GRS 600

CONFIDENTIAL

FM PEKING

TO ROUTINE FCOLN

TELNO 222

OF 120154Z FEBRUARY 87

Confidential

INFO ROUTINE HONG KONG, WASHINGTON, MOSCOW, TOKYO

INFO SAVING SHANGHA

нив

33

Моника

0201

* T

0 4 MAR 1987

ALCEIVE

CHINA:

INTERNAL SITUATION.

DESK

PA

SUMMARY.

www at 14evrat,900JBL JADE

1. THE IMMEDIATE REPERCUSSIONS OF HU YAOBANG'S DISMISSAL SEEM TO BE

OVER, LEAVING A SURFACE APPEARANCE OF CALM AND BUSINESS AS USUAL. THE REFORMERS' LINE ABOUT CONFIRMING THE IDEOLOGICAL DEBATE TO

WITHIN THE PARTY AND NOT ALLOWING IT TO AFFECT THE SUBSTANCE OF REFORM APPEARS TO BE HOLDING. POLITICAL ATTENTION HAS MOVED AWAY FROM THE HEADLINES OF THE CHINESE PRESS, BACK TO THE MUCH MORE INACCESSIBLE CONFINES OF ZHONGNANHAH.

DETAL

2. THE REMOVAL OF THE DIRECTOR OF THE CENTRAL PROPAGANDA DEPARTMENT, ANNOUNCED EARLIER THIS MONTH, HAS COMPLETED THE LIST OF IMMEDIATE

VICTIMS OF THE RESENT AFFAIR. NO MORE SENIOR HEADS ARE EXPECTED TO

ROLE AT LEAST FOR THE TIME BEING. HU YAOBANG HIMSELF HAS BEEN REPORTED, BY THE FOREIGN PRESS, TO BE SICK AND IN HOSPITAL. WE HAVE NO MEANS OF KNOWING HOW RELIABLE THESE REPORTS ARE OR HOW SERIOUS THE ILLNESS MAY BE. BUT IT IS NOT AN UNLIKELY OUTCOME, GIVEN THE

INTENSE MENTAL AND EMOTIONAL STRAIN HE MUST HAVE BEEN UNDER.

3. THE STRUGGLE AGAINST BOURGEOIS LIBERALISATION, AS THE CHINESE

TERM THE PRESENT EMPHASIS ON IDEOLOGICAL RECTITUDE, HAS NOT BEEN

DEVELOPED AS MUCH AS MIGHT WELL HAVE BEEN EXPECTED. THE REFORMERS'

LINE, WHICH WAS ENUNCIATED BY ZHAO ZIYANG IN HIS SPEECH OF 28 JANUARY (MY TELNO.155) AND WHICH SEEKS TO LIMIT THE STRUGGLE TO

WITHIN THE PARTY AND TO PREVENT IT SPILLING OVER TO ECONOMIC POLICY,

IS DOMINATING THE CHINESE PRESS. THERE HAS BEEN NO DEOLOGICAL

COMMENTARY IN THE PEOPLE'S DAILY SINCE THE EDITORIAL OF 2 FEBRUARY

(MY TELNO.155) WHICH ALSO QUOTED ZHAO'S LINE. EVEN THE DENUNCIATION

OF THE CAMPAIGN'S PRINCIPAL STALKING HORSES VICTIMS (FANG LIZHI, AND OTHERS) HAS FADED SOMEWHAT. INSTEAD, THE PRESS READS VERY MUCH AS NF NOTHING HAD HAPPENED, AND ONE BY ONE THE VARIOUS DIFFERENT ASPECTS OF ECONOMIC REFORM ARE RECEIVING POST-HU YAOBANG RE-ENDORSEMENT IN THE FORM OF ARTICLES OR COMMENTARIES ON THE

SUBJECT. ONE OF THE MOST SPECIFIC OF THESE WAS A COMMENTARY IN

GUANGMING DAILY OF 10 FEBRUARY WHICH CONCEDED THAT THE STRUGGLE

AGAINST BOURGEOIS LIBERALISATION COULD HAVE GIVEN RISE TO SOME DOUBTS ABOUT POLICY AMONG OFFICIALS AND AMONG THE PEOPLE. BUT THESE

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