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115726

MDTTAN 8860

OF CHINESE

WHILST THE

NEGOTIATING TACTICS AND HOW FLEXIBLE THEY WOULD BE.

CHINESE WOULD ALMOST CERTAINLY NOT AGREE TO A GOVERNMENT-TO-GOVERNMENT AGREEMENT, JEON HOPED THOUGH THAT ANY AGREEMENT WOULD BE 'MORE THAN JUST WITH CCOIC', BUT DID NOT ELABORATE.

OFFICIAL CONTACTS

6. JEON SAID THAT DG KIM HAD ASKED FOR A MEETING WITH HIS OPPOSITE NUMBER IN THE CHINESE MFA, BUT THE KOREANS HAD BEEN TOLD THIS WAS NOT POSSIBLE. HOWEVER, FOLLOWING THE AGREEMENT BETWEEN THE TWO FOREIGN MINISTERS TO ALLOW THE REPRESENTATIVE OFFICES TO CARRY OUT GOVERNMENT BUSINESS (SEOUL TELNO 536), ROK TRADE OFFICE OFFICIALS IN PEKING HAD BEEN ABLE TO CALL ON THE MFA. AND ONE OF THE CCOIC

OFFICIALS IN SEOUL HAD CALLED ON NORTH EAST ASIA DIVISION II ON 12

DECEMBER TO DISCUSS THE FOLLOWING WEEK'S TRADE TALKS.

COMMENT

"

7 JEON SAID THAT HE STILL DETECTED A CERTAIN CHINESE RELUCTANCE

TO ALLOW GOVERNMENT-TO-GOVERNMENT CONTACTS, BUT THINGS WERE MOVING IN THE RIGHT DIRECTION. JEON ALSO SEEMED GUARDEDLY OPTIMISTIC TRADE CONTINUES TO GROW. TO GIVE TWO EXAMPLES, AGRICULTURAL IMPORTS FROM CHINA (AND THIS AFTER ALL, IS A SENSITIVE SECTOR FOR THE KOREANS) ROSE TO US706 MILLION FOR THE FIRST NINE MONTHS OF

1991, AN INCREASE OF 72%. AND SINOCHEM HAS REPORTEDLY SAID IT WILL

OPEN AN OFFICE IN SEOUL. AS LONG AS THE ROK CAN MAINTAIN ITS

UNCHARACTERISTIC DEGREE OF PATIENCE WITH THE PRC, IT SHOULD SURELY NOT BE TOO LONG BEFORE THIS STARTS TO PAY OFF. CERTAINLY, THE

TAIWANESE SEEM TO THINK SO. THERE ARE REPORTS THAT THE TAWIAN

GOVERNMENT IS TRYING TO SELL OFF ITS EMBASSY (A PRIME PIECE OF REAL ESTATE IN CENTRAL SEOUL, REPUTEDLY WORTH US1 BILLION). THE MFA ARE RESISTING ON THE GROUNDS THAT THE EMBASSY DATES FROM THE QING

DYNASTY AND IS NOT THEREFORE THE NATIONALIST GOVERNMENT'S PROPERTY

TO DISPOSE OF, THEREBY FUELLING SPECULATION THAT THE ROK MIGHT WISH TO OFFER THE PREMISES TO PEKING IN DUE COURSE.

SIGNED: G A HARRISON

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