The China Quarterly The state relied on foreign exchange originally deposited in the Bank of China branches and affiliates in Hong Kong and Macau to make 4,000 loans worth US$634.82 million between 1973 and 1978. ver To strengthen the state's ability to guide foreign trade production, the leadership established an Investment Fund for Export Product Production in 1973. As part of the Ministry of Foreign Trade's long-term investment rategy, funds were invested in industrial, mineral and agricultural sideline production and processing industries. Funds were only given industries that could guarantee production input requirements (r material, energy and labour), required little prior investment and pro duced goods in demand internationally. In 1973, 94.85 million yuan (rising to 159.51 million yuan in 1975)was invested to finance techno- logical renovations and improve export quality and quantity in promising export industries. 7 While the leadership implemented policies to improve industrial xports, they also improved agricultural sideline production. On 19 March 1973, the State Council approved the State Planning Commission's reinstatement of the agricultural sideline bonus scheme. The bonus schemes had been vilified as an attempt to restore capitalism during the Cultural Revolution. According to the new plan, producers received bonuses for 61 items in short supply on the domestic market, while the export market bonus scheme covered 29 items. The 1970s scheme was not as comprehensive as the post-GlF bonus scheme but did unify the bonus award system for both domestic and export market items. 4 However by the mid-1970s, the"4-3"Is development programme and many of the export promotions schemes were under attack from the politics in command"coalition, which supported a utopian path to development. Jiang Qing, Wang Hongwen and others vehemently criti cized Zhou Enlai's foreign economic policies during the"anti-Lin anti- Confucius"campaign and the repulse the right deviationist wind to 46. Between 1973-1979, 2,010 projects received loans totaling US$247.37 million. See Tan Qingfeng et al. The Practice of Supporting Foreign Trade Product 93-94.104 Export Sourcing, p 90; Li Xiaoxian(ed Duiwai maoyi yuanli yu shiwu jiaocheng(Text on the Principles and Practices of Forei 111-15; gn 48, Guanyu shixing nong- fuchapin tongyi jiangshu banfa de qingshi baogao"(Report and request for instructions on implementing a products"), submitted by the SPC and approved agrIc the state Council on 19 March 1973, in Dangdai Zhongguo de jingji guanli bia PRC S E nent. p. 275: Tan aL. The Practice of suppe 49. Chen Yun, "Liyong guonci fengfu laodongli wenxuan( Chen Yun's Selected Works), Vol 3(Beijing 0. For instance, a Chinese presented with a glass snail. Jiang delegation is criticized the gif and the portation of the colour kinescope production line to the PRC. See Xu Dashen(ed ) Gongheguo shiji, di
reverse the verdicts campaign. " Despite the successful attacks against key post-GLF coalition members such as Deng Xiaoping and Chen Yun, proponents of the modernization path- including Hua Guofeng defended the programme, but further export promotion innovations were delayed until the late 1970s Export promotion: post- Third Plenum initiatives. The primary docu- ment outlining improvements on Plan-oriented export promotion policies following the Third Plenum was approved on 13 August 1979 as State Council document 79. 202, entitled"The regulations regarding problems in putting great effort into developing foreign trade and increasing foreign xchange revenue. Citing d to expand foreign exchange revenue to accelerate socialist modernization construction "document 79. 202 alled on"every area and department [to] use all means available to increase export commodity production and energetically organize foreign exchange receipts obtained from non-trade activities. . "It was among the most important documents issued by the leadership in 1979 Document 79.202 contained 15 regulations. The second of these sought to guarantee export supplies by implementing a contract system between foreign trade units and export production enterprises. It also reaffirmed the five priority"principle first proposed in October 1959. Forgotten during the Cultural Revolution, the policy sought to guarantee the fulfilment of export contract obligations by assigning top priority to export commodity production, procurement and distribution In a similar spirit, the procurement price method for export products was altered by State Council document 79. 206 in order to manipulate production costs and encourage exports. For commodities produced solcly for export, prices were divorced from the domestic sale pric pp.899901 51. For instance, se Politics China,s foreign during the 25 June 1976 Political Bureau meeting: Xu Dashen, A Chronology 52. Lawrence C Reardon(ed ) "Chinas coastal development strategy, 1979-1984() Chinese law and chukou gongyepin gongying zuojia ji ge wenti de qingsh ndustrial products"), State Council document 79. 206, submitted by the states of exo& Material Pricing and approved on 21 August 1979, in Guowuyuan fazhiju(ed. ) Zhonghe renmin gongheguo xianxing fagui huibian, 1945-1985(caimao juan)(Current Laws and Regulations in the People's Republic of China, 1945-1985, (Finance and Trade)(Beijing Renmin chubanshe, 1987), pp. 704-08 54. According to"Guanyu shangpin fenji guanli banfa de baogao"("Report on the divided into three different categories: commodities wh ca and pork) and all others. On 17 October 1979, the approved the minis ions on current commerce work") that reaffirmed the 12 February 1959 classification, in Dangdai Zhongguo de jingji guanli bianjibu, A Chronology of Major Events in the PRC's Economy and Management, pp 122, 364