TNAG-1622-FCO40-2236-Relations-between-Hong-Kong-and-China-1987 — Page 212

CONFIDENTIAL

56

Mr Masefield

Mr Gillmore

FROM: Richard Fletcher-Cooke

Far Eastern Department

DATE: 24 February 1987

CC:

In South 1/3 in hayden/002) $12/1 for poult of the

Rulinser

1 the despatele 13

CG 27/2

CHINA: ANNUAL REVIEW FOR 1986

PS/PUS

Mr Boyd

Sir D Wilson

Mr McLaren, o/a

HKD

Planning Staff

Research D

Hub ozoli

нив

Sir P Cradock, No 10

Assessment Staff

OT2, DTI

020

1CMAN227

1.

I submit Sir R Evans' Annual Review for 1986,

which is being printed for general distribution. The

Department will send a substantive reply incorporating

any comments addressees might have on the review or this

submission.

2. I agree with the broad judgements of the despatch,

but believe that a more detailed analysis of recent

events may be useful, in order to assess more accurately

the likely way ahead.

China Internal Situation

3.

With good cause, Sir R Evans describes the

resignation of Hu Yaobang as China's biggest political upheaval since 1978. Nevertheless Hu's resignation does

not reflect a fundamental change of direction within

China, but more a "shake out" needed to relieve certain

FC4AAK

CONFIDENTIAL