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1. Project Summary and Relationship to China's Agenda 21

The aim of this project is to protect the Changbai Mountains' agroforestry system according to its own characteristics and according to the methods recommended by the International Commission of Research on Agroforestry Systems (ICRAS). Specifically, the project will grow and restore forests based on the life cycle of the forest. The protection and restoration will develop the economy, solve the problem of labour oversupply and improve the living standards of residents.

This project is based on programme areas 14B and 8A of China's Agenda 21, and is related to program area 15A.

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2. Background

The Changbai Mountains is the most important forest ecosystem of China. It is located at the national boundary of China and North Korea and is part of the Green Eurasia Corridor. The changes in its ecological environment are closely related to the entire ecosystem in north-eastern China. In addition, it has a direct impact on the economic development of the Songliao Plain and its surrounding area. The Changbai Mountains has 99,630 hectares primeval forests and 800 kinds of trees. It is one of the worldís best preserved forests in this latitude and it bears the richest natural resources. It maintains one of the most comprehensive ecosystems and gene storage. The well-known the Changbai Mountains Natural Protection Zone was listed on the World Nature and Culture Heritage by UNESCO and was listed as an international natural protection zone in November 1980 in MAB.

Forests play an important role in the ecosystem of the Changbai Mountains. There are totally 1,295,000 hectares forest covering 62.4% of the entire area in this region. In the hinterland, the forest coverage can reach up to 76%. The Changbai Mountains area has rich water resources since it is the source of the Songhua River, the Yalu River and the Tumen River. The extensive forest coverage in the Changbai Mountains play an important role in the adjustment of climate, precipitation and water resources in Songliao Plain, the famous food reserve in northern China and north-east Asia. The Changbai Mountains is regarded as a comprehensive natural resources storage area because there are 2,424 kinds of plants and 1,500 kinds of animals. More than 600 of these animals can bring economic benefit to the region. In addition there are more than 900 kinds of medical plants and more than 200 kinds of fragrant plants. The region holds the largest natural herbs ginseng and spice storage in north-east Asia.

Yet since 1949, the forest coverage has been reduced from 82% to 62.4% because of rising development in the area. The storage quantity of primeval forest was reduced from 600 million m3 in 1949 to 70 million m3 in 1985. All available forest resources are nearly depleted. The balance of the ecosystem in the Changbai Mountains is endangered. Many rare wild animal and plant species have been gradually diminished and some of them are nearly extinct. At present, the human population in the forest is about 500,000. Seventy percent of the population is unemployed. The 19 forest bureaux face an economic and employment crisis. As a result, the ecosystem is continuously being damaged by the human population. If the current situation persists, the entire ecosystem will collapse and both the Songliao Plain and Korean peninsula will lose this natural ecological defence system and important gene reserve. Therefore, restoring the forest ecosystem through the Agroforestry System project, developing the forest economy, and overcoming the economic and unemployment crises is urgent and necessary. The Agroforestry System Project aims to restore the primeval forest by analogising the ecosystem in the area to combine agriculture and forestry, developing agricultural industry, reducing unemployment and by eliminating poverty. Steps have already been taken. The local government has put the environmental protection of the Changbai Mountains on its priority list and has incorporated it into their medium and long term development plan. A series of regulations and policies were stipulated with regard to the protection and restoration of the natural resources. As a result, the ecosystem of the Changbai Mountains has started to restore.

Tsinghua University and Baishan city has just completed the Research on the Changbai Mountainís Ecological Protection and its Sustainable Development Strategy under the National Eighth Five-Year Plan (1990-1995). The governments of the Baishan Municipality and Yanbian State have made significant efforts towards the restoration of the forest, ecosystem protection, and overcoming the resource and economic crises. The government has formulated strategies and financed the work. The Forest Restoration of the Changbai Mountains and the Exemplary Project on the Agroforestry System in the city of Baishan Project is a joint effort of Tsinghua University, China Agriculture University, the Chinese Academy of Forestry, the Chinese Academy of Sciences and the Baishan Municipal Government. These institutions have advanced and practical technology. Some of these new technology and new products have been tested already.

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3. Objectives

3.1 Long-term Objective

The restoration of the Changbai Mountains' forest ecosystem system and the protection of biodiversity in the region. The project also aims to transform the development of the Changbai Mountains' ecosystem to a sustainable one. This mean that the responsible agencies have to maintain the forest resources so that they can be used continually. In addition, they will develop the forest economy, raise the people's living standard, and solve the resource and economic crises completely .

3.2 Immediate Objectives

* To restore forest resources in the Changbai Mountains. The work involves planting 260,000 hectares of forest by the end of century and increasing forest coverage to 80% in the demonstration area;

* To establish a mechanism to industrialise agriculture. The aim is to develop an economy which integrates agriculture, forestry, ranching and manufacturing. It also involves reducing timber logging and solving the economic and resource crises;

* To solve the unemployment problem and to double the per capita income in the demonstration area.

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4. Outputs and Activities

4.1 Establishment of the office for the pilot project on agroforestry systems.

* To establish the pilot project office responsible for planning, implementation and promoting experience learned from the project;

* To establish the agroforestry systems experimental station in the Dayangcha Forest Centre, and to seek the cooperation of the International Commission of Research on Agroforestry Systems;

* To import advanced agroforest technology and processing technology for agroforestry products from countries in the same latitude. In addition, the project seeks to introduce suitable plants for the area and to establish a technology promotion system;

* To train agroforestry system project personnel. Monitoring Indicators: establish the office of exemplary project on agroforestry systems and the experimental station of agroforestry systems, train 500 persons.

Implementing Agencies: Baishan Municipal Government, Yanbian State Administration, Tsinghua University, China Agricultural University, Chinese Academy of Forest Sciences and the Institute of Applied Ecology .

