CONFIDENTIAL
DSR 11C
16. Japan is important to China, particularly in the
trade field. The somewhat ambivalent nature of the
two countries' relationship, in which the Japanese
still see the Chinese as a potential threat while in
Chinese eyes the Japanese have figured successively as inferiors, aggressors and rich relations, will continue to prevent either party from developing any strategically
significant dependence on the other, as will Japan's
membership of COCOM and her need to maintain some balance
between Moscow and Peking. On the other hand they are
natural economic partners, China with oil and other raw
materials, and Japan with highly competitive technology
and advanced industrial goods.
17. In Indo-China, the Sino-Soviet split has led to
with China competing for influence
-
the Russians, who have the advantage of being able to
offer greater amounts of aid and technical assistance.
Soviet influence appears to predominate
in Vietnam (with which China is in dispute over certain islands in the South China Sea) and Laos, while China appears stronger in Cambodia (though there is a strong will to independence in all three). Further afield,
the members of ASEAN are creating a nucleus for regional
The Chinese claim to.
cooperation and self-reliance.
favour this and, in
/so
CONFIDENTIAL
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