China and Hong Kong
9.
Sir J Coles outlined our approach to bilateral relations with China and the Governor's proposals for Hong Kong in standard terms. The Chinese had reacted fairly strongly during the Governor's recent visit to to Peking but had been unable to say how his proposals contravened the Basic Law Or 1984 Joint Declaration, and had not responded when asked for alternative proposals. UK/China contacts would continue with a visit by the Chinese Vice Premier in mid-November and a visit to China in early December by a human rights delegation led by Lord Howe. We were interested in Indian views of China's defence policy and ambitions to develop a blue water
navy.
10. Mr Srinivasan said that the recent Sino Indian Joint Working Group meeting had not really addressed the question of where the common border should run, and had concentrated instead on further measures to ensure that it remained peaceful. Military-to-military contacts had been discussed. The Chinese had handed over a draft paper on other CBMs which the Indians were studying. Ideas being discussed included advance notification of troop movements and an agreement on
Increased access for Indian handling airspace violations. pilgrims to shrines in Tibet had also been discussed, and the Two sides had agreed to open a second border crossing, in
A visit to India Sikkim, for traditional cross border trade. by the President or the General Secretary was likely early next year.
Normalisation remained the watchword for
China The dialogue was beneficial: Sino-Indian relations. had told the Indians that their arms supplies in the region
The Indians had communicated were not directed against India. their lively concerns at the apparent construction of naval bases in Burma and at the alarming indications of a rapid
The Chinese had effectively build up in Chinese naval power.
denied this. Chinese activism in the South China Sea sent
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