DATE=3/17/99 TYPE=BACKGROUND REPORT NUMBER=5-42876 TITLE=ZHU RONGJI PROFILE BYLINE=STEPHANIE HO DATELINE=BEIJING CONTENT= VOICED AT: INTRO: WEDNESDAY/TODAY MARKS THE FIRST YEAR IN OFFICE FOR CHINESE PREMIER ZHU RONGJI -- WHOSE TERM SO FAR HAS BEEN CHARACTERIZED BY HIS TOUGH, NO-NONSENSE STYLE. VOA'S STEPHANIE HO REPORTS, WHILE MR. ZHU HAS STAKED HIS REPUTATION ON REFORMING THE CHINESE ECONOMY, IT MAY PROVE TO BE A MORE DIFFICULT TASK THAN HE AT FIRST IMAGINED. TEXT: DESPITE STRAINED RELATIONS BETWEEN CHINA AND THE UNITED STATES, AMERICAN OFFICIALS STILL HAVE HIGH PERSONAL REGARD FOR CHINESE PREMIER ZHU. ONE EXAMPLE CAME IN A MEETING EARLIER THIS MONTH BETWEEN THE CHINESE LEADER AND U-S TRADE REPRESENTATIVE CHARLENE BARSHEFSKY. MS.BARSHEFSKY IS KNOWN FOR CHASTISING CHINA FOR INTELLECTUAL PROPERTY RIGHTS VIOLATIONS OR DISAGREEING WITH BEIJING OVER THE TERMS UNDER WHICH IT WOULD JOIN THE WORLD TRADE ORGANIZATION. AFTER LENGTHY DISCUSSIONS WITH THE CHINESE PREMIER, THOUGH, MS.BARSHEFSKY NOTED THAT ALTHOUGH DIFFERENCES REMAIN, MR. ZHU IS SOMEONE THE UNITED STATES CAN WORK WITH. // BARSHEFSKY ACT // I WAS MOST IMPRESSED, MOST IMPRESSED, WITH HIS SERIOUSNESS, WITH HOW WELL-VERSED HE WAS IN SO MANY ASPECTS OF THE TALKS. I WAS VERY IMPRESSED WITH HIS CANDOR, BUT ALSO WITH HIS RESOLVE TO SEE IF IT IS POSSIBLE TO MOVE FORWARD. // END ACT // MS. BARSHEFSKY IS NOT ALONE -- WESTERNERS WHO HAVE MET HIM HAVE REPEATEDLY PRAISED THE PREMIER, A TECHNOCRAT WHO HAS BEEN REFERRED TO AS ONE-CHOP ZHU, FOR HIS BLUNTNESS. IN CHINA, THOUGH, HIS EFFORTS TO STREAMLINE THE MASSIVE BUREAUCRACY AND END OFFICIAL CORRUPTION HAVE ASSURED HE WOULD NOT WIN UNIVERSAL POPULARITY. WHEN HE FIRST TOOK OFFICE LAST YEAR, HE ANNOUNCED THAT ONE OF HIS FIRST STEPS WAS TO REORGANIZE THE GOVERNMENT AND CUT FOUR MILLION STATE WORKERS -- OR HALF THE TOTAL. WHEN HE TOURED AREAS PLAGUED BY SEVERE FLOODING LAST YEAR, THE PREMIER CRITICIZED LOCAL OFFICIALS FOR USING SUBSTANDARD MATERIALS FOR FLOOD CONTROL WORKS. HE WAS QUOTED IN STATE-RUN CHINESE MEDIA AS SAYING THE DIKES WERE SO POORLY-MAINTAINED THAT THEY APPEARED TO BE MADE WITH TURTLE EGGS AND BEAN CURD. HIS ATTACKS AGAINST LOCAL CORRUPTION CONTINUE. IN HIS WORK REPORT TO THE JUST-CONCLUDED ANNUAL SESSION OF THE LEGISLATURE, MR. ZHU WARNED LOCAL OFFICIALS NOT TO ABUSE THEIR POWER. // ZHU INTERPRETER ACT // WE SHALL PUNISH OFFICIALS WHO EMBEZZLE FUNDS AND ACCEPT BRIBES. // END ACT // THE PREMIER ALSO EMPHASIZED THAT STATE SECTOR REFORM WILL CONTINUE -- DESPITE THE PAIN OF WIDESPREAD LAYOFFS AS A RESULT OF CLOSING STATE ENTERPRISES. MEANTIME, DESPERATE, UNEMPLOYED WORKERS HAVE BEEN HOLDING AN INCREASING NUMBER OF PROTESTS AROUND CHINA, AS THEY LOSE, NOT ONLY THEIR JOBS, BUT MANY OF THEIR SOCIAL BENEFITS. AT HIS DEBUT NEWS CONFERENCE LAST YEAR, MR. ZHU SHOWED A REFRESHING SENSE OF HUMOR, BY REMARKING THAT HE CONSIDERED HIMSELF TO BE AN UGLY MAN. THIS YEAR, HE MADE ANOTHER SELF-DEPRECATING STATEMENT ABOUT HIS APPEARANCE, BUT HE APPEARED TO BE FAR LESS RELAXED THAN BEFORE. MR. ZHU SAYS HIS FIRST YEAR IN OFFICE WAS FRAUGHT WITH UNFORSEEN COMPLICATIONS. // ZHU AND INTERPRETER ACT // (CHINESE) THE FIRST REASON WAS BECAUSE THE EFFECT OF THE ASIAN FINANCIAL CRISIS WAS MORE SERIOUS THAN WE EXPECTED, AND THE SECOND REASON WAS THAT THE EXTREMELY MAMMOTH FLOODING, WHICH WE'VE RARELY SEEN IN HISTORY, ALSO CAUSED DIFFICULTIES GREATER THAN WE EXPECTED. // END ACT // SOME WESTERN ANALYSTS PUT SOME OF THE DIFFICULTIES AT MR. ZHU'S DOORSTEP. THEY SAY HE OVERESTIMATED THE POTENTIAL OF CHINA'S ECONOMY AND HAS BACKTRACKED ON SOME KEY REFORMS. THE 70-YEAR-OLD MR. ZHU HAS FOUR MORE YEARS IN OFFICE TO ESTABLISH HIS PLACE IN HISTORY. WHAT HIS LEGACY WILL BE, THOUGH -- BOTH INSIDE AND OUTSIDE OF CHINA -- STILL REMAINS TO BE SEEN. (SIGNED) NEB/HO/FC 17-Mar-99 6:20 AM EST (1120 UTC) NNNN Source: Voice of America .