TNAG-0843-FCO40-1053-Visit-of-Lord-Carrington--Secretary-of-State-for-Foreign-and-1979 — Page 22

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link a solution of the border problem to China's demands

for withdrawal of Vietnamese troops from Cambodia and

Laos. Chinese have proposed that talks resume on 25 June

in Peking.

10. Both sides have accused each other of provocation

along their common border. The Chinese have repeated

their threats of the possibility of further "punitive

actions" against Vietnam (although there are no obvious

signs of preparation for this). The conflict of interest

between China and Vietnam is a deep seated and bitter one,

and a resolution of their differences in the near future

is unlikely. The Chinese have taken in 230,000 refugees,

mostly ethnic Chinese, from Vietnam.

China/India

11. China's relations with India have been cool since the

early sixties (Sino-Indian war, close Chinese ties with

Pakistan and Indian with Soviet Union). Following Chinese

overtures Foreign Minister Vajpayee visited China in

February 1979. This coincided with China's incursion into

Vietnam, and he cut it short. However the Indian

Government, despite deeply rooted suspicion of China's

Long term aims and warnings to others to proceed cautiously,

still seem prepared to try to improve their bilateral

relations. The Indians decided last year to buy the

Anglo-French Jaguar. They are negotiating for up to 20

Sea Harriers for the Indian Navy. On the possible sale

of Harrier to China; the Indian Government has not reacted

publicly, but Mr Desai told the High Commissioner during

China's incursions into Vietnam that he did not know how,

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