14-JUL-1993 16:31
JAMES LEE
8494536249
P.09
TRANSCRIPT B
MR. ALASTAIR GOODLAD COMMITTEE 14 JULY 1993
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· FOREIGN AFFAIRS SELECT
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to telling local banks to stop lending or the managers would be
arrested and shot, which is rather an extreme version of monetary
control but can Sir Robin tell us perhaps the true perspective of
how he sees the situation unfolding?
SIR ROBIN MCCLAREN:
I think the Minister has given a very good summary, Chairman, but
I might just add to it on one or two points.
The problems which the Chinese economy currently faces are really
problems of success, they are the result of the very rapid growth
which we have seen in the period since the last attempt to slow it
down was ended and particularly since Mx. Deng Xiaoping went on
his famous southern expedition and told everybody that the
socialist market economy was the thing and that they must all copy
the Chunjun (phon) special economic zone, calls which have been
taken up with alacrity right round the country.
The overheating that has resulted was predictable and predicted.
As you say, it has caused particular problems in the financial
area. That is why I think Mr. Jurong Ji (phon) has been given
the task, which I imagine will be a temporary one because in
addition to all his other responsibilities of overseeing the
economy he has been given the task of taking on the Central Bank,
the People's Bank of China. The problems are serious and the
question really is whether the government is going to be able to
bring them in check.
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