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enable us somehow to retain effective power in Hong Kong
after 1997 or to milk the territory for the benefit of
HM Government before then (two private Chinese fears).
The briefing package does not yet include up to date
material on arms control in the light of recent US
statements about SALT II, since the situation is
developing rapidly. We will send supplementary
material on this later in the week.
At the talks themselves we recommend that the Prime
Minister should start with international topics such
as follow up to the Economic Summit; the prospects for
East/West relations; and arms control. Hu Yaobang
himself has no government position and therefore no
official responsibility for economic matters, and the
Chinese have said that he will not wish to discuss
commercial issues or other bilateral matters in any
detail. Nonetheless, there are some points that can use-
fully be made in addition to the line suggested on
Hong Kong : these are reflected in the briefing.
We envisage participants in the talks as follows :
UK side
Prime Minister
Foreign Secretary
Sir Richard Evans
(Ambassador, Peking)
Dr Wilson (Assistant Under Secretary, Asia)
Mr Powell
Chinese side
General Secretary Hu Yaobang
Vice-Premier Li Peng
Vice-Foreign Minister
Zhou Nan
Mr Joseph Ren (Interpreter)
Ambassador Hu Dingyi
Madame Zhang Youyun
(Interpreter)
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