7.

SECRET

2

If pressed by Chinese, helpful if Mr Heath could say:

a) Deng's remarks passed to FCO;

b) FCO always interested in further indications of Chinese

thinking on this subject; no doubt studying Deng's comments;

c) since Ministers have been much occupied with the Falklands

Yerisis they have been unable to give this matter as much

close attention as it deserves;

d) Matters can be taken further during the Prime Minister's

visit.

SECRET

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