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FM ATTC TAIPEI
TO IMMEDIATE FCO
TELNO 121
OF 11083OZ MAY 93
AND TO IMMEDIATE DTI
185
14 MAY 1993
INFO PRIORITY PEKING, HONG KONG BTC HONG KONG, WASHINGTON
045213 MDHIAN 0457
Not
farible
DTI FOR OT2/2 AND AIR DIVISION
MY TELNO 103: UK/TAIWAN AEROSPACE COLLABORATION
SUMMARY
1. CHAIRMAN OF ROLLS ROYCE SEEKING INVOLVEMENT IN JOINT VENTURE. BANKS RAISING QUESTIONS OVER FINANCIAL VIABILITY OF BAE. DEFENCE
ANGLE BEING BROUGHT INTO THE EQUATION INCLUDING VISITS AND
POSSIBLE JOINT DEVELOPMENT OF THE HAWK/IDF. TAIWANESE TRYING TO EXTRACT MAXIMUM RETURN ON THEIR INVESTMENT.
DETAIL
2.
SIR RALPH ROBINS, CHAIRMAN OF ROLLS ROYCE, VISITED TAIPEI FROM 8 TO 10 MAY, OSTENSIBLY TO PRESS ROLLS ROYCE'S CASE FOR BEING ENGINE SUPPLIER TO CHINA AIRLINES WHICH WILL SHORTLY BE MAKING DECISIONS ON ITS FUTURE FLEET COMPOSITION. HOWEVER, HE ALSO USED THE OPPORTUNITY TO RAISE WITH THE TAIWANESE GOVERNMENT ROLLS ROYCE'S INTEREST IN PROVIDING, THROUGH THE ROLLS ROYCE/BMW JOINT VENTURE, THE NEW ENGINE FOR THE REGIONAL JET (RJ) TO BE DEVELOPED BY AVRO AEROSPACE INTERNATIONAL (THE BAE/TAIWAN AEROSPACE CORPORATION JV), AND FOR WHICH ROLLS ROYCE NEED FINANCING.
3. I ACCOMPANIED HIM ON HIS CALLS, THE MOST SIGNIFICANT OF WHICH WERE ON PREMIER LIEN CHAN AND VICE MINISTER GEORGE YANG OF THE MINISTRY OF ECONOMIC AFFAIRS. (YANG IS THE SPONSORING MINISTER FOR THE AEROSPACE INDUSTRY).
and about te
4.
THE PREMIER SPOKE IN GENERAL, SUPPORTIVE TERMS ABOUT THE RJ PROJECT AND REFERRED TO DIFFICULTIES WHICH HAD ARISEN OVER THE STATUS OF AIDC AND ITS RELATIONSHIP WITH THE MINISTRY OF NATIONAL DEFENCE. ITS FACILITY FOR BUILDING THE INDIGENOUS DEFENCE FIGHTER (IDF) WAS A WHOLLY MILITARY ESTABLISHMENT AND ITS USE FOR PRIVATE COMMERCIAL PURPOSES HAD POSED CERTAIN PROBLEMS. HOWEVER,
IT LOOKED AS IF THESE WOULD BE RESOLVED.
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