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Wen Jiabao: Financial Crisis Could Be Catastrophic to China

A report from Cheng Ming (a monthly magazine from Hong Kong) disclosed Wen Jiabao’s speech in a recent meeting on China’s financial situation. Wen said: "[The state of the financial system] leads the nation’s economic development, social stability, and political security. Once a crisis is triggered, it will be out of control and catastrophic to the overall situation."

Two State Council Meetings on The Financial System

Since May 1, 2006, Wen Jiabao has called for two meetings on financial issues. The first was a State Council meeting to focus on the financial environment. Participants included representatives from the Ministry of Finance, the Central Bank, the China Banking Regulatory Commission, and the State Administration of Foreign Exchange. The second meeting focused on financial crises.

At the financial environment meeting, Wen said: "I am on alert all the time. We should not be too excited by the economic statistics, foreign exchange reserve figures, or reports on large-scale investment projects. By the same token, I also ask everyone not to allow the numbers, records, and positive reports to cause you to become too excited or even complacent."

Wen also said: "The central government’s macro-control policies have always been challenged and resisted by invisible forces that tend to take advantage of the policy so as to benefit themselves. As a result, the policies have not achieved the expected results. In some regions and industries, officials continue to work against the policies. This reflects the severe resistance to the implementation of laws and regulations. I am very concerned about our financial system, which is the leading force for economic development, social stability, and political security. If a financial crisis ever occurs, it will be catastrophic to the overall situation. No one will be able to handle the consequences."

Wen Has Three Worries

Wen says: "There are three issues that I worry about the most. The first is land, the lifeblood of villagers and farmers; the second is the living conditions of residents and migrant workers in urban areas, including housing, medication, and education; the third is the financial situation. Managing the financial system not only is a complex and profound science that involves knowledge of politics, the economy, and the social and international situation, but also the art of modern management. It is also a duty that requires loyal commitment and a sense of moral responsibility to the country."{mospagebreak}

Wen on Financial Crises

At the multiministry meeting on financial crises, Wen said: "Any trouble in our financial system could cost billions, tens of billions, even hundreds of billions. It could also trigger regional or national social unrest, the consequences of which would be beyond what any government agency or official could handle. There have always been problems in our financial system. There are old problems, new problems, and the complications that arise when old and new problems are intertwined. The most prominent and widespread problem is noncompliance with the central government’s policies. There are phenomena of localism and provincialism colluded with illegalities. Although I do not want to talk about such things, they are happening everyday, and the situation is deteriorating and spreading."

Wen said: "We ought to discipline ourselves with laws and regulations, but it seems that is not an easy task to accomplish." He also warned, "I am not afraid of the financial pressure from the international community; far more dreadful is that we ruin our own financial regulations."

Official and Internal Statistics On China’s Financial Health

The following are some financial data from official publications and internal sources from the end of April to mid-May 2006.

(1) From May 2001 to the end of March 2006, the Ministry of Finance has injected capital into the four state-owned commercial banks to eliminate their bad debts 15 times, for a total amount of 3.47 trillion yuan (US$434 billion). In the most recent two cases, 137 billion yuan (US$17 billion) was poured into the Bank of China in the beginning of April, and 85 billion yuan (US$17 billion) into the China Industrial and Commercial Bank at the beginning of May. The reason for the capital injections was that, by the end of May, the Bank of China had its IPO on the Hong Kong stock market, and the Industrial and Commercial Bank will be listed on the Hong Kong stock market by July or August.

(2) At the end of March, four state-owned banks reported bad debts of 2.35 trillion yuan (US$294 billion) in total. The Industrial and Commercial Bank reported 867 billion (US$108 billion); the Bank of China had 545 billion (US$68 billion); the China Construction Bank had 683 billion (US$85 billion); and the China Agriculture Bank reported 254 billion (US$32 billion).

(3) At the end of March, 150 local commercial banks reported 1.547 trillion yuan (US$193 billion) in bad debts. Among them, 52 banks are at the edge of bankruptcy and are being kept alive only by government capital.{mospagebreak}

(4) Three state-owned policy banks also reported 76 billion yuan (US$9.5 billion) in bad debts at the end of March. Among them, State Development Bank had 2.65 billion (US$331 million); the Agriculture Development Bank had 14.48 billion (US$1.8 billion); and the Import and Export Bank reported 59.28 billion (US$7.41 billion).

(5) By the end of April 2006, China’s foreign exchange reserve reached US$920 billion (US$115 billion).

(6) Total deposit in all financial institutions is 12.3 trillion yuan (US$1.54 trillion).

(7) Total amount of various bonds and notes is 2.1 trillion yuan (US$262.5 billion).

(8) Total cash in people’s hands is 2.2 to 2.5 trillion yuan (US$275-313 billion).

Bad Debt in Some Major Provinces

The following data are bad debts collected at the end of March:

  • Guangdong: 720 billion yuan (US$90 billion)
  • Zhejiang: 310 billion (US$38.75 billion)
  • Shandong: 190 billion (US$23.75 billion)
  • Jiangsu: 270 billion (US$33.75 billion)
  • Shanghai: 190 billion (US$23.75 billion)
  • Liaoning: 230 billion (US$28.75 billion)
  • Fujian: 120 billion (US$15 billion)
  • Heilongjiang: 150 billion (US$18.75 billion)
  • Henan: 87 billion (US$10.9 billion)
  • Hubei: 79 billion (US$9.9 billion)

Risks in the Financial System

According to a report by the Chinese Academy of Social Sciences, in case of a financial crisis or political unrest, China’s financial institutions could only handle 5 to 7 percent of the total withdrawal requests in the large and mid-size cities.

Translated by CHINASCOPE from

L·n YÈ: The Analects by Confucius

Chinese traditional culture, art, and philosophy encompass many forms. The Analects by Confucius contain much wisdom, folklore, guidelines for daily living, and encouragement to practice virtue and good citizenship.

The literal meaning of the term analects is "discussion over Confucius’ words." The Analects continue to influence Asian thought and values even today. There has even been a recent attempt to reintroduce Confucian learning in public schools.

