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CONFIDENTIAL

SECRETARY OF STATE'S SOCIAL CONTACTS WITH THE CHINESE

AMBASSADOR, 24 AND 25 JUNE

Points to Make

Personal

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 General

Secretary Hu Yaobang in 1986. We look forward to building on this with your successor.

Hope he will be

Best wishes to Foreign Minister Wu.

able to take up our invitation to visit UK.

Bilateral

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. Hope this will continue. Hope projects under discussion within

framework of Development Loan Agreement can move to early

fruition eg Yueyang Power Station.

FC2ABX

CONFIDENTIAL

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