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5. The 12th Annual Joint Conference of the Taiwan-USA and USA-Taiwan Economic Councils was held in Taipei at the beginning of December. The United States warned Taiwan that further appreciation of the NT dollar and further efforts to reduce the trade imbalance are required to keep trade relations on the right track.

Foreign Relations

6. It was reported in the Taiwan press that the Anglo-Taiwan Trade Committee will expand its operations to include the handling of visa applications and cultural affairs work. The United Evening News of 9 December cited British statistics for 1987, saying that Taiwan was the fastest growing market for British exports. Britain is now Taiwan's second largest European trade-partner. The paper wrongly claimed that Mrs Thatcher received a Taiwan delegation headed by Vice-Foreign Minister Steven Wang and Deputy Secretary General of the KMT James Soong, during a visit by them to the UK in November (and speculated about the development of political ties).

7. As a means of dealing with the problem of foreigners who have overstayed their visas or are working illegally in Taiwan, the authorities have drawn up a deportation plan. The plan calls for the deportation of 5,000 illegal workers within the next 3 months. There are thought to be around 50,000 illegal foreigners in Taiwan, mainly from Malaysia, Thailand and the Philippines. It was rumoured that the Philippines' Vice-President Salvador Laurel would discuss this problem during his visit to Taiwan in late December. The Philippine government denied that any official business I would be discussed, and stated that he was in Taiwan for a

"private shopping trip".

Relations with the PRC

8. "Guidelines for Handling International Academic Conferences and Cultural and Sports Activities Involving Mainland China" were published on 1 December. The guidelines stipulate that the title "Chinese Taipei" must be used. If the PRC objects, Taiwan will not participate in the event. Taiwan residents can take part in academic and sports activities in China if they belong to international groups sponsoring the events. The guidelines forbid Taiwan's participation in international conferences and activities that are hosted or co-hosted in other countries

by the PRC. "Regulations Governing visits by Mainland Chinese with Oustanding Achievements and International Prestige and by Mainland Chinese Scholars and Students Based Overseas" were published at the same time. According to

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