1.8.

not.

Joint6

pint Declaration and the Chinese Basic Law for Hong Kong, it should

Examining such issues within the context of the requirement for Hong Kong's "high degree of autonomy" is very important. The bilateral U.K.-PRC discussion is important too. On 16th June, 1990, Zhao Dongwan, the Minister of Personnel, was reported in the People's Daily as saying that it is "necessary to further reform the PRC personnel system, set up a social insurance system, improve services, establish arbitration institutes and strengthen government management and guidance". RIPA may be able to help in this.

Some experts looking at the purpose of political reform in China have brought the issues down to 3 categories: the separation of party and government; the devolution of power to local authorities; and the streamlining of the administrative structure, all of which are central to any genuine dialogue on the relationship between law and administration, all of which in one sense or another I touched on in Beijing. We have to face facts, however: In the PRC at present a process of "peaceful evolution" is considered to be "bourgeois liberalisation". Whether this causes a difficulty to the project, only time will tell. The main point is that such difficulties have to be anticipated rather than shied away from. Otherwise, there is no point in this exercise; and therefore no point in anybody putting money into it. However, I believe that the PRC side will respond positively to these ideas, if they are put to them constructively. They are sensitive topics, but I believe that it is essential to follow up now on the agreement with my interlocutors that the best way forward is to approach the issues productively. There is a need, however, not to make unwarranted assumptions about current attitudes in the PRC. One year after the mass killing in Tiananmen Square and other parts of Beijing, these are reflected in the following sentiments:-

"By examining the present situation and recalling the events last

year, people will more profoundly understand that the central authorities' decision to resolutely quell the rebellion was entirely correct and necessary. Last year's turbulence, resulting from the international macroclimate and the domestic microclimate, reflected the sharp antagonism of bourgeois liberalisation against the four cardinal principles and was an acute struggle between infiltration and anti-infiltration, between subversion and anti-subversion, and between peaceful evolution and counter-peaceful evolution. By plotting the turbulence, hostile forces at home and abroad were attempting to overthrow the leadership of the CCP, subvert the socialist system and turn China into a dependency of developed capitalist countries."

"At the critical moment with the country's fate hanging in the

balance, the party and government had no choice but to resolutely quell the rebellion. If last year's rebellion had not been quelled, China would be in great chaos today. If chaos occurs in China, it will affect peace and stability not only in the

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