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DSR 11C
will be given extra weight, and Indian obstructionism at
international meetings on non-proliferation issues will
become still more pronounced and she will have a further
argument to support her continued refusal to accept IAEA
safeguards on some of her nuclear facilities. The sale will
be used by the Soviet Union as a convenient stick with which
to beat us.
7.
On the other hand, the proposed sale raises no issues
of genuine non-proliferation concern. The deal would not
conflict with our formal obligations under the NPT or with
the Nuclear Suppliers Guidelines. China has already
attained a nuclear weapons capability without our help.
None of the equipment or materials to be supplied are
capable of significantly enhancing that capability, even
if it were economically sensible to divert them to military
use. The development of contacts with the Chinese on
nuclear matters will give us an opportunity of encouraging
them to move closer to the international main streams.
if we refuse to supply this power station the French
will certainly step in, so the Chinese will get the
technology anyway.
8.
And
On balance, therefore, it would seem right not to
object to the contract proceeding along the lines currently
envisaged. However, if the US Government eventually
decide to attach to the release of US technology conditions
which it would be impractical for us to fulfil, Ministers
may wish to review the question again.
CONFIDENTIAL