5. I should like to suggest an addition to paragraph 7 of the draft paper.
Four Lines from the foot insert: "In May 1977, however, President Carter announced details of a new United States policy governing all conventional arms transfers to countries other than NATO members, Japan, Australia and New Zealand. Israel would also be treated as a special case. The Americans subsequently proposed confidentially that there should be cooperation between ourselves, the French and the Germans in restraining conventional arms transfers on the lines proposed by President Carter. We have had already several round s of official discussions. The Americans have also had bilateral meetings with the Russians. One of the most important features. of President Carter's policy is a proposed ban on the introduction of advanced technology weapon systems into areas where they are not already present. Other guidelines include limitations on the transfer of sensitive weapons and restraint in coproduction agreements with customer countries. It is highly probable that the Administration would regard the sale of Harrier to China as a firm indication that the UK had no intention of cooperating with the President in his efforts to encourage restraint. Given the idealistic sincerity of President Carter's commitment to the policy, it seems likely that his Administration will attempt to veto the sale. However, Harrier does not fall in the area which we know is likely to be vetoed altogether
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6. I suggest that in paragraph 13 of the DOP paper there should be a reference to the fact that India too is interested in acquiring Harrier.
7. In the light of Mr Prendergast's minute of 10 April to Mr Cortazzi recording the Secretary of State's view that we should move faster, I wonder if it is wise to recommend that we should first speak to the Americans about items other than Harrier. If we are to move faster should we not start talking about Harriers to the Americans soon, depending perhaps on the results of the CDS's visit, I suggest that the conclusion should be that we will consider how to talk to the Americans about Harrier after the CDS gets back. But in view of President Carter's initiative on conventional arms transfers, I think we should not delude ourselves that the administration has no policy. I suggest. deleting "before the Administration has itself evolved a policy", (See also Washington telegram no 1538.)
13 April 1978
cc.
Iv. J.. Cornish Plone
Mr. J.M. Wilson.
Mr. M.J. Llewellyn
M. D.A. Burns.
J. A.M.
Planning Staff
MAD
BESD
ACDD
Goodenough MAED
Ma. Rund. Alsto
M.
5=55)
A.F. Holloway S. A
i
A Munro
Defence Department
.M. A-L.S. Colliman SEAD
M. H. Hims.
Mmm water
SWPD
QUANTRILL H.KING+D;
M. P.J.D. Whitehead
D.
Mar. H-A-H. Cortogzi Mr. DaRa Murring CONFIDENTIAL. M.D. Thoma