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(i) heavy industry would be adjusted to take into account
the needs of light industry and agriculture. In the past there had been a scarcity of consumer goods;
(ii) a relatively large industrial base had been built up,
but technology and management was backward. Industrial enterprises should be reorganised and technical innovations introduced;
(iii) the infrastructure of transport, communications,
telecommunications and energy must be strengthened.
10. It was evident that readjustment did not simply mean
contraction, but rather the reform and rationalisation of the
economy. Readjustment was not incompatible with China's prosperity but identical to it.
11. Zhao said it was his hope that in ten years it would be
possible to achieve a balance between the various sectors of
the economy, high efficiency and better organisation of
enterprises. The Chinese economy would then grow more strongly. The more rational the economic structure, the more scope there
would be for cooperation with other countries. It would not
be at the end but in the course of readjustment that China
developed economic cooperation with other countires. Cooperation
and trade would develop along with the progress of readjustment.
12.
Lord Carrington said he sympathised with China's problems
and wished her well. He had three bilateral points which he
wished to raise:
(i) there were a number of contracts signed with China
by British companies which might be subject to re-negotiation. Marconi was an example. He hoped that China would understand the problems that this
caused for Britain;
(ii) Britain had a number of items of defence equipment
of interest to China. He hoped China's interest
and current negotiations would both be maintained;
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