Shanghai issued new rules recently to regulate the working process of city government, with the goal of building a more efficient body. The government encourages and supports the setting up of discount drugstores, making it easier for big discount drugstores to provide cheaper and high-quality medicine, Jiang Lan, a government spokesman said in a press conference today.

Jiang also answered reporters' questions.
STV News: It is reported that local restaurants smaller than 50 square meters would be closed or transformed into snack stores, which is likely to make many people lose their jobs. What are the measures the government is going to take? We are concerned about the cooperation between Shanghai and Hong Kong, and it is said that Mayor Han Zheng will lead a delegation to visit Hong Kong. What's the time and purposes of the visit?

Jiang Lan: The Shanghai Health Bureau published a notice on July 30 requesting the closure of restaurants smaller than 50 square meters as of June 2004 in an effort to strengthen management of food safety. The regulation was a guideline rather than a must-do directive. Shanghai will still adopt original regulations to manage such small restaurants. Above all, the Shanghai Municipal Government is paying much attention to food safety for the sake of residents' health, and will continue to conduct strict management of food sanitation by perfecting existing regulations to ensure food safety for locals.

For the second question, Hong Kong has become the largest overseas fund source for Shanghai, with growing commodity trades and expanding service cooperation between the two cities. Shanghai is paying much attention to the relationship with Hong Kong, and adheres to the central government's Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA). The city is currently busy studying measures to implement CEPA and boost financial trade cooperation with Hong Kong. Shanghai leaders met Tung Chee-hwa, Chief Executive of Hong Kong Special Administrative Region, in the city a couple of days ago, to exchange ideas on bilateral cooperation and arrange further contact with each other at the right time for enhancing financial trade cooperation to promote mutual development.

Radio Shanghai 990: Much information was released today on the admittance of discount drugstores. Are there any measures to guarantee the drug quality? Most patients go to see a doctor and get drugs at hospitals. Are there any preferential policies for hospital drug prices?

Jiang Lan: The government will support discount drugstores, but it is not equal to say that the existing ones are perfect. For example, we will support big discount drugstores such as Kaixinren, as they are playing a positive role in enhancing the reforms of the local medical distribution system and benefiting local residents. We should also strengthen supervision of such drugstores and help them meet the Generalized Special Preferences (GSP) standard to ensure the drug quality.

The second question is relatively complicated. Hospitals are currently playing a major role in drug retail, so the problem should be solved through deep reforms of the local medical insurance system, medical treatment institutes and the drug production and distribution system.

News Channel of Shanghai Oriental Radio Station: How's the construction of the RT No. 4 going on? How will the government deal with the accident site? Will the original builder continue to take charge of its construction? And will there be any influences on the original construction schedule and cost?

Jiang Lan: The relevant government departments made an immediate investigation into the accident when the RT No. 4 line accident took place. Currently, the investigation is still going on. As for whether to restart the project at the original site or make other alternatives, the government will study the case and take responsible actions. But I'm sorry I have nothing so far to tell you about the plan.

CCTV-2: My first question is about the government's recent restriction on high-rises. As far as we know, it's said that the project of the global tallest building will be affected by the mew policy and will suspend construction? Will projects approved last September be affected by the policy? Will the government provide compensation for losses occurring to the projects which have started construction and will be affected by the new policy? What influences will the restrictive measures on high-rises make on investment and prices of the housing market?

Jiang Lan: Shanghai government is making research to restrict construction of high-rises and reduce densities of buildings, and will unveil some measures regarding this issue. The government will soon hold a planning work conference, at which I think these policies will be announced. The new restrictive policy is in line with the requirements set in Shanghai's urban planning program approved by the State Council. Under the program, Shanghai plans to add public greenland in the downtown area, add public activity spaces and reduce the height and density of high buildings. This is to ensure an orderly, healthy and sustainable development for the city. I don't think the policy will influence the housing market in the downtown area. Instead, it will help improve the development environment there. As for the projects that are under construction or those that have been approved but are required to make necessary adjustments, we will respect history and treat them practically and realistically. We'll use policy as a guide to resolve them. I'm not clear about all the cases. But, in short, all these issues will be resolved legally and appropriately.

Laodong Daily: The nation's supreme court's newly released judicatory explanation in June regarding housing disputes has resulted in a rising trend of housing lawsuits in cities such as Wuhan. Is there an increase of similar cases in Shanghai since June? And are there any cases that have concluded?

Jiang Lan: I don't think I'm quite the right the person to answer your question. You may check it with local courts. That won't be difficult.

Taiwan TVBS: People in Taiwan are attaching great attention to the progress of the one-time pass and visa policy. Would you please tell us as soon as possible about the timetable for the new policy?

