-8-

4.

Restructuring the Economy. Another point which emerged is the enormous scale of the economic restructuring envisaged for the nineties. Food production is intended to increase by 20% and, at the same time, some 200 million people are expected to move out of the agricultural sector into other activities. The implications of these vast changes physical, economic, regional and political briefly but intensively discussed.

-

were

5. Foreign Relations. In the discussion of political and security matters, a number of sensitive issues were raised, besides that of Hong Kong already mentioned. The future relationship of North and South Korea was raised, as was the relation of China with the USSR, with Japan, with the USA and with the European Community as it moves towards a unified internal market.

6.

Students Abroad. At the time of the meeting, the Chinese were deeply concerned about the future of the large number of Chinese scientists and engineers studying abroad. This issue was intensely discussed. The importance of ensuring that scarce scientific and engineering talent is most effectively used was stressed. This presents serious problems in practice: it requires the mobility of scientists and engineers, and the decontrol of their wages, if they are to be attracted to those productive enterprises where their talents can best be used.

The views expressed on these points in the meeting and directly to the supreme leaders appear to have had an identifiable impact on policy.

7. Political Reform. Finally, one underlying theme emerged at many times in the meeting and in the informal contacts. It is the relation of economic liberalisation to political reform. The sheer scale of the country itself, and of its opportunities and problems require that the political process must be well adapted if it is to absorb the inevitable strains of rapid modernisation.

*

Share This Page