Premier Zhu Rongji delivered a "Report on the Outline of the Tenth Five-Year Plan for National Economic and Social Development (2001-2005)" at the opening of the Fourth Session of the Ninth National People's Congress (NPC) on Monday morning in Beijing.

Running up to 16,000 Chinese characters, the report is divided into 10 parts. The following is the highlights of his draft report:

I. Review of national economic and social development during the Ninth Five-Year Plan period;

II. The objectives and guiding principles of the Tenth Five-Year Plan

III. Strengthening agriculture as the foundation of the economy and striving to increase farmers' income

IV. Energetically optimizing and improving industrial structure

V. Implementing the strategy for developing the western region to promote coordinated progress of different areas

VI. Implementing the strategy of developing the country by relying on science, technology and education and vigorously developing human resources

VII. Further deepening reforms and opening wider to the outside world

VIII. Constantly raising living standards and improving the social security system

IX. Continuing to implement the strategy of sustainable development

X. Promoting spiritual civilization, improving democracy and the legal system, and strengthening national defense

I. REVIEW OF NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT DURING THE NINTH FIVE-YEAR PLAN PERIOD;

1: The national economy experienced a sustainable, rapid and healthy development and the overall national strength continued to grow.

Over the five years, China's GDP increased by an average annual rate of 8.3 percent to reach 8.9404 trillion yuan by 2000. The target of quadrupling the 1980 per capita GNP was met ahead of time. Thanks to the sustained economic growth and improved efficiency, the state revenue reached 1.338 trillion yuan by 2000, averaging an annual growth of 16.5 percent.

China's output of major industrial and agricultural products now stands in the front ranks of the world's economies, and commodity shortages were by and large eliminated in the country.

The quantities of grain and other major agricultural products we are capable of producing increased noticeably, marking a historic change from a long-term shortage to a basic balance in total supply and demand, with even a surplus during good years.

2: Economic restructuring was extensively carried forward, and a socialist market economy was preliminarily established.

Significant advances were made in the establishment of a modern corporate structure in large and medium-sized state-owned enterprises. Most key state enterprises became corporations, and a considerable number of them were listed on stock markets in or outside China.

There was a marked reduction of losses and increase of profits in enterprises, and total profits from state-owned industrial enterprises and from the industrial enterprises with a controlling share held by the state reached 239.2 billion yuan in 2000, 2.9 times the 1997 figure. The objectives of reforming large and medium-sized state-owned enterprises and turning around loss-generating operations within three years were basically attained.

The market system continued to improve; the state macro- regulation system was further strengthened; information technology and other new- and high-tech industries grew rapidly; and marked success was achieved in infrastructure development.

3: China opened wider to the outside world, and the pattern of all-round opening took basic shape

Reform of the foreign trade system steadily progressed, and the internationally-oriented economy grew rapidly. The total volume of China's imports and exports reached 474.3 billion US dollars in 2000, with exports accounting for 249.2 billion US dollars, a rise of 69 percent and 67 percent respectively over the 1995 figures.

In the meantime, foreign investment was increased and better utilized in China. More than 289.4 billion US dollars in foreign funds were put to use during the past five years, an increase of 79.6 percent over the period of the Eighth Five-Year Plan. China's foreign exchange reserves totaled 165.6 billion US dollars at the end of 2000, 92 billion US dollars more than at the end of 1995.

4: People's living standards continued to improve, and generally people began to lead a relatively comfortable life

In 2000, the per capita net income of rural dwellers and the per capita disposable income of urban residents reached 2,253 yuan and 6,280 yuan, respectively, increasing by 4.7 percent and 5.7 percent annually in real terms.

There was abundant supply of commodities in China, with the level of consumption rising steadily and the total volume of retail sales of consumer goods increasing by an average annual rate of 10.6 percent. Housing, telecommunications, electricity and other aspects of living conditions for both urban and rural residents improved considerably. Personal savings deposits of residents increased by more than 100 percent over the past five years and their financial assets, including stocks and bonds, increased rapidly.

The number of people below the poverty line in the rural areas decreased drastically. The objectives set in the seven-year plan ( 1994-2000) to help 80 million people get out of poverty were basically attained.

5: The development of science, technology and education was accelerated, and other social undertakings progressed in a comprehensive way

The "Program 863" (March 1986 Program), a high technology development program, was implemented successfully. A number of major results were achieved in the fields of aeronautics and astronautics, information technology, materials science, bioengineering and other high technologies. New advances were made in basic and applied research.

