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link a solution of the border problem to China's demands
for withdrawal of Vietnamese troops from Cambodia and
Laos. Chinese have proposed that talks resume on 25 June
in Peking.
10. Both sides have accused each other of provocation
along their common border. The Chinese have repeated
their threats of the possibility of further "punitive
actions" against Vietnam (although there are no obvious
signs of preparation for this). The conflict of interest
between China and Vietnam is a deep seated and bitter one,
and a resolution of their differences in the near future
is unlikely. The Chinese have taken in 230,000 refugees,
mostly ethnic Chinese, from Vietnam.
China/India
11. China's relations with India have been cool since the
early sixties (Sino-Indian war, close Chinese ties with
Pakistan and Indian with Soviet Union). Following Chinese
overtures Foreign Minister Vajpayee visited China in
February 1979. This coincided with China's incursion into
Vietnam, and he cut it short. However the Indian
Government, despite deeply rooted suspicion of China's
Long term aims and warnings to others to proceed cautiously,
still seem prepared to try to improve their bilateral
relations. The Indians decided last year to buy the
Anglo-French Jaguar. They are negotiating for up to 20
Sea Harriers for the Indian Navy. On the possible sale
of Harrier to China; the Indian Government has not reacted
publicly, but Mr Desai told the High Commissioner during
China's incursions into Vietnam that he did not know how,
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