The Speech of Mr. Fan Zhiquan, the Spokesman
For the Ministry of Land and Resources
At the Press Conference of the State Council Information Office

May 31, 2000

Ladies and Gentlemen, Friends:

It is a pleasure to have the opportunity today to brief you on the development and utilization of national land and resources as part of the Grand Development Plan of Western China.

Implementation of the Grand Development Plan of Western China is an important decision oriented toward the new century. Geographically, development of western China focuses on the vast territory on the western side, including the central areas. For this part of China, especially the western areas, the most outstanding advantage lies in rich land and resources, promising huge potentials for development. In implementation of the development plan of Western China, the rational development and utilization of land and mineral resources is of key importance.

As a functionary agency under the State Council and charged with management of national land and resources, the Ministry of Land and Resources has put implementation of the development plan on top of our agenda. We have set up a special leading group for development of Western China and have formulated a draft plan of development and utilization of national land and resources in Western China, setting the overall objectives in this regard. Our commitment is to have national land and resources play a fundamental role in development of Western China, to support and serve infrastructure build-up, ecological improvement and environmental protection, and to promote the transformation of resources advantages into economic advantages.

It is our opinion that the development of national land and resources in Western China must be based on sophisticated planning, hi-tech means, efficient utilization and highly-attractive policies in order to achieve the best social, environmental as well as economic effects. After thorough research and scientific analysis, we have also set out some basic principles. The first principle is to coordinate development with protection. The holistic utilization of resources must be promoted and ecological restoration from farmlands must be conducted in a rational and sequential manner. The second principle is to let the market allocate national land and resources with proper government regulation. Market demands must be combined with resources advantages to develop competitive and specialized resources economy. A system of paid use of land and mineral resources must be promoted vigorously, with the establishment of land markets and mining-rights markets. A dual incentive regime must be instituted, combining the benefits of resources development and capitalized values to attract a diversity of investors in national land and resources development. The third principle is to persist in wide-ranging opening up. A boost of proprietary development ability must be combined with an expansion of opening up to bring the economy in Western China into the wider world economic operation. Domestic and foreign capital, technology, talent and management expertise must be introduced on a large scale, and at the same time local advantages must be realized to "step outside" and participate in international cooperation. The fourth principle is to pursue scientific and technological innovation. Scientific and technological advances must be used to make an intensive and efficient use of national land and resources. The fifth principle includes positioning on local conditions, prioritizing key issues, holistic planning and step-by-step implementation. Long and medium-term development of resources must be combined with addressing the major issues for this moment in order to achieve a balance among speed, efficiency and potential.

I am willing to take your questions.