Traditional accounts tell us that Confucius wrote these words over a period of 30-50 years, during the Spring and Autumn Period through the Warring States era, approximately 479 B.C. and 221 B.C. The exact publication date cannot be pinpointed. It is even quite likely that disciples of Confucius later wrote down their master’s thoughts and their own thoughts about him. That might account for the chapters in the book not being arranged to contain a continuous stream of thoughts or ideas. It seems the chapters are completely random. Adjacent chapters are unrelated to each other, and vital ideas recur repeatedly in various chapters throughout the book, leading many scholars to believe the book was penned by more than one individual-a collective effort, much like the compilation of the Christian Bible (written many years after Jesus’ death) and the Greek classic Plato’s Republic. One of Confucius’ most renowned students, Zhengzi, urged his followers to function as final editors of the analects.

By the time of the Han Dynasty three analects versions were popular-the Lu, Qi, and Ancient Text Analects. The two former works were quite similar, but the Ancient Text Analects featured two additional chapters. Except for the latter, all three versions shared 20 chapters. The version that survives and is the most popular today is known as the Marquis Zhang Analects.

Confucius lived during an era where warrior-based, personality-based societies were unraveling. Evident then was a society based on mediation and more direct access to the ruler. Extreme ethics of loyalty to one’s superiors and paternal care for inferiors was fading somewhat. Manners and proscribed rituals were losing some of their luster as well. Nevertheless, The Analects continued to foster Confucian values, including propriety, righteousness, learning, filial piety and loyalty—all attributes based on Confucius’ concept of humanity. A traditional Chinese scholar was not considered his worth of learning if he did not practice moral fortitude, and he was considered completely unenlightened unless he had studied Confucius’ works. Anyone seeking employment in those days had to pass the imperial examinations, begun during the Jin Dynasty. These exams were abolished with the founding of the Republic of China.

The book’s tenth chapter details instructions for proper conduct in daily living, applicable for all to this day.

Chinese Communist Map for the Globalization of Socialism in the 21st Century

On May 11, 2006, the Research Center for Global Socialism of the Chinese Academy of Social Sciences in Beijing held an opening ceremony to celebrate the publication of the "2006 Yellow Paper on Global Socialism."[1]

Over 100 Communist Party officials, scholars, and research staff attended the ceremony. Li Shenming, Director of the Research Center for Global Socialism, spoke at the ceremony.

Li stated that world socialism has hit its lowest ebb since the downfall of the former Soviet Union and East Germany. In 1994, the Chinese Communist Party issued a mandate: Under the auspices of the Communist Party’s Department of Propaganda, an "Overseas Socialism Research Group" was established. Its participants include the Liaison Department of the Chinese Communist Party, the Translation Bureau of the Central Committee of the Communist Party, the Xinhua News Agency, the Communist Party Institute, and China’s National Education Commission.

Over the past 12 years, this research group has completed a number of projects providing the foundation for Communist Party policies.

Li stated that new research on global socialism should focus on the following areas:

The rise and fall of the Soviet Communist Party and the former Soviet Union

The current status and projected trends of modern capitalism

The relationship between socialism and capitalism, including their historical relationship and ongoing conflicts; the temporary success of capitalism and the ultimate, inevitable victory of socialism; and their long history of cooperation, competition, and often intense stand-offs

An analysis of and projections for the progress of socialism worldwide in the 21st century

Li particularly stressed the need for the long-term tracking of new developments in reforms in existing socialist countries; the restructuring of communist parties in both western and eastern countries; and the spread of Marxism, socialism, and other left-wing movements of labor unions, students, and farmers.

Li further emphasized that inequality in the political and economic order may temporarily maintain prosperity in the few developed countries only to accelerate and aggravate the disparity between the wealthy and the poverty-stricken. "We will co-exist with the capitalist world for a long time. We must apply our firm principles with flexible strategies. … The 21st century will be one in which socialism revives," concluded Li.{mospagebreak}

The above are selections from the meeting. Many scholars spoke and their viewpoints were diverse.

Xiao Tian is a correspondent for Chinascope.

[1] The Chinese Academy of Social Sciences,


Outlook: The Future of Socialist Development in the 21st Century (Excerpts)
Preface to the 2006 Yellow Paper on Global Socialism

By Li Shenming

"No question. Socialist movement in the world is still at a low point. But when we look around, clearheaded, and examine world trends, we can be absolutely confident in concluding that, instead of ‘termination,’ the worldwide socialist movement will gradually revive in spite of difficult times and will further develop to see a booming spring in the new century."

"At present, the global socialist movement has not only survived enormous changes in the former Soviet Union and East Germany, it has recovered and developed. One, socialist countries such as China, Cuba, Vietnam, Korea, and Laos are bucking unprecedented pressure, proactively exploring a socialist path applicable to their respective countries. … Two, with renewed enthusiasm for Marx in western developed countries, a resurgence of Marxism is now highlighting the international political arena. Three, in former socialist countries, socialist forces are regrouping. Four, countries in Asia, Africa, and particularly Latin America, having tasted the bitter fruit of neo-liberalism, are witnessing more and more left-wing governments in power.

"As we are well aware, socialism is the most fundamental social change ever in human history and will not be displaced by any global alternative. Fight, failure, fight again, high points, low points, and a rise to even greater heights-this is the inevitable process by which global socialism will ultimately replace global capitalism."

Translated by CHINASCOPE from

A Joint Statement on the “Organ Harvesting Investigation” Report

On July 6, 2006, international human rights lawyer Mr. David Matas and former Member of Parliament Mr. David Kilgour released their investigative report on the Chinese Communist Party’s (CCP’s) harvesting of organs from living Falun Gong practitioners. Although we had been aware of the CCP’s crimes in this area beforehand and had mentally braced ourselves for the extent of the bloodiness and brutality that might be touched upon in this report, we were still deeply shocked and grieved when we were faced with this report. In order to express our concern and support for our fellow Chinese who have suffered such an atrocity and to protest the CCP’s crimes against humanity as mentioned in this report, we, Lin Mu, Sun Wenguang, Gao Zhisheng, Jiao Guobiao, Zhang Jiankang, and Yang Zaixin, hereby make the following statement:

1. This is the first investigative report on the CCP’s illegal persecution of Falun Gong done outside of China since the persecution started in 1999. This is also the first independent investigation on record into the CCP’s long-term crimes against humanity.

