Speech by Li Liguo, Vice Minister of Civil Affairs

January 11, 2007

Ladies and gentlemen,

I am very delighted to meet with friends from the press here today. Now I would like to give you a brief account of natural disasters on three dimensions.

1. An overview of natural disasters in China in 2006

2006 was yet another rough year for China with a tragic trail of natural disasters. Disasters of almost every kind and of varied intensity have ravaged China. Typhoon, floodwater, drought, wind & hail, earthquake, cold and frost, snow disaster, landslide, mud & rock flow, pest & disease damage, among others, have incurred enormous life and property losses. Disasters have left 3186 people dead, 13.845 million people displaced and relocated and 41.0913 million hectares of crops damaged (of which 5.4089 million hectares have totally failed). 1.933 million houses have fallen down and 252.81 billion yuan worth of economic losses have been directly incurred.The hardest hit areas include Zhejiang, Fujian, Jiangxi, Hunan, Guangdong, and Sichuan provinces as well as Guangxi Zhuang Autonomous Region and ChongqingMunicipality. If we look at the recent history, natural disasters in 2006 left the most tragic trail as of 1998. The disaster fatalities and direct economic losses in 2006 reached a record high in the last 8 years since 1999, the population displaced and relocated was second only to that in 2005, and the number of houses that caved in recorded the third largest, only following that in 2003 and 2005.

Timeline of National Disasters and Damages since 1998

Unit: 10,000 persons, 1,000 hectares, 10, 000 houses, 100 million yuan

2. An overview of disaster relief and donation drives in 2006

Disaster relief was high on the agenda of the CPC Central Committee and the State Council in 2006. The Standing Committee of the Political Bureau and the executive meeting of the State Council both renewed commitments to mull over disaster prevention and relief programs. Secretary-General Hu Jintao highlighted the efforts to ensure the basic well-being of disaster-hit communities and renew commitment to rehabilitation and reconstruction endeavors in his address at the recent 6th Plenary Session of the 16th CPC National Congress. The Decision adopted at the Plenary Session underscores the efforts to improve emergency management mechanism and social security system and guarantee social fairness and justice, identifying these endeavors as part and parcel of the program to build a harmonious socialist society and rolling out clear-cut plans and requirements in this aspect. Secretary - General of the CPC Hu Jintao, Premier Wen Jiabao, Vice Premier Hui Liangyu and State Councilor Hua Jianmin made essential instructions on disaster relief efforts on many occasions. Premier Wen Jiabao went to offer compassion and solicitude in person and inspect the progress of disaster relief efforts in the disaster affected communities of Hunan, Fujian and Sichuan provinces, Ningxia Hui Autonomous Region and ChongqingMunicipality. Vice Premier Hui Liangyu also visited the disaster-hit communities in Jiangxi, Hunan, Guangdong, Sichuan, Fujian and Zhejiang provinces and Guangxi Zhuang Autonomous Region. During the inspection tours, he checked and instructed disaster relief initiatives on the ground, giving an enormous boost to the morale and confidence of the local governments and civil society in disaster-stricken communities to defy disasters and rebuild their homes.

In response to devastating natural disasters, party committees and local governments at every level in the disaster-ravaged communities launched contingency plans in the immediate wake of natural calamities. Full-scale disaster relief taskforces were up and running in no time. The local leadership instructed taskforces on the ground to ensure the disaster relief efforts were well organized and delivered. The civil affairs communities at the grass-roots level all pulled together and came to the forefront in disaster rescue and relief. They relocated disaster-hit population to safer places, assessed damages and reached out to the victimized. With their commendable dedication, the disaster relief supplies in cash and kind reached those in need in due course to ensure their safety and subsistence.

Under the strong and effective leadership of the CPC Central Committee and the State Council, Ministry of Civil Affairs pursues the work ethics of “putting people first, helping people out and serving people well”. The MCA delivered upon the instructions of the central leadership and remained committed to disaster relief and subsistence for the disaster-ravaged communities and supported post-disaster programs with what it could possibly offer.

(1) Timely operation in pooling, analyzing and assessing information concerning disaster damages. The MCA improved the mechanism of joint consultation and verify and report on disaster damages. At the outset of the year, it brought together experts and relevant departments to forecast the annual trend of disasters and the most vulnerable areas. The MCA organized competent departments to analyze the characteristics and trend of disasters on a monthly basis. Before and after a devastating disaster struck, the MCA gleaned information about disaster damages and relief on the ground as soon as possible and convened emergency consultation meetings in due course to brainstorm for countermeasures, feeding hands-on and most prompt information for emergency decision-making.

