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Development zones 'wasteful'

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BEIJING has sounded new alarms over the uncontrolled development of ''economic development zones'' which have eaten up precious farmland and contributed to the wastage of resources.

Vice-Premier Mr Zhu Rongji has warned the excessive opening of development zones will drain the country's investment in other projects and will lead to hyperinflation and loss of farmland.

According to Ministry of Agriculture statistics, the number of development zones totalled 8,700 at the end of 1992, up from 117 in the previous year. But only about two per cent had been developed.

Officials noted that a total of 2.2 million sq km of land was leased in China last year at the cost of 52.5 billion yuan (HK$70.71 billion), of which only 2.6 billion yuan went to state coffers.

It is believed an estimated 20 billion yuan was lost through illegal land leasing.

Officials also warned that among the country's 95.38 million hectares of farmland, more than 6.67 million hectares had been lost during the rush to set up development zones.

The Vice-Premier warned that if all the development zones were to be developed by government investment, it would require at least 4,500 billion yuan.

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