TNAG-0752-FCO40-956-Future-of-Hong-Kong-1979 — Page 53

R$ 948

PRIORITY

CYP CAT A

FM PEKING 3106452 JUL

CONFIDENTIAL

TO PRIORITY FCO TELNO 469

CONFIDENTIAL

AKK 040/

RELLIVED IN REGISTRY MO. 51

3 AUG 1978

DERK OFFICER

REGISTRY

INDEX

PA

Action Teton

No

BE

PA

OF 31 JUL AND TO DOT (FOR BROWNING),

DES (FOR SIR J HAMILTON) AND MODUK.

RFI HONG KONG AND WASHINGTON.

SINO/BRITISH RELATIONS

1a IN THE TALKS I HAVE HAD SO FAR WITH CHINESE LEADERS ONE THEME IS PARAMOUNT, NAMELY THEIR DETERMINATION TO MODERNISE FAST AND THE RELATED FOREIGN AND TRADE POLICY DECISION WHICH CAN CONVENIENTLY BE CALLED THE OPENING TO THE WEST. THIS HAS IMPORTANT IMPLICATIONS FOR CUR ASSESS.... MENT OF CHINA AND FOR SINO/BRITISH RELATIONS IN PARTICULAR. SINCE THESE DESERVE EARLY CONSIDERATION I HAVE SET OUT MY THOUGHTS IN THIS AND THE TWO IMMEDIATELY FOLLOWING TELEGRAMS' RATHER THAN A DESPATCH.

29 THOUGH THE PRESENT POLICY STEMS FROM THE FALL OF THE. RADICALS (THE GANG OF FOUR) IN OCTOBER 1976 THE SEAL. WAS NOT SET ON IT UNTIL THE PARTY CONGRESS OF AUGUST 1977 AND ITS PRACTICAL MANIFESTATIONS HAVE ONLY BEGUN TO EMERGE OVER THE LAST YEAR OR LESS. 17 18

IT IS STILL GATHERING MOMENTUM, THE GOAL IS TO LIFT CHINA BY THE END OF THE CENTURY TO A PLACE AMONG THE WORLD'S MOST ADVANCED NATIONS, INTERNALLY THIS MEANS A PRAGMATIC POLICY, WITH THE OBJECT OF RELEASING AND APPLYING ALL THE TALENT AVAILABLE, AND AN INTENSE EFFORT TO MODERNISE AGRICULTURE, INDUSTRY, SCIENCE AND TECHNOLOGY AND DEFENCE, EXTERNALLY I MEANS A MUCH GREATER OPENNESS TO AND LEVEL OF INTERCOURSE WITH THE WESTERN WORLD. THE CHINESE WILL TRY TO REMAIN AS SELF-RELIANT AS POSSIBLE, BUT THEY ARE REALISTIC ABOUT THEIR RELATIVE BACKWARDNESS AND THEIR URGENT NEED FOR EQUIPMENT AND TECHNOLOGY FROM ADVANCED WESTERN COUNTRIES.

GOFT DENTIAL

13.

THIS IS.