CONFIDENTIAL

7.

DSR 11C

to monitor developments carefully.

We must keep our

eyes open and remain broadly in step with like-minded countries. There are risks to be taken; but I agree

that we should respond positively and work for as close a working relationship with China as it is realistic to

hope for.

11.

I am copying this despatch etc.

Dd 0532000 400 M 5/78 HMSO Bracknell

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