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be asked to say what Mr Healey had in mind.

6. It would also be helpful if the Department of Industry would provide some up-to-date figures for the best estimates of what a Harrier deal involving 200 aircraft might earn British industry, (and similar figures for 50 aircraft.)

7. There are two aspects of our own paper which may call for

some revision in the light of developments since it was drafted:-

a) The Russians took the opportunity of the Anglo-

b)

Soviet official talks in Moscow last week to speak

in firm terms about the possible sale of military equipment to China. (The provisional text of the key exchange has been circulated as a DOPO (SE) document at FCO request.)

The sections on likely American reactions and the next moves need up-dating in the light of the meeting between Mr Mulley and Dr Harold Brown. Not all members of DOPO (SE) will be aware of the details of the exchange. It would probably be helpful if the FCO offered to put forward amendments to the Harrier paper. A draft is

attached.

FAR

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18 AFRIL 1978

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CONFIDENTIAL

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