(2) Timely operation in launching emergency response plans. In 2006, the MCA launched emergency response programs 40 times in 17 provinces, including 8 Grade-3 responses and 32 Grade-4 responses in a long span of 132 days. As part of its emergency response efforts, the MCA launched contingency plans 8 times in response to typhoon and flood disasters in Fujian alone. The total emergency responses in 2006 outnumbered those in 2005 and 2004, which registered 30 and 12 respectively. 60 disaster relief taskforces were dispatched by the MCA independently or collectively. Following the launch of emergency response, taskforces were able to rush to the disaster site within 24 hours or even few hours in some cases, to obtain hands-on information and get about disaster relief efforts.

(3) Timely operation in allocating disaster supplies and donations in both cash and kind. As part of the efforts to support disaster relief, the MCA and Ministry of Finance have raised disaster relief allowances from the coffer the Central Government. In 2006, subsistence allowances worthy of 5.102 billion yuan were earmarked to sustain the disaster-hit communities. The MCA allocated 44,120 tents to the disaster-stricken communities to meet immediate needs of evacuation. Normally emergency funds from the central budget could reach where they were needed within 7 days. Aside from the prompt delivery of tents in the wake of a disaster, the MCA also prepared against rainy days by allocating 10,000 tents to the vulnerable areas based on the forecast trend and projected needs.

(4) Timely operation in launching disaster relief joint mechanism. In the wake of devastating natural disasters, the MCA played out its role as a facilitator in nationwide disaster relief programs to harness the synergy of Ministry of Finance, the NDRC, Ministry of Water Resources, Ministry of Agriculture, Ministry of Communications, Ministry of Land and Resources, Ministry of Education and Ministry of Health in reaffirmed commitment to disaster relief endeavors. Altogether 11.198 billion yuan were channeled from the central coffer to support the basic well being of the disaster-hit communities and the rebuilding of caved-in houses, damaged infrastructure and public utilities.

(5) Timely operation in the information release on disaster damages and relief. In the wake of devastating natural disasters, the MCA filed timely reports to the State Council on disaster damages. During the flood season, the MCA filed reports on disaster damages and relief before 16 PM on a daily basis. Following the launch of the National Contingency Plan for Natural Disasters, the MCA released Report on Disaster Damages and Relief to the public in time. The MCA also issued Bulletin on Monthly Disaster Damages of the MCA based on the results of consultation meetings.

(6) Timely relief for the basic well being of the disaster-hit communities. As part of the efforts to ensure subsistence and basic well being of the victimized during the springtime without crop harvests, the MCA and Ministry of Finance earmarked a total of 1.5 billion yuan as spring relief funds which benefited 55.71 million disaster-stricken population in 2006.

During the wintertime in 2006, 78.27 million disaster-affected population across China were in urgent need of relief funds for subsistence, an increase of nearly 10 percent from 2005. Relief supplies of clothes and quilts were needed for 20.41 people, and medical treatment was required by 5.71 million people. This represented one of the heaviest wintertime relief workloads in recent years. As part of the efforts to ensure the basic well being of the disaster-affected communities, the MCA and Ministry of Finance diverted a total of 1.67 billion yuan as relief funds, the highest ever recorded for wintertime relief programs in China. In the leading up to the depth of wintertime, the MCA convened two consecutive teleconferences recently, rolling out programs to help the disaster-affected communities live out the harsh winter days. Local authorities were prompted to expedite the allocation of relief funds from the central coffer the local budgets and regulate the grass-roots delivery in ways that the wintertime relief funds could reach those in need in time and in full. With these relief funds in place, the disaster-stricken communities could keep hunger and cold at bay over the hump of harsh wintertime.

At this point, local authorities are picking up steam in full-scale wintertime relief programs. All the relief funds form the central coffer have reached the county level. The local civil affairs authorities at the county level are working on allocation programs for the moment. The relief funds are now in the hands of those in need or right on the way and other relief measures are also being phased in.

(7) Timely operation in the rehabilitation and rebuilding of damaged houses. The devastating natural disasters left many houses damaged in 2006. 1.888 million houses need rebuilding, which is obviously a hefty mission. By far, almost all the reconstruction projects in disaster-stricken communities have been kick-started. 1.722 million houses have been rebuilt, making up 91.2 percent of the total to-be-rebuilt houses. Those households with damaged houses but yet rebuilt due to poor weather conditions have also been relocated in stopgap living quarters to live out winter. As part of the efforts to support the recovery, rehabilitation and reconstruction, the MCA joined Ministry of Finance to allocate a total of 998 million yuan as special funds for the endeavor in 19 disaster-stricken provinces and autonomous regions. The party committees and governments at all levels in the disaster-ravaged communities also increased their input, supplemented by a host of incentives to support the endeavor. The MCA convened an on-site workshop on rebuilding of damaged houses in parts of China in Hengyang City, Hunan Province last October to instruct and oversea the endeavor. At the workshop, the MCA required that local authorities ensure that a warm house is available to each disaster-affected household prior to the arrival of winter and that newly built or rebuilt houses are available to them before the Spring Festival. Local authorities were also required to facilitate and organize the rebuilding endeavor, manage and oversee the process and make every earmarked penny count so that the disaster-affected population could find a shelter to live out winter. As things stand now, the party committees and governments at different levels in the disaster-stricken communities are setting store by the reconstruction endeavor by developing and delivering effective relief measures. We anticipate that reconstruction projects can be largely accomplished well before the Spring Festival.

