6. WU SAID THAT SOME PROBLEMS WHICH HAD APPEARED IN SINO-JAPANESE RELATIONS IN 1986 HAD BEEN RESOLVED DUE TO THE COMMON EFFORTS OF THE TWO COUNTRIES AND THE TWO GOVERNMENTS. HOWEVER, HE SAID THAT SOME FURTHER PROBLEMS STILL EXISTED WHICH HAD NOT BEEN COMPLETELY SOLVED.

IN THE ECONOMIC FEILD THE JAPANESE SHOULD BEGIN TO PAY MORE ATTENTION TO THE ISSUES OF REDUCING CHINESE TRADE DEFICITS AND EXPANDING INVESTMENT AND TECHNOLOGY TRANSFER.

7. WU ALSO REFERRED TO RELATIONS BETWEEN CHINA ND THE THIRD WORLD, SAYING THAT THERE HAD BEEN A LARGE NUMBER OF HIGH LEVEL VISITS IN 1986 BETWEEN CHINA AND OTHER THIRD WORLD COUNTRIES, MORE THAN IN PREVIOUS YEARS. HE REPEATED THAT CHINA SUPPORTED THE JUST STRUGGLE OF THIRD WORLD COUNTRIES FOR INDEPENDANCE, AND URGED THE WITHDRAWAL OF FOREIGN TROOPS FROM CAMBODIA AND AFGHANISTAN. HE SAID THAT CHINA SUPPORTED THE REASONABLE PROPOSALS OF LATIN AMERICAN COUNTRIES TO IMPROVE THE CONDITIONS OF DEBT PAYMENT AND ALSO THE EFFORT OF OPEC TO KEEP OIL PRICES STABLE.

8. WU ALSO REFERRED TO THE ADOPTION BY THE 41ST SESSION OF THE UNGA OF CHINA'S TWO PROPOSALS IN NUCLEAR AND CONVENTIONAL DISARMAMENT. HE SAID THAT THE CHINESE GOVERNMENT OPPOSED THE ARMS RACE AND THE EXPANSION OF THIS RACE IN OUTER SPACE. CHINA STOOD FOR THE TOTAL BAN AND DESTRUCTION OF NUCLEAR, CHEMICAL AND BIOLOGICAL WEAPONS AS WELL AS A DRASTIC REDUCTION OF CONVENTIONAL ARMS. HOT SPOTS IN THE WORLD SHOULD BE ELIMINATED AND AGGRESSION AND EXPANSION STOPPED.

9. COMMENT. THERE DOES NOT APPEAR TO BE ANYTHING IN WU'S INTERVIEW TO CAUSE US TO ALTER THE JUDGEMENTS WHICH WE MADE IN TUR. IT IS NOTEWORTHY THAT WHILE IN REFERRING TO THE EXISTENCE OF SOME PROBLEMS IN SINO-JAPANESE RELATIONS WU SAID THAT BOTH SIDES SHOULD CONTINUE TO MAKE EFFORTS TO RESOLVE THEM. THIS IS A PUBLIC ACKNOWLEDGEMENT OF THE FACT THAT STEPS ALSO NEED TO BE TAKEN ON THE CHINESE SIDE, PARTICULARLY AS FAR AS THE TRADE DEFICIT IS CONCERNED.

SIGNED: A J G INSALL.

PEHPAN 2755

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