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5. AT A LATER MEETING WITH YANG, THE LATTER ALSO ALLUDED TO THESE PROBLEMS AND WENT ON TO RAISE THE POSSIBLE DEVELOPMENT OF BOTH FRAME AND ENGINE FOR A TRAINER VERSION OF THE IDF WHICH MIGHT BE MERGED WITH THE HAWK PROGRAMME. JOINTLY, WE COULD DEVELOP AND MARKET SUCH AN AIRCRAFT THROUGHOUT THE ASIA/PACIFIC REGION.

SIR R ROBINS EXPRESSED CAUTIOUS INTEREST

BUT POINTED OUT THE DIFFICULTIES OVER EXPORT LICENSING AND THE FACT THAT ROLLS ROYCE HAVE MAJOR INTERESTS IN MAINLAND CHINA. YANG AND ROBINS AGREED TO KEEP IN TOUCH AND TO BRING BAE INTO THE PICTURE.

6.

IN PARALLEL, I RECEIVED AN APPROACH FROM THE PRESIDENT'S OFFICE OF A ''STRICTLY PRIVATE NATURE'' TO SAY THAT THE PRESIDENT, WHILST REMAINING COMMITTED TO THE RJ PROJECT, HAD BEEN RECEIVING WORRYING NOISES FROM BANKERS ABOUT THE FINANCIAL STATE OF BAE AND THE FINANCIAL VIABILITY OF AVRO. COULD I PLEASE PROVIDE AS QUICKLY AS POSSIBLE THE LATEST ANNUAL REPORT AND

Grouse abre ATEMENT OF ACCOUNTS OF BAE, A LIST OF RECENT SALES SUCCESSES Clove Cha STATEMENT ON THE AVRO PARTNERSHIP.

GENERALLY AND, SPECIFICALLY, OF THE 146, AND A FINANCIAL

(I HAVE PASSED THIS REQUEST

TO BAE THROUGH THE CHAIRMAN'S OFFICE.)

7. AT THE SAME TIME, I WAS TOLD THAT WHILST THERE WAS NO DOUBT THAT THESE FINANCIAL WORRIES WOULD BE CLEARED UP, THERE WAS, IN FACT, A STRONG DESIRE ON THE PART OF THE TAIWANESE GOVERNMENT TO GET CLOSER TO THE UK IN HIGH TECHNOLOGY. THEY WERE PARTICULARLY INTERESTED IN THE AEROSPACE AND NAVAL EQUIPMENT SECTORS AND TO hrun THIS END WOULD LIKE TO APPOINT AN APPROPRIATE OFFICER TO THE TAIPEI REPRESENTATIVE OFFICE (TRO) IN LONDON. HE WOULD BE A

OF SERVING OFFICER FROM ONE OF THE ARMED SERVICES BUT WOULD NOT, COURSE, BEAR ANY MILITARY RANK. THIS WOULD SIMPLY BE CATCHING UP WITH THE ARRANGEMENTS WHICH THEY ALREADY HAD IN FRANCE, GERMANY, THE NETHERLANDS AND, OF COURSE, THE UNITED STATES. HOWEVER, THEY COULD WERE BUMPING UP AGAINST THE STAFF QUOTA ON THE TRO OF SIX I INTERVENE? THEY ALSO HOPED THAT WE WOULD HAVE NO DIFFICULTY

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WITH PURELY PRIVATE VISITS TO THE UK OF THEIR AIRFORCE AND NAVY fevuld. sece was CHIEFS OF STAFF WHO WANTED TO VISIT BRITISH COMPANIES. THE HEAD know OF THE ARMY HAD APPARENTLY ALREADY GONE ON SUCH A PRIVATE VISIT AND THIS HAD CAUSED NO TROUBLE. NO DATES WERE GIVEN BUT THEY WOULD LIKE A GREEN LIGHT.

COMMENT

8. I SUPPOSE IT WAS INEVITABLE THAT THE TAIWANESE WOULD PLAY THE

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