:

Confidential

זי

S. THE CAMPAIGN AGAINST BOURGEOIS LIBERALISATION IS GOING

STRONG. IT IS AT THE MOMENT CONFINED TO THE POLICAL AND IDEOLOGICAL

SPHERES. WITHIN THESE SPHERS, THE LIMITS OF THE PARTY'S TOLERANCE,

EVEN UNDER DENG HAVE BEEN SET. IT WILL CLEARLY MAKE NECESSARY A

REVISION AT THE VERY LEAST, OF THE REFORM PROGRAMME AS SET OUT IN

THE RESOLUTION OF THE SIXTH PLENUM OF THE TWELFTH CENTRAL COMMITTEE

IN SEPTEMBER 1996. IT WILL MAKE ALL PARTY AND STATE OFFICIALS WHO

ARE CONCERNED WITH IDEOLOGY, CULTURE AND EDUCATION MORE CAUTIOUS IS

THEIR DEALINGS WITH ONE ANOTHER AND WITH FOREIGNERS. IT IT GOES ON

FOR SOME TIME, IT COULD BEGIN TO PRODUCE THE KIND OF BEHAVIOUR BY

MIDDLE-RANKING OFFICIALS WHICH OCCURRED DURING THE CAMPAIGN AGAINST

SPIRITUAL POLLUTION THREE YEARS AGO. INTELLECTUALS TOO WILL BE

CONSIDERABLY MORE WARY, DESPITE LI PENG'S ASSURANCES ON 17 JANUARY

THAT THEY ARE NOT THE TARGET OF THE COMPAIGN.

!

9. IN SPEAKING TO HAVASI FERENZ ON 18 JANUARY, ZHAO WAS AT PAINS TO EMPHASISE THAT THERE WOULD BE NO CHANGE IN THE PARTY'S ''LINE AND

POLICIES. INTER ALIA, HE SAID., WE WILL CONTINUE THE POLICY OF

OPENING TO THE OUTSIDE WORLD' AND "WE WILL EXPAND OUR COOPERATION WITH FOREIGN COUNTRIES IN TRADE, ECONOMIC, TECHNICAL, MONETARY AND OTHER FIELDS". BUT I BELIEVE THAT OFFICIALS RESPONSIBLE FOR THE IMPLEMENTATION OF ECONOMIC POLICY WILL ALSO BECOME MORE CAUTIOUS.

AND SOME OF THE POLICIES THEMSELVES, PARTICULALY THOSE OF A MORE CONTROVERSIAL OF FUNDEMENTAL NATURE SUCH AS FINANCIAL OR PRICE REFORM COULD BE MODIFIED. FOREIGN POLICY IS LESS VULNERABLE, BUT IT TOO WILL BEAR CLOSE SCRUTING IN THE COMING WEEKS.

10. ALL THOSE I HAVE SPOKEN TO AGREE THAT ZHAO CANNOT REMAIN BOTH ACTING GENERAL-SECRETARY AND PREMIER FOR VERY LONG. THE MAJORITY, WITH WHOM I AGREE, EXPECT THAT HE WILL BE CONFIRMED AS GENERAL SECRETARY AT THE NEXT PLENUM OF THE CENTRAL COMMITTEE AND CEASE TO BE PREMIER THEN OR NOT LONG THEREAFTER. THE PRINCIPAL CANDIDATES TO

SUCCEED HIM AS PREMIER ARE LI PENG, TIAN JIYUAN, CIAO SHI AND LI

RUTHUAN, MAYOR OF TIANJIN. MY OWN MONEY IS SPREAD EQUALLY BETWEEN THE FIRST AND THE LAST OF THESE.

11. WITHIN THE PARTY, IT DOES NOT LOOK AS IF HU CILI HAS SUFFERED WITH HU YAOBANG. HE TOO RECEIVED HAVASI ON 18 JANUARY. BUT THERE IS A STRONG RUMOUR THAT ZHU HOUZE, THE HEAD OF THE PROPAGANDA OF THE CENTRAL COMMITTEE, HAS BEEN REPLACED BY A JOURNALIST FROM THE PEKING DAILY.

Confidential

112.

Share This Page