§ 26. Mr. Adleyasked the Secretary of State for Industry if he will make a statement on his recent visit to China.
§ Mr. VarleyI visited China from 24 February to 5 March at the invitation of vice-Premier Wang Zhen. I was accompanied by senior representatives of British industry.
My visit marked an important stage in the development of our relations with the Chinese Government and people and in the role Britain can play in China's modernisation. While in China I had discussions on a wide range of economic, commercial, industrial and political questions with Premier Hua Guofeng, vice-Premiers, Li Xiannian and Wang Zhen, Minister of Foreign Trade, Li Qiang, and other senior Chinese Ministers.
We discussed prospects in a large number of industrial sectors, including coal and minerals, chemical and steel plant, vehicles and components, food and drink products, light engineering, aerospace, shipbuilding, and power generation. Substantial progress was made in several of these and this should be reflected in specific contracts in the months ahead. New contacts were also made in shipping and other areas.
My visit culminated in the signature of an economic co-operation agreement, 482W copies of which I have today placed in the Library of the House. The agreement provides for a target of $14 billion for trade and other economic activity between Britain and China between now and 1985. This is $4 billion higher than the initial figure announced after the first round of discussions on the agreement during vice-premier Wang Zhen's visit last November.
At the same time the United Kingdom Government also agreed to support export credit facilities of an initial tranche of US $5 billion for exports from the United Kingdom to China.