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DSR 11C

5. For China the main point to be resolved is whether the

Prime Minister should visit Canton on her way from Shanghai

to Hong Kong. In my letters of 26 and 31 August we

recommended that she should. We have also not received the

Prime Minister's agreement that there should be a function

at Shanghai (the 1800 reception) and that the Ambassador

should host it (see my letter of today's date on that

subject). The visit proposed earlier to the Peking Cancer

Research Institute has been dropped because the Professor

who has been instrumental in promoting cooperation in this

field will not be in Peking at the time. Finally, we

cannot decide whether the Prime Minister should visit the

Shanghai Museum or a Chinese destroyer on the morning of

25 September until we know whether the contract between

Contract Vosper Thorney croft/British Aerospace for destroyer modern-

isation has been signed.

6.

The only addition to the outline programme for Hong Kong

as agreed by the Prime Minister in early August is the

inclusion of a short meeting between the Prime Minister and

a delegation of Urban Councillors on Monday, 27 September,

in support of which John Holmes wrote to Tim Flesher on

27 August. In your reply of you said that the Prime

Minister had indicated that she would prefer to talk to

businessmen rather than receive a delegation from the Urban

Council. There is, in fact, already ample opportunity in the

programme for her to meet businessmen, e.g. at the lunch.

/they

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