d

CONFIDENTIAL

I believe that we would be open to severe criticism

were

We

Officials

if we

to adopt either of these ways out. have therefore pressed MOD to reconsider.

are submitting to Mr Younger tonight. In the

meantime you may wish to include in the statement in

square brackets reference to defence sales:

a

[We have decided to suspend all defence sales to

China].

c)

Sympathetic Treatment of Request by Chinese Students

to remain in the US

were to make a

There are at present about 3,000 officially financed

Chinese students in the UK. There are in addition an unknown number of privately financed Chinese students. Any indication that we would be willing to allow Chinese students to remain in the UK would

obviously have implications for Hong Kong. It would be considered grossly unfair if we concession for Chinese students, but not to be

in the willing to allow Hong Kong people to remain

UK.

I therefore recommend that the Secretary of State should say nothing about this in his statement. He could however say in response to any supplementary question that we would consider carefully any request

for political asylum;

3

CONFIDENTIAL

/d) The

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