TNAG-1391-FCO40-1863-Future-of-Hong-Kong-briefing-for-meetings-and-visits-1985 — Page 149

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UK/CHINA RELATIONS

GENERAL

1.

Hong Kong remains a central element in UK/China relations. The Joint Declaration signed by the Prime Minister and Premier Zhao in Peking on 19 December 1984 was a major bilateral achievement and is widely recognised as such internationally. Wider bilateral relations are at their highest level ever. Ministerial and political exchanges are increasing rapidly as are contacts and exchanges in all other fields. Premier Zhao Ziyang will visit the UK from 2 to 8 June and HM The Queen has accepted in principle an invitation to make a State Visit to China.

TRADE

UK

2. The UK market share, although small, is increasing. exports to China in 1984 were £317m and imports £278m. Following the conclusion of the Hong Kong negotiations, the Chinese have indicated that they will give political support to British commercial efforts. Lord Young, Minister without Portfolio, led a high-level trade delegation to China in March. This was successful both in demonstrating to the Chinese our commitment to increasing trade and in stimulating considerable commercial interest at home. Areas offering the best opportunities for British exporters include energy (offshore oil, gas and coal), aerospace, telecommunications and power generation and transmission. But the Chinese are making it increasingly clear that many British companies will only be favoured if HMG can offer concessionary finance.

VISITS

3.

Agriculture

Party General

Other Chinese visitors expected in 1985 are the Ministers for Culture (May), Environment (May), (July) and possibly Textiles and Electronics. Secretary Hu Yaobang has also accepted the Prime Minister's invitation to visit Britain (no dates).

4. Visits to China later in 1985 are likely to include the Secretaries of State for Agriculture and Energy, the Minister of Transport, and Mr Luce (FCO) and Mr Butler (MOD, Defence Sales). The Chairman of Lloyds is at present in China and the Lord Mayor of London will visit in the autumn. Sir Antony Acland will visit China in June.

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UN/CHINA RELATIONS