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SINGAPORE: China and the United States plan to set up a defense hotline aimed at improving military relations, a top Chinese general said over the weekend. Zhang Qinsheng, deputy chief of the general staff of the People's Liberation Army, made the remarks at the plenary session of a three-day security summit known as the Shangri-La Dialogue. He said the issue of the hotline between the Chinese military and the US Defense Department would be settled when he visits the United States in September for the ninth Sino-US defense talks. Zhang also told the summit that China's defense budget is authentic. As the Chinese military gradually modernizes, some have raised questions over "military transparency", and voiced suspicions on China's defense budget. So it is necessary to clarify the matter, Zhang said. "In China, defense budgeting must follow a set of strict legal procedures, and the published budget is true and authentic," he said. He added that the increased proportion of the defense budget is mostly used to make up for inflation, improve the welfare of military personnel and logistics support. "Given the multiple security threats, the geo-political environment, the size of the territory, and per-capita expense, the Chinese defense expenditure is small by any yardstick," he added. He stressed that "China is gradually making progress in military transparency following the principles of trust, responsibility, security and equality". The annual Shangri-La Dialogue, named after the Singapore hotel at which the event has been held since its launch in 2002, and organized by the London-based International Institute for Strategic Studies, opened on Friday. It gathered defense ministers and top officials from 26 countries and regions in the Asia-Pacific region and Europe to address major regional security issues and defense cooperation. Also at the meeting, the US and China turned down the heat on a dispute over Beijing's military build-up, with US Defence Secretary Robert Gates expressing optimism about future relations. Gates downplayed past US rhetoric on China's military might. "As we gain experience in dealing with each other, relationships can be forged that will build trust over time," Gates said. China Daily - Agencies

