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CONFIDENTIAL

worked under him in the late 1940s and early 1950s. We have

heard that there was acrimonious debate over the re-appointment

of Zhang Aiping as State Councillor and Minister of National

Defence, no doubt due to continuing disagreement over the policy

of self-reliance in defence procurement which he was primarily

responsible for formulating earlier this year, and which lay

behind the cancellation of the 051 project.

35. Eight of the 45 Ministers are new. Five of these have

moved up from the position of Vice Minister in their own

ministries.

They are mostly able middle aged technocrats.

The new Minister of Public Security, Liu Fuzhi, was previously

Minister of Justice, but he had an uninterrupted history from

1949-1966 in the Ministry of Public Security which he has now

returned to. The Auditor General, Yu Lingtao, was formerly

Governor of Shaanxi province and most of his previous career

has been spent in the provinces. His post is newly created.

The only other new Ministry, that of State Security, is to be

headed by Ling Yun, previously a Vice Minister of Public Security.

36. The membership of the State Central Military Commission

closely resembles that of the Party, the Chairman and Vice

Chairmen being the same. There had been speculation before

the NPC that Deng Xiaoping might not head the State body as

well as the Party, but in the event he decided to do so,

underlining the fact that problems of leftism in the People's

CONFIDENTIAL

/Liberation

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