CONFIDENTIAL
(Background: Around 1200 Chinese students in Britain. Sir Y K Pao's
scholarship scheme will make major additional contribution.
Over
ten years, we will contribute equivalent of US$10m on basis of
£700,000 pa Sir Y K and private sector friends US$20m, Chinese
US$20m. Now discussing with Chinese and Sir Y K a memorandum to
formalize the scheme).
Claims
5. Given excellence of bilateral relations, anachronistic that
claims remain unresolved. Hope for rapid progress at talks in
Peking in May. Should make the the problem to be
1988. Icco mestowed difficulty it accem to
seltted
(Background: First round of formal negotiations on our claims
and Chinese counterclaims in Peking from 5-6 May. Will be
difficult. Our total claim £480m; Chinese exclude 80% on principle;
and counterclaim £100m.)
Hong Kong
handon capital. market if clans
not sellläd
6. Pleased at arrangements now agreed for Hong Kong to be
separate contacting party to the GATT.
7. (Defensive: Nationality). Considered all representations carefully. Government's decision taken in the light of these. Believe the right one in the circumstances.
CONFIDENTIAL