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CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE FURTHER STRENGTHENING OF ADMINISTRATION OF TOURIST VESSLES FOR THE RECEPTION OF FOREIGNERS TO TRAVEL THE THREE GORGES ON THE YANGTZE RIVER

    The Three Gorges on the Yangtze River are important tourist resources in
our country. The tourist industry in the Three Gorges on the Yangtze River has
made great progress in recent years. As a result of lack of unified
administration and blind competition among some enterprises for building
tourist vessels, such problems as the confusion of operating order, the
imperfection of safety measures and a decline of service quality have surfaced
in the tourist transport carrying foreigners in the Three Gorges on the
Yangtze River. For the purpose of the safe navigation of tourist vessels and
the advancement of service quality, so as to promote the healthy development
of the tourist industry in the Three Gorges on the Yangtze River, and with the
approval of the State Council, the relevant matters are hereby notified as
follows:

    1.In accordance with the relevant provisions of the Regulations of the
People's Republic of China for the Administration of Water Transport, the
establishment of any enterprise intended to engage in the inter-provincial
tourist transport carrying foreigners in the Three Gorges on the Yangtze River
shall be subject to the approval of the Ministry of Communications; the
establishment of any enterprise intended to engage in the transport within a
province shall be subject to the approval of the communications department of
the province where the said enterprise is to be established.

    With regard to the establishment of a Chinese-foreign equity joint venture
or a Chinese-foreign contractual joint venture intended to engage in the
tourist transport carrying foreigners in the Three Gorges on the Yangtze
River, where the amount of investment exceeds the statutory quota, the project
proposal and the feasibility study report thereof shall be examined and
approved by the State Planning Commission in consultation with the Ministry of
Communications and other competent departments, and the contract and the
articles of association thereof shall be examined and approved by the Ministry
of Foreign Economic Relations and Trade; where the amount of investment is not
more than the statutory quota, the project proposal and the feasibility study
report thereof shall be examined and approved by the Ministry of
Communications, and the contract and articles of association thereof shall be
examined and approved by the Ministry of Foreign Economic Relations and Trade.
The Chinese party to a Chinese-foreign equity or a contractual joint venture
shall invest an amount of not less than 50% of the total amount of investment
and one of the parties to the said venture shall be a professional water
transport enterprise. From now on, any enterprise failing to complete the
formalities in accordance to the above-mentioned provisions shall not engage
in the tourist transport carrying foreigners in the Three Gorges on the
Yangtze River.

    2.Vessels engaged in the tourist transport carrying foreigners in the
Three Gorges on the Yangtze River must conform to the technical standards
provided by the Register of Shipping of the People's Republic of China and
must possess the valid certificates of vessel survey issued by the Register of
Shipping of the People's Republic of China or its authorized organizations.
After the date of issuance of this Circular, anyone who builds vessels to be
engaged in the tourist transport carrying foreigners in the Three Gorges on
the Yangtze River shall apply to the Register of Shipping of the People's
Republic of China or its authorized organizations for a survey under
construction.  For vessels that were surveyed and certificated by the local
survey organizations, new applications for survey shall, within one month from
the issuance of this Circular, be made to the Register of Shipping of the
People's Republic of China or its authorized organizations and valid
certificates of vessel survey will be issued to those of them which are
surveyed up to standards.

    3.Vessels engaged in the tourist transport carrying foreigners in the
Three Gorges on the Yangtze River must obtain the registration of vessels and
port entry and departure visas from the state harbour superintendencies
authorized by the Bureau of Harbour Superintendency of the People's Republic
of China. No harbour superintendencies without such authorization shall accept
registration and issue port entry and departure visas to vessels engaged in
the tourist transport carrying foreigners in the Three Gorges on the Yangtze
River.

    4.Crew members in charge of technical work on board tourist vessels
receiving foreigners to travel the Three Gorges on the Yangtze River, must
pass the unified examination organized by the Bureau of Harbour
Superintendency of the People's Republic of China. The Yangtze Bureau of
Harbour Superintendency of the People's Republic of China shall be responsible
for the implementation of the specific affairs related to the examination. All
crew members taking up their posts must hold the competency certificates of
crew of the People's Republic of China.

    5.It is necessary to strengthen conscientiously the administration of
public security. The Bureau of Public Security of Navigation in the Yangtze
River under the Ministry of Communications shall, in accordance with relevant
provisions promulgated by the Ministry of Communications or the Ministry of
Public Security, be responsible for the unified administration of safety
protection, supervision of fire fighting, lodging registration of persons from
abroad, public security of berthing ports and handling of various cases
related to tourist vessels receiving foreigners to travel the Three Gorges on
the Yangtze River. In case where especially serious accidents take place, the
Interim Provisions on Investigation Procedures for Especially Serious
Accidents promulgated by the State Council in 1989 shall apply to deal with
the cases.

    6.It is necessary to strengthen the administration of service quality in
tourist vessels receiving foreigners to travel the Three Gorges on the Yangtze
River. The National Tourism Administration shall formulate the rules on
reception and service, standards and methods for star-rating in conjunction
with the Ministry of Communications and other departments concerned and shall
enforce the inspection and supervision on the service quality.

    7.The Ministry of Communications shall strengthen the planning,
construction and administration of ports and stations as well as tourist
vessels receiving foreigners to travel the Three Gorges on the Yangtze River
so as to alter the situation of the lagging construction and disorderly
administration of ports and stations as early as possible and achieve
coordinated development.

    8.The Ministry of Communications shall, in accordance with the relevant
provisions of the State and the requirements of this Circular, and in
conjunction with the National Tourism Administration, the Ministry of Public
Security and other departments concerned, check up and rectify vessels engaged
in tourist transport business in the Three Gorges on the Yangtze River within
the period of time before the end of June, 1995. The aforesaid departments
shall process new registration and reissue certificates to those which meet
the statutory requirements, set a time limit for those which fail to meet the
requirements to make rectification and correction and revoke the operating
status if requirements have not been met after such rectification and
correction.

    9.A system of holding joint meetings on the coordination in tourism in
the Three Gorges on the Yangtze River shall be instituted. The Ministry of
Communications shall convene the meeting, call together the National Tourism
Administraion, the Ministry of Public Security and other relevant departments
and invite the local departments concerned in Sichuan, Hubei and other
provinces to be present. The meeting shall nonperiodically be held every year
to co-ordinate the relevant work and study and resolve the emerging problems
with a view to advancing service quality and ensuring the normal operating
order of tourist industry carrying foreigners in the Three Gorges on the
Yangtze River.

    10.Enterprises engaging in tourist transport carrying foreigners in the
course of the Yangtze River other than the Three Gorges on the Yangtze River
shall do business with reference to this Circular.

    11.This Circular shall be implemented from the date of its issuance. If
any provisions in the relevant documents issued previously conflict with this
Circular, this Circular shall prevail.