HKC 02015
PS/Mr Goodlad
CONFIDENTIAL
Junke
CM/
FROM: C O Hum
DATE: 18 June 1992
Cc:
Sir J Coles Mr Davies, FED
Mr Ricketts, HKD Mr Donnelly, NPDD
"GREY AREA" ARMS SALES: AIRFIELD/DAMAGE REPAIR
TAIWAN: EQUIPMENT
1. The arguments are very finely balanced. It is distinctly unhelpful that an earlier application for preliminary approval for export of the equipment to Taiwan was refused; that a Minister has confirmed the fact in writing; and that this letter referred directly to the Government's
unwillingness to agree to "the promotion or sale of equipment which would enhance the capabilities of the Taiwanese Armed Forces."
The
2. On the other hand the equipment in question is only just over the borderline. The potential to enhance the capabilities of the Taiwanese Armed Forces is essentially an indirect one (and relates to resistance to attack). equipment is largely civilian in character. The few components which technically speaking are licensable are not overtly military. In short, we would have a defensible case in the unlikely event that the Chinese found out about the deal and chose to take serious issue with it.
3. I therefore agree that on balance it would be right to approve this application. But the company concerned should
certainly be told to avoid publicity. It would also be helpful if the outstanding letter from an MP to the Minister of State for Defence Procurement was given an oral reply, to the effect that we had looked at the application again and had decided it could go ahead. This would avoid the embarrassment of a Ministerial letter which amounted to reversing our position in public.
Cotten
CO Hum
EV2AAL
CONFIDENTIAL
Taidem
2116.
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