1. Shanghai Morning Post: With the Spring Festival around the corner, can you guide us about the preparations of goods to be supplied during the holiday? It is recently reported that Zhou Zhengyi will remain out of custody and obtain medical treatment. Can you provide us with the details?

Jiao Yang: Local residents are concerned about the holiday market. The Shanghai Party Committee and Shanghai Municipal Government always pay much attention to the supply of goods during the holiday in order to guarantee a safe and happy Spring Festival for local citizens. The Shanghai Economic Commission will ensure adequate food supplies and safety during the holiday. Above all, enough goods should be prepared to meet the following requirements:

First, producing daily consumer goods for winter and focusing more on the supply of staple and non-staple food. Local companies should produce commodities which are widely sold, so as to guarantee enough stocks. State-owned or state-holding companies have produced 32,000 tons of grain and edible oil, 3,000 tons of meat and eggs, 26,000 tons of vegetables and 8,000 tons of wet products for the Spring Festival holiday, up 5-10 percent from the previous year.

Second, overcoming the negative impact and difficulties caused by bad weather such as rain and snow and requiring companies to obtain vegetables from other provinces and the suburban areas in order to increase stocks and control the increasing price of vegetables, with more than 80 varieties of vegetables being promised for the holiday.

Third, strengthening market inspection procedures to ensure food quality. The local industrial and commercial administration, food supervision and quality inspection departments have enhanced security checks in piggeries, supermarkets and food markets. Therefore, Shanghai's holiday market is generally safe with the availabilty of products of good quality.

The answer to your second question is that we have actually noticed reports both on the Internet and by overseas media. As far as we know, these reports are inaccurate. Zhou Zhengyi doesn't remain out of custody or obtain medical treatment.

2. Mail Business Newspaper: Shanghai Electric Group (SEG) will soon be listed overseas. It is the first state-owned enterprise (SOE) approved for overseas listing after the suspension of management buyouts (MBO). Can you tell me whether there is a certain timetable in Shanghai for SOEs to be listed overseas? Besides SEG, are there any other SOEs to follow suit this year? Are there detailed schedules for Shanghai SOEs to introduce overseas strategic investors? How many investors will be introduced and what will they invest?

Jiao Yang: As far as I know, there is no such timetable as mentioned by you. Listing of SOEs should stick to the principals of a good market mechanism and should also be profitable. All of you are concerned about the complete reforms of SOEs. Last year, following the requirements of the local government and the general policies of the Chinese reforms on SOEs, the reforms of SOEs in Shanghai were achieved in an orderly manner. In this context, I can brief you about the situation. The data of last year should be released by the National Bureau of Statistics, so I cannot disclose them here. In the year 2003, Shanghai's total state assets were valued at 620.302 billion yuan (US$74.7 billion), up 12.9 percent as compared to the previous year, with the growth margin being 4.3 percentage points higher than the previous year. Local SOEs reported total production valued at 155.369 billion yuan in 2003, up 11.7 percent from the previous year, with a total profit of 22.561 billion yuan, up 26.4 percent. According to the preliminary statistics, the figures of last year surpassed those of 2003, and the data will be released at the next press conference on Shanghai's national economy and social development. With the state assets on the rise, industry distribution, asset centralization, stock right structure and asset qualities have largely been improved.

3. China Daily: The first of Shanghai government's good deeds this year is to create 500,000 new jobs. Where are the jobs to come from? How many households of farmers are there in Shanghai now? The second good deed is to establish medical treatment centers for health insurance beneficiaries in sub-districts, county and town levels. Can you tell me more about the centers? The third good deed is to offer home-care services for the elderly. Will the services be paid for by the government?

