CONFIDENTIAL

BRIEF NO 1

PRIME MINISTER'S VISIT TO CHINA AND HONG KONG, 18-21 DECEMBER 1984

CHINA

STEERING BRIEF

INTRODUCTION

1.

Mrs Thatcher's visit to China will be the second by a serving British Prime Minister, following her visit in September 1982. It will represent the climax of the negotiations over the future of Hong Kong, in which context Sir Geoffrey Howe has already visited Peking twice this year, in April and July. It will also provide a further major impulse to the increasing flow of high level exchanges

with China. This year, British Ministers for Energy (Mr Buchanan- Smith), the Armed Forces (Mr Stanley) and Trade (Mr Channon) have

visited China; the Chinese Minister for Coal and two provincial

governors have visited Britain. The only visit by a Chinese Premier to Britain was in 1979, by Zhao Ziyang's predecessor, Hua Guofeng.

2. The centrepiece of the visit will be the signature of the Joint Declaration on Hong Kong; and presentationally, Hong Kong will be at centre stage throughout. But the visit also provides an important opportunity to raise bilateral relations to a new level. The Chinese

have made clear that they see it in such terms and that they are

looking forward to full discussion in private on bilateral and international issues, particularly trade.

UK OBJECTIVES

3. A Hong Kong

i) through the Prime Minister's participation in the signature

ceremony, to demonstrate our commitment to the full implementation

of the Hong Kong Agreement and to secure a similar degree of

commitment on the Chinese side.

ii) to express our readiness to co-operate with the Chinese Government to put the Agreement into effect: to elicit a similar response on the Chinese side; to prepare the way for influencing

CONFIDENTIAL

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