Extracts.

Iraq Ratifies Free Trade Agreement with Egypt
Iraq on Wednesday ratified the free trade agreement signed with Egypt on
January 18, the official Iraqi News Agency (INA) reported.
The decision was made at a meeting of the Iraqi Revolutionary Command
Council, Iraq's supreme power organization, the INA said.
A short announcement following the meeting, which was chaired by President
Saddam Hussein, said that the free trade agreement will help promote "Arab
economic unity and mutual prosperity."
Iraqi Vice President Taha Yassin Ramadan paid a visit to Cairo on January 16
and signed the agreement with Egyptian Prime Minister Atef Obeid two days
later on establishing the free trade zone between the two Arab countries.
Iraq has also signed similar agreements with Syria and Tunisia.
The free trade agreement is the first step towards the establishment of an
Arab common market. But it is largely symbolic at the present stage because
its implementation will only begin after the U.N. sanctions against Iraq are
removed. 
Iraq has been under the decade-old, sweeping United Nations sanctions
following its invasion of Kuwait in 1990.
Egypt and Iraq, who broke off ties in 1991 and had since operated interests
sections in the Indian embassies in each other's capital, effectively
resumed diplomatic relations in November at the level of charge
d'affaires.?? 
The two countries have improved trade ties since the implementation of a
memorandum of understanding on trade in 1996 when the UN launched the
oil-for-food program, which allows Iraq to sell oil to buy food, medicine
and other necessities.??
Egypt has become Iraq's largest trade partner in the Arab world and the
fifth largest in the world, after Russia, China, France and India.

****

New Situations, New Tasks, and New Work Styles: Commentary
With the beginning of the new century, we face new situations, shoulder new
tasks and need a new style of work.

The current international situation is developing in the direction favorable
to us. Peace and development remain the main themes of the times, the world
polarization tendency continues to develop and the international trend, as a
whole, continues to head for relaxation. The international environment
facing China is much better than it was in the late 80s and early 90s that
saw the radical changes in Eastern Europe and the break-up of the Soviet
Union. 

Over the past 10 years or more, in the extremely sharp and complicated
international struggles, the Party Central Committee with Comrade Jiang
Zemin <http://www.peopledaily.com.cn/english/leaders/jzm/jzmhome.htm>  at
the core has judged the hour and sized up the situation, held the initiative
in its own hands, took various resourceful tactics and frustrated the plot
of the hostile forces of the West to undermine us, socialist China led by
the Communist Party of China (CPC) stands in a more powerful manner in the
East of the world. 

In observing the domestic situation, we must first see the mainstream, the
general orientation and the general trend. At present, people of the whole
country are determined, under the leadership of the Party, to realize
socialist modernization, make the country powerful and the people wealthy
and achieve national rejuvenation-this is the mainstream, the general
orientation and the general trend. The whole Party and the people of the
whole country, united as one, are confidently pushing forward the reform,
opening up and modernization drive, that is the main indication of the
favorable domestic situation. We continue to maintain the favorable
situation characterized by economic development, political stability, social
progress and national unity. People's living standards have further
improved. New achievements have been gained for the reform, opening up and
modernization drive. The whole Party and the people of the whole country
have established a clear and firm ideological conviction: Only by carrying
out reform and opening, can China develop and prosper, can the Chinese
people advance toward common prosperity and can the Chinese nation achieve
great rejuvenation.

We must also soberly see the existing problems and the challenges facing us.
At present, we are faced with these extremely arduous tasks: deepening the
reform of State-owned enterprises, readjusting the industrial structure,
bringing about more income for farmers, making arrangement for the placement
of laid-off workers, expanding social employment, straightening out the
income distribution relationship and establishing a sound social security
system. The passive phenomenon of corruption is still breeding and spreading
in some regions and departments.

The hostile forces of the West have never for a moment ceased implementation
of their strategic plot for "Westernization" and "divide". Various hostile
elements at home and abroad, "Taiwan
<http://english.peopledaily.com.cn/data/province/taiwan.html>  independence"
elements and "Falun Gong" cult collude with one another, in a vain attempt
to upset the excellent situation of China's stability and development.

China has entered a new development stage of comprehensive construction of a
well-off society and acceleration of socialist modernization. Continuing the
advancement of the modernization drive; accomplishing the reunification of
the motherland; safeguarding world peace and promoting common development
are the three major historical tasks we have taken upon ourselves after
entry into the new century.

