Page

CONFIDENTIAL

Hkk.oad!. N Thompson

DE ADD 1978

CAK OFFICE

INDEX

Mr Marshall TRED

30.5.

RCC

Action Teken

DEFENCE SALES TO CHINA

1.

(I told i Masefield, whine

the draft was first circulated, that para 21 contained will that used be said about (tong Kary this paper).

0274

I am most grateful to you and to the others concerned for your quick response to my minute of 12 April. I now attach a copy of the DOPO(SE) paper in the form in which it is being circulated by the Cabinet Office. It will now be considered at a meeting of DOPO (SE) on the afternoon of Wednesday 19 April. In the time available I am afraid I was not able to re-check with everyone whether the formulations eventually incorporated in the paper were exactly the ones that Departments/have wished. If anyone wishes to make further comments on the paper as it is, these can be fed in either at the DOPO (SE) meeting or after it when the paper comes to be revised.

2.

31

From my conversations with the MOD, it is likely that the principal point of difference and discussion at DOPO (SE) will focus on the terms of the third recommendation concerning the line which the CDS should take in Peking. Sir Clive Rose is aware of this and is prepared for a discussion and has told me that he would be prepared for the FCO to table a new draft speaking note at Wednesday's meeting but that in the meantime the ball is still in the MOD court: and it is up to Mr Mulley to suggest a new formulation when he reports his conversations with the US Secretary for Defense, Mr Harold Brown. But as time is short, I am attaching to this minute a copy of the latest FCO draft of what the CDS might say.

This has been amended and re-arranged in the light of comments from TRED.

3. It is hoped that the MOD's paper on marine propulsion units will be available late today or first thing on 18 April. As soon as it is available I shall be circulating a draft brief for the FCO representative's use at Wednesday's meeting. In the meantime I hope that all concerned will have seen copies of Peking telno 219 reporting that the Chinese team to visit Rolls Royce is expected here at the end of next week and that the Chinese are giving the impression that they do not expect that the British Government will have any difficulty in approving the export of marine gas turbine engines.

17 April 1978

J.T. Ware felel.

JT Masefield

Far Eastern Department

CONFIDENTIAL

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