Some

intermediate area (which in China are likely for the most part to be

concessional financed) considered on a case-by-case basis.

other countries (eg the Dutch, French) have taken a somewhat

stricter view, in also restricting short term cover.

7. In technical cooperation it has been decided to continue those programmes which genuinely benefit individual Chinese. These include the technical cooperation training programme, financing Chinese students in this country, English language teaching in

China, academic links with Chinese institutions and technical

cooperation consultancies where these can be categorised as of

direct social or environmental benefit. In other areas these

consultancies have been suspended. In cultural cooperation it has

been decided to suspend plans for major cultural manifestations in China for the time being. And in scientific exchanges while it

makes sense to maintain links between individual British and Chinese

scientists it has been decided to suspend intergovernmental bilateral scientific exchanges for the time being. Other, private, organisations (eg the Royal Society) have for the time being taken a

similar line although they too are keen to maintain individual

exchanges between scientists.

International Financial Institutions

8.

Since the Peking massacre the Executive Board of the World Bank

has postponed consideration of new loans for China. The Bank's

China Director has visited China to assess the situation and has

reported back to the effect that there is no technical reason why consideration of a loan should not proceed. Following the Madrid

Summit and the Paris Economic Summit, Western Executive Directors

have been working for continued postponement of the consideration by the World Bank of new projects. Similar considerations applied in

the case of the Asian Development Bank. Consideration of loan

proposal in early June was postponed. The Bank originally intended

to include Chinese projects for consideration in September but

following discussion among G7 Directors none were brought forward in

September. If a forthcoming ADB mission to China comes back with a positive assessment the ADB is likely to table project proposals in

October.

A10AAC/6

Page 120Page 121

Share This Page