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AND TO TELELETTER HONG KONG, UKREP JLG HONG KONG, B T C HONG KONG

FROM

TELELETTER

SIR ROBIN MCLAREN, PEKING NFR OF 02 OCTOBER 1991

FOLLOWING FOR H.L DAVIES, FE D, F CO

COPIED TO:

W.G. EHRMAN, POLITICAL ADVISER, HONG KONG A.C. GALSWORTHY, UKREP JLG, HONG KONG P.W. HEAP, B T C, HONG KONG

LORD YOUNG'S VISIT TO CHINA, 29 SEPTEMBER TO 1 OCTOBER.

1.

LORD YOUNG ARRIVED IN PEKING ON THE AFTERNOON OF SUNDAY 29 SEPTEMBER AND LEFT FOR CANTON EARLY ON THE MORNING OF TUESDAY 1 OCTOBER. HE WAS GIVEN A DINNER BY LIU SHUQING, PRESIDENT OF PIFA, ON 29 SEPTEMBER. ON 30 SEPTEMBER HE HAD MEETINGS WITH RONG YIREN, CHAIRMAN OF CITIC, AND YANG TAIFANG, MINISTER OF POSTS AND TELECOMMUNICATIONS, THE LATTER BEING FOLLOWED BY LUNCH. IN THE AFTERNOON HE PAID A COURTESY CALL ON LI PENG AND THEN ATTENDED THE LATTER'S NATIONAL DAY RECEPTION, BEING SEATED AT THE SAME TABLE (NUMBER ONE, IMMEDIATELY BELOW THE TOP TABLE) AS MR. AND MRS. GUMMER.

2.

ALAN KERFOOT MET LORD YOUNG, AND (SINCE I WAS ENGAGED WITH MR. GUMMER) ATTENDED THE WELCOMING BANQUET. NO-ONE WAS PRESENT FOR THE MEETINGS ON THE MORNING OF 30 SEPTEMBER, BUT I ATTENDED THE CALL ON LI PENG. YOU MAY LIKE TO HAVE AN ACCOUNT OF HOW IT WENT.

3.

LORD YOUNG BEGAN BY SAYING THAT HE HAD SEEN THE PRIME MINISTER SHORTLY BEFORE LEAVING LONDON. THE PRIME MINISTER HAD ASKED HIM TO CONVEY HIS BEST WISHES. HE HAD TOLD LORD YOUNG THAT HE HAD HAD A GOOD VISIT TO PEKING AND HAD BEEN PLEASED WITH THE PROGRESS MADE.

LI PENG AGREED THAT THE TALKS HAD BEEN GOOD. THERE HAD BEEN PRESS REPORTS THAT THERE HAD BEEN ''CONTROVERSY

4.

THE DIFFERENCES WERE NOT THAT SERIOUS. EACH SIDE HAD PRESENTED ITS OWN VIEWS, AS WAS NATURAL. LI ADDED THAT HE HAD ALSO HAD A

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