TNAG-1622-FCO40-2236-Relations-between-Hong-Kong-and-China-1987 — Page 225

CONFIDENTIAL

I

the links of these countries with the Soviet Union and to

encourage rapprochement between Eastern and Western Europe. believe that we shall see a lot more Chinese diplomatic activity in, and in relation to, Eastern Europe during 1987.

12. Among issues, it is still the regional issues which concern China most. On these, to box the compass, 1986 was a worrying year over Korea (North Korea gravitated further towards the Soviet Union); a disquieting year over Taiwan (China cannot have welcomed the signs of emerging nationalism); a satisfactory year over Indochina (the troubles of Vietnam must have given comfort); a frustrating year over the boundary dispute with India; and a year which held out some promise over Afghanistan.

Sino-British Relations

13. The biggest event in Sino-British relations was of course the State Visit of Her Majesty The Queen to China in October. The Chinese did everything in their power to make the visit successful. The Queen met all four of China's senior leaders and was received with

a fanfare, and the greatest courtesy, wherever she went. Between one and two million people turned out to watch her drive through the streets of Shanghai. The visit was a great occasion. It also set the seal on the far happier relationship between the United Kingdom and China which has developed during the past few years and especially since the signature of the Joint Declaration on the Question of Hong Kong in December 1984.

14.

I believe that, as a nation, we have four principal interests

in relation to China:

a)

to secure a square deal for Hong Kong under the Joint Declaration;

b)

to stop China and the Soviet Union from becoming significantly closer politically;

c)

to obtain as large a share as possible of the expanding

Chinese market; and

d)

to build up as large a stock as possible of knowledge and understanding about our country among young Chinese.

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