TNAG-2795-FCO40-4035-Relations-between-Hong-Kong-and-Taiwan-1993 — Page 26

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

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KMT on 24 November in protest. Deputy Director-General of the Government Information Office, Wu Chung-lih, downplayed the significance of the change, describing it as a change in tactics rather than a change in strategy. Mainland Affairs Council (MAC) Chairman, Huang Kun-hui, said Taipei has always promoted the "one-China" principle but recognises that there are two separate Chinese political entities. He said Chiang Ping-kun made his remarks about "two-Chinas" in Seattle in order to refute remarks by PRC President Jiang Zemin. However, this recent incident is indicative of how difficult it is becoming to discern substantial differences between the KMT's line and that of the DPP.

11. President Lee Teng-hui spoke out on 11 November about the need to give priority to Taiwan's security over trade and investment opportunities. He said that exploiting business opportunities was important, but "national interests" had to come first. These remarks followed a decision to block a proposed easing of the government's restrictions on Taiwan investment in China. The Economics Ministry had proposed to let Taiwanese firms invest in many more industries than at present, but withdrew the plan after a meeting with the Mainland Affairs Council. Although Taiwan's business community has applied heavy pressure to ease restrictions, the government has to ensure that the line between economic and political links does not become too blurred.

12. Taiwan's Atomic Energy Council said that it plans to ask China to cooperate on nuclear waste storage projects. Formal talks have not yet been held, but experts from Taiwan and China have discussed the issue. At present, nuclear waste is dumped on Orchid Island, a small aboriginal island off Taiwan's south-east coast. However, the facility there will be filled up within three years.

International Relations

13.

The British Aerospace deal went quiet in November, negotiations having been postponed until after the November 27 elections. The Government was anxious that opposition to the deal should not dominate political campaigning and interfere with the outcome of the elections. On 5 November, Chu Hsing, acting President of the Taiwan Aerospace Corporation (TAC), proposed to BAe that they cancel plans for co-production of the RJ regional passenger jet. He said TAC wanted to continue talks about the other half of the joint venture the development of a new two-engine regional passenger jet known as RJ-X. TAC Chairman, Earle Ho, announced that the decision to focus on development of the RJ-X had been made at a recent TAC board meeting. BAe has long insisted that there should first be a deal to produce the RJ.

14.

On 19 November, United Nations Secretary-General Dr Boutros Boutros-Ghali said Taiwan was an integral part of China and there was "no possibility" of Taiwan joining the UN as a separate country. This will have pleased the Chinese, who used it in rhetoric against Taiwan later in the month. Some good news for Taipei, though: ASEAN has reportedly agreed in principle to admit Taiwan as a dialogue partner next year.

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