2. The two investigators’ independent status, consistent good reputations, and professional specialties guarantee the objectiveness and justness of this investigative report.

3. In its "Conclusions," the report states, "Each portion of the evidence we have considered is, in itself, verifiable and, in most cases, incontestable. Put together, they paint a damning whole picture. It is their combination that has convinced us." Such meticulousness and prudence in the investigative procedure ensure the objectiveness and justness of the results.

4. We support the two investigators’ conclusion that "the government of China and its agencies in numerous parts of the country, in particular hospitals but also detention centers and ‘people’s courts,’ since 1999 have put to death a large but unknown number of Falun Gong prisoners of conscience. Their vital organs, including hearts, kidneys, livers and corneas, were seized virtually simultaneously and quite involuntarily for sale at high prices, sometimes to foreigners."

5. Therefore, we again urge the international community to recognize and correct as soon as possible the current state of indifference and lack of sympathy regarding the CCP’s continuing atrocities against humanity. Such unconscionable lack of concern and unresponsiveness is shameful to all of humanity. The report reveals the CCP’s ongoing horrible crimes, crimes that arbitrarily trample on human rights, human ethics, and human lives. Every fact revealed in this report is an indictment of the CCP for its crimes against humanity and the crime of genocide. The investigation and the report reflect the value of having laws govern nations and the importance of safeguarding justice for all of humankind. We therefore call upon the international community to set up an international court similar to the one for trying the Yugoslavian war criminals and to launch a special criminal investigation into the CCP’s crimes against humanity and its crime of genocide. We also place our hopes in these two investigators to continue to carry on their irreplaceable roles in this cause. Actions should be taken immediately. As the report indicates, such crimes are escalating each day, so any excuse or tactic that delays the investigation and trial would be another crime against humanity.{mospagebreak}

6. We urgently call upon those individuals inside the CCP’s leadership who still have a conscience and who have not been involved in this crime to use everything in their power to help end the misery China is now suffering. We call upon these people either to bravely step forward to testify or to play a positive role in private to help the investigation. At the very least, do not become an accomplice to the criminals by helping to cover up their crimes. Please use every means possible to protect the evidence and do what a responsible Chinese should do.

Mr. David Matas pointed out that the CCP is committing "a form of evil we have yet to see on this planet." But the evil Mr. Matas has seen is only the tip of the iceberg. Humans have to stand up to the CCP regime right here, right now, or else such evil "we have yet to see" will never cease. We also appeal to the two investigators, who have already discovered some of the truths, to bravely take the lead in further spreading these truths to the international community, so as to wash clean this shameful episode in human history.

We, along with all the Chinese people and the rest of the people of the world, present and future, will forever remember the names of these two investigators.

July 7, 2006, in Beijing

Lin Mu, Personal Secretary of former Chinese leader Hu aobang. Now retired in Shaanxi Province.

Sun Wenguang, retired professor from Shangdong University

Gao Zhisheng, human rights lawyer from Beijing. His license was suspended for one year due to publicly appealing to top leaders to stop the persecution of Falun Gong.

Jiao Guobiao, former associate professor of journalism at
Beijing University. He was demoted from his post after publishing his article criticizing the Chinese Propaganda Ministry.

Zhang Jiankang, human rights lawyer from Shaanxi Province.

Yang Zaixin, human rights lawyer from Guangdong Province. His
license was suspended for defending Falun Gong practitioners.

Translated by CHINASCOPE from The Epoch Times

Transcript of Telephone Investigations

Appendix 14 of the Report into Allegations of Organ Harvesting of Falun Gong Practitioners in China

[Editor’s note: Below are excerpts of telephone conversations between Canadian and U.S. investigators (M and N) and officials in detention centers and hospitals in China. The recorded conversation was listened to and certified by a certified Madarin-English interpreter with the Government of Ontario.]

(1) Mijiang City Detention Center, Heilongjiang Province (June 8, 2006):

M: Do you have Falun Gong [organ] suppliers? …

Mr. Li: We used to have, yes.

M: … what about now?

Mr. Li: … Yes.


M: Can we come to select, or you provide directly to us?

Mr. Li: We provide them to you.

M: What about the price?

Mr. Li: We discuss after you come.


M: How many [Falun Gong suppliers] under age 40 do you have?

Mr. Li: Quite a few.


M: Are they male or female?{mospagebreak}

Mr. Li: Male


M: Now, for … the male Falun Gong [prisoners], how many of them do you have?

Mr. Li: Seven, eight, we have [at least] five, six now.

M: Are they from countryside or from the city?

Mr. Li: Countryside.

(2) Shanghai’s Zhongshan Hospital Organ Transplant Clinic (March 16, 2006):

M: Hi. Are you a doctor?

Doctor: Yes, I am…


M: … So how long do I have to wait [for organ transplant surgery]?

Doctor: About a week after you come…

M: Is there the kind of organs that come from Falun Gong? I heard that they are very good.

Doctor: All of ours are those types.

(3) Qianfoshan City Liver Transplant Hospital, Shandong Province
(March 16, 2006):

Receptionist: Hold a second. I’ll get a doctor for you.
Doctor: Hello. How are you?

M: … How long have you been doing [these operations]?…{mospagebreak}

Doctor: … Over four years.

M: The supply of livers… the ones from Falun Gong, I want to ask if you have those types?

Doctor: It is ok if you come here.

M: So that means you have them?

Doctor: … In April, there will be more of these kinds of suppliers… now, gradually, we have more and more."

M: Why will there be more in April?

Doctor: This I can’t explain to you…

(4) Nanning City Minzu Hospital in Guangxi Autonomous Region
(May 22, 2006):

M: Could you find organs from Falun Gong practitioners?

Dr. Lu: Let me tell you, we have no way to get [them]. It’s rather difficult to get it now in Guangxi. If you cannot wait, I suggest you go to Guangzhou because it’s very easy for them to get the organs. They are able to look for them nationwide. As they are performing the liver transplant, they can get the kidney for you at the same time, so it’s very easy for them to do. Many places where supplies are short go to them for help.


M: Why is it easy for them to get?…

Lu: Because they are an important institution. They contact the judicial system in the name of the whole university.

