TNAG-0839-FCO40-1048-Relations-between-Hong-Kong-and-China-1979 — Page 105

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THERE IS THE WIDER CONSIDERATION THAT CHINA IS BOUND * BE AN INCREASINGLY POWERFUL FACTOR IN THE INTERNATIONAL POWER BALANCE. A CHINA ENGAGED IN MODERNISING WITH WESTERN ELP IS MORE LIKELY TO BA A STABLE AND POSITIVE FACTOR THAN DE THAT HAD RELAPSED INTO ISOLATION AND XENOPHOBIA. BY ITS VERY EXISTENCE A STRONG CHINA WOULD ALSO ACT AS A CHECK

ON SOVIET AMBITIONS.

(C) WE NEED HAVE NO ILLUSIONS ABOUT CHINA. AS A COMMUNIST

STATE HER LONG-TERM AMBITIONS DIFFER VASTLY FROM OURS AND THERE ARE MANY ASPECTS OF CURRENT CHINESE EXTERNAL POLICY FROM WHICH WE SHALL NEED TO DISTANCE OURSELVES. NEVERTHELESS IN PRACTICE HER INTERESTS OVER THE IMMEDIATE AND MIDDLE-TERM FUTURE COINCIDE WITH OURS IN A NUMBER OF IMPORTANT FIELDS. IN PARTICULAR, FOR HER OWN GOOD REASONS CHINA WANTS A PROSPEROUS AND PRO-WESTERN JAPAN, A STRONG EUROPE AND A POWERFUL UNITED STATES FULLY COMMITTED TO WEST EUROPEAN

DEFENCE.

(D) GOOD SINO-BRITISH RELATIONS ARE PARTICULARLY IMPORTANT FOR HONG KONG, WHOSE RELATIONS WITH THE MAINLAND NOW APPROACH A CRITICAL PHASE.

THERE IS NO NECESSARY INCONSISTENCY BETWEEN THIS APPROACH TO CHINA ND THE PURSUIT OF A CONSTRUCTIVE BUT REALISTIC RELATIONSHIP WITH THE SOVIET UNION. THE RUSSIANS WILL OF COURSE MAINTAIN THE CONTRARY BUT THERE IS NO REASON TO ALLOW THEM (OR THE CHINESE) TO LAY DOWN THE RULES OF THE GAME.

5.

SEE MIPT

CRADOCK

FCO/WH.

FED

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