TNAG-1711-FCO40-2389-Future-British-Consulate-General-in-Hong-Kong-HMS-Tamar-1987 — Page 33

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irritated by US withdrawal of funds from the UN Family

Planning Programmes as a mark of displeasure at China's

alleged birth control policy of forced abortion.

3. China continues to see Soviet expansion as a serious

threat to her security and maintains there can be no

normalisation of relations with the Soviet Union until

the "three obstacles" (Soviet occupation of Afghanistan,

Soviet support for the Vietnamese occupation of Cambodia

and the Soviet military presence near the Chinese border

and in Mongolia) have been removed. Gorbachev's speech

in Vladivostok in July 1986 made clear Soviet willingness

to improve relations, and held out the possibility of a

new approach to the border dispute. Deng Xiaoping

replied publicly that China also wished to see an

improvement in relations and reiterated the need for

progress on the "three obstacles", particularly Soviet

support for the Vietnamese occupation of Cambodia.

Meanwhile, China is prepared to do business with Russia.

Economic, technical and cultural relations have continued

to develop with two way trade rising from 2.3 billion

dollars in 1985 to 2.6 billion dollars in 1986 (China's

figures).

4.

Since the summer of 1986 there has however been rapid

development of China's Government and Party relations

FC6AAK

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