CONFIDENT I AL

The Prime Minister could also mention potential in the

energy sector, particularly coal, offshore oil and

thermal power;

iv)

for the background information of the Prime Minister,

an account of the position on aid for China.

10. The brief on international issues will be relatively

straight forward. Possible topics were listed in my

letter of 14 November, namely:

(a)

East/West relations and arms control;

(b)

Sino/Soviet relations;

(c)

South Asia;

(d) Korea.

Time will however be short and may not permit all these

to be covered.

11.

We will provide separate briefing for the call on

Chairman Deng Xiaoping. Although necessarily shorter and

more atmospheric than substantial, it will probably be

more important. We would envisage a single brief, to

include a large element on Hong Kong and distilling the

general lines of the briefing of non-Hong Kong subjects

prepared for the talks with Premier Zhao. We will also

provide separate briefing for a call on General Secretary

CONFIDENTIAL

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