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5.
CONFIDENTIAL
The autumn Party Congress, and the summer months leading up to it, could well therefore be a critical time for the reform programme. Recent moves by the reformers to capture the ideological high ground by their arguments that reform is a prerequisite for proper adherence to the four cardinal principles (economically weak socialism will not be attractive to the Chinese people, and will therefore fail) are indeed encouraging. But this Party Congress, and the private negotiations that will surround it, may be the last real chance for the conservatives (whether Chen Yun's central planning adherents, or the more radical/leftist ideologues in the Peng Zhen mould) before the current generation of leaders passes away.
6. V have also looked at the consequences for British interests arising out of the economic developments you have reported and I attach a copy of our memorandum on that. I also attach a copy of the more detailed Research Dept/Economic Advisers comments on your telno 847, which I hope will be of interest.
CC: Economic Advisers
Research Department
TRED
HKD
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Kim Sullivan
FC2ACL
CONFIDENTIAL