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UK sales of certain military equipment
would we have to calculate the possible
Soviet retaliation against specific
British interests; it would be a matter of
weighing this risk in each case against
the corresponding political and commercial
benefits.
We have already agreed guide-
lines on this question in discussion
with Cabinet colleagues.
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5. The recent successful visits to
China by David Ennals, Shirley Williams
and Edmund Dell have already put more
impetus into the relationship. I
believe that we should build on this.
The main features would be:
(a) Further high level political contacts.
I myself hope to go there towards the
end of the year and have invited the
Chinese Foreign Minister here. You
may also wish to consider taking up
your outstanding invitation to China.
Before long we should invite
Chairman Hua or Vice-Chairman Teng
Hsiao-p'ing. This would bring the
level of our exchanges more in line
with those of France and FRG.
(b) An intensive and carefully planned
effort to exploit the considerable
commercial openings. Edmund Dell
has already inuted to you on this.
/(c)
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