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CONFIDENTIAL

FROM

: AR Paul

HKB 020 /t

DATE

* 1SEF1989

Mr McLaren

PS/Mr Maude

Private Secretary

TAIWAN AND HONG KONG

Problem

CC

Hong Kong Department

15 September 1989

: PS/Lord Brabazon

Mr Millington, FED

Mr Fraser

Mr Wye, Research Dept

1.

A letter from Mr Powell about a message from the Taiwan

authorities, conveyed to the Prime Minister by Mr Tom Arnold MP,

that they would like a direct channel of communication with HMG to

discuss how Taiwan might help Hong Kong.

Recommendation

2.

I recommend that we should advise No 10 to revert to Mr Arnold

on the lines set out in Mr Powell's letter and suggest that the Political Secretary at No 10 should also speak in similar terms to

Sir James Spicer MP before he visits Taiwan later this month. I submit a self-explanatory draft reply. FED and Hong Kong Government

concur.

Background and Argument

The Embassy

3. The Taiwanese have already publicised Mr Arnold's visit to Taiwan and his meeting with Premier Li Huan on 12 July. in Peking have stressed that at the present time, the Chinese Government are likely to be particularly sensitive about any moves

CONFIDENTIAL

23,

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