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DONE IN ANY WAY TO TAKE ADVANTAGE OF FRENCH DIFFICULTIES. LEVITTE COMMENDED THE IDEA OF OUR OPENING IN CANTON. THE GUANGDONG LEADERSHIP HAD BEEN FURIOUS AT BEING MADE VICTIMS OF PEKING'S REACTION. IT WAS IN THE WEST'S INTERESTS TO GET PROVINCIAL LEADERS ON THEIR SIDE.

4.

SIR J COLES OUTLINED THE UK'S POLICY OF STEADILY INCREASING CONTACTS WITH TAIWAN WHILE AVOIDING ACTIONS PARTICULARLY PROVOCATIVE TO PEKING. LEVITTE COMMENTED THAT THE CHINESE HAD MADE NO DIFFICULTY ABOUT THE NEW FRENCH REPRESENTATIVE IN TAIPEI, REAU, WHO WAS A FORMER NUMBER TWO IN THEIR EMBASSY IN PEKING. HIS MAIN ROLE WOULD BE TO CALM DOWN TAIWAN ASPIRATIONS FOR GREATER CONTACTS.

5.

ON AIR SERVICES WITH TAIWAN, LEVITTE SAID THAT THE FRENCH WERE TAKING A FIRM LINE. THEY HAD NO INTENTION OF NEGOTIATING ANYTHING WITH PEKING. INSTEAD THEY INTENDED TO USE THEIR CURRENT LOW POINT IN RELATIONS WITH CHINA TO SET UP THE AIR LINKS. DAVIES, FED, EXPLAINED WHERE WE WERE IN OUR DISCUSSIONS WITH THE CHINESE AND THE LIKELIHOOD THAT AIR LINKS WOULD BE STARTED AS FROM THE BEGINNING OF THE SUMMER SCHEDULE. WE TOO HAD NEVER ACCEPTED QUOTE NEGOTIATIONS UNQUOTE WITH THE CHINESE. WE HAD NEVERTHELESS AGREED TO DISCUSSIONS OVER A PRESS STATEMENT AND AN EXCHANGE OF LETTERS WHICH HAD BECOME QUITE PROLONGED, AND HAD BEEN COMPLICATED BY A CHANGE OF POSITION BY BRITISH AIRWAYS AT A CRUCIAL POINT. THE CHINESE HAD EXERTED DIRECT PRESSURE ON THE AIRLINE ITSELF. LEVITTE SAID THAT AIR FRANCE WOULD MAKE SOME SUITABLE FACE SAVING GESTURE TO THE CHINESE.

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148

.CHINA POLITICAL

FED

UND

LEGAL ADVISERS

PUSD

INFO D

DISTRIBUTION

159

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SEAD

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PS/BARONESS CHALKER

PS/MR GOODLAD

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