The transformation of applied research institutes under government departments into enterprises has basically been accomplished, and restructuring of other research institutes has been carried out in a comprehensive way. The process of marketization and industrialization of scientific and technological achievements was accelerated.

Progress was made in strengthening various types of education at all levels. Initial success was achieved in fulfilling the objectives of making nine-year compulsory education basically universal in the country and eliminating illiteracy among young and middle-aged people. Major progress was made in the reform of the management system of higher education. The increase of university and college enrollment was widely appreciated by the general public.

New advances were made with regard to population growth and family planning. Great efforts were made in ecological conservation and environmental protection. Culture, public health, sports and other social undertakings continued to develop. Successive results were achieved in building a clean and honest government and in the struggle against corruption. The administration of all facets of public security was improved.

New progress was made in promoting socialist cultural and ethical progress, democracy and the legal system. Continuing progress was made in modernizing national defense and the armed forces.

During the Ninth Five-Year Plan period, the Chinese Government resumed its exercise of sovereignty over Hong Kong and Macao, and historic progress was made in the great cause of peaceful reunification of the motherland. Since the return of Hong Kong and Macao to the embrace of the motherland, the principle of "one country, two systems" and the basic laws of the two regions have been implemented in a comprehensive way. Outstanding achievements were made in the work of the governments of the special administrative regions. Social stability and economic development were secured in Hong Kong and Macao.

These tremendous achievements in economic and social development during the Ninth Five-Year Plan period were hard-won victories over numerous difficulties.

China successfully coped with the challenges posed by unexpected international events and protected itself from the impacts of the Asian financial crisis. The country controlled inflation during the initial stage of the Ninth Five-Year Plan and curbed deflation in the middle and late stages.

China also conquered severe floods and droughts.

During the implementation of the Ninth Five-Year Plan, China has accumulated a wealth of experience in improving macro-economic management and regulation to meet the requirements for developing a socialist market economy. They are: "First, we have solved problems blocking our advance by stimulating economic development...Second, we made timely adjustments to the macro-control policy in accordance with the changing economic situation...Third, we integrated the expansion of domestic demands with economic restructuring...Fourth, we balanced reform, development and stability."

However, numerous problems exist in China's economic and social life. These include: China suffers from an inappropriate industrial structure and non-coordinated development of local economies, a low overall quality of the national economy, low competitiveness on the international market, imperfections in the socialist market economy and conspicuous systematic factors hampering the development of productive forces. Meanwhile, a comparatively backward state of science, technology and education and relatively weak innovative ability in science and technology in the country still exists. Also, the country suffers from a shortage of important resources such as water and petroleum and the deterioration of the ecological environment in some regions, growing employment pressure, slow income increase of farmers and some urban residents, an increasing income gap and considerable disorder in some areas of the market economy. The country has also witnessed frequent occurrences of grave accidents, serious corruption, extravagance and waste, formalism and bureaucratism; and poor public order in some localities, the premier noted.

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II. THE OBJECTIVES AND GUIDING PRINCIPLES OF THE TENTH FIVE-YEAR PLAN

There are five guiding principles for the Tenth Five-Year Plan for National Economic and Social Development (2001-2005):

1: Making development the central theme

There should be a balance between a high growth rate and good economic returns and the need to attain fairly rapid growth by improving economic returns.

Sound economic growth must be based on strong market demand and good economic returns. This is a fundamental principle. Based on an overall analysis of conditions in all sectors of the economy, China has set the target for the average annual economic growth rate in the Tenth Five-Year Plan period at around seven percent.

Though slightly lower than the actual growth rate of the Ninth Five-Year Plan period, which is 8.3 percent, it is still fairly high.

Arduous efforts have to be made to attain this target through better economic performance.

2: Concentrating on economic restructuring

China has already reached a point where it cannot further develop its economy without making structural adjustments.

Under the old economic structure and its crude manner of growth, products would not be marketable, and it would be impossible to sustain resources availability and preserve the environment.

The country must adjust the economic structure in the process of developing the economy and maintain a relatively rapid growth in structural adjustments.

In the next five years, efforts should be intensified to adjust the industrial structure, regional economic structures and economic structures in urban and rural areas, with emphasis on the industrial structure.

3: Making reform and opening up and technological progress the driving force

The success of both economic development and structural adjustment depends on institutional, scientific and technological innovation.

