The World - News from Aug. 2, 1988

China, moving to modernize its armed forces and to boost morale, is reinstating the system of military ranks. Mao Tse-tung banned ranks in 1965 as inappropriate to his classless peasant army. On Oct. 1, China’s national day, soldiers are to don new uniforms with insignia designating their military positions. The government also has issued regulations spelling out awards to be given to soldiers and their families, including guarantees that service people will not lose their farmland when they are conscripted, as well as offering pensions to those disabled in combat and payments to the families of those killed in action.