DSR 11C

Prime Minister will have little positive to say beyond

recongising the importance the Chinese attach to attractive

financial packages. On mixed credits, the strong feeling

in DTI remains that the best chance of establishing China's

eligibility in principle for ATP funds lies in identifying

a promising specific case. They also consider that it would

be tactically unwise to hold out the possibility of mixed

credits at the present stage of the Guangdong Nuclear

Project. However, in the longer term, there is now some

hope of a small programme of pure capital aid, although this

is unlikely to have been secured in time for the visit.

5.

Zhou Nan earlier asked (your telno 2858) what

specific questions the Prime Minister might raise

Prime

Kong.

on Hong

If he reverts to this you should say that the

Prime Minister will wish to describe our commitment to the

implementation of the agreement, but we do not expect that

she will have points of detail to raise.

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