(a)

(e)

VSA

the

The key factor will be American reactions and the effect on the of strong criticism from the Soviet Union, Taiwan and perhaps to a lesser extent, South Korea and Japan.

There would be major problems in COCOM, and an attempt to ride roughshod over the committee in the case of Harrier could gravely damage the organisation and our relations with the United States.

RECOMMENDATIONS

(1) The CDS should be briefed to ask the Chinese to

restate their interest in the Harrier aircraft in rather more detail to British industry.

(2)

(3)

We should first speak to the Americans, not about Harrier aircraft, but about marine gas turbines and other sensitive items which are more immediate. In the light of (1) and (2) above, we should consider again when and how to talk to the Americans about Harrier, bearing in mind that if we try to go too fast before the Administration has itself evolved a position, we risk a rebuff which could eventually

veto the sale.

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