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From the Private Secretary
CONFIDENTIAL
Head HKD
ET MON
10 DOWNING STREET
LONDON SW1A 2AA
Dear Heder.
НКВ
020/1
TAIWAN AND HONG KONG
25
At Fraduire. +1/M Marde es/lad Grabara
1 August 1989
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Head FED
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The
Tom Arnold MP saw the Prime Minister briefly in the House the other day, to pass on a message from the Government of Taiwan which he has recently visited. essence of this was that Taiwan wished to be helpful over Hong Kong, by taking a quota of people in an Armageddon situation; and was also considering investing in property in Hong Kong, in order to restore confidence. The message also said that the Taiwanese would like a direct channel of communication to the Prime Minister to discuss the modalities of how Taiwan could help Hong Kong.
Mr. Arnold subsequently came to see Sir Percy Cradock and repeated this message. Sir Percy pointed out that Taiwan was perfectly free to help Hong Kong by investing there without any official or unoffical involvement on the part of the United Kingdom.
The Prime Minister has commented that the best course would be to respond to the proposal by encouraging the Taiwanese to put money into Hong Kong
The way to take this forward would be for Mr. Arnold to make a return trip to Taiwan in his IDU capacity. But he should make clear that there is no question of official discussions with the Taiwanese authorities or a special link to No. 10.
Subject to the Foreign Secretary's views, we would propose to speak to Tom Arnold again in September on these lines, briefing him carefully on the need to avoid holding out any prospect of official discussions or privileged access to No.10.
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Stephen Wall, Esq.
Foreign and Commonwealth Office.
(C.D. POWELL)
CONFIDENTIAL
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