π.
CURRENT DEVELOPMENTS/LEADERSHIP SITUATION
Situation on ground still uncertain but there is a heavy military presence in Peking and reports of further sporadic shooting.
There are no confirmed
The position outside Peking is unclear. reports yet of violence elsewhere, but there have been many reports of demonstrations and disruption in other major cities.
Nor do we yet have any confirmation of reported fighting between army units.
Too early to draw any conclusions about longer term leadership situation.
WILL TRADE LINKS BE AFFECTED?
The events are bound to have an impact on the confidence of foreign businessmen dealing with China, particularly those with investments
there.
At the moment we see no need for Government action to prevent normal commercial business. We shall be reviewing as a matter of urgency the question of projects being considered under HMG's concessional financing arrangements and are liaising closely with our major
major trading partners on such issues.
PLANS TO SUSPEND ECGD COVER?
Would not want to take that action for the time being as not suspending normal commercial business. However will of course keep
the matter under review.
ARMS SALES IN PIPELINE?
The suspension covers all sales of weapons and equipment which could be used for internal repression, including those in the pipeline.
Yes.
[If asked whether GEC's avionics equipment deal will go ahead].
SECRETARY OF STATE TO VISIT PEKING?
-
This would be entirely inappropriate in present circumstances.
I have already made our views known to the Chinese Government through their Chargé d'Affaires.
AS 3 AAU
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