DECENTRALISATIONAs early as 1957 the Chinese leadership used decentralisation as an instrument to put central policy into effect under local conditions 'more swiftly and intelligently'.' The provinces gained control over light industry and nonstrategic heavy industry as well as the allocation of labour, materials and financial resources.~ Those enterprises remaining under central control of the ministries established dual central-local leadership. Control over profits of decentralised state enterprises remained with the central government. Thus decentralisation meant 'a division of labour with policy-making power residing with the centre but administrative power residing with the provinces and lower-level units'.' In the history of the People's Republic of China we can observe the recurrent pattern of decentralisation and subsequent tendencies of re-centralisation. The reforms of the Four Modernisations were also introduced via decentralisation.This time the focus was on a system of responsibility. For the first time the peasants themselves were responsible for production as well as productivity. In a second move industry received similar decision-making power, excluding the control over the procurement of supply, marketing and the disposition of labour.' Many of those in favour of decentralisation criticised this lack of power. Decentralisation was based entirely on economic considerations. For the first time decision-making power was passed on to the single danwei.

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An account of how the author and Geoff travelled together to China several times. Forty years of friendship and common interests are fondly remembered.

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