Relaxation of Measures
9.
We see no justification for an early relaxation of the EC measures. Repression is continuing and the crackdown on dissident
EC Political Counsellors opinion is if anything intensifying.
meeting in Peking took the same view judging that the time had not yet come for lifting measures either in terms of events in China or in terms of Western public opinion. They also judged that other Western partners were not at the moment on the point of reaching the
Western consensus.
And they will
To contemplate any
10. We know that the Chinese are looking out for any early signs of relaxation among Western partners and expect that competitive pressures will soon cause a dilution of the measures. be certainly keen to exploit any such divisions. relaxation of the measures now would therefore send the wrong signals to the Chinese leadership over the strength of Western feeling about their actions and would encourage them in the view that they only had to sit tight for all the Western measures to be gradually wound down. Similarly any relaxation would not be understood by British public opinion. Human rights groups here are focussing increasingly on China and the possibility that action could be taken against student leaders or dissidents means that
Given China is likely to remain fairly high in public attention. the extent of the current repressive activity the lifting of martial law in Peking (which some expect to happen shortly) would not in itself be sufficient to justify any relaxation of the measures.
11.
On the question of international financial institution loans, these are normally to be settled on economic and technical considerations rather than political considerations. However the current situation in China continues to raise sufficient uncertainty about economic policies and particularly over the pace and direction economic reform and of moves towards a market economy, to make any
departure from the G7 line at the moment premature.
Message to Deng Xiaoping
12.
Following rumours of the imminent death of Deng Xiaoping we consulted EC partners about the possible form and content of a message of condolence. In doing so we put forward that a short,
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