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283 35 On Economic Work in Beijing1 July 1, 1995 To [Jiang] Zemin, Li Peng: Beijing sought me out to discuss economic work. On June 27 I had a very smallscale meeting and listened to reports by Wei Jianxing,2 Li Qiyan,3 and Zhang Baifa.4 Overall, Beijing’s economy is quite stable and has no major problems. The municipal government drew up a list of things for which they want money. Because the circumstances were not explained very clearly, I asked them to compare notes with the general departments and then come back to me in two months. The spirit you both spoke of many times led me to make the following points to them about Beijing’s economic work: —First, the direction of the capital’s development should be corrected (it is a political center, not an industrial or commercial center). —Second, the understanding of whom Beijing’s services are directed at should be corrected (it should first be the Party Central Committee, State Council , staff employees, and urban residents, not just foreigners and big consumers), and industrial composition must be restructured. —Third, they should remember the big picture and take the lead in being aligned with the central leadership (do not play up “big spending, big projects,” “there’s no limit to liberating our thinking,” and “preventing excessive economic cooling down”) at a time when the central leadership is strengthening macroeconomic controls. —Fourth, development is the ultimate test of truth, but first we must have stability. Scales should not be too large, the livelihood of employees must be assured, and the price increases for public services we had planned to unveil this year should be put off until next year. 1. These were comments Zhu Rongji wrote about economic work in Beijing. 2. Wei Jianxing was then a member of the Party Central Committee’s Politburo and Party Secretary of Beijing. 3. Li Qiyan was then Mayor of Beijing. 4. Zhang Baifa was then Vice Mayor of Beijing. 284 On Economic Work in Beijing Zhu Rongji’s comments on economic work in Beijing, written on the cover page of an executive summary on that subject. On Economic Work in Beijing 285 Jianxing has indicated that he agrees with these points. I hereby report for your review and approval. Zhu Rongji ...


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