TNAG-1343-FCO40-1773-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Beijing-fo-1984 — Page 123

CONFIDENTIAL

Brief No 9

PRIME MINISTER'S VISIT TO CHINA AND HONG KONG, 18-21 DECEMBER 1984

CHINA INTERNAL:

BACKGROUND NOTE

1. The mood of the present Chinese leadership is more self- confident than it has been at almost any time since the foundation of the People's Republic of China in 1949. China's willingness to deal with the outside world over the last few years stands in remarkable contrast to the inward-looking tendencies of the recent past. A new vigour infuses many aspects of Chinese economic life. For the first time in many years modernisation appears to have

real chances of success.

2. Much of this new spirit of enterprise is attributable to the dynamic leadership of Deng Xiaoping. It is essentially his vision of the future that the Chinese are now striving to implement. His basic aim is to change China into a modern developed nation in the forefront of the international community. His means include:

The

a) Political stability. The continuous upheavals of the Cultural Revolution and of Mao's last years placed immense strains on the Chinese society and economy. Deng ended the forced involvement of the population in these campaigns. public witch-hunts that used to follow the disgrace of political opponents have been replaced by a quieter but no less resolute approach. Deng has thus tackled one of the primary breeding grounds of the factionalism endemic in Chinese politics. At the same time, under his leadership the Party has corrected, or at least acknowledged, many of the injustices it perpetrated in the past. However, distrust of the Party by intellectuals is still strong.

b) Political and institutional reform. To help preserve the system against any recurrence of the Cultural Revolution, which brought near total chaos, Deng has sought to revive and strengthen China's political institutions. Decision- making is no longer concentrated in the hands of the Party, although it remains the final arbiter. The legal system, long in disuse, has been revived.

CONFIDENTIAL

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