DATE=4/7/99 TYPE=BACKGROUND REPORT NUMBER=5-43041 TITLE=CHINA / CORRUPTION BYLINE=STEPHANIE HO DATELINE=BEIJING CONTENT= VOICED AT: INTRO: CHINA'S CENTRAL GOVERNMENT IS CRACKING DOWN ON CORRUPTION, IN AN ATTEMPT TO SHOW THAT CHINESE OFFICIALS ARE NOT EXEMPT FROM PUNISHMENT FOR ABUSING THEIR POWER. AS V-O-A'S STEPHANIE HO REPORTS, CORRUPTION HAS BEEN COMPARED TO A CANCER THAT THREATENS CHINA'S HEALTHY DEVELOPMENT. TEXT: IN HIS STATE-OF-CHINA REPORT TO THE PARLIAMENT LAST MONTH, CHINESE PREMIER ZHU RONGJI CALLED FOR CLEAN GOVERNMENT -- COMMENTS WHICH ALSO SERVED AS A WARNING TO LOCAL OFFICIALS. // ZHU AND INTERPRETER ACT // ALL GOVERNMENT FUNCTIONARIES SHOULD FIRMLY KEEP IN MIND THE FACT THAT THEY ARE PUBLIC SERVANTS, AND WORK DILIGENTLY AND WHOLEHEARTEDLY FOR THE PEOPLE. // END ACT // MR. ZHU CATALOGED ABUSES OF POWER BY BUREAUCRATS AROUND THE COUNTRY AS ONE OF CHINA'S MAIN PROBLEMS. // ZHU AND INTERPRETER ACT // ARBITRARY CHARGES, FUNDRAISING, QUOTAS AND FINES ARE STILL A PREVALENT PROBLEM DESPITE REPEATED ATTEMPTS TO PUT A STOP TO SUCH PRACTICES, RESULTING IN INTOLERABLE BURDENS ON FARMERS AND ENTERPRISES IN CERTAIN AREAS. // END ACT // THE CAMPAIGN STARTED WITH FORMER BEIJING MAYOR AND COMMUNIST PARTY SECRETARY CHEN XITONGHE'S CORRUPTION CONVICTION AND 16-YEAR JAIL SENTENCE LAST YEAR. HE IS THE HIGHEST-RANKING OFFICIAL TO HAVE BEEN SNARED IN THE COUNTRY'S ANTI-CORRUPTION NET. IN RECENT WEEKS, THOUGH, CHINA'S STATE-RUN MEDIA HAVE INTENSIFIED THEIR COVERAGE OF OFFICIAL WRONGDOING -- ALTHOUGH, SINCE CHEN XITONG'S CASE, ONLY MID-LEVEL CADRES HAVE BEEN SENTENCED. THE COUNTRY'S MAIN OFFICIAL NEWSPAPER, THE "PEOPLE'S DAILY," SAYS INVESTIGATIONS FOUND LOCAL AUTHORITIES IN HEBEI, HUBEI AND SHANXI PROVINCES USED STATE FUNDS ALLOCATED FOR DIKES AND ROADS TO BUILD LUXURY HOTELS. THE NEWSPAPER SAYS THESE BUREAUCRATS MISUSED WHAT IT TERMS, THE PEOPLE'S BLOOD-AND-SWEAT MONEY -- MORE THAN 120 MILLION DOLLARS -- AND WILL BE DEALT WITH HARSHLY. MEANTIME, CHINA CENTRAL TELEVISION SUNDAY REPORTED THAT A COURT IN SOUTHWEST CHINA'S CHONGQING MUNICIPALITY SENTENCED LIN SHIYUAN TO DEATH FOR HIS ROLE IN A BRIDGE COLLAPSE THAT KILLED 40 PEOPLE. THE COMMUNIST PARTY OFFICIAL WAS CONVICTED FOR TAKING BRIBES AND FOR DERELICTION OF DUTY. THE COLLAPSE OF THE RAINBOW BRIDGE HIGHLIGHTS LOCAL CORRUPTION AND SHODDY CONSTRUCTION IN CHINA'S PUBLIC WORKS PROJECTS. THESE ISSUES WERE RAISED DURING SEVERE FLOODING LAST YEAR, WHEN THE CHINESE PREMIER MADE HIS NOW-FAMOUS CRITICISM OF LOCAL AUTHORITIES, SAYING A COLLAPSED DIKE APPEARED AS IF IT WERE MADE OUT OF TURTLE EGGS AND BEAN CURD. MR. ZHU SAID OFFICIAL CORRUPTION IS ONE PROBLEM THE GOVERNMENT WILL CONTINUE TO COMBAT. // ZHU AND INTERPRETER ACT // SOME UNDESIRABLE PRACTICES AND CORRUPTION ARE STILL SERIOUS AND THE PUBLIC ORDER IN SOME AREAS IS NOT GOOD. WE ARE PAYING VERY CLOSE ATTENTION TO ALL THESE PROBLEMS AND ARE TAKING MEASURES TO GRADUALLY RESOLVE THEM. // END ACT // THE SAFETY OF PUBLIC PROJECTS HAS TAKEN ON GREATER URGENCY THIS YEAR AS CHINA HAS TURNED TO INFRASTRUCTURE SPENDING TO SPUR THE ECONOMY AMID FLAGGING CONSUMPTION AND INVESTMENT. THE PROBLEM OF CORRUPTION IS ALSO LINKED TO ANOTHER OVER-RIDING ISSUE FOR CHINESE LEADERS, THE MAINTENANCE OF SOCIAL STABILITY. (SIGNED) NEB/HO/FC 07-Apr-99 4:00 AM EDT (0800 UTC) NNNN Source: Voice of America .