TNAG-1026-FCO40-1276-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1981 — Page 12

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CONFIDENTIAL

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RECEIVED IN REGISTRY NO. 51

RECORD OF CONVERSATION BETWEEN THE FOREIGN AND SECRETARY AND THE PRIME MINISTER OF THIS STORIES S-RE CHINA IN PEKING ON THURSDAY, 2 APRI881 AT froopt

Present:

Lord Carrington

Sir P Cradock

Sir E Youde

Mr G G H Walden

Mr N M Tenn

Mr R JT McLaren

Mr M W Atkinson

Mr CO Hum

Mr JP Watson

REGISTRY

taken OF

AW 187 st

Zhao Ziyang, Premier of the State

Council

Song Zhiguang, Assistant Foreign

Minister

Ke Hua, Chinese Ambassador to

Britain

Guo Jie, Deputy Director, Westcrn

European Department, MFA

Cao, Yuanxin, Deputy Director,

Protocol Department, MFA

1.

After initial courtesies, during which he referred to his visit to Britain in 1979 as leader of a delegation from Sichuan

Province, Premier Zhao said he understood that Lord Carrington's talks with Vice-Premier Huang lua had revealed many common viewpoints on important international and bilateral questions.

Lord Carrington said he brought greetings from the Prime

Minister, who hoped to take up the outstanding invitation from

the Chinese government and visit China during 1982. Zhao said he would welcome a visit by Mrs Thatcher and looked forward

to it.

L

2. Lord Carrington said Britain and China were both fighting

an economic battle. Britain suffered from high inflation and

low productivity. It was painful but necessary to put this right. Britain was a trading nation, and attached importance to her

trade with China. How long would China's present phase of

economic readjustment last?

CONFIDENTIAL

/3.