Reference........
government not receiving enough money from the regions in the form of tax, the government was running a deficit budget and was therefore issuing more money, causing inflation. After the Third Plenum, a new tax system had been agreed to combat this, with some taxes going to local government, some to central government and some shared. There would also be reform of financial institutions in order for Central government to have a more macro economic control of the issuing and stabilizing of currency to avoid inflation.
8.
Dr Bristow-Smith thanked Tong Jiemin for this information and renewed an invitation to Madam Wu Yi, the Minister for MOFTEC to visit Britain, which Tong Jiemin promised to pass on.
9. Tong Jiemin reciprocated by extending an invitation from the Vice-Minister of MOFTEC Gu Yongjiang for Lady Chalker to visit China. Dr Bristow-Smith agreed to convey this invitation to Lady Chalker and ended the meeting by hoping good relations could continue between China and UK.
Michaufelein
Michael Nevin
Far Eastern Department WH240
270 2928
15 December 1993
Cc:
Mr Kerfoot, BE Peking Mr Murray, DTI, XAAA2D Mr Goodall, DTI, ECTR3A
fed02/GEN/moftecmeeting
CODE 18-77