Laws of the People's Republic of China

    Article 1  These Provisions are formulated in order to strengthen
the financial administration of non-trade and non-profit foreign
exchange within the financial budget.

    Article 2  Non-trade and non-profit foreign exchange within
the financial budget which is used by government organs, institutions
and social organizations shall be controlled by RMB budget quota for
purchasing foreign exchange.

    Article 3  The RMB quota for purchasing foreign exchange shall be
checked and rectified by the departments of finance. The Bank of China
(hereinafter including all its branches) shall open a foreign
exchange account to units using foreign exchange and monitor their
expenditure according to their limited RMB quotas checked and
rectified by the department of finance, and all the remaining sum
shall be annulled automatically at the end of a year by the Bank of
China.

    Article 4  The non-trade and non-profit foreign exchange within
the financial budget shall include the following items:

    (1) Foreign exchange used by personnel going abroad for studying
or on an advanced training course by the State;

    (2) Foreign exchange used as payment for membership dues, shares
or funds due to international organizations;

    (3) Foreign exchange used as foreign aid, international relief
fund or donation;

    (4) Foreign exchange used for establishing expenses and operating
expenses of agencies or administrative bodies set up by government
organs, resident diplomatic and consular missions abroad, public
institutions or social organizations;

    (5) Foreign exchange used for inviting foreign experts;

    (6) Foreign exchange used for interim visit, investigation,
exhibition, studying, training or attending international meetings
abroad;

    (7) Foreign exchange used for going on a pilgrimage abroad;

    (8) Foreign exchange used as publicity expenses abroad;

    (9) Foreign exchange approved for other purposes within the RMB
budget.

    Article 5  Procedures for purchasing foreign exchange shall be as
follow:

    (1) Each foreign exchange requires a "Non-Trade Foreign Exchange
Expense Application Report". They can purchase foreign exchange using
their RMB check according to the updated foreign exchange rate at the
Bank of China. The amount shall be within the limit of their RMB
quota.

    (2) According to "Non-Trade Foreign Exchange Expense Application
Report" completed by the unit, the Bank of China shall check the legal
seal or signature of the account and the amount of foreign exchange in
the Report. If there is no error, the Bank of China shall sell the
customer the amount of foreign exchange they need and at the same time
subtract the RMB quota respectively from the unit's account.

    (3) No unit shall purchase foreign exchange exceeding the limit of
RMB quota and the Bank of China shall not sell foreign exchange
exceeding the quota thereof.

    Article 6  With respect to the annual RMB quota for purchasing
foreign exchange, the central unit shall apply to the Ministry of
Finance, the local unit shall apply to the local financial department
and the local financial department shall collect and then report to
the Ministry of Finance. After overall balance, the quota index for
purchasing foreign exchange for central units shall be issued and
allocated to their account in the Bank of China every quarter. The
quota index for local units shall be issued and allocated to the local
financial department through "The Allocation Document for RMB Quota on
Purchasing Foreign Exchange" by the Bank of China every quarter.

    Article 7  The financial departments shall seriously examine "The
Application Form for Foreign Exchange Expenses For Delegations (or
Personnel) Going Abroad" according to the expenses standards for
interim delegations going abroad regulated by the Ministry of Finance
and the Ministry of Foreign Affairs. The delegation shall submit an
expense account within 10 days after returning from abroad. With resect
to those surplus foreign exchange, the delegation shall fill in "The
Notification For Refunding the Non-Trade Foreign Exchange", and go through
the procedures for refund at the Bank of China. The Bank of China shall
restore the RMB quota according to the surplus amount completed in the
Notification.

    Article 8  Any foreign exchange units shall report to the
financial departments at the same level "The Statistical Table for
Implementary Condition of Non-trade, Non-profit Foreign Exchange
RMB Quota" and "The Statistical Table for Implementary Conditions of
Foreign Exchange RMB Quota Expended for Going Abroad" within 5 days at
the end of each quarter, and the local financial department shall collect
and report to the Ministry of Finance within 10 days at the end of each
quarter.

    Article 9  The relevant documents, forms or tables mentioned in
these Provisions shall be printed unitarily by the Ministry of
Finance. The financial departments shall establish and improve the
regulation on foreign exchange application, ratification, reimbursement
and accounting.

    Article 10  Certification Form of "Foreign Exchange Payment for
Air Ticket and Freight Charges" (referred to as "triplicate form")
shall be abolished; the reward system to non-trade units for their
revenue of foreign exchange shall be abolished. "Circular on Relevant
Foreign Exchange Matters Concerning Central Units' Payment for
International Airline Ticket", "Trial Measures Concerning Non-Trade
Foreign Exchange Reward", and "Measures Concerning Reservation of Non-Trade
Foreign Exchange Throughout the Country" promulgated by the Ministry of
Finance shall be annulled at the same time.

    Article 11  The Ministry of Finance shall be responsible for the
interpretation of these Provisions.

    Article 12  These Provisions shall enter into effect as of April
1, 1994.