CONFIDENTIAL

5.

Our objective is to build on this change to achieve a return

to legality in conditions which secure wide international

recognition. This will not be easy to achieve. We are very

conscious of the international implications of the Rhodesia

problem and are now engaged in close consultations with other

At the same time we are determined to take fair

account of the progress made inside Rhodesia. We have already

opened contact with Bishop Muzorewa and a senior FCO official

has had discussions with him in the past week.

Governments.

6.

We hope that at the United Nations and in contacts with

other Governments Japan will support our efforts to return

·

Rhodesia to legality as a member of the international community.

Sino-British Relations

If

7. Like the Japanese Government, we welcome the political and

commercial opportunities offered by the relatively pragmatic

and outward looking policies of the present leadership. But

China still faces huge economic and social problems.

current policies fail, China could revert to isolationism and

xenophobia. We have no illusions about the Chinese but will

develop our dialogue with them and pursue a mutually

advantageous relationship. The recent trimming of China's

modernisation and import programmes has somewhat reduced the

opportunities for exports, but represents a realistic recognition

of China's limited foreign exchange rescurces.

Defence Sales to China

8. We see some sales of military equipment as a natural and

constructive part of our developing relationship. We are

prepared to supply Harriers. But We have not yet considered

exactly what categories of equipment would be involved. We

shall of

take the views of our allies and the likely

reaction of the Soviet Union fully into account, and we shall

not rush ahead.

CONFIDENTIAL

19.

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