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CONFIDENTIAL

c) Agriculture

16. The one area where the reformists can still claim almost

total success is agriculture and Zhao laid strong stress on the

long term nature of present policies. The importance of this is

very great since 80% of the population are dependent on it.

This continues to be offered as the main proof that the

reformists are right.

d) Population

17. Nowadays an integral part of Chinese economic plans is

population control and here Zhao announced a draconian policy:

"We must strictly control second births and prevent additional

births by all means". This means enforced sterilisation. Such

a policy was first announced in Guangdong in May. We now know

that it is also being applied in at least Guangxi, Fujian, Inner

Mongolia and Tianjin.

Education and Culture

18. The development of education received much stress at the

Congress. Zhao announced that the State Council would increase

investment in this area year by year: salaries of intellectuals

are also going to be "gradually" increased. Between now and 1987,

it is planned that the number of undergraduates in China's regular

universities will rise from 1.15 million to 1.76 million. Numbers

in the specialist and technical universities run by the provinces

will see a far larger increase, from 0.64 million to 2.37 million.

CONFIDENTIAL

/The

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