CONFIDENTIAL

DSR 11C

SECTION I: WHAT DOES CHINA WANT FROM THE UNITED KINGDOM?

It

2. In Mao's lifetime, Chinese economic policy oscillated

between the pragmatism associated with Chou En-Lai and

the revolutionary idealistic approach seen at its most

extreme during the Cultural Revolution. Mao's death was

followed by the defeat of the ideological line of the

Gang of Four and the return to the leadership of the

highly pragmatic Teng Hsiao-ping. Further adjustments of

policies and personalities cannot be excluded, but there

are good reasons for the Chinese leaders in the years

ahead to give economic growth and defence, which is

dependent on it, priority over ideological factors.

is reasonable to assume that they will continue to act

in accordance with this broad goal of modernisation,

although there will be differences of opinion about

the way in which the priorities in the fields of

agriculture, industry, defence, and science and technology

are worked out. In all these fields, however, the

rapid modernisation which China seeks will require the

transfer of advanced technology from abroad. She will

on the other hand wish to avoid becoming overly dependent

on foreign countries in general or any one country in

particular.

CA

3. The Chinese will not look primarily for this

resistance to the Soviet Union and its allies: Sino-

Soviet tensions may lessen, and practical co-operatives

may increase, but the underlying mutual hostility and

fear will remain. In the United States, domestic

CONFIDENTIAL

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