TNAG-2794-FCO40-4034-Relations-between-Hong-Kong-and-Taiwan-1993 — Page 140

CONFIDENTIAL

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POLICY ON SALE OF DEFENCE RELATED EQUIPMENT AND TECHNOLOGY TO TAIWAN

DRAFT GUIDELINES

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GENERAL POSITION

We recognise the Chinese People's Government as the sole legal Government of China and have stated in public that the Taiwan question is China's internal affair to be settled by the Chinese people themselves. China's aim is the eventual reunification of Taiwan with the mainland. Arms sales to Taiwan by third parties are regarded by Peking as an unfriendly act contributing to the continuation of Taiwan's separation from the PRC and therefore as interference in China's internal affairs.

We cannot ignore this firm Chinese position nor our own position agreed with China in 1972, We must proceed with circumspection if we are to permit any military or para-military equipment sales to Taiwan. Nevertheless, in view of other countries' readiness to contemplate some relaxation in this area, we can very slightly amend our existing guidelines to accommodate the possibility of using a third country route in certain carefully defined circumstances.

Our position must at the same time be consistent with our international obligations recently entered into on increased transparency of arms sales and on reducing proliferation of weapons of mass destruction and of arms sales into areas of tension. The Taiwan Strait remains an area of tension, if quiescent at present. We must in particular take careful account of the P5 guidelines agreed in October 1991 which inter alia oblige each of the P5 to avoid arms sales which interface in the

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CONFIDENTIAL