wished to expand into Vietnam. They had said that the Vietnamese had never given way to anyone. The Chinese were content that the Russians should send equipment down to Hanoi on the railway which was an extension of the Chinese railway, and did not seek to interfere.
He
(e) As regards Hong Kong he thought that the Chinese welcomed the connection with Europe, and with Britain in particular, that they gained through Hong Kong. thought that the Chinese felt closer in temperament to the British than to the Americans or the other Europeans. They accepted that Hong Kong was useful to them and Mr. Heath doubted whether they would press the question of representa- tion from here. When he compared Hong Kong with Shanghai for example he thought that the Chinse would find the former very difficult to digest if they ever got control of it. In answer to a question from Mr. Callaghan, Mr. Heath said that as the Foreign Office knew he had wondered initially whether it would be right to make some response to Chinese requests for representation but having carefully gone into the matter and heard the Governor's arguments he had concluded that it was right to stand firm.
(£) The Chinese did not accept Dr. Kissinger's thesis that the Russians were going to get lined up to destroy China. Their relations with Russia were not good, but they did not seem to think that Russia would attack.
(g) As regards Europe, it was obvious to the Chinese that the European countries should get together. Mr. Heath thought that China's doubts about the policies of the present British administration related mainly to European questions.
(h) As regards the aircraft industry Mr. Heath said that the Chinese had ordered 30 more Tridents. They were keeping their options for Concorde open. He had already reported to Sir Kenneth Keith about Speys.
(i) In answer to a question from Mr. Callaghan, Mr. Heath said that he did not think that the Chinese thought that the present government was pro-Russian and anti-Chinese.
(j) Mr. Callaghan asked whether any modification of present policy towards China was necessary. Mr. Heath had no suggestions to make.
cc Mr. Wilford
(A, A. Acland) 14 June 1974
CONFIDENTIAL