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David Cameron was yesterday urged to continue meeting with the Dalai Lama despite warnings from Beijing that vital investment in London’s infrastructure could be at risk.
The Chinese government wants the prime minister to make a public apology for holding talks last year with Tibet’s spiritual leader against its wishes. The row escalated amid claims that Chinese officials were making veiled threats to halt billions of pounds worth of potential investments in the UK, which could affect Boris Johnson’s plans for a new £50bn hub airport in the Thames Estuary. The mayor is banking on Chinese money to fund it.
It erupted as the London Chamber of Commerce and Industry asked Chancellor George Osborne to find funding for London projects including the Northern line extension, the Piccadilly line upgrade, Euston station redevelopment, a new Thames crossing and Crossrail 2.
Richard Ottaway, chairman of the Commons foreign affairs committee, urged Cameron to stand his ground against Beijing. “We are right to resist external pressures,” he said. “The Dalai Lama has always been welcome in Britain and I hope it remains that way. I think this will quickly blow over and investment will flow both ways.”
Downing Street said Cameron had “no plans” at present for another meeting with the Dalai Lama but insisted: “It is perfectly right for the prime minister to be able to choose who he wants to meet.” It added: “We want to deepen our relations with China and indeed we already are. UK exports to China grew faster than any of our main European partners last year and we were the only EU country to benefit from increased trade and investment.
“Of course we engage with China on a huge range of issues, on some we agree, on others we disagree, but we strongly believe it is in the interests of both countries to manage our differences with respect, and co-operate as much as possible.”