Weapons of Mass Destruction (WMD)

DATE=12/15/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-242989
TITLE=CHINA / MILITARY (L-ONLY)
BYLINE=STEPHANIE HO
DATELINE=BEIJING
CONTENT=
VOICED AT:  
INTRO:  CHINA SAYS THE MILITARY HAS SUCCESSFULLY COMPLETED THE 
TRANSFER OF ITS SPRAWLING COMMERCIAL EMPIRE TO LOCAL AND REGIONAL
GOVERNMENTS.  VOA'S STEPHANIE HO REPORTS FROM BEIJING TODAY'S 
(TUESDAY'S) DEADLINE FOR THE HANDOVER MARKS  THE END OF THE ARMED
FORCES 20 YEAR COMMERCIAL ENTERPRISE.
TEXT:  IN JULY, CHINESE PRESIDENT JIANG ZEMIN MADE A SURPRISE 
ANNOUNCEMENT:  THAT THE PEOPLE'S LIBERATION ARMY WOULD GET OUT OF
THE BUSINESS OF BUSINESS.
WHEN FORMER PARAMOUNT LEADER DENG XIAOPING ORDERED SWEEPING 
ECONOMIC REFORMS TWO DECADES AGO, THE CHINESE MILITARY TOOK THIS 
AS A GREEN LIGHT TO ESTABLISH WHAT HAS BECOME AN EXTENSIVE 
BUSINESS NETWORK.
OFFICIAL ESTIMATES SAY THE ARMY AND THE PARAMILITARY PEOPLE'S 
ARMED POLICE CONTROLLED 15-THOUSAND ENTERPRISES -- RANGING FROM 
LIGHT CONSUMER GOODS TO HOTELS, AND EVEN PASSENGER AIRCRAFT.
THESE COMPANIES PROVIDE FULL-TIME EMPLOYMENT TO 600-THOUSAND 
PEOPLE, AND ARE ESTIMATED TO HAVE BILLIONS OF DOLLARS WORTH OF 
ASSETS.
BUT BEIJING OFFICIALS HAVE BEEN ANGERED ENOUGH TO APPLY THE 
BRAKES IN RECENT YEARS, BECAUSE OF THE RAMPANT SMUGGLING OF OIL 
AND OTHER COMMODITIES BY MILITARY-OWNED BUSINESSES.
TUESDAY WAS THE DEADLINE FOR THE MILITARY'S DIVESTITURE, AND 
CHINA'S MAIN NEWSPAPER, THE PEOPLE'S DAILY, SAID THINGS ARE 
PROCEEDING SMOOTHLY AND WILL BE COMPLETED ON TIME.
THE NEWSPAPER CALLED PRESIDENT JIANG'S DIRECTIVE IMPORTANT, AND 
SAID IT WILL STRENGTHEN ANTI-CORRUPTION WORK.  OFFICIAL CHINESE 
MEDIA ADDED THAT THE TRANSFER IS AIMED AT MAINTAINING LONG-TERM 
SOCIAL STABILITY AND RECTIFYING THE ECONOMIC ORDER.
THE TRANSFER DOES NOT MEAN THE ARMY WILL LOSE HUGE AMOUNTS OF 
MONEY.  THE CENTRAL GOVERNMENT IS EXPECTED TO INCREASE THE 
MILITARY BUDGET TO MAKE UP FOR THE LOSS OF INCOME.  TALLIES OF 
STATE FIGURES SHOW THE DEFENSE BUDGET IN 1997 WAS 
NINE-POINT-SEVEN BILLION DOLLARS -- UP FROM EIGHT-POINT-FOUR 
BILLION DOLLARS IN 1996.  
ALTHOUGH OFFICIALS HAVE NOT PROVIDED DETAILS, SOME WESTERN 
MILITARY EXPERTS BELIEVE THE HANDOVER ONLY AFFECTS THE ARMY'S 
COMMERCIAL ARM.  COMMERCIAL ENTERPRISES REPRESENT ONLY ABOUT 
ONE-THIRD OF THE ARMY'S OVERALL BUSINESS INTERESTS.   INDUSTRIAL 
AND AGRICULTURAL CONCERNS MAY MAINTAIN THEIR MILITARY LINKS.  
(SIGNED)
NEB/HO/GC/FC
15-Dec-98 4:58 AM EST (0958 UTC)
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Source: Voice of America
.