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2

Among other points, Han strongly criticised

He

China's current economic reform policies, describing them as a combination of the old state-controlled system with

the most barbaric features of a market economy. welcomed the party's efforts to curb corruption but expressed doubt whether these would be successful in the absence of a sound legal system.

6.

The press were present in large numbers. I expect Han's remarks to be given wide coverage in tomorrow's

papers.

Manfalken

(K C Walker)

Senior Research Officer 3 September 1993

cc Mrs J Bonavia, CPU

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