TNAG-2291-FCO40-3300-Relations-between-Hong-Kong-and-Taiwan-1991 — Page 39

CONFIDENTIAL

C

L

iv)

v)

To develop peaceful reunification the PRC have made the following suggestions:

a) discussions on air links, mail, trade, shipping and private travel, with a view to boosting China's economy and the well-being of the Chinese people as a whole;

b) party to party contacts, leading to talks on reunification;

c) the CCP central committee welcomed members of the KMT central committee to visit the mainland, and was ready to reciprocate.

The PRC had noticed that certain countries were trying to establish substantive relations, with Taiwan under the pretext of legitimacy (ie citing the recent easing of tension); they were either unaware of the essence of the issue, or taken in by the Taiwan authorities, or taking advantage of the situation. Certain countries had allowed Taiwan to set up institutions and raise the level of contacts under this pretext; some had shown the intention of striking a balance between China and Taiwan to gain material wealth. The PRC hoped that these countries would not be misled by short-term interest.

2. Mr Lin stated that the PRC highly appreciated the UK position, honouring the 1972 Joint Communiqué, and the great efforts made by the UK in promoting friendly relationships in cooperation with China.

We were

3. Mr Davies thanked Mr Lin for this briefing. encouraged that steps were being taken on both sides: we should like nothing better than for China and Taiwan to solve their problems since these gave us problems too. Ambassador Ji had noticed that many Taiwan firms now operated in China and that some UK companies were interested in working with them; he thought this a good idea.

As far as relations with Taiwan were concerned, we remained clear about our attitude, which was in accordance with the 1972 Joint Communiqué. We had no intention of changing this policy. But as had been discussed before, Taiwan's increasing commercial importance made contacts over commercial and trade policy matters essential. The PRC had assured us that they understood the reasons for this and did not wish to stand in its way. We would continue to maintain a clear distinction between political contacts and commercial or cultural contacts. As the Chinese knew, the Anglo-Taiwan Trade Committee (a non-governmental organisation) existed to promote our commercial and cultural interests. Its Visa Handling Unit had been set up to facilitate the issue of visas; it did not itself have any consular function. Our position was

CONFIDENTIAL