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Mr Burns
PS/Lord Caithness
TAIWAN: ARMS SALES
Problem
1.
Anders Ran
2/3
28 February 1992
Sir J Coles
Mr Smith, NPDD
кет 08713
RECEIVED IN REC
·6 MAR 1992
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In following our current guidelines on arms-sales to Taiwan, the UK is falling behind some other EC countries in exporting military equipment to Taiwan. The issue has been brought to a head
by BAe SEMA's interest in the Taiwan market. In addition, the basis
for our position on military sales to Taiwan is considered to be out
of date, and does not reflect the true reasoning behind our policy. Sir John Coles suggested, on 13 February, that we revise our policy.
Recommendation
2.
I recommend that we revise our current guidelines and their
justification along the lines shown in Annex A. NPDD and the
the Embassy in Peking are in agreement, and Annex takes account of their
vi ews.
Background and Argument
3.
Our previous guidelines date from 1987. The main difference
between those and the proposed new guidelines, with the exception of
the justification for our policy, is that the new guidelines would
allow the export to third countries of parts which would be used in defence-related equipment, manufactured in a third country, for
export to Taiwan. This relaxation in policy would apply only in
cases where the arrangement with a third country manufacturer was
part of a wider commercial deal and not Taiwan-specific.
/4.
CH2AIF
CONFIDENTIAL