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press claimed for him a total bag of the Austrian President, the King of Thailand and fifteen assorted Ministers.

7.

Other EC countries were also moving towards better relations, mainly in the commercial sphere. Ireland opened an Institute of Trade and Investment for Ireland on 1 August. The Taiwan Foreign Ministry claims to have obtained permission from Italy to set up a representative office in Rome, and a subsequent press report stated that Italy was considering establishing a trade office in Taiwan (parliamentary approval has already been obtained). The Vice Chairman of the Conservative Party, Mr Tom Arnold MP, visited Taiwan in July (to observe the primary elections) and was received by Premier Li Huan who suggested that China Airlines begin flights to London. A delegation of bankers from Taiwan visited Britain, led by President of the Bank of Taiwan, and it was announced that a second Taiwan bank would be opening a branch in London (in addition to the First Commercial Bank). The Anglo-Taiwan Trade Committee opened new premises in Taipei. The occasion was attended by the Chairman of the British Overseas Trade Board, Sir James Cheminson, and a Vice Minister of Economic Affairs. The first batch of students to go to Britain since the opening of the Anglo Taiwan Education Centre included the daughter of President Lee Teng-hui (according to the China News of 27 July). Representatives of the European Commission held two days of trade consultations with responsibilities from Taiwan in Bangkok on 13 and 14 July. According to press reports they were inconclusive and no agreements were reached on major issues. Taiwan is reported to have indicated some willingness to discuss a maritime transport tax exemption agreement with the EC, but also stated that ongoing bilateral talks with Britain and Denmark would continue.

8.

Taiwan's relations with the United States were dominated by the fisheries problem. The agreement reached over allowing the US the right to board and inspect Taiwan vessels believed to be illegally fishing caused an outcry in Taiwan over the alleged surrender of sovereignty. Further incidents occurred during the month when the US asked permission to search two further vessels. After a long saga, and a chase across the Pacific, one of them was duly inspected jointly by the US coastguard and a Taiwan patrol craft on 2 August some 100 nautical miles off Taitung (to avoid further problems over sovereignty and territorial waters). The US side claimed to have found evidence of illegal salmon fishing. Taiwan authorities were further upset by the action of Senator Murkowski (one of these most active in the fisheries dispute) in leaking the news of Chief of Staff Hav Pei-tsun's 'private' visit to the United States. The State Department said blandly that he had visited Washington and other places of scenic interest and had had unofficial meetings with AIT officials and others.

9.

The

The Mayor of Ho Chi Minh City visited Taiwan in late July as Chairman of the "Vietnam Trade and Investment Promotion Association" and suggested signing an agreement with Taiwan's semi-official China External Trade Development Council. This marked a further significant step forward in Taiwan's economic relations with

Vietnam.

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