CONFIDENTIAL
1410
MDHOA. 1164
4. It would, as you say, be difficult for the Foreign Secretary to fit in a meeting with Lord Prior before the latter's departure for China. But Mr Goodlad would be able to do so. We propose that Mr Goodlad should bring Lord Prior up to date, and tell him that if the Chinese Leadership ask about political issues he should say on behalf of the Prime Minister that HMG wished to see good cooperation with China, and to establish talks on electoral issues as ministers had made clear publicly. We have given Lord Young the same point to use on his own visit to China at about the same time.
5. The case for the Prime Minister seeing Lord Prior is also somewhat weakened by the evidence in recent days that GEC are continuing to win significant business in China, despite the general threats by the Chinese side against British business interests.
Incidentally, the Vice President referred to by Lord Prior is probably Rong Yiren (formerly Head of the China International Trust and Investment Coporation, a major Chinese partner of GEC).
6.
HURD
YYYY
MAIN
23
HKD
FED
PS
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DISTRIBUTION
23
PS/MR GOODLAD
MR COLES
MR HUM
2
PAGE CONFIDENTIAL
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