CONFIDENTIAL

Registry No.

SECURITY CLASSIFICATION

Top Secret,

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

DRAFT

Minute

To: Minister for Overseas Development

ہے

A

"B

Type 1 +

DSR 11

From

Secretary of State

Telephone No. Ext.

Department

In Confidence

SINC-BRITISH RELATIONS

1. In my minute to the Prime Minister of 30 August 1978,

copied to colleagues, I gave an appraisal of Sino-British

relations. I pointed out then the need to increase our

current levels of expenditure on China, specifically on the

student and language training programmes.

2. I asked the British Council in the first instance to

consider whether they could meet this increase from within

their existing resources. By cuts elsewhere they were able

to find extra money to finance an expanded programme of

educational exchange, including re-inforcing the Embassy in

Feking to cope with the increased level of exchanges.

Shirley Williams set out what we were doing in her minute

of 11 October 1978.

3.

All this assumed that the Chinese would pay the total cost

of the services they requested. The Chinese have now

indicated that they cannot do this, their earlier assurances

to Shirley Williams notwithstanding. The situation is

explained in the latest exchange of telegrams with our

Embassy in leking, of which I enclose copies for ease of

reference. I endorse the Ambassador's opinion that we are

/now

CONFIDENTIAL

Dd 0532000 800M 5/78 HM50 Bracknell

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