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Hi2020/5
30
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MDLOAN 2405
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FM FCO
TO PRIORITY PEKING
TELNO 944
OF 271412Z NOVEMBER 92
AND TO PRIORITY ATTC TAIPEI
INFO PRIORITY HONG KONG
INFO ROUTINE BONN, THE HAGUE, UKMIS GENEVA, TOKYO
INFO ROUTINE PARIS, WASHINGTON
NE
PEKING TELNO 1368 AND TAIPEI TELNO 92: MIRAGE SALE TO TAIWAN:
UK/CHINA/TAIWAN RELATIONS
1.
We too understand how things look from Taipei, but we fully agree with the line taken in your TUR. We believe we are progressing in our contacts with Taiwan as fast as is prudent and in our interests. This year has already seen large steps forward, eg. the first private Ministerial visits to Taiwan (the number will increase next year), the secondment of FCO/DTI officials TO ATTC Taipei and further face-giving gestures to Taiwan officials in London. But the Chinese continue to watch closely our developing relationship with Taiwan. Their sensitivities remain and can easily be deployed with it suits them to turn up the political heat (eg the recent meeting between the Governor of Hong Kong and Hsu Sheng-Fa).
2. It is helpful to be kept up to date with what others are doing vis-a-vis Taiwan and we are grateful for Mr Morrice's assiduous reporting. But we must make our own decisions about how far and fast to go having regard to the totality of our responsibilities, most notably for Hong Kong, but also (as you say) for our international obligations under the 1972 Joint Communique with Peking. We are certainly not blind to Taiwan's very substantial commercial promise. British business and some parliamentary interests continue to suggest that we
suggest that we are raising obstacles to exploiting that promise. Taiwan officialdom have their own agenda (to expand international semi-diplomatic treatment) and are adept at using Taiwan's economic attractions as inducement. Taken together, these two sources of pressure make life for us and for Mr Morrice more difficult. But we are confident that we are proceeding at about the right pace, while keeping the whole picture under constant review.
If we can get right the trade promotion effort vis-a-vis the People's
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