In the next five years, China must unswervingly pursue reform, open the country wider to the outside world, and break down institutional obstacles to the development of productive forces. This will provide a strong impetus for economic and social development.

The country should give priority to the development of science, technology and education and further implement the strategy of developing China through science and education.

4: Making improvement of the people's living standards the prime goal

Raising the people's living standards in both urban and rural areas is the basic goal of economic development and a crucial factor for expanding domestic demand and stimulating sustained economic growth.

China must give priority to raising the people's living standards. To accomplish this, the country must create more jobs, increase personal income, distribute income more equitably, improve the social security system, and ensure a more comfortable life for the people.

5: Coordinating economic development with social development

China should make great efforts to promote socialist cultural and ethical progress, democracy and the legal system; balance reform, development and stability; accelerate development of various social undertakings; and ensure social stability.

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III. STRENGTHENING AGRICULTURE AS THE FOUNDATION OF THE ECONOMY AND STRIVING TO INCREASE FARMERS' INCOME

Agriculture, rural areas and farmers are of great importance to the reform, opening up and modernization drive...we need to give top priority to implementing the Party's basic rural policy, strengthening agriculture as the foundation of the economy and increasing farmers' income.

For this work, the country must focus on four aspects:

1: Accelerating restructuring of agricultural production and the development of the rural economy

This is the fundamental way to improve economic returns in agriculture and increase farmers' income.

While effectively protecting cultivated land and stabilizing grain production capacities, China needs to restructure the patterns of farming, focusing on improving strains, quality and economic returns. Great efforts need to be exerted to promote the industrial management of agricultural production, to support leading enterprises, and to spread the practice of farmers working with companies or producing crops on a contract basis.

Meanwhile, the country needs to develop industries for processing, storing and transporting agricultural products and keeping them fresh in order to gain better returns from intensive processing of agricultural products. Small towns and cities need to be expanded, and steady progress needs to be made in urbanization in order to increase job opportunities and sources of income for farmers. In restructuring agriculture, the country needs to proceed in the light of local conditions and follow the principles governing the development of the market, and need to protect farmers' right to independence in production and operation and refrain from pressure and coercion.

2: Actively promoting reforms in rural areas

While keeping the system of stable, long-term land contracts as a foundation, localities where conditions permit should be encouraged to explore a land operation rights transfer system.

The system of administrative fees and taxes in rural areas needs to be reformed by raising the current rates of agricultural tax and special agricultural product tax where it is appropriate, and at the same time abolishing all administrative fees imposed exclusively on farmers, such as contributions to township and village public accumulation funds. This is a sound policy for safeguarding the legitimate rights and interests of farmers and reducing their burden.

As a result of the reform of taxes and administrative fees, it will be necessary to decrease the number of administrative bodies and employees in towns and townships, and reduce the number of village and group functionaries receiving government subsidies.

China needs to continue to deepen financial reform in rural areas and actively seek a financial system that helps stimulate rural economic development, according to the premier. The Agricultural Bank of China and other financial institutions should also give more support to agriculture and the rural economy.

3: Stepping up the construction of agricultural and rural infrastructure

More investments need to be made to accelerate the harnessing of big rivers and lakes, and no time should be lost in constructing pivotal projects on major rivers and reinforcing decaying reservoirs to improve their flood-control, flow-management and storage capabilities.

China needs to increase the construction of power grids, telecommunications, radio and television installations, roads and water supply facilities in rural areas to improve production, living and marketing conditions there.

4: Continuing to fight poverty in rural areas

Although the seven-year national program (1994-2000) to help 80 million people out of poverty has been basically fulfilled, it will be an arduous task for a long time to bring about a fundamental change for the better in poverty-stricken areas.

Priority needs to be given in the country's anti-poverty endeavor to ethnic minority areas in central and western China, the old revolutionary base areas, border areas and destitute areas.

Assistance to the poor needs to continue to be development-oriented. More funds need to be put into anti-poverty efforts in every possible way. The country needs to expand the scale of programs that provide jobs as a form of relief and support efforts in poverty-stricken areas to improve the infrastructure there.

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IV. ENERGETICALLY OPTIMIZING AND IMPROVING INDUSTRIAL STRUCTURE

Readjusting and improving the industrial structure is the key to a strategic restructuring of China's economy. The country must stress the following four aspects:

1: Enhance traditional industries with high, new and advanced technologies

Close attention should be paid to the restructuring and reform of traditional industries.

