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from Maoism;

and it remains to be seen whether it will be enough in a society which has had a comprehensive ideology to underpin civility for most of its recorded history.

China: External

11. During 1985, the Russians worked to achieve a genuine improvement in relations between China and the Soviet Union, though without giving anything away in relation to the three obstacles (Afghanistan, Indo-China and the Northern Border). The Chinese continued to insist that the obstacles must be

removed if relations between the two countries were to be "normalised". The year ended with the deadlock unresolved, but with clear signs that the Chinese were ready for closer economic and cultural relations in a situation short of

"normalisation".

12.

Relations between China and the United States were largely governed by Taiwan, textiles and (the absence of) technology transfer. At the end of 1984, Deng Xiaoping asked the Prime Minister to convey a message to President Reagan about Taiwan, inviting the Administration to make it clear that the principle of "one country, two systems" could apply to Taiwan. The Administration refused to do this. In consequence, the Chinese leaders grumbled through- out the year to visitors from abroad about what they described as the absence of any American strategy in relation to Taiwan. But their grumbling was only in private, as mostly over the other two issues as well. Meanwhile, a stream of distinguish- ed Americans, Vice-President Bush pre-eminent among them, visited Peking and the value of two-way trade rose to the very considerable figure of $7 billion.

13.

During the autumn, there were anti-Japanese student demonstrations in Peking and other cities. The targets of these demonstrations were Nakasone's visit to the Yasukuni shrine in August and the sale by Japanese companies of shoddy goods to China. The leadership undoubtedly felt

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/sympathy

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