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From the Private Secretary

CONFIDENTIAL

Drs. Fry, FED

64

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10 DOWNING STREET

LONDON SW1A 2AA

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2 July 1993

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TAIWAN: PRIME MINISTER'S MEETING WITH DR JEFFREY KOO | /tik_

I shall be circulating separately a record of Dr Koo's conversation with

the Prime Minister this morning.

سخانات

As anticipated in the briefing letter of 30 June from Elizabeth Jones of the DTI, Dr Koo handed over a letter of introduction from Mr Lien Chan. Adurin

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At the end of the conversation about the prospects for the British Aerospace joint venture (in which Dr Koo reserved his own position on the Chairmanship of TAC), Dr Koo pressed the Prime Minister to give him a reply to Lien Chan's letter. There was a clear implication that this gesture could have a material effect on the joint venture negotiations. Phillip Maurice warned that the absence of diplomatic relations would be a complication. It was left that we would consider further how the Prime Minister might communicate with the Taiwanese.

The Prime Minister would like to find a way of writing to Lien Chan, but without prejudicing our position on recognition or our relationship with the PRC. He notes that other Western countries have found ways of developing their relationship with Taiwan, and that we have now opened our post there and staffed it with diplomatic service officers. Taiwan is becoming increasingly important, as was reflected in the pressure from you and DTI on the Prime Minister to receive Dr Koo. We need to find a way of moving with the times. The Prime Minister believes that it should be possible for him to write a letter, so long as it contains the disclaimers necessary to protect our legal position.

I enclose a cock-shy at a draft, which says the sort of things the Prime Minister might say. You will obviously wish to rework this, and subject it to

CONFIDENTIAL

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