TNAG-0616-FCO40-764-Policy-of-UK-on-status-of-Hong-Kong-1977 — Page 54

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CONFIDENTIAL

DSR 11C

railway technologies.

At a later stage China may be in

the market for nuclear power reactors.

The Chinese are

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

العد

There are

Linstrands on the theme

market for British goods. (Since 1970, China has taken on

can pay for

Shakti & political average about 0.4% of United Kingdom exports.) Moreover,

there are a number of constraints,particularly in the

field of advanced military equipment. These constraints

will be examined in the three sections which follows.

SECTION II: STRATEGIC CONSIDERATIONS

9.

China's stated aim is to become a modern industrial

state by the end of this century. This is over-optimistic

notably as regards the rural population and the standard

of living in the towns. Nevertheless, the process of

internal modernisation is likely to absorb most of

Chinese energies over the next twenty years, with

little to spare for intervention in the outside world.

/In

CONFIDENTIAL

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