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Astronautics, Mr Zhang Jun, is to visit Britain in late January to sign a Memorandum of Understanding on space co-operation with the Minister of State for Industry and Information Technology
(Mr Pattie).
5
Proposed Mission Led by Lord Young
Since the time available for trade talks on this visit is limited, the Prime Minister has agreed to put to the Chinese the proposal that Lord Young, Minister without Portfolio, should lead a small, high level mission of businessmen to China early in 1985. If possible, early March would suit us best.
6
Guangdong Nuclear Project
A separate background note is annexed (Annex 2).
7
Priority Trade Sectors
Sectors offering best prospects for increased UK/China trade include:
(a)
(b)
(c)
Offshore oil and gas. British companies have acquired great expertise in both exploration and development from our own North Sea Oil experience. This experience is relevant to China's plans to develop her own offshore oil and gas supplies. The Minister of State for Energy,
Mr Buchanan Smith, recently visited China for talks an important technical seminar given by a number of the leading British companies. The China National Offshore Oil Corporation plans to open an office in London next year. and other UK oil companies are continuing to play a leading role in China's offshore exploration programme.
BP
In coal mining, Shell Coal International are co-operating with China on a major feasibility study on a new coal mine development in Shandong Province: the Jining (pron JEE NING) No 2 mine; while the National Coal Board, with British Government financial support, are carrying out a consultancy on a coal mine modernisation project (the Tangshan mine, in the Kailuan area, in Hebei (pron HER BAY) Province east of Peking).
Aerospace (NB British Embassy Peking should be asked to advise in latest developments in talks on a possible BAe 146 sale, now in progress in Peking). BAe completed a successful demonstration tour of China by the 146 in August. A BAe negotiating team now in Peking has made a final offer on price, which the Chinese are considering. Order would be
999-80