China - Shanghai sector memorandum (Vol. 2 of 2) : Volume ll

Report No. 4227-CHA SHANGHAI SECTOR MEMORANDUM Background Information December 15, 1982 VOLUME II Projects Department Urban and Water Supply Division East Asia and Pacific Regional Office  4  SHANGHAI SECTOR MEMORANDUM BACKGROUND INFORMATION Section 1 - History and Development Above all else, Shanghai is a seaport. Ever since the first fisher- men built a village on its shore about a thousand years ago, the sea has been its livelihood, its essential reason for being. 1.2 Since medieval times at least, China's rare luxury goods enticed Western commercial travelers to make the long overland journey there. Much later, when Shanghai's port had become the principal entrepot for waterborne trade, the settlement took on attributes of port cities every- where. An amalgam of cultures accumulated within Shanghai's environs, as foreigners established permanent offices to maintain contact with Chinese suppliers of export goods. By the mid-nineteenth century, when British, French, and Americans gained their unique quasi-colonial trade concessions within China, parts of Shanghai even acquired the appearance of a Western city. Businesses within each national concession were owned and managed by and for the resident foreigners. The Chinese who supplied and serviced these enclaves lived outside their boundaries. 1.3 Initially it was the port that made Shanghai the prize that Western traders so eagerly sought; commercial Shanghai was essentially a series of docks where ships got unloaded or offloaded for trans-shipment inland. The port, in combination with the productive outcome of cultural interchange, made Shanghai the prime locus for China's modernization. In the decades after liberation industrial capital and much of China's skilled technical manpower has continued to be concentrated in Shanghai. Today, Shanghai is China's leading center of manufactures, her largest city, and the nation's most powerful engine driving the current campaign for rapid industrialization and rapid improvement in standards-of-living. 1.4 Much of Shanghai's industrial development occurred during the ten years after the First World war. By 1920 Shanghai's population was 2.5 million. One quarter of the country's total labor force in factories was in Shanghai. Of the 128 textile mills in China, 58 were located in Shanghai. By 1934 Shanghai's population had increased by another 1 million. Its port was already one of the largest in the world handling 35.4 million tons of cargo annually._J The city also accounted for fully one half of the country's industrial wastes. 1/ This report describes the history of Shanghai and its governmental, financial, and spatial structure. It provides introductory material for readers of the Shanghai Sector Memorandum who are not familiar with Shanghai. 2/ Source: Shanghai from 1919 to 1945, by Marie-Claire Bergere In Shanghai, Ed. Christopher Howe, Contemporary China Institute, 1981  -2- Emergence of a Metropolitan Province 1.5 The Japanese seige of Shanghai in 1937, World War II,and the liberation struggle variously affected Shanghai's economy and growth. In 1949, Shanghai covered an urbanized area of some 78.19 sq. km. with a population swelled by refugees to over 4.1894 million. Shanghai's-subsequeint econom i-isft-ry- -and growth has alternated between containment and expansion. The First Five-Year Plan which commenced in 1953 very definitely sought to limit urban expansion and disperse industry. The building of a series of satellite towns and industrial townships began. In the various campaigns of the 'sixties such as the Leap Forward, sending out youth to the countryside, land reforms and cultural revolution, the initiatives from and the impact on Shanghai were significant. The present rather unique character of Shanghai as both a rural and urban entity is the result of the search for a balance, spatial and administrative, between the city and the country. 1.6 Since 1842, when the Treaty of Nanking designated Shanghai as a Treaty Port, the administration of Shanghai has been divided between the municipality and a series of foreign concessions. Beginning with the French concession defined in 1849, British and American settlements were created. The several Land Regulations from 1845 to 1868 allowed the creation of municipal bodies for these foreign settlements independent of the Chinese authorities. The relationship between the Shanghai Municipal Council created in 1854 as a loose association of these foreign settlements and the Chinese Shanghai Municipality set up six years later, was determined more by the degree of influence the Chinese government could exert on the colonial powers which controlled the commerce rather than needs of city administration. In 1927, the greater Shanghai municipality was established consisting of the different Chinese parts of Shanghai and its outskirts. The International Settlement maintained its separate identity right until Pearl Harbor (1941). In 1943 the Western powers ceded their rights and privileges and the Japanese likewise renounced their extra territorial rights. 