TNAG-1621-FCO40-2235-Relations-between-Hong-Kong-and-China-1987 — Page 152

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TELNO 109

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INFO PRIORITY HONG KONG

INFO ROUTINE WASHINGTON, MOSCOW,

TOKYO

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MY TELNO 90: CHINESE LEADERSHIP

SUMMARY

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26 JAN 1987

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1. DETERMINED EFFORTS CONTINUE TO BE MADE BY THE LEADERSHIP TO REASSURE BOTH DOMESTIC AND INTERNATIONAL OPINION THAT THE CONTINUITY OF POLICY HAS NOT BEEN AFFECTED BY T E RESIGNATION OF HU YAORANG. NONETHELRSS, SIGNS OF POSSIBLE SLOWING DOWN IN SOME AREAS OF

ECONOMIC POLICY ARE BEGINNING TO APPEAR AND THE CAMPAIGN AGAINST BOURGEOIS LIBERALISATION CONTINUES AT A HIGH LEVEL.

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2. SINCE THE ANNOUNCEMENT OF HU YAOBANG'S DISMISSAL, DENG XIAOPING,

ZHAO ZIYANG AND LI PENG HAVE ALL GONE ON PUBLIC RECORD TO REAFFIRM

THAT THE POLICIES OF REFORM AND OF OPENING TZ THE OUTSIDE WORLD

WOULD NOT CHANGE. DENG XIAOPING WENT SOMEWHAT FURTHER WHEN HE ADDED

THAT, IF THERE WAS ANYTHING WRONG WITH THE OPEN DOOR POLICY, IT WAS

THAT THE DOOR WAS NOT OPEN FAR ENOUGH. IN ORDER FURTHER TO REASSURE

FOREIGN INVESTORS AND TO UNDERLINE THE POINT THAT POLICY HAS NOT

CHANGED A SET OF NEW PROVISIONS TO HELP FOREIGN-FUNDED BUSINESSES

WERE PUBLISHED ON 20 JANUARY. EVEN POLITICAL REFORM HAS NOT BEEN

STRUCK ENTIRELY OFF THE FORMAL AGENDA, ALTHOUGH IT IS DOUBTFUL IF

THERE IS MUCH REAL LIFE LEFT IN IT. A COMMENTARY IN GUANGMING DAILY

ON 19 JANUARY REPEATED THAT CHINA WOULD CONTINUE WITH REFORM OF THE

POLITICAL SYSTEM AND A VICE-PRESIDENT OF BEING UNIVERSITY SAID YESTERDAY THAT IT WAS STILL UNDER DISCUSSION.

FANG

3. ON THE OTHER HAND, ALL THE LEADERS STATEMENTS ALSO CONTAINED STRONG REFERENCES TO THE FOUR BASIC PRINCIPLES, AS DOES A SPEECH YESTERDAY BY PENG ZHEN TO THE NPC STANDING COMMITTEE ON THE SUBJECT OF LEGAL EDUCATION. FURTHERMORE, DESPITE A NOTICEABLE SLACKENING OFF IN THE AMOUNT OF SET-PIECE PRESS COMMENTARY ON BOURGEOIS LIBERALISATION AND RELATED ISSUES SINCE THE ANNOUNCEMENT, THE IDEOLOGICAL CAMPAIGN CONTINUES AT A HIGH LEVEL IN OTHER WAYS. LIZHI'S HUMILIATON WAS COMPLETED BY HIS EXPULSION FROM THE PARTY ON 13 JANUARY, (WITH DETAILED PRESS COVERAGE OF HIS OFFENCES) AND THERE ARE REPORTS THAT LIU BINYAN'S DISGRACE WILL BE MADE PUBLIC ON 25 JANUARY. THE LIBERAL' MINISTER OF CULTURE, WANG MENG, WHOSE APPOINTMENT IS SAID TO OWE MUCH TO HU YAOBANG, CAME UP WITH A VERY HARD LINE STATEMENT ON CULTURE ON 20 JANUARY WHEN HE TOLD A CONFERENCE OF CULTURAL BUREAU DIRECTORS THAT THE MAIN TASKS FOR THIS

YEAR WERE TO ENSURE THAT WORKERS IN THE ARTS HAD A FIRM GRASP OF THE / FOL.

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