TNAG-0332-FCO40-368-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 31

Dr. Hon. S.Y. CHUNG

Secretary of State

CONFIDENTIAL

(E) RELATIONS WITH CHINA

Raised various questions regarding relations between U.K. and China; the exchange of ambassadors; the Taiwan problem;

and the ultimate future of Hong Kong.

British policy is to improve relations with China and increase trade between the two countries. It is not possible to speculate about the long term future of Hong Kong. It is necessary to ensure that the standard of living in Hong Kong is kept constantly rising. 80% of the present Chinese residents are happy to live in Hong Kong. This is the insurance against the future.

(F)

Dr. Hon. S.Y. CHUNG

Hon. H.J.C. BROWNE

Secretary of State

Dr. Hon. S.I. CHUNG

Secretary of State

TECHNICAL ASSISTANCE FOR POLYTECHNIC

Technical assistance is needed in setting up the polytechnic; in recruiting staff; and in obtaining equipment and machines for instructional purposes. The Japanese and the Germans have promised to equip laboratories; Britain should do the same.

£100,000 is to be donated to each

Technical Institute (Note: There was a general feeling that an announcement of this should be made as early as possible.)

It is more important to equip the polytechnic with British equipment because the polytechnic will train persons for higher qualifications.

Will look into this. The distinction

between the technical institutes and the polytechnic may not have been made clear to

London.

CONFIDENTIAL