Wu Tianlai, who operates a diner in Danxia Town in Renhua County, is a firm believer in Rural Co-operative Medicare.

"It's only 6 yuan (72 US cents) per head a year. There are nine people in my family, so it comes to 54 yuan (US$6.50) a year - the price of a few packs of cigarettes," he said.

When he broke his leg last November, the government paid 1,500 yuan (US$181) towards his medical bills. The obvious advantages of the programme have prompted 3,701 people, or about 55 per cent of the town's population, to join.

Ma, the town head, sees no difficulty in maintaining the programme since Danxia is a tourist destination with an annual fiscal budget surpassing 2 million yuan (US$240,000).

Poorer areas in Guangdong are also developing the programme assisted by provincial government aid, which totals 60 million yuan (US$7.2 million) this year.

By 2006, the annual amount injected into Rural Co-operative Medicare will reach 300 million yuan (US$36.1 million), meaning about 60 per cent of the province's rural population can be covered.

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