1.7 Shanghai's area was extended to 116 sq. km. in 1957, to cover the urbanized area. Early in 1958, three adjoining counties were added with an area of 863 sq. km. and 650,000 people. Later that year 7 more counties were added which brought the total area of Shanghai municipality to 6,185 sq. km. which is the present size. The jurisdiction of the Shanghai municipality covers 12 urban districts and 10 suburban counties. The urbanized area consists of the city proper (141 sq. km.) and two new districts formed in 1980, i.e.Wusong and Minhang, two industrial townships 20 km. from the urban core. The population of the urban districts and rural counties are contained in Table 1.1. Information on the birth and death rates is given in Table 1.2.  - 3 - Table 1.1 Population and Area of Shanghai Urban Districts and Rural Counties Net Migration Urban Area Rural Shanghai Shi by Year Year (12 Districts) (10 Counties) (Total) Shanghai Province POPULATION 1960 - 10.56 - 1965 6.43 4.51 10.94 - 44,800 1970 5.80 4.92 10.72 -312,000 1975 5.57 5.20 10.77 _ 5,100 1977 5.47 5.39 10.86 7,900 1978 5,57 5.41 10.98 67,000 1979 5.91 5.41 11.32 264,000 1980 6.01 5.45 11.46 - 1981 6.13 5.49 11.62 - 1990* - - 13.0 - 2000* - 13.0 - AREA 222.9 km.2 5915.7 km.2 6185.7 km. 2 Note: Population totals are in millions. The urban area is composed of Shanghai City Proper (area of 141 km2) and the two new districts of Wusong and Minhang. The population for the 10 counties s-- notall rural. Most of the counties have sizeable towns and industrial settlements. Population figures based on occupations, if available, would indicate a much higher urban proportion for the province as a whole.  - 4 - Table 1.2 Shanghai Municipality Population and Vital Statistics, By Districts and Counties, 1979 Year-end Rate of Crude Crude population Natural Increase Birth Rate Death Rate (1,000) per thousand per thousand per thousand Total 11,321.4 6.23 12.34 6.11 Shanghai Municipality Districts: 5,914.5 1.68 8.01 6.33 Chabei 605.4 2.25 8.66 6.41 Changning 370.8 1.50 7.31 5.81 Hongkou .735.3 1.28 7.59 6.31 Huangpu 622.0 1.16 7.76 6.60 Jingan 502.7 0.98 7.95 6.97 Luwan 484.8 0.91 7.96 7.05 Nanshi 683.8 1.48 8.60 7.12 Puto 517.5 2.50 8.64 6.14 Xuhui 537.8 2.11 7.61 5.50 Yangpu 854.4 2.35 7.88 5.53 Shanghai Municipality Counties: 5,406.9 11.07 16.94 5.87 Baoshan 463.3 10.26 16.40 6.14 Chongming 764.0 8.81 15.06 6.25 Chuansha 636.6 10.01 16.10 6.09 Fengxian 500.6 11.69 17.03 5.34 Jiading 496.2 13.16 19.26 6.10 Jinshan 469.0 16.99 22.65 5.66 Nanhui 635.4 7.42 13.02 5.59 Qingpu 421.8 12.39 18.13 5.74 Shanghai 557.5 10.18 15.91 5.73 Songjiang 462.5 13.33 19.13 5.80 Source: Bank's First Economic Mission: Figures furnished by Shanghai Statistical Bureau. Note: In 1980, two new districts were formed and included in the urban area, i.e. Wujing and Minhang.  Section 2 - Salient Features of Government 2.1 Municipal or city governments in China are usually under the control of provincial governments. In the case of Shanghai, however, the city and the province are integrated as an autonomous region under the Central government similar to Beijing and Tianjin. The Shanghai government has the status of a provincial government and is responsible for a variety of economic and administrative functions and is also the representative of the Central government for most activities. Apart from a few branches of parastatal organizations, the Central government does not have any regional office in Shanghai. For instance, the profits from enterprises and all taxes earned in Shanghai are collected by the municipal government and remitted to the Central government after retaining a pre-determined amount for its own activities. 2.2 The organizational structure of the government and the various units thereunder are indicated in Annex I. The Mayor appointed by the Central government is the Chief Executive of the Municipal Government reporting to the People's Congress. The Mayor is assisted by two vice-Mayors. Below the Mayor, there are a series of Commissions under which functional bureaus are grouped. The Commissions can be defined as the municipal government's policy organizations corresponding to ministries in other countries. In some cases these entities may be called Offices or even Bureaus. Usually the bureaus, which are the principal administrative units corresponding to departments or directorates in other countries, come below the Commissions. It is under- stood there are 24 Commissions or Offices in all, and 66 bureaus under them. 2.3 The Commissions and Bureaus closely concerned with the urban sector are the Municipal Planning Commission, the Capital Construction Commission, and the Office of Municipal Finance and Trade. The Municipal Economic Commission it may be pointed out, is responsible for a large number of production and trading enterprises and is not concerned with economic planning as may be indicated by the title. It is the Municipal Planning Commission which is responsible for the overall planning of the city and the province integrating the economic, social and spatial aspects. The Capital Constructionr Commission is more directly concerned with the spatial planning aspects and the provision and maintenance of a variety of urban services. Several Bureaus are grouped under the Capital Construction Commission. The City Planning Bureau, assisted by the Engineering and Design Institute, is responsible for the formulation of the spatial plan of the city and also a variety of infra- structure schemes. The Public Utilities Bureau is a major outfit under the Commission responsible for water supply, gas and public transport, with a staff of over 66,000. The managerial, professional and technician personnel of a few other units of the government are indicated in Annex II. 2.4 The listing of various Commissions and Bureaus in Annex I'is indicative of the nature of the organizations and their functions. However, for some of the units under the Capital Construction Commissions, clarification is necessary. The functions of these units are described in further detail in Annex III.  - 6 - 2.5 Responsibility for recruitment and promotion in the various Bureaus appear to be with an organization called the Bureau of Personnel. It is reported this Bureau is not an organ of the Municipal government as such but functions directly under the Party leadership. On-the-job training for the staff is coordinated by the "Commission for On-the-job Education and Training of Staff, Workers and Peasants", which is also reported to be under the Party leadership. Section 3 - The Economy 3.1 Shanghai has long been an important industrial city in China. For example, in 1949 it produced 21 percent of China's industrial output. Shanghai currently has 1.2 percent of China's population and produced over 12.5 percent of the nation's gross industrial output in 1980. Table 1.1 compares several of the characteristics of Shanghai's economy with those of the nation in 1980. It shows, for example, that even though more than half of Shanghai's population is urban, the proportion of the nation's agricultural output from Shanghai exceeds the proportion of the nation's population living there. In addition, Table 3.1 shows that in 1980 the production of light industry marginally exceeded' that of heavy industry in Shanghai. This marks the first time that light industry output exceeded that of heavy industry since the late 1950's, and it reflects the new priorities that have been given to high technology goods and to consumer oriented products in China's national economy. Shanghai plays an important role in both of these product groups, and light industry will grow more rapidly than heavy in the next 5 years. 3.2 The two measures of welfare shown in Table 3.1, life expectancy and distributed collective income per capita, are both higher than their national averages. Moreover, a comparison of these indicators with those available for other provinces shows that Shanghai's populace has a longer average life expectancy and a highe'r income level than any other province in China. Table 3.1 A Comparison of Shanghai Province with the Nation - 1980 Shanghai Shanghai Item Nation Province as % of Nation Population (millions) 982.6 11.46 1.2 Percent Population in Cities 13.2 52.22 Life Expectancy 1/ 64 2/ 72 3/ 112.5 Gross Industrial Production- 499.2'- 62.6-" 12.5 - by light industry 234. 4 32 9.0g 14.0 - by heavy industry 264. _ 29,7-k 11.2 Gross Agricultural Productionr- 1625 2.47- 1.5 As a Percent of National Average: - gross industrial output per capita 100.0 1106.4 - - distributed collective income per 100.0 257.1 capita 1/ Figures are in 1970 prices and billions of Rmb. 2/ From "Annex A: Statistical System and Basic Data, China: Socialist Economic Development," (IBRD Report No. 3391-CHA) June 1981, Table 2.3, p.59. 3/ From "Communique of the Municipal Statistical Bureau of Shanghai on the Development of Shanghai's National Economy in 1980," June 1981.  -7- 3.3 Given the importance of Shanghai's industrial output to the nation, it is not surprising that the industrial sector is predominant in the local economy. Table 3.2 shows that 55 percent of Shanghai's work force was employed in the industrial sector in 1981 and produced three-fourths of the value of the area's output. The composition of Shanghai's employment and output differs markedly, as expected, from that of the nation, and it also differs from that observed in other Third-World cities. In most cities industry accounts for between a quarter and a third of all employment with a few cities going higher. Sao Paulo, for example, has 38 percent of its workers employed in industry. Moreover, most Third-World cities employ 4 about a third of their workers in the service sector. In terms of employment, Shanghai has a small service sector and a very large industrial sector. 