In these industries, enterprises are the main entities, and they should be directed by the market and supported by technological advances. The following measures should be taken:

First, China needs to increase product variety, improve product quality, save energy, reduce waste, prevent and control pollution, and increase productivity. These measures are most important in energy, metallurgical, chemical, machinery, automobile, building materials, construction, textile and light industries. Support should be given to a number of key enterprises for technological renovation to improve their technology and equipment.

Second, China needs to speed up the development of universal, key and accessory technology that can stimulate structural advancement by depending on both domestic innovation and imported technology. It needs to stimulate equipment manufacturing and design and build complete plants of large, advanced and highly- efficient equipment urgently needed in China.

Third, in major industries, China needs to encourage the establishment of a number of large companies and enterprise groups through stock listing, merging, association and reorganization. Such companies and groups need to have their own intellectual property rights, core products and a strong central leadership, and they should become key players and pillars in industrial readjustment and advancement.

Fourth, China needs to support and promote renovation of old industrial bases, fully utilizing their strong foundation and concentration of talent to raise their production levels. At the same time, the country needs to take economic, legal and necessary administrative measures to continue closing down plants and mines that produce shoddy goods, waste resources, cause serious pollution, or operate under unsafe conditions.

Outmoded and surplus production capacity needs to be abandoned or reduced. Relocation and reconstruction of these outmoded facilities will be prohibited. Enterprises that have been in the red for long with little hope of recovery and whose debts exceed assets should be allowed to go bankrupt, and mines with exhausted resources should be closed.

2: Developing new and high-tech industries, and using information technology to stimulate industrialization

In accordance with actual situations, China needs to selectively stimulate development of new and high-tech industries such as information technology, bioengineering and materials science. The country needs to lend support to important high-tech projects, such as high-speed, wide-band information networks, key integrated circuits and new-type carrier rockets in order to strengthen China's new and high-tech industries on an overall as well as individual basis.

3: Intensifying construction of water conservation, transportation, energy and other infrastructural facilities and attaching great importance to strategic issues concerning resources.

China needs to put water conservation high on its work agenda, establish a rational pricing mechanism, comprehensively adopt water conservation technologies and measures, develop water- efficient industries, and raise the entire society's awareness of water conservation.

Prevention and control of water pollution should be strengthened. China needs to expedite the planning and building of projects to divert water from the south to the north.

Energy, oil in particular, is of strategic importance. Domestic development and production of oil can no longer keep pace with the needs of the country's economic and social development, resulting in an increasing imbalance between oil supply and demand. Therefore, the country needs to take all possible measures to conserve oil, accelerate exploration and exploitation of oil and natural gas resources, and make effective use of overseas resources. China needs to institute a system for preserving strategic resources such as oil as soon as possible.

China needs to vigorously carry forward the renovation of large coal mines, construct highly productive and efficient mines, and place special emphasis on the exploitation of clean coal.

While making full use of existing power-generating capacity, China needs to develop hydroelectric power and build large-scale thermal power plants near coal mines, reduce small thermal power stations, and moderately develop nuclear power.

Emphasis should be placed on the development of all types of new energy.

China should further reform the power management system, gradually allow power plants and grids to operate separately, and institute bidding for power supply.

4: Accelerating the development of China's service industry

This is an important avenue for stimulating economic restructuring and increasing employment.

The country needs to actively develop modern service industries, such as information services, banking, accounting, consulting and law. Up-to-date management and technology should be applied to renovate traditional service sectors, such as internal and foreign trade, transportation and municipal services, to improve their quality and efficiency.

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V. IMPLEMENTING THE STRATEGY FOR DEVELOPING THE WESTERN REGION TO PROMOTE COORDINATED PROGRESS OF DIFFERENT AREAS

Great attention will be paid to building infrastructure and improving the ecological environment during the next five years.

In the coming five years, China will invest heavily in a number of projects of strategic significance, including transmission of natural gas and electricity from western to eastern regions, the planned Qinghai-Tibet Railway, the Beijing-Shanghai High-Speed Railway, and a project to diver river water from south to north.

The project to transmit natural gas from western to eastern regions centers on a 4,200 kilometre-long pipeline. It transports natural gas, both for household and industrial use, from the Tarim Basin in the Xinjiang Uygur Autonomous Region, to Shanghai Municipality, east China, via Gansu Province, the Ningxia Hui Autonomous Region and Shaanxi, Shanxi, Henan, Anhui and Jiangsu provinces. The first phase of the gas project is scheduled to begin this year and finish by 2003, with a cost of 120 billion yuan.

