TNAG-2044-FCO40-2914-Visits-from-China-to-Hong-Kong-1990 — Page 118

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MDTTAN 8742

BEEN TAKEN ON WHERE IT WOULD BE BUILT NOR HAD THE TWO SIDES YET AGREED ON THE COST OR ON THE RATE OF INTEREST ON A SOVIET LOAN FOR IT. IN SHORT IT WOULD BE QUITE SOME WHILE BEFORE IT WAS BUILT. I ASKED TIAN FOR HIS IMPRESSION OF THE INTERNAL SITUATION IN THE SOVIET UNION. HE REPLIED: 'CHAOS'. HE HAD BEEN ROUND THE SHOPS AND SAID THAT THERE WAS NOTHING IN THEM AND THAT EVERY OFFICIAL ONE MET SEEMED TO HAVE HIS OWN VIEW OF ECONOMIC POLICY. THERE WAS NO AGREED STRATEGY. I ASKED WHETHER GORBACHEV HAD TOLD LI PENG HOW HE WOULD TACKLE THE ECONOMY. TIAN SAID THAT IT GORBACHEV HAD A STRATEGY, HE HAD NOT TOLD THE CHINESE OF IT.

4. TIAN'S REMARKS ON THE SOVIET UNION WAS VOUCHSAFED WITH REMARKABLE FRANKNESS AND DIRECTNESS, ALTHOUGH THE VIEWS THEMSELVES ARE NOT PERHAPS ESPECIALLY SURPRISING. INSOFAR AS HONG KONG IS CONCERNED, ALTHOUGH TIAN CLEARLY KNOWS NOTHING NOW, I WOULD EXPECT HIM TO LEARN FAIRLY QUICKLY.

SIGNED: W G EHRMAN

WILSON

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