CONFIDENTIAL
DSR 11C
jenerate
figure could be considerably less, but at £500mover a
five year contract period the deals could operate up
to 16,000 additional jobs in the aerospace and allied
industries in the UK. Multiplied effects would add to
this. While in the next few years China may be ready to
place orders for large quantities of modern equipment,
in the longer run she will want to produce her own by
buying the technology and know-how, copying foreign
equipment or using Chinese designs. Even now, there
will be as much interest in technology transfer as in
large purchases, and preference will be given to buying
components rather than complete systems (eg marine
turbines rather than ships). This should give particular
opportunities for the sale of British aero-engines (and
their naval derivatives) and aircraft equipment.
Chinese interest has also been expressed in a British
naval communications system. The Chinese are likely to
wish to buy anti-aircraft and anti-tank weapons as well.
7.
In the civil field the UK is pressing the Chinese
to look to British industries for their needs in steel,
Lind
non-ferrous metals, chemicals, both for production
plants and technologies; they already respect British mining equipment and civil aircraft (though there is no immediate new requirement for the latter) and recently have been studying British offshore oil and
railway technologies. At a later stage China may be in
the market for nuclear power reactors.
The Chinese are
/also
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