TNAG-0741-FCO40-945-Relations-between-China-and-Hong-Kong-1978 — Page 141

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DSR HC

with Western help. All the indications are that the

Chinese are thinking in terms of purchasing limited

quantities of Western weapons and equipment which would

wbility to clifent has it

increase China's deterrent-strength against the perceived

Soviet threat without significantly increasing her offensive

capability.

45. The above discussion leads to the conclusions that:

(a) China's main concern in foreign policy will

remain her preoccupation with the threat of growing

Soviet political and military power. She will

therefore continue to seek co-operation with other

countries actually or potentially opposed to the

Soviet Union, and try to influence and cultivate

friendly relations with neighbouring countries;

we,

(b) trade will be a key factor in the development

of such friendly relations and in increasing China's

standing and influence as a world (rather than as a

regional) power;

(c) increasing China's ability to defend herself

against the Soviet Union is in the Western interest,

even though the sale of certain items of military

technology or equipment could promote China's

offensive capability against her neighbours (but would

not increase the risk to an indefensible Hong Kong).

However, the withholding of all military sales would

in many fields do no more than delay the development

of China's military capability;

(a) on balance, therefore, the strategic arguments

favour some controlled sales of military equipment

and technology to China, though thing will need to considy - end instareth iplics for Auglo-Son. pol· ad come

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