C ON FIDENTIA L

DSR 11C

7.

We would not expect the Chinese to want a detailed formal agenda,but would need to agree with them on the main topics to be discussed, with the bilateral issues to be

expect covered in the Second Session. We would anticipate that (in addition to the Foreign and Commonwealth Secretary), the Secretaries of State for Trade, Industry, and Defence

There may may wish to be present for the Second Session. also be parallel talks with Foreign Minister Huang Hua, and also possibly (on economic subjects) with Vice Premier

Yu Qiuli, whose position as Minister in Charge of the State Planning Commission gives him particular influence on decisions affecting the Chinese economy, externally as well

as internally.

8.

The Soviet Union will be watching Hua's visit with close attention. Although the Chinese and the Russians have agreed to start talks about their relations in September, those relations are likely to remain hostile. The Chinese may well hope that Hua's visit to Western Europe this autumn will in effect "play the European card" against the Russians by encouraging the view that there exists a form of tactical, anti-Soviet alliance between China and Western Europe. This is a point on which the Russians have shown themselves to be extremely sensitive and they will be watching for any sign that the West Europeans, and the United Kingdom in particular,

willing to side with China against Russią.

། 4 ོ

are,

We should It is not wait

statements diveiny she

Kerefore, take care to avoid peaholic isit unnecessary to

which might unnecessarily

damage our relations with the Soviet Union, which are

currently somewhat improved.

१.

I enclose at Annex A a list of suggested

objectives for the visit, and at Annex B a list of suggested briefs.

RA3

18/ix

}

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