Canberra, 16 May 1966
Confidential
Australian Representation in Taiwan
The opening of an Australian Embassy in Taiwan would not be a change of substance in our attitude towards Nationalist China (though some might interpret it as such). Australia has continued to maintain diplomatic relations with the Chinese Nationalist Government, which for over twenty years has had an embassy in Canberra.
2. Australia had an embassy in Chungking and then Nanking until 1949. If the Australian Government established a diplomatic mission on Taiwan, it would be the reopening of an embassy and not the establishment of a new one. Consequently, the Queen’s concurrence would not be required.
3. Arguments in Favour of Reopening
(a) It is illogical for Australia, which has publicly demonstrated its support for the position of the Nationalist Government in many ways, especially in the United Nations, to withhold representation in Taipeh. Countries in the Pacific area which do not recognize Peking and have embassies in Taipeh include Japan, the Republic of Korea, the Philippines, VietNam, and Thailand.
(b) An embassy in Taipeh would be a source of information on conditions in Taiwan. This would be valuable in view of our emphasis on the need to consider the wishes of the Formosan people.
(c) Information available in Taiwan about the mainland of China would be more accessible to us. But the amount of such information which would be available in Taiwan can be exaggerated.
(d) The establishment of an embassy would be a gesture of support for the Nationalist Government. As such it might contribute to bolstering their determination to retain their independent position.
4. Arguments Against Reopening
(a) Since Australia has been without an embassy to the Republic of China since 1949, it might seem odd and untimely to reopen it at this time. Internationally, some Afro-Asian countries and others might regard it as evidence of unreality in Australian Government thinking. Domestically, the same criticism might be heard.
(b) The opening of an embassy in Taiwan might cause Peking to re-examine its trading relations with Australia. However any change, on this ground, is considered unlikely, because Peking’s decisions on trading are based on a hard-headed examination of the practical advantages for Peking (in political terms, of course, as well as economic).
5. If a decision is made to reopen the embassy in Taiwan, careful attention needs to be given to the terms of a press release in order to meet possible objections to the move. Because of the susceptibilities of the Nationalists, care has to be taken not to imply any reservation on our part to the Nationalists’ rights on the mainland; consequently, in public explanation one cannot point out that our action would not be inconsistent with a move towards ‘two Chinas’.
[ matter omitted ]1
[NAA: A1838, 1500/2/6211]
1 Matter omitted includes an estimate of costs: it predicted an annual expenditure on the mission of A$139,200 and expenditure of A$26,600 in the initial year.