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b) to agree in as much detail as possible (on the assumption that No 10 will be dontent with the form proposed) what the "Trade and Aid" brief should include.
Within these the following points will require discussion:
i) Joint Commission
As Mr Corley's letter shows, the DTI remain unwilling to reopen the issue. The cost of a Commission would clearly need to be offset against any benefits. But FED's view is still that, in the Chinese case, the balance may well be positive. The main arguments in favour are that the existence of a forum would force Chinese agencies to cooperate in developing commercial projects with Britain (most large projects involve several ministries and coordination is often poor). Furthermore, impending meetings would be a useful stimulus for Chinese organisations to produce proposals involving Britain. However, Peking consider that the recent trend towards devolution in trade weakens the case. I suspect there is little point in pressing specifically, although it would be a bonus if the meeting could agree that the Prime Minister should be briefed to ask the Chinese generally either whether they wished to propose any improvements in the mechanism of bilateral trade or at least what HMG should do to improve the official backdrop to commercial efforts.
ii) Aid
Some possibilities are addressed in Mr Corley's letter, Peking telno 2727 and Mr Vereker's minute to Mr Baxter of 12 November. Mr Vereker's minute of 16 November and your comments thereon record your subsequent conversation. From a political point of view, an offer of capital aid from the Prime Minister would probably make most impact. Failing this, announcement of a larger technical cooperation programme and eligibility for ATP would be useful. The meeting could at least agree that this aspect be pursued urgently. (Some modification of the draft letter to No 10 may well be needed.)
iii) Guangdong Nuclear Project
It now seems highly unlikely that a contract will be ready for signature in time for the visit. In any case, the Governor of Hong Kong has advised strongly against a high profile for the project in the visit.
The Prime Minister will however need to mention it: and BTC Hong Kong telno 147 suggests a reference to Lord Kadoorie in particular.
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