referendum, and the open statement on the one-China principle made by the international community, including the United States, is conducive to peace and stability across the Taiwan Straits.

"I hope the United States and other countries will honour their commitment to the one-China principle, and make due contributions to maintain stability across the Taiwan Straits and to China's peaceful reunification," Wen said.

At the same time he stressed that the Taiwan issue is internal to China, and will eventually be resolved by the Chinese people on their own.


Bright future for HK
The premier said the central government will do everything conducive to the prosperity and stability of Hong Kong.

"Our principle is whatever is conducive to HK's prosperity and stability, to the common development of Hong Kong and the inland, we will actively do it and give our full support to it," he said.

The central government holds an active attitude to the upcoming issuance of HK$20 billion of bonds (US$2.54 billion) in Hong Kong, he said.

Late last June, Wen attended a ceremony in Hong Kong where the agreement on the Mainland-Hong Kong Closer Economic Partnership Arrangement (CEPA) was signed.

The premier reiterated that the central government will unsparingly uphold the principles of "one country, two systems," "Hong Kong people governing Hong Kong" and a high degree of autonomy as well as the Basic Law of Hong Kong.

"I sincerely hope Hong Kong residents can take into consideration the broad situation of the long-term prosperity and stability as well as their own long-term and fundamental interests, unite and work together with firm determination for a better future of Hong Kong," he said.

The amendments to the Constitution, which were passed yesterday at the top legislature's annual session with overwhelming support, are a reflection of the will of the entire people, Wen said.

He highlighted the incorporation into the Constitution of the important thought of "Three Represents" along with Marxism-Leninism, Mao Zedong Thought and Deng Xiaoping Theory as the guiding ideology for the Party and the nation, saying it is of profound and far-reaching significance to China's development.

There are two ways to ensure the Constitution be strictly abided by, the premier said.

First, the Party leads the people in making the Constitution and leading officials of the Communist Party of China and all Party members should play an exemplary role in abiding by the Constitution and laws.

Second, the Constitution, as the fundamental law of the country, and other laws will not be changed just because of changes of State leaders or changes in the leaders' attention, Wen said.


Anti-corruption drive
The premier told the press conference that the government will take it as one of its most important tasks to further step up the fight against corruption, as it is a "life-or-death" issue for the destiny of the Communist Party of China and the Chinese Government.

"My colleagues and I are willing to be subject to supervision by the people," Wen stressed.

He said the government will take three steps to further carry out the anti-corruption drive in a bid to live up to the public's expectations.

These moves include installing educational and supervisory rules and regulations to prevent and fight corruption, resolutely punish corrupt officials, halt unethical practices in the public administration, and look after the interests of the people.

Wen also reminded people of late Chairman Mao Zedong's admonitions six decades ago not to follow the example of some peasant uprising leaders in Chinese history who became corrupt once they were in power.

"In the past 60 years, many comrades of our Party have stood the test. There have also been some who didn't and became the victims of 'sugar-coated bullets'," Wen said.


Stability 'overriding concerns'
The premier said unity and stability are his overriding concerns.

In response to a question about the incident in 1989, he said that an important reason for China's tremendous development in the past 15 years was the fact that the Communist Party of China (CPC) maintained China's unity and social and political stability.

"A severe political storm occurred in China in the late 1980s," he said. "At a crucial juncture bearing on the country's destiny, the CPC Central Committee, by relying on the whole Party and people of all ethnicities across the country, continued to uphold the policies laid down following the Third Plenary Session of the 11th CPC Central Committee held in late 1978 and successfully steered the general situation of China's reform and opening to the outside world, and safeguarded the cause of socialism with Chinese characteristics."

The premier went on to say that the next two decades will be a very crucial, strategic period for China's development. Unity and stability are his overriding issues, the premier said.


Banking reform
The premier soothed foreign analysts' worries over China's ongoing reforms at the Bank of China and China Construction Bank, which were selected last year for pilot joint-stock restructuring and given a combined capital injection of US$45 billion.

The central government is determined to secure the reform process by setting up clear targets and pledging efforts to prevent moral hazards, Wen said.

The China Banking Regulatory Commission, the country's banking watchdog, has set targets using seven benchmark indicators such as the net return on equity, for the pilot banks to meet before 2007.



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