CONFIDENTIAL

68

SECRETARY OF STATE'S VISIT TO HONG KONG (29-30 JUNE); KUALA LUMPUR (30 JUNE

DELHI (2-3 JULY); BAGHDAD (3-4 JULY)

G

1 JULY);

BRIEF NO 1

CHINA

POINTS TO MAKE

China/UK

Xx518

In

HKK.

026/5

2 5 JUN 979

SIN

уть

1. Wish to encourage outward looking role of present Chinese

Leadership and to build fuller trade and political relations.

Premier Hua to visit Britain from 30 October to 3 November.

Relations good over Hong Kong although immigration remains a problem.

Internal/Economy

2.

Meeting of National People's Congress opened on 18 June.

Deng's profile now lower, but he still provides much of the driving

force for policies. Hua Guofeng remains prominent. Chinese have

stressed to us that reappraisal of economic plans will not affect

basic policies of economic cooperation and trade with other countries.

Defence Sales (DEFENSIVE)

3.

Ready to sell Harrier, though negotiations will take some

time yet.

Will look at other sales as they arise, but will do

Both China and the Soviet

Union appear willing to talk, but no fundamental change in their

relationship is likely.

nothing to upset the strategic balance.

China/Vietnam

4.

However deplorable the Vietnamese invasion of Cambodia, did

not justify Chinese actions in Vietnam. Hope that the Chinese

do not contemplate further incursions, but will seek to settle their

differences peacefully.

China/India (FOR USE IN DELHI)

5.

We believe the more outward looking attitudes of the present

Chinese Leadership should be encouraged and hope a developing

Sino/Indian dialogue can play a part in this.

How do Indians

see the prospects?

CONFIDENTIAL

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