TNAG-0743-FCO40-947-Relations-between-China-and-Hong-Kong-1978 — Page 191

CONFIDENTIAL

4. HUANG SAID THERE WAS DEBATE IN THE WEST AS TO WHETHER CHINESE POLICY TOWARDS THE SOVIET UNION WOULD CHANGE. IT WOULD NOT.

5. THE FOLLOWING BILATERAL ISSUES WERE RAISED =

(1)

DR OWEN SAID THAT HMG HAD AGREED THE CHINESE PLANS FOR REBUILDING THEIR EMBASSY PREMISES. HE HOPED THAT THE CHINESE WOULD BE EQUALLY GENEROUS IN GIVING OUR EMBASSY IN PEKING MORE OFFICE

SPACE.

(11) DR OWEN ASKED HUANG TO LOOK AT THE QUESTION OF ACCESS INTO CHINA AND TRAVEL RESTRICTION. HUANG UNDERTOOK TO GET IN TOUCH WITH

THE DEPARTMENTS CONCERNED.

(111) DR OWEN SAID THAT THE UK WOULD LIKE A SCIENCE AND TECHNOLOGY AGREEMENT WITH CHINA AND HOPED THAT NEGOTIATIONS ON THE DRAFT TEXT WOULD PROCEED RAPIDLY, HUANG SAID THAT THE STATE COMMISSION FOR SCIENCE AND TECHNOLOGY WAS STUDYING THE TEXT. THERE WOULD BE NO DIFFICULTY ABOUT SIGNING AN AGREEMENT.

(IV) DR OWEN SAID THAT BRITISH AIRWAYS WAS KEEN TO FLY INTO CHINA. WAS THERE ANY PROBLEM ABOUT SIGNING AN AIR SERVICES AGREEMENT? MR HUANG SAID THAT HE HAD DISCUSSED THIS WITH MR DELL. THE MAJOR

PROBLEM WAS TO FIND A FORMUL ON THE JAPANESE LINES. HE BELIEVED THE UK WOULD BE ABLE TO FIND A SOLUTION. (ASSISTANT MINISTER SUNG HAD EARLIER SAID TO HM AMBASSADOR THAT ALL CHINA NEEDED WAS A UK STATEMENT THAT CAL WAS A REGIONAL AIRLINE AND THAT WE DID NOT RECOGNISE CAL'S INSIGNIA AS THOSE OF A STATE).

r(V) DR OWEN SAID THAT HONG KONG HAD BEEN DISCUSSED WITH THE PRIME

MINISTER. BOTH SIDES WERE SATISFIED WITH THE PRESENT SITUATION. BUT ONE SPECIFIC PROBLEM WAS IMMIGRATION, WHICH PUT GREAT PRESSURE ON HONG KONG SOCIAL SERVICES. HUANG SAID THAT THERE WAS A TRADITION OF FREE MOVEMENT BETWEEN HONG KONG AND THE INTERIOR OF CHINA AND THERE WAS NO NEED FOR ANY PROCEDURE GOVERNING MOVEMENTS BETWEEN THE TWO. CHINA WAS AT PRESENT PAYING ATTENTION TO THE NUMBERS ENTERING HONG KONG AND THERE WERE SOME RESTRICTIONS

IMPOSED: CHINA WOULD CONTINUE TO PAY ATTTENTION TO THIS.

(VI) DR OWEN SAID THERE WERE NO OTHER MAJOR PROBLEMS THOUGH WE HAD

SOME OUTSTANDING CLAIMS.

6. HUANG INVITED DR OWEN AND HIS WIFE TO VISIT CHINA AT A SUITABLE TIME AND SUGGESTED THAT DATES SHOULD BE DISCUSSED THROUGH EMBASSIES. DR OWEN ACCEPTED. HE COULD NOT GO BEFORE THE NEW YEAR AND EASTER

WAS PROBABLY THE EARLIEST TIME.

7. HUANG DESCRIBED CHINA'S ECONOMIC PLANS AND THE NEED FOR CHINA TO IMPORT ADVANCED TECHNOLOGY AND EQUIPMENT. A SUBSTANTIAL INCREASE IN BOTH EXPORTS AND IMPORTS WAS NEEDED TO KEEP A

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