The late Chinese leader Deng Xiaoping pledged to keep Hong Kong's three capitalistic characteristics - horse racing, dancing and stock exchanges - intact for at least 50 years after its return. Horse racing remains popular in Hong Kong, as shown in this file photo.Edmond TangThis pledge is being upheld as the Special Administrative Region marks the 10th anniversary of its return to the motherland. Today, more Chinese mainland residents are playing the Hong Kong stock markets, attending its horse races and visiting Lan Kwai Fong, Hong Kong's top entertainment center. For over a century, horseracing has thrilled Hong Kong people. Race days are held on most Wednesdays and weekends from September to June. During the season, many can be seen burying their heads in newspapers at teahouses studying the form of horses. "After Hong Kong's return, horse racing has not only been retained, but has grown with the support of the central government and Hong Kong people," said Kim K.W. Mak, executive director of the corporate development department of the Hong Kong Jockey Club. Mak said the jockey club is now striving to provide its best facilities for the coming 2008 Beijing Olympic Games. It will host the equestrian events. The club manages two racecourses - Happy Valley and Sha Tin - attracting more than 2 million racegoers each racing season. The club's betting turnover, exceeds HK.3 billion every fiscal year. It contributes 1.3 percent to GDP, and 10 percent of the government's tax revenue. It is also one of the 10 biggest employers in Hong Kong, employing more than 5,000 full-time workers and 20,000 part-time staff on race days. Hong Kong youngsters wave flags, hailing Premier Wen Jiabao's arrival to sign the Closer Economic Partnership Arrangement in this file photo.Huo YanAs the largest charity organization in Hong Kong, the club was a major donor to the anti-SARS campaign in the spring of 2003. Today, the people of Hong Kong enjoy stability in every aspect of their lives. "We don't see any difference in our way of life after 1997," said Wong Yim-fat, a fishmonger in Hong Kong. "Though there have been hard times, we have come through it, believing things can only get better." Wong now plays the stock markets and has had some luck with the Hang Seng Index rising from 15,196 points in July 1997 to about 21,685 today. "Actually, as masters of our own society, we feel there is more freedom and opportunities following Hong Kong's return," Wong said. Wong said he is happy with his decision to remain in Hong Kong after its return and not seek to emigrate as some of his friends and relatives did. "Many of my friends who have emigrated have come back, after finding out that things have not changed," Wong said. Before 1997, many Hong Kong people were uncertain about its future and left for other countries. Official figures from Hong Kong Customs show that more than 300,000 people moved to America, Australia and Canada between 1990 and 1997. Ten years later, many returned because of Hong Kong's stability and prosperity. Renee Chu, an assistant computer officer at the Chinese University of Hong Kong, was one of those who left before 1997. Following her parent's wishes, Renee left for Australia in 1990 when she was still a middle school student. "At that time, they were concerned about Hong Kong's future and wanted us to receive a better education abroad," she told Xinhua News Agency in a recent interview. After graduating from university, Renee returned to Hong Kong in 2000 as it offered better job opportunities. Hong Kong was hit by an economic downturn and an outbreak of SARS after 1997, but that did not stop the Chu family from returning. "There are always good and bad times for a place," Renee said. "My parents return to Australia from time to time," Renee said, "but their stays have become shorter. They now spend more time in Hong Kong and the mainland." Most Hong Kong people were able to gain residency abroad because of their technological skills and investments. While Hong Kong has retained its attraction for locals, it has also lured more people to its shores. Official statistics show that the number of overseas people in Hong Kong - Indians, Filipinos and British - account for 71,000 out of a population of 6.9 million. The culture of tolerance can be seen in the busy streets. There are restaurants and shops from all nations. "Hong Kong is really a very tolerant and free-spirited city. The cultural tolerance and perfect mixture is reflected in the diversity of our international visitors," said B.C. Lo, vice-president of public affairs, Hong Kong Disneyland. Hong Kong, however, has undergone some subtle changes too. This is evident in the choice of passport. Ten years after Hong Kong's return to the motherland, many Hong Kong people have abandoned their British National (Overseas) or BNO passports in favor of the Hong Kong Special Administrative Region (HKSAR) passport. According to Hong Kong Immigration Department sources, in the past 10 years, as many as 4 million, or 60 percent of Hong Kong's population of permanent residents, have applied for HKSAR passports, and the number is growing. The HKSAR government has managed to obtain visa-free access to as many as 134 countries or regions. BNO passports enjoyed visa-free access to only 114 countries. The passports are still valid. The safety ensured by Chinese embassies and consulates as well as a sense of nationalism have also been key factors in the popularity of HKSAR passports. Wong Yim-fat is of those who think HKSAR passports are not only more convenient, but also offer consular or embassy protection from the Chinese government in times of distress. "While holding a BNO passport, you felt like a second-class citizen," Wong said. "But a HKSAR passport gives you all the privilege that a Chinese citizen enjoys." According to Lu Xinhua, commissioner of the Ministry of Foreign Affairs in the HKSAR, not only Hongkongers have enjoyed an uplift in their international status, but also the HKSAR government. During the past 10 years, the HKSAR government has joined more than 50 international, intra-government organizations and 200 international treaties with the proper identity of Hong Kong, China. "Under the Basic Law, we have tried our best to help exchanges between the HKSAR government and the international community, in order to forge its long-term prosperity and stability," Lu said.

CHANGSHA -- Central China's Hunan Province said it has taken effective measures to prevent epidemics after about 2 billion rats chomped their way through cropland around the Dongting Lake, the country's second largest freshwater lake. "It's not possible for rodent-borne diseases to break out in the lake area," said Chen Xiaochun, vice director of the provincial health department. Local health authorities have been watching closely over the rodent situation after the rats fled their flooded island homes and invaded 22 counties around the Dongting Lake last week, he told a press conference on Wednesday. Results of their observation are reported daily to the provincial health department and the public, he said. Meanwhile, local health and disease prevention and control authorities have intensified management of raticide and pesticide, for fear they might contaminate food and water, Chen added. No human infection of any rat-borne disease has been reported in the central Chinese province since 1944. The provincial government also ruled out widespread suspicions that rats flooded the area because one of their natural enemies -- snakes -- had been served at dinner tables. "The Dongting Lake area is not an ideal habitat for snakes," said Deng Sanlong, a top forestry official in the province, "and the only two species that inhabitate the region feed largely on fish and frogs." He said the top enemy of the rats are hawks that spend winter in the wetland around the lake but fly away in spring. China's Ministry of Agriculture and the Hunan provincial government have allocated 900,000 yuan in total to eradicate the rats.

