CONFIDENTIAL
DSR 11C
Other countries in the region
also
51. The other countries most likely to be sensitive
to defence sales' to China South Korea and Taiwan
depend on the US for their defence, although by 1980
there will be no major American ground forces left in
Korea. Neither will be happy about any British defence
sales. If we can persuade the Americans, political
considerations affecting Taiwan can be largely ignored,
but there might be adverse trade effects
prospective Rolls Royce sales and other defence sales
prospects in South Korea. There are no British defence
sales to Taiwan.
eg on
52. Of other regional powers, India would react with
concern and perhaps even some hostility to the sale of
certain major items of defence equipment, particularly if
these increased China's offensive capability on the
Himalayan frontier. Likely Indian reactions should
therefore be taken into account before approving any
potential contentious sale. But it is in principle
unlikely that the supply to China of conventional military
équipment would significantly damage the prospects for
defence sales to India or affect Indian interest in
improving relations with the West in general, or Britain
in particular. Australia, and to a lesser extent New
Zealand, would be concerned by the defence implications,
and should be consulted.
Human Rights
53. Human rights are a factor in some prospective British
arms sales. No arms are sold to Chile or South Africa.
/în
CONFIDENTIAL
*WWWAN
10 JUN JJJ
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