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Information

1%

Consular

1%

Immigration/

7%

Visa

Administration/

10%

Accounts

Security

Support

10%

17%

Others

11.

We have two Service Attachés supported by 2 UK-based staff. There is one member of the PSA at Post. The British Council have 5 UK-based staff in Peking who are integrated with the Embassy. Their main job is to stimulate and support English language teaching in China, to run academic, professional and student exchanges including placing Chinese government-funded post- graduates at British universities - and to mount British cultural

events in China.

Hong Kong

-

12. We also maintain a China Trade Unit in Hong Kong consisting

of three UK-based staff. Two of these are 'teeth staff'. They spend 100% of their time on commercial work in accordance with the Unit's terms of reference, which are to identify commercial opportunities in Southern China, gather China trade information available in Hong Kong and to advise British businessmen in or passing through Hong Kong on doing business with China. Shanghai

13.

Ministers have approved the opening of a small consulate in Shanghai (1 DS5, 1 DS7) and negotiations with the Chinese are in hand. The main function of the new office will be commercial.

The British Council have offered to post a UK-based member of

staff to the consulate.

SECTION VI: POLICIES OF OTHERS WHICH SIGNIFICANTLY

AFFECT BRITISH INTERESTS

14.

Normalisation of China's relations with the United States

on 1 January 1979 stimulated Sino/US contacts in many spheres and considerably enhanced China's politico-strategic opening to the West. Under the terms of a recent communiqué on arms supply to Taiwan, the two sides have come to a compromise arrangement for the time being over continuing differences. The signing of a Friendship Treaty between China and Japan in August 1978 consolidated Japan's already leading position as a trading partner and supplier of

/modern

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