CONFIDENTIAL
2.
D
3. Defence sales to China are not covered in detail in the
draft minute since Ministers have agreed on our policy. But
the draft deals with the wider implications of our relations with the USSR. The Secretary of State may wish to see at the
same time Mr Fergusson's submission of 3 August which offers
a more detailed analysis on the same lines as this draft.
4.
HM Ambassador in Peking has also recommended that China should be upgraded in the FCO priorities list. There is no disagreement with the proposition that China is now more important to the United Kingdom than it was in 1973. The future of the priorities list is at present under discussion and appropriate action will be taken once a decision on this
has been reached.
5. The draft has been cleared with CRD, EESD, Finance Dept,
HKGD, PPD and Planning Staff.
24 August 1978
cc: see attached list
:
CONFIDENTIAL
Lichard Sammel
RC Samuel
Far Eastern Dept