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DATE=10/12/2000

TYPE=CORRESPONDENT REPORT

NUMBER=2-267799

TITLE=CHINA-CCP PLENUM (L-ONLY)

BYLINE=LETA HONG FINCHER

DATELINE=BEIJING

CONTENT=

VOICED AT:

INTRO: China's Communist Party leaders are calling for more open markets, faster economic growth and greater social security in their plan for the country's development over the next five years. But as Beijing Correspondent Leta Hong Fincher reports, the party elite concluded their annual meeting with few concrete policy proposals.

TEXT: The Central Committee of China's Communist Party is calling for the economy to be doubled over the next 10 years, by deepening economic reforms and increasing the country's competitiveness in the global marketplace.

But the final communiqué issued at the end of the annual plenum this week made little mention of China's impending entry into the World Trade Organization. It did, however, identify the wrenching changes China will be required to make in opening its markets to global competition.

The party plenum's new five-year plan does outline a number of broad priorities to help manage these changes. They include: increasing rural and urban incomes, further reforming inefficient and debt-ridden state-owned enterprises, and strengthening social welfare by improving retirement, medical and

unemployment insurance.

As China dismantles its planned economy and moves to freer markets, it faces millions of job layoffs, which are certain to add to its already high unemployment rate. Farmers and state workers - already upset over unpaid wages, burdensome taxes and corruption - may be further hurt during the economic transition.

The party had few answers for handling these anticipated problems. The final plenum communiqué gives no policy details about the new five-year plan. The document seems merely a repetition of the party's goals, and the problems that have dogged Chinese leaders for years. There are no calls for the party to increase its transparency and strengthen its compliance with the law. It also avoids touching on the difficulties leaders have faced with controlling dissent, such as the persistent threat posed by the banned spiritual movement, Falun Gong.

Some observers believe that China's Communist Party may face a crisis if it continues to put off meaningful political reforms as it implements the economic changes it must make to comply with W-T-O membership.

/// REST OPT ///

Furthermore, the Communist Party is grappling with the effects of its own anti-corruption campaign meant to bolster its public image after 51 years in power. Scores of members are being tried in multi-billion dollar graft cases, most taking place in the southern province, Fujian, under a veil of great secrecy.

/// SUB OPT /// At the end of its annual meaning, the party elite expelled one of its own an alternate member of the Central Committee, Xu Penghang - for taking kickbacks in a stock listing. /// END SUB OPT ///

The plenum also gave a few clues about leadership succession in China in 2002. Vice President Hu Jintao has been tapped to inherit the President Jiang Zemin's position when he steps down as party chief in two years. This now seems to still be the case as the party failed to promote Zeng Qinghong to the Politburo. Mr. Zeng is a key ally of President Jiang and was a potential rival of the vice president. (signed)

NEB/HK/LHF/JO/PFH