EAST ASIA BRIEF OCPAS EA 87-211 FOR 10 SEPTEMBER 1987

Created: 9/10/1987

OCR scan of the original document, errors are possible

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(AST ASIA BRIEF1 FOR IO SEPTEMBER7

FRO*! PAS.

CONTENTS

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CHINA: NEW GRAIN POLICY PROPOSED S. IN BRIEF

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CHINA! NEW CHAIN POLICY PROPOSED

HOREFORH CHINES! NEWSPAPER PROPOSED

COMPLETE DEREGULATIONRAIN PRICES. REFLECTING EFFORTS IV

7 MRTY ENDORSEMENT FOR THE COMMERCIALIZATION OF AGRICULTURE. THE EDITORIAL CLAIRSREE PRICE MECHANISM WOULD

UNLIKEER-THAN-MAR3ET PRICES THE STATE NOW PAYS. THE ARTICLE SAYS THAT IN ADDITION TO RELEASING THE GOVERNMENT FROM THE EXPENSE OF OVERSEEING THE GRAIN MARKET

THAT

VOUi-0 INCREASE PRIVATE IHYESIMENT IN AGRICULTUREL'S DETERIORATING INFRASTRUCTURE.

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WOULD INITIALLY HAVE TO

COMMENT: THE PROPOSAL IS FAR REACHING AND MAY 61 AN EAJtLY SIGN SOME EXPANSION OF MARKET FORCES IN AGRICULTURE WILL RE IIO AT THE PARTY CONGRESS NEXT MONTH. TO AVOIDPLEASURE WITH INFLATIONAN ISSUE THAT RECENTLYRICE FREEZE ON _

EEZI ON CONSUMERI, MODERATE THE EFFECTS OF HIGHER GRAIN PRICES IV IOOSTING ITS SUBSIDIES TO URIAH CONSUMERS. CONSERVATIVES WOULD ATTACKRAIN ON THE BUDGET--IMICH2 BILLION OEFICIT LAST YEANREFORMERS WILL PROBABLY COUNTER THAT HIGHER GRAIN OUTPUT WILL LOWER PRICES. HELPING CONSUMERS, REDUCING IMPORTS, AND THEREBY OFFSETT"NG

PRICES. HELPING COHS THE SHORT-TERM COSTS

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Original document.

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