GRS 210

TEL 091

EC

29 JAN 1979

RESTRICTED

(5)

No

!

:

PESTRICTED

FM PEKING 270600Z JAN

DESKBY ALL ADDRESSEES 2909002

TO IMMEDIATE FCO

TELEGRAM NUMBER 129 OF 27 JANUARY

INFO IMMEDIATE DOI, DOT, ECGD.

IR VARLEY'S VISIT: ECONOMIC COOPERATION AGREEMENT (ECA).

1. COMMERCIAL COUNSELLOR WAS SUMMONED BY HUANG DEYN, VICE- DIRECTOR, FOREIGN AFFAIRS BUREAU, STATE PLANNING COMMISSION,

ON 27 JANURAY TO BE HANDED THE CHINESE DRAFT OF THE ECA. TEXT IN

MIFT.

2.

HUANG MADE THE FOLLOWING POINTS:

A THE CHINESE WISHED TO KEEP THE DRAFT AS SIMPLE AS POSSIBLE BUT THERE WAS NO OBJECTION TO PINPOINTING DETAILS OF CONCRETE COOPERATION LATER ON. THESE COULD BE WORKED OUT DURING MR VARLEY'S

VISIT IF NECESSARY.

3. THE TOTAL VALUE OF EXCHANGES (ARTICLE 1) WAS STILL OPEN TO MESOTIATION. OUR VIEWS ON THE TOTAL VALUE HAD BEEN TRANSMITTED TO

WANG ZHEN AND OTHER SENIOR MINISTERS CONCERNED. MOUND REPLIED THAT

ON THIS POINT HE WOULD STRESS

(1) THAT MR VARLEY WOULD WISH THE AGREEMENT TO BE SIGNED

BEFORE LEAVING PEKING, AND

(2) MR VARLEY WOULD NOT WISH THE TOTAL VALUE TO BE LESS

THAN US DOLLARS 1 BILLION.

20

13. ON

RESTRICTED

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