4.
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THE FIRST SESSION OF TALKS AT NO.10 WAS DIFFUSE AND DIS-
APPOINTING BY OUR STANDARDS, BUT WAS, I BELIEVE, THE NECESSARY
PRICE TO PAY. WE HAD TO LISTEN TO THE CHINESE ON THEIR VIEW OF
THE WORLD AND WE WERE JUDGED, AND HIGHLY ASSESSED BY THEM,
IN TERMS OF THE FIRMNESS OF OUR RESPONSE ON SOVIET POLICY. IN MANY WAYS THIS WAS THE YARDSTICK. THE CHINESE TOLD ME AFTER-
WARDS THEY KNEW THEY COULD SPEAK MORE FREELY IN LONDON THAN
IN PARIS OR BONN AND THEY WERE DELIGHTED TO BE ABLE TO DO SO.
5. BY THE SECOND ROUND AT NO.10 RESULTS WERE COMING THROUGH. FOR EXAMPLE, THE LAST MINUTE CONCESSION OVER GATWICK, WHICH MADE THE AIR SERVICES AGREEMENT A REAL ONE AND NOT STILLBORN,
OWED SOMETHING TO THE VISIT BY THE CAAC REPRESENTATIVE TO THAT AIRPORT, BUT ALSO MUCH TO THE CHINESE JUDGEMENT OF THE POLIT-
ICAL SUCCESS OF THE VISIT.
6. ON BILATERAL TRADE ISSUES THE BROAD PATTERN IN THE MIN- ISTERI AL TALKS WITH HUA AND YU WAS THAT WE PUT A SERIES OF SPECIFIC PROPOSALS AND THE CHINESE REPLIED IN GENERALITIES. 1 AM NOT TOO DISTURBED BY THIS. NEITHER YU NOR A FORTIORI
HUA WAS PREPARED ON SUCH AN OCCASION TO ENTER INTO GREAT DETAIL.
BUT YU MADE CLEAR TO ME LATER THAT HE HAD NOT FINISHED HIS
PRESENTATION AND THAT DETAILED POINTS SHOULD BE PURSUED LATER WITH VICE-MINISTERS. IN THE SECOND ROUND OF PRIME MINISTERIAL
TALKS WE WERE ALSO ABLE TO RE-EMPHASISE SOME OF OUR SPECIAL INTERESTS AND TO DRAW ENCOURAGING RESPONSES, EG ON RAILWAYS, EXPLOITATION OF CHINESE MINERALS, COAL, OIL, AEROSPACE AND DEFENCE SALES GENERALLY.
7. ON DEFENCE SALES, NEITHER YU NOR HUA RESPONDED ON HARRIER THOUGH THEY WERE BOTH GIVEN A CUE. BUT HUA WAS CLEAR AND POSITIVE ABOUT MARINE ENGINES AND THEIR INTEREST IN TANK ENGINES. HE SHOWED SPECIAL INTEREST IN THE ROLLS ROYCE PROPOSALS FOR COOPERATION INVOLVING PROVISION OF ENGINES IN CHINESE CIVIL AIRCRAFT. THIS LAST HAS GREAT COMMERCIAL POTENTIAL AND I HOPE WILL BE PURSUED VIGOROUSLY. HE AND HIS DELEGATION WERE SPECIALLY PLEASED BY THE PRIME MINISTER'S GENERAL ASSURANCE THAT SHE HAD
ASKED MANY OF HER MINISTERIAL COLLEAGUES TO ATTEND THE SECOND ROUND OF TALKS AND THAT IN WHATEVER FIELD THE CHINESE SOUGHT OUR HELP WE WOULD DO OUR BEST TO PROVIDE IT. THIS WILL MEAN, INTER ALIA, THAT THE CHINESE WILL EXPECT A PARTICULARLY POSITIVE ATTITUDE OVER MANY OF THEIR REQESTS FOR COOPERATION ON DEFENCE- RELATED MATERIAL.
BENTIAL
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18. THE