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W(B)L 51-7406
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diplomatic relations with the Republic of China
but at the same time made every effort to
improve relations with Communist China - in
other words the "separation of political and
economic matters".
6.
In the recent Japanese-Canadian talks the
Canadian Foreign Minister had expressed under-
standing of the Japanese position on China and
had undertaken to keep the Japanese informed on
the progress of Canada's negotiations with
China. The importance of Taiwan for Japanese
security made it impossible for Japan to throw
Taiwan aside. In the U.N. context, Japan would
have difficulty in accepting an Albanian-type
resolution. The Japanese Government considered
Chinese representation an important question, 1.7.
Mr. Stewart conceded that Japan's policy in
regard to Taiwan was imposed on Japan by her
situation. The Government of Taiwan would
eventually give up its claim to be the Govern-
ment of the whole of China. The problem of
the United Nations seat was at present insolu-
able since both Peking and Taiwan claimed
sovereignty over the whole of China. In time
a solution would emerge. While the future was
obscure, Britain and Japan should continue to
do business (and in our case to maintain
diplomatic relations) with China and remain as
patient as possible.
8. While agreeing generally with the Japanese
assessment of China's policies, Mr. Stewart
thought that the 9th Congress would be followed
/by
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