CONFIDENTIAL
DSR HC
with Western help. All the indications are that the
Chinese are thinking in terms of purchasing limited
quantities of Western weapons and equipment which would
wbility to clifent has it
increase China's deterrent-strength against the perceived
Soviet threat without significantly increasing her offensive
capability.
45. The above discussion leads to the conclusions that:
(a) China's main concern in foreign policy will
remain her preoccupation with the threat of growing
Soviet political and military power. She will
therefore continue to seek co-operation with other
countries actually or potentially opposed to the
Soviet Union, and try to influence and cultivate
friendly relations with neighbouring countries;
we,
(b) trade will be a key factor in the development
of such friendly relations and in increasing China's
standing and influence as a world (rather than as a
regional) power;
(c) increasing China's ability to defend herself
against the Soviet Union is in the Western interest,
even though the sale of certain items of military
technology or equipment could promote China's
offensive capability against her neighbours (but would
not increase the risk to an indefensible Hong Kong).
However, the withholding of all military sales would
in many fields do no more than delay the development
of China's military capability;
(a) on balance, therefore, the strategic arguments
favour some controlled sales of military equipment
and technology to China, though thing will need to considy - end instareth iplics for Auglo-Son. pol· ad come
CONFIDENTIAL
relat
D 107991 400.000 7/76 903 953