TNAG-1464-FCO40-1991-Visits-by-Chinese-officials-to-the-UK--including-visit-by-Hu-1986 — Page 36

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MR RENTON STRESSED THAT BRITAIN WAS AT THE FORE-

FRONT OF THOSE PRESSING FOR FURTHER RELAXATION OF THE COCOM

FROM BRITAIN.

RULES. HE HOPED THAT BRITISH FIRMS WOULD NOW WIN FIBRE OPTICS

CONTRACTS IN THE WAKE OF THE AGREEMENT WE HAD OBTAINED FROM OUR

COCOM PARTNERS. ZHOU NAN COMMENTED THAT THE CHINESE GOVERNMENT

APPRECIATED THE EFFORTS OF THE BRITISH GOVERNMENT IN HELPING TO

RELAX RESTRICTIONS ON EXPORTS TO CHINA SEMI COLON HE HOPED THAT

THESE WOULD CONTINUE UNTIL THE RESTRICTIONS WERE WHOLLY LIFTED.

ON TRADE GENERALLY, HE SAID THAT THE 20 PER CENT INCREASE IN TWO

WAY TRADE IN THE PAST YEAR WAS ENCOURAGING BUT NOT ENOUGH.

MR RENTON SAID THAT BRITAIN UNDERSTOOD THE NEED FOR THE CHINESE

TO GENERATE EXPORT REVENUE. WE WOULD BE GLAD TO CONSIDER WAYS

OF INCREASING KNOWLEDGE IN BRITISH MARKETS OF WHAT CHINA HAD

TO OFFER.

4.

MR RENTON REFERRED BRIEFLY TO AIR SERVICES AND BRITISH

AIRWAYS' HOPES THAT THEY COULD CONTINUE TO PICK UP PASSENGERS

BETWEEN HONG KONG AND PEKING. HE HOPED THAT THE MATTER WOULD BE

RESOLVED IN THE FORTHCOMING PEKING TALKS. ZHOU NAN'S ONLY

RESPONSE WAS TO SAY THAT THE MATTER WAS BEING DISCUSSED BETWEEN

THOSE RESPONSIBLE.

5. MR RENTON REFERRED TO THE RECENT NEGOTIATIONS ON CLAIMS

SAYING THAT IT WAS ANACHRONISTIC THAT THESE WERE STILL OUT-

STANDING WHEN SINO/BRITISH RELATIONS WERE SO GOOD. HE UNDERSTOOD

THAT GOOD PROGRESS HAD BEEN MADE IN MAY IN PEKING, AND HOPED

THERE WOULD NOW BE SUBSTANTIAL PROGRESS IN THE TALKS IN LONDON

IN THE VERY NEAR FUTURE. THERE WAS MUCH INTEREST IN THE TALKS

IN THE CITY, WHERE BANKERS WERE STRESSING THE NEED FOR CHINA TO

HAVE ACCESS TO THE LONDON BOND MARKET. ZHOU NAN SAID THAT THE

ISSUE WAS ONE LEFT OVER FROM THE PAST, AS THE HONG KONG PROBLEM

HAD BEEN. THE HONG KONG ISSUE HAD BEEN FAR MORE COMPLICATED BUT

HAD BEEN SOLVED. IT SHOULD BE POSSIBLE TO DO THE SAME WITH

CLAIMS, IF THE TWO SIDES LOOKED TO THEIR OVERALL INTERESTS AND

DID NOT QUIBBLE OVER ISSUES FROM THE PAST. THE CHINESE HAD

ADOPTED AN APPROACH BASED ON AN OVERALL PACKAGE. HE HOPED THE

BRITISH WOULD TAKE A FLEXIBLE ATTITUDE. WHEN CHALLENGED BY

MR RENTON SAYING THAT THIS SEEMED TO BE A FORMULA FOR THE UK TO

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