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MDLIAN 4616

9. DPA SAID IT WAS ABUNDANTLY CLEAR THAT PENG HAD SIMPLY TRANSITED HONG KONG AS AN EASIER WAY TO TRAVEL AND HIS AIM IN PASSING THROUGH HONG KONG WAS NOT/NOT POLITICAL. THERE WERE NO PRESS CONFERENCES HELD IN HONG KONG AND HIS STATEMENTS REPORTED IN THE PRESS WITH REGARD TO INDEPENDENCE WERE MADE IN TAIWAN DPA ALSO SAID HE WAS NOT/NOT AWARE OF THE STATEMENT BY NI REFERRED TO, BUT THAT IN HONG KONG EVEN TRAVEL AGENTS ENJOYED FREEDOM OF SPEECH. THIS WAS QUITE DIFFERENT FROM PEOPLE TRYING TO MAKE USE OF HONG KONG DELIBERATELY AS A POLITICAL BATTLEFIELD. WE WOULD CONTINUE TO ADHERE TO THIS POLICY BUT, LIKE ANY OTHER GOVERNMENT POLICY, THE HKG WOULD EXERCISE ITS JUDGEMENT ON A CASE BY

CASE BASIS.

COMMENT

10. YANG'S ATTEMPT TO LINK HSU'S MEETING WITH THE GOVERNOR TO OTHER RECENT TAIWAN RELATED EVENTS, SUGGESTS THEY MAY BE WORKING UP A LINE TO THE EFFECT THAT THERE HAS BEEN A CHANGE OF POLICY ON THE PART OF HKG/HMG TOWARDS TAIWAN: AND THROW THIS INTO THE POT ALONG WITH THEIR OTHER CRITICISMS.

11.

IN THIS CONTEXT, YOU ARE AWARE THAT THE D-G OF TRADE WILL BE LEADING A DELEGATION TO TAIWAN IN EARLY DECEMBER UNDER APEC AUSPICES. THIS IS LIKELY TO ATTRACT SOME PUBLICITY. WE MAY FIND NCNA TRY TO TAKE THIS UP WITH US: THOUGH WE WILL HAVE NO PROBLEM REFUTING ANY COMPLAINTS, AS THE VISIT WILL BE STRICTLY TO DISCUSS APEC BUSINESS.

FORD

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.HK POLICY

HKD

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63

LEGAL ADVISERS//MS BARRETT

.AND MS BROOKS

DISTRIBUTION

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PS/MR GOODLAD

SIR J COLES MR APPLEYARD

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