TNAG-2749-FCO40-3964-Economic-situation-in-Hong-Kong-1993 — Page 267

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

TAIWAN IS IN THE MARKET FOR MAJOR ARMS PURCHASES? [US AND FRANCE HAVE AGREED MAJOR DEALS]. ARE UK

COMPANIES MISSING OUT (defensive)?

WHAT IS TAIWAN'S POLITICAL FUTURE? PROSPECTS FOR

INDEPENDENCE?

WHAT PRESSURE IS HMG PUTTING ON TAIWAN AUTHORITIES TO STAMP OUT TRADE IN RHINO HORN? WHAT ABOUT EC TRADE SANCTIONS?

It is our policy that

we do not sell to Taiwan any defence-related equipment which would enhance the military capability of the Taiwan armed forces. Military sales to Taiwan can cause complications for companies and indeed countries involved.

case in point is the recent closure of the French Consulate in

A

Canton and the possible exclusion of French firms from a major contract in retaliation for Mirage sales to Taiwan.

Taiwan is moving towards democracy. The first full elections to Taiwan's parliamentary body, the Legislative Yuan, took place in December 1992. For the first time the main opposition party has won real influence. There are increasing calls for Taiwan independence or "one China, one Taiwan", even amongst the ranks of the ruling Kuomintang. But "one China" remains very much the policy of the Taiwan authorities.

We have expressed to the Taiwan authorities our concern over illegal trade in rhino products. In November last year the Taiwan authorities

announced a ban on the rhino horn trade and measures to enforce it.

We have no plans at present to raise the subject in the EC

Article 113 Committee

[called for by the campaigners].

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