CONFIDENTIAL
2
Western viewpoint still unwilling to accept full
international responsibility of her economic success.
3.
Changes in China have been much greater since
the Prime Minister's visit to Peking in 1977. Deng
Xiaoping, who was beginning then to re-emerge as a
major face in Chinese politics, has eased Mao Zedong's
designated heir Hua Guofeng out of both the Premiership
and the Chairmanship, and pút in his own men; China
has embarked on a course of economic modernisation
which she has had to modify substantially in the light
of experience since the programme was launched in 1978;
and Sino/US relations have been normalised, although
the relationship is at present threatened by disagree-
ment over the supply of US arms to Taiwan.
4.
Hong Kong has continued to prosper throughout
the last 5 years under the outstanding governorship
of Sir Murray Maclehose (who was succeeded by Sir Edward
Youde in May). A growth rate of 8-10% has been
sustained despite the world recession, and a number of
major development projects, in which the participation
of British companies has been prominent, have been
undertaken in both the private and public sectors.
The influx of refugees from China has been brought
under control, but a steady albeit reduced stream of
refugees from Vietnam continues. The importance of
Hong Kong as a market for British export goods has
increased dramatically: at over £500 million the level
of British sales makes Hong Kong almost as important in
this respect as Japan.
5.
We see the overall purpose of the tour as to
/reassert
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