CONFIDENTIAL
important for us to maintain a channel of communications through Sir Alan Donald. however need to keep the situation under
We shall
review.
If violence escalates to an unacceptable level, it may well be appropriate to recall the Ambassador. Such a decision would best be coordinated with partners in the Twelve and other close allies including the Americans;
b) Breaking Diplomatic Relations
President Bush said there were
Americans to break diplomatic relations.
no plans for the
This is
reasons as at
a viable option for the same Anot
a) above.
c) Breaking Off Commercial Relations
to cut off
We could however
President Bush said he did not want
all commercial ties with China: "I don't want to
hurt the Chinese people“. I believe that we
should take the same position. take the measured step of withholding ATP support for projects under the Soft Loan Agreement, and believe this would be appropriate in respect of future projects (though not those already agreed). I believe it would be wrong to draw attention to this option in the Secretary of State's statement itself but the supplementaries
will include language to the effect that we shall be reviewing as a matter of urgency the question
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CONFIDENTIAL