TNAG-0743-FCO40-947-Relations-between-China-and-Hong-Kong-1978 — Page 244

CONFIDENTIAL

FRIME MINISTER'S MEETING WITH HUANG HUA 11 OCTOBER FRIME

SPEAKING NOTE

1

We see Mr Huang's visit as welcome evidence of our growing contact with China. As permanent members of the UN Security Council and contries with world wide interests, it is important that we should keep in touch, understand one another's point of view and work for agreement wherever possible. We hope his talks in London will help in this process.

2.

Exchanges in both directions have increased greatly over the past year. We are grateful for the welcome given to British Ministers on recent visits to China. I recall with pleasure my own meeting with Foreign Trade Minister Li Ch'iang in November 1977. British advanced technology and expertise have much to offer China. We have been glad to note the increase in the contribution British industry is making to China's modernisation plans: we want this process to continue. Co-operation in the scientific, educational and cultural fields also has much to offer both sides and we hope to see present trends continued and reinforced.

3.

We

Britain sets great store by the maintenance of prosperity and

stability in Hong Kong. We believe that China does so also. have been glad to note the continuing co-operation in many matters for example, the recent agreement on the continuation of supplies of

water from China.

4.

Further high level exchanges will be beneficial.

I hope in visit China.

due course to take up Premier Hua's invitation for me to We look forward to the visit of Vice Premier Wang Chen. We should also be very pleased if Premier Hua can visit Britain. What travels is he planning? And how did he assess his recent visits to Romania, Yugoslavia and Iran?

Defence Sales (Defensive)

5.

บ

We recognise that defence is one of China's four priority areas for modernisation. We have authorised Rolls Royce to proceed with

negotiations on marine propulsion units. We look forward to other firm proposals from the Chinese for defence equipment which we shall consider sympathetically in the light of our usual criteria.

CONFIDENTIAL