}
CODE 18.77
こ
CONFIDENTIAL
Reference
"HKK 020!!
INDEX
?^ APR:1978
PA
REGISTRY Action Taken
38
012/4
Mr JT Masefield w FED
moto safa
ì
.:.
## I
:
17
CHINA: SALE OF MARINE PROPULSION UNITS
84
D
『:;:
1.
:
With reference to your minute of 14 April, I have spoken to Mr Mehew (MOD) about a possible additional point for inclusion in their paper for DOPO (SE). He suggested that this should be passed to you in case FCO wishes to feed it into the discussion at the joint meeting on Wednesday, 19 April, which will consider the MOD paper.
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2. A strengthening of China's naval potential could have important repercussions in connexion with disputes over various groups of islands in the East and South China
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Seas, which in addition to any strategic importance may have significant quantities of oil in their vicinity.
是
!
i.
Senkaku Islands
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Situated about 150 miles NE of Taiwan these islands are claimed by Japan, the PRC and the Nationalists in Taiwan. The dispute seemed to have been effectively shelved since 1972 but flared up again in recent weeks. Following a Japanese Government statement asserting ownership of the group, PRC fishing boats subse- quently appeared in the area displaying signs and placards reaffirming their right to fish in Chinese territorial waters. In response to Japanese protests, the MFA in Peking reiterated that the islands belonged to China but promised to check about the presence of Chinese, fishing boats in the area. Later the boats moved away from the islands and in informal contacts with the Japanese the PRC Government indicated that the Senkaku incident had been "totally an accidental affair." The Japanese Government has stated that it considers this matter should be discussed by the two Governments when the results of the PRC investigation of the incident are available.
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ii. Spratlys
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3.
Situated about 250 miles E of Vietnam, 200 miles W of the Philippines, 1,100 miles SW of Taiwan and 800 miles SE of the PRC (Hainan Island). Seven of the islands are occupied by the Philippines, three by the Vietnamese and one by the Chinese Nationalists. Peking claims the whole group but as yet has made no attempt to reinforce this by sending troops. The Philippines were reported to have been strengthening their own military presence in the area at the beginning of 1978.
iii. Paracels
Situated 500 miles N of the Spratlys, 225 miles E of Vietnam and 165 miles SE of PRC (Hainan). Claimed by the PRC, the Nationalists in Taiwan and by Vietnam, these islands are all under 'the complete control of the PRC who in January 1974 dislodged an occupation force sent by the former South Vietnamese Government.
The PRC has reasserted its claim to all these islands at intervals whose frequency has depended on the current state of its relations with the rival claimants concerned. Of the three, the Senkaku Islands are the most live issue at the moment
}
CONFIDENTIAL
/but
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