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Wen Jiabao
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Zhu to call for reduced state role

Wen Jiabao

Premier-designate Zhu Rongji is to make an impassioned plea for the ideal of 'small government', a prime goal for his next five years as head of the State Council.

In a speech scheduled for next Friday, Mr Zhu will tell 2,979 members of the National People's Congress that the future of reform and efficient administration hinges on whether they will endorse his plan for a 'governmental set-up for the 21st century'.

Sources close to the Zhu Office pointed out the economic tsar would for the first time reveal the principles behind the abolition, merger and corporatisation of more than a dozen Cabinet-level ministries and departments.

He vows to wean business from government, saying: 'The Government's state management functions will be separated from economic management functions.' Beijing's control over the economy will shift from Soviet-style fiats to 'macro-level, indirect management'.

More government and private firms will be supervised by semi-official chambers of commerce or trade associations rather than ministries. An increasing number of government departments in the areas of culture, arts, health, science and technology will be turned into 'social units' such as mass and business organisations.

The State Planning Commission, a legacy from the Soviet era and one of the most powerful of State Council outfits, will be scaled down to become an Economic Development Commission.

The staff establishment will be cut from 1,200 to 900, and the new commission will be a 'co-ordinating unit' instead of a super-ministry fixing production targets.

Under the small-government credo, parts of State Council departments in the areas of sports, youth and women affairs will be converted to, or absorbed by, social and commercial units.

Beijing sources said, however, a couple of new ministries would be added to boost the ability to fend off the Asian financial crisis. Mr Zhu has staked his reputation on a new Commission on Financial Affairs, to be headed by either Politburo member Wen Jiabao or People's Bank of China Governor Dai Xianglong.

In his NPC speech, Mr Zhu will also call on central and regional administrations to observe 'the toughest financial discipline', such as curtailing bad debts sustained by the banking system.

The sources pointed out Mr Zhu does not mind antagonising opponents of reform, including some 30,000 Beijing-based cadres who will be laid off, as he would only serve one term as premier.

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