CONFIDENTIAL

maintained, Britain will need to look at a closening

relationship with China in a wider international context

which embraces other countries of immediate importance

to the UK. There is no question of undervaluing

China's importance; but we need both to be coolly

realistic and to keep the balance in our overall

relationships right.

3.

Irrespective of the way the Chinese order their

society, there is no alternative to treating as a world

power a country which is a permanent member of the UN.

has perhaps one-quarter of the world's population in a

territory the size of the United States and traditions

and resources which make her formidable even against

the background of enormous demographic problems.

Given the great differences in China's culture and her

history of self-containment, it is not surprising that the

West's, and Britain's, relations with her in the past

have often been unhappy. It is not long since China

effectively renounced an alliance with the country which

is still our main adversary. Memories of Korea and

Vietnam die hard; you yourself need no reminding of the

horrors of the Red Guard years. This makes the

friendlier face which China is now turning to the West

the more welcome and I believe we should respond to it,

while remembering that profound differences between

China's view of the world and our own are likely to

persist. As I see it "friendship" to the Chinese is

a diplomatic instrument, not an emotional commitment;

we cannot, for example, bexpected to play out our own

ole in

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