TNAG-2795-FCO40-4035-Relations-between-Hong-Kong-and-Taiwan-1993 — Page 70

DRAFT LETTER FROM THE PRIME MINISTER TO MR LIEN CHAN

I was glad to have an opportunity on 2 July to meet Dr Jeffrey Koo, who

conveyed your letter of 12 June to me. As you will appreciate, I am replying

to your letter in a personal rather than official capacity. [Or: in my capacity

as a Member of Parliament representing a constituency which includes

aerospace companies]. This is because of the United Kingdom's position on recognition, which is well known to you, and because we do not have formal

diplomatic relations.

I do not believe that the absence of diplomatic relations should be an

impediment to trade. As I told Dr Koo, I am delighted that trade and industrial

collaboration between the UK and Taiwan has increased so significantly. I

attach great importance to the proposed joint venture between British Aerospace

and the Taiwan Aerospace Corporation. The commercial details of the joint venture are a matter for the companies concerned, but I am sure that a successful conclusion to the negotiations would benefit both sides. Dr Koo told

me that he was considering the possibility of becoming Chairman of the Taiwan Aerospace Corporation. I am sure that the personal involvement of such a respected and senior businessman would reinforce the prospects for a highly

successful undertaking.

Dr Koo told me that his trade mission was having a most successful visit to the

UK. I am sure this will help to generate increased business in many areas.

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