CONFIDENTIAL
VISIT BY GENERAL SECRETARY HU YAOBANG: TALKS WITH THE PRIME
MINISTER, 9 JUNE 1986
BACKGROUND BRIEF I) UK/CHINA RELATIONS
Political
1.
Our main interests are:
a) Smooth implementation of the Joint Declaration on Hong Kong; b) the maintenance of China's current international posture, especially in relation to the Soviet Union, and her reformist economic and social policies; and
c) a bigger share of China's expanding import market for British
industry.
in
Until recently, Chinese contacts and cooperation with Britain had developed less rapidly than with our major Western competitors. However, the Joint Declaration has transformed the political relationship and thereby provided a major practical stimulus in many fields. Hong Kong will continue to be the conditioning factor overall UK-China political relations for the foreseeable future. 2. There is now a vigorous programme of high level visits and contacts. The Prime Minister's visits to China in 1982 and 1984 were followed by Premier Zhao Ziyang's visit to Britain in June 1985. The Queen and the Duke of Edinburgh will pay a State Visit (the first to China by a reigning British monarch) from 12-18 October, followed by a visit to Hong Kong. At Ministerial level Mr Renton, Mr Luce and Mr Lamont have recently visited China, and further visits are likely before early 1987 by Mr Raison, Lord Young (for the third time), Mr Walker and Mr Channon. From China, the Minister of Foreign Economic Relations and Trade visited Britain in May; visits are expected shortly by the Ministers of Textiles and National Defence. The Chinese Foreign Minister met Sir Geoffrey
Howe on 23 May in Brussels to discuss Hong Kong.
3. The Prime Minister met Mr Hu Yaobang in Peking in December 1984. (He gave the Prime Minister an Encyclopaedia Britannica in Chinese, and a Chinese-English dictionary). The Prime Minister has not met Vice-Premier Li Peng. Assistant Foreign Minister Zhou Nan was the chief Chinese negotiator on Hong Kong. The Prime Minister met him
at the signing of the Joint Declaration
4.
There is a growing framework of bilateral agreements. Last year, Premier Zhao signed with the Prime Minister agreements on
/economic
CONFIDENTIAL