TNAG-0741-FCO40-945-Relations-between-China-and-Hong-Kong-1978 — Page 144

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Government to put the Spey engine sale through despite

But the Americans are likely to

objections in COCOM.

draw a distinction between:

(a) Weapons and defence equipment, particularly

of advanced technology and therefore beyond

China's capacity to produce for herself, which

would increase China's offensive and/or long-

range capacity;

(b) Non-strategic, so-called "defensive"

weapons and defence equipment;

(c) Industrial equipment related to defence;

(a) Defence technology and know-how.

The Americans will almost certainly oppose sales falling

unambiguously within (a), both for reasons connected

with China and in the light of President Carter's policy

on the limitation of conventional arms transfers. (Both

Harriers and (because of Taiwan) marine propulsion units

might be seen by the Administration as falling in

category (a); we would dispute this.) On (b) there

may be divided counsels. Some Americans may argue in

favour of arms sales as a means of strengthening China

against the Soviet Union, but at present there is an

influential stream of thought in the Administration

that even so-called "defensive" sales might so offend

the Soviet Union as to affect US-Soviet and East-West

relations (eg SALT, MBFR).

Many would probably object

/also

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