Zhu the reformer

However ruthless China's new premier Zhu Rongji may have to be in carrying out his reforms of the lumbering State bureaucracy, this is counter-balanced by a large measure of personal charm. His press conference at the end of the parliamentary session Thursday appeared to endorse all the predictions which have been made about his fitness for the mammoth tasks ahead, and the modernizing influence he will bring to the mainland government.

Mr. Zhu's reformist vision is well established, but it was inevitable that he would follow the orthodox party line on the question of Tiananmen. Times have moved on. And in Mr. Zhu, China now has a premier who will be the architect of the country's future in an increasingly open era.

Despite his willingness to face demonstrations and protests in Hong Kong, Mr. Zhu is likely to receive a far more cordial reception on his trips here than some members of the politburo. Mr. Zhu is a politician the world can do business with. His presence at the conference tables will help improve East-West relations, no doubt smoothing China's path toward World Trade Organization membership in the process.

China's determination to defend the Hong Kong dollar from speculative attacks and not to devalue the yuan has already helped the SAR to weather the regional currency storm. But he must know the magnitude of the work ahead of him in the uncertain financial climate of the region. The need to speed reform of state owned industries while maintaining social stability is a tough balancing act with little room for maneuver.

One of Mr. Zhu's first tasks is to reduce budget deficits of HK$9.35 billion, and that cannot be done without some harsh decisions, but he is not the sort of man to shrink from taking them.

For all his words about democracy, he is likely to forge ahead using all the power of centralized state authority. But he is certainly the man for the job.

-- South China Morning Post