The project to transmit electricity from western to eastern regions aims to provide the developed eastern and coastal areas, which suffer from severe shortages of power supply, with electricity from the energy-abundant western areas. The project is expected to cost over 100 billion yuan.

The planned Qinghai-Tibet Railway, linking Golmud, Qinghai Province, with Lhasa, the capital of Tibet Autonomous Region, is 1, 118 km in length, which is to bring an end to Tibet's history of not having a single inch of railway.

China has completed a feasibility study on the construction of the Beijing-Shanghai High-Speed Railway and plans to raise funds from different channels to cover a total cost of around 100 billion yuan.

After decades of research, the project to diver river water from south to north has entered the stage of planning. Diversion routes are to be located in eastern, central and western parts of the country.

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VI. IMPLEMENTING THE STRATEGY OF DEVELOPING THE COUNTRY BY RELYING ON SCIENCE, TECHNOLOGY AND EDUCATION AND VIGOROUSLY DEVELOPING HUMAN RESOURCES

This is an important component of the Outline as well as an important guaranttee for accomplishing the various tasks during the next five years.

Special attention should be given to the following three aspects:

1: Stimulating scientific and technological progress and innovation to give a strong impetus to structural readjustment and economic development.

Greater efforts should be given to high-tech research that is of great strategic importance and strive to make breakthroughs in some key areas that have a direct bearing on the economic lifelines and national security and that will help enhance the independent creative power and promote industrialization of achievements in high and new technologies.

It is also necessary to provide technical support to the efforts to upgrade traditional industries, with emphasis put on processing and conversion of agricultural produce, manufacturing of equipment, conservation of water and energy, and after-treatment of textiles.

There should be greater efforts to strengthen basic and applied research, especially frontline interdisciplinary research, strengthen applied basic research in selective areas where China enjoys advantages and which are important to development.

There should also be new progress in genomics, information technology, nanoscience, ecology and geoscience, and attention should be given to the fusion of natural and social sciences to promote the development of management science and to the development of philosophy and other branches of social sciences.

The state creative system should be strengthened and enterprises be made the main body of technical progress and creation so as to accelerate reform of the structure of science and technology development system and the integration of science and technology with the economy.

China needs to continue to encourage research institutes engaging in technology development to become part of enterprises or to be converted into enterprises, push forward the reform of non-profit making research institutes, and establish a number of internationally influential research institutions.

The country should see the importance of developing intermediary service organizations in the areas of science and technology, improving the mechanism of risk investment, and establishing a growth enterprise market to support small and medium-sized enterprises in their technical innovation.

2: Persisting in the appropriate development of future-oriented education to serve economic and social development.

Education should be geared up to modernization, the world and the future, with emphasis on quality education so as to enable students to develop in an all-round manner, morally, intellectually, physically and aesthetically.

3: Making efforts to implement the strategy of tapping human resources, and focusing on the important tasks of training, attracting and utilizing talented people

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VII. FURTHER DEEPENING REFORMS AND OPENING WIDER TO THE OUTSIDE WORLD

To gradually bring the system of socialist market economy to completion and to stimulate structural readjustment and economic growth, China should press ahead with reforms and open wider to the outside world.

These include the following measures:

1: Deepening the reform of state-owned enterprises to enable them to compete as equals in the market economy

The key issue in this regard is to accelerate the establishment and improvement of a modern corporate structure.

2: Overhauling and regulating market order, and expanding the market system

This is an urgent task to ensure normal operation of the economy and an important measure to strengthen the socialist market economy.

China needs to improve laws and regulations concerning markets and enforce the law strictly.

3: Enhancing macro-control, and deepening reform of the finance, taxation, banking and investment systems

China needs to gear its macroeconomic policies to the changing economic situation.

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VIII. CONSTANTLY RAISING LIVING STANDARDS AND IMPROVING THE SOCIAL SECURITY SYSTEM

One of the important tasks for the next five years is to bring about a big improvement in the living standards of the people and make their life more comfortable.

1: Improving the social security system at a faster pace

Great efforts should be made to improve the living standards of the people and establish a sound social security system.

A sound social security system is a big matter that concerns reform, development and stability. China needs to ensure that basic living allowances for laid-off workers from state-owned enterprises and basic pensions for retirees are paid in full and on time.

