RESTRICTED

up to strengthen protection for Taiwanese fishermen against piracy

in the Taiwan strait, and to counter smuggling. It is conceivable that coastguard vessels might become involved in policing the flow of illegal immigrants from the mainland.

Argument

5. In general, we have approved the export of "dual use" equipment destined for non-military users in Taiwan such as the police,

customs and coastguard. In all cases an end-user certificate has

been required stating that the equipment will not be made available

to the Taiwan military; in particularly sensitive cases we have

stipulated that, for instance, no armament should be fitted to

internal security vehicles, and that military-type sensors should

not be fitted to remotely-controlled surveillance aircraft.

Appendix A gives examples of equipment that we have approved for

promotion and supply to the Taiwan coastguard. We have not

previously received applications to export patrol boats for

coastguard use.

6. We would not permit the export of any of this equipment where

the end-user was to be the Taiwan navy Previous attempts by eg

France and Holland to sell warships to Taiwan attracted intense PRC

hostility. These boats, however, are intended for coastal policing

duties by the coastguard, which is not part of the navy. We have

approved the sale of land-based vehicles to the police for internal security purposes (although we have specified that they should not

be armed); and we have approved the sale

have approved the sale of other equipment to the Taiwan coastguard. Patrol boats are not strictly analogous, since

there can be no sharp dividing line between coastal policing and

coastal defence. The PRC is specifically concerned about equipment which would enable Taiwan to defend itself against attack by the

PRC. It is unlikely that they would regard armed coastal patrol

boats as militarily insignificant, even if operated by a civilian agency. Even so, there is a strong case in saying that there is a self-evident need for such equipment, and on both sides of the Taiwan strait, for the stated purpose. Although I do not believe we

should approve direct sales of patrol boats to the Taiwan coastguard

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/we

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