UNCLASSIFIED
THE EXCHEQUER
CHANCELLOR OF
Economic developments in China and Asia
10. The Chancellor asked whether growth in China could continue
as rapidly as it had in recent years. Sir William Purvis said
that it was proving difficult to keep control of the money supply.
Attempts earlier this year by Zhu Rongji had had to be stopped in
the face of protests from farmers. He expected that growth would
continue though not as fast as at present. The Chinese
Government hoped to get it down to 8-9 per cent.
11.
More generally, Sir William noted that growth in
South East Asia was continuing, despite the slowdown in North America and Europe. This was a sign that activity was being sustained by intra-regional trade; the region was no longer dependent on trade with North America and Europe.
UNCLASSIFIED
-
4
OWEN BARDER