TNAG-1622-FCO40-2236-Relations-between-Hong-Kong-and-China-1987 — Page 136

COUNTRY ASSESSMENT PAPER: CHINA

SECTION I: INTRODUCTION

1. China, which contains a quarter of the world's

population, is a country of ancient culture, vast size and

abundant resource, much still uncapped. The erratic course

of China's policies from the late fifties to mid-seventies

failed to consolidate the achievements of the early years

of Communist rule. Under the leadership of Deng Xiaoping,

China nas committed herself to an ambitious modernisation

programme designed to strengthen the country economically.

This has involved an opening to the technology and finance

of the developed world and also to wider cultural

influences.

China is a nuclear power and a permanent member

of the UN Security Council. Although in many respects still

backward, she is already a major factor in international

relations and will grow in importance. Britain has a

particular interest in ensuring the smooth handover of Hong

Kong in circumstances which will give Hong Kong the best

chance of remaining a free society and a capitalist

economy and, Following the Joint Declaration on Hong Kong in

1984, UK/China relations have attained a new breadth and

warmth. Chinese domestic policies are centred on the

economic modernisation programme. The goal set in 1982 to

quadruple the value of agricultural and industrial output by

2000 is well on target but achievements so far have not led

to a breakthrough in improving the efficiency or

*

technological level of the industrial sector

as

a whole.

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