His Excellency Mr. Li Peng
Premier
Office of the Premier
Beijing
People’s Republic of China

Vienna, 16 January 1996

The International Press Institute (IPI), a global network of editors and media executives from newspapers, magazines, broadcasting organisations and news agencies in 85 countries, is most concerned about China’s decision to restrict the free flow of economic information from foreign news organisations.

We are informed that a cabinet edict issued on Tuesday, 16 January 1996, said foreign news agencies must submit to regulation by the official Chinese news agency, Xinhua,. The edict, citing national security, forbids domestic organisations from directly buying economic information from foreign sources and allows Xinhua to determine subscription rates of foreign news vendors. Xinhua’s traditional information monopoly has been undermined by foreign vendors who have entered the Chinese market with other official partners. Foreign players in China’s markets include Reuters Holdings Plc., Dow Jones-Telerate and Bloomberg. We understand that the directive further threatens punishment for approved vendors if their information “slanders” China.

IPI believes that any restriction on the flow of news, and specifically news supplied by the international news agencies across national borders, is a restriction on freedom of the press. In a resolution adopted at its Executive Board Meeting in London (November 1994), IPI called on all governments to immediately and unconditionally abandon all restrictions they may have on the flow of news across borders and to abandon monopolies that may exist in their countries on the distribution of foreign or domestic news.

IPI further believes that this decision threatens the fledgling financial sector in China, slamming shut a door opened by the economic reforms of 1979. We therefore urge Your Excellency to ensure that the State Council decree is revoked, that foreign news agencies are allowed to provide economic information without restriction and that everything is done to encourage the free and unhindered distribution of news from all sources inside or outside China’s national borders to Chinese users.

We thank you for your attention.

Yours sincerely,

Johann P. Fritz
Director