CONFIDENTIAL

Agenda

6. This is also relatively straightforward.

Suitable

Hong Kong issues will only become clear nearer the time. The most time consuming item in the first session is likely to be economic and commercial relations. This will certainly include soft loans, the Guangdong nuclear and other major projects; the Chinese will probably also raise other trade policy issues such as COCOM, China and the GATT, and import

We expect to begin formal negotiations on

restrictions.

claims with the Chinese later in the autumn, and Mr Luce's visit will provide a useful opportunity to prepare for these. A brief exchange on cultural and educational relations could be useful; the Chinese may also wish to raise other subjects themselves (e.g. collaboration with URENCO on uranium enrich- ment, and visas).

7. On international issues, it will be important to avoid mere repetition of talks at Prime Minister and Foreign Minister level during Premier Zhao's visit. The Chinese however, will probably expect some discussion of East-West relations. Sino- Soviet and Sino-US relations are topical in view of the visits this month to Moscow by Vice Premier Yao Yilin and Washington by President Li Xiannian. The Middle East was not covered during Premier Zhao's visit in June. Nor was UNESCO, on which UND are currently discussing with ODA whether it might be worth seeking Chinese support for our position. Afghanistan was not discussed in detail in June; Indo-China was, but the Chinese would no doubt welcome an account of Mr Luce's discussion in Thailand. Time did not allow discussion of Korea in June, and discussion now would be very useful.

Other aspects

8.

The programme will now only include Shanghai outside Peking and I see no need for any FCO official (other than a Private Secretary if appropriate) to accompany Mr Luce.

9. If Mr Luce is content with these proposals, we shall instruct the Embassy in Peking and the Consul General in Shanghai to speak accordingly to the Chinese. When doing so, both would wish to be able to give the names of the accompanying Private Secretary and also to say whether Mr Luce will go on the tour.

HKCK 027/6

RECEIVED IN REGISTRY

·

- 6 AUG 1985

DESK OFFICER

INDEX

1

Markshicht

TAY

PA

tion Taken

Mark Elliott

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