CODE 18.77
SECRET
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Reference..
Мни окол
227
Mr
Figi ar
iar (HKGD)
INDEX
13.11
IMPLICATIONS FOR HONG KONG OF CHINA'S POLICY ON TAIWAN
Spotre
13/4
יא
You requested suggestions for revising the annex to HKGD's paper to take out of the latest developments. My proposed amendments are as follows:-
Paragraphs 1-3: Delete and substitute:
leaders of the
1. The People's Republic of China (PRC) aims to achieve the take-over of Taiwan in such a way as to ensure the maximum benefit and the least possible damage to the PRC's interests. While they do not rule out the use of force as a last resort the PRC leaders express the hope that reunification can be achieved peacefully through negotia- tions between themselves and the leaders of ruling Kuomintang (Nationalist) Party on Taiwan.
2.
...
The essence of the PRC's proposals on Taiwan (put forward on several occasions in the last 3 years) is that in return for acceptance by the Taiwan authorities of unification, the PRC would "respect the status quo on Taiwan and adopt reasonable policies and measures so as not to cause any losses to the people on Taiwan" The PRC says that it would allow Taiwan to retain its own armed forces, would abstain from interference in the local affairs of the island, would leave Taiwan's "socio-economic system" unchanged, with "no encroachment" on the investments and rights of inheritance enjoyed by the inhabitants, and would permit Taiwan businessmen to invest on the mainland. These points were reaffirmed on 30 September 1981 by Ye Jianying (the PRC equivalent to Head of State), who added that under the arrangements envisaged by Peking "people in authority" from Taiwan could assume national leadership posts and "participate in running the state".
3. On some previous occasions, PRC officials had said that authorities on Taiwan would have to give up the use of such attributes of national status as the "Republic of China" flag, but the PRC has not explicitly repeated this in its latest statements. On the question of further arms supplies for Taiwan after a settlement a PRC official said in the course of a private conversation in August that these would be "negotiable" but another Peking official told a Japanese press correspondent in October that these would not be permitted.
Paragraph 6: Delete last sentence and substitute:
"The Chinese appear to favour an arrangement of this kind for Hong Kong primarily because they calculate that this would preserve for them the major advantages which they
derive /desire
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