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Sir J

10. The ruling party in Taiwan, the Kuomintang (KMT), recently applied to join the International Democratic Union (IDU). Spicer who is the Conservative Party representative to the IDU sought FCO advice about how to handle this application which was to be considered at a meeting in Vancouver in July. The then Secretary of State wrote (copy attached) explaining the political sensitivities involved and advising voting against the admission of the KMT provided the Conservative Party found itself in good company: if there was no support for a negative vote, he suggested the best course would be to abstain. We do not have an account of how the Vancouver meeting went nor of how the Conservative Party voted; but we understand that the outcome was that the KMT were granted associate membership of the Pacific Democratic Union (the regional body). This falls well short of full membership of the IDU

itself.

11.

Sir J Spicer has informed us that he is visiting Taiwan at the invitation of the KMT. As Sir James is not a member of the Government, his visit does not in any way infringe the principle of non-governmental contact. However it is no doubt to be seen as part of consistent KMT attempts to upgrade its relations with the Conservative Party. (Another manifestation of this was the visit to the UK last November by a KMT delegation to observe the selection process of Conservative candidates for MP and MEP: Sir James was involved in this visit.) When Mr Arnold visited recently he reportedly raised his glass to "President Lee and the Republic of China". It would be worth reminding Sir James that we do not recognise "the Republic of China" as a state.

Far Eastern Department

5 September 1989

C14ABF/3

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