CONFIDENTIAL
HIKC 012/4
RECEIVED IN REGISTRY
6
134631
MDHIAN 8436
CONFIDENTIAL
FM NEW DELHI
TO IMMEDIATE FCO
TELNO 163
OF 040825Z FEBRUARY 93
1993
DESK OFFICER INDEX
PA
REGISTRY
Action Taken
COP COPY FOT?
AND TO ROUTINE PEKING, BONN, ROME, ISLAMABAD, HONG KONG
AND TO ROUTINE BTC HONG KONG
الامام
ROLLS ROYCE: RB199 ENGINES FOR CHINESE AIRCRAFT: FCO TELNO 37 TO PEKING
FOR FED
SUMMARY
1.
INDIA-RELATED POLITICAL FACTORS NEED NOT INTERFERE WITH CONSIDERATION OF THIS APPLICATION ON ITS MERITS. BUT TIMING IS IMPORTANT IN RELATION TO THE HAWK DEAL HERE (INCLUDING FOR ROLLS ROYCE THEMSELVES).
DETAIL
I DO NOT WANT TO MAKE A CASE FROM HERE ON POLITICAL GROUNDS AGAINST THIS APPLICATION. ALTHOUGH THE INDIANS HAVE IN THE PAST SHARED WITH US THEIR CONCERNS ABOUT CHINESE WEAPONS SUPPLIES TO PAKISTAN (EG DURING THE VISIT HERE BY SIR J COLĖS LAST NOVEMBER) THEY ARE IN PRINCIPLE OPPOSED TO RESTRICTIONS ON SENSITIVE SALES OR TECHNOLOGY TRANSFERS, AND IN PRACTICE RECOGNISE THAT SUPPLIERS CANNOT BE EXPECTED TO PLAY FAVOURITES. THEY TOO ARE LIKELY TO CONCLUDE THAT THIS PROPOSED DEAL WILL NT AFFECT THEIR AIR POWER ADVANTAGE IN THE REGION CAND IF THEY WERE EVENTUALLY TO APPEAR IN DOUBT ABOUT THIS I HOPE WE WOULD BE ABLE TO REASSURE THEM).
3.
I DO, HOWEVER, SOUND A NOTE OF CAUTION ABOUT THE TIMING OF ANY DISCUSSION OF THIS DEAL IN RELATION TO OUR COMMERCIAL INTERESTS IN CLINCHING THE HAWK SALE HERE, WHERE NEGOTIATIONS ARE NOW AT A CRITICAL PHASE. ROLLS ROYCE SHOULD BE WELL AWARE OF THE SENSITIVITIES AND FULLY SHARE AN INTEREST IN ENSURING THAT ONE DEAL SHOULD NOT JEOPARDISE ANOTHER. BUT IT IS WORTH CHECKING THAT THE VARIOUS INDIVIDUALS INVOLVED BOTH IN DESO AND ROLLS ROYCE DO NOT WORK AT CROSS PURPOSES.
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