рат

(See para 13 of backgrond).

Informed Mr. Seater this is OK. tps. (gen. briefing)

ep01/mm

Enter

POLITICAL COMMITTEE, PARIS, 5-6 SEPTEMBER

AGENDA ITEM 10: CHINA

Objectives

1.

2.

HKB 040/4

R pl cc l5: Miss Vowles, ODA

Der Wilson, WTI rer Redmayne, Pi3,

To exchange views on the situation in China.

To support the continuation of EC measures.

113

раз,

ECGO

Mr Sharpe, GRD Mr Baker, SEND Mr Wood, HKI)

grateful for comments/ clearance by cop.

+ Mr Smith, ECOCE)

Arfeatin

FEO 270-295 3

31/8

Points to Make

1.

In general see no change in the situation in China justifying

any relaxation of EC measures for the moment. Ample evidence of continuing repressive activity aimed at enforcing ideological orthodoxy. Possibility of further action, eg trials of student

leaders.

2. Premature relaxation of measures would send wrong signals to Chinese leadership who are looking out for and seeking to engineer breaking of the Western ranks. And would be misunderstood by Western public opinion.

3.

Up to Chinese to create appropriate conditions in which measures could be lifted. Would not regard lifting of martial law

as sufficient in itself.

4.

International financial institutions. Still considerable

uncertainty over the pace and direction of reform. Certainly no clear drive for further reform. Emphasis on recentralisation may

indicate move in other direction. In the circumstances do not believe that the time is right for a resumption of World Bank or Asian Development Bank lending.

A10AAC

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