V
CHINA:
CHINA:
CONFIDENTIAL
STATE VISIT FOLLOW UP
POLITICAL SITUATION
foreign
1. Since Deng Xiaoping's return to power in 1978, China's and domestic policies have been based on pragmatism in place of ideology, and are directed towards China's economic modernisation through peaceful cooperation with other countries. Following the resignation of General Secretary Hu Yao Bang in January, the present Chinese leadership has reiterated its full commitment to its policies of economic reform and "open door" to the outside world. There may be some slowing down of these policies in the wake of Hu's resignation and again following Deng's eventual departure from the political scene (either through death, or retirement), but a substantial reversal of direction is unlikely.
China is permitting
a gradual rapprochement to take place with the Soviet Union, but links with Japan, her other Asian and Pacific neighbours, Europe and the US still take priority. China has in particular encouraged greater unity within and between East and West Europe and the non-aligned as counterweights to the superpowers. Apart from her opposition to Vietnam's occupation of Cambodia, and continuing border disputes with India, China's relations with other countries in Asia and elsewhere are reasonable, and improving.
UK/CHINA
2.
Following the Sino-British Joint Declaration on the question of Hong Kong in 1984, UK/China relations have attained a new breadth and warmth. The visits to the UK by Premier Zhao in 1985 and the Communist Party General Secretary Hu in 1986, and The Queen's State Visit to China in October 1986, have set the seal on the bilateral relationship. There are now new opportunities for further development and thickening up of the relationship.
FC3AAU
CONFIDENTIAL
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