13-10

Indeed

45.

Mr Fry, FED

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HICC 02015

RECESS

MAI 1993

STRY

TROSOY

on Taker

Policy towards Taiwan

¿ he s Rusketts (thD

M

May, 1715 ith Booke 't/s.

Mr

ра

The Secretary of State and the President of the Board of Trade agreed with your proposal to handle the message the President of the Board of Trade wished to convey to the Taiwanese Government. I understand that Mr Morrice will be speaking to the office of the Taiwanese President tomorrow, as agreed, leaving behind a speaking note.

Both the Foreign Secretary and the President of the Board of Trade have raised the question whether, in the light of recent political developments, we should not look to relax further the restrictions we place on dealings with Taiwan. We have moved some way already over the past three years. But the recent face-to-face talks between the Chinese Government and the Taiwanese authorities demonstrate that the thaw in Chinese/Taiwanese relations is, if anything, accelerating.

We do not want to push the Chinese too hard in a way which proves counter productive on Hong Kong or our own rapidly growing trade with China. But at the same time, we need to maximise our trade opportunities in Taiwan and at least keep up with our main competitors in that market.

The Secretary of State would be grateful if you could .-put forward the options for taking further the steady build

up of our ties with Taiwan.

I should be grateful if you would submit by 20 May.

13 May 1993

CC

PS

PS/Mr Goodlad PS/PUS

Sir John Coles

Jo

Mr Crowe

Mr Hum

Mr Mingay

Sewer

(R J Sawers)

Joint Directorate

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