TNAG-2498-FCO40-3636-Relations-between-Hong-Kong-and-Taiwan-1992 — Page 74

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appropriate forum at this time. He believed that Hong Kong and China's positions were not inconsistent.

EXCHANGE OF EXPERIENCE

10. Qin said that it would be helpful for China and Hong Kong to exchange experience on how best to coordinate APEC matters internally. China had encountered co-ordination problem in dealing with Asia-Pacific matters. In view of its involvement in APEC, PECC, ESCAP and other Asia- Pacific matters, China had set up a special section dealing with Asia-Pacific matters this year. At present, China had joined seven APEC working groups and intended to join two more.

11.

DGT said that co-ordination work on APEC matters was done by Trade and Industry Branch. Hong Kong participated in all working groups which were of interest to Hong Kong.

VI BILATERALS WITH OTHER APEC MEMBERS

12.

DGT informed Qin that Hong Kong had been holding bilaterals with other APEC members including Taiwan. Discussions with Taiwan were held under the APEC framework and covered mainly economic and trade issues.

VII

13.

Qin said that he saw no objection to the exchange of views between Hong Kong and Taiwan under the APEC framework. He also took note of Taiwan's important role in economic and trade matters under the international trading system.

SALE OF F165 TO TAIWAN

14.

DGT asked whether the US sale of F16s to Taiwan might have affected US/China bilateral relations, which would in turn sour the atmosphere in APEC IV. Qin said that the US act had aroused a strong reaction from China. The US move was unwise because it would affect the

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