CONFIDENTIAL
GR 960
CONFIDENTIAL
aboo av
FM FCO 072012Z FEB 79
HKK 026/6
TO IMMEDIATE PEKING
TELEGRAM NUMBER 123 OF 7 FEBRUARY
RrR
Aatz 15/2
MAKA ITS
NU. S
ECONOMIC
INEN
ECONOMIC CO-OPERATION AGREEMENT WITH CHINA
No
MIPT
See &
Ac gu Taren
1. FOLLOWING ARE OUR COMMENTS ON THE CHINESE DRAFT.
A. THE FOLLOWING TECHNICAL DRAFTING AMENDMENTS ARE REQUIRED BECAUSE OF THE WORDING OF THE PREAMBLE, IE THE WORDS QUOTE HAVE AGREED UNQUOTE:
1
11
ARTICLE 3 SHOULD BEGIN QUOTE THE CONTRACTING PARTIES SHALL.
EXPAND...UNQUOTE
ARTICLE 4 SHOULD BEGIN QUOTE THE CONTRACTING PARTIES SHALL WITHIN THE FRAMEWORK...PROVIDE...UNQUOTE
10
ARTICLE 5 SHOULD BEGIN QUOTE THE CONTRACTING PARTIES SHALL ...HOLD UNQUOTE.
B. ARTICLE 1. WE AGREE WITH THE LINE WHICH MOUND TOOK ON FIGURE TO BE INSERTED, CHINESE FORMULA: QUOTE THE TOTAL VALUE OF TWO WAY EXCHANGES SHALL AS FAR AS POSSIBLE REACH DOLLARS....UNQUOTE IS MORE
RESTRICTIVE THAN THE FORMULA IN OUR DRAFT:
QUOTE A LEVEL OF JOINT ECONOMIC ACTIVITY....IN EXCESS OF POUNDS STERLING 10,000 MILLION UNQUOTE. ACCEPTANCE OF THE CHINESE FORMULA SHOULD GREATLY INCREASE THE IMPORTANCE OF HAVING OUR FIGURE ALTHOUGH WHATEVER FIGURE IS AGREED WILL BE ONLY A TARGET NOT A COMMITMENT. YOU SHOULD GIVE NO INDICATION THAT WE ARE PREPARED TO ACCEPT A FIGURE BELOW POUNDS STERLING 10BN BUT WE CAN AGREE THAT THIS POINT SHOULD BE SETTLED BETWEEN MR VARLEY AND WANG ZHEN AS THE CHINESE
HAVE PROPOSED.
C. AN IMPORTANT POINT IS WHETHER THE CHINESE ENVISAGE THAT THE TOTAL FIGURE OF TWO WAY TRADE WOULD BE DIVIDED EQUALLY BETWEEN TRADE IN BOTH DIRECTIONS (AS IN THEIR AGREEMENT WITH THE JAPANESE). THIS
MIGHT BE REGARDED AS THE IMPLICATION OF THE PHRASES QUOTE ON THE
BASIS OF EQUALITY AND MUTUAL BENEFIT UNQUOTE IN THE PREAMBLE AND
QUOTE
CONFIDENTIAL
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