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12.
The number of countries willing to provide bilateral
aid to China in various forms has risen significantly. It
involves some of our main competitors including Japan,
Belgium, Denmark, Canada, Australia and Italy. The UK is
prepared to offer China commensurate aid terms from the UK
aid programme and has granted, and the Chinese
have allocated, development loans to the value of £300
million, equal to £90 million over 20 years.
13. The Soviet Union has sought to improve Sino-Soviet
commercial and economic relations, and has achieved some
success over the past two years; she is now making efforts
to extend these links into the political and Party
sphere. Other East European countries, which are not
affected by the Soviet Union's 'three obstacles' have had
more success in increasing trade and normalising Party
relations with China. Third world countries, particularly
the most backward economically and the more "progressive"
politically, as well as liberation movements, continue to
seek Chinese economic, military and political support.
China is most generous with the latter, and sells arms to
most prospective buyers.
SECTION VII: THREATS TO AND OPPORTUNITIES FOR BRITISH
INTERESTS
A.
14.
THREATS
I.
Hong Kong
Failure to co-operate in achieving consistency between
the Basic Law Provisions on government structure and
PR6AAJ
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