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THATCHER AND SENIOR MINISTERS ATTENDED THE RETURN DINNER GIVEN BY
THE CHINESE. LEADERS OF THE OPPOSITION PARTIES CALLED ON THE
GENERAL SECRETARY, AS DID MR TEBBIT AND MR HEATH. THE
SECRETARIES OF STATE FOR ENERGY AND FOR TRADE AND INDUSTRY CALLED
ON LI PENG, FOR WHOM MR WALKER ALSO GAVE A LUNCH BEFORE A MEETING
WITH INDUSTRIALISTS ARRANGED BY THE SINO-BRITISH TRADE COUNCIL.
LORD YOUNG AND MR LUCE ACCOMPANIED THE CHINESE AT RELEVANT STAGES
OF THE VISIT. HU AND HIS PARTY ALSO WENT TO PARLIAMENT AND TO
STRATFORD AND OXFORD, WHERE THE CHANCELLOR, LORD STOCKTON, HOSTED
A DINNER AFTER THE CHINESE HAD VISITED A BRITISH FIRM AT THE
FOREFRONT OF MODERN TECHNOLOGY, OUP, AND THE UNIVERSITY'S
DEPARTMENT OF METALLURGY AND SCIENCE OF MATERIALS.
3. THE PURPOSE OF THE VISIT WAS TO DEMONSTRATE TO HU YAOBANG (IN
CHARGE OF IDEOLOGY) AND LI PENG (SOVIET TRAINED) THAT THE WEST IS
FULLY COMMITTED TO THE SUCCESS OF CHINA'S MODERNISATION AND
OPENING TO THE WORLD, WITH BRITAIN MAKING A LARGE PRACTICAL
CONTRIBUTION. UNDERLINING THIS POINT AN AGREEMENT WAS SIGNED
BETWEEN SIR G HOWE, LI PENG AND SIR Y K PAO (A PROMINENT HONG
KONG BUSINESSMAN) TO BRING INTO EFFECT A SCHOLARSHIP SCHEME
(WORTH POUNDS 35 MILLION OVER 10 YEARS) SUGGESTED BY SIR Y K PAO,
WHO IS ALSO A MAJOR CONTRIBUTOR TO IT. WE SOUGHT TO USE THE
SUCCESS OF SINO-BRITISH COOPERATION IN THIS AREA, OVER HONG KONG,
AND OVER THE RECENTLY SIGNED AGREEMENTS FOR INVESTMENT PROTECTION AND DEVELOPMENT LOANS, TO DEMONSTRATE OUR WISH TO ESTABLISH CLOSE COOPERATION IN COMMERCIAL, SCIENTIFIC AND EDUCATIONAL FIELDS.
4.
THE CHINESE HAD MADE CLEAR IN ADVANCE THAT HU YAOBANG, WHO
HOLDS NO GOVERNMENT POSITION, WAS NOT AN APPROPRIATE PERSON WITH
WHOM TO DISCUSS DETAILED BILATERAL AND COMMERCIAL MATTERS. HE
DID HOWEVER ADDRESS A MEETING AT CHATHAM HOUSE (CHAIRED BY MR
CALLAGHAN) ON CHINA'S BASIC DOMESTIC AND INTERNATIONAL POLICIES.
HE SUBSEQUENTLY ANSWERED QUESTIONS AND LATER GAVE A PRESS
CONFERENCE. ON THESE OCCASIONS HE STRESSED CHINA'S NEED TO SLOW
THE VERY RAPID PACE OF RECENT DEVELOPMENTS TO A SPEED THAT WAS
STILL FAST AND WHICH COULD SUBSEQUENTLY BE RE-ACCELERATED.
5. IN TALKS WITH MINISTERS THERE WAS AGREEMENT THAT BOTH SIDES WERE SATISFIED WITH PROGRESS ON HONG KONG. HU YAOBANG SAID THERE
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