Jiao Yang: Shanghai government's first of the top ten good deeds this year is to enhance employment. Shanghai will continue to perfect the social employment responsibility system, combine the government's responsibilities with a market mechanism, and encourage residents to create their own businesses in order to enhance employment. The city plans to create half a million new jobs this year. To enhance non-farming employment in rural areas, Shanghai will provide at least 100,000 non-farming job opportunities for the households of farmers this year. Currently, Shanghai has had 200,000 households of farmers. The city and district-level governments will enhance the program financed by special funds for employment promotion. The Shanghai Labor and Social Security Bureau and local district and county-level governments will be responsible for the program.

Where the second good deed is concerned, more medical treatment centers will be built at the sub-district, county and town levels to serve 7.3 million health insurance beneficiaries. Presently there are 21 medical insurance service outlets in local districts, sub-district, county and town levels, which cannot satisfy the demand of local residents. In order to satisfy the demand specifically from the elderly, the sick and disabled, 10 standard medical insurance service centers will be established in city, district and county levels, in order to expand service channels and improve the convenience of local medical insurance services. The Shanghai Medical Insurance Bureau will be responsible for the program.

This year's third good deed is to serve the elderly. Shanghai is facing a severe aging problem and it's the key work of the government to help and care for local senior citizens. According to the regulations, nearly 1.4 million senior citizens aged more than 70 will enjoy preferential policies including: priority for registration for outpatient and inpatient services in local hospitals; discounts of admission tickets in Shanghai Zoo, Shanghai Wild Animal Park, Shanghai Daguanyuan Park, Sheshan National Forest Park and Yuyuan Garden; free tickets at all the other parks and price discounts in some local cultural sites. Shanghai Civil Affairs Bureau will be responsible for the program, with the cooperation of Shanghai Civilization Office, Shanghai Public Health Bureau, Shanghai Green Land Administration Bureau, Shanghai Office for Retirees and Shanghai Media Group. Moreover, the city will allocate more home-care services for the city's 160,000 elderly residents who live alone, door-to-door services for 30,000 senior residents who need care from others and install emergency call facilities for 10,000 elderly families. Shanghai will also improve service facilities for the elderly by adding some 6,000 beds to nursing homes and build or renovate 300 standard entertainment centers for the elderly. Shanghai Civil Affairs Bureau will also be in charge of the program.

4. Construction News:  How big is this year's budget for key projects?  Compared with last year, will this year's budget increase or decrease?

Jiao Yang:  I must explain that the information about the key projects can only be published after being scrutinized by the People's Congress. In this respect, whatever I have published today is concerned with last year's projects and the general guideline of this year's plan.  In general, what we pay more attention to is the quality of the projects rather than the quantity.

5. Shanghai Securities News: Can you talk about the deal that SAIC increases its stake in SVA?  Since 2004, the state-assets reform has been reinforced.  What's the trend for the new year?

Jiao Yang: Great interest has been cast on state-assets.  Since stake increase is a corporate act, it must be operated under the market mechanism. I have briefed you about Shanghai's development in state-assets.  Since 2003, the city's state-assets reform has involved 200 billion yuan, disposing 23 billion yuan of bad assets.  Brilliance, Jinjiang, Shanghai Electric, Nonggongshang and Shanghai Light Industry have reaped benefits after the reform.  Sales of these companies saw an average 25 percent increase from the previous year, with the profit of Jinjiang doubling to its record high.  That has proven what I just said, that is, the state-assets reform is progressing steadily and doing well.

6. Eastday.com:  With the upcoming Spring Festival, when will the travel peak period start?  What measures will Shanghai adopt to ensure that migrant workers return home safely?  Another question, in what areas is the urban agriculture, which Shanghai is engaged in, distinguished from general agriculture?

Jiao Yang: Shanghai has already started its preparatory work for the spring travel's peak period. Thanks to Shanghai's good job in the past year of clearing the overdue pay to migrant workers. Many of the workers have left the city for their homes shortly after receiving their pay. Rather than handling the travel peak as an emergency situation, Shanghai operates it with a long-term management system.  The railway system and related departments, having prepared response plans, are working to ensure a safe return for these workers.

