CONFIDENTIAL

CHINESE AMBASSADOR'S CALL ON THE PRIME MINISTER,

19 JUNE 1987

Points to Make

Grateful for all you have done to promote bilateral

relations during your three postings to London, in particular for your part in making the Queen's State

Visit to China such a success, and in bringing

Premier Zhao to the UK in 1985, and Hu Yaobang in 1986.

Concluded an agreement on co-operation in the

peaceful uses of nuclear energy shortly after your

arrival in 1985, and have now concluded the property

claims agreement shortly before your departure.

In the interval, we have concluded other agreements

including an investment promotion and protection agreement, and we look forward to building on this with

your successor.

P

Desire of all concerned in UK to assist in China's

modernisation programmes. Pleased that two-way trade relations are expanding steadily. Two-way trade almost

£900 m in 1986, over 20% up on 1985.

[Reference to Yueyang]

As a result of additional HMG funding including

through the Sino-British Friendship Scholarship Scheme,

we look forward to a doubling of the number of Chinese

students in the UK supported by HMG.

FC2ABX

CONFIDENTIAL

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