M: Then they use organs from Falun Gong practitioners?{mospagebreak}

Lu: Correct…


M: … What you used before [organs from Falun Gong practitioners], were they from detention center(s) or prison(s)?"

Lu: From prisons.

M: … And it was from healthy Falun Gong practitioners…?

Lu: Correct. We would choose the good ones because we assure the quality in our operation.

M: That means you choose the organs yourself.

Lu: Correct…


M: Usually, how old is the organ supplier?

Lu: Usually in their thirties.

M: … Then you will go to the prison to select yourself?

Lu: Correct. We must select it.

M: What if the chosen one doesn’t want to have blood drawn?

Lu: He will for sure let us do it.

M: How?

Lu: They will for sure find a way. What do you worry about? These kinds of things should not be of any concern to you. They have their procedures.{mospagebreak}

M: Does the person know that his organ will be removed?

Lu: No, he doesn’t.

(5) Shanghai Jiaotong University Hospital’s Liver Transplant Center
(March 16, 2006):

M: I want to know how long [the patients] have to wait [for a liver transplant].

Dr. Dai: The supply of organs we have, we have every day. We do them every day.

M: We want fresh, alive ones.

Dr. Dai: They are all alive, all alive…

M: How many [liver transplants] have you done?

Dr. Dai: We have done 400 to 500 cases… Your major job is to come, prepare the money, enough money, and come.

M: How much is it?

Dr. Dai: If everything goes smoothly, it’s about RMB 150,000… RMB 200,000.

M: How long do I have to wait?

Dr. Dai: I need to check your blood type… If you come today, I may do it for you within one week.

M: I heard some come from those who practice Falun Gong, those who are very healthy.

Dr. Dai: Yes, we have. I can’t talk clearly to you over the phone.

M: If you can find me this type, I am coming very soon.

Dr. Dai: It’s ok. Please come.{mospagebreak}

M: … What is your last name?…

Dr. Dai: I’m Doctor Dai.

(6) Zhengzhou Medical University Organ Transplant Center in Henan Province (March 14, 2006):

Dr. Wang: … For sure, [the organ] is healthy… If it’s not healthy, we won’t take it.

M: I’ve heard that those kidneys from Falun Gong practitioners are better. Do you have them?

Wang: Yes, yes, we pick all young and healthy kidneys…

M: That is the kind that practices this type of [Falun] Gong.

Wang: For this, you could rest assured. Sorry I can’t tell you much on the phone.

M: Do you get [them] out of town?

Wang: … We have local ones and out-of-town ones.


M: What is your last name?

Wang: Wang.

(7) Oriental Organ Transplant Center (also called Tianjin City No. 1 Central Hospital), Tianjin City (March 15, 2006):

N: Is this Chief Physician Song?

Song: Yes, please speak.


N: Her doctor told her that the kidney is quite good because he [the supplier] practices … Falun Gong.

Song: Of course. We have all those who breathe and with heartbeat… Up until now, for this year, we have more than ten kidneys, more than ten such kidneys.

N: More than ten of this kind of kidneys? You mean live bodies?
Song: Yes, it is so.

(8) Tongji Hospital in Wuhan City, Wuhan City, Hubei Province (March 30, 2006):

N: How many [kidney transplants] can you do in a year?

Official: … Our department is the one that does the most in the whole Hubei province. We do a lot if the organ suppliers are ample.

N: … We hope the kidney suppliers are alive. [We’re] looking for live organ transplants from prisoners, for example, using living bodies from prisoners who practice Falun Gong. Is it possible?

Official: It’s not a problem.

(9) General Hospital of Guangzhou Military Region, Guangdong Province (April 12, 2006):

N: Is this Dr. Zhu…?

Zhu: Yes, that’s me.

N: I’m from hospital 304. … I have two relatives in hospital 304. We don’t have enough kidney supply right now. We did a lot of [kidney transplants] in 2001, 2002, and 2003…

Zhu: Right…

N: We found that kidneys from young people and Falun Gong [practitioners] are better. How about your hospital, such as kidneys from Falun Gong?

Zhu: We have very few kidneys from Falun Gong.{mospagebreak}

N: But you still have some?

Zhu: It is not hard for [blood] type B. If you come here, we can arrange it quickly, definitely before May 1.

N: There will be a batch before May 1?

Zhu: Several batches.

N: Will you have some after May 1?

Zhu: After May 1, you may need to wait until May 20 or later.


(10) First Detention Center of Qinhuangdao City, Hebei Province (May 18, 2006):

N: Is this the First Detention Center of Qinhuangdao City?

Official: What’s up?

N: We are doing kidney transplantations and we don’t have enough organs.

Official: You don’t need to call here. You just call the court.

N: Which court?

Official: It is the Intermediate People’s Court. You need to tell them about such thing.

N: In 2001, you provided live organs from young and healthy people who practiced Falun Gong…

Official: You don’t need to talk about that time. It has been so many years. Right now it is with the court. You just call them.

(11) The Second Detention Center of Qinhuangdao City, Shangdong Province (May 18, 2006):{mospagebreak}


N: … I wonder whether you still have live organ supplies from people such as those practicing Falun Gong?

Official: No, we don’t have Falun Gong [organs] right now. There are very few people-almost none. During earlier 2000s there [were] many Falun Gong [organs].


(12) The Qinhuangdao Intermediate People’s Court, Shangdong Province (May 18, 2006):


N: … Can your court provide us with some live kidneys from young and healthy people?

Official: No matter good or bad, we have none. There is no execution after the Spring festival…

N: … I mean live kidneys from young and healthy people who practice Falun Gong. You had a lot in 2001…

Official: We had before…

N: … Not just the executed prisoners-such live organs as Falun Gong…?
Official: No, what you said is in 2001. We have to face reality now…


(13) The First Criminal Bureau of the Jinzhou Intermediate People’s Court (May 23, 2006):

N: Starting from 2001, we always [got] kidneys from young and healthy people who practice Falun Gong from detention centers and courts… I wonder if you still have such organs in your court right now?

Official: That depends on your qualifications… If you have good qualifications, we may still provide some…

N: Are we supposed to get them, or will you prepare for them?"
Official: According to past experience, it is you that will come here to get them.

