TNAG-1343-FCO40-1773-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Beijing-fo-1984 — Page 121

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CONFIDENTIAL

Minister. The Indians are unlikely to agree until significant progress is made on the border issue.

China-Pakistan Relations

23.

China's excellent relations with Pakistan balance Soviet Union-

Indian relations. The Soviet invasion of Afghanistan strengthened the anti-Soviet side of the relationship. The Karakoram Highway, built by Chinese aid, opened in 1982, linking the two countries through Kashmir. China has shown concern at deterioration this year in Indo-Pakistan relations. But she would probably be reluctant to intervene militarily in any new Indo-Pakistan war.

Indo-Pakistan Relations

24. The long-standing tension in Indo-Pakistan relations eased briefly on Mrs Gandhi's death. But Indian suspicions of Pakistan's involvement with Sikh dissidence resulted in a severe down-turn. Substantial improvement is unlikely even after the Indian elections. India is extremely concerned at the prospect of Pakistan developing

a nuclear weapons capability.

Pakistan Internal

25.

President Zia is pressing ahead with plans for elections by 23 March, 1985. But no date is yet announced, nor any ruling on whether political parties could take part. Indications are they will not: candidates will stand as individuals. Zia has spoken

of "sharing" rather than the transfer of power. On 1 December he announced a referendum on 19 December, seeking public endorsement of the Government's Islamization policies. He said a "yes" vote would also signify his election as President for a further five years.

CONFIDENTIAL

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