A

CONFIDENTIAL

- 2 -

eclaration was working well. Both sides should do their best

to keep it that way.

Hu Yaobang said that there were two important questions

as regards Hong Kong. The first was the Basic Law which was now being drafted. He was confident that both Hong Kong and the United Kingdom would be satisfied with it. The second was

the handover in 1997. If a good job was done on working out

the Basic Law, this would guarantee a smooth handover.

The Prime Minister noted that both sides were satisfied

with progress on Hong Kong and agreed on the need to maintain

confidence.

B

East/West Relations

The Prime Minister suggested a general exchange on

East/West relations and the prospects for a further United

State/Soviet summit, as well as on China's relations with the

Soviet Union. Hu Yaobang commented that, as far as the summit

was concerned the United Kingdom knew more about it than

China. The Soviet side had never given China any information

about the last summit. The Chinese Government had only

learned about it from others.

In

The Prime Minister said that we were convinced that both

the United States and the Soviet Union wanted a further

summit. But it had to produce practical results and not be simply a goodwill session like the Geneva summit.

particular there would need to be agreements on arms control.

The most promising areas for such agreements were chemical

weapons and INF. On the former, the West had in practice observed a moratorium for a long time while the Soviet Union

had produced a large stockpile of chemical weapons.

On INF,

we sought a global solution. There would be no point in

simply allowing the Soviet Union to move weapons from Europe

to Asia. We did not wish to export our security problems to

Asia or increase the threat to China from the Soviet Union.

Talks on strategic nuclear weapons, on the other hand, were

CONFIDENTIAL

Share This Page