T

Registri No.

SECURIT

DRAFT

PLANNING PAPER

Type 1 +

ASSIFICATION

From

To:-

Top Secret,

Secret.

Confidential.

Restricted.

Unclassified.

'RIVACY MARKING

Telephone No. Ext.

Department

...............................................................In Confidence

POLICY TOWARDS CHIN A

[Cover Note:

The Foreign and Commonwealth Secretary and the

Defence Secretary agreed that FCO and MOD officials

should jointly prepare a paper on British policy

towards China which would provide a framework for a

proper evaluation of British defence sales to China.

Such a paper would also cover the commercial

opportunities, and discuss how best to exploit them

subject to our other objectives and commitments.

Other interested Departments would be involved at a

later stage.]

INTRODUCTION

1. China is seeking to purchase equipment and technology

in the West to strengthen her economy and military

capability. This presents opportunities, but also poses

some awkward problems. The present paper considers Chinese

aims (Section I, paragraphs 2-8); strategic considerations

(Section II, paragraphs 9-15); the political and politico-

economic considerations (Section III, paragraphs 16-25);

commercial considerations (Section IV, paragraphs 26-33);

and our policy options and recommendations (Section V,

paragraphs 34-40).

/SECTION I

CONFIDENTIAL

Dd 108087 400M S&K 1/77

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