(8) Proactive in embarking upon donation drives.The public donation drives to “offer love, warmth and compassion” have now been made regular and institutional. In October 2006, the MCA worked with 6 Ministries or Departments, including the Publicity Department of the CPC to embark on a nationwide donation drive to “offer love, warmth and compassion” at a teleconference. Since the launch of the donation drive, CPC members and people from all walks of life outpoured their generosity and compassion to donate in cash and in kind for the underprivileged and particularly for the disaster-affected population. 47.699 million yuan and 230,000 pieces of clothes and quilts were donated from departments and public institutions representing the party, the government and the military.. The donation drives of the same kind were simultaneously kicked off in most parts of China. The result was just impressive: 1.089 billion yuan and 45.9061 million pieces of clothes and quilts as well as 110 million yuan worth of other disaster supplies were pooled. The public donation drives to “offer love, warmth and compassion” have now been made regular and institutional. Statistics show that donation drives of all kinds resulted in 3.589 billion yuan in cash, 70.56 pieces of clothes and quilts in kind and 469 million yuan worth of other disaster supplies from the civil society in 2006.

Thanks to the concerted efforts from all sides, the disaster-stricken communities now live in stability, the basic well being is guaranteed and the rebuilding endeavor is in steady progress.

3. Programs concerning the livelihood of the urban and rural poor during the holiday season

2006 was a rough year for China with a tragic trail of natural disasters. Coupled with the surging prices of grain, edible oil, meat products and vegetable in the market and the price rise of resource-based daily necessities, including water, power, coal, gas supplies and heating expenses, the burden of living out this winter has been acutely felt by both the urban and rural poor. As the Spring Festival is drawing near, the livelihood of the rural and urban poor has emerged as the spotlight for the central authorities and the civil society alike. For that matter, the MCA sent emergency telegraphs on December 31, 2006, rolling out special programs for delivery by local civil affairs communities. The programs are as follows:

(1) Renew commitment to disaster relief effort and ensure basic well being of the disaster-ravaged communities. 1/2 kilogram grain ration shall be made available to the victimized population per head per day. The local authorities shall expedite the progress of rebuilding of those damaged houses. Those communities that cannot deliver rebuilding projects shall come up with effective alternatives to provide warm stopgap shelters, rather than relief tents, for those victimized. Local authorities in the disaster-affected northern areas and cold-prone disaster-affected areas in southern parts of China shall make sure that the victimized population can live out harsh winter in warm shelters. With donations in cash and kind from nationwide drives, they shall make winter clothes and bedding available to the affected people, and deliver heating devices and fuel supplies to them so that they can keep cold at bay and enjoy a decent festival with enough grain ration and meat products on the table.

(2) reaffirm commitment to special relief programs targeting the YouFu group (service men and women, either disabled, incumbent or retired and families of revolutionary martyrs), the urban and rural poor, the rural households supported by “five-guarantee” government subsidies, the households in dire poverty and wanderers in cities, ensuring a heart-warming spring festival for them. As regards the YouFu group, we will move forward with relevant supporting policies defined in the newly revised Regulations on Preferential Treatment to Men and Women in Uniform, and put the regulations concerning their immediate interests in place. Special treatment subsidies shall be offered in time and in full in keeping with the new policies so that the YouFu group could enjoy a better-than-average life in their local community. As regards the urban dwellers living on subsistence allowances, the local authorities shall closely watch the dynamics of grain prices and develop fitting solutions that may include the adding dynamics-based allowances to ensure that these underprivileged groups enjoy a decent life during the holiday season. As regards the rural households that enjoy “five-guarantee” government subsidies and those living in dire poverty, the local authorities shall follow the newly released standards of five guarantees to check the delivery and availability of special funds. As for those areas that have in place the rural subsistence system, the local authorities shall see to it that the allowances reach those in need as soon as possible before the Spring Festival in line with local standards. As for those areas without the subsistence system, the local authorities shall deliver upon the decision by the central authorities to phase in the subsistence allowance guarantee system in rural areas and ensure the temporary relief funds could reach the hands of those living in dire poverty before the holiday season starts. As regards those urban and rural poor who are eligible for medical relief programs, medical care relief shall be offered in time. As regards wanderers in cities, the local authorities shall ensure their basic well being and arrange either proper placement or send them back to their hometowns.

(3) Stay committed to heart-warming & generosity programs of all kinds to heighten the public awareness of helping the needy over the hump.

(4) Prepare well-organized new-year visits to the underprivileged households and the YouFu group. Local authorities shall focus on checking how relief programs and measures are delivered and what difference these programs have made, while conveying the care and concern of the Party and the government during routine visit tours.