TNAG-2910-FCO40-4185-International-support-from-Asia-regarding-the-future-of-Hong-1993 — Page 72

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074166 MDLIAN 8798

IN THEIR OFFICE. HE DID NOT SEE THIS MOVE AS HAVING ANY IMMEDIATE EFFECT ON JOHN NI'S MFA-FUNDED OPERATION, THE OCCASIONAL MALADROITNESS OF WHICH HE WAS FULLY AWARE.

8. I PRESSED HIM FURTHER ON THE NAME, SOURCE OF FUNDING AND TIMING. HU SAID THAT THE USE OF 'TAIPEI' WOULD SATISFY THE CHINESE. OUR REFERENCE TO THE 'PACIFIC FOUNDATION' (PARA 3 OF HONG KONG TUR) WAS ERRONEOUS SINCE THAT HAD BEEN RELATED TO ANOTHER INITIATIVE WHICH HAD BEEN ABANDONED. THE COST OF THE OFFICE WOULD HAVE TO COME FROM THE GIO BUDGET BTU SINCE THEY WOULD BE SIMPLY INCREASING EXISTING FUNDING, HE COULD NOT SEE THIS AS BEING A REAL DIFFICULTY. ON TIMING, I EXPLAINED THE PROBLEM OVER THE FORTHCOMING LEGISLATIVE COUNCIL MEETING TO CONSIDER THE PRO-DEMOCRACY PROPOSALS. THIS WAS THE ONLY POINT IN WHICH I FOUND HU LESS THAN DIRECT. HE SAID THAT THE CHANGE-OVER WOULD BE HAPPENING 'IN THE VERY NEAR FUTURE', BUT IF WE FELT STRONGLY ABOUT THE MATTER WE SHOULD TAKE IT UP AT A HIGHER LEVEL. HE SUGGESTED THAT I SHOULD TAKE THE OPPORTUNITY OF A CHANGE IN PRIME MINISTER TO SEE THE NEW INCUMBENT SHORTLY AFTER HE TOOK OFFICE IN ORDER TO EXPLAIN OUR POLICY ON HONG KONG SO AS TO ENSURE THAT THE TAIWANESE GOVERNMENT'S UNDERSTANDING OF THE DELICACY OF OUR POSITION CONTINUED AFTER THE DEPARTURE OF PREMIER HAU.

9. I SAID THAT I WOULD REPORT HIS EXPLANATION BUT THAT I COULD FORESEE PROBLEMS OVER THE TIMING AND THE SOURCE OF FUNDING, IF NOT THE NAME. I WOULD REFLECT ON HIS SUGGESTIONS ABOUT THE PREMIER AND SEEK FURTHER INSTRUCTIONS. IN THE MEANTIME, I WOULD APPRECIATE IT IF HE KEPT ME INFORMED OF FURTHER DEVELOPMENTS, WHICH HE SAID HE WOULD.

10. I ASKED ALSO ABOUT PROGRESS ON THE HONG KONG RELATIONS ACT AND SAID I WISHED TO KEEP IN TOUCH WITH THE APPROPRIATE AUTHORITIES OVER THE VISIT OF THE HONG KONG DIRECTOR GENERAL OF TRADE (HONG KONG TELNO 2893). ON THE FORMER HE SAID THAT DRAFTING HAD NOT EVEN STARTED (I HAVE HAD CONFIRMATION OF THIS FROM ELSEWHERE) THE RESPONSIBILITY RESTED WITH THE MAINLAND AFFAIRS COUNCIL (MAC). HE WOULD KEEP ME INFORMED ONCE THEIR THINKING HAD STARTED TO DEVELOP. ON THE VISIT, HOWEVER, I SHOULD PURSUE THIS WITH THE DIRECTOR OF THE BOARD OF FOREIGN TRADE (BOFT) SO AS TO

AVOID MISUNDERSTANDINGS.

COMMENT

11. HU'S EXPLANATION OF TAIWANESE POLICY TOWARDS HONG KONG DURING

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