CONFIDENTIAL
DSR 11C
and advanced civil technology with military applications
38. A significant expansion of civil exports to China
countries.
would have no repercussions for British exports in third
Defence sales could, however, incur negative
reactions, notably in the Soviet Union and perhaps the
and India
United States The Spey deal does not appear to have
harmed either Rolls Royce's or general British exports
in the Soviet Union. The Russians normally hard-headedly
seek the best product for their purpose on the best
But political considerations are not to be
terms.
excluded.
No rules can be laid down in advance except
to say that, in the first instance, the firm must judge
its own commercial advantage. If wider British commercial
interests looked like being involved, however, the
Government would need to intervene.
39. British firms involved in sales of defence
technology to China might also in certain circumstances
incur difficulties with US customers or component
suppliers. This would generally apply only in cases
which were subject to serious difficulties in a COCCM
context. Much would depend on the attitude of the US
Administration. In general, the individual British
firms concerned should be as well placed as anybody to
weigh the balance of their own commercial advantage, but
experience shows that this is not always the case, and
the final decision might have to be taken by the British
Government.
CONFIDENTIAL
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