DSR 1C
CONFIDENTIAL
41. The more difficult question is whether, and if so
how far, the West should be less restrictive about the
sale of military equipment or technology (or civil
technology with, military implications) to China than to
the Soviet Union. In favour of a less restrictive policy
it can be argued that an increase in the military power
of China would be helpful to the West since it would lead
to an increase in the Soviet defence effort directed
against China. The resources needed for this increase
would, judging from recent years, probably be at the expense of Soviet consumer spending or civil investment and would not diminish the strength of Soviet forces in
Eastern Europe or slow down their rate of build-up. certainly, however, the relative importance of China in Soviet defence decision-making would increase, to the
benefit of the West. In less abstract terms, military
pressure on the Soviet Union would increase, and more Soviet forces would be tied down in Asia. A stronger China
would be a more effective balance to Soviet attempts to
expand their influence in the world.
Almost
From the British
point of view, increased military sales to China would
benefit British industry and employment. The consequent improvement in Anglo-Chinese political relations would
also be helpful over Hong Kong.
42. The main arguments against a more relaxed British
attitude to arms sales to China are
(a) that our allies would object;
(b) that it would provoke an unfavourable reaction
from the Soviet Union;
/(c)
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