Official: According to past experience, it is you that will come here to get them.

N: … What are the qualifications that we must have?

Official: … Let’s say for now this year is very different from previous years. This year the situation is very tough… The policy is very strict. Several years ago we had a good relationship with Beijing, but recently it is very tense… It’s all about mutual benefits…

(14) Kunming Higher People’s Court (May 31, 2006):

N: … We contacted your court several times in 2001. Your court can provide us with those live kidney organs from those young and healthy Falun Gong practitioners…?

Official: I am not sure about that. Such things are related to national secrets. I don’t think this is something that we can talk about on the phone. If you want to know more information about these things, you’d better contact us in a formal way, okay? 


Reprint with permission from

Interview with Ex-Wife of a Chinese Surgeon Who Removed Corneas of Falun Gong Practitioners

Appendix 13 of the Report into Allegations of Organ Harvesting of Falun Gong Practitioners in China

On May 20, 2006, Mr. David Kilgour conducted an interview in the United States with the ex-wife of a Chinese surgeon who removed corneas of Falun Gong prisoners. The following transcript was abridged and edited to protect those who would otherwise be in danger due to publication of this interview.

W – Ex-wife of a Chinese surgeon who removed corneas of Falun Gong practitioners.

A – Another person who was also present at the interview and raised two questions.

Kilgour: … The closest person who saw this happen is "W." … In 2001, when did the procurement of food supplies for [Sujiatun Hospital] go up?

W: About July, in the summer.

Kilgour: July 2001. You were in the accounting department?

W: Statistics and Logistics Department.

Kilgour: Statistics and Logistics Department. What happened? The procurement of food went up first and then the surgical equipment?

W: In July 2001, there were many people working in the Statistics and Logistics Department. Some of them from procurement brought the receipts to me for signature after they made the purchase. On the receipts I noted sharp increases in the food supplies. Also, the people in charge of the logistics were delivering meals to the facilities where Falun Gong practitioners were detained. Other medical staff came to our department to report the purchase of the medical equipment. From the receipts, the medical equipment supplies also sharply increased.

Kilgour: By the way, the facilities to detain Falun Gong practitioners, was it the underground facilities?

W: In the backyard of the hospital, there were some one-story houses typically built for construction workers. After several months, the consumption of food and other supplies gradually decreased. At that time people guessed that maybe the detainees were sent to an underground facility.

Kilgour: When did the supply decrease? September? October?{mospagebreak}

W: After about 4 or 5 months.

Kilgour: End of 2001?

W: Yes.

Kilgour: How much of an increase did you estimate was from the food [receipts you saw]? How many people you estimated were there?

W: The person in charge of getting the food and in charge of sending food to Falun Gong practitioners detained told me that there were about 5,000 to 6,000 practitioners. At the time, a lot of public security bureaus and hospitals in many areas were detaining many Falun Gong practitioners. A lot of people working at the hospital, including me, were not Falun Gong practitioners. So we didn’t pay attention. If it were not for what happened in 2003, when I found my ex-husband was directly involved in it, I probably wouldn’t be interested in this at all. A lot of the staffers working in our department are family members of the officials in the government healthcare system. For some matters, we knew it in our hearts but none of us would discuss these things.

Kilgour: When they decreased the procurement, where did you think the practitioners went?

W: We thought they were released.

Kilgour: At the end of 2001, you thought they were released?

W: Yes.

Kilgour: All 5,000 had been released?

W: No, there were still Falun Gong practitioners detained in the hospital, but the number was gradually decreasing. Later, in 2003, I learned that Falun Gong practitioners had been transferred to the underground complex and other hospitals, because our hospital couldn’t hold so many people.

Kilgour: They left the houses or cabins in the backyard to go to underground?

W: Yes, I later got to know this in 2002.{mospagebreak}

Kilgour: Did you say that you were not the person to send food to them when practitioners were detained in the houses or cabins in the backyard?

W: No, I was not.

Kilgour: Did you know who supplied their meals after they left your jurisdiction?

W: I didn’t know.

Kilgour: I heard a lot of these people were killed for their organs. 2001 and 2002. Was it the correct understanding?

W: During the years of 2001-2002, I didn’t know anything about organ harvesting. I only knew the detention of these people.

Kilgour: So you didn’t discover this until you husband told you in 2003.

W: Right.

Kilgour: Did he tell you that in 2001-2002 he had already started doing these operations?

W: Yes, he started in 2002.

Kilgour: Your former husband began in 2002?

W: Yes.

Kilgour: Did you roughly know if there were [organ removal] operations since 2001?

W: The operations started in 2001. Some were done in our hospital, and some were done at other hospitals in the region. I found out in 2003.

At the beginning he also did the operations, but he did not know they were Falun Gong practitioners. He was a neurosurgeon. He removed corneas. Starting from 2002 he got to know those he operated on were Falun Gong practitioners. Because our hospital was not an organ transplant hospital-it was only in charge of removal-how these organs were transplanted, he didn’t know.{mospagebreak}

Kilgour: Your ex-husband started to take organs from Falun Gong practitioners starting from when?

W: At the end of 2001, he started to operate, but he didn’t know these live bodies were Falun Gong practitioners. He got to know that in 2002.

Kilgour: What kind of organs did he take out?

W: Corneas.

Kilgour: Just corneas?

W: Yes.

Kilgour: Were these people alive or dead?

W: Usually these Falun Gong practitioners were injected with a shot to cause heart failure. During the process these people would be pushed into operation rooms to have their organs removed. On the surface the heart stopped beating, but the brain was still functioning, because of that shot.

Kilgour: What was the injection called?

W: I don’t know the name of it but it caused heart failure. I was not a nurse or a doctor. I don’t know the names of the injections.

Kilgour: Causing heart failure, most, or all, or some cases?

W: For most people.

Kilgour: So he would take corneas of these people, then what happened to these people?

W: These people were pushed to other operation rooms for removals of heart, liver, kidneys, etc. During one operation when he collaborated with other doctors, he learned they were Falun Gong practitioners, that their organs were removed while alive, and that it was not just cornea removal-they were removing many organs.

