CONFIDENTIAL
historic Sino-Soviet Summit in Peking in May.
HKB 02016
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57
Ry My
Miss Merosen
Mr Forge N18/4 Mr Wood wrtic
یم کا نقلہ کا
18/4
W B McCleary
(see last tirer)
[CHINA: NATIONAL PEOPLES CONGRESS SESSION]
1. Miss Bailes has produced a very good series of telegrams on the NPC in the Ambassador's absence. I agree generally with her comments and those of the Department.
2.
I would add only three observations:
The "austerity" promised by Li Peng in his work report may bring inflation under control but it is likely to throw up more problems than it cures. The effective abandonment of price reform, at least for the time being, is a clear indication that cautious counsels have prevailed. But the kind of cautious policies now adopted will not result in any qualitative change in the economic situation.
The lack of any move towards political reform is also likely to generate new tensions.
TELL THAT TO MR LAWSON!
ASIAAK
4
CONFIDENTIAL
Outstanding