TNAG-2915-FCO40-4190-International-support-from-European-countries-regarding-the--1993 — Page 15

of only!

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135721

MDTTAN 9892

(5 MILLION).

NEVERTHELESS THEY BELIEVED THAT ONLY THE US WOULD DARE TO STAND UP TO THEM INTERNATIONALLY. CLAES SAID THAT A MAJOR INCIDENT WITH THE UK WOULD MAKE IT DIFFICULT FOR CHINA TO ACHIEVE ITS INTERNATIONAL OBJECTIVES. THE GOVERNOR SAID PEKING SEEMED TO REALISE THIS AND MIGHT NOW TRY ANOTHER TACK.

4. CLAES ASKED WHETHER PEKING WOULD PRESS NORTH KOREA TO BE SENSIBLE ON NUCLEAR MATTERS. THE GOVERNOR SAID HE WAS NOT AN EXPERT IN THIS AREA BUT THOUGHT THAT WAS LIKELY, THOUGH DISCREETLY RATHER THAN PUBLICLY. CHINA DID NOT WISH TO ANTAGONISE THE US UNNECESSARILY ALTHOUGH ITS LAX POLICY ON ARMS SALES (E.G. CHEMICAL

(ie through HK!) WEAPONS, PRECURSORS SOLD TO THE MIDDLE EAST) CAUSED WASHINGTON

CONCERN AND COULD ADVERSELY AFFECT RENEGOTIATION OF MFA IF THE US MEDIA TOOK IT UP. HE AGREED WITH CLAES THAT INCREASED CHINESE SPENDING ON SECONDHAND FSU STOCK WAS PUSHING UP PURCHASES ELSEWHERE IN ASIA, E.G. THE INDONESIAN PURCHASE OF THE OLD GDR NAVY. BUT HE QUESTIONED CLAES'S ASSERTION THAT THE CHINESE WERE GIVING ASSISTANCE TO AN IRANIAN NUCLEAR PROGRAMME: BUT IT WAS, OF COURSE, POSSIBLE THAT THE SPREADING CORRUPTION IN SENIOR MILITARY RANKS WAS LEADING TO SALES OF ARMS AND KNOW-HOW WHICH WERE ILLEGAL EVEN BY CHINA'S RATHER LOOSE STANDARDS.

THE

5. CLAES ASKED ABOUT HONG KONG'S RELATIONS WITH THE EC. GOVERNOR REFERRED TO THE WISH OF BOTH SIDES TO SEE EC REPRESENTATION IN HONG KONG AND HIS HOPE THAT THE LEGAL DIFFICULTIES COULD BE OVERCOME WITHOUT THE NEED TO LEGISLATE, GIVEN PEKING'S VIEW ON 'INTERNATIONALISATION'. NEVERTHELESS, HONG KONG WAS AN INTERNATIONAL PROBLEM AND ITS BEST GUARANTEE FOR THE FUTURE WAS A HIGH DEGREE OF INTERNATIONAL INTEREST. BUT THIS SHOULD NOT, FOR THE PRESENT AT LEAST, BE A MATTER OF PUBLIC PRESSURE BY OTHERS, EVEN THOUGH THREATS TO BRITISH, FRENCH AND BELGIAN TRADE MIGHT AT SOME STAGE NEED TO BE THE SUBJECT OF PRIVATE APPROACHES IN PEKING, POINTING OUT THE HARM THAT SUCH ATTITUDES DID TO FOREIGN PERCEPTIONS OF CHINA'S MOTIVES AND BEHAVIOUR. CANADIAN AND AUSTRALIAN APPROACHES ON SIMILAR LINES HAD BEEN VERY HELPFUL. ASKED WHETHER HONG KONG MIGHT BE IN THE PUBLIC EYE DURING THE BELGIAN PRESIDENCY, THE GOVERNOR SAID THAT IF HE INITIATED LEGISLATION THIS SUMMER THE GOING COULD GET ROUGH LATER THIS YEAR. THERE MIGHT THEN BE A CASE FOR MORE PUBLIC STATEMENTS BUT ANY SUCH

MOVE WOULD HAVE TO BE VERY CAREFULLY CONSIDERED. CLAES SAID THE

'x' BELGIAN PRESIDENCY WOULD BE READY TO HELP IF LONDON ASKED.

6.

CLAES ASKED WHETHER THERE WAS A TAIPEI ANGLE. THE GOVERNOR SAID THAT CHINA'S RECENT POLICY OVER HONG KONG HAD BEEN CRITICISED

2

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