admitted.

CONFIDENTIAL

Taiwan

3. Zhang Youyun, Counsellor at the Chinese Embassy,

called on Cooper, Head of FED, on 20 December. The call

was to seek clarification about UK-Taiwan relations

following a number of false reports in the Hong Kong and Taiwan press. Cooper reassured the Counsellor that a Taiwanese minister had not met the Prime Minister (or any

other ministers) on a recent visit to London. He

explained that the Anglo-Taiwan Education Centre, due to

open in April, was a private sector initiative. He also stressed that the visa office (which will begin operating in April/May under the auspices of the Anglo-Taiwan Trade Committee) would have no official status or authority.

Sino-Soviet Relations

4.

There has been reapid progress in Sino-Soviet relations over the past months. Although the Chinese

deny that they have adopted a more flexible attitude towards the 3 obstacles which they have long cited as preventing improved Sino-Soviet relations (Soviet troop withdrawals from Afghanistan, reduction of troops on the Sino-Soviet border, withdrawal of Vietnamese forces from Cambodia), this is clearly what has in effect happened. The Chinese Foreign Minister visited Moscow from 1-3 December and Shevardnadze is due to visit Peking in the next couple of months (no date yet fixed): Cambodia will

be the major issue to be discussed. A Summit could take place later this year. Both sides have stressed that there will be no return to the relationship of the 50s

MB1ABT

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CONFIDENTIAL

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