Y
CONFIDENTIAL
054333 MDHIAN 2660
IT IS A FACT THAT MANY
TO LAYING DOWN THE PRINCIPLE GUIDELINES. PRACTICAL AND INDEED THEORETICAL ASPECTS OF THE CURRENT HOT REFORM TOPICS HAD BEEN DISCUSSED AND ELUCINATED AT OTHER MEETINGS BEFORE THE CONGRESS, AND IN THE CHINESE PRESS. HOWEVER, THE NATURE OF THE OMISSIONS IN ZHAO'S REPORT ALSO HINTS AT A DISTINCT UNWILLINGNESS TO GRAPPLE WITH WHAT MOST OUTSIDERS SEE AS THE PRINCIPAL PROBLEM FACING CHINA, NAMELY HOW TO RECONCILE STATE PLANNING WITH MARKET-ORIENTED PRICE REFORM. MOST ASPECTS OF CURRENCY POLICY WERE GIVEN FORMAL ENDORSEMENT INCLUDING SOME NEW DEPARTURES, SUCH AS THE IDEA OF A REAL ESTATE MARKET AND APPROVAL FOR SOME FORMS OF UNEARNED INCOME. BUT THE TONE WAS ON THE WHOLE DEFENSIVE: AND DIFFICULT BUT CRUCIAL QUESTIONS SUCH AS BANKRUPTCY WERE OMMITED ALTOGMTHER FROM THE DISCUSSION OF ENTERPRISE REFORM.
8.
FROM THE POINT OF VIEW OF CHINA'S ECONOMIC RELATIONS WITH THE OUTSIDE WORLD, THE REPORT WAS POSITIVE AND HELPFUL. ZHAO SAID CHINA WAS COMMITTED TO LONG-TERM WORKING WITH THE REST OF THE WORLD, AND SPECIFIC MEASURES FOR IMPROVING FOREIGN ECONOMIC CO-OPERATION WERE
INCLUDED.
POLITICAL REFORM
9. THERE WAS CONSIDERABLY MORE IN TERMS OF SPECIFIC COMMITTMENTS TO POLITICAL REFORM THAN MIGHT HAVE BEEN EXPECTED. THIS AUGURS WELL FOR ZHAO: ESPECIALLY AS IT WOULD HAVE BEEN SO EASY FOR THIS MOST CONTROVERSIAL PART OF HIS SPEECH TO GET LOST IN MEANINGLESS VERBIAGE. IT IS NOW CLEARER EXACTLY WHAT IS MEANT BY SEPARATING PARTY FROM GOVERNMENT. THE PROPOSAL TO DIVIDE GOVERNMENT SERVANTS INTO POLITCAL FIXED-TERM APPOINTEES AND PERMANENT CIVIL SERVANTS RECRUITED BY EXAMINATION IS A SIGNIFICANT STEP FORWARD. SO TOO IS THE ABOLITION OF PARTY LEADING GROUPS IN MINISTRIES AND THE CONFINING OF THE DISCIPLINE INSPECTION OF COMMISSION TO PARTY MATTERS. NONETHELESS HERE TOO MUCH OF THE BENEFIT OF A NEW LINE HAS BEEN DILUTED BY THE LONG TIME-SCALE ASSIGNED TO MOST OF IT. THERE IS PLENTY OF ROOM FOR FOOT-DRAGGING. THE CHINESE PEOPLE WILL HAVE
TO WAIT A LONG TIME FOR ANYTHING WE WOULD CALL DEMOCRACY: SECTIONS DEALING WITH THIS WERE THE VAGUEST OF ALL.
10. LOOKING TO THE MORE IMMEDIATE FUTURE, THE REQUIREMENT FOR THE POLITBURO STANDING COMMITTEE TO REPORT TO THE POLITBURO AND FOR THAT BODY TO REPORT TO MORE FREQUENT PLENARY SESSIONS OF THE CENTRAL COMMITTEE SEEMS DESIGNED TO PROVIDE FOR MORE MEANINGFUL COLLECTIVE LEADERSHIP IN THE SUCCESSION PERIOD. NO GROUP OR LEADER WILL BE ALLOWED TO MAKE DECISIONS WITHOUT BEING FAIRLY QUICKLY ACCOUNTABLE
TO THE REST OF THE PARTY.
3
PAGE CONFIDENTIAL