B
success were the 27% increase in British exports; agreement
on the Guangdong Nuclear Projet; the offer of soft loans;
progress on Agreements; the strong programme of trade-
related high level visits; the opening of the Shanghai
Consulate-General; the resolution of visa difficulties for
Chinese business visitors; and the increase in numbers of
Chinese students in Britain (together with agreement in
principle to accelerate this through Sir Y K Pao's
scholarship scheme), Premier Zhao Ziyang's successful visit
provided a useful stimulus, and made the progress more
visible.
11. 1986 could be a vintage year, although trade will
probably not grow at the 1985 rate. The highlight will be
the State Visit to China (12-18 October); Party General
Secretary Hu Yaobang's visit to Britain (8-11 or 12 June)
will set the scene.
Developments in 1985 do not Call for
any fundamental changes in policy. A detailed list of 1986
acha
objectives is attached.
Currently the most prominent
specific objectives are to ensure that the major visits are
successful, and effectively complemented by others
(particularly to Britain by younger Chinese leaders); to
maximize the political and commercial impact of the soft
loan package and to make the most of the new funds available
for Chinese students to study in Britain (particularly under
Sir Y K Pao's scheme). The beginning of formal negotiations
on our claims in May will also require careful handling to
ensure that the issue currently the only substantial non-
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J19ABD
CONFIDENTIAL
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