Press Conference for Chinese correspondents

Question

Being one of the world's outstanding Heads of State, will you please make some comment on the current international situation and your predictions on changes in the world's political and economic structure?

Prime Minister

It is a particularly important day for us because we celebrate not only VE-Day in Europe, we are celebrating the victory in the Far East which came on August 15. We all—each and every country—do honour to our own dead and to those who were wounded in our own way. We remember that it was because of their sacrifices that we are able to live in freedom and justice now. That is something we must never forget.

We remember, too, that war came about in Europe because we attempted to appease a dictator. That has a lesson for us. It is that appeasement ends up by threatening the ability of a nation to preserve its own way of life. Had we, before the last war, kept our defences strong and made it perfectly clear to anyone who threatened us that he could not succeed, then it is possible that we might have avoided war. That lesson, I believe, we have now learned.

In the last 40 years of peace since 1945 we have learned that we must actively keep the peace by always being ready to defend the things which we believe in. Because none of us on our own would be enough we form alliances, both the NATO alliance and the European Economic Community for the trade, economic and political aspects. NATO is totally a defensive alliance. We threaten no-one, but we shall defend ourselves and keep our defences high enough to deter any would-be aggressor.

In this context we have much in mind the Soviet Union because of its activities in Afghanistan and those of its Vietnamese ally in Cambodia, and also because of its particular form of communism, which aims at world domination. We hope that one day each nation, however, powerful, will understand that every other nation has the right to choose its own way of life and to live in peace and security. [end p1]

We also recognise that we all, whatever our political views, have to live on the same planet and it is in the interests of us all not to have conflict again. We are therefore ready to enter into discussions with other countries, even those which are opposed to our ideals and way of life.

Something which strikes me is how much smaller the world has become in the last 40 years. We can get to one another's capitals very quickly. Our pictures are flashed into every home by way of television, so people know who the leaders of other countries are. They see programmes on the way of life in other countries. We learn far more about other countries than any previous generation has ever known, and the interest in them among ordinary people is heightened.

Now, all that is good, because it means that not only do leaders see one another, but we have a genuine interest among the people in the way in which other countries are developing. We are very impressed with the way in which China is raising the standard of living of her people; impressed that she is doing so by asking the question: “How can we get the best out of our own people, not only for the country, but the best for their own standard of living and the best so that they can look forward to an enriched future for their children?” I have found a quotation from a very early Chinese historian which was carried in People's Daily last year and sums it up very well: “The way to govern a country is first to enrich the people” . This is very true of what the Government of China is doing under Chairman Deng Xiaoping and Prime Minister Zhao Ziyang.

We are particularly interested in developments in South East Asia and pleased that the countries there are getting together much more than in the past. As you know, I recently visited some of them: Malaysia, Indonesia, Sri Lanka and Brunei, none of which I had been to before, and Singapore. Another important point is that we are, as leaders of our several countries, getting together more in international organisations. We have just had the Bonn Economic Summit where leaders of the major industrialised countries discussed in particular the problems of world trade. Many of us also meet in the General Agreement on Tariffs & Trade to discuss trading relations. We all are members of the United Nations. It will be 40 years in October since the United Nations was founded. So that will be a special occasion for us all to meet together there.

I think all of this is good for the future. But I come back again to the fundamental lesson which we learned from the last war: we must always be prepared to defend ourselves and our way of life.

[end p2]

Question

I turn now to your home affairs. What about the political and economic situation in Britain and its prospects? Also, what do you think is the role which Britain can play to defend world peace?

Prime Minister

Let us have a look at Britain!

It seems at the moment as if we have a paradox in a number of Western countries, including Britain.

Our output, in both manufacturing and services, is at a record level. We are producing more than we have ever produced before. Our standard of living is at an all-time high. The amount we are putting into investment, into new business, new industry, is at an all-time high. Now when I say those three things, you would think that it would add up to a boom economy, and in a way it does. And yet we have unemployment.

Now, part of the reason for that is the great technological revolution which is in progress. New technology enables one to produce more with fewer people. We encountered this problem before, when we were first mechanised in the Industrial Revolution and learned that new technology in the end creates more employment because it leads to the production of all kinds of goods that were not possible before. One has only to think: television, video recorders, all the things that we buy for the home, the washing machines and so on. Technology makes possible a higher standard of living.

The greatest challenges which face us are: to create more new businesses to provide employment; and at the same time to see that those not in work have a good basic standard of living through unemployment benefit and other help. Those are our challenges at the moment and they are challenges which affect Western Europe as a whole.

As regards our foreign policies, we keep our defence alliances in good repair and our defences strong. We believe that each country has to start from the basis of its geography and its history. Our geography means that we are staunch members of the European Economic Community. This will grow in co-operation and we have recently enlarged it to include Spain and Portugal. It is very important that each of us does all we can to enlarge areas of peace and stability. That is what we do in Europe.

Historically, we have bonds with the United States and with [end p3] Canada. Those countries are very much part of our daily life and we shall always reserve those bonds. Again, historically, because of the British Commonwealth—and please may I say that we are the only empire in history which accumulated great territories and then said: “You have a right to your independence! When you are ready, you take your independence, but you also, we hope, keep the friendship!” —we have links which girdle the world. We meet together in alternate years at Commonwealth Heads of Government Conferences and there are countries present from every continent. For us it is something which is really rather special. We get 44 countries coming together and we all speak one language. That means that we talk about similar things, we understand similar things, and keep up a network of friendships across the world.

We are also trying very much—particularly with the visits that I have made recently, including those to China, to Hong Kong, and to South-East Asia—to strengthen our friendships in that part of the world. We want to extend the hand of friendship across lands and across oceans so that we may build lasting peace and a higher standard of living for all our people.