Jiang Lan: It's obvious that people in Taiwan are paying great attention to the visa issue and seem quite eager for the policy. Journalists from Taiwan raised the same question at the press conference held by the Taiwan Affairs Office of the State Council a few days ago. I'm sorry I can't give you a detailed timetable yet today. But I think that will come out soon.

Jiefang Daily: By what criteria does the municipal government determine a drugstore is a "discount drugstore"? What price discounts on the medicines will make a drugstore a "discount drugstore"?

Jiang Lan: You may turn to the drug administration for definition of a "discount drugstore". But I think a principle that works here is that price-cut doesn't make the only criteria for a "discount drugstore". What we are encouraging are "discount drugstores" that provide benefits to the people, that help carry on the medical reforms and that work to push ahead reforms in the drug distribution sector.

China Daily: It is mentioned in the new governmental work regulation that the municipality will seek consultation and suggestions from its think-tank, experts and scholars before making important decisions. My question is: How does the government make sure that the opinions of the experts and scholars are transferred to the decision-makers? Is there any working procedure or organ that can ensure the messages are transmited? I learned during my interviews that there is a marsh near the de-commissioned Jiangwan Airport in Wujiaochang area. Due to man-made factors, the environment there has destroyed and the marsh it is near extinction. Is there any plan for ecology and urban re-construction development concerning this issue?

Jiang Lan: We already have a mechanism that can make sure the government will let the think-tanks, experts and scholars play their role in making important decisions. During the decision making process, the government will first turn to its think-tank, experts and scholars for their consultation and evaluation, and afterwards, make the decision. So you needn't worry. The pre-decision making evaluation and consultation will not be an empty form.
On your second question, there have been long disputes on this issue. If the development project, possibly some real estate development projects, should have started in Jiangwan Airport, this fact explains that the project must have gone through careful evaluations before it was approved by related organs. However, I'm not quite clear about the situation on this issue. If you really wish to know more, I will check it.

News channel of East Radio: Previously some drugstores have united to force out economy drugstores. If this situation should occur again, what measure will the government take?

Jiang Lan: Now the situation is much better. There is always an adaptation process when a new thing or phenomena appears. In the newly publicized measurements, the government requires the related drugstores to have a proper understanding of the economy drugstores. The government function on the drug market is mainly one of regulating and guiding, instead of taking direct measures to participate in the operation. In fact, the situation now is that normal drugstores are not forcing economy drugstores out of the market; instead, they are following the economy drugstore to cut prices.

Shanghai Morning Post: Recently I heard that an economy drugstore planed to open business in a downtown area. However, this plan was aborted because there is a big state-owned drugstore nearby. The question is, is there any regulations on the location of economy drugstores and their distance from state-owned drugstores? Is there any time limitation on the approval?

Jiang Lan: I suggest you turn to the medicine supervision bureau on the question. On the level of the municipal government, we are not clear about these detailed situations. I know there is a guidance governmental opinion on the location of economy drugstores. It's not imperative where the economy drugstore should open their business. But we offer guidance and suggestion on where is the suitable location for a drugstore.

Labors' Daily: How long it will take before the economy drugstores can be included in the dedicated medical insurance drugstores system? What effects will it have on the drugstores in hospitals when the economy drugstores are included in the medical insurance?

Jiang Lan: Today many questions are raised on the issue of economy drugstores and medical insurance. Because the information I know is limited, and the media wish to know more details, we have invited officials from the medical insurance bureau and medicine supervision bureau to the press release. You can ask them after the release.

Takungpao (Hong Kong): My question is about the cooperation between Hong Kong and Shanghai. It is said the Shanghai Mayor Han Zheng will visit Hong Kong. Will you reveal some details about it? Will Han meet with Mr. Dong Jiahua? When will Han make the visit? Which of officials in Shanghai municipal government will be on the visiting team?

Jiang Lan: The municipal government has not made any declaration that mayor Han Zheng will visit Hong Kong, neither have we said that any of the officials in the city government will visit Hong Kong. I have said all that I know on this issue when answering the previous question from another reporter.

CCTV2 Economy Channel: Recently, a succession of accidents has occurred to the Shanghai metro line. Is there any problem in the management of the related department?

Jiang Lan: I suppose there is some problem. As accidents and problems occur in high frequency in the short period, there probably is some problem in management. But the reason is complicated, not so simple. The municipal government has attached much importance to the problem. The related departments, as well as some experts in this field have put forward their proposals for improvement. The management department of the metro line is urged to find out the reason and work out responsive plans. They are requested to enhance the maintenance of the metro line to guarantee smooth transportation. More concern should be placed on safety issue during the weeklong holiday following the Nation Holiday.