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As a result of our growing trade links with Taiwan, the Trade Development Council (TDC) have recently asked for our view on the possibility of the establishment in the future of a full Council office in Taipei. At present the TDC only has a consultants office which is contained within a trading company there. Although the Chairman and some members of the TDC Council are appointed by me, and its funding derives from a levy on imports and exports, we always make a point of emphasising in public the very real independence of the TDC. TDC visits to Taiwan have, in the past, been led both by the Chairman, Lydia Dunn, and by the Director, Jack So, without Chinese protest. The TDC is not pressing for the immediate establishment of a full office. Nor do I think this is the right time to make such a move. But at some stage in future, I hope this will be a development we shall be able to approve with small political risk.
There have recently been reports in the press, which appear to have been KMT kite-flying, that Taiwan plans to open a trade office in Hong Kong. We are keeping a close eye on this. It could not of course be permitted in an official form.
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The nub of Chinese concerns about Taiwanese activities in Hong Kong is of course political. saw the Taiwanese hand very clearly in the Yang Yang affair. So did we. They have also on this issue, without good reason, accused us of conniving with Taipei over the offer of visas to Chinese escapees. In general, as you know, we keep a very close watch on the KMT's activities in Hong Kong and always have done. Recently, because of the delicacy of our relations with China, we have warned them to desist from making political propaganda through their visa activities and we persuaded them to keep their 10 October celebrations low-key. We will continue to monitor their behaviour very closely.
in short therefore, our aim is to promote and facilitate trade with Taiwan, but to adopt a very cautious attitude on anything remotely political.