I mentioned urban agriculture when deliberating on the farmer's income issue.  Shanghai's urban agriculture has three major functions:

First, it ensures the city's supplies.  To ensure supplies, enrich life and control prices, we will continue the infrastructural construction of suburban agricultural bases.  Particularly, we will improve the standardization of production capability of the year-round vegetable bases, which total 500,000 mu. We aim to construct another 1,000 hectares of agricultural bases mainly for green vegetables.

Second, it helps improve the city's environment.  We will re-plan the city's farmland to geologically pool the farmland together for massive operations.  We will take three years to construct 1 million mu of land, which is mainly for growing grains.  The land will also serve as a seasonal wetland for the city.

Third, it aids to improve the city's service to address the nation's farmer, countryside and agriculture issue.  We will further enhance the service of the five platforms for exhibition, science and technology, information, authentication and progress. 
In line with the development of the modern service sector, we will pace up the establishment of Shanghai Produce Trade Center to improve the modern logistic service for agricultural products. In order to adapt to the need of animal epidemic prevention, we will rev up the building of the national animal science research center and animal epidemic prevention and control center to improve the animal research and disease prevention work. 
With the city's 1.45-million-mu growing and breeding bases already formed in areas out of Shanghai, we will continue the use of nationwide resources to further explore the potential of local agricultural development.

7. Youth Daily: Is this true that the ticket prices of the shuttle buses between suburban Songjiang University Town and the city's downtown area are to be raised?  And when will the regulation on the cancellation of the charge windows at the exit of Hongqiao Airport become effective?  Thank you.

Jiao Yang: Responding to your second question, there is no information from the authorities as yet. The result will be declared to the public as soon as the issue is finalized.

The local government is genuinely concerned about the transportation convenience of the teachers and students in the Songjiang University Town.  A special conference was held last December on this issue to try to overcome this difficulty.

Currently, five shuttle bus routes serve about 41,000 students at six universities in the town.  Owing to students' special schedules, about 14,000 to 17,000 students flood the bus station each Friday, to return home for the weekend and back to school on Sunday evening. Shanghai Songjiang Dazhong Public Transport Co., Ltd has introduced 160 coaches, totaling 480 shuttle bus runs, into operation. An advance ticketing system, in order to work with the IC card system, is under discussion by Dazhong.  Also, the company would shift the normal routes and the stops to more suitable ones. The local transport administration departments will improve the management of road traffic to ensure a smooth operation of the shuttle buses. Fares won't increase now, as this issue hasn't been discussed as yet.

8.China Security Journal:  Shanghai invested 65.5 billion yuan (US$7.89 billion) in key urban construction projects in 2004.  What is the figure as compared to the previous year? What proportion does it account for in terms of the investments on the city's fixed assets?  Does the development of the local fixed assets comply with the purpose determined by the central macro-control? Thank you.

Jiao Yang: The detailed data of economic activities last year should be released by the National Bureau of Statistics, so I cannot disclose them here.  Neither can I answer your second question here.

Now I would say something about your third question, the relation between the investment on key urban construction and central macro-control. The municipal government finalizes the city's plan under the guidance of the regulations on economic development issued by the central government.  It emphasises on the promotions of the urban key constructions, including the modern foundation establishments, new-type industrial projects, community projects and urban innovation systems.  All these constructions are in accord with the target and direction of country's macro-control.

9.Shanghai Midday Post: It was reported recently that the eyes of a boy were badly hurt by firecrackers.  After investigation, it was discovered that these firecrackers were fake products. Has the government issued any new regulations on the sales and playing with fireworks as the Spring Festival is approaching? And an inspection of the food market shows that the killing and sale of live-poultry sales rebound.  What is your opinion about this issue? Thank you.

Jiao Yang: The related departments will further be strict with the market administration on fireworks and firecrackers, firmly cracking down on the production, transportation and sale of fake products.  The municipal government is continuously improving the supervision of the sections that relate to public health and lives, such as food safety. The sale and killing of live-poultry should be conducted under the regulations issued by the government. Any illegal venders should be punished according to the law. We welcome complaints.

