TNAG-1850-FCO40-2625-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 4

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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A: SITUATION IN CHINA

WHAT ARE THE LATEST DEVELOPMENTS IN CHINA?

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Hardline group who now dominate Chinese leadership appear to be consolidating their control. Peking gradually returning to some

semblance of normality although it is firmly in the grip of Martial

Law authorities. Outside Peking wave of demonstrations and protests appear to be tailing off. Shanghai is reported to be quiet with no new demonstrations planned.

Clampdown beginning to bite in earnest with reports of numerous arrests and denunciations of dissidents. Best known dissident, Fang

Lizhi, has taken refuge in US Embassy. Official propaganda media, now fully in control of leadership, are flooding country with their version of events; clearly at variance with what actually happened.

Pressure on foreign journalists is being stepped up. British journalists are finding it increasingly difficult to go about their

work without harassment.

Last survivors of men who made Chinese revolution are now in

effect running the country. To bolster his authority Deng Xiaoping has had to appeal to other veteran leaders. Prime Minister Li Peng appears merely to speak in their name. President Yang Shangkun and

the PLA have increased their influence.

Impact of hardline political backlash on policies of economic reform is uncertain. Deng maintains that policies of reform and opening to outside world will continue. But some further slowing down of reform process appears inevitable. Foreign business

confidence in China will not easily revive.

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