Question

Would you please give us an outline of the United Kingdom's political and economic situation and prospects for development, as well as the role that the United Kingdom will play in world affairs in the future?

Prime Minister

The outlook is better than it has been at any time in history. This is because of the foresight, patience, diplomatic skill of both China and the United Kingdom: and the wisdom, talents, ability and understanding of the people of Hong Kong. We could not have come to the agreement on Hong Kong without those qualities. It is an agreement which is not only good for each of us, but an example to the rest of the world. I am very optimistic about the future.

You will have seen that business and trade in Hong Kong is developing extremely well. That means that people have confidence that the agreement that we reached is a good agreement and will endure.

We shall now be even more active in cultivating the new relationship that we have with China. It is in both our interests that we get more closely together. We both believe that each and every nation has the right to [end p4] determine its own future, the right to live in security; and we both wish to create a world in which there is more friendship and there is a higher standard of living. We shall help one another to achieve it.

In this context we are so much looking forward to Premier Zhao Ziyang's visit, so much! We have great expectations of it. I enjoyed my own visit to Peking enormously. I was very privileged to see Mr. Deng Xiaoping and Mr. Zhao Ziyang and your President Mr. Li Xiannian, and also Mr. Hu Yaobang, all on the same day. You gave me that lovely welcome, the guard of honour and the children. The talks we had were good. The signing of the Agreement was a great international event with the people of Hong Kong there to witness it. We had the great banquet in the Hall of the People. It was a great disappointment to me I was not able to see more of China on that occasion. But I repeat: it is a great delight to us that Mr. Zhao Ziyang is making an official visit to our country. We are making great preparations and he will receive an enormously warm welcome here. We shall attempt to show him everything that is best in Britain. We are also thrilled that The Queen will visit China. That will set the seal on our burgeoning and blossoming friendship.

Question

Would you like to send any messages through our paper to the Chinese people? We represent a wide range of readers in our country.

Prime Minister

Yes I would. I would like to say how very interested we are in all of their achievements; how much we wish to extend and deepen our friendship, not only between governments but between our peoples: how very much we admire their industriousness and their enormous artistic talents. The message is one of lasting and abiding friendship.

Question

Could you tell us what you expect to discuss with our Prime Minister?

Prime Minister

Many things. There are one or two points still to decide under the Hong Kong Agreement. We shall discuss increasing trade. We shall discuss regional problems and perhaps also the celebrations of the 40th anniversary of the United [end p5] Nations. I do not know whether Mr. Zhao Ziyang is going. It could be a chance, you know, for a great get-together of world leaders. I shall want in particular to take counsel with Premier Zhao Ziyang on Vietnam's invasion and occupation of Cambodia. As you know, the view that we take is that we shall not rest until Vietnam is completely out of Cambodia, because Cambodia too has a right to live in her own way under her own choice of government. I hope also to discuss with Mr. Zhao Ziyang how he sees matters in the Soviet Union under the new leadership. I anticipate that our views are likely to be similar. I do not think that there will be any very great change in the Soviet Union. But it is in all our interests that there be no conflict.

Question

You have just mentioned the Seven-Nations Economic Summit. Would you please tell us your impressions on this Summit? What do you think the Summit has achieved.… the positive results?

Prime Minister

We were agreed on the way to take forward economic policies. We must keep down inflation because that is vital for the future of investment. If people save for the future, they have a right to know that their savings will keep their value. We also—and indeed, I think China would agree with this—recognised the need to keep our expenditure within limits which we can afford as nations. I know China is equally keen on this.

We were very keen to enlarge world trade, because that is the way we can enrich one another. It was disappointing that we could not all agree on a date for a new round of international trade negotiations under the GATT. Six of us were prepared to do so but France could not join us on that. Nevertheless I believe in my heart of hearts that we shall get negotiations going in 1986.

We also looked to the Third World. We recognise that where we find famine and drought we must all help in practical terms. But that people need help not only with their immediate problems, they need help to develop their own agriculture and industries, so that they need not be dependent on other nations. As we all become richer, so the opportunities for trade with one another increase.

So it was really a very fruitful Summit in these respects. The disagreement was tiny compared with the amount of agreement. [end p6]

We also remembered the 40th anniversary of the ending of the Second World War and the 40 years of peace since then.

Question

May I just ask a small question? I remember when you were in Bonn you mentioned Japan and the United States, that they are doing well economically. You also mentioned it at your Press Conference …   .

Prime Minister

I believe in open trade as you know. Japan is not open. For one reason or another, her markets are not open to Western goods in the same way as she expects Western markets to be open to her. That will not do. It is not fair.

Now, if you ever hear British people talking, you will hear one word that comes out again and again and again: fairness. It is a great characteristic of British people. Things must be fair and open.

What you expect of others, you must be prepared to give. Life is a two-way business and it cannot be a one-way street. So we say to Japan: yes, you must open your markets. It is no good saying you are going to do it and then it does not come about. You must open your markets genuinely.

Question

Do you think the differences on SDI or Star War Project among the Western countries …   .

Prime Minister

I am very much, as you know, in favour of doing the research necessary to try to find a defence against nuclear weapons. If you look at military history, every time a new weapon has been developed—and we have developed more terrible weapons for many years—you always try to find a defence against that weapon. You have aircraft so you develop anti-aircraft guns, radar and missiles. They are never 100 per cent perfect but you develop defences. Now it seems to me reasonable that you should develop a defence against the world's most terrible weapon. That is what the United States is trying to do. But because peace depends upon balance between countries, not superiority but balance, if it comes to deploying a defence system, there must be negotiations. Because it is balance has has kept the peace. [end p7]

So I do not think one can complain about research into defence against the world's most terrible weapon. Indeed, Britain is prepared to take part in it.