TNAG-1239-FCO40-1552-Future-of-Hong-Kong-1983 — Page 178

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CALL BY CHINESE AMBASSADOR ON MR LUCE : 7 JULY

PRESENT

Mr Chen Zhaoyuan, Chinese Ambassador

Mr Chen Ziying, First Secretary,

Chinese Embassy

mi

My House Mr. Wallen

Mr R Luce MP, Minister

of State

1.

Mr PAB Thomson, FED

Mr H B Warren-Gash, Private Secretary

After initial courtesies Mr Chen discussed at some length Chinese plans for future agricultural and political development. Agriculture was the first priority followed by light industry and heavy industry in that order. The Chinese would also continue to concentrate on the economic infrastructure (particularly energy and transport) and on the technical up-grading of the country's existing light industry.

2. Mr Chen noted that a delegation from China was in Britain discussing proposals for cooperation with British companies, There were many areas in which China could do business with Britain. Mr Luce asked about the scope for cooperation in the agricultural sector. The Ambassador said there had already been several exchanges. Mr Luce welcomed this and said that economic cooperation would benefit both sides,

3.

Mr Luce then said that he was pleased to note Premier Zhao Ziyang's reference to Western Europe in his foreign policy speech at the National People's Congress, This, and the improvement in recent years in our bilateral relationship, was an auspicious background to the opening of a second phase of the talks on Hong Kong on 12 July. Both sides wished to preserve the prosperity and stability of the territory. He hoped that we could develop a common understanding to achieve a mutually satisfactory outcome. He himself viewed the talks as an opportunity for the two sides to work together. Mr Chen said he too hoped for a successful result. There were no great problems in Anglo-Chinese relations, Hong Kong was the only outstanding issue. Many countries were concerned that there should be a satisfactory resolution to the question, An intersting coment for

the Antrenador to make.

Distribution:

Private Secretary PS/Mr Luce

FS/PUS

Mr Giffard

Mr Donald

HKD TRED

HKK040/1

↑

CH218

Far Eastern Department

8 July 1983