World Notes CHINA

In recent months China has appeared to pull back on its economic and political reforms, prompting China watchers to question whether Leader Deng Xiaoping, 82, is still in charge. Secretary of State George Shultz flew into the Middle Kingdom to see for himself during a ten-day Asian trip and found the Chinese bent on convincing him that only the pace of reform had slowed. At one point, however, Deng showed that the best defense was a good offense. He tweaked Shultz by alluding to Iranscam and the Tower report, saying, "By engaging in politics and by running the government, one has to meet with some troubles and difficulties. We have also had a similar case." Shultz insisted that Reagan had smoothed his "rough patch" by "dealing with it swiftly."

Laughing heartily, Deng said, "As regards the troubles here, they're almost finished, but maybe it will take years. They existed for a long time."