CONFIDENTIAL
From.
K C Walker
18W 311 (283
nst
enter
من
Asian Region
Research Department OAB 2/125 210 6220
06 NO 1937
Date:
28 October 1987
Mr Cooper
Far Eastern Department
CALL BY ZHANG YIJUN, NO. 2 AT CHINESE EMBASSY
Mr Zhang Yijun called on me on 26 October. Zhang was affable and forthcoming. His comments on the following subjects may be of interest.
1.
UK/China Relations
2.
Zhang expressed satisfaction with cooperation between the British and Chinese Governments over Hong Kong and noted that Zhao Ziyang had described the present state of Sino-British relations as the best ever. He said that his work here would be governed by three main objectives:-
-
(a) to increase the existing exchanges on international political and
strategic issues
-
(b) to increase bilateral trade he added that China wished to
increase trade with Europe generally and lessen dependence on Japan (c) to increase technical exchanges with Britain - he thought that
British experience in the modernisation of old-established industries might be particularly relevant to China.
3.
Zhang raised a specific point which he had been asked to pursue by Du Runsheng, Head of the Chinese Communist Party is Rural Research Centre. Du was interested in the British post-war experience of managing the transition to a free market from a highly regulated economy with rationing and price controls; he believed that the Chinese might derive useful lessons from this experience. Du was unlikely to be able to visit Britain himself, but would like to make contact through the Chinese Embassy with British economists, especially those who had worked in Government in the 1940s and would be willing to advise the Chinese. If Mr Hallett could suggest one or two names for me to pass on to Zhang, I should be grateful. (Sir Alec Cairncross who has already had some dealings with the Chinese might be one such person).
The Gulf and China/US Relations
4.
Zhang replied in standard terms to a question by Mr Ling on Chinese arms supplies to Iran. The subject obviously caused him some discomfiture, and he expressed the view that the Americans should try to avoid giving emphasis to the issue despite public and congressional pressure.
CONFIDENTIAL
/Sino-Soviet