Kilgour: They did it in different rooms, didn’t they?{mospagebreak}

W: In the later period of time, when these doctors cooperated together, they started doing the operations together. At the beginning, fearing information could leak out, different organs were removed by different doctors in different rooms. Later on, when they got money, they were no longer afraid anymore. They started to remove the organs together.

For other practitioners who were operated on in other hospitals, my ex-husband didn’t know what happened to them afterward. For the practitioners in our hospital, after their kidneys, liver, etc., and skin were removed, there were only bones and flesh, etc., left. The bodies were thrown into the boiler room at the hospital.

In the beginning, I did not fully believe this had happened. For some doctors who had operation accidents, they may form some illusions. So I checked with other doctors and other officials from the government healthcare system.

Kilgour: In 2003 or 2002?

W: 2003.

Kilgour: Your husband only did corneas?

W: Yes.

Kilgour: How many cornea operations did your ex-husband perform?

W: He said about 2,000.

Kilgour: Corneas of 2,000 people, or 2,000 corneas?

W: Corneas of around 2,000 people.

Kilgour: This is from 2001 to 2003?

W: From the end of 2001 to October 2003.

Kilgour: That was when he left?

W: It was the time that I got to know this and he stopped doing it.{mospagebreak}

Kilgour: Where did these corneas go?

W: They were usually collected by other hospitals. There was an existing system handling such business of the removal and sales of the organs to other hospitals or other areas.

Kilgour: Nearby or far away?

W: I don’t know.

Kilgour: All the hearts, livers, kidneys, and corneas go off to other hospitals?

W: Yes.

Kilgour: Did you know what prices they sold them for?

W: I don’t know at the time. However, in the year 2002, a neighbor had a liver transplant. It cost 200,000 yuan [US$25,000]. The hospital charged a little bit less for Chinese than foreigners.

Kilgour: Which year, 2001 or 2002?

W: 2002.

Kilgour: What was your husband told? How did they justify? These were perfectly healthy people…

W: In the beginning, he wasn’t told anything. He was asked to help out in other hospitals. However, every time when he did such a favor, or provided this kind of help, he got lots of money, and cash awards-several dozen times his normal salary.

Kilgour: What was the total amount of money he got out of the 2,000 cornea removals?

W: Hundreds of thousands of U.S. dollars.

Kilgour: Were they paid in U.S. dollars?

W: Paid in Chinese yuan. Equivalent to hundreds of thousands of U.S. dollars.{mospagebreak}

Kilgour: How many doctors were working on these organ removals in the hospital, and in which area? Are we talking about 100 doctors, or dozens, or 10?

W: I don’t know how many people were doing it specifically. But I know that about four or five doctors who were acquaintances of us at our hospital were doing it. And in other hospitals, doctors of general practice were also doing this.

Kilgour: Are there any records in the statistics department regarding how many people were operated upon?

W: There was no proper procedure or paperwork for this kind of operation. So there was no way to count the number of operations in the normal way.

Kilgour: After practitioners transferred underground at the end of 2001, did you know where their food supplies were from?

W: Food still came from our department; just the amount gradually decreased.

At the end of 2001 we thought they were released. In 2003, I learned that they were not released but were transferred underground or to other hospitals.

Kilgour: Was the underground facility run by the military army or by the hospital? You said food was still from the hospital.

W: We weren’t responsible for the procurement of the food for the people detained and kept underground. That is why there was so much difference in the procurement of food when people were transferred to the underground complex. But the food of some of the detainees was provided by the hospital, and for others it was not. The decrease in food was not proportional to the decrease in the number of detainees.

Kilgour: What did your husband tell you about the underground facility? 5,000 people killed, or more than 5,000?

W: He didn’t know how many people were detained underground. He only heard from some others that people were detained underground. If three operations were done every day, after several years of operation, for the 5,000-6,000 people, not many people would be left. This whole scheme and the trading of organs were organized by the government healthcare system. The doctors’ responsibility was simply to do what they were told to do.{mospagebreak}

Kilgour: He didn’t go down to the underground facility himself?

W: He didn’t.

Kilgour: Rudimentary operation in the underground facility?

W: He had never been there.

Kilgour: All of those people, were they dead when they were operated on? Or their hearts stopped? Did he know that they were killed afterwards? They weren’t yet dead.

W: At the beginning, he didn’t know these were Falun Gong practitioners. As time went by, he knew they were Falun Gong practitioners. When they did more of these removals of organs and became bold, these doctors started to do the removals together; this doctor extracted the cornea, another doctor removed the kidney, the third doctor took out the liver. At that time, this patient, or this Falun Gong practitioner, he knew what was the next step to treat the body. (Translator added the translation of the two missed sentences: Yes, the heart stopped beating, but they were still living.) If the victim’s skin was not peeled off and only internal organs were removed, the openings of the bodies would be sealed and an agent would sign the paperwork. The bodies would be sent to the crematorium near the Sujiatun area.

Kilgour: Only if the skin was removed, they would be sent to the boiler room?

W: Yes.

Kilgour: Usually what was the "supposed" cause of death given?

W: Usually no specific reason when the bodies were sent to the crematorium. Usually the reasons were "The heart stopped beating," "heart failure." When these people were rounded up and detained, nobody knew their names or where they were from. So when they were sent to the crematorium, nobody could claim their bodies.

Kilgour: Who administered the drug to cause the heart to stop beating?

W: Nurse.

Kilgour: Nurse working for the hospital? {mospagebreak}

W: Nurses brought over by these doctors. Doctors, including my ex-husband, came to this hospital in 1999 or 2000. He brought his nurse over. When organ harvesting first started, nurses were assigned to the doctors. Wherever the doctors go, their nurses go with them as far as the organ removal operations were concerned. These nurses were not like personal secretaries.

In the year 2003, government health authorities sent many doctors involved in organ removal operations to an area sealed by the government because of SARS. These doctors believed they were sent there to let them live or die over there. I mean the government already wanted to put to death secretively the first group involved in organ removal. So they sent them to a SARS-affected area in Beijing.

From that point on my husband realized that there was danger in doing this and that at any time, he could be killed and done away with as an accomplice. Later, when he wanted to quit, someone did try to kill him.

Kilgour: In the hospital?

W: Outside the hospital.

