Weapons of Mass Destruction (WMD)

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)
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Source: Voice of America
.