TNAG-0742-FCO40-946-Relations-between-China-and-Hong-Kong-1978 — Page 49

CONFIDENTIAL

4.

a Soviet reaction. If and when the Russians

voice objections or concern, we should be ready

to explain to them that we see nothing incompatible

between developing our relations with China and

the continued pursuit of a constructive relationship

with the Soviet Union. Only in the case of UK

sales of certain military equipment would I see

a serious danger of possible Soviet retaliation

against specific British interests; we should

weigh the risk in each case against the

corresponding political and commercial benefits.

We have already agreed guidelines on this

question in DOP.

5.

The recent successful visits to China by

David Ennals, Shirley Williams and Edmund Dell have

already put more impetus into the relationship.

I believe we should build on this.

features would be:

The main

(a)

Further high level political contacts.

I myself hope to go there towards the end

of the year and have invited the Chinese

Foreign Minister here. As I suggested

in my minute of 18 November, you may also wish

to take up your outstanding invitation to

China.

Before long we should invite

Chairman Hua or Vice-Chairman Teng Hsiao-

p'ing.

This would bring the level of our

exchanges more into line wit' those of France

and Western Germany.

/(b)

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