At present, people of each country in the world are undertaking active efforts not only to protect the environment of their own country, but also to en devour to achieve environmental protection on a global scale through vigorous and extensive international cooperation. The government of China has attached great importance to environmental protection and has clearly stated that environment al protection is one of the basic national policies. I would like to take-this opportunity to give an introduction on investment policies and results of environ mental protection in China.

　　It is known to all, that sustainable economic and social development must be based on good natural resources and ecological conditions, and that the problems of environment can only be solved in the framework of overall development. Thus, environmental protection and economic development shall be viewed as a whole, which can not be separated. China, as a developing country, has devoted much attention to developing our country while also protecting the natural environment and treating pollution.

　　It is clearly stipulated in the Law of Environmental Protection that "The state-issued environmental protection programme must be brought into line with national economic and social development plans, and the measures and means of economic and technical policies which the state shall take should be advantageous to environmental protection, in order to make the course of environmental protection in harmony with the economic construction and social development."

　　In the 6th Five-Year Plan, environmental protection programmes started to be troughs into line with national economic and social development plan, stating various targets to be fulfilled. In the 7th Five-Year Plan, the environmental protects on programme was listed also one independent chapter, thus, standardization and s scientific approaches have been much improved. In the 8th Five-Year Plan, the state has issued annual environmental protection programmes, and required close coordination between environmental protection administration and the relevant organizations, in order to assure that the planned objectives are accomplished.

　　The annual investment in natural environmental protection and pollution treatment has been greatly increased. In the 6th Five-Year Plan, total investment amounted to 17 billion yuan. In the 7th Five-Year Plan, it increased to 30 billion yuan, and in the 8th Five-Year Plan, it will reach 80 billion yuan, among which 14 billion have been invested in the following fields:

　　I. In the field of protecting the natural environment

　　In 1991, the State invested 550 million yuan on water resources protection along large-sized rivers, agricultural ecological environment construction and control, afforestation, flood control, soil conservation, and the treatment of soil erosion. The main results of this investment are: 233,600 sq km along the Yangtze River, Yellow River and 5 other major rivers have been controlled with respect t o water resources protection, water and soil conservation, and soil erosion area s totaling 154, 700 sq km have been controlled. The above-mentioned achievements include areas in 122 counties, 13 cities and prefectures in 12 provinces.

　　In addition, comprehensive trial treatments in small river basin areas are under implementation in 96 counties of 22 provinces and autonomous regions. In the 5 provinces and autonomous regions along the midstream of the Yellow River where t he sandy and coarse sandy areas are located, silt-arrester trial projects along river gullies are in pothered. Shelter-Forest Projects are under way in the northeast, Northwest and North China areas. Also the Yangtze River Upper mid-Stream Shelter-Forest Project, Coastal Areas Shelter-Forest Projects, Tailing Mountain Afforestation Project, Plain Area Afforestation Project and National Protection Zones are well under implementation. And we are carrying on the measures to pre vent desertification of farmland.

　　In support of this investment, localities have allocated relevant investment which has been spent on control and protection of the ecological environment.

　　II. In the field of pollution pollution treatment

　　The policy of "he who pollutes, must treat the pollution" is strictly enforced, with the aim that, while maintaining returns on investment, the responsibilities of protecting the environment and treating the pollution caused by the co instruction an development of new projects shall be borne by the investors. In the field of treating pollution, we have adopted the means of raising funds form t he following main sources:

　　a. The portion of environmental protection funds in infrastructure projects, It is strictly required that environmental protection facilities shall be designed, constructed and completed as an integral part of all new capital construction projects. In 1991, 5 billion yuan has been invested with the main purposes of con trolling the creation of new pollution and pollution loads.

　　b. Environment protection funds in technical rehabilitation investment. In 1991, about 2 billion yuan was invested, which was mainly aimed at reducing the pollution caused by old enterprises. In the 8th Five-Year Plan, the measures in that field shall be strengthened to require that 7% from the technical rehabilitation portion of annual investment be spent on the treatment of pollution at each level of related government units, organizations and enterprises.

　　c. Urban maintenance environmental protection expenses. In 1991,about 2.5 bill ion yuan has been invested, mainly in the fields of urban drainage systems (including urban sewage disposal plants), gasification, central heating, afforestation, urban sanitation and hygiene, etc.

