DATE=7/23/98 TYPE=ANCHOR SCRIPT NUMBER=5-40979 TITLE=CHINA MILITARY BUSINESS BYLINE=STEPHANIE MANN DATELINE= WASHINGTON CONTENT= VOICED AT: INTRO: CHINESE PRESIDENT JIANG ZEMIN HAS ORDERED THE MILITARY TO SHUT DOWN ALL ITS BUSINESS ENTERPRISES AS PART OF THE COUNTRY'S CURRENT ANTI-SMUGGLING CAMPAIGN. THE PEOPLE'S LIBERATION ARMY, THE P-L-A, HAS BECOME HEAVILY INVOLVED IN THE CIVILIAN SECTOR OF CHINA'S ECONOMY OVER THE PAST TWO DECADES, AND MANY ANALYSTS ARE WONDERING IF IT'S POSSIBLE FOR THE P-L-A TO DIVEST ITSELF OF THIS SIGNIFICANT SOURCE OF REVENUE. V-O-A'S STEPHANIE MANN TALKED ABOUT THE ORDER TO CLOSE DOWN ARMY BUSINESSES WITH A SPECIALIST ON CHINESE MILITARY ISSUES, JUNE TEUFEL DREYER (TOY FUL DRY ER), PROFESSOR OF POLITICS AT UNIVERSITY OF MIAMI. PROFESSOR DRYER SAYS THE ARMY IS INVOLVED IN JUST ABOUT EVERY KIND OF BUSINESS. // TEXT OF INTERVIEW, WHICH IS AVAILABLE IN AUDIO SERVICES // DREYER: THEY RUN GUEST HOUSES. THEY RUN KARAOKE PARLORS. THEY RUN MOTOR BIKE MANUFACTURING PLANTS. AND THEY ALSO HAVE BEEN INVOLVED IN COAL MINING, HORSE RAISING AND MAKING SEWING MACHINES. MANN: SO, HOW IMPORTANT IS THIS ANNOUNCEMENT THEN? DREYER: IT IS A VERY IMPORTANT ANNOUNCEMENT. ALTHOUGH THE CHINESE GOVERNMENT HAS BEEN TRYING TO REIN IN THE COMMERCIAL ACTIVITIES OF THE PEOPLE'S LIBERATION ARMY FOR MANY YEARS, AND THUS FAR WITHOUT SUCCESS, THERE'S NO SUPPOSITION THAT JUST BECAUSE THE ORDER IS GIVEN IT WILL ACTUALLY BE OBEYED. MANN: SO, YOU DON'T NECESSARILY EXPECT THE ORDER TO MEAN THAT ALL THESE BUSINESSES WILL THEN CLOSE? DREYER: I AM SKEPTICAL. AND THE REASON IS THAT THE REVENUE DERIVED FROM THESE INDUSTRIES IS VERY IMPORTANT TO A LARGE NUMBER OF PEOPLE IN THE CHINESE MILITARY, FROM THE VERY TOP PEOPLE TO THE GRASS ROOTS UNITS. MANN: WELL, HOW MUCH OF THE P-L-A OPERATIONS DEPEND ON THEIR INCOME FROM BUSINESS ENTERPRISES? DREYER: NOBODY IS PRECISELY SURE OF THAT, BUT IT'S A SUBSTANTIAL AMOUNT. AND IT ALSO GOES TOWARD MAKING THE DIFFERENCE BETWEEN A VERY SPARTAN LIFESTYLE FOR THE UNITS AT THE BOTTOM AND HAVING SOME OF THE AMENITIES OF LIFE, LIKE REPAIRING YOUR BARRACKS. AND OF COURSE, AT THE TOP, IT ENABLES PEOPLE TO BUY MERCEDES SEDANS AND ESTABLISH FOREIGN BANK ACCOUNTS AND ENTERTAIN LAVISHLY, WHICH IS THE PRELUDE TOWARD CREATING GUANXI (CONTACTS / RELATIONS), AND GOING ON TO EVEN BETTER THINGS. MANN: WHY DID THE PEOPLE'S LIBERATION ARMY BECOME INVOLVED IN WHAT WE WOULD CALL CIVILIAN SECTOR ENTERPRISES IN THE FIRST PLACE? DREYER: THEY WERE ACTUALLY URGED TO DO SO BY NONE OTHER THAN DENG XIAOPING SOON AFTER HE TOOK OVER THE REINS OF GOVERNMENT IN 1978-1979. THE MILITARY WANTED MILITARY MODERNIZATION, AND SO DID DENG. BUT HE WAS VERY WELL AWARE THAT YOU CAN'T GRAFT A STRONG MILITARY ONTO A WEAK ECONOMY. SO HE SAID TO THE P-L-A, "THE BEST WAY FOR YOU TO ENSURE YOUR OWN MODERNIZATION IS TO HELP WITH THE MODERNIZATION OF THE CIVILIAN ECONOMY." MANN: SO, SHOULD WE INTERPRET PRESIDENT JIANG ZEMIN'S ANNOUNCEMENT FOR THE MILITARY TO CLOSE DOWN THESE OPERATIONS AS PERHAPS CONFIRMATION THAT THE MILITARY BUSINESSES HAVE BEEN INVOLVED IN SMUGGLING AND OTHER ILLEGAL, CORRUPT ACTIVITIES? DREYER: I THINK THERE'S NO QUESTION ABOUT THAT. AND THE CHINESE GOVERNMENT ITSELF HAS SAID SO MANY MANY TIMES IN THE PAST. ... THE TOP BRASS OF THE MILITARY HAS BEEN WORRIED ABOUT THIS FOR, I WOULD SAY, AT LEAST 14 YEARS. THEY SOMETIMES REFER TO THE P-L-A AS THE 'GREAT STEEL WALL,' AND THEY HAVE ACTUALLY SAID, IN SO MANY WORDS, THAT THEY WORRY THAT THE GREAT STEEL WALL IS RUSTING. // END OF INTERVIEW (TAPE RUNS 2:48) // OUTRO: JUNE TEUFEL DREYER (TOY FUL DRY ER), PROFESSOR OF POLITICS AT UNIVERSITY OF MIAMI. SHE SPOKE WITH V-O-A CORRESPONDENT STEPHANIE MANN. NEB/SMN/KL 23-Jul-98 1:22 PM EDT (1722 UTC) NNNN Source: Voice of America .
