NOTHING TO BE WRITTEN IN THIS MARGIN

(iii)

GENERAL

Chinese comment on international trade and

monetary questions tends to analyse them in marxien

terms and to speculate on "the impending collapse

of capitalism". fawicipation

Only a greater degree of Chinese

speculation in world affairs is likely to

alter their tune. If asked, however, about the

prospects for monetary and trade negotiations within

the IMF and GATT, the Secretary of State might say

Cuire

that they now look more hopeful. There seemelto be

a general desire at the IMF's annual meeting to press

ahead with constructive talks on international

monetary reform. The negotiations within GATT

wait upon the US elections and a Cogressional mandate

to the Administration, but we have no reason to suppose

that negotiations will not start in earnest in

1973. If the

бо

Chinare wons to discuss inare ancestone in fizera dareil may could be invited t8

Though insir Emberry in

in London.

CONFIDENTIAL

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