CONFIDENTIAL
work hard to maintain this momentum). The second and
fourth interests, stopping China and the USSR becoming
significantly closer, and building up an understanding
about the UK among young Chinese, are two sides of the
same coin; the goal of ensuring that China's role in
foreign affairs favours the West, rather than the
USSR/Eastern bloc. I agree with Sir R Evans' judgement that Sino-Soviet relations will never regain the closeness they possessed in the 1950s. I also agree that, for our part, the UK has made good progress, through the increased provision of scholarships and an enlargement of our two-way visit programme. But there is a very long
way to go before sufficient Chinese have seen and
appreciated what the west can offer, to ensure that China
remains permanently and favourably disposed.
14. On our short-term objectives, we have also achieved
a high level of success. Apart from progress on Hong Kong, we have reached agreement with the Chinese
(subject to drafting and signature of an agreement) on
claims; we have had a very successful State Visit to
China and the inward visit of Hu Yaobang (successful
regardless of the fact that he has now had to resign); we
have secured the Daya Bay contract for GEC; and we have concluded an investment promotion and protection
agreement. We have been less successful on turning our
soft loan money into new business. This, together with
the further liberalisation of COCOM towards China,
remains our principal interest for 1987.
R Racherr
Richard Fletcher-Cooke
FC4AAK
CONFIDENTIAL