1. THE GENERAL TARGET FOR THE PROGRAM OF ECONOMIC PLANNING AND ENVIRONMENTAL PRO TECTION

　　The general target of the Joint Program is to develop practical policy recommend ations on the improvement of the decision-making mechanism of environment and developmet, on the implementation of sustainable development strategy and on the p rotection of environmental pollution at source and ecological deterioration by r eviewing Chinese experiences in dealing with the relationship between environment and development, and drawing from world experiences.

　　According to the current plan, the program seeks:

　　1. To integrate the environmental issue into the decision making process and the administrative framework of governmental departments at all levels.

　　2. To study the way of incorporating environmental protection issues into economic and soical development strategies and the mid and long-term plan.

　　3. To establish the decision making mechanism in the four demonstration areas an d to co-ordinate local economic development with environmental protection.

　　4. To develop sustainable development strategies for three sectors, namely forests, energy, and environmental industry and to propose the suggestions on raising funds and exploring the approaches and scopes of their international cooperation.

　　5. To change the information and conduct joint research with international experts and organizations.

　　2. ESTABLISHING AND IMPROVING THE FRAMEWORK OF INTEGRATED DECISION-MAKING SYSTEM ON ECONOMIC PLANNING AND ENVIRONMENTAL PROTECTION

　　The main framework consists of 5 parts:

　　Part 1 To review the current status of environment and development, and work out the long-term target and strategy for their coordinated development.

　　Part 2 To introduce international experiences of coordinating environment with de velopment.

　　Part 3 To work out the framework of China's decision-making system of economic p lannig and environmental protection, as well corresponding policy recommendation s.

　　Part 4 To provide pilot reports on establishing the integrated decision-making m echanism in the four demonstration localities. (The selected regions of this pro gran are Beijing and its Huairou county; Yangzhou City of Jiangsu Province; Zhuh ai City of Guangdong province; and Guangzhou section of Zhujing River.)

　　Part 5 To provide an analysis report on implementing the integrated decision-mak ing mechanism in three sectors like forests, energy and environmental industry.

　　3. PROGRESS OF THE WORKING GROUP SINCE 1997

　　3.1 Establishing the working group of the program and coordinating the work amon g each group.

　　A Working Group was set up by SDPC in March 1997; this is a comprehensive workin g group formed by the members from several different sectors, departments and re gions. Within the working group, a coordinating group and an expert group have b een formed. The working group is composed of eight departments under SDPC, eight ministerial departments including NEPA and four local cities. Meanwhile, Mr.Mar tin Lees set up a foreign expert group.

　　3.2 A Working schedule of the program was defined and the experts and localities have started working according to the schedule.

　　The final documents of the program on Economic Planning and Environment Protecti on was developed by the end of 1997. Afterwards, several sub-projects have been formulated accordingly and their working plans have been worked out. Some of the m have reached to the stage of intermediate report. At the same time, four demon stration cities have started their research work widely.

　　3.3 Three sectoral sub-programs, namely forests, energy and environmental indust ry, have been initiated.

　　3.4 The international meeting for the project group was held in July 1998 in Bei jing.

　　The woking meeting discussed the activities and targets of the project, the proc ess of establishing an integrated decision making mechanism of economic planning and environmental protection in China.

　　4. ON-GOING ACTIVITIES

　　4.1 Conducting a field study to the four demonstrative localities (Beijing, Yang zhou, Guangzhou and Zhuhai).

　　The working group will organize experts to the four localities to investigate an d carry out field study in the second half of this year.

　　4.2 Preparing for four international meetings which will be held this year and n ext year.

　　(1)In October 1998, just before or after the China Council annual meeting, "Inve stment and Technology for the Energy Sector" will be held in Beijing.

　　(2)In March 1999, "The Conservation and Long-term Development of Forests" and a tour study will be held in Hainan Province.

　　(3)In June 1999, the Meeting "Combining Public Policy and Business for Sustainab le Development in China" will be held in Beijing,aiming at promoting the develop ment of China's environmental industry.

　　(4)In November 1999, "An Integrated System for Decision Making on Economic Plann ing and Environmental Protection" will be held in Beijing to conclude the first phase of the program.

　　4.3 Preparing for the study tours to North America and Europe to study valuable experiences in environmental protectionand the development of environmental indu stry.

　　5. SUGGESTIONS TO THE CHINA COUNCIL FOR INTERNATIONAL COOPERATION

　　ONENVIRONMENT AND DEVELOPMENT

　　5.1 The economic plan should be based on the principles of sustainable developme nt strategies.

　　When drafting the tenth-five year plan, the sustainable development strategy sho uld be taken as an importana principle and implemented int eh areas of social an d economic development.

　　·The macroeconomic goal should be set by considering such factors as population , resources, environment, investment, import and export, price level and employm ent.

　　·The target of Pollutants Amount Control should be improved and integrated into the national economy and social development plan.

　　·The special plan for environment and resources protection should be integrated into the national industry and regional development plans.

　　5.2 Environmental protection should be regarded as a main guideline for regional development.

　　China is a large country differing in natural condition, cultural tradition and development level. There are also big differences in environmental conditions. T he backward areas are beset by the problems of deterioration of ecological envir onment. The developed areas mainly cope with environmental pollution. When drafi ng the tenth five year plan, environmental protection and sustainable developmen t should be taken as an important guideline and should be part of macroeconomic decision making.

　　·The popularization of environmental industries is a basic measure to protect e nvironment. Therefore, priorities should be given to the development of environm ental industry in the coastal and along the Yangtze River areas.

　　·The adujstment of industrial allocation should be emphasized in Bohai Rim Area s. Water-intensive and energy-intensive construction projects and heavy pollutin g projects should be limited strictly in order to protect the further deteriorat ion of ecological environment.

　　·The efficient measure should be taken in the environmental protection in water source base for large-and medium-size cities.

　　·The emigrant policy can be adopted in the poverty-stricken areas, suffering fr om serious ecological unbalance to help the poor get out of poverty and recover ecological environment.

　　5.3 Industrial structure readjustment should be in accordance with environmental protection policy.

　　·Environmental protection and sustainable development strategy should be embodi ed in the National Industry Policies.

　　·Environmental Impact Assessment should be concluded strictly during the adjust ment of industrial structure. Both new investment and readjustment of the existi ng fixed assets must meet the requirements of environmental protection. Any equi pment and technologies causing serious pollution should be eliminated.

　　·In order to transform the pattern of economic growth from an extensive mode to an intensive mode, the advanced technologies should be applied in the adjustmen t of industrial structure and its contributions to economic growth should be emp hasized. Some preferential policies should be adopted to encourage cleaner produ ction so as to enforce the implementation of environmental management.

　　·Any equipment and technologies with serious pollution attributes should be abs olutely prohibited and not allowed to be imported.

　　·It is also necessary to import environmentally sound technologies, including c leaner production, to reduce environmental pollution.