Time Schedule: January 1997 - December 1997

4.2 Protection and restoration of the forest ecosystem of the Changbai Mountains.

* To restore the forest resources of the Changbai Mountains. This item involves planting 200,000 hectares of forest based on the existing natural and planted secondary forest. In addition, the project plans to plant 60,000 hectares of forest based on wasteland and old ginseng farmland;

* To extend the no-hunting zone from the Natural Protection Zone to the area 500 meters above sea level. This item also aims to protect rare birds breeding there in the summer and to protect Panthera tigris altaica, cervus elaphus and cervus nippon hortulorum which live there in the winter;

* To use the model of planting ginseng in order to expand the forest. This item involves transforming 1,400 hectares of former ginseng-land and 60 hectares of American ginseng-land into forest through alternate planting between forest and ginseng-land;

* To expand the model of the forest community. This requires the development of a comprehensive use of solar energy, sludge gas energy and small sized hydropower. The usage of new energy would save 140,000 m3 of timber per year. Monitoring Indicators: planting 260,000 ha. of forest, 1,460 ha. of ginseng-forest, saving 140,000 m3 of timber.

Implementing Agencies: Ministry of Forestry, Baishan Municipal Government and Yanbian State Administration, Chinese Academy of Sciences, Tsinghua University.

Time Schedule: January 1997 - December 2001

4.3 Conservation of biodiversity and development of the breeding industry.

* To establish a breeding Centre for endangered species in the area;

* To protect the rare plant species. This item also involves planting rare plants including the establishment of the Taxus cuspidate sieb. et Zucc base, Rhodiola Sachalinensis A. Bor base, Huyan Wannianqing (Chinese herbs) base and the modelled wild ginseng protection base;

* To protect and breed animals through fenced cattle and deer breeding;

* To plant 100,000 hectares of rapid abundant forest and 30,000 hectares of forage forest.

Monitoring Indicators: Analogising wild ginseng protection base 1,200 hectares, increasing 600 hectares Huyan Wannianqing base, increasing the Taxus cuspidate Sieb. et Zucc (a kind of medicine) base including Taxus cuspidate Sieb. et Zucc (a kind of medicine) 5,000,000. Output of the Taxus cuspidate Sieb. et Zucc branch-left medicine 100,000 kilograms every year, establishing 270 hectares Rhodiola Sachalinensis A Bor manual cultivation base, breed 150,000 deer, and 100,000 cattle, Cultivating rapid and abundant forest growth 100,000 hectares, forage forest 30,000 hectares.

Implementing Agencies: Baishan Municipal Administration, Yanbian State Administration, China Agricultural University.

Time Schedule: January 1997 - December 1998

4.4 Development of the processing industry for agroforest products and creation of more jobs

* To manufacture anti-cancer drugs such as Taxus cuspidate Sieb. et Zucc, and the Capsule for health using Huyan Wannianqing;

* To produce anti-oxidant from the Rhodiola Sachalinen sis A. Bor;

* To produce the second generation drug for arterial of the disease of the heart and brain using ginseng and American ginseng;

* To build 20 forage processing plants, which produce 300,000 tons of forage for the herbivorous animals (such as bears, cattle, ostriches). The main composition of the forage is 60% grass powder, 20% husk, 8% cereal, corn shaft, bone powder and calcium powder.

Monitoring Indicators: Drawing Taxus cuspidate Sieb. et Zucc 10,000 grams every year, Its output value is US$ 50 million. The output value of the Capsule for Health reaches US$ 16 million, the output value of Rhodiola Sachalinensis A. Bor medicine reaches US$ 250 million, the output value of Ginseng Extractor reaches US$ 25 million, Creating forage of 300,000 tons.

Implementing Agencies: Jilin Provincial Planning Commission, Jilin Provincial Science and Technology Commission, Baishan Municipal Administration and Yanbian State Administraton.

Time Schedule: January 1997 - December 1999

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5. Inputs

5.1 Chinese Inputs Chinese inputs will be used for building the experiment station, planting, technology service, animal species, personal training, purchasing machinery and for a contingency.

5.2 International Inputs

International inputs will be used for foreign experts, purchasing instruments for the experiment station, etc.. International loans will be used for purchasing industry machines, personal training, founding of the animal species station, introduction technology and technology development. We hope that foreign traders will directly invest US$ 3 million. We will create a joint-stock company and establish a joint-venture company which will be a processing plant or a manufacturing medicine plant.

5.3 Budget

The total capital needed for this project is US$ 21.85 million. The Chinese side will raise US$ 15 million from domestic sources, while foreign aid and investment will cover the other US$ 6.85 million.

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Table 1. Budget by Item (in million US dollars)

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Table 2. Budget by Output (in million US dollars)

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6. Benefits

After the completion of the project, 260,000 hectares of forest can be restored in ten years. If the pilot project is replicated in the whole area, the ecosystem of the Changbai Mountains' forest can be restored in fifty years. The new forest would grow beyond the National Natural Protection Zone in the Changbai Mountains and effectively protect biodiversity. In the demonstration area, biological resources will be protected and consumed on a sustainable basis. As a result, several profitable industries will be created, specifically, the forage processing plant can produce US$ 36 million annually, while pharmaceutical plants can produce US$ 91 million per year. The eco-environment of the area will be improved and the unemployment problem will be solved.

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7. Risks

The main factor affecting this project is the shortage of funds and technology. In order to overcome these difficulties, the implementing agencies need to cooperate closely with the agriculture and forestry departments, Provincial Planning Commission, and The Provincial Science And Technology Commission. In addition, China lacks forestry professionals because the agroforest system is a new area for the nation. Therefore, international cooperation and training are critical to solve problems in the region.

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