CONFIDENTIAL
Chinese have clearly indicated that they would like to increase their links with Western Europe. They wish to avoid dependence on a few sources of supply and also to stimulate competition. The Chinese support a strong Europe. Deng Xiaoping recently told the West German Chancellor: "We are convinced that Europe wants peace and we hope to see a united, coordinated and powerful Europe".
5.
China's other main concerns are regional. Japan is a special case with its close commercial and political links, despite a residue of suspicion left over from the war. In South East Asia the Chinese seek to oppose Vietnamese ambitions and generally to build up their relations with the countries of ASEAN. Recently China has shown increased willingness to deal with territorial problems with some of her neighbours. Border talks are to be held with India, and have been held with Bhutan and
Mongolia.
6.
Taiwan and the problem of reunification remains a major Chinese concern, brought further to the fore following the conclusion of negotiations over Hong Kong. Deng Xiaoping has described the recovery of Taiwan as one of the three main tasks for this decade. Chinese overtures to Taiwan presented under the concept of "one country, two systems" have offered even greater autonomy than in the case of Hong Kong (Taiwan would be allowed to retain its armed forces). But these have met with a
stony response. American sales of arms to Taiwan remain a constant irritant in China's relationship with the United States. While China sees peaceful negotiations as the way reunification should be achieved, she has not explicitly ruled out the use of
force.
7.
On
On the wider stage, China has been playing an increasingly active role in international bodies. Chinese positions on many questions have become more constructive and better informed. arms control, China's position of principle remains that the super-powers must take the lead in nuclear disarmament: once they have substantially reduced their holdings of these weapons,
CONFIDENTIAL
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