TNAG-0616-FCO40-764-Policy-of-UK-on-status-of-Hong-Kong-1977 — Page 19

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also interested in advanced civil technology with

possible military applications, including possibly

computers.

8.

There are thus considerable opportunities for

British sales in both the defence and civil fields.

Even if these were realised, however, China would not

become a major market for British goods. There are

constraints on what they can pay for as well as strategic

and political constraints in the field of advanced

military equipment. These constraints are examined in

the three sections which follow:

SECTION II: STRATEGIC CONSIDERATIONS

9. China's stated aim is to become a modern

comprehensively industrialised state by the end of this

century. This might prove over-optimistic, given the

magnitude of the tasty and probable continued population

growth. Whatever the difficulties, however, in the

much longer term China is likely to become an active

world power.

She will have well over a quarter of the

world's population, large mineral resources and an

industrious work force which would probably still be

subject to an exceptional amount of central direction.

With a powerful industrial base and large and well

equipped military forces she would present a picture

quite different to that of present day China, not only

to her neighbours but further afield in Asia and elsewhere.

/10.

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