RESTRICTED: MANAGEMENT IN CONFIDENCE
HKC 020/5
M Xx
M in Buy MB
FROM: CO Hum
DATE: 29 July 1992
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CC:
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Sir J Coles Mr Ricketts, HKD
Mr Davies, FED
ATTC OFFICE, TAIPEI
1. I talked to Mr Morrice for almost two hours in Hong Kong on 28 July. We went over all the areas listed in my telno 144 to BTC Hong Kong. I found him more relaxed and philosophical than I had feared, no doubt as a result of his break from what he described as the "psychological pressures" of Taipei.
UK/Taiwan relations
2. Mr Morrice was clearly a little embarrassed about the tone of his telno 23, and hastened to assure me that he had not intended to imply that he should be withdrawn. He said he was entirely satisfied by the reply in our telno 145 to BTC Hong Kong. He was grateful for our decision to take up his problems with Mr Tai. In general he seemed to have matters better in proportion.
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3. Mr Morrice nonetheless clearly still hankered after ways of moving ahead in the political relationship with Taiwan. claimed that nothing else would open the way to the major project contracts over which the Taiwanese authorities had influence. I said he had to understand that we were not in the business of offering direct political sweeteners to the Taiwanese: we could however demonstrate that we were making efforts to strengthen the commercial relationship, for example through his own appointment and private visits by Ministers. He had to play that for all it was worth. He accepted this, albeit reluctantly.
4. We also touched briefly on Hong Kong's relations with Taiwan. Mr Morrice was inclined to argue that the Hong Kong authorities were in danger of being left behind by the surge in commercial dealings between the Taiwanese and the mainland through Hong Kong. I had got a briefing from Mr Ehrman (Political Adviser) in advance, and explained to Mr Morrice that non-official dealings between Taiwan and Hong Kong were booming: that the Hong Kong Government was monitoring the situation very carefully, and was moving cautiously ahead in informal dealings with Taiwanese trade officials: and that very few Taiwanese were in practice prevented from visiting Hong Kong provided they were not coming in a Republic of China. capacity or seeking to engage in political activities.
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