CONFIDENTIAL

140367

MDHIAN 3711

CONFIDENTIAL

FM PEKING

TO DESKBY 25090OZ F C O

TELNO 591

OF 250821Z APRIL 91

HKC020/3

بری

Tainan

INFO PRIORITY HONG KONG, BTC HONG KONG, UKREP JLG HONG KONG INFO PRIORITY WASHINGTON, TOKYO, CANBERRA, WELLINGTON, ACTOR

PERSONAL FOR BURNS, AUSS

HONG KONG PERSONAL FOR GOVERNOR

YOUR TELNO 458: FUTURE OF ATTC: VISIT TO TAIWAN BY HMG

OFFICIALS

1.

WE FULLY APPRECIATE THE CONSIDERATION BEHIND THE PROPOSED CHANGES IN STAFFING OF ATTC. WE ARE CONTENT WITH THE DRAFT SUBMISSION IN BRISTOW'S FAX OF 22 APRIL, SUBJECT TO THE MINOR COMMENTS IN MIFT.

2. WE UNDERSTAND THE NEED FOR AN INVESTIGATION TEAM TO TAIWAN AS ENVISAGED IN PARA 3 OF TUR. HOWEVER, WE ARE SOMEWHAT CONCERNED BY THE INCLUSION IN SUCH A TEAM OF THE HEAD OF FED. AS THE SENIOR OFFICER IN THE FCO WITH DIRECT RESPONSIBILITY FOR UK POLICY TOWARDS CHINA AND TAIWAN, DAVIES' VISIT TO TAIWAN WOULD INEVITABLY COME TO THE ATTENTION OF THE CHINESE. THEY WOULD NOT BE CONVINCED BY THE GOOD HOUSEKEEPING'' EXCUSE. WE HAVE ALWAYS CLAIMED THAT ATTC IS SIMPLY A TRADE PROMOTION OFFICE, OPERATED BY THE CBI NOT/NOT THE DTI, WHICH HAS RECENTLY ACQUIRED A VISA HANDLING FUNCTION. ALTHOUGH THE CHINESE MIGHT ACCEPT THE

NEED FOR AN INVESTIGATION TEAM TO INCLUDE OFFICIALS FROM THE DTI AND MVD, OR EVEN THE PERSONNEL/MANAGEMENT SIDE OF THE OFFICE, THEY COULD NOT BUT BE SUSPICIOUS OF THE INTENTIONS LYING BEHIND A VISIT BY AN OFFICER RESPONSIBLE FOR POLITICAL POLICY. THE RISK

OF THE CHINESE REACTING BADLY WOULD BE INCREASED BY THEIR CONCERNS ABOUT UK/TAIWAN AIR SERVICES, NOT TO MENTION THE SENSITIVE PERIOD THAT OUR RELATIONS WITH PEKING OVER HONG KONG

ARE GOING THROUGH AT THE MOMENT.

3.

INCLUDING DAVIES IN THE INSPECTION TEAM WOULD ALSO BE

A CHANGE FROM OUR POLICY ON OFFICIALS VISITING TAIWAN, AS SET OUT IN MCLAREN'S LETTER TO COATES OF 2 AUGUST 1990. ACCORDING TO OUR UNDERSTANDING OF OUR POLICY, VISITS SHOULD BE MADE BY TRADE PROMOTION OFFICERS WHERE THERE WAS CLEAR EVIDENCE OF COMMERCIAL

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CONFIDENTIAL

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