CONFIDENTIAL
Defence Sales
7.
Also agreed to
Ministers gave go ahead on 11 June for British firms to
proceed with negotiations in hand with Chinese, including
sale of Harrier and associated equipment.
sale of 6 items of communications, radar and fire control
equipment, where negotiations very advanced. The 6 items
fall under COCOM embargo. COCOM partners will not accept
'no comment' procedure within COCOM. COCOM partners
therefore being notified about the 6 items without seeking
their concurrence. Other sales will be looked at on a
case by case basis.
China/USSR
8. On 3 April 1979 the Chinese informed the Soviet Union
that they would not renew the Treaty of Friendship Alliance
and Mutual Assistance signed in 1950, for an initial period
of 30 years. On 5 May the Chinese sent a Memorandum to the
Soviet Union proposing talks to be held on bilateral
issues without pre-conditions.
On 4 June the Soviet Union
proposed that the talks should be held in July/August in
Moscow between Deputy Foreign Ministers. The Chinese
likely to accept, but the gulf between the two sides is
very wide.
China/Vietnam
9. No progress in negotiations which were held in Hanoi from
18 April to 18 May, apart from agreement on an exchange of
prisoners. The Chinese have declined to discuss Vietnam's
proposals for a demilitarised zone along the border and have
insisted on prior discussion of proposals which in effect
CONFIDENTIAL
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