TNAG-0850-FCO40-1060-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 13

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5. WE HOPE THAT, IN ADDITION TO FURTHERING OUR POLITICAL UNDER-

STANDING, THE VISIT WILL FURTHER IMPROVE THE UK'S COMMERCIAL

PROSPECTS IN CHINA (EXPORTS FOR THE FIRST 8 MONTHS OF 1979 AT

152 MILLION POUNDS STERLING ARE ALREADY WELL UP ON THE TOTAL FOR

1978) SEMI COLON AND THAT THE CULTURAL AGREEMENT TO BE SIGNED

DURING THE VISIT WILL PROVIDE THE BASIS FOR A FURTHER EXPANSION

OF OUR CULTURAL AND EDUCATIONAL EXCHANGES.

FURTHER POINTS (IF QUESTIONED)

SOVIET UNION

6. THE DEVELOPMENT OF OUR RELATIONS WITH CHINA IS NOT DIRECTED

AGAINST THE SOVIET UNION, OR ANY THIRD COUNTRY. WE ATTACH

IMPORTANCE TO OUR RELATIONS WITH THE SOVIET UNION, AND HOPE TO

DEVELOP THEM FURTHER ON THE BASIS OF MUTUAL INTEREST.

DEFENCE SALES

7. HMG HAVE MADE CLEAR THEIR READINESS TO APPROVE SUPPLY OF

CERTAIN ITEMS OF MILITARY EQUIPMENT TO CHINA, INCLUDING HARRIER,

AS PART OF OUR OVERALL TRADE RELATIONS. THIS ASPECT OF OUR

RELATIONSHIP WILL DOUBTLESS BE DISCUSSED DURING THE VISIT.

THERE ARE NO PLANS TO SIGN ANY CONTRACTS DURING THE VISIT.

COMMERCIAL NEGOTIATIONS FOR SUPPLY OF HARRIER ARE CONTINUING.

HONG KONG

8.

BUT

HONG KONG WILL DOUBTLESS BE DISCUSSED. THE CHINESE

GOVERNMENT HAVE MADE CLEAR THAT THEY SHARE OUR INTEREST IN HONG

KONG'S CONTINUING STABILITY AND PROSPERITY. THE QUESTION OF

WHAT IS TO BECOME OF HONG KONG IN THE LONGER TERM IS A MATTER

FOR THE FUTURE.

BACKGROUND

9.

THIS IS PREMIER HUA'S FIRST VISIT TO WESTERN EUROPE. HE

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