Question:

Sir

Alan

Was that not because of Gorbachev's visit? Donald: It was partly that, and partly

because the Asian Development Bank meeting was held on 4th May; I had the very curious task of sitting with Chris Patten in the Great Hall of the People with the students in the Square, hearing the President of China talking about the market economy. It was a very rum and bizarre situation.

Mr Robert N Wareing: It is clear from what both Sir Richard and Sir Alan have said that they judge the political stability of China as being something which we can look forward to in the foreseeable future. The changes that are taking place in China with economic reforms are often compared to what has been happening in the former Soviet Union. Would you not agree that the political stability which is likely to remain, notwithstanding future Tiananmen Squares (we hope not, but it is possible), notwithstanding the suppression in Tibet, the Muslim riots which we have recently heard about in Qing Hai Province, is not China's strength that she is introducing the economic reforms cautiously and in a managed fashion, and that therefore despite our very strong feelings about human rights abuses in China, that maybe the Chinese are on the right course for the sort of economic changes which most of us would want to see?

Sir Alan Donald: I should like to make four points on that. I agree with you that the methodical and gradual way in which the Chinese are introducing their reforms is a good sign. There are four critical differences between the former Soviet Union and China. The first is that the Russians made a complete mess of their economy; it was a colossal economic failure, whereas for the last 15 years China has been an economic success. Generally speaking governments which raise living standards and improve their way of life do not suddenly collapse. got quite a good recipe.

They have

A very old philosopher said that the way to govern a country is first to make the people prosperous;

I think Deng-Xiaoping is following that line.

The second point is this: that the rural population, which 75 per cent of the Chinese people live in the country

is huge

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