CONFIDENTIAL
RECORD OF CONVERSATION BETWEEN THE SECRETARY OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS AND THE CHINESE MINISTER FOR FOREIGN TRADE AT THE MINISTRY OF FOREIGN TRADE ON 5 MAY AT 11.00 AM.
Those present:
The Rt Hon Anthony Crosland MP
Mr HA H Cortazzi
HM Ambassador
Mr E AJ Fergusson
Mr R C Samuel
Mr WEH Whyte
Mr C W Roberts
Mr Li Ch'iang
Mr Feng Chin-po
(Deputy Director 3rd Dept)
Miss Chiu Chih-tsien (Desk Officer, 3rd Lept)
Mr Sun Chen-yu
(Desk Officer, 3rd Dept)
Mrs Yu Chien-hua
(Staff Member)
Mr R D Clift
Mr P J Weston
Mr R E Allen
Mrs Yan Hsiao-yan (Staff Member)
1. After an exchange of courtesies Mr Crosland referred to the British economic situation. He said that he thought an upturn in the world economy was now under way and that this was noticeable in Britain too. Our main problem was inflation. This was now coming under control. In the near future agreement should be reached with the Trade Unions on pay restraint for a further year; this, together with the position of sterling, should make British goods more competitive.
2. Mr Crosland said that our bilateral trade was reasonably satisfactory at the moment. Britain had a small trade surplus last year, but in the first three months of this year Sino/British trade was almost in balance. Our desire was to expand trade in both directions. In this connexion the exchanges of missions between Britain and China had been helpful; and we welcomed Chines participation in the Ideal Home Exhibition.in London.
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