TNAG-1622-FCO40-2236-Relations-between-Hong-Kong-and-China-1987 — Page 193

AUSTRALIAN HIGH COMMISSION

INWARD CABLEGRAM

CONH

CON LDEN I

CONF LDEN B

4-0.8J19328

L A L

MISTAKES WOULD BE MADE AND CORRECTED,

IT WAS IMPORTANT TO ACKNOWLEDGE THAT THERE WAS NO MODEL 10 FOLLOW AND 11 WAS ESSENTIAL CONTINUALLY TO SUM UP EXPERIENCE.

THE

RECENT EXHORTATIONS CALLING FOR FRUGALITY AND HARD WORK AND REAPPEARANCE OF EARLY SLOGANS ABSOLUTELY DID NOT IMPLY ANY NASCENT ISOLATIONISM OR RETURN TO THE POLICY OF SELF-SUFFICIENCY,

THOUGH SIMILAR TO THOSE USED AT EARLIER PERIODS, THE CONTEXT AND THEIR APPLICATION HAD CHANGED.

THESE SLOGANS WERE CURRENTLY BEING PUT FORWARD AGAINST A BACK- GROUND OF EXCESSIVE CONSUMPTION AND OVER-INVESTMENT IN FIXED ASSETS AND UNDER THE CONDITIONS OF DEVELOPING A COMMODITY ECONOMY.

PRESENT CONSUMPTION LEVELS HAD RISEN FASTER THAN PRODUCTION FOR SEVERAL YEARS AND IF THE PATTERN OF RISING EXPECTATIONS WAS NOT CHECKED THIS WOULD PLACE A HEAVY BURDEN ON ECONOMIC DEVELOPMENT. CHINA WOULD NOT BECOME A WELFARE STATE.

THERE WAS A REAL NEED TO RESTRAIN CONSUMPTION, 80TH PERSONAL AND

IN UNPLANNED INVESTMENT.

ALTHOUGH COMMITTED ABSOLUTELY TO IMPROVING THE PEOPLE'S STANDARD OF LIVING IT WAS ESSENTIAL THAT EXPECTATIONS NOT EXCEED REAL POSSIBILITIES AND SUCH IMPROVEMENTS COULD NOT BE TO THE DETRIMENT OF THE DEVELOPMENT OF OVERALL PRODUCTIVE CAPACITY.

IT WAS, THEREFORE, NECESSARY TO RESTRAIN EXPENDITURE AND TO URGE THRIFT AND HARD-WORK AS PREREQUISITES TO SUSTAINED GROWTH.

BUT THESE EXHORTATIONS SHOULD BE UNDERSTOOD IN THIS LIGHT AND AS IN NO WAY IMPLYING CONDITIONS OR PRACTICES ONTAINING IN THOSE KARLIER PERIODS.

UNIVERSITIES (UNDERLINED)

9. STUDENTS WHO TOOK THE LEAD IN DEMONSTRATIONS WOULD NOT BE

INVESTIGATED OR PUNISHED.

STUDENTS AND NON-PARTY FACULTY MEMBERS WOULD BE ORGANISED TO STUDY THE FOUR PRINCIPLES, THOUGH NOT TO EXCESS.

THIS STUDY WOULD BE COMBINED WITH OTHER STUDIES AND SO NOT

INTERFERE WITH THE CONTENT OF THEIR COURSES.

LI SAID THAT EVEN IN THE PROPAGANDA DEPARTMENT THEY MET ONLY ONE

CON

COND

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DDENEILA I

DEN 1. L

JUVVAT VE

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