[Xinhua is the Official News Agency of the PRC]

YICHANG (Oct. 23) XINHUA - Chinese Premier Li Peng has inspected the site of the Three Gorges Project, and expressed satisfaction at the resettlement work.

The Three Gorges Project, which was approved at the Fifth Session of the Seventh People's National Congress in 1992 and started in 1994, is projected to resettle a total of 1,800,000 people, who live in the dam area.

The premier said that the success of the project hinges on the resettlement of people surrounding the huge reservoir.

Before the construction work started, Li Peng warned that the resettlement was associated with social stability, and China's image in the world.

During his 4-day visit between October 17 and 20, the premier toured Fuling and Wanxian in Sichuan Province, and Yichang in Hubei Province.

The premier told local officials in Wanxian City and Zigui County that priority should be given to the construction of infrastructure facilities, the relocation of enterprises, and resettlement of citizens, when it comes to the relocation of towns and cities.

He went on to say that the resettlement work should take a practical and realistic approach, since China is not rich enough, and should be thrifty and effective in the way things are run.

He said that governments at all levels should encourage, and protect people's enthusiasm and creativity, and pay compensation timely to those who move.

Many enterprises and departments have already begun to launch projects around the reservoir area. The premier pointed out that it is necessary to create and provide an ideal investment environment for non-local investors, in line with the principle of mutual benefit and reciprocity, and long-term cooperation under the conditions of a socialist market economy.

About 800 projects, involving a total investment of 1.4 billion yuan, are already underway around the reservoir area.

He encouraged people surrounding the reservoir area to seize an opportunity unprecedented in history, to develop themselves, and blaze a new path of casting off poverty and getting rich.