TNAG-0741-FCO40-945-Relations-between-China-and-Hong-Kong-1978 — Page 109

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CONFIDENTIAL

SECTION I:

CHINA AND THE WORLD

Present Resources

DSR 11C

2. The population of China, now around 900 million,

is a quarter of the population of the world. The area

of the country is 3.7 million square miles, just larger

than the United States, and contains major mineral

resources, including oil. The Gross National Product of

China is estimated to have been $323 billion in 1976.

the sixth largest in the world. Despite the small

proportion of her total area suitable for agriculture,

she produces almost enough food for her population.

However, China remains a poor country (the estimated per

capita GNP in 1976 was $360).

Government Policy

3. The Communist Party of China assumed power in 1949.

It was Mao's 'great achievement to restore unity and order

to China after a generation of turmoil and war. Central

planning, coupled with the organisation of the peasants

in effiçient rural communes, created the framework for

China's economic development, which provides full employ-

ment, education and health services, together with a

standard of living which though low is adequate for the

basic needs of the Chinese people. This was not achieved

without considerable costs in human terms, including the

strictest regimentation of people's lives. There were

/also

CONFIDENTIAL

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