6. There was general agreement with Ms Wright's view that one should not expect too much of any regime in Peking. China had long been a totalitarian country. Deng Xiaoping had been politically very hard line even at his moments of greatest economic liberalism. We had turned a blind eye to abuses in China that we had condemned in eastern europe. This might be necessary but we should recognise what we are doing. Sir Robert Davidson commented that this might be true but that the Chinese were excellent customers, they paid.
7.
Lord Caithness asked how HMG could educate public opinion in the UK about the realities of dealing with China. There was a constant risk of accusations of "kow-towing" because of Hong Kong. Lord Derwent thought that businessmen had a role to play. They should speak out and if necessary take the flak. Sir Peter Blaker thought that there would be little flak from Parliament. Most MPs understood the need for a viable relationship with China.
Tibet
8.
Lord Caithness invited comments on the Dalai Lamaʼs forthcoming visit. He was rewarded with unanimous criticism of HMG's "wimpish" refusal to meet the Dalai Lama.
Taiwan
9.
Lord Derwent and Mr Simmons agreed that there was major commercial potential in Taiwan. The Chinese took a pragmatic view of foreign companies dealing with Taiwan and did not penalise them in China. Indeed there was considerable and growing commercial contact between Taiwan and the mainland. Mr Simmons thought that there was no need for an enhanced diplomatic role since the Chinese were much more sensitive to diplomatic contacts with Taiwan than commercial exchanges. Mr Yahuda suggested that Chinese pragmatism extended to the development of a nexus of de facto commercial and cultural relations linking Southern China, Hong Kong, Taiwan, South Korea and other countries in the region. Mr Simmons thought that HMG's position was sensible and he praised the service now provided by the visa handling unit. Sir Adrian Swire argued that Britain was less forthcoming than other EC countries and should adopt a more positive position.
iht Tin
Peter Tibber
PS/Lord Caithness
14 March 1991