　　d. Pollution fees returned and used for treatment. Of the pollution fees paid by enterprises, 80% is used by enterprises or relevant government authorities to s supplement pollution treatment funds, and the remaining 20% is used to strengthen environmental protection administration. In 1991, the investment in this field amounted to about 2 billion yuan.

　　e. The first 5 years of profits earned by enterprises from multi-purpose pollution prevention projects, can be retained by the enterprises for use on further pollution treatment. In 1991, the amount of this portion of investment reached 1 billion yuan.

　　f. Loans on favorable terms are made available to enterprises for pollution control in multi-purpose projects. For technical rehabilitation projects, applications can be made to the Industrial and Commerce Bank, and for infrastructure projects, applications can be made to the Construction Bank. In 1991, the investment in this field reached about 300 million yuan.

　　g. In 1991, about 150 million yuan was provided as subsidies by the State to several provinces and municipalities for the treatment of urban pleated water.

　　h. Loans both form foreign governments and international monetary organizations are borrowed by the State according to the stipulated plan to implement projects of sewage treatment and purification in some old cities. In 1991, the amount of loans utilized reached about 100 million USD.

　　III. Strengthening the development of environmental protection administration

　　The government has attached special importance to building up environmental protection administrations and scientific research in the fields of environmental monitoring, publication, education, natural protection and pollution treatment, et c.. In all, 4,243 monitoring stations have been established to form a preliminary national environmental monitoring network. Since 1980, the State has started to issue Environmental Status Bulletins.

　　The localities have, one after another, set up some organizations to publicize environmental laws and policies by means of education, film, television, literature and art. As a result, the concepts of environmental protection have become much more popularized than before.

　　To strengthen the development of the environmental protection sector, and to train qualified professionals, there are 73 universities and colleges offering the specialties of environmental protection. In the 7th Five-Year Plan, the State ha s allocated 350 million yuan in this regard. In the 8th Five-Year Plan, the State will take further steps and measures to accelerate the build-up, enlarging he environmental monitoring network, strengthening personnel training and improving the qualifications of professionals. In addition, the State will allocate the funds for scientific research and the operation of environmental protection sectors. In the mean time, the innate departments at various levels will also allocate supporting funds according to availability. In 1992, the funds with respect to this field amounted to 100 million yuan.

　　The above presented information could show that the pattern of investment for natural environmental protection and pollution treatment has been formed with contributions from state and local governments, enterprises and overseas sources.

　　Based on the realities of the present state of the environment, national development and the limitation in funds, we have adopted. policies to initiate the key programs. At present, the major targets are: to control the origins of pollution, to implement comprehensive treatment in the areas where economic activities are concentrated, and to focus on those cities where pollution is a serious problem.

　　Concrete practice has shown that the above-mentioned investment policies are bas ed on Chinese characteristics and will yield obvious benefits. In recent years, the capacity for treatment and control of waste water, waste residue, waste gas and noise has been much improved.

　　In the meantime, however, we have noticed that there is still a gap between the amount invested and the actual level of need. Ineffective management and administration still exist on some projects. Problems in investment planing, low environmental benefits on some projects and scattered expenditures have lead to difficulties in establishing largescale model projects.

　　It is certain that the necessity for protecting the natural environment and cont rolling pollution will increase with further national economic and social development. Therefore, we shall devote ourselves to the following policies:

　　a. To strengthen the programming for natural environmental protection and pollution treatment. This not only requires a long-term programme and arrangements, but also requires that the work which should be done in the present period shall be prioritized in order of importance and urgency.

　　b. To broaden financing sources. This implies that the State and provinces, to some extent, increase investment on large-scale projects. By means of economy and administration, the Prussian of expenses which should be used on environmental protection must be spent on it, in accordance with state regulations and requirements.

　　The borrowing f international financing shall be encouraged and its utilization shall be mainly on pollution treatment in some old cities. The issuance of stock s to raise funds for environmental protection is also to be considered.

　　c. To strengthen the various laws and regulations on environmental protection. T he measures to be taken are to systematize the laws and regulations, in order to establish and improve the position of the environmental protection sector in national economic and social development, and therefore, to ensure that investment is efficiently implemented in the country.