Chinese auditors said it found no embezzlement or misappropriation of construction fund in the ongoing Three Gorges project, however, they also detected some problems and flaws in the project management. The National Audit Office (NAO) said the overall quality control of the project was fine and total investment were kept under control. All 11 major projects were up to the standards, as were main materials such as steel and cement, said an audit report by the NAO. It said total inflation-adjusted investment, expected to be 78 billion yuan, could be more than 35 billion yuan less than planned in 1994. By the end of 2005, the country had spent 64.2 billion yuan on the project. The NAO, however, also detected extra construction costs of 488 million yuan, most of which was incurred by project construction contractors who exaggerated their expenditure. The office also found 20.4 hectares of land illegally used without governmental permission, while another 110 hectares approved for use had been left idle. "The problems are largely due to lack of laws and regulations and imperfection in internal control," said Pan Xiaojun, senior official with the NAO. The company said it had already corrected the use of 139 million yuan of fund involving violation of rules, and a total 17 measures had been adopted to improve management over the project. The office said 21 power station construction projects, most of which involved a single contract value of less than 10 million yuan were not put out to tender. A few construction companies were discovered to have subcontracted their projects against regulations and obtained illegal charge of 53.45 million yuan. About half of the 1,448 supervisors sampled were found to have no licenses for the work. The China Three Gorges Corporation said it had strengthened the implementation of public bidding to ensure the fairness of the results and avoid the influence of people, and it also added detailed terms about contracting in contracts to prevent illegal contracting. The unlicensed supervisors had been fired and supervision over the project supervisors were enhanced, according to the company. The report said that the project across the Yangtze River, the construction of which began in 1993, had played a "better-than-expected" role in flood prevention, power generation and shipping. "It's possible to put the project into full operation by 2009 as planned, and the project is running a bit ahead of schedule," it said. The fourteen generators in a power plant had been put into operation a year earlier than planned in 2005, the office said. Upon its completion, the Three Gorges dam will produce 85 billion kwh of electricity annually for supply to central and eastern China. The dam, which is 2,309 meters long and 185 meters high, will be installed with 26 turbo-generators, each with a generation capacity of 700,000 kilowatts. The audit, which took 150 auditors more than six months to complete, covered areas including fund raising, management and use, construction management as well as benefit of the project.

A pair of young giant pandas will soon call Adelaide Zoo in South Australia home.The couple will be the first pandas to settle down in the southern hemisphere - the last time the endangered species were seen was nearly two decades ago during a visit to the Australasian region .President Hu Jintao and Australian Prime Minister John Howard signed an agreement yesterday formalizing the 10-year loan in Sydney.Hu said the move is a friendly gesture and the pandas will become a symbol of friendship.Australian Foreign Minister Alexander Downer said after the signing ceremony that he played a key role in working with the Chinese to borrow the pandas as part of a global survival program."I love animals and I think the giant panda is one of the truly great animals of the world," said Downer.A native of Adelaide, Downer was excited that China agreed to send the pandas to the zoo where his grandfather was once the chief.It is hoped that the two-year-old male "Wang Wang", or "Net" and one-year-old "Funi", or "Lucky Girl", will breed when they reach sexual maturity.The two pandas are from the Wolong Nature Reserve in Sichuan Province and they were named by the public earlier this year, said Zhang Guiquan, a director at the reserve.Chris West, CEO of the Royal Zoological Society of South Australia, said that the pair's presence in Australia will signify international collaboration to secure a future for wildlife."We will send our staff to Wolong to receive training," West said. "Our staff will also visit the giant panda facilities at San Diego Zoo, where they have successfully bred and managed giant pandas, and the climate is similar to that in South Australia."The giant panda is unique to China and often serves as an unofficial national mascot. The animals were sent abroad as a sign of warm diplomatic relations or to mark breakthroughs in ties.In a related development, two giant pandas "Bing Xing", 7, and "Hua Zui Ba", 4, are scheduled to leave China today for a 10-year sojourn in Spain.Giant pandas are among the world's most endangered species. State Forestry Administration figures show 1,590 pandas live in the wild, mostly in the mountains of Sichuan, and more than 200 live in captivity in the country.

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