CONFIDENTIAL
(1)
Topic
(ii) The UK's
reliability as a trading partner
(iii) Air Services
Agreement
(iv) Shipping
Agreement
- 2 -
(2)
Present position
proposals for visits and have now introduced a system whereby sanitized versions of reports pro- duced by the Overseas Economic Intelligence Committee on China are passed to businessmen.
(3)
Action proposed during the Secretary of State's visit to China
We hope that the Secretary of State will impress on the Chinese that Britain is a reliable trading partner capable of meeting Chinese requirements for advanced technology.
During the negotiation of the Spey contract, a serious problem arose as a result of the decision to issue an export licence for one year only. We got round the problem by giving the Chinese an
export authority" for the period of the contract. We are now seeking the Department of Trade's agreement to the issuing of such authorities when- ever this problem arises with the Chinese.
The Agreement was initialled in 1973 but subsequently China introduced additional demands relating to Taiwan air services to Hong Kong. These demands are not acceptable to us for commercial reasons and the talks are at present deadlocked.
A Shipping Agreement will bring tax benefits to British shipping. Our draft text of an agreement will be handed to the Chinese shortly and negotia- tions are likely to begin soon.
The Secretary of State will wish to raise the problem of the Air Services Agreement with the Chinese.
Depending on the stage reached in the negotiations, the Sec- retary of State will wish to impress on his interlocutors our desire to conclude this agreement.
CONFIDENTIAL
/
(v)
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