SWB

FE/6240/C1/2

9 Oct 79

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trade has been on the increase. In the last two years, there has been some decline. This is because the volume was at its peak when we purchased some large-scale chemical fibre plant equipment from France. The volume has become somewhat smaller in the past few years. But the Chinese side is taking active steps. Recently we have signed contracts with France for the purchase of a 600,000 kW power station and 500/kv substation equipment for a high-tension transmission line between Pingdingshan and the Wuhan iron and steel complex. During my visit to France, I will have discussions with the French leaders, President Giscard d'Estaing and Premier Barre, and one of the subjects is how to increase our trade with France.

Dambmann from the West German television station asked: Mr Prime Minister, when you visit the FRG, you visit half a divided country. Now as Chinese, you have a reputation of thinking in a long time category. Do you think the reunification of Germany will be possible and do you think the reunification of Germany will serve world peace?

[A] The division of Germany into two parts after the second world war is a man-made state of affairs and the German people wish to see their country re-united. We think this is a reasonable desire and we sympathize with this desire. As to when this reunification will take place and its effects after it takes place - this is something that can be decided only by the people in the two parts of Germany.

Hans Bargmann of the German Broadcasting Corporation asked: Mr Prime Minister, China is trying to reduce tensions with the USSR. Do the talks in Moscow mean that China has altered its critical attitude towards the policy of detente pursued by the government of the FRG?

[A] Your question shows that you do not have a correct understanding of China's policy. China is not against detente. The FRG, because of its own circumstances and for its own interests, wishes to have normal relations with the USSR and other East European countries. We understand their desire and sympathize with it. China is not against detente. It is against hegemonism and the policies of aggression and expansion. China wants a peaceful international environment in which to build up the country. But the question is that, with the hegemonists engaged in expansion and aggression, it is impossible to have detente even if you desire it. There has been no detente in the world in the past year, particularly in the Middle East, in Africa, in the Red Sea and the Gulf area, in South Asia and in Indochina. So, though we would like to have a peaceful international environment, things are not developing as people would want them to. That is why I stated at the second session of the Fifth National People's Congress that our policy is to oppose hegemonism and defend world peace. So we are not against the desire of the FRG to have normal relations with the USSR, while opposing hegemonism, we also want to caution people against following a policy of appeasement. This is China's policy. In short, it can be summed up in these words: oppose hegemonism and safeguard world peace.

Dietman Shulz of the German Press Agency asked: Mr Prime Minister, China is interested in more co-operation with western companies. What guarantees will China give to foreign investors?

[A] In China's programme of four modernizations, we first of all proceed from the concrete conditions in China and secondly we will adhere to the policy of independence and self-reliance. At the same time we will also learn from the advanced technology and experience of other countries and absorb foreign investments. If we are going to absorb foreign investments, we must have some laws to protect their interests. The law on joint ventures with Chinese and foreign investments adopted at the second session of the Fifth NPC shows that we protect the interests of foreign investors. But the law by itself is not enough. Since we lack experience in this regard, we will study with our foreign friends and continue to work out supplementary laws and regulations so that the rightful interests of foreign investors will be guaranteed. China stands by its words and we mean what we say. But, naturally, it will take some time to do all this. Before the

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