DSR 11 (Revised)

CONFIDENTIAL

DRAFT:

FROM:

minute/letter/teleletter/despatch/note

PS (Mr Holmes)

DEPARTMENT:

TEL. NO:

SECURITY CLASSIFICATION

Top Secret

Secret

Confidential

TO:

A J Coles Esq

10 Downing Street

Restricted

Unclassified

PRIVACY MARKING

SUBJECT:

}

.In Confidence

SIR Y-K PAO

CAVEAT....

TYPE: Draft/Final 1+

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We understand that the Prime Minister is

travelling to Sunderland on 12 March to launch a

ship built for Sir Y-K Pao. It may be that she will

use the occasion again to raise the question of the

proposed visit to Britain by one of the Chinese

Vice Premiers, Gu Mu, who has had overall responsi-

bility for certain foreign trade and investment

questions. This is one of a number of outstanding

invitations to Chinese leaders and, as I explained

in my letter of 22 February, the ball is in the

Chinese court. One reason why Sir Y-K Pao seems to

be particularly eager that Gu Mu should visit

Britain in May is so that Gu's wife can launch

another of Pao's ships. HM Ambassador in Peking

has recently recommended that we should not at

present specifically renew the invitation to Gu Mu,

partly because he may prove to be a victim of the

current pruning of the Chinese Government machinery.

Some of his functions have already been transferred

/away

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