CCNFIDENTIAL
The Present Situation
5.
The recent developments largely reflect Teng's attempt to widen his power, inter alia in order to prosecute modernisation and to unite and galvanise the country. (Paragraph 11)
6.
The poster campaign was probably instig bed by Teng in order to strengthen his hand but quickly went beyond the guidelines and raised fundamental issues. The young roster writers r flect a current in Chinese thought ick vill be of incre ing in ortance us modernisation proceeds. (Paragraphs 12 - 14)
The Outlook
7.
Very tentatively, we can expect Teng to become increasingly dominant, pushing forward modernisation with a readiness to try unorthodox policies, permitting a greater freedom of discussion but keeping firm control of the main lines of policy. Intellectual enquiry and ferment will grow. Mao will not be wholly discredited. (Paragraph 15)
8.
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he pot is unlikely to boil over but the enterprise is fraught with risks. (Paragraph 16)
9.
Most delicate of all are the relations between Teng and Hua. (Paragraphs 17 - 18)
10.
Obscure though the situation is, the general outlook is hopeful. Internal evolution is unlikely to be explosively rapid. Modernisation should stick, presenting us with great opportunities. (Faragraph 19)
CONFIDENTIAL