TNAG-1462-FCO40-1988-Visits-by-Chinese-officials-to-the-UK--including-visit-by-Hu-1986 — Page 9

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OF 080555Z MAY 86

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HKK 02612 RECEIVED IN REŠISTRY 19 MAY 1986

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INDEX

INFO ROUTINE MOSCOW, WASHINGTON, TOKYO, HONG-KONG-

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Action Taken

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VISIT OF HU YAOBANG: CHINA EXTERNAL

1. THIS TELEGRAM IS THE FIRST IN A SERIES WHICH WE ARE SENDING IN PREPARATION FOR HU'S VISIT. WE SHALL BE TELEGRAPHING SHORTLY ON CHINA INTERNAL, ON HU HIMSELF, AND ON LIKELY CHINESE OBJECTIVES FOR

HIS VISIT.

2. CHINA'S FOREIGN POLICY REFLECTS DOMESTIC PRE-OCCUPATIONS WITH MODERNISATION. TO ACHIEVE MODERNISATION, CHINA NEEDS A STABLE INTERNATIONAL ENVIRONMENT, AND ALSO PRODUCTIVE ECONOMIC AND TECHNOLOGICAL EXCHANGES WITH THE WEST AND, TO A LESSER EXTENT, WITH THE SOVIET UNION AND MORE ADVANCED EASTERN EUROPEAN COUNTRIES. CHINA NOW HAS DIPLOMATIC RELATIONS WITH MORE THAN 130 COUNTRIES.

3. CHINA'S FOREIGN POLICY ALSO REFLECTS A CONCERN WITH THE SECURITY

OF ITS OWN BORDERS. THE CHINESE REMAIN CONCERNED THAT SOVIET

EXPANSIONISM CONSTITUTES A SERIOUS THREAT TO GLOBAL STABILITY AND TO CHINA'S OWN SECURITY. SOVIET ACTIONS IN AFGHANISTAN AND SUPPORT

OF THE VIETNAMESE OCCUPATION OF CAMBODIA HAVE INCREASED CHINESE

CONCERN.

4. A MAIN THEME OF CHINESE FOREIGN POLICY IS THE AVOIDANCE OF

ALLIANCES. THE CHINESE HAVE STATED FREQUENTLY THAT THEY WILL NOT FOLLOW OR BECOME DEPENDENT ON EITHER SUPERPOWER, WHOSE RIVALRY CHINA PROFESSES TO CONSIDER THE MAIN THREAT TO WORLD PEACE. IN PRACTICE, CHINA REMAINS A GOOD DEAL CLOSER TO THE UNITED STATES THAN TO THE

SOVIET UNION, ACCORDING TO AMERICAN STATISTICS, IN 1985 SINO-US TRADE INCREASED BY 27% TO A TOTAL VALUE OF USD7.7 BILLION. LAST

MONTH AGREEMENT WAS REACHED FOR THE SALE OF ADVANCED ELECTRONICS TO THE VALUE OF USD550 MILLION FOR USE IN CHINA'S F8 FIGHTER. DURING

PRESIDENT LI XIANNIAN'S VISIT TO THE UNITED STATES IN 1985, A

NUCLEAR CO-OPERATION AGREEMENT WAS SIGNED. HOWEVER, THERE REMAIN DIFFICULTIES IN THE SINO-US RELATIONSHIP, OF WHICH THE MOST IMPORTANT IS THE CHARACTER OF US RELATIONS WITH TAIWAN, INCLUDING

ARMS SALES TO TAIWAN.

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