CONFIDENTIAL

DINNER FOR GENERAL SECRETARY HU YAOBANG ON 9 JUNE:

CONVERSATIONAL POINTS

A.

CHINA RELATED

1. Tremendous success of agriculture recently. But

redundant agricultural labour, and drift to cities.

Widening gap between rich and poor areas. How to balance grain (1985 harvest fell for first time in five years) and cash crop production? How to combine individual

incentives with economies of scale?

2. Economic and political relations between Peking and

provinces? Are you working towards new synthesis between State and individual economy? World respect for Deng Xiaoping's achievements. What is working

-

the

relationship between Deng, Zhao, Hu, and other leaders?

Where will "third echelon" leaders come from

provinces, the Party, the bureaucracy?

Whom to invite to

UK? Role and status of scientists and artists? (Sent message to distinguished dramatist Mr Cao Yu who organised huge Shakespeare festival in China).

3.

How will military planning develop? How many Soviet troops on your borders and how well equipped? Will reduced numbers in PLA mean China increases weapons and

equipment? How do Chinese people regard the army?

4.

Problems of economic planning in modern China. How do you avoid overheating without restraining individual enterprise? How to attract foreign investment and cooperation without resorting to Stop/Go? How serious

are foreign exchange constraints? How to get most out of

domestic and foreign technology (eg space programme)?

5. Social consequences of one -child policy (no siblings, uncles, aunts, cousins). Importance of

medical care for only children.

/6.

CONFIDENTIAL

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