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ders with respect and deference (presumably a reference to the ultural Revolution and his and Deng's sufferings). In conversation with Lord Stockton he sought Lord Stockton's views on what China's priority should be. He said that he agreed completely with Lord Stockton's response that the priority should be to feed the population and that capital investment should not be at the expense of this.
Mr Li
Mr Luce spent less time with Mr Li but found him a tough, hard-headed, cagey, and rather humourless figure, possibly unsympathetic to the West. Mr Luce feels we need to take a lot of trouble to win him over.
They discussed two substantive issues:
i.
ii.
On Sino-British trade Mr Li did not think British businessmen lacked persistence. He did, however, suggest they were insufficiently "flexible" possibly a reference to credits.
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On Chinese economic development Mr Li impressed Mr Luce with his far-sighted appreciation of the need to stem the drift from the country into the cities by developing light industry and crafts in rural areas.
I am copying this letter to Tony Galsworthy, Peter Westmacott, and Ian Orr in the FCO.
Yours
Paul Theras
PAUL THOMAS
Private Secretary
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