TNAG-0742-FCO40-946-Relations-between-China-and-Hong-Kong-1978 — Page 63

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SECRET

DRAFT MINUTE FROM SECRETARY OF STATE TO THE PRIME MINISTER

SINO-BRITISH RELATIONS

1. Your Private Secretary's minute of

[7 August] asked for an appraisal of

Sino-British relations, and recommendations

for action, in the light of telegrams nos

469 to 471 from HM Ambassador Peking.

2.

I broadly agree with the Ambassador's

arguments and recommendations.

We are

at a very promising juncture in Sino-

Western and more particularly Sino-British

relations. The new Chinese leadership

has made an explicit appeal to advanced

Western countries, including the UK, for

assistance in achieving China's ambitious

programme of modernisation. The regime

is not without some internal tensions but

for practical purposes its leaders work

well together and the course for modernisa-

tion is set firm and likely to persist.

I agree also with the Ambassador that

to achieve these goals China will need a

peaceful environment, and that it is in

the West's interests to encourage her in

this effort. If the West does not respond

positively, there is a risk of the failure

/of the

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