ME
Dr Bristow-Smith Mr FY
Reference
pl. copy to HKD for passs 5+b.
MKB 180/2
2- 1993
-GF.16/12
pa Jaclines
MEETING BETWEEN CHINA SECTION, FED AND MOFTEC DELEGATION, 10 DECEMBER 1993
1.
A seven member delegation from MOFTEC, led by Tong Jiemin, Deputy Director-General of the Department of Foreign Affairs, called on FED following their visit to DTI for talks on the establishment of a Joint Commission.
2.
From
Tong Jiemin started by saying that bilateral trade and economic relations were very good and the trend was continuing. The volume of trade had increased by 83.6% over 1992, with a total 1993 trade estimated at $3 billion. 1979 to June 1993, China had signed loan agreements worth $78.5 billion with foreign governments and world finance organisations, $64.2 billion of which had already been implemented.
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3. In trade terms, the UK ranked third in the EC but higher in investment terms. There was British investment in 389 projects, with an approved volume of $1.85 billion, of which more than $600 million had been implemented.
4. Reform of the Chinese economy was moving from coastal border areas to the South-west and North-west. With the UK having a large amount of high-tech enterprises, British firms were being encouraged to invest in energy, ferrous metal enterprises and infrastructure in the North-west and South-west. He hoped that FED would help to provide the conditions to push forward UK investment in China and appreciated FED's efforts so far.
5. Dr Bristow-Smith agreed it was good that trade was increasing and hoped it would continue to do so. He then emphasized the separation between FED and Hong Kong Department. Whatever the state of relations over Hong Kong, trade was a different issue, as Ambassador Ma had stated in a recent speech to British companies. He then asked about the new plan for the economy agreed at the Third Plenum and, in particular, how China was going to tackle the problem of high inflation.
6.
Tong Jiemin, going back to the issue of Hong Kong, commented that Ambassador Ma would have a clearer picture of this, but that MOFTEC did not want the issue to influence trade relations.
7. On the question of inflation, Tong Jiemin said that China hoped for stable development of the economy at 8.9% until the end of the century. This could be achieved through reform, especially of tax. Due to the central
fed02/GEN/moftecmeeting
CODE 18-77
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