At the same time, it is necessary to establish a social security system, which, independent of enterprises or government institutions, has a diversified sources of funds, standardized rules and socialized management and services.

The country should make greater efforts wto improve the basic old-age insurance system for urban workers that combines social pool with individual accounts, improve the unemployment insurance system and gradually incorporate the basic cost-of-living allowances for workers laid off by state-owned enterprises into unemployment insurance; and promote the basic medical insurance system for urban workers and carry forward the reform of medical institutions and the medicine distribution system.

China has to set up reliable and stable mechanism that ensures the raising of funds, effective operation and strict management of the social security system and develop social security undertakings, such as social welfare, social relief, special care to disabled servicemen, and to family members of revolutionary martyrs and service and social mutual aid; safeguard the legitimate rights and interests of women, the under-aged, the aged and the handicapped; and support the various programs to help the handicapped.

2: Doing a better job in opening to the outside world in the light of economic globalization

China should lose no time to prime for the accession to the WTO and get everything done properly during the transitional period.

More effective measures should be taken to change the ways of government administration, enhance the competitiveness of Chinese enterprises; bring the foreign trade system into line with international convention and make it conformable to the national conditions; step up the work of reviewing and revising relevant laws and regulations; and train people well versed in international trade rules.

In import trade, China should focus on importing advanced technology, key equipment and important raw and processed materials that are urgently needed in the country.

By 2005, China's imports and exports will top 680 billion US dollars, with the proportion of electronic and machinery products to increase to 50 percent of the total.

China should better utilization of foreign capital; open the service sector to foreign investment step by step; encourage foreign investors, especially multinational corporations, to invest in high-tech industries and infrastructure; and encourage them to set up research and development centers in China and to participate in the restructuring and renovation of state-owned enterprises.

The government will support eligible enterprises to get listed on overseas stock markets and further improve the investment climate, and explore new ways to utilize more foreign investment, such as acquisition, merger, risk investment, investment funds, and investment in securities.

Enterprises with comparative advantages should be encouraged to invest in processing trade abroad, to develop foreign resources in cooperation local partners, to contract for construction projects, and increase export of labor service. But the premier stressed oversight and management of such enterprises in order to prevent a drain on state property.

3: Expanding employment by all possible means

China faces the demanding task of expanding employment in the next five years.

While maintaining a fairly high growth rate of the economy, attention should be given to developing labor-intensive industries with comparative advantages, especially service businesses that can provide large numbers of jobs; encourage the development of collective, private and individual businesses to create more jobs; set up a flexible employment system to provide a greater variety of jobs; help people change their ideas about employment and encourage them to start their own businesses or find jobs for themselves; make greater efforts to develop the labor market, improve employment services, expand job training, and form a market-oriented employment mechanism.

4: Increasing income of urban dwellers, especially those with low incomes

Efforts should be given to increase income of urban residents, especially those with low incomes, and improve their housing and transportation conditions.

Government financial departments at all levels need to ensure that the salaries of government employees and pension for retirees are paid in full, and gradually increase salaries.

The country must raise salaries of senior managers and senior technical professionals in state-owned enterprises to fully reflect their contribution.

5: Adjusting the consumption pattern and improving the environment for consumption

The country needs to build more low-cost housing and establish a system to ensure its supply and energetically develop public transit system; strengthen city greening and infrastructure projects in urban and rural areas; improve the living environment of urban and rural residents; develop community disease prevention and control and health services; improve health services in rural areas; and expand public sports facilities.

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IX. CONTINUING TO IMPLEMENT THE STRATEGY OF SUSTAINABLE DEVELOPMENT

It is a must to bring about a more harmonious development of population, resources and environment and place the sustainable development strategy in a more prominent position.

1: Adhering to the basic state policy on family planning

More efforts should be given to do the family planning work well in the rural areas and among the floating population; and establish an interest-oriented family planning mechanism and at the same time develop the undertakings for the aged.

2: Protecting natural resources and using them properly

The country must protect and make proper use of valuable resources such as fresh water, farmland and energy in accordance with the law. It must gradually establish a system of reserves for strategically important mineral resources and ensure their safe supply; strengthen the comprehensive development, utilization and conservation of marine resources; increase the recycling of resources in order to utilize the resources more effectively; improve the system of paying compensation for the use of natural resources; safeguard the rights and interests of the state as the owner of mineral and other resources; improve laws and regulations in this regard and strengthen law enforcement.

