Published by: World Tibet Network News Tuesday, September 30, 1997

By Charles Hutzler, Associated Press

BEIJING, September 30, 1997 (AP) Premier Li Peng served up a vision of China as prosperous, unified and at peace Tuesday as the Communist Party celebrated 48 years of party rule.

Speaking on the eve of National Day, Li sounded conciliatory toward rival Taiwan. He urged the island's leaders political heirs to the losing side in China's civil war to begin talks to end hostilities and reunify with the mainland.

"`Peaceful reunification' ... is our principled position,'' Li told 3,000 party elite, senior officials and foreign dignitaries at a banquet in the Great Hall of the People. "No matter how many difficulties we might encounter on the road ahead, the goal of complete national reunification will be finally achieved.''

Li's tone contrasted with the nationalistic rhetoric he usually displays. Two years ago, he threatened Taiwan with military force and scorned imperialist bullying a veiled attack on the United States. Last year, he assailed Japan for enforcing its claim to a chain of disputed islands.

With Hong Kong having smoothly passed from British to Chinese rule in July and the successful convening of a pivotal party congress two weeks ago, Li, party General Secretary Jiang Zemin and the rest of the collective leadership are feeling proud.

The premier mentioned, but did not dwell on, divisive problems the leadership faces: widening gaps between the rich coast and poor interior, waves of layoffs at unprofitable state industries, growing crime and widespread corruption.

Li noted the government's commitment announced at the party congress to reform the creaky state sector. He cautiously added that needed changes to the banking system, which lends heavily to state industries, would avoid undue risk. He also urged officials to look after the well-being of hard-pressed workers and peasants.

No mention was made of other serious challenges to party rule: simmering unrest in Tibet and predominantly Muslim Xinjiang.

To underscore his theme of unity, Jiang walked into the banquet hall chatting amiably with Qiao Shi, the head of the national legislature, who was ousted from the top leadership at the congress. The two shared a table and clinked glasses to toast the anniversary of the People's Republic of China. [an error occurred while processing this directive] Thousands of ordinary Chinese thronged to Tiananmen Square next to the Great Hall to take pictures and admire huge flower arrangements and fountains set up on the vast plaza. Mao Tse-tung's portrait gazed down from Tiananmen the Gate of Heavenly Peace where the revolutionary leader declared victory Oct. 1, 1949.

"New China has already traversed a glorious course of 48 years,'' Li said. "Under the leadership of the Communist Party of China, the Chinese people of all nationalities, united in a common struggle, have brought about earthshaking changes.''