TNAG-0742-FCO40-946-Relations-between-China-and-Hong-Kong-1978 — Page 85

AGENDA

SINO/BRITISH RELATIONS

1.

BASIC ASSUMPTIONS

(a) The present Government in China is stable and the most

moderate and pragmatic which we are likely to get.

(b)

In the short and medium term, our interests coincide, especially over the future of Hong Kong and the benefits of stability in Asia.

(c) It is in our interests to encourage the Chinese to be peaceful and outward looking, and to help them fulfil their ambitious economic modernisation plans.

(d) The Sino/Soviet dispute is a factor we must take into account,

along with the development of China's relations with other major powers, especially the US and Japan.

(e) Our friends and allies largely share the assumptions in (c)

above.

2.

KEY QUESTIONS

(a) Do we know enough about Chinese intentions politically,

commercially and military?

(b) What do we know about the likely response of other major

Western states to Chinese overtures to them in the political and commercial fields, including defence sales? Can we do more to ensure that we move forward at roughly the same pace?

(c)

What do we know about the likely reaction of the Soviet Union to the probable development of closer relations with the Chinese by the majority of Western states? And how could we persuade the Russians that we do not seek to develop our relations with China at the expense of our relations with the

USSR?

CONFIDENTIAL

/(d)