CONFIDENTIAL

3.

SUPPLY OF BOMBS TO AUSTRALIA

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CONFIDENTIAL

THE PRESIDENT OF THE BOARD OF TRADE said that enquiries had been

received from the Australian Government for the supply to them of

500 lb and 1,000 lb bombs from our surplus stocks; stocks valued at

about £1 million were available. Our interest in good relations with

Australia, both in trade and more generally, pointed strongly to allowing the bombs to be regarded as normal supplies to a traditional

customer. On the other hand Australian involvement in Vietnam and in

particular the stationing there of a squadron of Australian Canberras

meant that the bombs might be used in Vietnam, or replace stocks reduced by operations there. The Ministerial Committee on Strategic Exports

were generally in favour of accepting the order but, in view of the political problems involved, they considered that it should be referred

to the Committee for decision.

In discussion there was general agreement that the bombs should

be supplied. It must be accepted that they would probably be used in

Vietnam. Their sale was likely to become publicly known and to provoke

criticism among Government supporters who were strongly opposed to the

war in Vietnam and might be encouraged to press for more severe restraintz

on the supply of arms to the United States, with damaging consequences for

United States purchases under the F 111 offset agreement. On the other

hand it was possible to draw a distinction between the supply of arms to

Australia and to the United States. The bombs had not been requested

specifically for use in Vietnam and could therefore be regarded as

coming within the terms of the Prime Minister's statement in the House of Commons on 14th July 1966 that we should continue to supply our

traditional supplies of arms to Australia. If we refused to supply

these bombs, it would have no effect on United States bombing policy in

North Vietnam; and Australia would have no difficulty in getting bombs

elsewhere. There was therefore no moral case for not supplying them.

The risk of opposition from sone Government supporters must be accepted.

The Committee

Agreed that the Australian order for the supply of

500 lb and 1,000 lb bombs should be accepted.

Cabinet Office, S.W.1.

6th November 1967

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