TNAG-2749-FCO40-3964-Economic-situation-in-Hong-Kong-1993 — Page 64

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

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ра набыты

144

127766

MDLIAN 1710

TO:Cr

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FM HONG KONG

TO PRIORITY FCO

TELNO 1572

OF 060511Z OCTOBER 93

INFO PRIORITY PEKING

HKB090/

6 i 1993

Political Manoeuvring and China's Economy Statements by Jiang Zemin and Li Langing

1.

Today's edition of the South China Morning Post has an interesting article by Willy LAM drawing attention to recent statements by Jiang Zemin and Li Langing which seem to run counter to the regime's efforts to counter inflation and bring the economy under control. According to Lam, Jiang Zemin and Li Langing were reported in the official media and press earlier this week as saying that the Government's principle objective remained quote sustained, high-speed and healthy development unquote. Lam quotes Jiang Zemin as repeating to provincial Leaders, Deng Xiaping's remarks earlier this year about quote seizing the opportunity; speeding up development; and concentrating forces to build up the economy unquote.

2.

Lam argues that these comments amount to a call for moratorium on Zhu Ronggi's efforts to bring the economy under control. He points out most of the 16 objectives in the programme to quote boost macro-level adjustments and controls unquote have not been met and that China's economy remains overheated and Largely unregulated. He explains this in terms of a political paralysis as rival factions attempt to position themselves for the succession battle to come.

3. We are sending the full text of the article to HKD and to Janet Rogan in Peking. We would be interested in Peking's views on Lam's analysis.

PATTEN

YYYY

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