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Mus. 021/4

MUD

RECF

- 8 DEC 1993

the lut Sup(tm) (pun 8).

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FM PARIS

OFFICE

TO ROUTINE FCO

INJES

TELNO 1248

JI$17

Action Take

190

136272

MDLIAN 4836

OF 071731Z DECEMBER 03

INFO ROUTINE PEKING, HONG KONG, BTCO TAIPEI, BONN, LISBON INFO ROUTINE WASHINGTON, MODUK, ACTOR

SIC

FRANCE/CHINA/TAIWAN

SUMMARY

1. French now working to make up ground on China. Clear public statements in this sense by Juppe. But Chinese keep up pressure. No final decision yet on arming Taiwanese frigates.

2.

We press

Juppe raises Head of State invitation with Kinkel. for support in rallying EU. French take note but doubt that we will succeed.

DETAIL

3. Despite a burst of activity over the summer suggesting the French were still keeping their Taiwan connection open (teleletter Townson/Fry, FED, of 25 September), the French are now adopting a more pro-Peking stance. In two public statements in November Juppe said China was the priority.

interview on 29 November he said: "Is it more sensible to put our money on a country of 20 million or on a country of over 1 billion people which is probably already the world's third economic power?" He insisted that the Mirage contract with Taiwan had to be honoured but blamed it on the previous government.

4. We discussed Juppe's remarks with Pasquier, Head of Quai Far Eastern section, on 1 December. He said that Juppe's attitude reflected a clear evolution in French thinking at a senior level. Several factors were in play. First, it was now clear that the Chinese embargo against French companies was serious and comprehensive. Senior executives of major French industries did not like the cool reception they were getting in Peking and were making their views felt in Paris. Second, the German decision to plump for China had made a considerable impact in France, where there was a healthy respect for German commercial instincts. Third, the French were realising that, whatever Taiwan's hard

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