crops.
CONFIDENTIAL
peasants switching from grain to the more profitable cash
In order to reduce the numbers directly employed
in agriculture and to expand the economy, new jobs in the
industrial and service sectors of the rural economy are
also being encouraged.
6.
Living standards are nevertheless evidently
improving. Street markets are thriving, the variety of
clothing and consumer goods is increasing, house
construction in the countryside is booming. But China
remains poor, with a GDP per head of around US $300.
Environmental problems are growing: "air pollution gives
China the look of existing in a permanent sunset" (Paul
Theroux) and the water-table in Peking has fallen
dangerously in the past 10 years.
7.
Agricultural and industrial output value is well on
target to achieve the objectives for 2000 but sensitive
issues need to be tackled if progress is to be
maintained. Success seems unlikely without reform of
political as well as economic structures. To many in
senior Party posts, this seems dangerous. Nevertheless
the process of reform has a considerable self-generating
momentum as long as the overall effect is generally felt
to be beneficial. So far that remains true.
FC6AAJ
CONFIDENTIAL