by olls Royce to China, the Chinese showed interest in buying the marine version of Spey as a gas turbine
propulsion unit for naval use. However this is still under development and will not be available even for the Royal
Navy for a number of years. Meanwhile the Ministry of
Defence are working with Rolls-Royce to produce a package, based based on Tyne, Proteus or Olympus engines, which would meet the Chinese requirements and be easier to argue through
сосом.
Harrier.
12.
On 4 November, during a meeting with the business delegation led by Lord Roll, Vice-Fremier Wang Chen said
that China "intends to acquire the Harrier". No formal
proposals have been made to HMG and the Chinese have not yet given British aerospace any detailed information of their interest in Harrier. The American attitude will be
crucial. They are aware of Chinese interest but until we
know more about Chinese requirements we cannot usefully talk to the Americans. The Chinese may well expect Mr Li's
visit to take things forward, but they will understand that Ministers cannot commit themselves without knowing more about what the Chinese want and discussing the matter with
our allies.
Chinese Internal Politics
13. Following the purge of the 'gang of four in October 1976, the new Chinese leadership under Chairman Hua Kuo-feng has discarded much ideology and adopted a more pragmatic approach towards economic modernisation. This is closely associated with Vice-Premier Teng Hsiao-ping who was rehabilitated for the second time earlier this year and was appointed a member of the 5-man Standing Committee of the
Central Committee.
Hong Kong
14.
Any local problems in Hong Kong affecting China are generally solved through meetings between officials and the local representatives of the New China News Agency. The Chinese asked for an official presence in the Hong Kong when Sir Alec Douglas-Home visited Peking in 1973. But they were told later that year that HMG did not consider this necessary and this was reiterated by Mr Crosland in 1976. There have been reliable indications that the new Chinese
leadership, like its predecessors is content with the
/status quo