Laws of the People's Republic of China

    Article 1  These Procedures are formulated in accordance with the
Statistics Law of the the People's Republic of China to improve
statistics on international receipts and payments.

    Article 2  The coverage of declaration and statistics on
international receipts and payments includes all economic
exchanges which occur between Chinese and non-Chinese residents.

    Article 3  The term ``Chinese residents'' as referred to in
these Procedures includes:

    (1) all natural persons who have resided within China over
one year except students and patients from foreign countries or
from the regions of Hong Kong, Macau and Taiwan and foreign staff
of foreign embassies or consulates in China and their families;

    (2) Chinese citizens staying abroad for a short duration
(less than one year), Chinese students studying abroad, Chinese
patients seeking medical treatment abroad and staff of Chinese
embassies or consulates and their families;

    (3) enterprises or institutions (including foreign investment
enterprises and foreign-capital financial institutions) with legal
person status established within China according to law and foreign
offices quartered in China by bodies corporate abroad (not including
offices quartered in China by international organizations nor
foreign embassies or consulates situated in China); and

    (4) Chinese governmental organs (including Chinese embassies
or consulates situated abroad), public organizations and army units.

    Article 4  These Procedures shall be applicable in all regions
within China, including bonded areas and bonded warehouses set up
within China.

    Article 5  The State Administration of Foreign Exchange Control
shall, pursuant to the procedures prescribed by the Statistics
Law of the People's Republic of China, be responsible for
organizing the declaration and statistics on international
receipts and payments, exercising supervision and conducting
inspections, gathering, compiling and publishing statistics on
the status of international receipts and payments and
international investments, formulating and revising detailed
rules for the implementation of these Procedures and formulating
and issuing declaration and statistics forms of international
receipts and payments. Various relevant government departments
shall assist in the work concerning the declaration and statistics
on international receipts and payments.

    Article 6  The declaration and statistics on international
receipts and payments shall follow the principle of declaration
by those involved in the transaction and procedures shall be
adopted combining direct declaration with indirect declaration
and allowing for both declaration on a deal-after-deal basis and
declaration at regular intervals.

    Article 7  Chinese residents shall timely, accurately and
completely declare their international receipts and payments.

    Article 8  Chinese residents who engage in business transactions
with non-Chinese residents through a financial organization
situated in China shall, through the same financial organization,
declare the content of the transaction to the State
Administration of Foreign Exchange Control or to its branches.

    Article 9  Securities exchanges and securities registration
agencies that engage in external securities transactions for
themselves or as agents of clients shall declare to the State
Administration of Foreign Exchange Control or its branches the
receipts, payments, dividends and interest distribution of
such transactions.

    Article 10  Traders within China who conduct transactions in
futures or futures properties for themselves or as agents of
clients shall declare to the State Administration of Foreign
Exchange Control or its branches the receipts and payments
of such transactions.

    Article 11  Various financial organizations within China shall
declare directly to the State Administration of Foreign Exchange
Control or its branches the details of external transactions,
including external assets and liabilities, changes in assets and
liabilities, receipts and payments of relevant profits and interest,
receipts and payments of the external financial service and other
kinds of receipts and payments. The institutions shall also be
obligated to handle matters related to declarations through them
on international receipts and payments by Chinese residents.

    Article 12  Non-financial Chinese institutions who have opened
an account outside of China shall declare directly to the State
Administration of Foreign Exchange Control or its branches any
transactions they have made with non-Chinese residents through their
foreign account and shall report the balance of the account.

    Article 13  Foreign investment enterprises within China,
enterprises with direct investment abroad and other non-financial
organizations with external assets or liabilities shall declare
directly to the State Administration of Foreign Exchange Control
or its branches external assets or liabilities, changes in assets or
liabilities and receipts and payments for related profits, dividends
and interest.

    Article 14  The State Administration of Foreign Exchange Control
or its branches may conduct sample or general surveys of the state of
international receipts and payments.

    Article 15  The State Administration of Foreign Exchange Control
or its branches shall have the authority to examine and check the
contents of reports by Chinese residents. The declarer or relevant
agency or individual shall supply all data and convenience necessary
for such examinations and checks.

    Article 16  The State Administration of Foreign Exchange Control
and its branches shall rigorously maintain the confidence
of specific data declared and shall only utilize data for  
statistics on international receipts and payments. Statistical
staff for international receipts and payments may not supply any
agency or individual with any data in any form declared by the
declarer except that otherwise provided for by law.

    Article 17  Violation of these Procedures by Chinese residents
may be punished by the State Administration of Foreign Control or
its branches by a warning, notice of criticism or fine in light of
the seriousness of the offense.

    Article 18  If these Procedures are violated by various kinds of
financial institutions, the State Administration of Foreign
Exchange Control or its branches may, in light of the seriousness of
the offense, issue a warning, circulate a notice of criticism, impose
a fine or revoke the institution's license for foreign exchange
business.

    Article 19  Any statistical staff for international receipts and
payments who violate the provisions of Article 16 of these
Procedures shall be punished by the State Administration of
Foreign Exchange Control or its branches with administrative
disciplinary measures.

    Article 20  The State Administration of Foreign Exchange Control
shall draw up detailed rules and regulations for the
implementation of the procedures governing declaration and
statistics on international receipts and payments in accordance
with these Procedures.

    Article 21  These Procedures shall come into effect as of the
date of January 1, 1996.