TNAG-0752-FCO40-956-Future-of-Hong-Kong-1979 — Page 51

G28 518

PRIORITY

CYPHER CAT A

4 PEKING 3106952

CONFIDENTIAL

CONFIDENTIAL

HKK 040/1

RECEIVED IN REGISTRY MO. 51

3 AUG 1978

"DEAK OFFICER

PA

No. as

TO PRIORITY FCO TELNO.471\17,79

REGISTRY Action Taken

CLS

PA

AND TO MODUK, DOT (FOR BROWNING), DES (FOR SİR J HAMILTON)

INFO ROUTINE HONG KONG, WASHINGTON.

SINO/BRITISH RELATIONS $ MIPT.

1. 1 DO NOT THINK

78

I DO NOT THINK A POLICY ALONG THESE LINES WOULD BE VASTLY

DIFFERENT FROM THAT WHICH IS CURRENTLY DEVELOPING PIECEMEAL

IN RESPONSE TO CHINESE APPROACHES AND ENQUIRIES, RELATIONS

ARE GOOD AND THE NUMBER OF VISITS IN BOTH DIRECTIONS IS HIGH

AND INCREASING, BUT IT WOULD,

BUT IT WOULD, I SUGGEST, BE A RATHER MORE COMPRE- HENSIVE AND DELIBERATELY ADOPTED POLICY AND ONE WITH FEWER

RESERVATIONS, IT WOULD INCLUDE THE FOLLOWING ELEMENTS).

WE SHOULD UPGRADE CHINA IN OUR WORLD PRIORITY LIST: THE CURRENT COUNTRY ASSESSMENT DATES FROM 1973 AND NATURALLY REFLECTS OUR CAUTION IN VIEW OF POLITICAL UNCERTAINTIES AT THAT TIME. IT IS NOT APPROPRIATE FOR CHINA NOW WITH MAO GONE, THE COURSE SET FIRMLY FOR MODERNISATION, EXPLICIT APPEALS

TO THE WEST AND A VASTLY INCREASED LEVEL OF BILATERAL RELATIONS (SEMI-COLON)

(B) WE SHOULD RECOGNISE THAT THE PRESENT JUNCTURE IN SINO/BRITISH RELATIONS GIVES US OPPORTUNITIES UNLIKELY TO RECUR AND THAT IT 13 CRUCIAL THAT WE SHOULD MAKE RAPID, POSITIVE AND IMAGINATIVE RESPONSES (SEMICOLON)

(C) WE SHOULD TRY TO IMPOSE AN OVERALL PATTERN AND DIRECTION ON OUR RELATIONS, PARTICULARLY IN THE TRADE FIELD. PERHAPS UNJUSTIFIABLY, I HAVE THE IMPRESSION AT THE MOMENT OF A GREAT DEAL OF USEFUL BUT NOT ALWAYS WELL-COORDINATED ACTIVITY.

TO SOME EXTENT THIS IS UNAVOIDABLE SINCE WE HAVE BEEN IN A RECOM NAISSANCE PHASE AND THE CHINESE ARE NOT ALWAYS CLEAR THEMSELVES OR FRANK TO UG ABOUT THEIR DETAILED NEEDS. BUT THE TIME IS NOW APPROACHING WHEN WE NEED TO SURVEY THE FIELD, PICK THE AREAS AND PRODUCTS WHERE WE HAVE MOST PROSPECT OF SUCCESS AND SEEK TO DIRECT OUR EFFORTS AND OUR TRADE AND OTHER DELEGATIONS ACCORDINGLY (SEMICOLON)

CONFIDENTIAL

/{D) WE SHOULD