CONFIDENTIAL

DSR 11C

Vietnamese refugees

11. We condemn the dreadful and inhuman actions of the

Vietnamese government in expelling the refugees.

We

welcome the proposed UN Conference on refugees.

Will Britain take in more boat people?

12. We have undertaken to make a significant

contribution either in taking refugees or in contributing. But our social and economic circumstances

must be taken into account.

China/Vietnam

13.

The first round of talks between China and Vietnam

ended inconclusively on the 18th of May; a second

round began on 28 June. We hope that the talks will

Lead to a mutually acceptable solution to their

differences. We are glad that arrangements have

already been made for an exchange of prisoners.

Visit of Premier Hua Guofeng

14. We look forward to receiving Premier Hua in this

country at the end of October.

Duke of Kent's visit to China

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15. His Royal Highness the Duke of Kent's visit to

China was highly successful: as the first visit by a

member of the Royal Family it had a particular

significance and reflected the healthy state of our

relations.

Commercial relations

16. As I said in the House on the 18th of May, we

are looking for a major expansion of our trading

relationship with China. We have an Economic

Cooperation Agreement which provides for two way trade

worth about £7,000 million up to 1985.

Cultural/Educational/Scientific Exchanges

17.

. The Government attach great importance to our

exchanges in the cultural, educational, scientific

CONFIDENTIAL

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Od 427265 250M 5/77 905275

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