UK CONFIDENTIAL

CAN/AUS/UK/US EYES ONLY

9.

It

Deng himself clearly remains in charge, but at the cost of having to

assert the primacy of Party discipline over the liberal tendencies to

which his reform process has inevitably given rise. He has also had to

Carleen untu recarity dismiss a senior and, trusted, protege in unfavourable circumstances.

must appear to Deng that only he can keep the reform process on its

precarious tightrope, and he now clearly feels unable to retire at the

Party Congress.

4

CAN/AUS/UK/US EYES ONLY

UK CONFIDENTIAL

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