PREMIER Li Peng struck a cautious note on the detailed work plan to be undertaken next year as the first step in the second stage of China's economic reforms.
While emphasising the need to maintain the ''sustained, high-speed and healthy'' growth of the economy, he said macro-control measures should be strengthened and improved.
Speaking at the opening of a national economic work conference, Mr Li reiterated the official stance that the four-month-old austerity programme had been proved to be ''necessary and correct''.
Noting that China was faced with a golden opportunity for reform and development, he said: ''We have to keep a sober mind to see that there are a lot of contradictions and difficulty . . . that can only be solved through the deepening of reform.'' He warned that fresh reforms such as the revamping of the ailing state-owned enterprises and the building up of a modern enterprise system would also bring about new problems.
Although the change of ''exterior environment'' for enterprises would have a positive impact on firms, he said they would also encounter fresh difficulties.
''There would be a need for relevant government departments to co-ordinate the country's macro-economic operations better and improve the work to monitor and forecast economic trends,'' he said.
''The shortage of funds would be alleviated gradually.'' But, he expected that problems concerning the market might stand out.