3.4 Table 3.3 shows several characteristics of the industrial firms in Shanghai. As in most cities, the bulk of firms are small but the few large ones play an important role in production. In this case, the 1.6 percent of firms that are large produce about 26.6% of all ouutput. The figures in Tables 3.1 and 3.3 probably correctly indicate the relative magnitudes of output values, but they differ in concept from those available for other countries. For example, firms pay their workers salaries and bonuses, but these workers also receive substantial income in kind in the form of housing, as well as subsidies for transport and food. This income in kind and the subsidies are difficult to estimate but may be well over a billion Emb. per annum. Moreover, the cost of these transfers is borne by the municipality or other agencies, and not typically by the firm. Table 3.2 Production and Employment by Sector Shanghai and the Nation Nation - 1979 Shanghai Province-1981 Net Production Employment Production Employment Industry (including brigade industry) 50.4 17.4 76.6 55 Agriculture (excludes brigade industry) 32.9 70.8 5.8 6 Construction 4.2) 1.5 5 Transport 4.2) 11.8 3.7 6 Commerce 8.2) 12.4 13.5 Other n.a) n.a. 14.5 4 Source: Shares for the nation are from Tables A.8 and A.12 in "Annex A: Statistical System and Basic Data, China: Socialist Economic Development" (IBRD Report No. 3391-CHA) June, 1981.  -8- Table 3.3 Characteristics of Industrial Firms of Shanghai Province Size of Firm Small Medium Large Number of firms 6738 298 113 Percent of output 49 *4 24 26.6 Locations of Firms City Suburbs Outside Province Number of firms 4075 2992 82 Ownership of Firms State Brigade and Commune (Collective) Percent of firms 44.6 55.8 3.5 Although industry historically is located within the city proper, recent policies have been encouraging firms to move to the suburbs, especially if the firms are environmentally harmful. This policy is having some success, as three out of seven firms are currently located in the suburban areas. The new policy of relocating existing firms is an attempt to reverse the effect of past practices that distributed enterprises throughout the city. Virtually all areas in Shanghai are "mixed use" areas that include industry. The wide distributions of enterprises in the city has caused increased transport of both input factors and final products. It has also made it difficult to realize agglomeration economies that can occur from placing similar firms near each other, and it has made on-site expansion very difficult, given the high residential densities of urban areas. The development of suburban industrial townships and satellite towns have played an important role in the decentralization of industry, but they have been used mainly as sites for large, new enterprises rather than destinations for relocating firms. Policies to relocate existing firms seem to be a new step in the implementation of locational planning. 3.6 The current Five-Year Plan (it is the Sixth plan and covers 1980-85) predicates an expansion of both internal and external trade for Shanghai, as well as the strengthening of Shanghai's advanced technology industries. Light industry will continue to grow more rapidly than heavy industry during this period. Industry location will continue to decentralize to the north and south of the city proper and to the surrounding satellite towns.  -9- Section 4 - Spatial Structure 4.1 In keeping with its origins, Shanghai's physical development has tended to follow the waterways. The major industrial establishments are arrayed along the banks of the Huangpu River and Suzhou Creek, adjacent to the docks; the commercial city abuts the junction of the Huangpu and the Suzhou. The surrounding contiguous urbanized area is devoted to a complex mixture of housing, commercial and community facilities, and industrial plants. Residentail buildings in most of the city are two and three-storey structures. The old Chinese settlement south of the commercial center in the Nanshi district is reported to have the highest density of 70,000 persons per sq. km. On the east side, across the river, expansion has been slow owing to comparatively poor access but the city has been spreading in all other compass directions, as new residential construction has been put in place on the urban fringe and as central city factories have been relocated there. 4.2 As mentioned earlier, pursuant to the decentralization strategy of the First Five-Year Plan, conscious attempts were made to locate new industries outside the urbanized area in the late 1950s and 1960s. New industries were located in closely related clusters such as Woosung for iron and steel, Caohejing for precision instruments, Minhang for heavy industry, etc. Residential and commercial facilities were developed at the same sites in these industrial townships which were usually at a distance of about 20 km. from the city core. A program of building satellite towns was later taken up. Here again, the organizing principle was of an integrated complex such as Anting for automobiles and Jingshanwei for petro-chemicals. Altogether there are now a dozen of these new settlements: five of these. namely Caohejing, Changquiao, Gaoquiao, Taopu and Wujiaochang, are called suburban industrial townships and the other seven are called satellite towns. The refinery and metallurgical complex in Wusong and the heavy industry towns of Wujing and Minhang are in reality north and southward expansions of the urbanized area. Though outside the city proper, these are very much a part of urbanized Shanghai and referred to as the metropolitan area. The true satellites may be said to be outside the area at Anting on the western railway line to Nanjing, Jiading, the county seat to the north, Songjiang, another county seat on the southern railway line to Hangzhou and the petro- chemicals town at Jingshanwei, 70 km. from the core on Hangzhou Bay. 4.3 Port development, initially localized at the mouth of Souzhou Creek, is now being extended all along the Huangpu River. There are 19 docks now on both sides of the river alongside 60 km. of the river. On the south shore of the Yangtse, jetties serving large ocean-going vessels are being built to serve the new steel complex at Wusong and Baoshan. A new oil jetty has also been constructed on the north shore of Hangzhou Bay, adjacent to the new petro-chemicals complex at Jingshanwei. With these waterways supplemented by thousands of lineal miles of inland canals, Shanghai is truly a city of the sea, as its name implies.  - 10 - Section 5 - Shanghai Municipal Finance 5.1 The fiscal arrangements for China's provinces and cities are often described as one of "unified leadership and management by levels". Usually, financial management would be at the provincial, municipal and county levels subject to the overall guidelines and directions of the Central government. The share of these local levels of government in the budget revenues of the country is substantial. In 1979, for instance, out of the total budget revenues of about 110 billic yuan, this share amounted to 83% as against 17% for the center.l/ In the case of Shanghai, as one of the three city regions directly under the Central government, the position is different. The bulk of the revenues collected from the area is remitted to the Central government and only 10% is retained by the Shanghai Government. This was a lower percentage compared to Tianjin (31.2) and Beijing (36.5).2/ Revenues and Expenditures 5.2 In the case of Shanghai, the revenue and expenditure targets are set by the Central government. The principal sources of revenue are profits from enterprises and taxes. Until 1979 enterprises, both manufacturing and others, used to remit all theirprofits to the government. Since then, as a measure of autonomy, the enterprises are permitted to retain 10% of the gross profits, of which 40% is applied for enterprise development, 3 as bonus to workers and the remaining 30% for welfare and amenities of workers. It is not clear whether all the enterprises located in Shanghai remitted their profits to the Shanghai Municipal government. It was mentioned some of them remitted their profits directly to the Central government; e.g. the Electricity undertaking and the Port. Some others like the Jingshanwei petro-chemicals and Telephone company, remitted payments to Shanghai Municipality. In the case of service enterprises, the situation varies from one type to another. For instance, for educational institutions, all revenues are remitted to the government and expenditures met by the government. In the case of hospitals, expenditure deficits are provided by the government. For services provided at the district, county, or street level, a system of a fixed grant applies. 5.3 During 1981, the Shanghai Government collected a little over 17 billion yuan as revenue, retained 1.9 billion for its expenditures and remitted the balance to the Central government. A breakdown of the items of revenue and expenditure are contained in Table 5.1. The profits from enterprises accounted for 62% of the revenue. This represents a share of about 18% of the national total. Taxes constitute the remainder of the revenue. The bulk of these taxes are levied by the Central government, collected by Shanghai and remitted to Beijing. However, like other provincial and municipal governments, Shanghai has some tax sources of its own. These are mainly surcharges on national taxes, taxes on public utilities, real estate, etc., and fees for licenses. In 1981, the Municipal government received about 448 -m1lion yudan trom these local taxes, which it retained. The Mission's understanding is that this amount is included in the total revenue of 17.15 billion and therefore in the amount of 1.9 billion retained. The different kinds of local taxes collected by Shanghai are indicated in Table 5.2.  - 11 - Table 5.1 Revenues and Expenditure of Shanghai Municipal Government (1981) 4 (Million Yuan) A. Revenue Total -/ 17,153.0 100% - Profits from Enterprises 10,703.5 63% - Taxes and Surcharges 6,227.0 36% - Contribution from the enterprises @ 30% of depreciation provision 205.8 1% B. Expenditure Total 1,906 100% 2/ - Capital Construction - 542 29% - Renovation of enterprises 293 16% - Irrigation and agriculture 102 5% - Education, Health and Culture 462 24% - Maintenance of City facilities 120 6% - Increased appropriation for working capital 64 - Administration 120 6% - Others 203 11% Notes 1/ Of the total revenues, about 9 billion yuan came from heavy industry, 5.2 from light industry and the rest from commerce and other sectors. 2/ About 56% of the expenditures were for 'non productive' purposes such as housing, hospitals and schools.  - 12 - Table 5.2 Surcharge and Fees Collected by Shanghai Municipality, 1981 % of surcharge Amount (Yuan million) Industrial and Commercial Taxes 1 62.10 General TAx 1 56.10 Income Tax 1 6.00 Agricultural Taxes 15 6.46 Public Utilities Taxes 209.00 Electricity 2/ 20 190.00 Telephone 25 3/ 4.00 Water Supply 4/ 5 10.00 Gas 5/ 10 5.00 Local Taxes 20.00 Slaughter Fee 6/ 1.00 License Fee 7/ 1.00 Housing & Real Estate Tax 8/ 17.50 Market Fee 9/ .50 1/ These taxes are reported to be mostly on trading enterprises. 