TNAG-0850-FCO40-1060-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 76

CONFIDENTIAL

OF A PANGE OF FRITISH EQUIPMENT.

AFTER THE MANY VISITS PY

CHINESE DELEGATIONS OVER THE LAST 2 YEAPS, THE CHINESE WERE WELL

AWARE OF BRITISH TECHNOLOGY, AND IT WOULD NOT BE DIFFICULT TO

PUT FORWARD A PURCHASING LIST. PUT THE MAIN BUYING WOULD COME

AT THE END OF THE CURRENT 3-YEAR PERIOD OF FEADJUSTMENT OF THE

CHINESE ECONOMY,

8. ON HARRIERS, KF REPEATED THAT THE CHINESE INTENDED TO PUY,

BUT PRICE WAS A PROBLEM. VICE PREMIER DENG PAD ASKED MP HEATH

RECENTLY TO HELP TO PERSUADE THE BRITISH GOVERNMENT TO REDUCE THE

PRICE. BUT THE CHINESE PRINCIPAL INTENTION WAS TO BUY TORNADO, TO COUNTER RUSSIAN MIGS 25 AND 27, AND THEY HOPED THE FRITISH

GOVERNMENT COULD ACCELERATE THIS PROCESS. CORTAZZI REPLIED

THAT THE HARRIER PRICE WAS A COMMERCIAL ISSUE, FOR NEGOTIATION

BETWEEN THE CHINESE AND BRITISH AEROSPACE. THE BRITISH

GOVERNMENT WOULD PE UNLIKELY TO WANT TO INTERFERE IN THE

COMMERCIAL PROCESS. TORNADO WAS NOT YET IN SERVICE, AND WAS A

JOINT PROJECT INVOLVING THE GERMANS AND ITALIANS WHOSE APPROVAL

WOULD BE FEQUIRED FOR EXPORT. HE DID NOT PERSONALLY THINK

A DEAL ON TORNADO WAS REALLY PRACTICAL BUT WE WOULD BRING THE

CHINESE INTEREST TO THE PRIME MINISTER'S INTENTION.

CARRINGTON

DEPT DIST.

FED

· PCD

JNV FRO

UND

NEWS D

CRD

WED

MAED

EESD

SEAD

TRED

EID

COPIES TO:

M ALLEN

CRE 4 DOT

1

M TECMPSON 11C DIV

DOI

ACDD

RHOD D

OADS

DEED CLAIMS D

AasD POST RESD

24

CONFIDENTIAL