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CONFIDETI AL

2. Mr. Aichi thought that Chinese educational

and social policies would be affected by passive

resistance on the part of the middle classes an

technocrats. It was unlikely that there would

be any "great leap forward", with the attendant

risk of cconomic chaos. Mao was concentrating

on the reconstruction of the Farty and Govern-

M

ment organisations with the help of the working

class, but it was doubtful if this would lead

to stability in China. Within the People's

Liberation Army its unity had by no means been

secured.

3.

A

China's diplomacy had recently been

characterised by rigidity, exemplified by the

notice of suspension of the Sino- American talks,

the tough attitude to the Soviet Union over

recent border clashes, the appeals for all-out

resistance by North Viet-Nan, and denunciation

of the Japanese Government. Since the border

clashes, the Chinese had shown a markedly anti-

Soviet attitude. She had for example denounced

the Soviet Union for attempting to divide the

world in collusion with the United States.

Since the invasion of Czechoslovakia the Chinese

had shown increased suspicion of Soviet imper-

ialism. Both China and the Soviet Union had

played up the border incidents for their own

political purposes and this had led to increasal

tension, but it was unlikely that a serious.

conflict would follow.

CONFIDENTIAL

/4.

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