PREMIER Li Peng has sought to play up reformists' views on the Ninth Five-Year Plan by emphasising that the central Government will not bail out money-losing enterprises.
However, sources familiar with the final draft of the blueprint for the years 1996 to 2000 have pointed out that it lacks new ideas for modernising the ailing state sector.
Mr Li was yesterday quoted by a semi-official news agency as saying he was opposed to using government funds to solve the question of 'triangular debts', or money that enterprises owe the banks or each other.
The premier, who has clawed back considerable decision-making powers over the economy, said: 'Those [enterprises] owing money to the banks must pay up; if they fail to do so, they will be declared bankrupt.' The head of the State Council criticised the way in which the debt question had been handled in the past few years.
'It's true that the state may have to inject some funds for clearing up triangular debts.
'But from the past few years' experience, new debts are piled up soon after old ones are cleared.
