the determination

follow the same route.

among the leadership that China would not Thus there has evolved a pragmatic approach to agricultural policy, starting with reforms in the late 1970s that moved away from collectivised agriculture towards a "family contract" system which encouraged farmers to have some regard to what the market wanted and with incentives to improve quality and quantity. Consequently, although methods of agriculture on the tiny family holdings (average size 0.13 hectares) remain primitive by modern Western standards, the relationship between the market philosophy and levels of production is not lost on the leadership, while the massive agricultural work-force is

deriving benefits through higher incomes. We can, therefore, expect to see further gradual and limited moves towards the market economy, though certainly without renouncing the socialist. doctrine ("socialism with Chinese characteristics",

their leaders ingenuously describe

their present political creed).

in

The Chinese ambitions are not only to become self-sufficient food supplies, but also to expand their exports, particularly to the West. China is, therefore, keen to encourage cooperation with the West. They are nervous, however, about the prospect of engaging in the normal processes of international trade and investment. It seemed to me that they were anxious to avoid Western capital gaining a dominant position within the country, for fear that the people might see and welcome the way in which the capitalist system operated. The consequence is that China is very keen to take advantage of Western science and technology (particularly in order to modernise its food processing plants) while retaining their operations under ultimate Chinese control. There are, nevertheless, some good opportunities for British agri-food companies for the export of food and drink, and for participation in joint ventures.

are bringing these opportunities to the attention of the relevant companies and trade organisations in this country, while forewarning them of potential obstacles (eg the "piracy" of technology). I must say that I was extremely well received by the many Ministers others that I met while in China, and I very much hope that goodwill generated by my visit will lead to increased business for our trade.

of my

We

and the

In the course

meeting with Vice Premier Wu Xue Qian, I raised the question of human rights in China. I took as an example the treatment of the Roman Catholic Church. The details of the discussion have been separately reported (Peking telegram 1648). As agreed at my meeting with Vice Premier Wu, I am sending the Chinese authorities a list of priests in prison for their religious views. These cases will be examined by the authorities. I will let you know of any developments.

My visit to Hong Kong was much briefer, but I had some very useful discussions with Sir David Wilson, local political figures, and a number of British and Hong Kong businessmen. The agriculture sector in Hong Kong is, of course, very small indeed;

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