Mr MA Marshall, TREI
CONFIDENTIAL
TAKE ODD). Ansefield in formed
INDE
מי
134 1973
Blin
CHINA:
SALE
OF HARRIER AIRCRAFT
that we have no
Comment. P.A
R 1124
See (32 53
See 32
1. May I please ask for your help in the form of urgent comments on the attached draft paper which is to be taken in DOPO (SE) next week. It would be very helpful if I could have comments in the course of today, from you and those to whom this Minute is copied. If possible, these should be in the form of complete sentences or paragraphs for incorporation in a revised version of the draft. In any case, may I ask you to let me have your comments not later than mid-day on 13 April.
2. The background to this request is as follows:
As you know, officials prepared a paper in 1976 which was con- sidered in DOFO (SE) in July 1976. The Committee concluded that in view of the absence of pressure from either British industry or from the Chinese, it was unnecessary to put the paper to Ministers at the time, but that the issue should be kept under review. In response to this last request in November 1977, TRED kindly circulated to FED and other departments a draft paper reporting to DOPO (SE) the results of a trawl carried out to ask Posts about the likely reactions in the countries neighbouring China to a sale of significant numbers of Harrier aircraft to the Chinese. In the event, this paper was put into abeyance while FCC and MOD officials prepared a planning paper on defence sales to China which Dr Owen and Mr Mulley commissioned late last year. That paper was submitted to the Secretary of State last weekend under cover of Mr Cortazzi's Minute of 7 April. Mr Cortazzi's Minute also referred to a Minute sent by Mr Mulley to Dr Owen recommending that when the CDS is in China, between 27 April and 3 May, he should tell the Chinese that "we are prepared to res- pond positively to any request they might make on Harrier aircraft, Swingfire and Marine Engines."
3. The Secretary of State agreed with Mr Cortazzi's Submission that Mr Mulley's formulation went too far at this stage. Owen replied to Mr Mulley suggesting that officials should try to work out agreed wording which would go as far as possible without pre-judging the issue. He went on to say that he hoped that Ministers could take a paper in DO as soon as possible on Harrier, Swingfire and Marine Gas Turbines.
4.
The Secretary of State referred in his letter to the Prime Minister's request (originally classified Secret and Personal) that the Cabinet Office should arrange for DOP to discuss a paper on the political implications of the sale of Harrier to China now that such a sale seemed to be "a definite possibility in commercial terms." In subsequent correspondence on another subject, the Private Secretary at No 10 said that the Prime
CONFIDENTIAL
/Minister