TNAG-1464-FCO40-1991-Visits-by-Chinese-officials-to-the-UK--including-visit-by-Hu-1986 — Page 16

CONFIDENTIAL

8 -

We

Last year.

The United Kingdom had responded positively. were also taking a lead in securing relaxation of COCOM rules

in China's favour. We had some reason to believe that our

efforts would be successful. We shared the Chinese wish to

see an expansion of bilateral trade.

The Prime Minister continued that she hoped that a

solution could be found soon to outstanding governmental

claims. A settlement of these would give China access to the

London bond market. Hu Yaobang said that talks were going on.

He did not see the problem as being very difficult to solve.

The Prime Minister referred to difficulties over British

Airways' application to carry traffic on the Hong Kong Peking sector of their London/Peking service. We hoped that a

solution could be found. Li Peng said that talks were in

progress.

e

The meeting ended at 1800 hours.

C.D. POWELL

9 June 1986

EL3BEZ