*

4.

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DSR 11C

Against this background, we see the main non-Hong

Kong objectives of the talks with Premier Zhao as:

i) to establish a good personal rapport (which can be

developed further when Premier Zhao visits Britain in

1985);

ii) to demonstrate our wish for closer and more

substantive relations; and in particular

iii) to lay the foundation for a marked increase in

Britain's market share of Chinese imports (presented in

stake in Chinese modernisation); and

terms

iv)

to underline the strategic importance we attach to

an outward-looking and economically reformist China.

5.

To these ends, if the Prime Minister agrees, we

propose to provide the following briefs:

A) A Hong Kong brief, to be prepared by the FCO;

B) A bilateral political brief covering current

bilateral issues, to be prepared by the FCO;

C) A brief on trade as a basis for discussion of how to

increase British exports to China and covering specific

projects and sectors, to be prepared by the DTI in

consultation with the FCO (including ODA) and the

Department of Energy; and

CONFIDENTIAL

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