CONFIDENTIAL
DSR 11C
7. In the trade field, China's modernisation plans
offer scope for substantial contracts and the UK is
determined to secure its share of these. I recognise
that 1979 is a key year for China's future development
plans, and the UK's own prospects in China call for a
tough, flexible and imaginative response.
I need not
rehearse the background to my agreement that our exports
should include some defensive equipment. But I am
determined that the Chinese should not see us only as
arms suppliers; we must continue in dealing with the
Chinese to draw their attention to the need that our
trading relations be balanced and
element.
include a high civil
8. I also believe it right to respond to China's revived
interest in the West by exploiting the other possibilities
open to us in the educational, scientific and cultural
fields.
A China whose rising generation is influenced
to a greater extent than in the past by Western traditions
and practices should be in less danger of misunderstanding
us; in time she may become more susceptible to the whole
range of Western ideas and more willing to accept the
complex and constantly developing forms of international
cooperation. The Science and Technology Agreement
and our expanding educational contacts show the direction
in which we can move; initially perhaps more, to China's
and should seek to benefit than our own; but we ourselves may benefit more as
time goes on.
9.
19.
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