TNAG-2915-FCO40-4190-International-support-from-European-countries-regarding-the--1993 — Page 30

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2.

CHINA

Present:

Sir J Coles

Mr Hum

Mr Clark, RAD

Mr Greenwood, FED

INTERNAL/ECONOMIC REFORM

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Russian Delegation as before

an

13. Mr Solovyev said that the recent 14th Party congress

had established a new "leadership of reform" and had

reaffirmed that the reform process and the open-door policy

would continue apace. Jiang Zemin's election as President

at the NPC was not just a matter of protocol. It meant that

Jiang Zemin was now the foremost politician in China. It signified a change in Party-State relations and was

element of political reform. China was set to become the

largest economic power in the region, but there were a

number of problems threatening stability; these included

possible overheating of the economy, disproportionate economic growth between the coastal and inland provinces,

increasing unemployment, closure of loss-making state-owned

enterprises etc. However the "new" leadership were

pragmatic and reformist and were likely to give economic reform fresh impetus. Contrary to expectation economic

reforms were leading to some significant political changes. For example the Central Committee International Liaison Department did not now deal with foreign policy, only with inter-party relations. Foreign Policy was now the preserve

These sort of changes had occured in the FSU

and were a big achievement for the Chinese. There were

of the MFA.

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