Taiwan
CONFIDENTIAL
7.
20.
Taiwan does not cause serious difficulties for Sino/
British relations, but is an occasional irritant, particularly
in the sporting and cultural field.
We seek to keep out groups
purporting to represent the 'Republic of China' but admit
Taiwanese who propose to compete or perform as individuals.
Recently the Chinese protested, and asked HMG to take action,
against a High Court ruling that a decision by the International
Amateur Athletics Association's Congress last October to
withdraw recognition from Taiwan was unconstitutional (the case
was heard in this country because the Federation Headquarters
are in London). The Chinese were told that the Government
could not interfere with the courts in any way.
Hong Kong
21.
We currently enjoy a very good understanding with the
Chinese Government over Hong Kong. The Governor's visit to
Peking in March/April was very successful. He was received by Vice Premier Deng, and other Chinese leaders. They indicated
that China did not necessarily contemplate taking over Hong Kong
in 1997, but envisaged a transitional period, during which normal
business activity would continue.
They clearly recognised the
need to maintain business confidence in Hong Kong, but in time
investors are likely to want more solid evidence of Chinese
intentions than they are presently ready to give.
Air Services Agreement
22.
Ministers have now approved a political formula which resolves the outstanding difficulty over our attitude towards
the status of Taiwan which has prevented conclusion of an Air Services Agreement since 1973. A Department of Trade negotiating team have been in Peking since 18 May, discussing technical aspects
of the Agreement.
The negotiations have not been easy; but
there are prospects for reaching a mutually satisfactory Agreement.
Far Eastern Department 23 May 1979
CONFIDENTIAL