CONFIDENTIAL
FM HONG KONG
CONFIDENTIAL
07146
MDLIAN 5340
8
HKC 104/1
RECEIVED IN REGISTRY
2 NOV 1987
REGISTRY
TOP COPY Q. DIST ?
TO PRIORITY FCO
TELNO 4116
DESK OFMCER
OF 29020OZ OCTOBER 87
INDEX
PA
Action Taken
INFO PRIORITY PEKING
031/10
(38
YOUR TELNO 2769: KA WAH BANK PROSECTION: EVIDENCE FROM TAIWAN.
1.
·
DEPUTY POLITICAL ADVISER BRIEFED LI RUOHE (NCNA) ON 28 OCTOBER
PEIRCE EMPHASIZED ON THE PROBLEM AND HOW WE INTEND TO DEAL WITH IT THAT WE WOULD HAVE NO DIRECT CONTACT WITH ANY TAIWANESE AUTHORITIES AND THAT WE WOULD REQUIRE THE EVIDENCE TO BE PRESENTED WITHOUT
ETC. HE SAID THAT UNACCEPTABLE REFERENCES TO ''REPUBLIC OF CHINA
WE CONSIDERED OUR PROPOSED COURSE OF ACTION TO BE CONSISTENT WITH HMG'S POSITION THAT THE AUTHORITIES IN TAIWAN DID NOT CONSTITUTE A LEGITIMATE GOVERNMENT. HE UNDERLINED THE IMPORTANCE OF THE KA WAH PROSECUTION, FOR HONG KONG AND FOR CHINA (CITIC), AND THE IMPORTANCE OF THE TAIWAN EVIDENCE TO THE CASE. HE ALSO MADE THE POINT IN PARAGRAPH 10 OF OUR TELNO 3889, ABOUT GROWING LINKS WITH TAIWAN AND THE LIKELIHOOD OF COMPARABLE DIFFICULTIES ARISING AGAIN.
3
2. PEIRCE SAID THAT HE WAS INFORMING LI OF ACTION THAT WE INTENDED TO TAKE, SO THAT THERE SHOULD BE NO MISUNDERSTANDING. HE DID NOT SUGGEST THAT WE WERE CONSULTING THE CHINESE, AND SAID THAT WE WOULD EXPECT TO START INSTRUCTING THE TAIWANESE SOLICITORS VERY SHORTLY. LI SAID THAT HE APPRECIATED THE ARGUMENTS BEHIND GOING THROUGH A FIRM OF SOLICITORS. HE WOULD REPORT TO HIS SUPERIORS. THIS WAS AN IMPORTANT MATTER WITH IMPORTANT IMPLICATIONS FOR THE FUTURE, GIVEN HONG KONG'S GROWING LINKS WITH TAIWAN (WHICH IN LATER CONVERSATION HE WENT ON TO EXTOL AS VERY GOOD FOR ALL CONCERNED). IF HE HAD ANY OBSERVATIONS HE WOULD REVERT QUICKLY.
3. WE SHALL NOW SET IN TRAIN ARRANGEMENTS FOR OUR COUNSEL TO VISIT TAIWAN TO INSTRUCT THE SOLICITORS.
FORD
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CONFIDENTIAL