5.

UK is continuing to implement its measures. [If asked] This

means in economic and trade relations:

6.

Export credits short term trade finance cover to continue; postponement of consideration of new medium and long-term cover (ie project business); consideration on a case-by-case basis of

projects where some undertaking has been given but where final

offer of cover has not been made.

Concessional finance for projects: existing projects to continue; consideration of new projects to be postponed;

case-by-case consideration of projects where commitment was

made prior to June events but where final agreement has not

been reached.

-

Technical cooperation: maintaining only those projects which

emphasise people-to-people exchanges (eg student scholarships) or are of direct social/environmental benefit (eg technical consultancy on pollution). Others postponed.

Cultural/scientific cooperation: people-to-people cultural

exchanges (eg English Language Teaching Programme) to continue but no major cultural manifestations. Official scientific exchanges frozen for the time being.

7.

[Defensive] Messages on death of Deng Xiaoping. Grateful for

partners' comments on question of messages on the event of the death

of Deng Xiaoping. No final decision yet, still thinking in terms of short, formal message to Party Secretary Jiang Zemin.

A10AAC/2

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