PRC MEETING ON US-CHINA ECONOMIC RELATIONS, 30 APRIL, AT 0930 HOURS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83B00100R000300010005-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 16, 2016
• Document Release Date: December 1, 2004
• Sequence Number: 5
• Publication Date: April 27, 1979
• Content Type: MF

Approved For Release 20087'1ZT2T:JIA=RDP83B00100R000300010005-8
NFAC No. 2181-79
THE DIRECTOR OF CENTRAL INTELLIGENCE
27 April 1979
National Intelligence Officers
MEMORANDUM FOR:
FROM:
SUBJECT:
Deputy Director, National Foreign
Assessment
National Intelligence Officer for China
PRC Meeting on US-China Economic
Relations, 30 April, at 0930 hours
1. Action Requested: Review attached materials on
issues to be discussed at the PRC meeting, which deal with
some of the subjects to be addressed by Secretary Kreps
during her trip to China.
2. Background: Secretary Kreps will be visiting China
? May 7-17 as part of our program to normalize US-China economic
relations. The major issues in this regard were reviewed at
the 13 March PRC meeting (see Summary of Conclusions of this
meeting at Tab B), in which it was noted that Secretary Kreps
might:
a. Continue negotiations on a trade agree-
ment, though progress was likely to be slow with
no final agreement anticipated during the Kreps
visit;
b. Initial an agreement on business
facilitation;
c. Undertake discussions with the Chinese
on other economic matters as well as on science
and technology-related elements in the US-China
relationship.
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3. The Treasury memorandum on the 30 April PRC meeting
(Tab A) states that the purpose is once again to review the
status of US-China economic relations, with focus directed on
a US-China maritime agreement. The status of trade, textile,
and civil aviation agreements will also be reviewed and are
described in the Treasury memorandum. It is anticipated that
all these subjects will be raised by one side or the other
during Secretary Kreps' visit. There is some difference of
opinion on what position we should take regarding certain
aspects of the maritime agreement (see Options, p.4 of
Treasury memo), and the PRC will be asked to sort these out.
Secretary Kreps will be prepared to request the Chinese to
resume early negotiations on an aviation agreement, but will
not engage in the textile negotiations (which are being con-
ducted separately) except to refer to them.
4. The maritime and aviation agreements are not, how
ever, basic elements in US-China economic relations. Much
more crucial are China's desire for MFN (most recently ex-
pressed by Deng Xiaoping to two Codels), and, to thisend,
willingness to move ahead rapidly on a trade agreement. Sec-
retary Kreps is now prepared to initial such an agreement in
Beijing, ad referendum to Washington, if one can be worked out
prior to or during her visit by a special team which leaves
for China this weekend. There is one US:priviso: completion
of the claims-frozen assets agreement, regarding which the
Chinese have been asking for textual revisions that we cannot
accept; namely, a listing of all persons in the US with claims
against China. Nor will we finalize the trade. agreement until
the Chinese come to terms with us on limiting certain cate-
gories of their textile exports to the US. Our position on
trade/claims versus assets/textiles was worked out privately
last week by Secretaries Blumenthal, Vance and Kreps, but
was considered too sensitive to discuss before the full cast
of characters attending the 30 April PRC meeting.
5. There is no specific intelligence input, but in the
event the subject arises a selection of NID items on China's
revision of its economic priorities and related questions
(foreign exchange situation and energy developments) is at
Tab C.
Attachment:
A - Treasury Memo
B - Summary of Conclusions
C - NID Items
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