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Mr Davies commented that this indicated a change for the better

in ECGD's situation over the past year.

14.

There was a brief discussion on ministerial visits to

China. Dr Bristow-Smith made a plea for FED to be kept informed of all ministerial visits so that we could, as far as possible given the difficulties Ministers were having travelling outside the recess, avoid bunching.

15. Mr Myers (DTI) announced that his department, Excports and Visits Unit, was now leading on the Inland Transport MoU with the

Chinese, which had recently been reactivated. DOT's problem was they did not have the resources to fund or organise visits to the

UK by the Chinese. Dr Bristow-Smith suggested that, if the need for a visit was identified sufficiently far in advance, it might be possible for the FCO to assist under the OVIS sponsored visits

quota.

16. Mr Davies introduced the subject of Taiwan. UK links with

Taiwan had improved over the past year. The fundamentals remained unchanged. The UK does not recognise Taiwan and does

not have diplomatic relations. However, Taiwan was now an

important player in the world economy. For 15 years the

Anglo-Taiwan Trade Committee (ATTC) had been run by the private

sector. Since April 1992 the Director has been Philip Morrice,

from FCO. This change had been well-received by the Taiwanese.

The Chinese had been told and accepted the situation (which was

the same as the US, Japan, Germany and France).

17.

There had now been three "private" ministerial visits to

Taiwan Mr Redwood from the DTI, and a Minister each from the

Welsh and Scottish Offices in search of inward investment.

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Mr Baldry from the Department of the Environment would be next.

Lady Thatcher made a high profile and highly successful visit in

August 1992.

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