CONFIDENTIAL
In
China will participate in a global disarmament conference. practical terms China accepts the need in present circumstances for both Western Europe and Japan to rely for their security on the US nuclear umbrella. While urging both East and West to resume arms reduction talks, the Chinese have expressed their understanding of recent missile deployments in Western Europe. Despite cultivating the European peace movements, China is no advocate of unilateral disarmament.
8. China is also seeking to maintain its influence in the Third World, despite disavowal of aspirations towards leadership of the Third World movement. On the other hand China's overseas aid has declined in recent years; and China is increasingly a competitor with the Third World through its exports of goods and of labour and in the search for credit and aid from the developed nations and international financial institutions.
CONFIDENTIAL
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