TNAG-1458-FCO40-1982-Relations-between-Hong-Kong-and-China-1986 — Page 130

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MEMORANDUM

CONFIDENTIAL

REFORM IN CHINA

1. It is nearly eight years since the Third Plenum of Eleventh Central Committee marked Deng Xiaoping's political

triumph over the heirs of Mao Zedong and the initiation of his programme to modernise and reform China.

In this

memorandum, I shall outline what has taken place, identify

some of the main outstanding problems and offer some

speculation on its prospects.

Why Reform?

2. The aims of reform are simple. Like many other Chinese,

Mao Zedong included, Deng Xiaoping wishes to see China

achieve what he regards as its rightful place in the community

of nations. This means a modernised China, dependent on or beholden to no outside power. Of the possible ways to achieve

this goal, the Maoist path had proved a dismal failure.

"New

socialist man" was as far as

as far as ever from appearing and the

economy was in a mess. The population, cowed by years of vicious political struggle which had reached into every corner

of society, had little interest in work and no incentive to

try harder. Even the more humane version of Maoism adopted by

Hua Guofeng had come badly unstuck. His "little leap forward" towards the "Four Modernisations" had left the economy on the brink of disaster. Some radical rethink was necessary and in

Deng Xiaoping the Chinese were lucky enough to find a leader

with the vision and resolution to make a distinct break with

the past.

CONFIDENTIAL

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