GRS 550

CONFIDENTIAL

FM PEKING

TO PRIORITY FCO

TELNO 661

OF 290054Z APRIL 86

CONFIDENTIAL

INFO PRIORITY HONG KONG

FOR FAR EASTERN DEPARTMENT.

39

YOUR TELNO.337 : HU YAOBANG.

HKK 026/2

RECEIVED IN REGISTRY

-

· 1 MAY 1986

DES: OFFIC. INDEX

PA

подад

GISTRY Action Taken

AJB 15

I AGREE THAT THE EMPHASIS SHOULD BE RATHER MORE PHILOSOPHICAL THAN IT WAS FOR ZHAO ZIYANG'S VISIT. THE CHINESE THEMSELVES HAVE TOLD ME THAT HU WILL WANT TO TALK TO THE PRIME MINISTER ABOUT **GENERAL ISSUES'' RATHER THAN BILATERAL RELATIONS BETWEEN THE TWO COUNTRIES. BUT I HAVE RESERVATIONS ABOUT THE IDEA OF ENCOUR- AGING THE PRIME MINISTER TO ENGAGE WITH HU IN THE SORT OF SEMINAR TYPE DISCUSSION WHICH YOU APPEAR TO HAVE IN MIND. HU IS A VOLATILE PERSON. AND FOR THIS REASON ALONG SUCH A DISCUSSION

COULD GO WRONG.

I HAVE

2. INSTEAD, I SUGGEST THAT THE PRIME MINISTER SHOULD BE BRIEFED TO INVITE HU TO GIVE HER AN ACCOUNT OF WHAT HE AND OTHERS MEAN WHEN THEY TALK ABOUT ''SOCIALISM WITH CHINESE CHARACTERISTICS''. MYSELF SEEN LITTLE EXPLANATION OF WHAT THIS CONCEPT MEAND AND IMPLIES. I ALSO THINK IT WOULD BE USEFUL IF SHE COULD BE BRIEFED TO DRAW HIM OUT ABOUT THE RATIONALE FOR THE CHINESE POLICIES OF REFORMING THE ECONOMIC STRUCTURE AND OPENING TO THE OUTSIDE WORLD (THERE HAS BEEN A LOT OF EMPHASIS ON THE FORMER DURING THE PAST FEW MONTHS: INDEED, MUCH MORE IS NOW SAID ABOUT REFORMING THE ECONOMIC STRUCTURE THAN ABOUT ENLIVENING THE DOMESTIC ECONOMY).

BUT I ALSO

3. AGREE THAT EDUCATIONAL TIES SHOULD BE HIGHLIGHTED. HOPE THAT THE OPPORTUNITY WILL BE TAKEN TO BRIEF LI PENG, WHO IS STILL THE VICE-PREMIER IN CHARGE OF THE DEVELOPMENT OF CHINA'S INTRASTRUCTURE AS WELL AS CHAIRMAN OF THE STATE EDUCATION COMMISSION, ABOUT THE CHARACTER AND PERFORMANCE OF THE BRITISH ECONOMY AND TO SHOW HIM SOMETHING OF MODERN BRITISH ENDUSTRY.

4. WE HAVE RECENTLY BEEN STRUCK BY THE NUMBER OF DISOBLIGING ARTICLES IN NEW CHINA NEWS AGENCY REPORTS ABOUT THE SOCIAL AND ECONOMIC SCENE IN THE UNITED KINGDOM. I SUGGEST, THEREFORE, THAT ONE OF OUR PRINCIPAL OBJECTIVES SHOULD BE TO PERSUADE HU, LI AND THE OTHERS (ALL OF WHOM WITH POSSIBLE EXCETION OF FEI XIAOTANG ARE IMPORTANT) THAT THE UK IS VIGOROUS, CONFIDENT AND MODERN SOCIETY.

5. SUBJECT TO WHAT I HAVE SAID IN PARAGRAPH 2 ABOVE, I AGREE WITH THE THOUGHTS EXPRESSED IN YOUR PARAGRAPH 6.

6. I SUGGEST THAT WE SHOULD SET OURSELVES THE FOLLOWING OBJECTIVES

FOR THE VISIT :-

CONFIDENTIAL

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