8. Self-confident economies thrive on the open flow of goods and

services, ideas and expertise. A door closed to the world merely

locks in those behind it. But sustained growth also requires

confidence. This in turn depends on a stable and positive

international political environment. Last month in Tokyo the Summit

countries reaffirmed their commitment to reversing protectionism; to

a constructive relationship between East and West; and to stamping

out terrorism, which uses freedom to undermine freedom. Britain and

China will benefit as will the world · if these essential

objectives are achieved.

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9. Before you have to leave on Thursday I want you to see for

yourself that Britain is society on the move; abandoning wasteful rigidities, inventive and flexible. We have had some success in the past at winning Nobel Prizes now we are turning pioneering ideas into prosperity and a prosperity that can be shared. Your joint venture with Pilkingtons at Shanghai, which will bring to China the

benefits of their float glass technology, is one of many examples.

10. I have been lucky enough to visit China three times. I have

seen those qualities there too. I know that historic changes are taking place in your country. I was not surprised to learn that Chinese inventions won six gold medals at a recent International

Exhibition of New Technology in Geneva. And the achievements of your space programme, including the successful launch last year of a geosynchronous communications satellite, speak for themselves.

11.

As political leaders, we come from different cultures and traditions. But they have long had profound effects on each other.

Our civil service was partly inspired by China's example of relying

on scholars rather than soldiers or a hereditary ruling class to

arrange affairs of state. And people in China quite as much as in

the West, were influenced by the scientific insights of Charles

Darwin and the social conscience of Charles Dickens.

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12. On Wednesday you will visit the British Museum where another

19th century thinker Karl Marx spent so much of his time. Had

your visit been longer I would have suggested that you also visit

Kirkcaldy, the birthplace of Adam Smith. Marx often complained that

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