Editorials
Monday, September 22, 1997CHINA will proceed on the path of dismantling its government-owned enterprises -- but leaving the largest intact. This was the main thrust of the Chinese Communist Party Congress last week, which was of particular interest because of the death earlier this year of China's foremost leader of the last two decades, Deng Xiaoping. Jiang boosts status
as top leader in ChinaThe congress, last held in 1992, gave President Jiang Zemin an opportunity to stamp his own imprint on the party. His call for privatization or closing of most of China's state enterprises is considered the boldest attempt to change the economy since the early 1980s.
There are still more than 300,000 government-owned companies, accounting for more than half of urban employment. They are notoriously overstaffed and inefficient and receive far too large a share of the credits provided by the state banking system. Under Jiang's plan, only 500 of the largest enterprises would remain in government hands. This reform should go far to make China's booming economy even more inviting to foreign investors.
Jiang personally emerged from the congress with his authority strengthened, re-elected to the top position and with his hand-picked allies in key posts. He succeeded in pushing his chief rival, Qiao Shi, into retirement but apparently at the price of permitting graft-buster Wei Jianxing to take Quiao's place on the party standing committee.
All indications were that Jiang, who was tapped by Deng to succeed him, has assumed Deng's mantle of leadership. However, the turmoil that followed the death of Mao Tse-tung suggests there may yet be challenges ahead.
Notably lacking from the congress was any indication of interest in political liberalization. Jiang will make a state visit to Washington next month, and some gesture toward a loosening of restraints would be welcome.
But a reported proposal by former party general secretary Zhao Ziyang that the party express regrets at the congress for the 1989 Tiananmen massacre was rejected. China's leaders are facing up to to the need to further liberalize the economy, but political freedom for its people is still not on their agenda.
OUTRIGGER Hotels & Resorts has donated $1 million to kick off a tourism campaign it hopes will be powered by participants in the biggest game in town, tourism. In the wake of Governor Cayetano's announcement of a two-year moratorium on airport landing fees, Outrigger's President and CEO David Carey said he hopes others in the local visitor industry will follow his company's lead and donate another $9 million. Tourism's gotta give
The airlines, in particular, should match that total with $10 million, which could create a hefty $20 million promotional fund, Carey projects. The airlines have been silent so far, but it's a campaign that warrants the attention of all tourism players, and consumers should monitor who chooses to participate. Hotels and peripheral services on all islands will benefit by any increase in visitor traffic, and should chip in as well.
In the past, many hotel owners have balked about donating large amounts of money to industry promotion efforts, saying that they already contribute by paying taxes and through their own companies. But those costs are generally passed on to their customers. It's time for the visitor industry to dig deep, as Outrigger Hotels did, and help dig Hawaii out of its tourism slump.
NO nuclear power plants are being built in the United States, but American designers have produced a new generation of nuclear plants that are easier and safer to build, operate and maintain. Two new designs -- General Electric's Advanced Boiling Water Reactor (ABWR) and ABB Combustion Engineering's System 80+ -- have been approved by the federal Nuclear Regulatory Commission. Nuclear power plants
Regis Matzie, vice president of nuclear systems engineering at ABB Combustion Engineering, said certification by the Nuclear Regulatory Commission is a milestone for the nuclear industry, ensuring that U.S. technology will continue to be competitive in international markets.
Despite the NRC approval and acceptance of the advanced designs abroad, GE and ABB CE aren't expecting a flood of U.S. orders. One deterrent is the current low price of natural gas. But someday, when conditions become more favorable, that technology will be available to build new nuclear plants in the United States.
Rupert E. Phillips, CEO
John M. Flanagan, Editor & Publisher
David Shapiro, Managing Editor
Diane Yukihiro Chang, Senior Editor & Editorial Page Editor
Frank Bridgewater & Michael Rovner, Assistant Managing Editors
A.A. Smyser, Contributing Editor
