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succeed Zhao Ziyang as Premier.

He is however thought to

be less critical of the Soviet Union (where he once studied)

and of centralized economic planning, than some of his

colleagues.

Hu Yaobang will be accompanied to the talks at

No 10 by Assistant Foreign Minister Zhou Nan, a fluent English speaker, who was the leading Chinese negotiator during the latter stage of the talks on the future of Hong

Kong.

The Chinese visitors are going on to France, Germany and

Italy, but it is significant that they have chosen to start

with Britain. During this summer, top ranking Chinese

leaders will have visited 18 East and West European countrie

This is part of Chinese activity designed to build up a

constituency of European powers (both East and West) which w

help China resist pressure from, and decrease the global

influence of, the two super powers.

The briefing covers Hong Kong. Sir Geoffrey Howe had

successful talks with the Foreign Minister, Wu Xueqian in

Brussels ten days ago.

We hope to continue the

dialogue at Foreign Minister level and also when Zhou Nan (Vice Foreign Minister accompanying Hu) meets Mr Renton.

But it will also be important to use the visit of Hu Yaoban and Li Peng to reiterate our commitment to the Joint Declaration; get them to do the same; and disabuse the Chinese of any idea that we have hidden plans designed to

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