TNAG-0743-FCO40-947-Relations-between-China-and-Hong-Kong-1978 — Page 214

CONFIDENTIAL

RECORD OF THE PRIME MINISTER'S DISCUSSION WITH THE FOREIGN MINISTER

THE PEOPLES REPUBLIC OF CHINA, MR. HUANG HUA, AT 10 DOWNING STREET

ON 11 OCTOBER 1978 AT 1630

Present: Prime Minister

Foreign and Commonwealth

Secretary

H.E. Mr. Percy Cradock

(H.M. Ambassador, Peking)

Mr. B.G. Cartledge

Mr. Huang Hua

Mr. Sung Chih-kuang

(Assistant Foreign Minister)

H.E. Mr. Ke Hua

(Chinese Ambassador in London

Mr. Chu Chi-yaun

(Chinese Embassy)

Interpreter

Mr. Huang Hua told the Prime Minister that he was delighted to visit the United Kingdom at Dr. Owen's invitation. He had enjoyed a preliminary exchange of views on international issues with Dr. Owen that morning; this had been pleasant and sincere. He

had also met some old friends on the Sino-British Trade Council

and had paid calls on the Secretary of State for Industry and

the Chancellor of the Exchequer. The Prime Minister said that Mr. Huang was very welcome in London; he hoped that all his discussions during his visit would be conducted on the basis of

mutual understanding. The UK watched the attitude of China on

the international scene very attentively and welcomed the new impetus which had recently emerged in China's relations with other countries. China had a great deal to contribute to the world

comity of nations and the loss was felt when China withdrew, as

had at one time seemed to be the case. China was now moving

towards the development of fresh contacts: this was valuable both

to the UK and to the world. The UK would therefore heartily

reciprocate China's initiatives and there would be no standing back.

China and the UK had a long history of bilateral relations, despite

some unhappy moments such as occurred in all family relationships.

The British had a genuine liking for the Chinese people. The UK and China also shared a link in Hong Kong, which clearly

presented a potential source of difficulty but seemed to be giving

rise to no difficulties at present. The relationship in Hong Kong

would be pursued in the manner which best suited the two countries.

/The Prime Minister

CONFIDENTIAL