CONFIDENTIAL
COUNTRY ASSESSMENT PAPER:
SECTION I: INTRODUCTION
CHINA
1. China, which contains a quarter of the world's
population, is a country of ancient culture, vast size and
abundant resource, much still untapped. The erratic course
of China's policies from the late fifties to mid-seventies
failed to consolidate the achievements of the early years
of Communist rule. Under the leadership of Deng Xiaoping,
China has committed herself to an ambitious modernisation
programme designed to strengthen the country economically.
This has involved an opening to the technology and finance
of the developed world and also to wider cultural
influences.
China is a nuclear power and a permanent member
of the UN Security Council. Although in many respects still
backward, she is already a major factor in international
relations and will grow in importance. Britain has a
particular interest in ensuring the smooth handover of Hong
Kong in circumstances which will give Hong Kong the best
chance of remaining a free society and a capitalist
economy and, Following the Joint Declaration on Hong Kong in
1984, UK/China relations have attained a new breadth and
warmth.
2. Chinese domestic policies are centred on the economic
modernisation programme. The goal set in 1982 to quadruple
the value of agricultural and industrial output by 2000 is
well on target but achievements so far have not led to a
breakthrough in improving the efficiency or technological
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CONFIDENTIAL
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