CONFIDENTIAL
advanced Western military equipment and, especially,
technology in a number of key sectors.
DSR 11C
['mas. of
mrcraft.
6.
China is particularly interested at present in two sensitive items of defence equipment from the UK, Harriers
and Spey and other marine turbines. The Chinese have so far
not given any detailed information on how many of either
they want, no doubt with a view to encouraging British offer
On optimistic assumptions, the deals could amount to as much
as £500m and include....., but the actual figure could be
considerably less. 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 designing her own. Even now, there will be
as much interest in technology transfer as in large purchase and preference will be given to buying importent 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 it for their needs in steel, non-ferrous metals,
chemicals and production plants and technologies; they
already respect British mining equipment and civil aircraft
النساء
(though there is no immediate requirement for the latter)
and recently have been studying British offshore oil and
/railway
CONFIDENTI AL
D 107991 400,000 7/76 904 953
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