2/ Same % of surcharge on industry and household consumption. 3/ Higher than other cities (8-10%). 4/ Same % of surcharge on industry and household water consumption. 5/ 10% surcharge on industrial use, but no charge on household use. 6/ Yuan 2 per head on cattle and pigs. 7/ Type of Vehicles Annual Fee Paid (yuan) Taxi 320 Truck 60/Ton weight Motorized--tri wheel 80 Motorized-two wheel 20 (a 60 yuan fee on motor cycles in the City proper was mentioned) 8/ Housing tax amounts to 18% of rent paid 9/ Recently established system.  - 13 - 5.4 As regards items of expenditure, capital construction accounts for 542 million. An itemized breakup of this amount, as also details of the expenditure on maintenance of various urban services, are contained in Tables 5.3 and 5.4. However, it should be noted that these amounts do not account for the total expenditure on urban services in the area. In the case of large-scale enterprises, whether under the control of the Shanghai Government or the Central Government, funds are provided directly by the Central government for major items of infrastructure and urban services. For instance, expenditure on approach roads, housing, water supply, and many items of community facilities for the large Baoshan steel complex, are included in the project costs and funded by the Central government. In addition, the Central government may also provide funds directly to special projects such as port expansion, railways, tunnels and bridges, telecommunications, etc. The Central government also administers a program of special assistance to 40-odd urban areas in the country. The mission was informed that Shanghai was one of the cities included in the program. The amount of assistance provided under this scheme as well as centrally funded schemes in the Shanghai area were not made available to the mission. Table 5.3 Breakup of Capital Construction Expenditure (1981) Item Amount in million Yuan Capital Construction (total)-l/ 542 - housing construction 150 - municipal engineering, i.e. road junctions, 55 sewerage treatment plants, drainage, etc. - industrial expenditure2/ 189 - commercial buildings, i.e. warehouses, cold 10 storage, markets - hospitals construction 45 - small irrigation 40 - telephones 27 - construction materials 26 1/ The existence of a Capital Construction Fund, consisting mainly of grants from the Central government was mentioned. It is understood that grants for this purpose amounted to 200 million yuan in 1980, 400 in 1981, and 500 in 1982. The mission could not confirm whether this fund was in addition to the capital construction budget or included in it as an accounting entity. 2/ Capital construction in industry, it was reported, was being reduced by the Central government.  - 14 - Table 5.4 Breakup of Maintenance Expenditure on Urban Services in Shanghai (1981) Item Amount in million Yuan Roads, bridges, river banks, sewers 60 Environmental sanitation, night soil collection, public toilets 36 Street lighting (energy charges) 6 Gardens and arboriculture 3 Traffic improvement, signals 2 Fire fighting 1 Miscellaneous 2 Total 120 5.5 While Districts are administrative units of the Municipal government without independent revenue services, the 10 counties of Shanghai Province appear to have such sources. Here again, a system of the county collecting profits from enterprises and taxes prevails. As in the case of Shanghai and Central government, the concept of "Joint leadership" applies and it is not clear which units remit profits to counties and which, direct to the Municipal government. Revenue and expenditure information on the counties which would help to understand the relative position of resources was not available.  _-15- ~ANNEX I Page l SHANGHAI MUNIGIPAL GOVERNMENT A. Administrative structure 1/: Shanghai Municipal People's Congress Mayor Commissions (or Offices & Bureaus with independent functions) Bureaus Divisions Districts and Counties Street and Road Offices B. List of Commissions, Offices and Bureaus equivalent to Commission which function under the Shanghai Municipal People's Congress: Commissions 1. Shanghai Municipal Planning Commission 2. Shanghai Municipal Capital Construction Commission 3. Shanghai Municipal Economic Commission 4.. Shanghai Municipal Agriculture Commission 5. Shanghai Municipal Commission for the Development of Science and Technology 6. Shanghai Municipal Minorities Affairs Commission 7. Shanghai Municipal Commission for the Protection of Antiquities 8. Office of Shanghai Municipal Finance and Trade 9. Office of Shanghai Municipal Export and Import 10. Office of Culture, Education and Public Health 11. Office of Shanghai Municipal Transportation 12. Office of Family Planning of the Shanghai Municipality 13. Office of Shanghai Municipal Foreign Affairs 14. Central Office of Shanghai Municipal Economic Research 15. Office of Shanghai Municipal Electricity Supply 16. Shanghai Municipal Flood Protection Office 17. Shanghai Municipal Coastal Defense Office 1/ The municipal government comprises commissions, offices and bureaus. It is headed by the Shanghai People's Congress, an elected body which is in turn assisted by the People's Consultative Committee. Commissions can be defined as the municipal government's policy advisory committees (i.e. non-administrative). Offices can be understood to mean "leading groups" of similarly styled working-committees located at all levels throughout the municipality-sometimes administrative, sometimes not. These "leading groups" form the specialized sections of the Mayor's Office and their heads hold rank between that of a bureau director and the Mayor himself. Bureaus are the municipality's administrative organs.  