Jiang rules OK, says National People's Congress

THE officially approved jargon for the annual National People's Congress session which began in Beijing on Saturday is that the…

THE officially approved jargon for the annual National People's Congress session which began in Beijing on Saturday is that the leadership of China is now "in the hands of the (Communist Party) Central Committee" with "Jiang Zemin at its core".

Most significantly, in the wake of the death of paramount leader Deng Xiaoping, this phrase was used by one of President Jiang's chief rivals for power at the opening session of the Chinese parliament under a giant red star in the Great Hall of the People.

The congress chairman, Mr Qiao Shi, had spoken five times, since Deng's death on February," 19th without mentioning Mr Jiang, who holds the formal titles of president, party general secretary and head of the military committee.

On Saturday, however, the 72 year old congress chairman publicly backed the leadership of the president, telling 2,808 congress delegates "We should turn grief into strength, carry forward Deng. Xiaoping's proposals and more closely unite round the Central Committee with Jiang Zemin at its core.

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Mr Jiang (70), also received important military backing from Gen Liu Huaqing, vice chairman of the Central Military Commission and long considered a critic of Mr Jiang. The general used the same rallying call to urge support for the president, who he said was arming the People's Army with correct ideas and high technology.

The annual state of the nation speech was delivered by Mr Jiang's close ally, Premier Li Peng. It was noteworthy however for its omission of ritual tribute to the founder of the state, Chairman Mao Zedong.

In a lengthy address to the congress, Mr Li instead fulsomely praised Deng, who spent 18 years countering Mao's policies. He claimed a golden performance for the Chinese economy during the last 12 months and set the 1997," target for growth at a conservative 8 per cent, compared to an official 9.7 per cent expansion last year.

Evidently worried about the potential for unrest from rising prices, Mr Li also promised inflation would undercut the 1996 figure of 6.1 percent.

Looming over the session is concern about the consequences of future unemployment as China, tackles long delayed reform of the near bankrupt state sector. Mr Li urged a cautious advance on reforms, reflecting the need for stability in the months after the passing of 92 year old Deng and in the run up to the take over of" Hong Kong on July 1st.

"Development and reform of state enterprises is a major economic problem that relates to the nation's economic development and is also a major political problem that relates to the fate of the socialist system," he said.

The Chinese people are now waiting to see what steps Mr Jiang will take to tackle the problems of reform, which have left millions without work or the benefits they had come to expect in state industries.

With the advance of privatisation, the power of party secretaries in work units is being eroded across the country. In big cities, 100 million people still work in state enterprises and enjoy benefits such as free housing. They could become a source of instability as the big concerns lose the ability to sustain employment at a high level or are privatised.

Mr Li also pledged to extend the one child policy to the countryside where it is frequently ignored by families seeking a son.