CONFIDENTIAL

CONFIDENTIAL

FM PEKING

TO IMMEDIATE FCO

TELNO 1544

OF 12103OZ SEPTEMBER 91

н

HAC020/3

INFO IMMEDIATE PARIS, HONG KONG, UKREP JLG HONG KONG

INFO IMMEDIATE BTC HONG KONG

YOUR TELNO 1031.

TAIWAN: MINISTERIAL VISITS.

SUMMARY.

1

112640

MDHIAN 2435

plw

Taiwan

FRENCH EXPERIENCE. CHINESE UNLIKELY TO RETALIATE AGAINST OUR HONG KONG INTERESTS IF MR. LANG GOES TO TIWAN.“ BUT BETTER TO PROCEED GRADUALLY.

DETAIL.

2.

THE FRENCH ARE PURSUING A FORWARD POLICY ON TAIWAN. THIS HAS BROUGHT THEM UP HARD AGAINST CHINESE OBJECTIONS TO THE EXTENT THAT MY FRENCH COLLEAGUE (MARTIN) SPENDS MUCH OF HIS TIME DEALING WITH THESE OBJECTIONS (MY MINUTE OF 18 JUNE, COPIED TO FED).

3. COUNSELLOR CALLED ON THE FRENCH MINISTER-COUNSELLOR ON 11

SEPTEMBER FOR AN UPDATE ON FRENCH POLICY. CHESNEL POINTED OUT THAT FRENCH EXPORTS TO CHINA NOW ONLY AMOUNTED TO 30 PER CENT OF ITS IMPORTS FROM CHINA, SO THE CHINESE COULD INFLICT LITTLE ECONOMIC DAMAGE ON FRANCE IN RETALIATION FOR PRO-TAIWAN

ACTIVITIES. THE COMPANIES ENGAGED IN CHINA ALSO TENDED TO BE

ACTIVE IN TAIWAN SO THEY HAD COMMERCIAL CHOICES TO MAKE ANYWAY. AOME, E.G. THOMSON, PURSUED BUSINESS IN BOTH MARKETS WITHOUT TOO MUCH DIFFICULTY. CHESNEL SAID THAT FRANCE STILL INTENDED TO SELL FRIGATES CHULLS AND ELECTRONIC EQUIPMENT, NO ARMS) TO TAIWAN

AS LONG AS A SUITABLE AGREEMENT ON FINANCE WAS REACHED. DUMAS

HAD DISCUSSED THIS WITH QIAN QICHEN (WHO HAD NOT LIKED THE IDEA)

BUT CHESNEL DID NOT THINK THE CHINESE WOULD RECALL THEIR

AMBASSADOR FROM PARIS OR ASK FOR MARTIN TO LEAVE IF THE SALE

WENT AHEAD.

4 CHESNEL CONFIRMED THAT FRENCH MINISTERS WOULD CONTINUE TO VISIT TAIWAN IN A ''PRIVATE'' CAPACITY. FOR THE FORSEEABLE

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CONFIDENTIAL

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