Special report: Strong Earthquake Jolts SW China

BEIJING, May 21 (Xinhua) -- Premier Wen Jiabao announced here on Wednesday the central government will allocate 70 billion yuan (10.14 billion U.S. dollars) this year for a reconstruction fund for the quake-hit regions. He also pledged to arrange funds for the reconstruction over the next two years. He admitted the devastating earthquake had caused huge losses in quake-hit regions and said reconstruction would be an arduous task. He called for the organization of a special group to draw up a reconstruction plan as soon as possible. "While making the reconstruction plan, we must fully consider the geological conditions and bearing capability of the natural resources and environment of these regions to strike a balance between urban and rural areas, industrial and agricultural production," he stressed. He announced that the central government's spending will be slashed by 5 percent this year to fund quake relief efforts. He ordered government organizations and public institutions at all levels to decrease their spending on