1.
SUMMARY OF PAPERS ENCLOSED BY LORD CALLAGHAN
The Interaction Council (Chairman, Helmut Schmidt, members include many former Heads of Government) met in Shanghai in May. Its Final Report covers the following main areas:
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China (praise for economic and social development, concern about "regionalism" and environmental damage, call for a greater international role, no mention of human rights).
Collapse of Soviet Union (West should set up a five year assistance programme, not focus exclusively on Russia, convene a conference of all states in the region to conclude a security treaty).
North Korea should rejoin the NPT.
Africa (A particular focus this year, on the basis of a Report by Lord Callaghan. With the end of the cold war, marginalisation of Africa should end; special measures of debt relief required; aid to Africa should be on the Tokyo Summit agenda.)
World Trade (support for GATT agreement)
Population and Environment (importance of curbing former, and living up to Rio Summit commitments on latter).
Lord Callaghan had ninety minutes with President Jiang Zemin on Hong Kong.
Lord Callaghan took a generally supportive line on Hong Kong, emphasising the need for negotiation as the best way to achieve agreement on the electoral issues, and urging the Chinese to get down to substance in the talks.
Jiang Zemin said that he had been closely involved with the Hong Kong issue since 1989. He declined to discuss the talks in detail, but took an upbeat line about the prospects of reaching agreement in them, and was also positive about new Airport. He seemed relaxed and in charge (this was during Li Peng's absence from the scene).
call.pm/DEMOC
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