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State Council. Article 20 The State encourages and facilitates the development of township enterprises by means of credit and loan. With regard to the township enterprises that meet one of the conditions provided in the preceding article and the qualifications for loan, the relevant financial institutions of the State may grant them priority loan or provide concessional loan to the ones that lack funds for production but have a promising future. The specific measures for granting priority loan and concessional loan mentioned in the preceding paragraph shall be prescribed by the State Council. Article 21 The people39。s governments at or above the county level may, in accordance with the relevant regulations of the State, set up development funds for township enterprises. The funds shall consist of the following: (1) the working funds allocated by the government for the development of township enterprises。 (2) a certain proportion of the increased taxes annually turned over to the local people39。s governments by the township enterprises。 (3) the profits derived from use of the funds。 and (4) the funds provided of their own free will by the rural economic collectives, township enterprises and farmers. Article 22 The development funds for township enterprises shall specially be used for supporting the development of such enterprises in the following ways: (1) to support the development of township enterprises in areas inhabited by ethnic minorities, in outlying areas and povertystricken areas。 (2) to support economic and technological cooperation between township enterprises in economically developed areas and such enterprises in economically underdeveloped areas and areas inhabited by ethnic minorities and support their efforts in undertaking jointlyinvested projects. (3) to support township enterprises in their efforts to readjust the structure of production and the mix of their products in accordance with the industrial policy of the State。 (4) to support township enterprises in their efforts to update technology, to develop famousbrand, special, excellent and new products and to produce traditional handicrafts。 (5) to develop such township enterprises as manufacture means of production for agriculture or directly serve the needs of agricultural production. (6) to develop such township enterprises as are engaged in processing, storage, transport and marketing of grain, feed and meat。 (7) to support vocational education and technical training for employees of township enterprises。 and (8) other projects that need support. The specific measures for establishment, use and management of the development funds for township enterprises shall be formulated by the State Council. Article 23 The State helps train skilled people for township enterprises and encourages scientists, technicians, managers and administrators and graduates of universities, colleges and specialized secondary schools to work in such enterprises and serve them in various ways. Township enterprises shall, through various channels and forms, train their own technicians, managers and administrators and producers and adopt preferential measures to recruit skilled people. Article 24 The State adopts preferential measures to encourage all forms of economic and technological cooperation between township enterprises on the one hand and scientific research institutions, institutions of higher learning, Stateowned enterprises and other enterprises and organizations on the other. Article 25 The State encourages township enterprises to carry out economic and technological cooperation and exchange with other countries, build exportoriented modity production bases and increase foreign exchange earnings from exports. Township enterprises that meet the requirements may, after approval in accordance with law, be authorized to engage in foreign trade. Article 26 Local people39。s governments at all levels shall, under the principle of unified planning and rational geographical distribution, bine the development of township enterprises with the construction of small towns, guide and promote the properly concentrated development of township enterprises and gradually increase the building of infrastructure and service facilities to accelerate the construction of small towns. Article 27 Township enterprises shall, in accordance with market demand and the industrial policy of t