TNAG-0839-FCO40-1048-Relations-between-Hong-Kong-and-China-1979 — Page 49

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also had commitments elsewhere, including Hong Kong. Mr Yang Yong conveyed greetings to the Secretary of State from the Chinese Minister of National Defence and said that he was grateful to CDS for the invitation for his return visit. From his talk with CDS he understood that the new Government attached importance to defence and China had been happy to sec

the Election of Mrs Thatcher and the Conservative party. CDS had said that British military expenditure had already increased; this was of great importance to China which had many points of common interest with the United Kingdom. When CDS had made this point during his

speech in China last year Mr Yang Yong had agreed. The Secretary of State said that he also had agreed and hoped that Mr Yang Yong would make an equally important speech during his visit so that the whole world would know that he had been here. Mr Yang Yong said that whether he would make such a speech would depend on whether it would be well received in Britain.

2. The Secretary of State said that he was pleased that Mr Yang Yong was here and that China had already received Mrs Thatcher and Mr Heath. He felt Anglo-Chinese relations were developing satisfactorily. Did Mr Yang Yong think that the recent military operation in Vietnam had been satisfactorily executed? Mr Yang Yong said that this had been a counter-attack and had followed shortly on the signing of the Treaty between Vietnam and the Soviet Union. Both the scale and the timing had been calculated to teach Vietnam a lesson. The operation had been carried out as anticipated; China had not made propaganda of the event. The Secretary of State said that the Chinese defence forces had had a notable success and he appreciated

that the objective had been limited.

3. The Secretary of State said that, he hoped that the United Kingdom and China could assist each other with equipment. Sir Ronald Ellis was already involved with negotiations with China as were some UK industries. There were many sales in view, but his own particular responsibilities were with defence. Mr Yang Yong said that he had already told HM Ambassador in Peking that there were no "contradictions" between the two countries. The Chinese people were honest and simple; they did what they said they would do and if they could not do something they said

He looked forward to co-operation in economic affairs and military equipment but thought that developments in this area

So.

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/ would

}