Telegram, 'Re: Chinese Expectations before Comrade Havasi's Visit'

Place of mission: New York City

DECIPHERED DOCUMENT!

Strictly confidential!

(To be returned within 5 days!)

Receipt of telegram: at 21:10 on 19 / 12 / 1986

Sent: at 23:30 on 19 / 12

Prepared by: 2

Re: Chinese expectations before Comrade Havasi's visit

I kept in touch with the source of information between 1974-76, our contact has been reactivated recently after he was assigned to New York City. He can be assumed to be a member of the Chinese intelligence service on the basis of the post he has been assigned to (head of the Chinese delegation accredited to the Military Staff Committee), his knowledge and the questions he asked. He seemed to be eager to find out about the consequences ensuing from the last CC session, about our status of indebtedness, and changes to be expected in top positions.

II

The main point of interest for the Chinese leadership is the ongoing economic reform in Hungary on the one hand, and Hungarian domestic policy hallmarked by the name of János Kádár on the other hand. The relationship between our countries [China and Hungary] is untroubled, at the same time Hungary ranks last among Central and Eastern European countries in terms of economic and commercial relations.

The following expectations have been formulated by China prior to Comrade Havasi's visit scheduled for January:

1/ Agreement is to be reached about the date of the highest level visit scheduled for next year, which is one of the preconditions for the development of relations. They [the Chinese] expressed the wish that after the visit of Honecker and Jaruzelski, János Kádár was highly expected to be the next visitor to Beijing. Reasons for this wish: János Kádár has strong prestige among Central and Eastern European party leaders, and is especially respected by Gorbachev; party-to-party relations are to be normalized. The same level visit on Chinese part would be returned as soon as possible.

2/ Trade relations are to be placed on solid foundations and resumed on a basis similar to the Polish and GDR model with development planned for at least a period of five years.

3/ Hungary is to contribute to the industrial development in the western provinces of China on the basis of a long-term concept.

4/An authentic picture is to be given of the situation of our country's [Hungary's] economy and our domestic political situation as the Chinese embassy in Budapest has repeatedly sent alarming reports of growing problems mainly related to our economy and our external deficit. (The president of Mexico recently paid a visit to China, and gave an honest account of the status of the Mexican economy. The Chinese leadership responded positively to Mexican development proposals.)

5/ A systemic dialogue is to be conducted on matters in international politics, even on issues that are viewed differently [by Hungary and China]. Divergence of opinions on political issues cannot pose an obstacle to the development of relations. The development of economic and commercial relations with the Soviet Union has gathered great impetus. The Chinese leadership is of the view that Hungary does not provide support for Chinese initiatives with the speed that would be desirable. Despite Chinese efforts and intentions, this is the reason why relations do not come up to the level that has been reached with other Central and Eastern European countries. This is all the more incomprehensible for him because their initiatives do not have a direct impact on the commitments of Hungary has towards its allies.

- 777 - Móri