CONFIDENTIAL
claims.
responsibility or likely to be offset by Chinese counter-
On the other hand, the first-rate industrial
presentations during the visit and the political mileage
to be derived from it should now improve our commercial
prospects. This applies particularly to the defence sales
field, where Premier Hua must have been deeply impressed
by the Prime Minister's personal commitment. No contracts
were completed or signed during the visit; nor had any
been expected. However the two agreements signed, the ASA
and the Cultural Agreement, should, in their own ways,
bring benefits to both sides.
PROSPECTS FOR SINO-BRITISH RELATIONS
12. The visit, both to Britain and to Europe, was an
undoubted success in presentational terms. The Chinese
were highly gratified by the attention paid to them.
They will probably feel some sense of obligation towards
Whether we can turn this to any real advantage is
questionable.
us.
The lines between us are well drawn.
We share certain common interests, principally Hong Kong
and trade. We share certain common responsibilities,
principally those of nuclear weapon states and of
permanent Security Council membership. We have certain
common perceptions of international affairs, principally
with regard to the threat of Soviet expansionism and of
Cuban and Vietnamese adventurism.
But, as this visit has
demonstrated, we are still a long way apart on many issues
of close concern to us.
DENTIAL
/13.