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...reacted to the buying frenzy by ordering a classic economic dampdown. Beijing temporarily closed some banks to halt withdrawals, limited the size of some retail purchases and raised interest rates to soak up some of the money that the country has been printing at a record rate. Moreover, the Politburo, headed by party General Secretary Zhao Ziyang, Deng's handpicked heir apparent and a firm advocate of reforms, decided to abandon further price decontrols this year. Even Deng appeared chastened by the eruption. Said he: "We have been bold enough...

Author: /time Magazine | Title: Communism Too Far, Too Fast? | 10/10/1988 | See Source »

Vietnamese officials have long believed that Hanoi was misled by former Secretary of State Henry Kissinger into expecting at least $3 billion in U.S. assistance after the war. The Politburo may now hope to squeeze some of that money out of the U.S. by alternately cooperating and dragging its feet on the MIA issue. Viet Nam seemed to be following that cynical strategy last July when it abruptly halted plans for a joint excavation of crash sites. The move may have been provoked by Washington's refusal to agree to low-level diplomatic ties until Viet Nam completes the withdrawal...

Author: /time Magazine | Title: Viet Nam The Wound That Will Not Heal | 10/10/1988 | See Source »

...biggest winner in last week's Kremlin reshuffle was the man who orchestrated it, Mikhail Gorbachev. He not only installed himself in a newly invigorated presidency but also retained his post as Communist Party General Secretary. Of the twelve voting members of the ruling Politburo, all but three have now been appointed by Gorbachev. Yet at 57 he remains the group's youngest member, a reminder of just how remarkable his rapid rise to power has been. Other major moves -- up, down and sideways...

Author: /time Magazine | Title: Winners And Losers | 10/10/1988 | See Source »

Yegor Ligachev, 67. As recently as last August, the beefy former Siberian party chief felt secure enough to engage Gorbachev supporters on the Politburo in a slinging match over party ideology, his special field. In a move that seemed designed to isolate a Gorbachev rival without firing him outright, Ligachev was transferred to the thankless post of overseeing the Soviet Union's troubled agricultural sector. It remained unclear whether he would retain his No. 2 Politburo ranking. Demoted...

Author: /time Magazine | Title: Winners And Losers | 10/10/1988 | See Source »

Vadim Medvedev, 59. A brainy culture specialist who rose through the ranks of the Leningrad party organization, Medvedev since 1983 has headed the Central Committee's Science and Education Department. His appointment as a voting member of the Politburo, over the heads of seven nonvoting members waiting in the wings for such a summons, is little short of astonishing. In effect, moreover, he was given Ligachev's ideological portfolio. Promoted...

Author: /time Magazine | Title: Winners And Losers | 10/10/1988 | See Source »

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