ANNEX I Page 2 - 16 - Commissions Cont'd. 18. Shanghai Municipal Air Raid Precaution Office 19. Shanghai Municipal Earthquake Protection Bureau 20. Shanghai Municipal Religious Affairs Bureau 21. Shanghai Municipal Civil Affairs Bureau 22. Shanghai Municipal Public Records Bureau 23. Shanghai Municipal Public Security Bureau 24. Shanghai Municipal Bureau of Labor C. Commissions/Offices with listing of Bureaus and Divisions under them: 1. Shanghai Municipal Planning Commission Persons Met During '82 April Mission 1.1 Office of Shanghai Municipal Planning LIU Gui Huang, Engineer Commission 1.1.1 General Division CHEN Dian Bang, Chief SEEN Chu Shi, Engineer XU Zhe Ming, Staff 1.1.2 First Engineering Division 1.1.3 Second Engineering Division 1.1.4 Third Engineering Division 1.1.5 Agriculture Division 1.1.6 Commerce Division 1.1.7 Capital Construction Division BAO Cun Ren, Staff 12 Shanghai Municipal Material Bureau 1.3 Shanghai Municipal External Economic Bureau 1.4 Shanghai Municipal Bureau of Statistics 2. Shanghai Municipal Capital Construction Commission 2.1 Shanghai City Planning and Building CAI Xi Xian, Deputy Gen'l. Engr.- Administration Bureau LIU Gui Huang, Engineer 2.1.1 Institute of City Planning & Design ZHAO Yun Xue, Deputy Chief 2,1.2 Shanghai Municipal Engineering Design SHENG, Jian-Kang Vice-Director, Institute Chief Engineer XIA Li Qing, Deputy Director ZHANG Xue Jian, Engineer PUAN Ming, Engineer PAN Jia Xian, Engineer HE Shan Quan, Asst. Engineer ZHAO Wan Lan, Designer  ANNEX I Page 3 _17 - Shanghai Municipal Capital Construction Persons Met During '82 April Mission Commission.. .Cont'd 2.2 Shanghai Municipal Environmental CHI Fei Cun, Director Protection Bureau LI Jian Bai, Deputy Chief GUO Ji Cai, Deputy Chief HUANG Yuan Jung, Engineer HUANG Shi Yin, Engineer ZHANG Zhe Lu, Engineer NI Suo Nan, Engineer JIANG Hui Shang, Engineer CHAO De Xing, Engineer 2.3 Shanghai Municipal Environment and Sanitation Management Bureau HOU Ren Ming, Director 2.3.1 Environmental Sanitation Manage- SHAN Jie, Chief ment Division 2.3_2 Division of Drainge CHIH, Hsu-Pai, Engineer 2.4 Shanghai Municipal Public Garden Management Bureau 2.5 Shanghai Municipal Housing and Real Estate Management Bureau 2.5.1 Utilization Division HUANG Lian Fang, Chief 2.5.2 Management Division 2.5.3 District and Country Housing and Real Estate Corporation 2.6 Shanghai Municipal Public Utilities LAO Yuen Shen, Dep. Gen'l. Engr. Administration Bureau GU Zhe Nan, Senior Engineer 2.6.1 Planning Division CHENG Zu Tian, Chief 2.6.2 Water Supply Corporation ZHANG Yun Jie, Chief Engineer, SONG Ren Yuan, Dep. Gen'l Engr. SUNG Lin Mei, Engineer WU Yan Jie, Engineer SHI Yu Ling, Engineer 2.6.3. Gas Supply Corporation- REX Jia Kuan, Vice Manager WAN Li Hu,. Electric. Engineer 2.6.4. Public Transport Corporation TANG HE Ting, Vice Manager WU Wei Xian, Dep. Gentl. Engr. ZHU Xian Sun, Gen'l. Accountant Science & Research Section XU Chen, Chief LO Ai Ling, Staff LU Tung Wen, Staff WAN Mei Cun, Staff KAO Ho Tieng, Staff 2.6.5. Equipment Corporation Science & Research Section CAI Jin Xi, Chief  ANNEX I Page 4 Persons Met 2.7 Shanghai Municipal Engineering Management Bureau 2.7.1 City Construction Division DING Tien CAI, Engineer WU Xiang Ling, Accountant 2.7.2 Drainage Division XU Pei Chi, Engineer 2.7.3 Waste Water Treatment Division 2.7.4 Tunnel Corporation XU Chengpo, General Engineer 2.8 Office of Shanghai Municipal Housing Construction Housing Construction Corporation 3. Shanghai Municipal Economic Commission 3.1 Agricultural Machinery Production Industry Bureau 3.2 Metallurgical Industry Bureau 3.3 Building Materials Industry Administration Bureau 3.4 Chemical Industry Bureau 3.5 Communications Equipment Industry Bureau 3.6 First Bureau of Machinery and Electrical Industries 3.7 Handicraft Administration Bureau 3.8 Light Industry Bureau 3.9 Municipal Materials Bureau 3.10 Ship Construction Industry Corporation 3.11 Textile Industry Bureau 3.12 Textile Fiber Inspection Bureau 3.13 Shanghai Municipal Meteorological Bureau 3.14 Shanghai Municipal Pharmaceutical Administration Bureau 4. Shanghai Municipal Agricultural Commission 4.1 Agricultural Farm Administration Bureau 4.2 Shanghai Municipal Agricultural Bureau 4.3 Municipal Commission for the Development of Agriculture 5. Shanghai Municipal Science and Technology Commission Shanghai Municipal Weights and Measures Administration Bureau 6. Shanghai Municipal Minorities Affairs Commission 7. Shanghai Municipal Commission for the Protection of Antiquities  ANNEX I 1 9 - Page 5 Persons Met 8. Office of Shanghai Municipal Finance and Trade 8.1 Shanghai Municipal