TNAG-1622-FCO40-2236-Relations-between-Hong-Kong-and-China-1987 — Page 219

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work hard to maintain this momentum). The second and

fourth interests, stopping China and the USSR becoming

significantly closer, and building up an understanding

about the UK among young Chinese, are two sides of the

same coin; the goal of ensuring that China's role in

foreign affairs favours the West, rather than the

USSR/Eastern bloc. I agree with Sir R Evans' judgement that Sino-Soviet relations will never regain the closeness they possessed in the 1950s. I also agree that, for our part, the UK has made good progress, through the increased provision of scholarships and an enlargement of our two-way visit programme. But there is a very long

way to go before sufficient Chinese have seen and

appreciated what the west can offer, to ensure that China

remains permanently and favourably disposed.

14. On our short-term objectives, we have also achieved

a high level of success. Apart from progress on Hong Kong, we have reached agreement with the Chinese

(subject to drafting and signature of an agreement) on

claims; we have had a very successful State Visit to

China and the inward visit of Hu Yaobang (successful

regardless of the fact that he has now had to resign); we

have secured the Daya Bay contract for GEC; and we have concluded an investment promotion and protection

agreement. We have been less successful on turning our

soft loan money into new business. This, together with

the further liberalisation of COCOM towards China,

remains our principal interest for 1987.

R Racherr

Richard Fletcher-Cooke

FC4AAK

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