CHINESE AUTHORITIES CONTEND THAT THE PRISON SENTENCE MUST BE A MEANS, NOT AN END, AND CITE EXAMPLES OF HOW THEIR TWO MAJOR REHABILITATION TOOLS--FORCED LABOR AND STUDY--HAVE SUCCESSFULLY REPLACED OFFENDERS' 'WRONG THOUGHTS' WITH ACCEPTABLE ATTITUDES AND VALUES. CORRECTIONS IN CHINA, LIKE ALL ASPECTS OF CHINESE SOCIETY, MUST BE UNDERSTOOD IN THE CONTEXT OF COMMUNIST CHINESE IDEOLOGY. AN IMPORTANT FACTOR IS THE REQUIREMENT THAT COURTS INVOLVE THE MASSES IN ALL MAJOR CASES. CASES ARE HEARD IN THE MILIEU (FACTORY, COMMUNE) OF THE CRIMINAL ACT, AND THE PEOPLE ARE GIVEN THE OPPORTUNITY LITERALLY TO EXPRESS THEIR MORAL OUTRAGE ABOUT THE CRIME IN QUESTION. UNFETTERED BY SPECIFIC CRIMINAL SANCTIONS FOR SPECIFIC CRIMES, THE JUDGES (AND TWO LAY ASSESSORS) GRANT PENALTIES (SUPERVISION BY THE MASSES, DETERMINATE SENTENCE, INDETERMINATE SENTENCE, CAPITAL PUNISHMENT WITH OR WITHOUT DELAY) THAT REFLECT THE INTENSITY OF THE PEOPLE'S MORAL OUTRAGE. CASE STUDIES ILLUSTRATING THE MASS LINE IN ACTION ARE PRESENTED. THE POSSIBILITY THAT THE NEIGHBORHOOD JUSTICE CENTER MOVEMENT IS A 'BEGINNING VARIATION' ON CHINA'S MASS-LINE THEME IS NOTED. (LKM)