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5. I FEAR THAT THIS DISSEMINATION OF APPARENTLY HARDENING
CHINESE VIEWS REILLUSTRATES THE POINT WHICH I HAVE MADE BEFORE
ABOUT THE NEED TO RESPOND QUICKLY TO DENG'S IDEAS BEFORE THEY
BECOME TABLETS OF STONE. THE MORE IDEAS LIKE THIS ARE
DISSEMINATED, THE MORE DIFFICULT IT WILL BE TO SHIFT THE CHINESE
FROM THEM, HUAN'S REMARKS ALSO ILLUSTRATE THE URGENT NEED FOR ECONOMIC EDUCATION, THOUGH I RECOGNISE THE GREAT DIFFICULTIES
YOU FACE IN GETTING DECISIONS IN THE PRESENT SITUATION.
6. THE MOST IMEDIATE WORRY TO MY MIND IS THE IMPLICATION OF THIS
DISSEMINATION OF CHINESE THINKING. IF THE CHINESE ARE PREPARED
TO SPEAK IN THIS WAY TO THE AUSTRALIANS, WHOSE INTEREST IS HARDLY CENTRAL, I WONDER WHAT THEY WILL SAY, FOR INSTANCE, TO THE
JAPANESE. ZHAO'S VISIT THERE STARTS ON 31 MAY. IF THEY GO ON
THIS WAY, IT WILL NOT BE LONG BEFORE THEIR IDEAS BECOME PUBLIC.
THIS WOULD INFLICT VERY SEVERE DAMAGE ON CONFIDENCE AND WOULD BE
QUITE CONTRARY TO ZHAO'S SUGGESTION IN JANUARY THAT NEITHER SIDE
SHOULD IN THE MEANTIME DO ANYTHING TO DAMAGE CONFIDENCE. IT IS,
AS I SEE IT, ESSENTIAL THAT WE TAKE ACTION TO URGE THE CHINESE TO KEEP THE DISCUSSION WITH US, AND IN MORE CONFIDENTIAL CHANNELS. IF WE CAN DO THIS, THERE MAY NOT BE SO MUCH DIFFICULTY IN
GETTING THEM TO ACCEPT THAT THE FALKLANDS CRISIS IMPOSES SOME
DELAY, THOUGH THE LONGER WE LEAVE IT THE MORE DIFFICULT WE SHALL
FIND IT.
7. ONE WAY OF APPROACHING THIS WOULD BE FOR ME TO GET HUAN XIANG
TO DINNER VERY SOON, WHICH I HAD IN ANY CASE INTENDED TO DO, AND
TO TRY TO ESTABLISH FROM HIM THE STATUS OF WHAT HE SAID IN
AUSTRALIA. I COULD THEN SUGGEST TO HIM THE EXTREME DANGERS OF
ALLOWING THESE VIEWS TO BECOME KNOWN TO OUTSIDE PARTIES. DEPENDING
ON THE OUTCOME OF THIS, WE COULD THEN CONSIDER WHETHER AND HOW
TO TAKE THE MATTER FURTHER WITH THE CHINESE AUTHORITIES.
8. I THINK THAT THE SUGGESTION THAT WE STEP UP OUR BRIEFING OF
BUSINESSMEN AND OTHER VISITORS NOW TAKES ON AN ADDED DANGER. IF
THE CHINESE DISCOVER, AS THEY PROBABLY WILL, THAT WE ARE DOING SO, AND PERHAPS EVEN IF THEY DON'T, THERE MUST BE A STRONG POSSIBILITY
THAT THEY WILL SPEAK TO BUSINESSMEN IN THE SAME WAY AS HUAN SPOKE
IN AUSTRALIA. THIS WILL MEAN SWIFT PUBLICITY AND WE SHALL ALL BE
IN THE SOUP.
CRADOCK
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HD/HK & GD
HD/FED
MR DONALD
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