TNAG-0741-FCO40-945-Relations-between-China-and-Hong-Kong-1978 — Page 44

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

to a deal with the Chinese. This could have a harmful

eff on our trade prospects in the rapidly developing South Korean market, but again, it is unlikely to be lasting and might even lead to increased British Defence

sales to the ROK.

Japan

12. The Japanese might be concerned about the possible reparations

in view of effects to their extensive investments in Taiwan and South Korea, both of which are strategically important to Japan. If we nonetheless went ahead, the Japanese would probably seek to take advantage of this further stretching of the rules of COCOM to make their own lucrative sales of advanced technology to the Chinese.

India

13. The Indians would express concern about the sale,

but our bilateral relations would probably not suffer

much damage in the longer term.

Other South East Asian Countries

14.

publicly voiced

There might be some published/disquiet, but it is unlikely that we should suffer significant retalliation.

Australia and New Zealand

15. The attitudes of both Governments would be significantly influenced by US reactions.

Hong Kong

16.

Since Hong Kong cannot be defended against an attack from the mainland, the sale of Harrier would not increase

the military threat to Hong Kong.

COCOM

17. COCOM was set up to control the sale of equipment and technology which might be of significant benefit to

the USSR and her Warsaw Pact Allies and to China and

North Korea in the Far East. Regularly reviewed lists of embargoed items are agreed by member States. At the end of last year, agreement was reached on amendments

KEINEEN

BEWEER (put forward originally by the UK) which would

/enable

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