CONFIDENTIAL

DSR

↑ DSR 11C

the tenth anniversary of the establishment of Ambassadorial relations between our two countries.

*

?

UK Objectives

(a) To continue the dialogue with the Chinese

on international issues;

3.

(b)

(c)

(a)

mayus

A

To seek further Chinese understanding and cooperation over Hong Kong, and, if appropriate, to put down a marker that

the Termory's future expectations of progress over (this issue] will be aroused by the Prime Minister's visit;

To take such limited opportunities as may occur to further our commercial interests (against a still disc background of economic retrenchment in China);

necessary

If appropriate to discuss the difficulties

which have arisen over the conclusion of certain defence sales projects.

Likely Chinese Objectives

4.

(a)

To expose the Lord Privy Seal to their views on international issues, in particular the need to counter Soviet expansionism;

(b) To reaffirm their interest in close relations

with the UK and the EC;

(c)

To demonstrate that the internal political

situation in China is stable and that current economic policies are sound;

(a) To hear our views on the situation in

Europe (including Poland) and our impressions of the new US Administration and its policies.

CONFIDENTIAL

/Prograinme

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