The economic problems of the world over the past few ars have been matched by difficult political problems. Concerted efforts will be needed in many countries before the world. pulls out of recession. Se too Much political statesmanship will be needed to build upon President Sadat's
bold initiative in the Middle East. In Africa too much
Wänden að diplomatic skill will be required to resolve the problems of Southern Africa and in the Horn. Closer to
home, in Europe, HMG are working hard to build a realistic and efficient European Economic Community and to safeguard the security of all the nations of Europe through the maintanance of a sound defensive alliance and a determined
search for genuine detente.
DEFENSIVE POINTS
Harrier
.
5. HMG have noted Vice-Premier Wang Chen's recent remarks about Chinese interest in acquiring Harrier aircraft. No doubt the next step for the Governments will be for them to look at any detailed proposals which may emerge from discussions between British Aerospace technical experts and their Chinese colleagues.
Rolls-Royce Marine Turbine Engines
6.
HMG hope that the Chinese will continue to talk to Rolls-Royce about the type of propulsion units that would best suit China's naval requirements.
Hong Kong
7. The present informal arrangements to settle any local issues affecting Hong Kong work well. As Mr Crosland said when he visited China in 1976, we see no need for these to be changed.
BACKGROUND
UK/China Relations
8. • Mr Li Chiang is the most senior Chinese Minister to visit the UK since 1949. He has been a full member of the Communist Party Central Committee since 1969 and is accompanied by Mr Yuan Pao-hua, the senior Vice-Minister of the State Planning Commission. Personality notes are attached. The last full ministerial visits to the UK were by the then Ministers of Foreign Trade, Mr Pai Hsiang-kuo (January 1973) and of Foreign Affairs, Mr Chi Peng-fei (June 1973). The last UK Minister to visit China was the
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