Wen's measures to meet the challenge of achieving sustained development while allowing ordinary people, especially those in dire need, to live better will come in promoting further economic and political reforms. He made the statement to members of the European media in interviews this week before his upcoming visits to Germany, Belgium, Italy, Britain and Ireland and the European Union headquarters from May 2 through 12.

Among the people in need are some farmers, laid-off workers and disadvantaged groups. "The more I understand the people, the deeper I love them and my responsibility is growing heavier," he said.

Growth & balance in the economy

Answering questions put to him by the Irish Times, Wen cited China's ongoing need for coordinated development of its economy, while recognizing the importance of balancing the development of urban and rural areas, and between regions.

The premier also cited the need for continuing to seek a sustained symmetry between economic and social development, and encouraging domestic development as China continues to open to the outside world.

Problems existing in the Chinese economy are essentially structural and concerned with economic systems, Wen told Reuters Editor-in-Chief Geert Linnebank.

"We'll continue unswervingly to promote reform, including financial reform [and] reform in investment systems," the premier said.

Wen discussed China's macroeconomic control measures in his interview with Germany's Die Welt. To curb excessive fixed asset construction, which has driven up capital goods prices and strained supplies of coal, electricity, oil and transportation, the Chinese government will step up powerful and effective macroeconomic controls, together with the necessary administrative systems.

Wen said China should be prudent in its methods and timetable for reform of renminbi yuan exchange rates, noting the nation has not given up its planned changes.

Two directions will be taken in the reform process: keeping the exchange rates basically stable at a balanced, reasonable level and exploring a market-based exchange rate mechanism, Wen told Reuters.

The reform will be based on the macroeconomic situation and the banking system, he said, noting that some unexpected results might otherwise be possible.

Developing democracy & improving the legal system

Wen said that as it undergoes economic reform, China is also carrying out political structural reform, that is, developing a socialist democracy and improving its socialist legal system.

The priority for China's democracy is to guarantee subsistence and development rights for its population of 1.3 billion, which, he acknowledged, is no easy thing.

He emphasized that China should pay particular attention to social fairness and justice.

China has continuously promoted socialist democracy, especially democracy at grassroots levels, by implementing democratic elections, democratic management and democratically exercised decision-making and supervision.

With China's a huge population, vast territory, and unbalanced development and it can only introduce direct elections at the village level. There, it is expected to be excellent practice for villagers to improve their capabilities. This so far constitutes China's democratic development process.

Conditions are not yet ripe for direct elections at higher levels, said Wen.

He said China has defined its general plan of administering the country according to laws and building a socialist legal country under the rule of law, and keeps improving its socialist legal system.

Taiwan & Hong Kong

Wen said Taiwan is an integral part of China's territory, and the Taiwan question is in fact one left historically by China's civil war. He emphasized there is only one China: both the mainland and Taiwan belong to China, and China's sovereignty and territorial integrity are inseparable.

He reiterated that China's policy on Taiwan is peaceful reunification and "one country, two systems." China will exert its utmost to realize a peaceful reunification of the motherland and at the same time it will never tolerate Taiwan's separation from it.

Wen also said he believed the Hong Kong people will administer the region well and maintain its long-term prosperity and stability.

EU partnership & the world

Wen expressed his confidence in the future of China-EU cooperation in interviews with Corriere Della Sera of Italy and Die Welt.

The comprehensive and strategic partnership between China and the EU is of great significance, he said.

According to Wen, the China-EU partnership is a multi-tier, comprehensive relationship covering a wide range of areas. It includes not only political and cultural relations, but also economic and technological relations. It is not only bilateral but also multilateral, and it includes both official and people-to-people exchanges.

The strategic nature of the relationship means that it is long-term and stable, and transcends the differences in social systems and ideologies, he said.

Wen said China is deeply concerned with the current situation in Iraq and sincerely feels sympathetic to the Iraqi people. China and Europe have the same or similar stance on the issue of Iraq's reconstruction. The UN should play a dominant role in the process and every country should take part in it, Wen said.

China is willing to join and play its appropriate role in Iraq's reconstruction, Wen said. Deeply worried about the increasing tension between Palestine and Israel, Wen said China hopes the disputes will be resolved through political negotiation and that the two sides can return to the path of "land for peace," Wen said, adding that relevant UN resolutions must be implemented.

Wen said China supports the road map for peace in the Middle East and stands firmly opposed to violent retaliation.

China and Germany should set up a cooperative mechanism, enhance consultations on major international issues and further strengthen trade and technological exchanges, Wen told Die Welt.

On China's performance since its accession to the WTO, Wen said China has seriously implemented its obligations as a WTO member since its entry into the organization.

(Xinhua News Agency April 30, 2004)