TNAG-2794-FCO40-4034-Relations-between-Hong-Kong-and-Taiwan-1993 — Page 50

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RESTRICTED

FM ATTC TAIPEI

TO IMMEDIATE FCO

TELNO 121

OF 11083OZ MAY 93

AND TO IMMEDIATE DTI

185

14 MAY 1993

INFO PRIORITY PEKING, HONG KONG BTC HONG KONG, WASHINGTON

045213 MDHIAN 0457

Not

farible

DTI FOR OT2/2 AND AIR DIVISION

MY TELNO 103: UK/TAIWAN AEROSPACE COLLABORATION

SUMMARY

1. CHAIRMAN OF ROLLS ROYCE SEEKING INVOLVEMENT IN JOINT VENTURE. BANKS RAISING QUESTIONS OVER FINANCIAL VIABILITY OF BAE. DEFENCE

ANGLE BEING BROUGHT INTO THE EQUATION INCLUDING VISITS AND

POSSIBLE JOINT DEVELOPMENT OF THE HAWK/IDF. TAIWANESE TRYING TO EXTRACT MAXIMUM RETURN ON THEIR INVESTMENT.

DETAIL

2.

SIR RALPH ROBINS, CHAIRMAN OF ROLLS ROYCE, VISITED TAIPEI FROM 8 TO 10 MAY, OSTENSIBLY TO PRESS ROLLS ROYCE'S CASE FOR BEING ENGINE SUPPLIER TO CHINA AIRLINES WHICH WILL SHORTLY BE MAKING DECISIONS ON ITS FUTURE FLEET COMPOSITION. HOWEVER, HE ALSO USED THE OPPORTUNITY TO RAISE WITH THE TAIWANESE GOVERNMENT ROLLS ROYCE'S INTEREST IN PROVIDING, THROUGH THE ROLLS ROYCE/BMW JOINT VENTURE, THE NEW ENGINE FOR THE REGIONAL JET (RJ) TO BE DEVELOPED BY AVRO AEROSPACE INTERNATIONAL (THE BAE/TAIWAN AEROSPACE CORPORATION JV), AND FOR WHICH ROLLS ROYCE NEED FINANCING.

3. I ACCOMPANIED HIM ON HIS CALLS, THE MOST SIGNIFICANT OF WHICH WERE ON PREMIER LIEN CHAN AND VICE MINISTER GEORGE YANG OF THE MINISTRY OF ECONOMIC AFFAIRS. (YANG IS THE SPONSORING MINISTER FOR THE AEROSPACE INDUSTRY).

and about te

4.

THE PREMIER SPOKE IN GENERAL, SUPPORTIVE TERMS ABOUT THE RJ PROJECT AND REFERRED TO DIFFICULTIES WHICH HAD ARISEN OVER THE STATUS OF AIDC AND ITS RELATIONSHIP WITH THE MINISTRY OF NATIONAL DEFENCE. ITS FACILITY FOR BUILDING THE INDIGENOUS DEFENCE FIGHTER (IDF) WAS A WHOLLY MILITARY ESTABLISHMENT AND ITS USE FOR PRIVATE COMMERCIAL PURPOSES HAD POSED CERTAIN PROBLEMS. HOWEVER,

IT LOOKED AS IF THESE WOULD BE RESOLVED.

1

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