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CONFIDENTIAL
INDO-BRITISH POLITICAL TALKS: 3 - 4 FEBRUARY 1983
BRIEF NO.5: CHINA
BACKGROUND
1. CHINA INTERNAL
The 12th Party Congress (September) and final session of the
current National People's Congress (November) achieved most of
the objectives set by Deng Xiaoping and his reformist colleagues.
Some old leaders, notably Ye Jianying and other military figures
in the Politburo, still refuse to retire, but 1982 saw a major
stream-lining of the state machinery, and a party rectification
campaign is to begin in late 1983. The Congress endorsed both
domestic and foreign policies and established the framework of a
collective leadership. The economy now seems on a more sound
basis (though the target of quadrupling output between 1980 and 2000 looks unrealistic), But a major economic set-back could
jeopardise the chances for a stable succession.
2. UK/CHINA
The Secretary of State for Industry visited China in January and
there are likely to be several other Ministerial exchanges in 1983.
Trade prospects are improving and cultural, educational and
scientific links continue to develop. Defence exchanges include
the sale of certain items of defensive equipment (eg the recent
contract to refit Luda-class destroyers Project 051).
3.
INDIA/CHINA
In June 1981 Huang Hua, then Chinese Foreign Minister, visited India
and agreed to border talks. Two rounds have been held (December
1981, May 1982) and a third is scheduled for late January in Peking.
Little progress has so far been made but both sides see advantage in an improved climate of relations. Difficult concessions necessary
on both sides if the border dispute is to be settled.
CONFIDENTIAL
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