Finance and Taxation Bureau GU Shu Zeng, Director 8.1.1 Office of Finance and Taxation Bureau CHU Hou Ren, Deputy Director JIAN Fan, Staff 8.1.2 Budget Di-ision TAN Shi De, Deputy Chief 8.1.3 Administration Affairs Finance Division 8.1.4 First Taxation Division WU Ni Qing, Chief 8.1.5 Second Taxation Division 8.1.6 Third Taxation Division 8.1.7 First Enterprises Finance Division 8.1.8 Second Enterprises Finance Division 8.1.9 Agricultural Finance Division 8.1.10 Finance Supervision Division 8.1.11 Personnel Division 8.1.12 Education and Propoganda Division 8.5 Municipal Commodity Inspection and Testing Bureau 8.6 Municipal Aquatic Production Bureau 8.7 Municipal Foodgrains-Bureau 8.8 Municipal Supply and Distribution Corporation 8.9 Shanghai Municipal Foreign Trade Bureau 8.10 Shanghai Customs 9. Office of Shanghai Municipal Export and Import 10. Office of Culture, Education and Public Health 10.1 Municipal Public Health Bureau 10.2 Municipal Education Bureau 10.3 Municipal High Education Bureau 10.4 Municipal Culture Bureau 10.5 Municipal Film Bureau 10.6 Municipal Publications Bureau 10.7 Municipal Broadcasting Administration Bureau 10.8 Shanghai Municipal Commission for Protection of Antiquities 11. Office of Shanghai Municipal Transportation 11.1 Transportation Bureau Transport Administration Division FAN Ji Qing, Chief Planning and Finance Division XIAN Gui Qing, Deputy Chief 11.2 Shanghai Municipal Post and Telecommunications Administration Bureau  ANNEX I Page 6 - 20 - Persons Met 11.3 Harbor and Dockyard Affairs 13. Office of Shanghai Municipal Foreign Affairs 13.1 Shanghai Municipal Travel and Tourism Administration Bureau 23. Shanghai Municipal Puiblic Security Bureau 23.1 Traffic Management Division MAIO Feng Sheng, Chief Others Met During the Mission Shanghai Institute of Finance: Prof. MA Chia Hwa, CHU Shao Tsai, (Interpreter) Bureau of Finance: TONG Ching Gong,(Interpreter) CHEN Kai Yan, (Interpreter) Beijing Director of External Finance GE Fucun Department of Ministry of Finance Division Chief, City Construction LI Yue Bureau of Planning Commission of People's Republic of China Staff of World Bank Division ZHENG Zhaobin External Finance Department Ministry of Finance Interpreter CHU Shaoshan Interpreter and staff of World Bank CHAO Shiao Yu Division of Ministry of Finance Staff of the World Bank Division of GAD Huang Ministry of Finance UNDP Resident Representative SHALON, Nissim LEITNER, Kirstin  Staff of Selected Units Under the Shanghai Municipal Capital Construction Commission, April 1982 ManaRerlal rersonnel Fi rotessional ersonnei -inance Yedical Directors Divisio Civil & & Science Sub- and Chief & Sub- Engi- Accoun- Public Statis- Mathema- Research- Trans Tech- Total total Deputies Deputief total neers tants Health ticians ticians ers ljalors nicianE Others 2. Shanghai Municipal 202 37 12 25 71 28 1 9 33 5 89 Capital Construction Commission 2.1 Shanghai City 4,575 46 7 39 2,170 2,148 .22 2,130 229 Planning Bureau 2.2 Shanghai Municipal 332 29 7 22 188 50 8 5 4 121 32 83 Environmental Protection Bureau 2.3 Shanghai Municipal 12,542 6 6 133 54 35 32 12 12,041 362 Environment and Sanitation Manage- ment Bureau 2.4 Shanghai Municipal 6.696 34 4 30 78 43 2 33 6,281 303 Public Garden Management Bureau 2.5 Shanghai Municipal 9,558 46 5 41 511 300 71 124 12 4 8,482 519 Housing and Real Estate Management Bureau 2.6 Shanghai Municipal 66,308 66 3 63 1,856 1,005 246 532 14 57 2 62.439 1,947 Public Utilities Administration Bureau 2.7 Shanghai Municipal 30,353 74 6 69 1,413 1,085 134 98 35 52 9 24,679 4,187 Engineering Manage- ment Bureau . . H~~~~~~~~~~~~~~~~~~~~~  - 22 - ANNEX III Functions of Selected Bureaus Under the Capital Construction Commission 1. Shanghai City Planning Bureau Responsible for overall and detailed physical planning; assistance to counties for physical planning; preparation of projects for various urban services through the Planning and Design Institute. 2. Municipal Environmental Protection Bureau Monitoring, regulation and abatement of water and air pollution. 3. Municipal Environment and Sanitation Management Bureau Night soil collection and removal; garbage collection, removal and disposal. 4. Municipal Planning and Real Estate Management Bureau Allotment and maintenance of housing and appertainant ? land. 5. Office of Housing Construction - Construction of New Housing Municipal Engineering Management Bureau City roads and highways, drainage, waste water treatment, tunnels and bridges and public works other than housing and those assigned to specific bureaus.  - 23 - 23 - ~~~~ANNEX IV Miscellaneous Socio-Economic Indicators for Shanghai and China Unit 1949 1980 1980 China China Shanghai Port & Telecom Transactions (at 1970 constant prices) (mln. yuan) 97 1,334 64.66 Tourists (thousands) - 5,700 312 Feature films produced (number) 6 82 17 Film projection units (thousand) 0.6 127 0.7 Performing art troupes (number) 1,000 3,533 48 Cultural centres 896 2,912 23 Public libraries 55 1,732 23 Broadcasting Stations 43 106 1 Television centres - 38 1 Books produced (mln. copies) 105 4,590 562 Magazines " 20 1,120 122 Sources: World Bank, China Economic Report 1981 Communique of Municipal Statistical Bureau, Shanghai 1980