The favorable situation is opened up by the Party in leading the people of
the whole country, the ideological-political foundation, material and
technical foundation and the mass foundation for the fulfillment of the
three major historical tasks in the new century are laid by the Party in
leading the people of the whole country. The Party is the core of leadership
in the cause of building socialism with Chinese characteristics. With the
Party's leadership, we can change the phase, however difficult, and the
situation, however severe. Without the leadership of the Party, a good phase
would be ruined and a favorable situation would be forfeited. This is a
truth repeatedly borne out by countless facts, both positive and negative.
Therefore, the key to consolidating and developing the present favorable
situation, achieving the goal set in the outline of the 10th Five-year Plan
for economic and social development and accomplishing the three major
historical tasks set for us in the new century lies in further
implementation of the important idea contained in the "three
representatives" put forward by Comrade Jiang Zemin, successfully carrying
out Party building in the aspects of ideology, organization and work style,
constantly raising the Party's leading and ruling levels, enhancing our
abilities to repel corrupting influence and guard against degeneration, and
resist risk. 

The Party's style of work is a matter directly affecting the Party's image
and combat effectiveness. As we are to fulfill the task of modernization and
be always carrying out the purpose of wholeheartedly serving the people,
comrades of the whole Party, particularly leading cadres at all levels of
the Party, must have a good style of work. Otherwise, correct lines cannot
be properly carried out, the Party's work will also be seriously affected. A
bad work style would seriously divorce one from the masses and from reality
that, in turn, would seriously affect the feelings of the masses and their
trust, in that case, it will be very dangerous for a ruling party. Party
organizations at various levels must conscientiously sum up our Party's
experiences, both old and fresh, gained in strengthening the building of the
Party's style of work and, in light of the new situation and new task, carry
out Party building in the aspects of ideology, work, leadership, study and
cadres' lifestyle in an earnest and down-to-earth manner. In the style of
ideology, we must adhere to the principle of emancipating the mind and
seeking truth from facts, oppose the practice of sticking to old conventions
and seeking no progress. In the style of work, we must uphold the principle
of forging close ties with the masses and oppose formalism and bureaucracy.
In the style of leadership, we must follow the system of democratic
centralism, oppose arbitrary action, and weakness and laxity; persistently
observe Party discipline and oppose liberalization; and uphold the principle
of cadre work, oppose the unhealthy tendency of employment. In the style of
study, we must persist in integrating theory with practice, oppose copying
mechanically and book worship. In the lifestyle of cadres, we must uphold
clean and honest government, oppose passivity and corruption; persevere in
hard struggle and oppose luxurious and dissipated life.

In strengthening Party construction in the aspect of work style, the most
important thing is to persist in emancipating the mind and seeking truth
fact facts. Comrades of the whole Party must oppose the mentality of being
contented with the existing state of affairs, sticking to old conventions,
seeking no progress, and attempting and accomplishing nothing. In the great
cause of building socialism with Chinese characteristics, we must engage in
making innovations again and again.

****

Two Koreas to Meet for New Talks Next Week
DPRK <http://english.peopledaily.com.cn/data/DPRK.html>  (the Democratic
People's Republic of Korea) and ROK
<http://english.peopledaily.com.cn/data/rok.html>  (Republic of Korea) will
hold a fifth round of talks in Seoul from March 13-16 to discuss a wide
range of inter-Korean issues, the South's Unification Ministry said on
Wednesday. 

DPRK Senior Cabinet Counselor Jon Kum-jin sent a telegram on Wednesday to
ROK Unification Minister Park Jae-kyu saying Pyongyang agreed to Seoul's
earlier proposal to open the talks next Tuesday, the ministry said in a
statement. 

``We hope to discuss with the North various issues including building up
military confidence and North leader Kim Jong-il's proposed visit to
Seoul,'' a ministry spokesman said.

The two Koreas have held four rounds of minister-level meetings focused on
economic cooperation and family reunions since ROK President Kim Dae-jung
held a historic summit with the North's Kim Jong-il in Pyongyang last June
and agreed to make concerted efforts to end a half century of confrontation.

The two Koreas remain technically at war because the 1950-53 Korean War
ended in an armed truce rather than a peace accord.

****


PLA Deputies: Increased Defense Spending Understandable
Increased defense spending is for national safety and guaranteed daily army
operations of PLA in contributing to China's economic development instead of
being directed at Taiwan
<http://english.peopledaily.com.cn/data/province/taiwan.html>  or the US,
said PLA deputies at the 4th Session of the 9th National People's Congress
(NPC). 

Finance Minister Xiang Huaicheng told that 17.7 percent raise of defense
spending is to be chalked in his financial budget report delivered. But it
has become a news item of great concern in China and abroad.

According to Senior PLA officers with regard to China's plan for increased
defense spending, increased fees will be used to boost modernization of
national defense and improve PLA's weaponry on one hand and raise the
remuneration of army men and PLA's necessary expense on the other. An
apparent fact is that in view of its GNP ratio and per-capita amount China's
defense spending has been the lowest of the world irrespective of a 17.7
percent increase in defense spending, said General Gu Shanqing and General
Zhong Shengqin said at the meeting.

