Daylight thrown on Tiananmen

IN our review of stockbroker Salomon Brothers' latest analysis of China, published yesterday, it was reported that the company was concerned that the reaction of the population to the measures being imposed by the government could result in another Tiananmen square disaster.

Salomon economist Andrew Freris points out that his report stated that circumstances now are different from those in 1989.

Mr Freris yesterday said that his report explained it was understandable that there were fears that the Chinese might face another Tiananmen if the economy worsened considerably and the stop phase was abrupt or prolonged.

However, it stressed that this kind of preoccupation was missing some of the important changes that had happened in both the political and economic institutions of the country.

''The run-up to the Tiananmen incident was closely associated with extensive questioning of the role of the Communist Party in the power structure of the country, as well as demands for democratisation.

''The current economic cycle has witnessed none of these, and indeed, the Communist Party has undertaken the risky role of assuming the mantle of reform and high growth, given that the deregulation impetus has come from the top,'' he reported.

Also, inflation at present is not as high as at its peak during the first quarter of 1989.

Although this was not an argument for complacency, it argued for greater leeway, and perhaps time for the authorities to take action, he added.

However, he concluded: ''The action taken so far, however, has been slow in coming and very measured when it has.''