CONFIDENTIAL
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Hong Kong Office in Taipei
For obvious reasons, the Hong Kong Government cannot set up shop in Taiwan. The Hong Kong Tourist Association and the Hong Kong Trade Development Council both operate via agencies in Taiwan (neither HKTA nor HKTDC is 'governmental' although both receive financial support).
For your
information, we have told the HKTA and HKTDC that there is no political obstacle for them to expand their activities in Taiwan. Should they eventually see fit to establish their offices there, we would not object.
Protection of Taiwanese Investments Post-1997
Our
An Investment Promotion/Protection Agreement with Taiwan is politically not possible, for obvious reasons. IPPAS in any case cover only investments in Hong Kong itself and not those routed through Hong Kong to China or other places. That said, Taiwanese investment in Hong Kong after 1997, like all other investments, will continue to have the protection afforded by the JD, BL and our domestic legislation.
Staffing of Chung Hwa Travel Service
We agreed back in November 1990 to allow three staff at junior level from Taiwan to come to fill vacancies which cannot be suitably replaced by locals. So far, only one has arrived.
On a more general note, you are aware that over the past year our Trade Department has been building up a dialogue with the Taiwanese under the umbrella of APEC on a number of issues covering bilateral trade, intellectual property and customs operations etc. Donald Tsang's visit to Taiwan (under APEC cover) is now likely to take place in the first half of next year.
Yours sincerely
Lilian
(W G Ehrman) Political Adviser
CONFIDENTIAL