CONFIDENTIAL
HKB 020/6
CONFIDENTIAL
FM PEKING
TO IMMEDIATE FCO
TELNO 577
OF 050941Z APRIL 89
д
INFO PRIORITY HONG KONG, ACTOR, WASHINGTON, MOSCOW
INFO PRIORITY UKMIS NEW YORK, CANBERRA
INFO ROUTINE UKREP JLG HONG KONG
INFO SAVING SHANGHAI
43
120043 MDHIAN 9355
Enterp..
all three tels
тре
HK/Chine вродій
CHINA: NATIONAL PEOPLE'S CONGRESS.
SUMMARY.
1. THE N P C SESSION CLOSED ON 4 APRIL. A NUMBER OF REPORTS WERE MADE DURING THE SESSION AND TWO IMPORTANT LAWS PASSED. THE N P C ACCEPTED THE NEED TO PERSIST WITH CURRENT ECONOMIC STABILISATION POLICIES, BUT WITH SOME INDICATIONS OF UNEASE. DESPITE ATTEMPTS TO RESTRAIN CONTROVERSY, DEPUTIES MANAGED TO BE SHARPLY CRITICAL OF GOVERNMENT PERFORMANCE IN A NUMBER OF AREAS. FACTS ARE IN THIS TELEGRAM AND GENERAL IMPRESSIONS AND COMMENTS IN MY TWO IF T.
DETAIL.
2.
THE 2ND SESSION OF THE 7TH N P C CLOSED ON 4 APRIL. PEKING TELNOS 494, 495 AND 496 OF 21 MARCH REPORTED THE GOVERNMENT WORK REPORT DELIVERED BY PREMIER LI PENG ON THE OPENING DAY. THE MAIN BUSINESS OF THE REMAINDER OF THE SESSION HAS BEEN REPORTS ON THE 1989 BUDGET (MADE BY MINISTER OF FINANCE WANG BINGQIAN), THE ECONOMIC AND SOCIAL DEVELOPMENT PLAN FOR 1989 (VICE-PREMIER YAO YILIN), THE WORK OF THE SUPREME PEOPLE'S PROCURATORATE (DELIVERED BY THE CHIEF PROCURATOR LIU FUZHI) AND THE WORK OF THE SUPREME PEOPLE'S COURT (DELIVERED BY ITS PRESIDENT REN JIANXIN). THE MAIN POINTS MADE IN THESE REPORTS ARE AS FOLLOWS.
3
THE BUDGET. REVENUE IN 1988 INCREASED 8.6 PER CENT TO 245 BILLION RMB, EXPENDITURE INCREASED TO 253 BILLION RMB.
AT 31 BILLION PRICE SUBSIDIES COST THE EXCHEQUER 4 BILLION RMB LESS THAN PLANNED BECAUSE LAST YEAR SUCH SUBSIDIES TOOK THE FORM OF WAGE INCREASES. THE BUDGET DEFICIT WAS, AS PLANNED,
8 BILLION RMB ACCORDING TO CHINESE METHODS OF CALCULATION WHICH
1
PAGE CONFIDENTIAL
་