GR 600
CONFIDENTIAL
CONFIDENTIAL
FM PEKING 16123OZ APR 84
TO IMMEDIATE FCO
TELEGRAM NUMBER 757 OF 16 APRIL
INFO IMMEDIATE HONG KONG, WASHINGTON, HOSCOW
FOLLOWING FROM PRIVATE SECRETARY
SECRETARY OF STATE'S VISIT: FIRST DAY
3
264
837/2
HKK 27/2 OPY
17 LPR 1984
1. THE FIRST 90 MINUTES OF THE SECRETARY OF STATE'S OFFICIAL TALKS WITH FOREIGN MINISTER WU XUEQIAN THIS MORNING WERE TAKEN UP WITH BILATERAL AND INTERNATIONAL ISSUES. ATMOSPHERE WAS FRIENDLY, BUT LITTLE OF INTEREST EMERGED. THE TALKS ON HONG KONG BEGAN AT MID-MORNING: WE SHALL BE REPORTING THESE SEPARATELY.
BILATERAL RELATIONS
2. BOTH SIDES EXPRESSED SATISFACTION AT THE SUCCESSFUL CONCLUSION OF THE NEGOTIATIONS OVER THE CONSULAR AGREEMENT, WHICH WILL BE SIGNED TOMORROW. THE SECRETARY OF STATE REFERRED TO
THE LIST OF BRITISH CLAIMS WHICH WAS GIVEN TO THE CHINESE IN DECEMBER. WU SAID THAT THESE WERE UNDER STUDY, WHICH WOULD TAKE SOME TIME. HE ALSO SAID THAT THE CHINESE SIDE WOULD HAVE ITS
OWN CLAIMS TO PRESENT.
3. WU DESCRIBED CHINESE ECONOMIC POLICY AT LENGTH, AND REFERRED TO THE RECENT DECISION TO OPEN 12 COASTAL CITIES TO FOREIGN INVESTMENT. HE HOPED THAT MORE BRITISH FIRMS WOULD FOLLOW BP'S LEAD AND ENTER INTO JOINT PROJECTS. ON GUANGDONG, HE ASKED THAT AGREEMENT ON THE CONTRACT SHOULD BE EXPEDITED. THE SECRETARY OF STATE RESPONDED BY UNDERLINING THE IMPORTANCE WHICH MINISTERS ATTACHED TO THE GUANGDONG PROJECT AND TO THE OTHER OPPORTUNITIES WHICH CHINA OFFERED FOR JOINT PROJECTS. HE UNDERTOOK TO DRAW THE CHINESE DECISION TO OPEN UP CITIES TO FOREIGN INVESTMENT TO THE ATTENTION OF THE MINISTERS CONCERNED IN LONDON.
INTERNATIONAL ISSUES
4. THE SECRETARY OF STATE DESCRIBED OUR APPROACH TO THE
COMMUNITY, INCLUDING THE EFFORTS TO REACH A SATISFACTORY SETTLEMENT ON THE BUDGET QUESTION. HE ALSO OUTLINED OUR POLICY
ON EAST-WEST RELATIONS AND ARMS CONTROL, EMPHASISING THAT WE REMAINED HARD-HEADED IN OUR APPRAISAL OF SOVIET INTENTIONS, BUT THAT WE WISHED TO INCREASE THE RANGE OF OUR CONTACTS. WU SAID
CHINA HAD A SIMILAR APPROACH TO RELATIONS WITH THE SOVIET UNION. HE DESCRIBED THE STATE OF THE BILATERIAL SINO SOVIET TALKS AT VICE FOREIGN MINISTER LEVEL. ALTHOUGH THERE HAD BEEN SOME IMPROVEMENT IN TRADE AND MINOR BILATERAL MATTERS, THREE OBSTACLES REMAINED: AFGHANISTAN, CAMBODIA, AND SOVIET TROOPS ON THE CHINESE BORDER. CHINA HAD ASKED THE SOVIET UNION TO REDUCE THESE TROOP LEVELS TO THE LEVELS OF THE KRUSHCHEV ERA, THERE WERE 8 SOVIET DIVISIONS IN MONGOLIA WHEREAS THERE HAD BEEN NONE IN KRUSHCHEY'S TIME. THESE POSED A DIRECT THREAT TO PEKING.
CONFIDENTIAL
/ACCORDING.