15.
CONFIDENTIAL
DSK TIC
efe: Je
The above discussion leads to the conclusions
(a) that there is no direct British defe: we interest
(including Hong Kong) which would be affected by
defence sales to China;
(b) that defence sales would be much less important
as a factor in increasing China's standing and
influence as a world (rather than as a regional) power
than the sale of civil industrial technology and
equipment;
(c) that the sale of some items of military
technology or equipment could significantly promote
China's offensive capability;
(a) but that the withholding of all military sales
would in many fields do no more than delay the
development of China's military capability at a
in day cost,
time when the Chinese will be much more preoccupied
with their domestic economic affairs than with foreig
policy;
(e) that over the same period the Sino-Soviet
dispute should continue to keep China interested in
making friends rather than enemies among her neighbour
(f) that in any case, US policy will be more
important in determining whether China could present
a credible military threat at least, to Japan, Taiwan
and South Korea;
(g) and that, therefore, there is no overriding
reason of principle against sales of military
equipment and technology to China.
/SECTION TH
CONFIDENTIAL D 107991 400,000 7/76 904 953
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