TNAG-1341-FCO40-17721-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Beijing-fo-1985 — Page 16

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CONFIDENTIAL

UNION CLOSELY HOWEVER TO ENSUPE THAT SHE DID NOT SIMPLY MOVE SS205 BEYOND THE URALS, BECAUSE THAT WOULD NOT BE REAL DISARMAMENT. THERE WERE TWO OTHER SOURCES OF IMBALANCE WHICH HAD TO BE DEALT WITH IN DISARMAMENT TALKS: FIRST, THE SOVIET UNION POSSESSED ENORMOUS STOCKS OF CHEMICAL WEAPCHS AND, SECONDLY, THE SOVIET UNION HAD AN ANTI-SATELLITE SATELLITE CAPABILITY. IT WAS ONLY WHEN THE AMERICANS HAD SHOWN THAT THEY COULD DEVELOP AN EVEN MORE SOPHISTICATED CAPABILITY IN THIS SECOND AREA THAT THE SOVIET UNION HAD BEEN PERSUADED TO RETURN TO THE NEGOTIATING TABLE.

5. DENG ASKED FFOR THE PRIME MINISTER'S VIEW OF GORBACHEV. THE PRIME MINISTER SAID THAT SHE HAD ENJOYED MEETING HIM AND FELT THAT SHE COULD DO BUSINESS WITH HIM. THE SOVIET UNION CONTINUED TO STATE THAT THE US WAS NOT SINCERE IN WANT ING DISARMAMENT. BUT SHE BELIEVED THAT PRESIDENT REAGAN WANTED ARMS REDUCTION TO BE ONE OF THE ACHIEVEMENTS OF HIS SECOND TERM IN OFFICE. FOR THAT TO BE ACHIEVED TRUST WAS NECESSARY. DENG ENQUIRED WHETHER THE PRIME MINISTER HAD ASKED GORBACHEV WHETHER THE SOVIET UNION WAS SINCERE IN WANTING TO DISARM. THE PRIME MINISTER SAID THAT SHE HAD DRAWN HER OWN CONCLUSIONS. BUT IT WAS IN SOVIET ECONOMIC INTERESTS TO REDUCE THE BUJDEN OF ARMAMENTS.

6. DENG ASKED THE PRIME MINISTER TO TAKE WITH HER HIS SINCERE REGARDS TO PRESIDENT REAGAN AND HIS CONGRATULATIONS ON HIS RE-ELECTION. HE ASKED THE PRIME MINISTER TO CONVEY HIS HOPE THAT IN PRESIDENT REAGAN'S SECOND TERM GHINA AND THE US WOULD COOPERATE IN SOLVING THE QUESTION OF TAIWAN. IF THE US AND PRESIDENT REAGAN THOUGHT THE CONCEPT OF ''ONE COUNTRY, TWO SYSTEMS'' WAS DESIRABLE, THERE WAS MUCH THEY COULD DO IN THIS RESPECT. THE PRIME MINISTER SAID THAT SHE WOULD CERTAINLY CONVEY THIS MESSAGE. THE US HAD WELCOMED THE

HONG KONG AGREEMENT.

EVANS

LIMITED

FED

SOU.D.

ACDA

DEF.D.

NAD

NEWS. D

Puss

PS

PLANNINGSTAFF

PS/MR LUCE

PS(MR. RIEKIND

PS/PUS

SIR. W. HARDING

MR. GOODALL Me. Wilson

MR. JENKINS MR. WESTON

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MUR. DEREK THOMAS CONFIDENTIAL