CONFIDENTIAL
PRIME MINISTER'S MEETING WITH HUANG HUA 11 OCTOBER
BACKGROUND
1.
The purpose of Mr Huang's visit is to hold wide ranging discussions with the Foreign and Commonwealth Secretary on international topics and bilateral relations. It is a long delayed return visit for that paid by Mr Crosland to Peking in May 1976. Mr Huang will also be seeing Mr Healey, Mr Varley and Mrs Williams.
2.
The visit is taking place in the wake of important changes in China which offer us substantial opportunities. The Chinese are looking to the West for the expertise and technology which will enable them to achieve the four modernisations of agriculture, industry, science and technology, and national defence. They are also pursuing a more assertive foreign policy. Their longer term objectives differ from ours but in the short term our practical interests coincide in important areas. British exports to China have expanded rapidly in recent months and the development of co-operation in the technology and educational field is likely to pay useful dividends. The much improved atmosphere has also helped over Hong Kong where the Chinese
are now being very co-operative: they appear to be as anxious to maintain the status quo as we are.
3.
The Chinese attach particular importance to Ministerial visits as a signal of good relations and Mr Huang will doubtless repeat the invitation to Mr Callaghan to visit China. We expect visits to Britain by Vice Premier Wang Chen in November as Mr Varley's guest and Vice Premier Fang Yi next year at Mrs Williams' invitation. Premier Hua Kuo-feng has been quoted by the French as looking forward to a visit to London; if we are to keep up with our European competitors we should not lose the opportunity of estending a formal invitation
through Mr Huang.
CONFIDENTIAL
/Defence Sales