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CHINA began the Year of the Dog with a note of caution by stressing the need for stability in pushing the bold reform plan forward.

  In his New Year speech carried in all major newspapers yesterday, premier Li Peng championed the 20-word catchphrase adopted by the ruling echelon for this year's work, which seeks to balance the need for ''reform, development and stability''.

  The objective was to ''seize opportunity, deepen reform, open up more, facilitate development and maintain stability''.

  The premier, who returned to the capital after a trip to the booming Guangdong province, did not call for faster growth in his speech at the Great Hall of the People on Thursday.

  In the same vein, party elder Chen Yun spoke of strong central leadership and caution in the reform drive.

  He said at a meeting with Shanghai leaders that the pressing issue of reform was to ''adapt the scale of development to the capability of the state'', hinting excessive growth should be curbed.

  Mr Chen asserted that there should be further room left for development.

  Greater attention should be given to the enhancement of economic efficiency, he said in a China News Service report.

  Acknowledging that many ''difficulty and problems'' existed, Mr Chen said the upholding and strengthening of the authority of the central leadership was the first priority.

  ''If the central leadership lacks authority, nothing can be done. There will be no social stability too,'' he said.

  The cautious remarks of Mr Chen and Mr Li appear to contrast with Deng Xiaoping, known for his strong advocacy of a faster pace of reform.

  He told leading cadres that ''Shanghai has good conditions to be developed faster''.

  In a report carried by the pro-China Ta Kung Pao, the Communist Party chief of Fujian province, Jia Qinglin, quoted Executive Vice-Premier Zhu Rongji as saying during a recent visit that the pace of development in the coastal province ''should be faster than others''.

  According to a mainland analyst, the 20-word slogan on this year's direction has clearly shown the different views of Zhongnanhai and the region over the pace of reform.

  ''The 20-word guideline can be interpreted in different ways,'' he said.

  Repeating the 20-word slogan, the premier told senior cadres everything to be done this year must serve the broad goal.

  He ordered cadres to ''act in accordance with the principles and plans laid down by the Party Central Committee and the State Council, and solve in time any possible contradictions and problems'', according to Xinhua (the New China News Agency).

  Mr Li pinpointed three areas for this year's reform.

  First, he said the implementation of major measures on this year's reform should be organised and planned well in advance, and a macro-control and regulatory system should be improved and established.

   Reform over the operation of state enterprises should be continued to explore effective ways of establishing a modern enterprise system.

  Lastly, the pace of price reform should be enforced in an appropriate way.

     after taking into full account the acceptability of all sectors.



Li stresses cautious reform push