RESTRICTED

10.

29.

Commitments of British private investment rose in four

years from virtually nil to the top of the league, perhaps

soon to exceed all other foreign private investment combined.

British exports doubled. The Americans paid the financiers to

learn from the City of London us, and the Embassy operated

with one additional LEI in the Commercial Section.

30. The conclusions there were, I believe, broadly similar to

those reached in the Japan 2,000 Forum and by Mr Patten and Mr

Needham in Northern Ireland. China's needs and interests are

not unique, and if Hong Kong can inspire Tunisia, is it only

weary cynicism that prevents it inspiring more British?

The Silk Road

31. According to the Economist, the 21st century will be

dominated by Islam and China. International strains will

increasingly turn on trade issues.

32.

The Near East and China have known each other for

centuries, better than we Europeans knew either.

"In Muslim history the Mongols loom large but the Crusaders

constitute little more than a footnote". (ME Yapp)

The Near East produced ideas, including the three great

religions of the world and the principles of democracy, for

democracy began in the trading towns of the boat people before it was developed in separate Jewish, Phoenician and Greek

strands. Until 1800 the Middle East did more trade with Asia

than with Europe and it was along the trade routes that ideas

flowed. China in return, sent silk, spices, concepts of

government, armies and a thousand other products of a great

civilisation.

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