CONFIDENTIAL
1
1 CRC 11/89
SITUATION IN CHINA
National People's Congress
in
Premier Li Peng's report to the conference confirmed the Governments decision to slow down reform. It outlined the
inflation, uncontrolled growth, corruption problems stark terms and drew attention to mistakes by the administration up to the 3rd Plenum of the 13th Congress in October 1988. Li called for austerity and restoration of central control in key areas. Reform would continue but subject to constraints. In particular prices would be held down. The social consequences of unrestricted growth must be watched carefully. Law and order was a problem The speech was generally pragmatically, rather than ideologically,
conservative in tone.
2.
A number of supporting reports emphasised this cautious approach. There were some attempts to argue the opposite case including the plea of the Governor of Guangdong that his provinces special position should not be jeopardised by excessive recentralisation.
3.
The general mood of the Congress reflected Li's tone. Nevertheless, and despite calls beforehand for "unity", there were indications that the attitude of delegates retained some of the freer approach of the 1988 Congress. This appeared particularly in pressure for a more democratic voting system in the meetings, the occasion being the discussion on a separate
legal system for the Shenzhen SEZ.
CONFIDENTIAL
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機密
MARIA JA PETERSENFRI<IN»«I<3<3<20><20>
***7475762009JOGIJON (NZ