Mr. Clift, HKGD for advice on the Minister's comments

On the future

comments pl. KJM614 Ha

MOTION FOR THE EASTER ADJOURNMENT

CHINA

SPEAKING NOTE

Sino-British Relations:

1.

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Sept can

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comething about the Chinese

Lord Carrington's visit to China Statement

Relations are very good as confirmed by Lord Carrington's visit. He found a useful measure of agreement with the about Chinese leaders on international issues. In recent years China has been playing an increasingly active and

constructive role in the world.

Sino-British Trade

2.

We welcome this.

aiverton

haming

confidence

During the current period of economic readjustment in China foreign trade is unlikely to develop as rapidly as we had hoped. But the long term prospects are very good. We hope British companies will take a long term view and maintain links with China. Lord Carrington was assured by the Chinese leaders that they valued us as trading partners.

Defence Sales

3.

We want to expand our contacts with China in all fields. We will consider Chinese requests for defence equipment on a case by case basis. We are willing in principle to sell certain items of defence equipment, subject to our international obligations.

Claims Against China

4.

Registration of certain claims against China has begun. Lord Carrington has again reminded the Chinese of our wish for a settlement. We hope to begin negotiations in 1982, following completion of the registration.

Emergency Aid for China

5.

We sympathise with the Chinese difficulties.

We are

glad the EC has decided to respond, albeit modestly. We have no plans to make a bilateral contribution. A formal appeal has in any case only just been launched by the UN Disaster Relief Organisation.

6.

Invitations to HM The Queen and the Prime Minister [If pressed]

I understand that Lord Carrington was asked to convey invitations to HM The Queen and the Prime Minister to visit China at a mutually convenient time. No dates have been

discussed.

17.

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