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CONFIDENTIAL
2.
To encourage the Chinese to continue to recognise the need for Hong Kong to remain an internationally oriented economy, itself the best guarantee of Hong Kong's continuing prosperity and stability: and in this context to persuade them of the
importance of protecting British investment and marketing opportunities there.
3.
Recognising China's shortage of foreign exchange, and thus
the need also to facilitate UK imports from China in some instances, to help British industry obtain as large a share as possible of China's market; as components of this
4.
(a)
(b)
(c)
(a)
to win a respectable share of major project business and defence equipment sales;
to support British banks, insurance companies and other invisible earners in their attempts to penetrate the Chinese market;
to target British industry to the sectors given priority in the 7th and 8th 5 year plans;
to devote more attention to projects supported by World Bank, Asian Development Bank and other multilateral donor institutions.
To encourage the Chinese further to develop their commercial law and its practice as a means of reassurance to British exporters and investors; concurrently, to persuade the Chinese to take full account of the legitimate requirements of British investors in joint ventures, including repatriation of profits and protection of patents, and of British companies involved in other forms of co-operation.
5. To assist (eg by monitoring Chinese regulations, tariffs, export subsidisation, etc) in ensuring that the conditions established for China's accession to the GATT are such as to make for fullest possible market access for UK companies.
Short Term
6. To bring to a successful conclusion projects earmarked for funding under the current soft loan programme.
7. To review the need for further concessional finance for China,
the recognising that major objective is to give a stimulus to business
on commercial terms.
8. To make a success of the two-way programme of Ministerial and other high level visits in 1987-88; and to try to change the orientation of officially supported missions from horizontal to vertical.
9.
To increase the number of Chinese students and engineers going to the UK; but in particular to decide how commercial considerations can be fully taken into account in their selection and placement.
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