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6. The visit to Jordan was particularly valuable in terms of defence sales. The Jordanians have also been especially helpful in

introducing us as defence suppliers to Iraq and particularly on the

repair of captured Iranian Chieftain tanks. On the latter they

have provided repair facilities in Jordan, but now feel that the

rest of the work would be more sensibly undertaken in Iraq: I shall be in touch with Peter Carrington on this separately.

7.

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The Jordanians have also helped us considerably over the prospect

of aircraft sales to the Middle East. And they will be speaking strongly in favour of the British "family" of aircraft at this month's

meeting of their consortium partners. But there are certainly problems

ahead. The Jordanians stressed the wish of Iraq to buy the Tornado

strike version, though they accepted the need for it to be "sanitised".

They also stressed the need for the P110 air combat aircraft to be in

service with the RAF as a pre-requisite for its purchase by Arab

countries. Considerable emphasis had been laid in the consortium on

French undertakings to acquire for the French Air Force the new Mirage

2000 and 4000. I was able to say that we had already earmarked some

funds for R&D towards the engine (actually an enhanced RB199 also to be used in the Tornado ADV) for the P110. The Jordanians assured

me that this would be very favourably viewed in the consortium.

Far East

8. In Malaysia, the scene was dominated by the Prime Minister's

stated intention to examine himself all contracts with British firms.

I have reported separately the outcome of my discussion with him on

this subject.

9. Despite this, our discussions with the Deputy Defence Minister (the Prime Minister himself holds the Defence portfolio) went well.

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