TNAG-2619-FCO40-3810-Official-visits-from-the-UK-to-Hong-Kong-1992 — Page 72

RESTRICTED

FM FCO

TO PRIORITY ATTC TAIPEI

TELNO 4

OF 16173OZ JULY 92

RESTRICTED

for 026/1

1. JUL 1992

Pa

030132 MDLOAN 11.70

TOP COPY

Q DIST?

INFO PRIORITY PEKING, HONG KONG, UKREP JLG HONG KONG

INFO PRIORITY BTC HONG KONG

83

FCO TELNO 2: PROPOSED VISIT TO TAIWAN BY MR STEWART SCOTTISH OFFICE

SUMMARY

1 CHINESE EMBASSY BRIEFED ON LIKELIHOOD OF VISIT BY MR STEWART. CHINESE ASK HMG TO RECONSIDER. WE EMPHASISE IMPORTANT ECONOMIC INTERESTS INVOLVED AND PROPOSED PRIVATE NATURE OF VISIT.

DETAIL

2. HEAD OF FED BRIEFED YUAN, CHINESE EMBASSY ON 16 JULY ON THE LINES SET OUT IN TUR. YUAN, WHO APPEARED NOT TO HAVE SEEN THE FT ARTICLE, EXPRESSED APPRECIATION. HE WENT ON TO REITERATE CHINA'S FLEXIBLE AND ACCOMMODATING ATTITUDE TOWARDS UK/TAIWAN CONTACTS, PROVIDED THAT SUCH CONTACTS WERE UNOFFICIAL. HE ASKED THAT THE FCO SHOULD SEEK AN ALTERNATIVE MEANS OF PROMOTING THE SCOTTISH OFFICE INTERESTS IN TAIWAN. THIS SHOULD NOT BE BEYOND FCO INGENUITY. DAVIES SAID THAT SCOTLAND, AS A REGION OF THE UK, WISHED TO DEVELOP BROADER RELATIONS WITH THE REGION OF TAIWAN. THE MAIN INTEREST WAS TO ATTRACT TAIWAN INWARD INVESTMENT. YUAN REITERATED THAT THIS SHOULD BE DONE BY MEANS OTHER THAN OFFICIAL CONTACT. DAVIES SAID THAT CHINESE VIEWS WOULD BE TAKEN INTO ACCOUNT AND CONVEYED TO THE SCOTTISH OFFICE. NO FINAL DECISIONS HAD YET BEEN TAKEN BUT, AS HE UNDERSTOOD IT, THE PROPOSAL WAS FOR A PRIVATE VISIT MUCH ON THE LINES OF THAT CARRIED OUT BY MR REDWOOD.

3. YUAN SAID THAT HE WOULD REPORT AND REVERT IF NECESSARY.

.

4 COMMENT: A LOW-KEY RESPONSE BY YUAN. WE CAN HOWEVER EXPECT: CONSIDERABLY GREATER PRESSURE TO BE EXERTED ON THIS ISSUE OVER THE COMING PERIOD. THE CLOSE PROXIMITY OF THE VISIT TO LADY THATCHER'S WILL MAKE THE CHINESE DOUBLY SENSITIVE. THE CHINESE AMBASSADOR CONTINUES TO EXPRESS GRAVE CONCERN ABOUT LADY

1

PAGE

RESTRICTED