CONFIDENTIAL
ANNUAL REVIEW:
CHINA
SUMMARY
014/1
BRITISH EMBASSY,
PEKING.
1.
In January 1987, Hu Yaobang was sacked as General-Secretary of the Central Committee and a campaign was launched against "bourgeois liberalisation". Many judgements about these events cannot yet be made.
(Paragraphs 1 - 3)
2. Deng Xiaoping and his associates still want to build economic efficiency, political community and autonomous institutional
strength into Chinese society.
(Paragraphs 4 and 5)
3. The Chinese economy performed only moderately well in 1986.
Economic reform was taken further.
(Paragraphs 6 and 7)
4. The Soviet Union tried to break the ice in Sino-Soviet relations, but without much success. There was change in China's relations with other countries of Eastern Europe. The situations
in Korea and Taiwan became more difficult for China.
(Paragraphs 8 - 12)
5. Her Majesty The Queen paid a very successful State Visit to China in October. We did well over Hong Kong (though 1987 will be a difficult year), trade and cultural relations.
6.
(Paragraphs 13 - 17)
The campaign against "bourgeois liberalisation" is not to be seen as a return to the politics of the Cultural Revolution.
CONFIDENTIAL
(Paragraph 18)