CONFIDENTIAL

they may detect by others in Taiwan's direction. There is little

that the Chinese would take as more convincing evidence of our bad faith than if we were publicly seen to be discussing the future of

Hong Kong with the authorities in Taiwan. The Hong Kong Government do not consider there is any advantage to be gained from

governmental contact with the Taiwanese at this stage.

4. We understand that Mr Arnold MP is not planning to make an early return visit to Taiwan but that Sir James Spicer MP, Vice-chairman

of the Conservative Party, will be visiting Taipei later this month after attending the IDU Conference in Tokyo. He recently called on Mr Maude to discuss his forthcoming visit. Mr Maude said that we

saw advantage in Sir James Spicer talking to the Taiwanese in his IDU capacity on the lines set out in Mr Powell's letter, provided he made clear that there was no question of official discussions with

HMG.

Mr Maude added that we would also be interested in anything Sir James Spicer had to report after his visit.

5.

It would be useful if the Political Secretary at No 10, who will also be in Tokyo for the IDU Conference could also have a word with him in the margins of that meeting to reinforce a need for

caution.

fully agree

with

this

ARPanc

A R Paul

recommendation

CONFIDENTIAL

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