TNAG-2355-FCO40-3426-Visit-by-Douglas-Hurd--Secretary-of-State-for-Foreign-and-Co-1991 — Page 61

CONFIDENTIAL

027246 MDHIAN 9791

AND THAT HONG KONG'S PARTICIPATION IN APEC IN THE NAME OF HONG KONG (AND QUOTE HONG KONG, CHINA UNQUOTE AFTER 1997) WOULD CONSTITUTE ADEQUATE RECOGNITION OF THE CLEAR DIFFERENCE BETWEEN CHINA AS A SOVEREIGN STATE AND HONG KONG AS A REGIONAL ECONOMY.

5. OUR ASSESSMENT IS THAT THE MAIN DIFFICULTY LIES BETWEEN

CHINA AND TAIWAN OVER THE LATTER'S STATUS AND NOMENCLATURE IN JOINING APEC. WE WILL CONTINUE TO PURSUE OUR CASE FOR FULL PARTICIPATION IN APEC.

WILSON

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HKD

FED

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DISTRIBUTION

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MR BURNS