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trade and development project cooperation, despite steady growth,
remain low in absolute terms. (In 1983, UK exports to China were
under £160m). Recent trends are, however, more encouraging.
5. Following the conclusion of the Hong Kong negotiations, the
Chinese have given strong indications that they desire a rapid expansion of cooperation, particularly in trade. Within their general aim of increasing the west European market share of Chinese imports from 16% to 20%, they have expressed willingness
to give a political fair wind to British projects. Vice Premier
Li Peng told the Minister for Energy, Mr Buchanan-Smith, on
4 December that he hoped the Prime Minister's visit would lay
the foundations for rapid development of trade.
6.
High level visits are also increasing. The Secretary of State
has visited Peking twice this year, in April and July, in the
context of the Hong Kong negotiations. British Ministers for
Energy, Trade (Mr Channon) and the Armed Forces (Mr Stanley) have
also visited China this year. The Chinese Minister for Coal, and
the Governors of Guangdong (called on the Prime Minister) and Sichuan have visited Britain. In 1985, visits are expected by
Premier Zhao, and the Ministers for Space Industry (to sign
a cooperation Protocol), Education, the Environment and Textiles.
7. There is also a growing formal framework. Bilateral Double
Taxation and Consular Agreements have been concluded this year;
the latter provides for an exchange of Consulates-General in Shanghai and Manchester. The Shanghai office already has a consul in place supervising repairs to the building and the Consul-General
will take up his appointment early in 1985.
b) Visits
i)
Invitation to HM The Queen to visit China
8. An invitation to HM The Queen was extended by then Premier Hua
Guofeng during his visit to the UK in 1979 and renewed by Premier Zhao
Ziyang during Lord Carrington's visit to China in April 1981.
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19. The