Edition: U.S. / Global


Published: November 10, 1989
(Page 2 of 2)

The announcement of Mr. Deng's resignation came on the closing day of a long-anticipated meeting of the Communist Party Central Committee. The meeting also approved a statement of economic policy, endorsing the current plan of austerity and retrenchment and saying that it will last at least through 1991. The statement repeatedly referred to ''deepening the reforms'' but did not specify any new policies to carry this out.

The tone of the communique was somewhat more enthusiastic about economics and development than some other recent statements from the leadership. In particular, the communique said that the basic policies of the special economic zones and open areas on the coast would not change, and it did not emphasize central planning or a crackdown on the private sector, as other documents have.

In particular, the Central Committee called for emphasis in four areas: first, tightening credit and consumption; second, readjusting the industrial structure and promoting agricultural production; third, rectifying various companies that are engaged in speculation rather than production, and fourth, raising technological standards and practicing austerity while trying to increase production. A 4-Day Meeting

The announcement of the Central Committee meeting, which lasted four days, did not indicate if there was any discussion or decision about the ousted party leader, Zhao Ziyang. Mr. Zhao, a proponent of further political and economic liberalization, was ousted in May after he refused to crack down on the student protests.

''If they were going to strip Zhao of his party membership, this would have been a time to do it,'' said a China analyst in the United States. If such an action had been taken, it probably would have been announced, and the apparent failure to punish Mr. Zhao further may reflect a defeat for the hard-liners who wanted to carry on the attack.

The meeting, known as the fifth plenum of the 13th Central Committee, also approved a series of other changes in the military commission. These will substantially increase the power of President Yang Shangkun and his family.

Mr. Yang, an 82-year-old longtime associate of Mr. Deng, was named to succeed Mr. Zhao as first vice chairman of the Central Military Commission. Mr. Yang's former post as secretary general of the commission will be filled by his younger brother, Yang Baibing, 69. The younger brother was also named to a post on the Central Committee's secretariat, which is in charge of much of the party's daily work. Sometimes Called a Rival

President Yang is sometimes described as a rival of Mr. Deng, and he is often accused of trying to build an empire within the military. But Chinese officials with access to high-level information say there is little antagonism between the two men, and that some of those who are commonly referred to as relatives of the President - like Chi Haotian, chief of the general staff, often described as the President's son-in-law - are not related after all.

The committee also named Liu Huaqing, 73, a deputy secretary general of the military commission who is known for his technical background and efforts to modernize the army, to be its other vice chairman. The only obvious casualty of the reshuffle was the other deputy secretary general, Hong Xuezhi, 76, who lost his position but was not named to any new post.

While Mr. Deng has given up his post as chairman of the party's Central Military Commission, he technically will remain head of the Government's Central Military Commission until the National People's Congress meets next March.

Photo of Deng Xiaoping congratulating Jiang Zemin, who was appointed to replace Mr. Deng as chairman of the Central Military Commission. (Agence France-Presse)