3: Improving ecological conservation and strengthening environmental protection

Greater efforts need to be exerted to complete natural forest protection projects on the upper reaches of the Yangtze River and the upper and middle reaches of the Yellow River, intensify the building of shelterbelt system in Northeast, North and Northwest China and on the middle and lower reaches of the Yangtze; control urban pollution by comprehensive measures so as to improve markedly the environmental quality of large and medium-sized cities; protect the rural environment, especially from pollution caused by farm chemicals; and improve the environmental, meteorological and seismological monitoring systems to help prevent and reduce natural disasters.

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X. PROMOTING SPIRITUAL CIVILIZATION, IMPROVING DEMOCRACY AND THE LEGAL SYSTEM, AND STRENGTHENING NATIONAL DEFENSE

The country has to take the following steps to fulfill these tasks:

1: Vigorously promoting socialist spiritual civilization

The country needs to promote patriotism, collectivism and socialism. It also needs to work hard to foster ideas and ethics appropriate for a socialist market economy. It will also further develop various cultural undertakings.

2: Energetically improving socialist democracy and the legal system

China will press ahead with reform of the political system; implement democratic election, democratic decision making, democratic management and democratic supervision; protect the extensive rights and freedoms of the people as prescribed by law; and respect and guarantee human rights, energetically improve socialist democracy and the legal system.

China should continue to strengthen the legislative and supervisory role of the People's Congress, and expand the role of the Chinese People's Political Consultative Conference (CPPCC) in political consultation, democratic supervision, and administration and deliberation of state affairs; and bring the legal system into line with a socialist market economy.

Governments at all levels must conscientiously subject themselves to the supervision of the people's congresses at corresponding levels and consult with the CPPCC and they must govern in accordance with law and be strict in performing official duties.

He urged deepening reform of the judicial system, strictly enforcing laws, and administering justice impartially; putting greater efforts into combating corruption and building a clean government; strengthening legal education and raising the awareness of law among all citizens; and strengthening development of legal infrastructures and improving the qualifications of procuratorial, judicial and public security officers.

Legal means must be used to combat ethnic separatist activities, religious extremist forces, violent and terrorist activities, cults, and illegal activities carried out under the guise of religion.

3: Strengthening national defense and building up the armed services

China will readjust its defense industry, develop new weapons and equipment, and utilize modern technology, especially high technology, to improve the defense capabilities and combat effectiveness of the armed forces.

As the country focuses its efforts on developing the national economy, it must also strengthen its national defense and increase its defense capabilities.

Strengthening national defense and building up the armed services is an important guarantee for the security of the state and the success of the modernization drive.

Chin needs to strengthen defense-related scientific research, reform and restructure science, technology and industry related to national defense, develop new weapons and equipment, utilize modern technology, especially high technology, to improve the defense capabilities and combat effectiveness of the armed forces, and ensure their preparedness for any contingency.

The country also needs to work conscientiously to implement the military strategy of active defense in the new era; persist in reform and innovation; strengthening the armed forces through science and technology, with emphasis on quality and thrift; run the armed forces by law; streamline the armed forces in a Chinese way in order to build a more modernized, standardized revolutionary army; and raise the people's awareness of the importance of national defense and improving the mobilization system.

China will continue to pursue an independent foreign policy of peace, develop friendly relations and cooperation with all countries on the basis of the Five Principles of Peaceful Coexistence, and strive for a long-term peaceful international environment and good relations with its neighbors.

The mainland side will, together with the vast majority of its compatriots in Taiwan, resolutely put a stop to any separatist attempt and do its utmost to achieve peaceful reunification.

An early settlement of the Taiwan issue and the accomplishment of national reunification are the shared aspirations of the entire Chinese nation and an enormous task China is now facing.

The mainland will continue to follow the basic principles of " peaceful reunification" and "one country, two systems" and the eight-point proposal put forward by President Jiang Zemin.

The Central Government, together with the vast majority of our compatriots in Taiwan, will resolutely put a stop to any separatist attempt and do its utmost to achieve peaceful reunification.

The Central Government will continue to adhere to the one China principle, continue to push for cross-Straits dialogue and negotiations on that basis, and promote economic, cultural and personnel exchanges between the two sides.

The Central Government is confident that with the unremitting efforts of all Chinese people, the great cause of national reunification will surely be accomplished at an early date.

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(Chinadaily.com.cn News)