DATE=11/3/98 TYPE=CORRESPONDENT REPORT NUMBER=2-241081 TITLE=CHINA/ARMY/BUSINESS (L ONLY) BYLINE=ROGER WILKISON DATELINE=BEIJING CONTENT= VOICED AT: INTRO: NEWS REPORTS FROM BEIJING AND HONG KONG SAY THE CHINESE GOVERNMENT HAS DECIDED TO SPEED UP ITS DISMANTLING OF THE HUGE BUSINESS EMPIRE RUN BY THE PEOPLE'S LIBERATION ARMY. AS WE HEAR FROM CORRESPONDENT ROGER WILKISON, THE REPORTS SAY THE GOVERNMENT HAS ORDERED THE MILITARY AND POLICE TO TRANSFER THEIR COMMERCIAL ENTERPRISES TO THE STATE ECONOMIC AND TRADE COMMISSION. TEXT: THE FIRST REPORT THE MILITARY HAS ONLY SIX-WEEKS TO GET OUT OF BUSINESS APPEARED TUESDAY IN THE HONG KONG DAILY "MING PAO". THE NEWSPAPER QUOTED AN OFFICIAL OF THE STATE ECONOMIC AND TRADE COMMISSION (ZHAO NING) AS TELLING A CONFERENCE IN HONG KONG THE MILITARY WILL DECIDE WHICH BUSINESSES IT CAN KEEP AND HIS ENTITY WILL DETERMINE WHAT TO DO WITH THE REST. THE FRENCH NEWS AGENCY QUOTED AN UN-NAMED SOURCE AT THE ECONOMIC AND TRADE COMMISSION'S HEADQUARTERS IN BEIJING AS SAYING THE COMMISSION WILL ASSUME CONTROL OF THOSE MILITARY-OWNED BUSINESESS THAT HAVE NO RELATION TO NATIONAL DEFENSE. THE PEOPLE'S LIBERATION ARMY IS ESTIMATED TO CONTROL THOUSANDS OF COMPANIES IN CHINA. THEY RANGE FROM CELLULAR PHONE NETWORKS AND SATELLITE LAUNCHING FIRMS TO HOTELS AND NIGHTCLUBS. THOSE ENTERPRISES ARE BELIEVED TO GENERATE 10-BILLION DOLLARS FOR THE ARMY EACH YEAR, THREE-BILLION OF WHICH IS PROFIT. LAST JULY, PRESIDENT JIANG ZEMIN ORDERED THE MILITARY TO GET OUT OF BUSINESSES UNRELATED TO NATIONAL SECURITY. HE AND OTHER LEADERS ARE SAID TO BELIEVE THE ARMY'S CONCENTRATION ON ITS COMMERCIAL INTERESTS HAS HURT ITS ABILITY TO DEFEND THE NATION. CHINA'S OFFICIAL MEDIA HAVE ALSO REPORTED THE MILITARY HAS BEEN INVOLVED IN SMUGGLING. MOST OBSERVERS EXPECTED THE DISMANTLING OF THE ARMY'S BUSINESS EMPIRE TO TAKE YEARS. ACCORDING TO THE HONG KONG NEWSPAPER REPORT, THE TRADE COMMISSION WILL DECIDE WHETHER TO HAND OVER FORMER ARMY ENTERPRISES TO THIRD PARTIES, MERGE THEM WITH OTHER COMPANIES, OR CLOSE THEM. (SIGNED) NEB/RW/FC/RAE 03-Nov-98 7:36 AM EST (1236 UTC) NNNN Source: Voice of America .
