UNCLASSIFIED

MR GOODLAD'S LUNCH WITH SIR PERCY CRADOCK, 11 JANUARY

CHINA: SPEAKING NOTES

Bilateral

-

Relations understandably dominated by Hong Kong.

1992 good year for ministerial and other high level contacts

(PM-Li Peng in New York and Rio; Secretary of State - Qian

Qichen at UNGA; Vice-Premier Zhu Rongji, Qian Qichen, Mayor of

Shanghai, Jiang Enzhu all visited UK; Mr Needham to China twice;

CBTG October mission; Lord Howe's mission).

FpImportant to maintain momentum, especially given current difficulties over Hong Kong. Secretary of State due to visit in

Easter Recess (not yet agreed with Chinese). Mr Heseltine and

Lord Wakeham also plan visits in the Summer.

UK Representation

Canton (Guangzhou) Consulate-General proposed. Necessary to

long-term commercial interests. Board of Management decision

awaited.

EC

Suggestions as to what Chinese may want as guid pro quo?

- December AWG maintained consensus on remaining post-Tiananmen

sanctions (ban on Heads of State contacts and on arms sales).

- GATT negotiations progressing but no chance of reaccession in March as Chinese suggest.

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