CONFIDENTIAL

Possible reactions of our allies/the Soviet Union/South East

ian countries

In considering defence sales to China, as with defence

iles to any other country, the Government will bear in mind

le views of other governments. The development of our

lations with China is not directed against the Soviet Union.

ssible effect on detente

We do not believe that the supply of Harriers to China

uld affect the strategic balance. Nor do we believe that

by other sales which might be approved need affect East-West

lations or detente to which we continue to attach importance.

is COCOM approved any defence sales to China?

It has been the practice of successive Governments not to

veal details of exchanges within the context of COCOM.

To

inction effectively COCOM, to which we continue to attach

iportance, needs to maintain the convention whereby its

scussions remain confidential.

y don't we seek the agreement of our COCOM partners_to rrier sales in advance of concluding the contract?.

I share the desire of My hon Friend to avoid delay.

wever he will know that these matters have traditionally

en treated as confidential.

ng Kong

We enjoy very good relations with the Chinese Government er Hong Kong and share with them an interest in Hong Kong's

ntinuing stability and prosperity. The Governor of Hong

ng's visit to China earlier this year was very successful

d further improved our mutual understanding over matters of

mmon interest.

migration from China into Hong Kong

The current rate of immigration from China into Hong Kong

a matter of very serious concern to the Hong Kong

vernment and to ourselves. We have made clear our concern the Chinese Government and have sought their assistance. e Chinese Government are sympathetic and have ke appropriate steps to limit the rate of infl .We shall

ntinue to discuss the issue with them in a spi t of

operation.

ndertaken to

Alkhough the numbes of immigrant How have declined recently hem are over mnaceup tably) high.

CONFIDENTIAL

Vietnamese

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