Jiang stressed the ``party's absolute leadership'' over the military in addressing the People's Liberation Army (PLA) delegation to the annual session of the National Legislature yesterday.

Jiang, who heads the party commission that oversees the military, ordered commanders and political commissars to use ``powerful ideological education and strict management'' to ensure PLA loyalty.

Chinese leaders have discussed the need for stability in almost every speech during the 11-day meeting of the National People's Congress.

Reforms to revamp state industries and end the last vestiges of central planning have created soaring unemployment, stagnating incomes and widespread resentment.

``The country's reforms and development are at a crucial stage. The responsibilities are heavy. There are quite afew difficulties and contradictions on all sides,'' national newspapers quoted Jiang as saying. ``This year there are many major events for the country and party. Maintaining social stability has become all the more important.''Chinese leaders want to make sure disgruntled farmers, workers and dissidents do not make trouble during the tenth anniversary of the Tiananmen Square democracy movement this spring, the 50th anniversary of Communist rule in October and China's recovery of Macau, a Portuguese colony, in December.

The PLA, the world's largest army with 2.9 million members, is seen as the Communist Party's last line of defence for survival. PLA troops had to be called in to put down the Tiananmen protests when paramilitary forces failed.Given the party's reliance, the PLA carries tremendous clout. The government has been doling out double-digit increases in military spending throughout the 1990s. The latest was a 12.7 per cent increase announced a week ago at the Congress.

Jiang said a ``majortask'' was to improve the quality and combat power of the military. Given limited funds, however, he urged the PLA to find cost-effective ways to modernise.