A.

CONFIDENTIAL

FC040/1446

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2

examine this issue with some urgency. The Prime Minister proposes to visit China in September (exact dates to be fixed) and it would help to make the visit a success if we were by then in a position to announce some decision on aid or soft loans. As Peking point out this need not be entirely altruis- tic, but could help secure a share of projects for UK firms (in an increasingly competitive market).

6.

I should be grateful for comments.

28 January 1982

Markshish

Mark Elliott

Far Eastern Department

CONFIDENTIAL

1

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