MR GOODLAD ́S MEETING WITH JONATHAN DIMBLEBY, 16 DECEMBER

Feelings about Chinese behaviour in recent weeks?

Great disappointment that we have been unable to reach

agreement after 17 rounds of hard talking. We put a lot of effort in to the talks, and offered important moves to meet

Chinese concerns.

Also puzzlement. So clearly in China's interest to acheive a cooperative transition. Points on which they dug in their heels

on this first-stage legislation were minor compared to the benefits of cooperation.

Agreement on the most urgent and least controversial issues did look possible at one stage, but the Chinese side took a

clear step backwards during November. Not clear why.

- No doubt different factions on Chinese side. Great pity they

seem to have allowed longstanding suspicion of British motives to dominate their thinking.

FCO response to recent House of Lords and Select Committee

meetings?

First point to emphasise is remarkable unanimity of support for our policy when Douglas Hurd made a statement in the House

recently. Speakers from all parties supported us. David Howell emphasised that the FAC's conclusions so far endorsed what we

are doing.

Of course critical comments from some witnesses. That is what

democracy is about. Sir Percy Cradock's views are well known to

us, and have already been made public. He is a distinguished

formula public servant and is entitled to his views.

gdl.jon.PR

SLM

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