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7. Continuing to take the path of sustainable development and promoting a coordinated development of the economy, population, resources and the environment

Family planning and protection of the environment and natural resources are basic state policies of China. Under no circumstances should we seek temporary economic development at the expense of the environment and resources. We have always given priority to our sustainable development strategy. We substantially increased our investment in this field, identified the root causes of the problems and persisted in seeking both temporary and permanent solutions.

First, we redoubled our efforts to protect and improve the ecological environment. Following the 1998 catastrophic flooding, we reviewed the past experiences and implemented the basic measures of "closing off hills for tree planting, returning farmland to forests or lakes, leveling protective embankments to facilitate floodwater discharge, providing work-relief, resettling displaced people in newly built towns, reinforcing the main dikes and dredging rivers." We launched projects to protect the natural forests in major forest areas and along the upper and middle reaches of the Yangtze River and the Yellow River. We systematically returned large tracts of cultivated land to forests and pastures in ecologically fragile areas. Such measures as returning farmland to forests, closing off hills for afforestation, providing grain relief to make up for crop losses and contracting reforesting projects to individuals were adopted. We drew on and spread the experience - "the right to forest is the core, grain supply is the key, seeds and seedlings should be provided first, and cadres guarantee implementation." Rural households, subsidized with free grain, seeds and seedlings as well as cash for living expenses, were enthusiastic about returning farmland to forests and pastures. All this played an important role in improving the ecological environment and speeding up poverty alleviation in poor areas. In the Yangtze River valley, we implemented the policies of removing protective embankments to facilitate floodwater discharge, restoring reclaimed farmland to lakes and relocating the displaced people in newly built towns. As a result, 2,900 square kilometers of water surface were restored, increasing the river's floodwater storage capacity by 13 billion cubic meters. Specifically, 880 square kilometers were restored to the Poyang Lake and 600 square kilometers to the Dongting Lake. This represented a great shift from the centuries-long history of reclaiming farmland from lakes to restoring it to them on a large scale.

Second, we protected our resources more effectively and utilized them more rationally. Management of land, mineral, fresh water, sea, biological and other resources was improved. The overall plan for land use was formulated and implemented, and the land use management system was strictly enforced, effectively protecting farmland. We resolutely rectified and standardized the order in the management of mineral resources and put an end to unauthorized mining. Work began to make the management of sea areas more law-based. Since 1999, water resources in all major river valleys have been brought under unified management. Programs for comprehensive management of the Tarim and Heihe river valleys were launched. Emergency water diversion projects such as the diversion of water from the Yellow River to Tianjin were implemented, and water supply in cities was basically guaranteed.

Third, we strengthened the prevention and control of environmental pollution. Efforts were concentrated on controlling pollution in key river valleys, regions, sea areas and cities. We intensified development of environmental infrastructure and brought more urban sewage and garbage under centralized treatment. Environmental legislation and standards-making were improved, and efforts to enforce them were strengthened. Clean production was promoted, and authentication and certification of environmental management systems were carried out. We supported the development of the environmental industry and the recycling economy. We stepped up protection of resources and the environment in nature reserves, scenic areas, historical sites and tourist attractions. Public awareness campaigns were carried out to increase the people's enthusiasm for environmental protection.

Fourth, we strengthened family planning work. We persisted in controlling the size of the population and raising its quality. The current family planning policy has been kept stable, and the low birth rate has been maintained. We focused on our family planning work in the rural areas, especially in the central and western regions, and paid close attention to family planning management of the floating population. We established and improved the target responsibility system for population and family planning and implemented this basic state policy in real earnest.

8. Doing everything possible to maintain social stability and creating a favorable environment for reform and development

We steadfastly upheld the principle of attaching overriding importance to stability, and took great care to handle the relationships among reform, development and stability. While making giant strides in reform and accelerating economic development, we have made vigorous efforts to safeguard social stability.First, we were able to balance the momentum of reform and the speed of development against the people's resilience. In conceiving and implementing a major reform, we will fully consider if the country's financial resources, the enterprises and the people are able to sustain its impact, weigh carefully its timing, tempo and intensity, and be ready to make timely adjustments as may be needed in response to new developments and problems in the course of implementation. For major reforms, we will first experiment with projects and gradually expand to other areas only after gaining useful experience. We must ensure stable and rapid economic growth and avoid large fluctuations.Second, we constantly kept in mind the vital interests of the people and worked hard to solve practical problems facing the needy in their work and daily life. While ensuring a good job on social security, reemployment and rural poverty alleviation, we made great efforts to solve such problems as wage arrears by enterprises and excessively heavy burden on farmers. Also, in tackling financial risks, the government spent a considerable amount of money ironing out troubles caused by old debts that were adversely affecting the interests of the masses.Third, we correctly handled the contradictions among the people arising from the new situation. Some unexpected incidents involving mass participation were handled appropriately. Efforts were made to resolve conflicts and disputes in the bud and at the lowest level.Fourth, we adopted comprehensive measures to maintain law and order. While cracking down on all kinds of criminal and economic offences in accordance with the law, we focused our attention on such conspicuous problems as lack of law and order in some localities. Extensive efforts were made to improve public security at the grassroots level. We took the initiative to prevent and reduce crime. Production safety was strengthened, and the responsibility system fo

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