We are pleased to inform you that the Sewing Machines you ordered on August 22 last year have been shipped from Shanghai by S.S. Jinan, due to arrive at the destination in late September.
   Please find enclosed the copies of invoice, packing lists and bill of lading. Please send the payment by T.T. to our account at HSBC. Original documents should be sent immediately by speed post after receipt of the payment.
   We appreciate the continued confidence you have placed in us and we are looking forward to serving you in the future.

The Chinese and Americans have always had an intense interest in and eared deeply about each other. The Chinese admire the pioneering and enterprising spirit of the Americans and their proud achievements in national development. As China develops rapidly and steady headway is made in China-US cooperation, more and more Americans are following with great interest China's progress and development. Understanding leads to trust. Today, I would like to speak to you about China's development strategy and its future against the backdrop of the evolution of the Chinese civilization and China's current development endeavor. I hope this will help you gain a better understanding of China.
   In a history that spans more than five millennia, the Chinese nation has contributed significantly to the progress of human civilization. But its course of national development has been an arduous one. In particular, in the 160 years and more since the Opium War in 1840, the Chinese people have fought courageously and unyieldingly to rid themselves of poverty and backwardness and to realize national rejuvenation, thus profoundly changing the destiny of the Chinese nation. Ninety-five years ago, the Chinese people launched the Revolution of 1911 that overthrew the feudal autocracy which had ruled China for several thousand years and opened the door to China's progress. Fifty-seven years ago, the Chinese people succeeded in winning liberation after protracted and hard struggle and founded New China in which people became their own masters. Twenty-eight years ago, the Chinese people embarked upon the historic drive of reform, opening-up and modernization and have made phenomenal progress through unremitting efforts. Between 1978 and 2005, China's GDP grew from US $147.3 billion to US $2.2257 trillion. Its import and export volume went up from US $20.6 billion to US $1.4221 trillion, and its foreign exchange reserve soared from US $167 million to US $818.9 billion. During this period, the number of its poor rural population dropped from 250 million to 23 million. The above review of the profound changes in these 160 years shows one thing, namely, by carrying out persistent and hard struggle, the Chinese people have both changed their own destiny and advanced the cause of human progress.
   On the other hand, I need to point out that, despite the success in its development, China remains the world's largest developing country with per capita GDP ranking behind the 100th place. The Chinese people are yet to live a well-off life, and China still faces daunting challenges in its development endeavor. Therefore, it requires sustained and unremitting efforts to transform the country and make life better for its people. In the next fifteen years, we will strive to make new progress in building a moderately prosperous society in an all-round way that will benefit China's one billion and more population. We aim to raise China's GDP to US $4 trillion by 2020, averaging US $3,000 per person. By then, China's economy will be better developed, and its democracy will be further enhanced. More progress will be made in science and education. Its culture will be further enriched, the society will become more harmonious and the people will lead a better life.
   To realize these goals, China has adopted a new concept of development in line with its national conditions and the requirement of the times. That is, to pursue a scientific outlook on development that makes economic and social development people-oriented, comprehensive, balanced and sustainable. We will work to strike a proper balance between urban and rural development, development among regions, economic and social development, development of man and nature, and domestic development and opening wider to the outside world. Greater emphasis will be put on addressing issues affecting people's livelihood, overcoming imbalances in development, and resolving key problems that have occurred in the course of development. We will pursue a new path to industrialization featuring high technology, good economic returns, low resource-consumption, low environment pollution and full use of human resources. We will bring about coordinated economic, political, cultural and social development. And we will endeavor to ensure sustainable development by boosting production, improving people's life and protecting the environment.
   This concept of scientific development is based on the experience China has gained in its modernization drive and put forth in response to the trends of the times. It is also rooted in the cultural heritages of the Chinese nation.
   The Chinese civilization is one that has continued uninterrupted for more than 5,000 years. The distinct cultural tradition of the Chinese nation that developed in the long course of history has exerted a strong influence on contemporary China, just as it did on ancient China. Putting people first, keeping pace with the times, maintaining social harmony and pursuing peaceful development: these values that are being pursued in China today are derived from its tradition. But they also give expression to the progress of the times.
   The Chinese civilization has always given prominence to the people and respect for people's dignity and value. Centuries ago, the Chinese already pointed out that people are the foundation of a country; when the foundation is stable, the country is in peace. 'Nothing is more valuable in the universe than human beings. The ancient Chinese emphasized the value of serving the people, enriching them, nourishing them and benefiting them. We are pursuing today a people-oriented approach toward development because we believe that development must be for the people and by the people and its benefit should be shared among the people. We care about people's value, rights and interests and freedom, the quality of their life, and their development potential and happiness index because our goal is to realize the all-round development of the people. Ensuring the right to survival and development remains China's top priority. We will vigorously promote social and economic development, protect people's freedom, democracy and human fights according to law, achieve social fairness and justice and enable the 1.3 billion Chinese people to live a happy life.

