TNAG-0741-FCO40-945-Relations-between-China-and-Hong-Kong-1978 — Page 129

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weapons purchases abroad. Precedence will be given to

attempts to make limited purchases of defence technology

or to manufacture foreign defence equipment under licence

in China.

30. In the civil field, the UK is pressing the Chinese

to look to British industry to supply their considerable needs of equipment and know-how for expanding and improving

their industries such as steel, non-ferrous metals, coal,

oil, chemicals, textiles and their transport networks,

particularly of civil aircraft (the Chinese have an option on three Concordes) and railways. Already the UK is an

important supplier of aircraft engines, mining machinery,

mechanical handling equipment, metals and synthetic

textiles.

31. There are thus many actual and potential opportunities

for British sales, even though China will not become one of

Britain's leading trade partners, not least because the

United Kingdom's exports from China will not grow very fast, and the Chinese attach importance to their trade with particular countries being kept in rough balance.

far military equipment and defence technology are concerned, there are strategic and political constraints. These together with the commercial considerations involved

are examined in the three sections which follow.

As

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