་,
THE CEN AL GOVERNMEN TUCBET.
16. THE EFFICIENCY AND PROFITACILITY OF INDUSTRY BOTH CONTINUE TO DECLINE AND THE NUMBER OF LOSS-MAKING ENTERPRISES IS MOUNTING. THERE IS CONSIDERABLE RESISTANCE AT FACTORY LEVEL TO THE INTRODUCTION OF MAGE AND BONUS DEFFERENTIALS. MOREOVER, GOVERNMENT'S CAMPAIGN TO PEDUCE UNNECESSARY EXPENDITURE HAS HAD VERY
THE
MIXED RESULTS.
17. ANOTHER UNRESOLVED PROBLEM IS THAT OF WHERE TO STRIKE THE BALANCE BETWEEN CENTRALISATION AND DECENTRALISATION IN ECONOMIC DECISION-MAKING. THERE IS A GOOD DEAL OF EVIDENCE THAT THE DECENTRALISATION OF MANY POWERS, ESPECIALLY IN THE FIELD OF PLANNING, TO THE PROVINCES (AND THE SUBSEQUENT ESTABLISHMENT DIF PROVINCIAL, MUNICIPAL AND EVEN COUNTY LEVEL ADMINISTRATIVE BUREAU) HAS NOT INCREASED THE POWER OF FACTOPY MANAGERS TO TAKE DECISIONS AND HAS THUS HINDERED IMPLEMENTATION OF THE POLICY DIF TURNING FACTORIES INTO RESPONSIBLE PROFIT CENTRES. A NUMBER OF POWERS (IN PARTICULAR CONTROL OVER WAGES AND OVER INVESTMENT HAVE BEEN RECENTRALISED.
12. THE TRADE AND CURRENT ACCOUNTS HAVE BEGUN TO LOCK A 300D DENL MORE HEALTHY. THE DEFICIT ON TRADE ACCOUNT CURING THE FIRST CHARTER OF 1277 WAS ONLY US DOLLARS 1 BILLION, THERE WAS PROBABLY 1 CHEBLUS
ON THE CURRENT ACCOUNT.
4.
OUTLOOK
12. THE PROBLEM WHICH UNDERLIES ALL OTHERS FOR THE LEADERSHIP IS THAT OF DECIDING WHAT KIND OF ECONOMIC SYSTEM IT WANTS. IT HAS ABANDONED ECONOMIC MAGISH AND ECONOMIC STALINISM. BUT IT HAS NOT YET DECIDED HOW FAR IT WANTS TO GO TOWARDS A MARKET SYSTEM. IT IS NOT CLEAR HOW FAR IT WANTS TO TAKE THE DECONTROL OF PRICES. NOR HAS IT WORKED OUT WHAT DEGREE OF MANDATORY AND INDICATIVE PLANNING IT COULD - OR WOULD WANT TO KEEP IN A SYSTEM WHERE MOST PRICES WERE
MARKET-DETERMINED.
20. MEANWHILE, HOWEVER, THE CHINA MARKET PEMAINS A PROMISING ONE FOR 2RITICH INDUSTRY. THE 1SPD HAS PROJECTED IMPORTS WORTH BETWEEN C COLLARS 223 BN AND US DOLLARS 200 BN IN THE YEAR 2000 (IM 1385 PRICES, ASSUMING INTERNATIONAL INFLATION AT AN AVERAGE OF 5.6 PER CENT PER YEAR). IF THE UNITED KINGDOM COULD INCREASE ITS MARKET SHARE FRON 2 PER CENT NOW TO 5 PER CENT THEM, THE CHINA HARKET WOULD INDEED HAVE BECOME A SIGNIFICANT PNE.
EVANS
PENPAN 6386
LIMITED
PS/DUS
FED
ECON ADVS
TRED
MR. GILAMOLE
D
MR. MOLACEN
PS
PS/H 2.RENTON
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PIES TO
VIC. ST.