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DSR 11C

to enter into discussions with the Chinese before

the mid-1980s in order to reach an understanding

which will maintain business confidence.

(b) Trade Although taking only 0.7% of total

British exports in the best recent year (1973),

trade with China is an important part of British-

Chinese bilateral relations, and represents big

sales opportunities for important British

industries. The following sections of this paper

examine potential British civil and defence sales

against the background of other, wider interests.

(c) Interests shared with other Western countries

The Sino-Soviet split has on balance improved the

ability of the West to counter the increasing

power of the Soviet Union, in Europe and the world

as a whole, to act against its fundamental interests.

It will continue to be a broad aim of Western policy

to foster the continuance of the split. On the

other hand, the rise of Chinese power in the years

ahead will also pose threats to Western interests,

particularly in the Third World.

mitigated in the short term by China's preoccupation

with her own internal economic development, but it

should also be an important Western aim to increase

China's material interest in good relations with

These may be

Western countries in the long term.

In particular,

/while

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