DIALOGUE 2

Xinhua: What issues or what reforms are you most concerned about if you were a deputy to the National People's Congress?

"I think the most important is the moral and material values for officials and leaders. That's No.1," said Stephen Perry, a seasoned British entrepreneur and China watcher.

"I want to see they clearly lay down what they can do and they can't do, and set up clear guidelines to what is the acceptable behavior," said Perry, who is also chairman of the 48 Group Club, an independent business network committed to promoting relations between Britain and China.

"The second thing that I think is important is that the Chinese officials need to be accountable ... I think for that reason, it is important that the processes of the government are transparent," Perry said.

He also stressed the importance of allowing the market a greater role, saying it is necessary for the government to find the balance between freedom to develop and control.

"Allowing the market a greater role is clearly happening. What they got to do is to protect the people from fraud if the market is allowed too much," he said.

"You have to allow the initiative of market mentality, and you have to make sure the moral and economic controls are in place, to make sure the people are protected from fraud. That's the bottom line. And I think the Chinese leadership understands it very well."

"They need to make it clear to officials that their job is to serve the people. That is a very old phrase in China: serve the people ... You can use that phrase in the USA, UK, Australia, Russia ... it's the same everywhere. If the officials don't serve the people, then you have corruption."

Stephen Sham, Mayor of Alhambra, California of the United States, replied that environment problem is what the world and China concern about.

"The most serious problem is what we see today, the smog, not only in the capital Beijing, but also in many other cities, such as Shanghai, they all have this problem. But this is what a developing country has to have. Here in America, we had the same problem before."

"Smog problem is coming with the development, as the number of cars increase, the industry grows, it is a process," he said.

"Talking about how to learn from the United States, how to give back the people a healthy and comfortable living environment, strict legislation and law enforcement are important, such as the oil quality issue. I think China should work on the legislation to make sure a good quality. And the law enforcement could be more strict," said Sham.