Although there is the risk that stock markets may not have bottomed, the current low stock prices offer an opportunity for retail investors to gradually invest in selected blue chip stocks that may have previously been out of reach.
   In the event that you decide to invest, here is a list of pitfalls you should avoid:
   Inadequate Asset Allocation—Asset allocation is the process of dividing your pool of money among different asset classes, e.g. between income investments such as fixed deposits and bond funds, and growth investments which will include riskier investments such as stocks or physical property.
   The mistake most investors make is to put most of their money in one form of investment, say stocks or properties. As a result, when the property and stock markets decline, these investors are in an extremely vulnerable position. It is always prudent to keep aside at least enough cash to provide a cushion of about 6 months' monthly income as a safeguard against sharp declines in the stock and property markets or in the event that you need cash urgently.
   Lack of Diversification—Having decided that you want to put aside some money in an investment portfolio comprising say equities, you should always aim to diversify the stocks within your portfolio so as to minimize your risk exposure to any one stock. Not only should you diversify between stocks, you should also diversify between different industry sectors, and if resources permit, within different geographical regions.
   If you are a first-time investor, you may not have enough funds at your disposal. The purchase of one stock alone could utilize the bulk of your investible savings. One way to diversify is to invest in unit trusts which usually cost about $1 per unit when launched. These unit trusts are investment portfolios managed by a professional fund manager. As the fund manager pools the funds from many investors, he can invest in a diversified portfolio that offers lower risk.
   Unit trusts may also enable investors to diversify across regions, e.g. a European fund paired with an Asia Pacific Fund, or between assets, e.g. investing under an umbrella fund in an equity fund, a bond fund and a money market fund.
   Market timing—Some investors try to "time" the market, i.e. waiting for the market peak to sell and bottom to buy. Such strategies are difficult to implement even for the professional fund managers. You may also incur higher transaction costs as a result of such a strategy.
   Investments should be made with a long-term view. The ups and downs in the market can be made to work in your favour. If you think a stock is good, you can pick it up in small amounts so that you average out the cost of the investment over time. For example, buying 1 lot of stock each month over a 4-month period at say $0.70, $0.80 and $0.90 and $1.00 would result in an average cost of $0.85.
   Letting Go—If you have made a bad investment decision, do consider selling the stock even if it results in a loss. The mistake some investors make is in trying to average down their losses by buying the stock again at a lower price without analyzing the cause of the decline. The price of the stock may have fallen due to the deterioration of the company's financial position, poor business prospects, or potential law suits. If the stock is not good, you are essentially throwing good money after bad.
   Herd Instinct—Some investors buy shares when they see hectic buying in the market by other investors, i.e. chasing the price of the stock up. Huge price fluctuations can occur and fade very quickly leaving naive investors stranded and holding on to stocks purchased at high prices.
   Inadequate Research—Before you invest in anything, you should familiarize yourself with the instruments and their risks. Such information can be obtained from newspapers, financial magazines or even on the Internet.
   For example, in the case of stocks you may wish to ask yourself the following questions: Does the company have a good management? What type of business is the company in? Does the business have growth potential? Does the company have a good profit track record? What are its prospects? How volatile is the company's stock price? If the price of the stock is volatile, will you be able to tolerate the risk if the price of the stock rises or declines sharply?

Achievements were made in reforming the government and intensifying its self-improvement over the past year, but they still fall considerably short of what the people expect. The functions of government have not yet been completely transformed. Administrative efficiency needs to rise. Formalism and bureaucratism are still pronounced. Corruption remains a serious problem in some localities, departments and fields. Tremendous effort is needed to solve all these problems. We need to focus on the overall objectives of sustaining economic growth, ensuring people's wellbeing and maintaining stability, and intensify the work of government self-improvement.
   We will continue to run the government in accordance with the law. We will standardize government administration, ensure that our administration is based on law and reason, executed through proper procedures, highly efficient, convenient for the public, honest and trustworthy, and that authority and responsibility are united. We will thoroughly implement the Administrative Permit Law, continue to carry out reform of the administrative examination and approval system, reduce the number of items it covers, especially investment and project examination and approval, and ensure that enterprises make their own investment decisions. We will promote fair competition, break regional blockades and industry monopolies, and organize and mobilize all social resources to promote economic growth. By ensuring that all government departments fully and properly execute their functions, we will create a favorable environment for development, and increase enterprises' confidence in investment, individuals' confidence in consumption and people's confidence in development.
