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China by Mrs Sarah Hogg in The Times. This paucity of

serious analysis is a pity, if only because British visiting

businessmen and bankers_ tend to arrive in China with only

a sketchy notion of the setting in which they plan to pursue

their business ambitions.

27.

I know what is said about the Chinese economy in the

British press.

What I do not know is the extent to which

China's reform programme is being studied in other developing

and Communist countries. The Chinese, for their part, have

studied the reform programmes of Yugoslavia and Hungary. Zhao

Ziyang recently told the Chairman of the Hungarian National

Planning Office that Hungary and Yugoslavia were the "vanguards

and pioneers of reform in the socialist countries" and that

Hungary's experience would be of great help to China. I assume

that the Yugoslavs and Hungarians have studied China's programme.

But have the Russians; and, if they have, are there any signs

that they might be prepared to experiment on some of the same

lines? In a particularly interesting passage of his speech at

Chatham House Hu Yaobang said:-

"Some people abroad did not favour our opening to the

outside world and the reform. They suspected that our

policies deviated from orthodoxy and were nothing but

heresies. But suspicions like this have tapered off in

recent years and they began to view our policies in a

new and favourable light."

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