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CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON TRANSMITTING A REPORT OF THE LEADING GROUP FOR DEVELOPMENT OF UNDERDEVELOPED REGIONS UNDER THE STATE COUNCIL ON ORGANIZING COOPERATION FOR POVERTY RELIEF BETWEEN ECONOMICALLY LESS DEVELOPED AND ECONOMICALLY DEVELOPED REGIONS

    The Report on Organizing Cooperation for Poverty Relief between
Economically Less Developed and Economically Developed Regions submitted by
the State Council Leading Group for Development of Underdeveloped Regions has
been agreed to by the State Council and is herewith transmitted to you for
implementation accordingly.

    It is a strategic task of future reform and development to lead regional
economies to a coordinated development approach, to strengthen cooperation of
mutual-aid between the eastern and the western regions, to help impoverished
regions provide just adequate food and clothing to masses and to gradually
reduce the gap between regions. Cooperation for poverty relief between
economically developed and economically underdeveloped regions can
significantly promote mutual-replenishment of advantages between regions,
facilitate liberalization and development of social productivity, speed up
steps of poverty elimination and wealth acquisition of underdeveloped regions,
realize the goal of enjoying common wealthy life, improve nationalities
unification and maintain long-term stability and order of the state. People's
governments at different levels and relevant departments shall pay close
attention to this work, organize a variety of manpower of the society to
participate, take different approaches to support and help impoverished
regions develop economy and make new and greater contribution to scheduled
realization of objectives laid down in the State Eighth-Seven-Year Plan on
Poverty Relief.
APPENDIX: REPORT ON ORGANIZING COOPERATION FOR POVERTY RELIEF BETWEEN
ECONOMICALLY LESS DEVELOPED AND ECONOMICALLY DEVELOPED REGIONS

    With a view to mobilizing different strengths of the society to
participate in helping underdeveloped regions develop economy, making joint
effort in helping people in impoverished regions get adequate food and
clothing and acquire wealth and eliminate poverty, and in accordance with the
spirit of the Fifth Plenary Session of the Fourteenth Central Committee of the
Communist Party and requirements of the State Eighth-Seven-Year Plan on
Poverty Relief, it is hereby reported on arrangements for cooperation for
poverty relief between economically developed and less developed regions:

    1. After consultation with relevant local governments and upon their
agreement, it has been determined to have the following pairs of partners in
cooperation for poverty relief: Beijing Municipality & Inner Mongolia
Autonomous Region; Tianjin Municipality & Gansu Province; Shanghai
Municipality & Yunnan Province; Guangdong Province & Guangxi Zhuang Autonomous
Region; Jiangsu Province & Shaanxi Province; Zejiang Province & Sichuan
Province; Shandong Province & Xinjiang Uygur Autonomous Region; Liaoning
Province & Qinghai Province; Fujian Province & Ningxia Hui Autonomous Region;
the cities of Dalian, Qingdao, Shenzhen and Ningbo & Guizhou Province.

    2. The main task of cooperation for poverty relief is to follow the
Party's basic theories and guidelines, observe the principles of
mutual-replenishment of advantages between the east and west, mutual-benefit
and common development, strengthen the work on poverty elimination and
economic development of underdeveloped regions and realize objectives laid
down in the State Eighth-Seven-Year Plan on Poverty Relief.

    Major contents of cooperation for poverty relief are:

    (1) to help training and introducing of talents into underdeveloped
regions, introducing technologies and funds, passing on information,
coordinating flow of commodities and facilitating exchange of goods;

    (2) to conduct economic and technological cooperation: help poor regions
develop planting, aquiculture and relevant processing industry which are
beneficial to speedy supply of adequate food and clothing to the poor, and
help poor regions develop labour-intensive and resources-exploiting production;

    (3) to organize those relatively efficient enterprises in developed
regions to spur and help development of production in enterprises of
underdeveloped regions which produce same kind of products;

    (4) to develop labour cooperation: according to actual needs, organize, in
a rational and orderly manner, surplus labour of underdeveloped regions to go
to economically developed regions for employment;

    (5) to mobilize social donations, on a voluntary basis, of clothing,
quilts, funds, medicine, medical apparatus and instruments, cultural and
education apparatus and other daily necessities;

    Contents and forms of cooperation for poverty relief may be determined by
the partners through consultation in light of necessity and possibility.

    3. According to the gist of the Ninth-Five-Year Plan on National Economy
and Social Development and Outlines of Long-term Objectives in Perspective of
the Year 2010 and the State Eighth-Seven-Plan on Poverty Relief, both of which
were adopted by the Fourth Session of the Eighth National People's Congress,
and with a view to promoting the cooperation for poverty relief, it is
suggested that the following policies be reiterated and reaffirmed:

    (1) Whenever state industrial policies are formulated or carried out,
considerations shall be given to particularity of underdeveloped regions and
supports be offered to such regions;

    (2) The state shall give priority to the middle and western regions when
choosing sites for the construction of resources exploiting and infrastructure
projects and make preferential arrangements for funds in case a resource
exploiting project within the middle or western regions is intended to serve
as a national base;

    (3) Whoever establishes an exploitative enterprise in an underdeveloped
region may in a proper manner utilize local funds intended for poverty relief
and may engage in joint development;

    (4) Enterprises newly sponsored within state-designated "old, minority,
border or impoverished" regions may enjoy reduction and exemption of income
tax over the first 3 years;

    (5) In case that underdeveloped regions utilize foreign capital, develop
international trade and economic cooperation, they shall enjoy priority over
similar cases in other regions and be supported as key places. In this case
restrictions on areas for foreign investment may be properly relaxed.

    (6) Railway and communication departments shall relax restriction on
transport destinations in the case of cargoes for cooperation and
replenishment. Large quantity of cargoes intended for underdeveloped regions
shall enjoy priority in transport planning.

    Underdeveloped regions shall on the basis of their actual conditions
formulate preferential policies to attract exterior investment, speed up local
resources exploitation and facilitate economic development.

    4. The original arrangements for regional economic cooperation remain
unchanged, under which all regions of the country offer help and support to
the Tibet Autonomous Region geared to the needs of the latter and relevant
regions offer help and support to the Three Gorges Reservoir District geared
to its needs. The people's governments of each province, autonomous region or
municipality directly under the central government shall be responsible for
organizing the cooperation for poverty relief between developed cities and
counties and underdeveloped prefectures and counties within the territory of
the respective province, autonomous region or municipality directly under the
central government. And such cooperation shall be developed into a long,
steady practice.

    5. People's governments at different levels shall effectively strengthen
leadership over cooperation for poverty relief and mobilize extensive social
forces for their active involvement. One leading official in each government
shall be nominated to be in charge of the work and departments undertaking the
work shall be specified. Both partners to such cooperation shall each year
hold a joint meeting to sum up experiences and solve concerned issues through
consultation. The State Council Leading Group for Development of
Underdeveloped Regions shall be in charge of the organization of and
coordination for cooperation for poverty relief that involves different
provinces, autonomous regions or municipalities. Relevant departments of the
State Council shall actively cooperate and give support. All provinces,
autonomous regions and municipalities shall submit written agreements on
cooperation for poverty relief and reports on their implementation to the
office of the State Council Leading Group for Development of Underdeveloped
Regions for record.

    Poverty-relieving cooperation between developed and underdeveloped regions
is a important approach to facilitating poverty elimination and wealth
acquisition in poor places, and is a necessary measure for realization of
common prosperity. People's governments and cadres at different levels in
underdeveloped regions shall carry on the spirit of self-reliance and working
hard, and lead the people to do strenuous and effective work so as to
eliminate poverty as soon as possible.