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We have made practical progress in economic and political
relations. Total trade £538m for Jan-Sept 1985 (cf £596m for whole tof 1984). Soft loans have been instituted for China. High level
contacts in support of this objective are increasing and will reach a high point with the State Visit to China in October 1986.
6. To preserve the integrity, stability and economic prosperity of the
Republic of Korea, and to support initiatives directed towards the genuine healing of divisions within the Korean peninsula.
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No new initiatives have called for specific support by the UK but we have been publicly supportive of increasing North/South
dialogue.
7. To counter the wayward policies of the regime in North Korea where
these threaten our interests.
No serious demands placed on FED resources in the past year because of North Korean actions
China
5. To provide political support for HMG's commercial and economic
interests in the region (shared with Treasury, DTI, TRED and
ECD(E)).
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No problems in terms of FED resources in providing this.
SHORT-TERM
To ensure that the Joint Declaration on Hong Kong is implemented successfully. In the short-term, establishing the Joint Liaison Group and the Land Commission in ways which preserve all major UK
and Hong Kong interests. (Primarily for HKD)
On reflection, a purely HKD objective (which was achieved).
To support the DTI in ensuring that British industry takes full advantage in 1985 of China's expressed wish to increase imports from
the UK as part of her efforts to reduce dependence on the US and
Japan.
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Practical progress made: see 5 above. Other specific examples:
the forthcoming visit to China by Lord Young (12-17 December); the government reply to the report on trade with China by the House of
Commons Select Committee on Trade and Industry particularly as
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/regards