TNAG-0741-FCO40-945-Relations-between-China-and-Hong-Kong-1978 — Page 30

1

་ཐག — - 1 ཡམ*** * ་

'

CONCONEVENTIAL

CONFIDENTIAL

the sale should affect a successful outcome.

General Western Interests

.8.

A summary of general Western interest is included in the

companion paper, DOPO (SE)

para

on Harrier.

United States Attitude

9. A summary of likely US views in relation to Harrier is also

included in DOPO (SE)

para

Differences of emphasis could

Marine

be expected in relation to marine propulsion units, but in general

a similar assessment of American attitudes applies. propulsion units could, however, partly for presentational reasons, be the best starting point for consultation with the Americans on

defence sales to China.

Reactions of Other Countries

I

10. Soviet Union In view of the attitude they have already taken

in respect of Harrier, an adverse reaction could be expected from the Russians. But this might be less strong and retaliation might be

less likely, in relation to Marine propulsion units.

11.

Other Countries The other countries likely to be most

concerned are Japan, South Korea

Our political and

and Taiwan.

trade relations should not, however, be damaged significantly although

trade,

the implications for Taiwan would be particularly important for

American attitudes.

12.

COCOM Again, there would be differences of emphasis but the

same general considerations apply as for Harrier.

DOPO(SE)

refers.

paragraph

Next Moves

13.

Discussions between the Chinese and Rolls Royce are in train. Arrangements for an extensive visit by a Chinese delegation are well advanced, although this has been deferred and revised dates

3

CONFIDENTIAL

Page 30Page 31