CHINA: The Chinese Premier, Mr Zhu Rongji, pledged yesterday to fight corruption, rural poverty and urban unemployment, which threaten the country's stability.
In a keynote speech at the opening session of the annual National People's Congress in Beijing, Mr Zhu attacked corrupt and wasteful bureaucrats, who "wined and dined" while farmers were crippled by local taxes and workers struggled to survive without social security benefits.
Beginning his final year in power, Mr Zhu also warned that membership of the World Trade Organisation carried significant challenges. He said "success or failure" of China's modernisation hinged on regulating China's developing and often chaotic market economy.
He threw his weight behind President Jiang Zemin's proposal to allow private entrepreneurs into the Communist Party for the first time to make it more relevant to modern China.
Mr Zhu said this year was important for the Communist Party and China. He told the 3,000 delegates in the Great Hall of the People:"China's accession to WTO benefits its reform and opening up and its economic development as a whole, but in the short term less competitive industries and enterprises face significant challenges."
The government, he said, needed to deliver growth of 7 per cent a year to create enough jobs to prevent social upheaval, as foreign competition following China's WTO entry threatened to put tens of millions out of work.
Mr Zhu said the key to growth this year was boosting domestic demand by raising the incomes of rural and urban poor.
Redundant workers and pensioners around the country are holding angry protests at inadequate welfare support, while farmers have attacked local officials for imposing random taxes.
Mr Zhu's speech was designed to address concerns that the party had forsaken farmers and workers in favour of the business elite.
On corruption, Mr Zhu attacked officials who use public funds for "extravagant entertainment and private travel abroad", which consumed large sums of money.
Mr Zhu called for direct trade, transport and postal links with Taiwan, reflecting Beijing's softer line on the island this year.
"We are working to further expand the cross-strait economic and cultural exchanges and develop cross-strait relations so as to establish the 'three direct links' as soon as possible," he said.
But Mr Zhu said that Taiwan must accept the "one China" principle as a precondition for official negotiations.
Mr Zhu did not repeat Beijing's threat to invade Taiwan if the island declared independence or dragged its feet on unification.
Taiwan last night welcomed Mr Zhu's overtures, but said there should not be any preconditions. "The resumption of dialogue should be under the principle of equality and fairness," a foreign ministry spokeswoman said.