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currency reserves, when it came to payment, it was the immediate budgetary balance which counted. On this, the Taiwanese were not performing well. Fourth, the continuing high rates of economic growth in China were having a psychological effect in Paris: the French did not wish to be left behind.
Asked whether the French were getting any return from the Chinese for this shift in presentation,
5.
Pasquier said not. The Chinese Ambassador here had said Peking could not afford to let the French off the hook so lightly because of the signal this would give to other countries being wooed by the Taiwanese. On 3 December the French press reported a further statement by the Chinese Foreign Ministry spokesman calling for the cancellation of French arms sales to Taiwan.
6.
The
Pasquier reiterated that the Mirage contract was not under threat. The present French government could blame it on its predecessor. On the other hand, there had not been a final signature on the sale of weapons to arm the Lafayette frigates. socialist government had given the Taiwanese firm promises about these weapons but only a negotiating mandate had been signed. The question of a final sale was still in the balance. Pasquier offered no predictions.
7. We separately raised the question of invitations at Head of State Level. Richier, Asia adviser in Juppe's Cabinet, said that Juppe had raised the invitation to Jiang Zemin with Kinkel at the Franco/German Summit last week. But this had been a brief and insubstantial exchange. Richier had nothing to offer on the German response.
8.
We told Richier that we proposed salvaging what we could of the EU ban for Hong Kong reasons. Richier understood our approach but expressed some doubt about what we could achieve. The German invitation had de facto rendered the ban obsolete. We replied that we did not have unrealistic expectations but if we could prevent Jiang Zemin having a triumphant tour of Europe next year then this would be an achievement in itself. We looked to the French for support on this issue at the Asia working group. Richier took note and undertook to transmit our message within the French administration. But he offered no commitments.
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