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DSR 11C
begin within an already large defence efforte. This will be accompanied
by development of the economic and scientific infra-
structure necessary for overall defence modernisation
takes place.
28. The Chinese appear to be approaching foreign defence
philosophy and technology in four ways:
(a) the study of foreign defence methods;
(b) the manufacture under licence in China of
foreign defence equipment; they are for example
now preparing
the manufacture of Spey engines
under the 1975 agreement with Rolls Royce;
(c) the purchase of equipment for defence
production; eg specialised machine tools;
(d) the limited purchase of certain defence
equipment either to fill pressing needs or to permit
its technological exploitation.
The foreign equipment and technology in which they have
shown interest is that relating to marine gas turbines,
anti-tank missiles, air-to-air and ship-borne anti-
aircraft missiles, avionics (particularly radar),
communications equipment, low light image intensifiers
and helicopters (including those for naval anti-submarine
warfare). Their interest in Harrier has been less explicit
29.
Because of their present economic constraints,
traditional fears of over-dependence upon foreign suppliers
and the wish to concentrate upon self-production, the
Chinese are unlikely to make more than a minimum of
/weapons
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