TNAG-1458-FCO40-1982-Relations-between-Hong-Kong-and-China-1986 — Page 109

CONFIDENTIAL

politically-prescribed priority areas for any

under-developed society which sets itself demanding goals. Under such conditions, the unleashing of market forces is not the

answer.

6. I wonder if you overestimate the degree to which the despatch underestimates the political difficulties that stand in the way of the reform programme. The despatch and memorandum are after all attempting an exposition of the reforms as an economic programme and political problems are dealt with in this context rather than in their own right. I also wonder whether there is the difference between the Ambassador's view and your own which you allude to in paragraph 5 of your submission. There is indeed likely to be a temporary loss of impetus following Deng's departure but this would not necessarily involve changes in the essentials of the Reform.

f. Clash

P Clark

Far Eastern Section

RD 21

ОАВ 2/126

210 6218

6 October 1986

CC

Mr Hallett

Economic Advisors

HKDL

PLANNING STAFF

ASSESSMENTS STAFF, CABINET OFFICE

OT2,DTI

CONFIDENTIAL