achievements.

dom's

12. The period of setbacks From 1905 to 1976. In this Cultural Revolution period, Chinese activities in Hong Kong were apparently seriously interfered with and disrupted by Lin Piao and the Gang of Four. Although there were still some gains, on the whole it was retreat as compared with the preceding period.

3. The period of fresh development - from the fall of the Gang of Four in October 1976 up to the present. In this short span of over a year, Chinese activities in Hong Kong appear to be divided into two stages. The emphasis of the first stage was on adjustments, and the emphasis of the second is on development, with the first stage paving the way for the second stage. The dividing line between these

two stages was the 11th CCP Congress and the 5th NPC. In actuality, however, Wang K'uang's appointment should be viewed as the starting point of new development in activities in many fields.

Chinese activities in the present stage are not believed to be a simple repeat of those undertaken prior to the Cultural Revolution. In other words, the tasks, the scope of activities and the approaches may not be the same. The tasks will become heavier, the scope will be broadened and the methods of work will also be improved to a great extent. These estimates are based on background information known to all. The changes in the domestic and international situation determine the great escalation of Chinese activities

here.

Background to Wang K'uang's posting to Hong Kong

The 11th CCP Congress set forth a new task for the

new period: to achieve the four modernizations. This calls for huge amounts of capital, foreign exchange, advanced science and technology and experiences in construction. То the Chinese, Hong Kong is an important foreign trade position,

/contd.......

3.

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