CONFIDENTIAL
THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC
MAJESTY'S GOVERNMENT
31
PMVC(74)16
12 December 1973
PRIME MINISTER'S VISIT TO CHINA JANUARY 1974
BRITISH TRADE WITH TAIWAN
Our political commitment to China regarding Taiwan
has not been treated by China or by the UK as inhibiting
our trade with Taiwan provided that any semblance of
acknowledgement of the Taiwan regime is strictly avoided.
Subject to this proviso private trade is encouraged (and ECGD
cover provided) although firms who may also propose to trade
with China are warned of the need to consider possible inter-
actions. The Chinese seem fully to accept the trading between
Taiwan and UK (and other countries) and have raised no
difficulties.
2 Taiwan is now one of the largest markets in Asia. During
the last decade GNP has grown at about 10% each year, reaching
£2,480m in 1972 (per capita £166); imports last year rose 40%
to £1100m.
46%
Exports rose/to £1240m. The comparable figures
for China are £930m and £975m. Major suppliers are Japan (40)
and the US (20%). It has been forecast that by the end of
1976 the volume of two-way trade will total £4400m, with exports
reaching £2260m. A breakdown of Taiwan's trade figures,
showing her main trading partners, is attached at Annex A.
3
British exports to Taiwan in 1972 at £11m were very little up
This year
on 1971 and represented only 1% of total imports.
however they should exceed £20m.
Taiwan's exports to this
CONFIDENTIAL
/country