3.

6.

I suggest therefore that the basic policy we should recommend to the Prime Minister should be to build so far as possible on what has already been achieved and ensure that future efforts are properly coordinated. Significant results should flow from the negotiation of the Science and Technology Agreement; we have resuscitated the discussions about a Shipping Agreement and an Aviation Agreement; defence sales have already been examined by Ministers and policy lines laid down; but we shall need to continue to promote an expansion of trade with a considerable element of high technology transfer to it. We should also need to consider expansion of other exchanges, Parliamentary, cultural, sporting, and political. Parts 2 and 3 of the proposed Agenda pose key questions (incorporating points already made by Lord Goronwy- Roberts) and itemise action which might be taken for the future.

15 August 1978

Lichard Sammel

RC Samuel

Far Eastern Dept

cc:

Sir A Duff

Mr Hibbert

Mr Murray

Mr Crowe

Mr Scott

Mr Cradock

DOHETRENT TAL

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