10.Hong Kong Ta Kung Pao: It's said that several members from the East Turkistan Liberation Organization are ready to create a blast in the city. I noticed that all the dustbins in the metro stations are open.  Is that true?  If so, what will Shanghai do to ensure a safe spring festival?

Jiao Yang: I believe this must be a rumor.  It's not true.  So I hope the reporters present won't spread this rumor any longer.  Shanghai is a place of security.  One of the most significant responsibilities of the local government is to ensure the city's safety, and it's strengthening its security forces.  Departments such as the Shanghai Public Security Bureau are always working hard to provide safe living conditions for our citizens.  These departments will further enhance the city's security during the spring festival holiday to guarantee the safety of life and property not only for the locals, but visitors from other provinces in the country and abroad as well.  And provided that any danger is detected, please contact the related department as soon as possible.  Thank you.

11. TVBS(Taiwan): A local restaurant called "The Dome" which was run by Taiwan investors and opened in an Orthodox church was closed because the tenancy was terminated by the landlord. Would you please tell us the whole story and government's attitude towards it?

Jiao Yang: The municipal government will certainly safeguard the legal rights and interests of Taiwanese investors here. Besides fully enforcing the country's law on protecting the investment of Taiwanese compatriots, the city also tries to improve their working and living conditions. The government will help make education, medical care and legal advice more easily accessible to them.

Having inquired of the Shanghai Commission of Ethnic and Religious Affairs(SCERA) about the incident, we find that the termination of the lease on the Orthodox church located in 55, Xinle Road did not constitute a breach of contract. There are three reasons to justify the conduct:

First, quite a number of Orthodox believers at home and abroad expressed their discontent with the fact that the church was turned into a bar. In order to respect their religious belief, SCERA decided to end the tenancy.

Second, SCERA had taken changing circumstances like early lease termination into account. With the approval of the tenant, SCERA had included in the lease the clause that specifies how to solve problems that might arise. As far as we know,  the sublease that was signed by the tenant and subtenant had the similar clause. In an effort to comply with the clause, SCERA gave the tenant three months' notice of the lease termination and agreed to pay appropriate compensation.

Third, SCERA has expressed on many occasions its willingness to offer additional compensation which will be determined by the exact amount of financial losses suffered by the tenant, although compensation payable under the lease may not exceed 2 million yuan(US$241,800). The legal proceedings have already been started to settle the dispute and SCERA will respect the court's ruling.

12. Family Education Weekly: When will the "online classroom" be open to the public? Who will be in charge of it? Secondly, when is the construction of 30 local community centers expected to finish? Which neighborhoods will they be built in?

Jiao Yang: The online classroom is designed to offer citizens, especially young people, family education resources, psychology consultation services, legal advice and information on rights protection. The project was initiated by Shanghai Communist Youth League Secretary Chen Jing and approved by the General Office of Shanghai Municipality. The task is undertaken by Information Office of Shanghai Municipal Government and the Shanghai Committee of Communist Youth League of China. The link to the "online classroom" homepage can be found on the latter's official website following completion of the project.

The community center is a place where people from the same area can go for social, cultural, or recreational purposes. Equipped with new information and communications technologies, such as the Internet, this multifunctional facility offers a number of rooms for a variety of uses (e.g. sports, entertainment and recreation, legal advice, popular science education). As part of the city's effort to promote spritual civilization, Shanghai set up 20 community centers in 2004 and will build another 30 this year. The project was initiated by the General Office of Shanghai Municipality and is undertaken by Shanghai Civilization Office and Administration of Culture, Radio, Film and Television. I won't list the specific locations of these centers here since we don't have enough time. You can consult the department concerned after the meeting.

I've noticed that many reporters still have questions to ask, but the time is up. You can consult the department concerned after the meeting. Today's press conference is over. Thank you for coming.