TNAG-0370-FCO40-416-Visit-of-Edward-Heath--UK-Prime-Minister--to-Hong-Kong--12-1-1973 — Page 57

CONFIDENTIAL

THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC

MAJESTY'S GOVERNMENT

31

PMVC(74)16

12 December 1973

PRIME MINISTER'S VISIT TO CHINA JANUARY 1974

BRITISH TRADE WITH TAIWAN

Our political commitment to China regarding Taiwan

has not been treated by China or by the UK as inhibiting

our trade with Taiwan provided that any semblance of

acknowledgement of the Taiwan regime is strictly avoided.

Subject to this proviso private trade is encouraged (and ECGD

cover provided) although firms who may also propose to trade

with China are warned of the need to consider possible inter-

actions. The Chinese seem fully to accept the trading between

Taiwan and UK (and other countries) and have raised no

difficulties.

2 Taiwan is now one of the largest markets in Asia. During

the last decade GNP has grown at about 10% each year, reaching

£2,480m in 1972 (per capita £166); imports last year rose 40%

to £1100m.

46%

Exports rose/to £1240m. The comparable figures

for China are £930m and £975m. Major suppliers are Japan (40)

and the US (20%). It has been forecast that by the end of

1976 the volume of two-way trade will total £4400m, with exports

reaching £2260m. A breakdown of Taiwan's trade figures,

showing her main trading partners, is attached at Annex A.

3

British exports to Taiwan in 1972 at £11m were very little up

This year

on 1971 and represented only 1% of total imports.

however they should exceed £20m.

Taiwan's exports to this

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/country