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CONFIDENTIAL
ATTACH GED, DER 11CR
BSR
Defence Sales in China
HARRIER : LINE TO BE TAKEN BY THE CDS IN PEKING
1.
The CDS could begin by referring to the history of collaboration between the. British Aerospace industry and the Chinese, making particular mention of the delivery of the last few of the [35] Trident aircraft ordered by the Chinese and of the progress which the Chinese have made in setting up their own production line for Spey engines following the agreement with Rolls Royce signed in 1976.
· 2. This could lead into an enquiry about Chinese interest in other specific items of British equipment of a basically
defensive nature. The CDS could repeat that the Chinese
know that they would be welcome to send missions to
exhibitions of British defence equipment eg the British Army Equipment Exhibition in June, the Farnborough Show in September and the Naval Exhibition next year.
3. He could then explain frankly that, as the Chinese would know, Ministers have told Parliament that any requests from the Chinese Government would have to be looked at in the light of our international obligations and the political and economic circumstances. Possible further individual
sales would best be handled on a case by case basis: we understand that the Chinese had plans to send a team for further discussion on marine gas turbines. When was this likely to take place?
4.
Another area of Chinese interest seemed to be communications equipment for ships (the Marconi ICS3). He was glad to note that a Chinese team might visit Marconi and other firms in May.
5. He could then go on to say that at Chinese request we arranged for the Minister of Foreign Trade, Mr Li Chiang, to see the Harrier aircraft, and we had noted that
Mr Li Chiang had subsequently told the Prime Minister that he had enjoyed the deomonstration and that the Harrier was a very interesting aircraft. For our part we understood the reluctance of the Chinese to make a formal approach
to the British Government for a sale of a particular item
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