   We will make decisions scientifically and democratically. In all decisions we make, the procedures need to be lawful and standardized, the process democratic and open, and the results scientific and equitable. In formulating and implementing major government policies and decisions, we need to conduct thorough research and studies, heed people's concerns, solicit their opinions, pool their wisdom, act in accordance with objective laws, and make our policies and decisions more foresighted, scientific and effective. We need to make government affairs more open and transparent. We will ensure the people's right to stay informed about, to participate in, to express views on, and to oversee government affairs, and keep them informed as to what the government is thinking and doing so that we can win their thorough understanding, wide support and active participation. The government is investing a large sum of money and launching numerous new projects this year, and we will ensure they receive proper oversight. We will prohibit image projects that waste both human and financial resources and vanity projects that are divorced from reality, and will never allow any organization or individual to exploit the surge in public spending for private gain. Governments at all levels must conscientiously subject themselves to the oversight by the people's congresses and the democratic oversight by the CPPCC committees at their corresponding levels. We will tighten professional oversight by supervision and auditing departments, and attach great importance to oversight by the public and the news media. We will strive to make sure that oversight takes place wherever administrative power is exercised and audit accompanies whenever government funds are used.
   We will earnestly improve our conduct. Governments at all levels need to resolutely implement the policy decisions and arrangements of the central leadership, stay firmly grounded in reality, and work creatively to ensure all policies are carried out fully and effectively. Leading cadres need to conduct thorough research and studies to promptly discover and resolve problems, maintain close contact with the people, show concern for their sufferings, listen to their opinions, and help them solve their problems. Government employees need to always maintain high morale, embody a vigorous spirit and work with the people to meet challenges head on, break new ground through hard work and tide over bad times together.
   We will strengthen our efforts to promote clean government and combat corruption. We will focus on standardizing institutions and limiting the exercise of power, and prevent and punish corruption at its source in areas and links prone to corruption. We will resolutely investigate and prosecute corruption cases and punish corruptionists in accordance with the law. We must discharge our duties with great diligence and, through our actions and achievements, to build a government that is for the people and is pragmatic, clean and efficient to satisfy people's needs and win their trust.

(1) Most Americans I have met are reasonable and quite friendly to China, but still there are some who have colored opinions. Ding Xiaowen recorded a section of his dialogue with an old woman professing herself to have worked as the American ambassador, vividly portraying the arrogance and complacency of the minority among the American politicians.
   (2)As a developed country, America possesses many advanced things. It is a good thing that Chinese things can win Americans' appreciation, and Chinese are justified in being proud of our long history and new achievements got from the reform and opening up. However, some people always crave excessively in using viewpoints of foreigners especially Americans' to elevate themselves, where I can see no need indeed.
   (3)No matter how nice the external views seem to be, they need proving when they are cited. The statements, such as every American soldier joining in the Gulf War held a copy of "The Art of War" and Lei Feng's picture is hung in West point, were once talked by many people delightedly. Ding Xiaowen have checked and found out that this is not the truth. Have a look at the chapter tided "Should it be that important to take what the Americans say?", and it might give you some enlightenment.
   (4)Over a half century ago, our ancestors gathered and set up the United Nations. In the past 58 years we have witnessed its achievements in maintaining the world and regional peace, and promoting the progress of human society. The spirits expressed by "The Charter of the United Nations", such as "to practice tolerance and live together in peace with one another as good neighbours", and "to promote social progress and better standards of life in larger freedom", have received international recognition.
   (5)China believes that under the current circumstances we should continue to adhere to the purposes and principles of the Charter of the United Nations, with an ultimate realization of the democracy and legislation in international relations, and also of the all-win and co-existence among countries all over the world.
   The United Nations is a microcosm of our world, and a powerful United Nations is what the world hopes. There-fore, in order to initiate a glorious future for mankind, we should above all turn it into a stage for cooperation, not an arena for criticizing.
   (6)There is no such country which merely consists of sages; consequently, no country has the right to cast the biased gravel to others.
   Therefore, we should lay aside all the arrogance, estrangement and narrow-mindedness, making harmony, understanding and tolerance become the permanent theme in this hall, and taking the spirit of the ocean to reject no rivers as the motto of each member states.
   (7)When we are negotiating with westerners, we should first scrutinize the terms, take the ground, then debate with them. If our arguments are reasonable, we might as well state outright our interests and leave some space for further discussion. If there are chances to improve the situation, we have every reason to believe everything could be solved. On the contrary, if we merely make compromises with them, the result might sway from the way we expected. Foreigners always bully the weak and give in to the tough. They prefer the frank to the rounded way. If we are really powerful, they will admire us from the bottom of the heart. Then we just need to do what we have to and they will be completely convinced. Do you know the reason?