II.
OTHER BUSINESS
A.
VISITS
RESTRICTED
On the subject of Mr Parkinson's visit, Mr Thompson said that Mr Man zie felt that the French discussions on Guangdong Nuclear would have developed to a degree where Mr Benjamin's presence in Peking would be useful; Mr Manzie himself could not easily go.
Mr McLaren said we should use ministerial visits to smoke out the Chinese in the most effective way. He personally thought decisions would be delayed indefinitely. Quoting from a Xinhua bulletin he cited reasons why Guangdong Nuclear was precisely the sort of project that would be under close scrutiny.
Mr Wilkes then asked for the Group's guidance on the possible visit of his Parliamentary Under-Secretary of State, Mr Wiggins, to China. Mr McLaren said the FCO could ask for the Ambassador's views on the visit and possible timing, but opposition in No. 10 would in any case be more difficult to overcome.
Asked about the Foreign Secretary's visit, Mr McLaren said that provisionally there would be two sessions with the Minister of Foreign Affairs as well as with Deng Xiaoping and Hu Yaobang. Colonel Jenkins said that MoD would wish to discuss with the FCO outside this meeting the question of a defence sales official travelling also. Mr Dick then summed up the group as being against any further ministerial visits in 1981.
B. LEASING
Mr Field said that a review was being carried out into the extent to which ECGD could support leasing contracts; the paper could not be issued prematurely. Mr Dick replied that the paper should be made factually correct to reflect existing policy and issued as soon as possible. Mr Field agreed to supply the necessary redraft in two weeks but reference to ECGD financial support would have to be omitted.
C.
FUTURE OF WORKING GROUP
accepted his own view
Mr Dick said that Sir Kenneth Clucas
that the group had outlived its purpose but felt that his undertaking to Sir Michael Palliser precluded winding it up. Mr McLaren said that some means of co-ordinating activity on the trade front was necessary; the group's meetings help to focus the co-ordinating activity in between. Mr MacLennan said that there was too much co-ordination already; also they were not concerned with the Hong Kong aspects discussed here. Miss Baker said that the Treasury did not consider the group essential. Mr Robinson contrasted the absence of a group for other currently more thriving markets. Mr Thompson said that PEP had doubts about the merits of discussions in the group so long as co-ordination continued elsewhere. Mr Frost said that the ODA considered the meetings were dispensable. Mr Dick summing up said that the general feeling, with the exception of the FCO, was that the Working Group was redundant; it was agreed that the frequency of meetings would be reduced the next one would be in mid-year.
F
III. HONG KONG: THE FUTURE OF HONG KONG AND THE RELEVANCE OF 1997 - IMPLICATIONS
FOR UK TRADE AND INVESTMENT
Mr Clift said that the Chinese position was based on a combination of nationalism and legalism. To say that China did not recognise the treaties was an over- simplification; she regarded them as unequal. China received many benefits from the present situation: 30/40% of foreign exchange was derived from Hong Kong: use
2
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