Kilgour: Can you give us more details?

W: At the end of 2003, after I learned about the issue, he came back from Beijing. He could no longer live a normal life. After I knew about it, he listened to my advice and decided to quit doing it. He submitted his resignation letter. It was around the new year of 2004.

In February 2004, after his resignation was granted, the last month of working in the hospital, he was tying up loose ends at his work. During that time we received phone threats at home. Someone said to him, "You watch out for your life."

One day we got off work in the afternoon. There were two people walking toward us trying to assassinate him. If you were a woman, I would show you my scar, because I pushed him aside and took the stab. Men do not have very good sixth senses, so he kept walking. When I realized the two people were going to pull the knife to stab him, I pushed him aside and took the stab for him. Many people came over and I was sent to the hospital. These two men ran away.

Kilgour: Which side? (Location of the scar)

W: Right side.{mospagebreak}

Kilgour: Do you know who these two people were?

W: I didn’t know in the beginning. Later I knew.

Kilgour: Who were they?

W: I learned that they were thugs hired by the government health authorities.

Kilgour: How did you find that out about these two?

W: Because my family was part of the government healthcare system. My mother used to be a doctor.

After these things happened, our friends suggested we get a divorce so it would separate our children and me from my husband. After all, our children and I didn’t participate in any of these things. So we divorced at the end of 2003, very close to the new year of 2004.

Kilgour: How many did you think were still alive?

W: Initially I estimated there were about 2,000 people left at the time I left China in 2004. But I cannot give a figure anymore, because China is still arresting Falun Gong practitioners and there have been people coming in and going out. So I cannot give a figure now anymore.

Kilgour: How did you come to this number 2,000 in 2004?

W: According to how many my ex-husband did and how many other doctors did. And how many sent to other hospitals. Good doctors are well connected within the healthcare system. Many of them used to be classmates in medical schools. The number was estimated by the few doctors involved. When we were together in private, they discussed how many people in total. At that time, these doctors did not want to continue. They wanted to go to other countries or transfer to other fields. So the total number of deaths was calculated and derived by these doctors involved.

Kilgour: What is their estimate of how many people were killed?

W: They estimated 3,000-4,000 people.

Kilgour: This is the estimate by all of the doctors?{mospagebreak}

W: No. By three doctors we were familiar with.

Kilgour: Do you have anything else you want to say?

W: Chinese or non-Chinese, they think it is impossible Sujiatun detained so many Falun Gong practitioners. They focused on just this Sujiatun hospital. Because most people do not know there are underground facilities. I want to say, even if things were over for Sujiatun, in other hospitals this issue continues. Because I worked in Sujiatun, I know about Sujiatun. Other hospitals and detention centers¡­ inspecting and putting control on these facilities will help reduce the deaths.

For Chinese people, one person comes out, there are still family members in China. They still dare not come out to speak the truth. They are afraid it could put their family members in danger. It doesn’t mean that they don’t know about it.

A: Does your mother know about what you are doing?

W: Yes.

A: Does she still work in the government healthcare system?

W: No. She retired a long time ago. She is almost 70 years old.

Reprint with permission from

Canadian Report Confirms Organ Seizure from Live Falun Gong Practitioners in China

On July 6, 2006, in Ottawa, Canada, international human rights lawyer David Matas and former Member of Parliament David Kilgour released an independent report following their two-month inquiry into allegations that vital organs are being harvested from live Falun Gong practitioners across China.

Mr. Matas has been the attorney for many cases heard before the Canadian Supreme Court, and a member of the Canadian delegation to the United Nations General Assembly. He has played a leading role in key human rights organizations, including Amnesty International, the Canadian Council for Refugees, and the International Commission of Jurists, and has received many outstanding achievement awards. The list of books and manuscripts he has written is no less impressive. Mr. Kilgour has served in the Canadian House of Commons, and was Secretary of State for Latin America and Africa from 1997 to 2002, and for Asia-Pacific from 2002 to 2003.

The report concludes:

"­the government of China and its agencies in numerous parts of the country, in particular hospitals but also detention centers and ‘people’s courts,’ since 1999, have put to death a large but unknown number of Falun Gong prisoners of conscience. Their vital organs, including hearts, kidneys, livers and corneas, were virtually simultaneously seized for sale at high prices, sometimes to foreigners, who normally face long waits for voluntary donations of such organs in their home countries."

During the two-month investigation, witnesses were interviewed in Canada, Australia, France and the United States.

Among the most significant incriminating evidence, however, were certified translations of recorded conversations in Mandarin with doctors and other officials at hospitals and detention centers located in various parts of China.

Another piece of significant evidence is the transcript of an interview during which the former wife of a Chinese surgeon recounted the admission of her husband who operated on and removed corneas from over 2,000 Falun Gong practitioners. One doctor gave the Falun Gong practitioners an injection that caused heart failure, then their corneas were removed, and then they were passed on to different doctors who removed other organs.

We have reprinted these transcripts in the following pages with permission of the authors of the report.

Other critical evidence included in the report:{mospagebreak}

  • Translations of recent and continuing postings on numbers of websites of transplantation centers within China, which also played an important role in convincing the inquiry that the only fair conclusion was that the organ harvesting is widespread and ongoing.
  • Testimony from Ms. Yuzhi Wang, now living in the Vancouver area, who stated she spent most of 2000 and 2001 in labor camps because of being a Falun Gong practitioner. She suffered internal damage from beatings, and is convinced that these injuries were the only reason she did not end up an unwilling "donor" and was able to leave China.
  • Testimony from Xiaohua Wang, now living in Montreal, who reported that in 2002, because he practiced Falun Gong, he spent two years in a forced-labor camp working 16 hours a day with chemicals. During his incarceration, he and every other Falun Gong practitioner received a comprehensive forced medical exam, including electrocardiograms, whole-body X-rays, liver and kidney checks, and blood tests—none of which were administered to non-practitioners in the camp. Later, he was able to emigrate to Canada.
  • Testimony from Ms. Na Gan, now living in Toronto, who stated that the police beat her when she unfurled a Falun Gong "Truthfulness-Compassion-Tolerance" banner in Tiananmen Square. As a result, her Chinese Communist Party membership and salary as a customs employee at the Beijing airport were revoked and she was sent to the local women’s labor camp. In mid-2001, she reported that only the Falun Gong members of the group had their blood, urine, and eyes examined at a nearby hospital. She too managed to leave China for Canada.