PLA must safeguard peace, national safety and economic construction and must
have improved armor. Increased military budget can hardly meet the demand of
various tasks we are facing in addition to lots of capital to be used to
ensure the daily life of army men and raised pay for men and ex-servicemen
and officers living on pension, said General Gu.


****

CPPCC Chairman Calls for Efforts to Solve Problems of People
CPPCC National Committee Chairman Li Ruihuan Wednesday called on leading
cadres at all levels to pay special attention to the difficulties of
ordinary people in their daily life.
Although the living standards of the Chinese people have improved markedly
on the whole, the pace of progress in some areas is slow, he said. Part of
the urban and rural residents have encountered difficulties in their life
and in places, people even do not have adequate food and clothing.
"We must take practical measures to attend to their difficulties," said Li,
who is a member of the Standing Committee of the Political Bureau of the
Communist Party of China (CPC) Central Committee.
Li made the call at the group discussion of the Tianjin delegation on
Premier Zhu Rongji's report on the draft outline of China's five-year
economic and social development plan for 2001- 2005.
The CPPCC chairman criticized some local leaders for their indulgence in
lavish styles of public facilities in total disregard of the actual local
conditions. 
"This is not only an economic problem, but also a problem of style of work
that affects the mood of the general public," Li said, adding that the
hardship of the people is an important issue that affects social stability.
Li also called for efforts to establish a just and rational income
distribution system, improve the social security system, and crack down on
crimes to secure a good social order.

****

Jiang Zemin Emphasizes Importance of Agriculture
Chinese President Jiang Zemin reaffirmed Wednesday the fundamental status of
agriculture in China's national economic development.
Jiang, who is also the General Secretary of the Communist Party of China
(CPC) Central Committee, said that the CPC Central Committee has given top
priority to strengthening agriculture and increasing farmers' income in
drafting the outline of the Tenth Five-Year Plan (2001-2005), and has always
made it a guiding principle to consolidate and strengthen the fundamental
status of agriculture.
Jiang made the remarks in separate group meetings of deputies from Shaanxi
and Hunan provinces to the Ninth National People's Congress (NPC), in
session since Monday, and exchanged views on the Outline of the Tenth
Five-Year Plan for National Economic and Social Development delivered by
Premier Zhu Rongji at the opening ceremony of the current NPC session.
Jiang said that developing the western region is an important strategic
decision made by the CPC Central Committee, and wished a good beginning for
the implementation of the strategy.
The next five to 10 years are a very critical time period for China's
national economic and social development, Jiang stressed.
Jiang spoke highly of the great achievements Shaanxi has made in economic
and social development since the implementation of the Ninth Five-Year Plan
(1996-2000) and the conscientious efforts the province has exerted to carry
out the various policies and decisions of the CPC Central Committee.
Jiang noted, both the central and local governments have given great
importance to the strategy of developing the western region since its launch
more than one year ago.
Construction of a series of key projects including a west-to- east gas
transmission pipeline, west-to-east electricity transmission projects, large
water conservancy, transport and telecom projects have been or will be
kicked off gradually, Jiang said.
To do a good job of implementing the develop-west-strategy, Jiang said,
greater efforts are needed in three aspects: construction of infrastructure
facilities, protection of the ecological environment and development of
special economies. 
Jiang said, the western region is rich in natural resources such as coal,
petroleum and gas. A developed transportation system, improved telecom
facilities and well-built water conservancy projects can give full play to
local rich resources.
To build a sound ecological environment in the western region, Jiang called
for efforts to return hilly and low-yielding farmland to forested land,
prevent and control desertification and harness soil erosion in a planned
and step-by-step manner.
Jiang also praised the efforts of Hunan to carry out the Party's line and
policies and the achievements the province has made in various fields.
Jiang once again urged the making of greater efforts to increase farmers'
income, calling it a key issue which has a bearing on overall national
economic development after China has achieved bumper grain harvests in
recent years. 
Jiang pointed out, China will continue its efforts to push forward the
strategic adjustment of agricultural and rural economic structures in the
next five years. "This is the basic way to increase farmers' income," Jiang
noted. 
He called for focusing attention on raising the quality and competitiveness
of agricultural products and forcefully implementing the strategy to
revitalize agriculture through scientific and technological advancement.
Jiang pointed out, rural reform should further deepen and the household
contract responsibility system will remain unchanged in the new period of
agricultural development.
Jiang also voiced his opinions on agricultural industrialization,
tax-for-fees reform, and maintaining stability in rural areas.
Also present at the group meeting of Shaanxi NPC deputies was Jiang
Zhenghua, vice-chairman of the Standing Committee of the NPC.


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