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OPERATION GRANBY: BURDEN SHARING

I agree with Mr McLaren that it would be best not to set any hares running by referring in this paper to Hong Kong or Taiwan.

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As far as Hong Kong is concerned, it will be prudent nonetheless to arm Lord Caithness with some background and line-to-take with the Governor, so that we can raise the matter again informally next week. I would expect the Governor to be just as allergic as he was in September to any thought of asking Hong Kong to make a financial contribution - not least when it looks increasingly unlikely that UNHCR will pay what it owes for the care of the VBPS. It would, of course, do Hong Kong a world of good in British eyes if it volunteered something.

3. It was very tempting to refer to Taiwan in this paper, particularly since there is already a reference to Taiwan's economic assistance to countries affected by the Gulf crisis. The obvious danger is that we would risk raising expectations that we could tap the Taiwanese; and, as the Americans have already realised, we could only do this at the risk of incurring a political debt which we would not wish to honour. Nonetheless, the Taiwanese, with their enormous surpluses, are a prime target, at least for contributions to the GCC. Perhaps you could explore with the Emergency Unit whether ther are any other ways of soliciting financial support from the Taiwanese that would not involve us in holding out a begging-bowl.

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