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eliminated on the mainland, there still

exist remnant elements of these classes who retain their reactionary stand. They will continue their sabotage activities and thus are our enemies;

iii) There are still remants of the Gang of Four's

factional set-up and other criminals against

the socialist system;

iv) Influence of people from capitalist countries

including espionage; and

v) domestic criminal activities and corruption

which bring great damage to the socialist

Economy and arc definitely a kind of class

struggle.

17.

However, the paper says, class struggle in the pre- sent stage must be handled correctly. It says that, firstly, class struggle is not the focal task of China's whole work; secondly, this kind of class struggle is no longer the revo- lution of one class overthrowing another; thirdly, social

contradictions between the enemy and the people are only a tiny minority; and finally, the criminal activities of hos- tile elements must be dealt with according to the law.

18.

The paper says this kind of struggle will continue for a long period and the Chinese people must maintain a

sober mind. Class struggle in the present stage in China should be appraised scientifically and handled correctly. Only in this way can stability and unity be consolidated and developed and socialist modernisation progress smoothly,

the paper says.

Peasants must not be Selfish

Agence France Presse - 7th November

19.

China's 800 million peasants are entitled to get rich but they must take an active part in communist construc- tion and not think only of their own interests, Xinhua

reported today.

CONFIDENTIAL

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