On Sunday a State Council executive meeting discussed methods for pushing forward tax reform in China's countryside.

A statement from the meeting, which was presided over by Premier Wen Jiabao, said that the key to implementing rural tax reform lay in advancing comprehensive rural reforms in the government of townships, compulsory education and the financial systems of town and county governments.

The statement stressed the necessity to test the comprehensive reforms in more rural areas and encourage township governments to focus on rural social management and public services by reducing staff numbers and expenditure.

The statement also called for the improvement of compulsory education reform to ensure financial resources were available for free education for rural students.

On reforming and improving the financial systems of township and county governments the statement promised to transfer more funds to the local level after rural tax reform cuts a large part of their tax income.

The statement also proposed the establishment of a system to monitor farmers' debts.

The meeting discussed and adopted a draft anti-drug law which will be submitted to the Standing Committee of National People's Congress for deliberation after further revision.

(Xinhua News Agency July 3, 2006)