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(VI) TECHNICAL CONSULTANCIES, CAPITAL AID AND MIXED CREDIT.
15. I HOPE THAT THE PRIME MINISTER WILL BE ABLE TO SAY THAT ODA WILL BE INCREASING THE AMOUNT OF MONEY ALLOCATED TO CHINA FOR TECHNICAL CONSULTANCIES (SEE ODA'S EXPENDITURE FORECAST FOR THE PRC AT 30 SEPTEMBER 1984). I AM NOT INCLINED TO RECOMMEND THAT SHE SHOULD OFFER CAPITAL AID TO CHINA (THOUGH I HOPE THAT THIS POSSIBILITY CAN NOW BE RE-EXAMINED ON A LONGER TIME-SCALE). THE CHINESE MAY, HOWEVER, ASK ABOUT LOW INTEREST LOANS. ON THIS, SUGGEST THAT THE PRIME MINISTER SHOULD BE READY TO SAY THAT CHINA IS NOW ELIGIBLE TO RECEIVE MIXED CREDIT FOR PARTICULAR PROJECTS.
(VI) CULTURE
16. I CAN THINK OF NO PARTICULAR POINTS FOR THE PRIME MINISTER TO MAKE, OTHER THAN TO NOTE THAT OUR EXCHANGES ARE DEVELOPING WELL.
(Velsief) AGREEMENTS
17. DEPENDING ON HOW FAR CONSIDERATION HAS GONE ON THIS SUBJECT IN LONDON, RECOMMEND THAT THE NEGOTIATION OF A NUCLEAR COOPERATION AGREEMENT SHOULD BE PROPOSED. THERE MAY ALSO BE SOMETHING TO SAY ON THE NEGOTIATION OF THE SINO-BRITISH HIPPA IN THE LIGHT OF PROGRESS IN THE DISCUSSIONS IN PEKING THIS MONTH, AND ON A SPACE MEMORANDUM OF UNDERSTANDING WHICH WE ARE PUTTING TO THE CHINESE THIS WEEK.
MULTILATERAL AMS
18. AGREE WITH BOYD THAT WE SHOULS PROPOSE THE FOLLOWING:
(A) EAST-WEST AND ARMS CONTROL. THE IMPORTANCE OF MILITARY LIAISON AND MILITARY WISITS COULD BE MENTIONED UNDER THIS SUBJECT.
(B) SINO-SOVIET RELATIONS. INDO-CHINA AND AFGHANISTAN COULD BE COVERED UNDER THIS HEADING.
(C) SOUTH ASHA. THE SINO-INDIAN BORDER TALKS AND RELATIONS WITH PAKISTAN ARE OBVIOUS TOPICS.
(D) KOREA.
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