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TUESDAY, APRIL 6, 1993
At the moment the last figures showed a substantial Chinese surplus in our trading relationship a surplus as I recall of about £500 million. Obviously it is in our economic interests
to do rather better from our side of the balance sheet. I would certainly advise British firms to see Hong Kong as a gateway, as many of them are, as Japanese investors and firms have done. I would also advice British firms to follow the Minister of Trade, Richard Needham's, banner in taking a greater interest in the Chinese market and Chinese opportunities. If you compare what
we have done so far there with what some other countries have done, and if you compare what we have done there with what we have achieved in trade terms in some neighbouring countries, it is not as successful a story as we all should like.
I would also remind those concerned with British trade and those concerned with Chinese trade that Britain has been the most consistent advocate of keeping politics and trade separate. We have taken that point of view in the European Community in relation to goods from outside, not least when we have been arguing against some anti-dumping measures which we thought were
not justified. We have taken that view in relation to Gatt and Chinese membership of Gatt. We have taken that point of view in the arguments we have put forward, and which I will be putting forward again next month, on the extension of most-favoured nation status for China. That is an important backdrop to what I hope will be increased trade over the next years between Britain and China, increases in trade which the Vice Premier has
also welcomed.
/PROFESSOR MARTIN