TNAG-0839-FCO40-1048-Relations-between-Hong-Kong-and-China-1979 — Page 9

FE

CONFIDENTIAL

F2014/1

1: JUL 1979

133

MEETING OF THE NATIONAL PEOPLE'S CONGRESS, 1979

SUMMARY

1.

1

#

12 JUL 1979

An excelliul despatch, will worth reading;

+26.7/25/

Mr. Willig 26.7 in which NK 12 well 20/7

30/2

The National People's Congress (NPC) met between

18 June and 1 July. (Paragraph 1)

2.

Since the last NPC

It is a rubber stamp, but reflects leadership thinking on political and economic questions. (February/March 1978) economic modernisation has become the priority task of the nation. Stability of policy was threatened

by the Vietnam conflict, the "democracy movement" among the young and the realisation of the need for economic readjustment. Opponents of Deng have tried and apparently failed to overturn reformist policies. (Paragraphs 2

3.

S

6)

Hua Guofeng's report on the work of the government was a frank and practical account of the need for economic reform, strengthened "socialist democracy" and a formal system of law. Foreign affairs were not a major theme. The ideological content was relatively slight. (Paragraphs 7

4.

Ap

10)

Economic reports indicated that growth rates will drop

Consumer and defence

after two years of economic rehabilitation. spending will however accelerate.

Earlier, over-ambitious targets

are apparently abandoned. The import of foreign technology and the use of foreign capital remains a firm policy. (Paragraphs 11 - 12)

CONFIDENTIAL

15.