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[03/02/1998 - 03/31/1998]

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Extracted text

OCR Page 1 of 62
F:\Cable\Data_Source\Cables\CD030\MAR98\MSGS\M3175412.html Page 1 of 5 Cable PREC: ROUTINE CLASS: UNCLASSIFIED LINE1: RAAUZYUW RUEHLZA0028 0610904-UUUU--RHEHAAX. LINE2: ZNR UUUUU ZZH LINE3: R 020904Z MAR 98 LINE4: FM AMCONSUL LEIPZIG OSRI: RUEHLZ DTG: 020904Z MAR 98 ORIG: AMCONSUL LEIPZIG TO: RUEHC/SECSTATE WASHDC 0446 RUEHOL/AMEMBASSY BONN 0708 INFO: RUCNFRG/FRG COLLECTIVE RUEHBW/AMEMBASSY BELGRADE 0046 RUEHUB/USINT HAVANA 0032 SUBJ: LEIPZIG WEEKLY REPORT, FEBRUARY 21 - 27, 1998 SENSITIVE BUT UNCLASSIFIED - PROTECT ACCORDINGLY TEXT: UNCLAS SECTION 01 OF 03 LEIPZIG 0028 SENSITIVE BELGRADE FOR QUINTUS HAVANA FOR LINDERMAN E.O. 12958: N/A TAGS: ECON, PGOV, PREL, MARR, GM SUBJECT: LEIPZIG WEEKLY REPORT, FEBRUARY 21 - 27, 1998 SENSITIVE BUT UNCLASSIFIED - PROTECT ACCORDINGLY I. ECONOMIC BIEDENKOPF'S ECONOMIC ADVICE SOUGHT IN CHINA 1. (U) MINISTER-PRESIDENT KURT BIEDENKOPF (CDU) AND 20 LOCAL BUSINESS REPRESENTATIVES FROM SAXONY ARE CURRENTLY TOURING CHINA, AT THE INVITATION OF ZHU RONGJI, WHO PAID A STATE VISIT TO DRESDEN LAST YEAR. BIEDENKOPF TOLD HIS HOSTS ABOUT EASTERN GERMANY'S EXPERIENCES IN TRANSFORMING A PLANNED ECONOMY INTO A MARKET ECONOMY. HIS MAIN POINT WAS THAT LARGE STATE-OWNED ENTERPRISES ARE "NOT SUITED" TO TODAY'S ECONOMY. HE SAID THAT DELEGATING MORE POWER AND RESPONSIBILITY TO THE PROVINCES WOULD "EASE" THE REFORM PROCESS IN CHINA, NOTING THAT THE DECENTRALIZED STATES IN EUROPE HAD PROVEN MORE FLEXIBLE AND CAPABLE OF REACTING TO MARKET FORCES. THE MINISTER-PRESIDENT ALSO DISCUSSED THE SOCIAL CONSEQUENCES OF THE TRANSFORMATION

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