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TO MEDIATE ABOUT: THE SOVIET UNION SHOULD WITHDRAW.
7.
TURNING TO THE UNITED STATES, HU YAOBANG SAID THAT CHINESE
RELATIONS WERE DEVELOPING STEADILY AND SATISFACTORILY. ALTHOUGH
CHINA DID NOT AGREE WITH US POLICY ON SOME INTERNATIONAL ISSUES,
THEY DID NOT INTEND TO CRITICISE THE USA VERY OFTEN. IF THERE
WAS GOOD CO-ORDINATION, THERE WOULD BE LESS CRITICISM. PROBLEMS
CONTINUED OVER TAIWAN. CHINA WOULD LIKE THE UNITED STATES TO
URGE TAIWAN TO AGREE TO EXCHANGES WITH CHINA IN THE FIELDS OF
POSTAL SERVICES, AIR LINKS, TRADE AND SHIPPING. IF THE US COULD
EXERT SOME INFLUENCE WITH THESE ISSUES, NO HARM WOULD BE DONE TO
TAIWAN AND THE UNITED STATES WOULD EARN EVEN MORE PROFOUND
FRIENDSHIP WITH CHINA.
8. IN TALKS ABOUT ECONOMIC MATTERS, MINISTERS STRESSED,
PARTICULARLY TO LI PENG, OUR WISH TO ESTABLISH CLOSE COOPERATION
IN THE FIELD OF TRADE, ENERGY AND EDUCATION. LI WELCOMED THE
DECISION TO GRANT CHINA PNDS 300 MILLION WORTH OF DEVELOPMENT LOANS,
AND HOPED THAT ECONOMIC RELATIONS WOULD BE EXPANDED EVEN FURTHER.
BUT THIS WOULD REQUIRE BRITAIN TO IMPORT MORE GOODS FROM CHINA AS
WELL AS PROVIDE MORE DEVELOPMENT LOANS AND SET UP MORE JOINT
VENTURES. THE CHINESE EXPRESSED INTEREST IN SOME SPECIFIC
CONTRACTS INCLUDING A POSSIBLE ORDER FOR SPECIALISED CONTAINER
SHIPS, FIBRE OPTICS PROJECTS AND POWER STATIONS. IN TURN
MINISTERS RECOGNISED CHINA'S NEED TO EXPORT MORE. DEVELOPMENT
LOANS HAD ONLY JUST BEEN INTRODUCED: THE AMOUNT WOULD BE KEPT
UNDER REVIEW BUT MOST BUSINESS MUST STILL BE ON COMMERCIAL TERMS.
9. COMMENT: HU CAME ACROSS AS ANIMATED AND OUTGOING. HE
HANDLED HIS PUBLIC RELATIONS WELL (GOOD PHOTOGRAPHS SITTING ON
THE GRASS WITH CHILDREN AT STRATFORD) AND AVOIDED MAKING ANY OF
THE GAFFES IN PRIVATE OR IN PUBLIC FOR WHICH HE HAS BEEN FAMOUS
IN THE PAST. HIS PRESENTATION WAS STRAIGHTFORWARD AND DIRECT
ALTHOUGH HE SOMETIMES HAD DIFFICULTY IN FINDING THE RIGHT WORD OR
LINE TO TAKE AND HAD TO BE PROMPTED BY LI PENG. LI BY CONTRAST
WAS MORE RESERVED, HUMOURLESS AND HARD HEADED: BUT WHEN ON HIS
OWN SUBJECT LI WAS WELL INFORMED AND CONCISE.
10. THE CHINESE SEEMED WELL PLEASED WITH THE VISIT. SO WERE WE.
THEY WERE AT PAINS TO REASSURE US THAT THEIR POLICIES ARE HERE TO
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