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BACKGROUND

AFTE

Having

1. President Aquino visited China last month. visit her family home in Xiamen, she spent two in Peking where she met all the senior Chinese leaders.

full days

2. Deng Xiaoping complimented Mrs Aquino on her abilities, and said that under her Presidency the

Philippines had turned from turbulence to stability.

Li

3. During a two hour meeting with the new Premier, Peng, Mrs Aquino reaffirmed that the PRC Government was the sole legal Government representing China. This maybe in response to some rumours that the Philippines were being wooed by Taiwan with loans.

4.

China made it clear during the visit that it would

not provide support for the Philippines Communist Party. It was also agreed that the dispute between China and the

Philippines over the sovereignty of some of the Spratly

Islands would be shelved. China agreed to give the Philipines 10,000 tonnes of rice and to consider supplying oil at a sensessional rate.

Concessional

During her meeting with Qian Qichen Mrs Aquino gave him a briefing at his request on a question of US basis bases. in the Philippines.5/In

In recent years China has made

efforts to improve its relations with ASEAN countries and

to influence their attitude to Vietnamese occupation of

Cambodia. Indonesia broke off diplomatic relations following suspicions of Chinese involvement in an attempted Communist coup in 1965.

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