TNAG-0333-FCO40-369-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 5

WAS FAR TOO LOW WITH EACH OTHER. WE ARE GOING TO LOOK FOR WAYS AND

MEANS OF INCREASING PURCHASES BOTH WAYS. I THINK THE CHINESE HAVE

ALREADY DECIDED TO PURCHASE CERTAIN AIRCRAFT - THE TRIDENT, FOR EXAMPLE, AND THE CONCORDE. THERE ARE VARIOUS FIELDS OF INDUSTRIAL PRODUCTION WHICH WE ARE GOING TO EXPLORE TOGETHER. THE

CHINESE MINISTER OF TRADE IS GOING TO COME TO BRITAIN SHORTLY.

HE WILL TALK TO MR DAVIES. WE HAD A VERY USEFUL SURVEY THIS

MORNING."

10. THE SECRETARY OF STATE WAS ASKED WHETHER ANYTHING HAD BEEN

AGREED ABOUT VC 10 SALES HE SAID :

''WE TALKED ABOUT THE POSSIBILITY OF SALES OF THE VG 10, I SHALL

HAVE TO EXPLORE THAT WHEN I GO HOME. IT IS NOT AT PRESENT IN

PRODUCTION.'

EEC

!

11. ASKED IF THE CHINESE HAD GIVEN ANY INDICATION OF WHETHER THEY WOULD RECOGNISE DIPLOMATICALLY THE EEC AT SOME STAGE, THE SECRETARY OF STATE REPLIED :

''WE DID NOT HAVE ANY TALKS ABOUT DIPLOMATIC RECOGNITION OF THE

EUROPEAN COMMUNITY AS SUCH. WE WERE REALLY ENGAGED IN TALKING

ABOUT THE IMPROVEMENT OF BI-LATERAL CONTACTS.'

HONG KONG

12 QUESTIONED AS TO WHETHER HONG KONG WAS DISCUSSED,

AND IN PARTICULAR THE QUESTION OF IMPROVED COMMUNICATIONS WITH

CHINA, THE SECRETARY OF STATE SAID:

**WE GENERALLY COVERED THE QUESTION OF HONG KONG. WE WERE BOTH

SATISFIED WITH OUR DISCUSSIONS ON THIS MATTER. WE WILL TAKE INTO

ACCOUNT ALL THESE CONSIDERATIONS YOU MENTION.

"}

13. FURTHER ASKED ABOUT THE STATUS OF HONG KONG PARTICULARLY WITH REGARD TO THE NEW TERRITORIES, THE SECRETARY OF STATE REPLIED : ''WE DID NOT GO INTO ANY DETAIL. I THINK WE ARE BOTH SATISFIED

WITH THE WAY IN WHICH BOTH CHINA AND BRITAIN REGARD THE SITUATION

IN HONG KONG. THERE IS NOTHING TO BE SAID IMMEDIATELY OR TOMORROW

ON THIS."

-3-

/SECURITY