TNAG-1711-FCO40-2389-Future-British-Consulate-General-in-Hong-Kong-HMS-Tamar-1987 — Page 18

CONFIDENTIAL

CHINA: GENERAL BACKGROUND NOTE

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

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

The erratic course abundant resource, much still untapped.

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 has 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.

2. 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 technologicaì

level of the industrial sector as a whole. The programme

PRSAAJ

CONFIDENTIAL