JAN 4871
CONFIDENTIAL
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FROM:
W Morris
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Far Eastern Department
DATE:
28 February 1992
Sir John Cites.
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TAIWAN: ARMS SALES
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Sir J Coles
CC
Mr Smith, NPDD
FET 08713
EMAR 1992
Problem
1.
In following our current guidelines on arms sales to Taiwan, the UK is falling behind some other EC countries in exporting military equipment to Taiwan. The issue has been brought to a head
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by BAe SEMA's interest in the Taiwan market. In addition, the basis for our position on military sales to Taiwan is considered to be out of date, and does not reflect the true reasoning behind our policy. Sir John Coles suggested, on 13 February, that we revise our policy.
Recommendation
2. I recommend that we revise our current guidelines and their justification along the lines shown in Annex A. NPDD and the Embassy in Peking are in agreement, and Annex takes account of their views.
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Background and Argument
3.
Our previous guidelines date from 1987. The main difference between those and the proposed new guidelines, with the exception of the justification for our policy, is that the new guidelines would allow the export to third countries of parts which would be used in defence-related equipment, manufactured in a third country, for export to Taiwan. This relaxation in policy would apply only in cases where the arrangement with a third country manufacturer was part of a wider commercial deal and not Taiwan-specific.
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