TNAG-0616-FCO40-764-Policy-of-UK-on-status-of-Hong-Kong-1977 — Page 51

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CONFIDENTIAL

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In is reasonable that by оздний will command to

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SECTION I: WHAT DOES CHINA WANT FROM THE UNITED KINGDOM?

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2. While Mao was alive, Chinese policy oscillated between the economic pragmatism of Chou En-tai and ideological

fervour of the Cultural Revolution. Mao's death was followe

by the defeat of the ideological line of the Gang of Four

Myth and the return to the leadership of the re-pragmatist,

Teng Hsiao-ping. Further adjustments of policies and

there are good chasms personalities cannot be excluded, but it is reasonable to

for the

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assume that Chinese leaders in the years ahead will continu

to give economic growth and defencey which is dependent on it, the priority over ideological factors. Within this

Zbroad

broad goal of modernisation, there will be differences of

opinion about the relative importance of industry, agriculture

defence, and science and technology. In all these fields,

however, China needs and is asking for outside help, withou

wishing to become overly dependent on foreign countries in

general or any one country in particular.

3. This help will not be forthcoming from the Soviet

Union: Sino-Soviet tensions may lessen, but the underlying

boshlat

In the United States,

mutual rivalry and fear will remain. domeshi politial conditions, historical perception and

[political constraints deriving from American relationships

with China's neighbours will continue to limit trade, while

military sales are likely to remain banned. This leaves

Japan and Western Europe as the main sources of equipment

and technology for China. These are also areas which the

threatened by

from

Chinese see as subject to political erosion by the Soviet

between they counting, and

Union.

would

Strengthened economic links with China may therefore

serve Chinese political as well as economic purposes.

14.

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