CONFIDENTIAL

However

two Chinese who escaped on bicycles. The investigation is in the hands of the Daly City police. The Americans asked the Taiwanese for cooperation in obtaining information from Taiwanese witnesses, but hit something of a blank wall. the Taiwanese belatedly admitted 10 days or so ago, probably when they realised that the information had already reached American ears through other channels, that they had rounded-up 3 men in early November in the course of a sweep of gangsters in Taipei, who claimed to have information about the case. : It was not clear whether the Taiwanese would cooperate further in providing information. It turns out that the Taiwanese have been pressing for some time to have an extradition agreement with the United States, which is something the Americans have been resisting. The State Department fear that the Taiwanese will use the Henry Liu case to goad the Americans into granting an agreement. Although there was an enormous dossier on the case on his desk... my State Department contact did not regard this case as having major impact on US/Taiwan relations, which strike me as being neither particularly good nor bad at the present time. He did observe however that the mainland Chinese had been making themselves unpopular by pestering the State Department incessantly to come out with a denunciation of Taiwanese complicity in the murder of Liu.

Your ever

1 Stephen Gomersall

S J Gomersall

CC:

R P Margolis Esq, Deputy Political Adviser, Hong Kong

J Powell Esq, Hong Kong Department, FCO -

DJ Currie Esq, FED, FCO

J Crowley Esq, PUSD

A PF Bache Esq, Tokyo

CONFIDENTIAL

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