CODE 18-77
020/5
TRECISTRY
RECEIVED DU DECISTRY
DESK (
X
7 JJ 1993
PA
REGISTRY Action Taken
RESTRICTED
M&A/67/6
MON 7/6 Box Mi Maslott,
716
Reference.
Mr Fry
50
From: W Morris
Date: 2 June 1993
cc: Mr Morris, HKD
Mr Morrice, ATTC,
Taipei
Mr Wye, RAD
H. Cox, feling.
TAIWAN: MAINLAND AND OTHER AFFAIRS
1. Miss Painting and I were invited by Edmund Tseng, Director, Public Affairs Division, Taipei Representative Office here to lunch on 26 May with Mr William Lee and Mr Huang Han-Chao, Director and Senior Specialist respectively of the Department of Hong Kong and Macao Affairs, Mainland Affairs Council, Executive Yuan. Mr Lee hac hoped to meet members of the FCO to discuss Hong Kong but instead this opportunity was created for us to hear something about recent Taiwan-China contacts. A copy of Mr Lee's CV is attached.
2. It was an agreeable occasion and a good opportunity for some mid-level contact on neutral ground with Taiwanese officials to discuss matters of mutual interest. I do not think we learned anything significant we did not know already about the recent Koo-Wang talks which Philip Morrice and Peking have reported in some detail. I had the feeling however that the Taiwanese were now in a quandary as to how to proceed on closer links with China. Mr Lee agreed that the public were somewhat confused and that efforts were being made to lower some exaggerated expectations. The Taiwanese authorities were also concerned about too much investment in China, partly because it would be unwise for Taiwanese business to become too dependent on the mainland. We detected no indication that changes were likely to be made in the near future to the rule forbidding direct trade and investment. But like it or not, the trade and investment relationship was becoming steadily stronger. If the Taiwanese did not go in, Mr Lee said, the South Koreans and others would, and Taiwan would lose out. He agreed with a point made in our own reporting that whereas the Chinese had gone into the talks with a pretty wide brief, the Taiwanese side had concentrated on a more specific and narrow agenda of practical points.
3.
Mr Lee, exuding a certain pomposity, spent some time stressing the important role he plays in Hong Kong watching and policy making with regard to Hong Kong. He said he had been very surprised by th Chinese reaction to the Taiwan trade union call on the Governor las year. It was tempting at times to want to speak out in support of Governor Patten's proposed democratic steps but Mr Lee felt, on balance, that that would probably be unwise. I strongly agreed. would not be helpful to internationalise the problem, which was principally one for Britain and China to sort out.
I
2 JUNEWMmin
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