TNAG-0741-FCO40-945-Relations-between-China-and-Hong-Kong-1978 — Page 27

3.

T)

(g)

h)

clusion d) should be modified to reflect the points above.

Conclusion e) should parallel the revised version in the FCO paper.

:

would

The recommendation would not now be appropriate if the Chinese team was on its way for talks with Rolls Royce.

The paper might therefore, recommend that the CDS should take the opportunity to say that we were glad that the Chinese had sent a team to Rolls Royce, and that we were genuinely interested in establishing whether, in the light of ouri international obligations, we could sell the engines to the Chinese. Two further recommendations might then follow, on the lines set out in Washington Telno 1538, to the effect that the next step would bop for Ministers to decide whether the balance of national advantage lay in favour of a sale, and that if it did, we should tell the Americans as soon as possible, making it clear that we should have regard to our COCOM obligations, but putting the decision firmly.

1

4.

In the time available, I rather doubt whether the MOD will have time to show us another version of their paper before they have to circulate it. May I ask therefore, that anyone who has further point which he feels it is important to feed in at this stage should contact Mr Mehow direct 218-6855.

rect

field

J T Masefield

Par Eastern Department

233 5963

14 April 1978.

K 258