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NOTHING TO BE WRITTEN IN THIS MARGIN
CONFIDENTIAL
5.
(b) An intensive and carefully planned effort to
exploit the considerable commercial openings.
Edmund Dell has already minuted to you on
this.
(c) A positive response to Chinese requests for
student and language training. Shirley
Williams proposes to write to the Chinese
Government in September with specific proposals.
(d) Negotiation of a Science and Technology
Agreement.
This should also have commercial
benefits for the UK. The Chinese agreed in
principle to Shirley Williams' proposal for
such an agreement.
(e) Some measure of defence sales.
We shall have
to accept that the Chinese regard our attitude
to arms sales as an indication of how seriously
we take our relationship with them.
6.
Because of their administrative structure, and
because they are a state trading country, the Chinese
will expect to handle much of our expanded exchanges,
including commercial activities, through Government
channels. This will call for increased expenditure
on our part. Specifically the student and language
training programmes will require extra funds for the
/British