GRS 450
CONFIDENTIAL
pach/UN ра
A l/x
ツ
CONFIDENTIAL
FM PEKING
TO IMMEDIATE FCO
TELNO 1449
OF 080707Z OCTOBER 85
INFO PRIORITY HONG KONG
INFO ROUTINE UKMIS NEW YORK
YOUR TEL NO 851 AND HONG KONG TEL NO 2094 (NOT TO UKMIS NEW YORK)
PRIME MINISTER'S MEETING WITH ZHAO ZIYANG IN NEW YORK
1. I SUGGEST THAT THE PRIME MINISTER SHOULD BE BRIEFED ON THREE STS OF SUBJECTS, NAMELY:
(A) ISSUES OF CURRENT INTERNATIONAL CONCERN,
(B) BILATERAL POLITICAL AND ECONOMIC RELATIONS, AND
(C) HONG KONG.
2. ON (A), A CERTAIN AMOUNT OF COURSE WILL DEPEND ON WHAT HAPPENS IN THE WORLD BETWEEN NOW AND THE DATE OF THE MEETING. SUBJECTS OF PARTICULAR CONCERN TO THE CHINESE AT THE MOMENT ARE RELATIONS BETWEEN THE SUPER-POWERS, THE SITUATION IN KOREA, THE SITUATION IN INDO-CHINA AND THE FUTURE OF TAIWAN. I THINK THAT IT WOULD BE USEFUL FOR THE PRIME MINISTER TO EXCHANGE VIEWS WITH ZHAO ABOUT THE MEETING BETWEEN PRESIDENT REAGAN AND GORBACHEV, DEVELOPMENTS IN AND RELATION TO INDO-CHINA AND THE FUTURE OF TAIWAN. SHE COULD PROBE
ZHAO ABOUT THE CHINESE ATTITUDE TO RECENT ARMS CONTROL AND DIS- ARMAMENT PROPOSALS. AS I HAVE REPORTED SEPARATELY, THE CHINESE LINE ABOUT THE STRATEGIC DEFENCE INTIATIVE HAS BECOME A HARD ONE. THE PRIME MINISTER WILL, I THINK, NEED DEFENSIVE BRIEFING ABOUT SOUTH AFRICA, THE MIDDLE EAST AND THE FALKLANDS.
3. ON (B) I SUGGEST THAT THE PRIME MINISTER SHOULD WELCOME THE CONTINUING DEVELOPMENT OF POLITICAL AND ECONOMIC RELATIONS, MENTION-
ING THE STATE VISIT (WHOSE DATES WILL HAVE BEEN ANNOUNCED BY US IN THE MEANTIME), THE FULL PROGRAMME OF VISITS BY BRITISH MINISTERS TO CHINA DURING THE NEXT SIX MONTHS (MR JOPLING, LORD YOUNG AND THE MINISTERS NAMED IN YOUR TEL NO 850), HER INVITATION
TO HU YAOBANG TO VISIT THE UNITED KINGDOM, AND THE EXPANSION OF TRADE BETWEEN THE TWO COUNTRIES (IT LOOKS AS THOUGH THE VALUE OF TWO-WAY TRADE WILL EXCEED POUNDS 750 MILLION DURING 1985 AS COMPARED WITH POUNDS 600 MILLION IN 1984). ON PARTICULAR SUBJECTS, THE PRIME MINISTER WILL NEED BRIEFING ON THE GUANGDONG NEUCLEAR PROJECT, SOFT LOANS, URENCO, EUREKA AND COCOM. THE NATURE OF THE BRIEFING ABOUT THE GUANGDONG NUCLEAR PROJECT WILL DEPEND ON THE CRUCIAL TALKS
WHICH TO TAKE PLACE IN PEKING NEXT WEEK. I SUGGEST THAT THE BRIEFING ON URENCO, EUREKA AND COCM SHOULD BE DEFENSIVE. CONFIDENTI.
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