The following are some key recommendations made in the report:

1. As organ harvesting is a crime against humanity, the authorities in China should conduct a criminal investigation for possible prosecution.

2. Organizations—intergovernmental, governmental and voluntary—should take the allegations seriously and make their own determinations as to whether or not they are true.

3. As the United Nations Protocol to prevent trafficking in persons bans the removal of organs, the U.N. should investigate whether China is in violation.

4. Foreign governments should ban the entry of Chinese doctors seeking training in organ transplantation. Any doctor there, known to be engaged in such work, should be permanently barred from visiting foreign countries.{mospagebreak}

5. All countries should tighten their laws against organ trafficking and doctors should, for example, be required to report to their respective authorities any evidence that a patient has received an organ from a trafficked person abroad.

6. Governments should deny or revoke the passports of nationals who are traveling to China for organ transplants.

7. No governments should participate in any China-sponsored meeting or research on organ transplantation. No private company should provide goods or services to any Chinese transplant program.

Right after the release of the report on July 6, 2006, the Chinese communist government—through the website of the Chinese Embassy in Canada—issued a statement denying the findings of the report.

A full copy of the report can be obtained at:

Xiao Tian is a correspondent for Chinascope.

Lawyer Vows to Bring the “Shanghai Cluster” to Light Despite Serving Time

Mr. Zheng Enchong was released on June 5, 2006, after having served three years in prison. Before his arrest, Mr. Zheng, a lawyer in Shanghai, had defended the economic and social rights of people who were displaced by Shanghai redevelopment projects. While working on those civil cases, he uncovered huge corruption scandals involving the Shanghai authorities and the most senior Chinese Communist Party (CCP) leaders in Shanghai. He was arrested and put into prison in an apparent effort by regime authorities to silence him.

"I am innocent," he told the Associated Press in a telephone interview the day after his release. "I am also going to report the corruption, irregularities in land-use approval, and violations of human rights in Shanghai redevelopment projects to the central government."

Mr. Zheng’s arrest and his recent release highlight not only the communist government’s corruption but also the struggle for power among the Party factions.

Three years ago, Attorney Zheng assisted displaced families in more than 500 cases, all of them relating to Shanghai’s urban redevelopment projects. On May 28, 2003, Mr. Zheng represented six displaced families in a lawsuit against the alleged corrupt collusion between Shanghai regime government officials and a wealthy property developer, Mr. Zhou Zhengyi. The case alleged that Mr. Zhou was able to obtain a 70-year land lease from the Jingan District Property Development Bureau only because the district government had given instructions for the Bureau to agree to the deal. The Shanghai authorities improperly allowed Zhou’s company to redevelop the 43,429-square-meter (52,000 square yd.) property without paying a land lease fee valued at about 300 million yuan (US$36.3 million). Under the conditions of that illegal land lease, Mr. Zhou was able to force 2,159 residents and original property owners on West Beijing Road to relocate to a fringe district.

After filing the civil lawsuit, Mr. Zheng wrote to CCP leader Hu Jintao and Premier Wen Jiabao, bringing the corruption case to light. In his letter, Mr. Zheng revealed the involvement of the so-called "Shanghai Cluster," a group of officials with a close relationship to the previous CCP leader, Jiang Zemin. He particularly criticized former Shanghai Mayor Huang Ju, who is now a politburo standing member.

At that time, property tycoon Zhou Zhengyi was also being sought after in the Hong Kong courts for his business dealings involving massive illegal loans from the Bank of China. The litigation dealing with Zhou’s illegal loans was reportedly the biggest case of financial fraud since the founding of the P.R.C. Facing mounting public pressure, the Shanghai authorities sentenced Zhou to three years in prison for falsely reporting his company’s holdings as well as manipulating stock prices. As for the civil case filed by the displaced families against Zhou, it hit a political wall and cost them their representing attorney.{mospagebreak}

Shanghai authorities arrested the plaintiffs’ lawyer, Zheng Enchong, and charged him with "illegally providing state secrets to entities outside of China." On October 28, 2003, the authorities sentenced him to three years in prison and deprived him of his political rights for one year.

By putting both Zhou (the defendant) and Zheng (the plaintiffs’ lawyer) in prison, the Shanghai authorities put a lid on the case and minimized the political damage to the Shanghai Cluster. Three years later, both Zhou and Zheng have been released after serving their terms. They may add new fuel to the Shanghai corruption scandal. Seeing that Huang Ju, the leading figure in the Shanghai Cluster, is also one of the nine standing members in the most powerful CCP politburo, repercussions from the Shanghai corruption scandal could be far reaching in China.

Mr. Zheng is well aware of who directed his arrest. "My case is related to Huang Ju," he told reporters recently. Mr. Zheng is also confident in his pursuit of the criminals: "I have direct evidence," he said. In his 500-plus civil cases since 1994, Mr. Zheng has documented more than 200 non-natural deaths and more than 2,000 physical injuries that occurred to Shanghai residents who fell victim to forced evictions.

The corruption case against Zhou Zhengyi involved over 300 million yuan (US$36.3 million) in an unpaid land lease, but that is only a small portion of all the land deals that the Shanghai government has engaged in. Their overall stake in the Shanghai corruption scandal is likely to be much larger.

For his legal work in representing the displaced Shanghai families, Mr. Zheng was seen as a threat to the Shanghai Cluster. He lost his freedom for three years and is currently under the watchful eye of State Security. Yet Mr. Zheng is determined to stand up for his clients and for his own rights and dignity.

After his release from prison, Mr. Zheng wrote letters to the United Nations, to the German government that had granted him a Human Rights Award, and to Chinese leader Hu Jiantao to expose the crimes of the Shanghai Cluster members. While the Shanghai Police have warned him several times not to accept interviews from foreign media, he publicly states, "I am organizing my documents, and I will continue to lodge accusations against them until I see justice is being done."

To achieve justice for all the displaced Shanghai families, Mr. Zheng declares, "It is time to bring to light the Shanghai Cluster."