(SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83B00140R000100020005-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 20, 2016
• Document Release Date: September 21, 2007
• Sequence Number: 5
• Publication Date: November 16, 1981
• Content Type: MEMO

Approved For Release 2007/09/21: CIA-RDP83BOO14OR000100020005-8
Ilk, 0 0
THE DIRECTOR OF CENTRAL INTELLIGENCE
National Intelligence Council
NOTE FOR THE DIRECTOR
16 November 1981
You may have noticed the article about Secretary Haig on the
front page of Sunday's New York Times. The Secretary characterized
American military sales-to TTaiwan as "a very worrisome specter" in
relations with China and warned that "if the US supplies the Nationalists
with advanced fighter planes or other modern equipment this could lead
to a deterioration of relations" (with Beijing).
cc: C/NIC
DD/NFAC
C/DDO/EA
_.._-STAT 1
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 Approved For Release 2007/09/21: CIA-RDP83BOO14OR000100020005-8
'NEW YORK S U DAY, NOVEMBER 15, 1981-
. ... ._.,.. . ...... ,... ~. -
HAIG SEES TROUBLE
IN TIES WITH CHINA'
OVER TAIWAN ARMS
Declares, the U.S.- Faces `Very
Worrisome Specter' Over
Issue of Plane Sales
WASHINGTON Nov. 14 - Secretary
of State Alexander. M. Haig Jr. said
today that relations- with the -Chinese
Communists faced "a very worrisome
specter" over the question of American
military' sales to Taiwan..
In a candid statement about the diffi-
cultles the United" States faces in its
relations.with, the Chinese Nationalists
in Taiwan and the Communists in Pe-
king, Mr. Haig told an audience in Palm
.Beach, Fla.. , -
"In the period ahead it is going to be
essential to both Peking and the United
States to handle this particular question
with great sensitivity and care.
Warning From the Communists
The Communists have warned that, if
the United States supplies the National-
Ists with advanced fighter planes or
other modern equipment, this could lead
to a deterioration of relations.
As a sign of disquiet, Peking has de-
layed sending a military mission here to
discuss possible arms purchases of its
own. According to American officials,.
the Chinese Communists have said that
they will not do so until the United States
makes known what it will do about sup..
plying military equipment to the Na-
tionalists_.
Mr. Haig took part in a question-and-
answer period before The Round Table,
a Palm Beach organization, that was
broadcast to reporters here over a-
closed circuit at the State Department.
Peking's Unification Bid Praised
He seemed to acknowledge Peking's
complaint that, by continuing to supply
arms' to the Nationalists.: the United
-States was undermine g efforts at reuni-
ficatlon.. " _ -
He said a nine-Mint proposal by the-
Chinese Communists. on - Sept:. 30 for
reunification was "rather remarkable."
"They call. for-pea'eful integration,
they recognize federalism in Taipei and
their ability to maintain their own politlcal, economic and security frame-
work," he said. "So these, were not
meaningless proposals."
American officials said that, in recent
conversations here, Foreign Minister
Huang Hua of Communist China told
Mr. Haig that Taiwan was the key issue
between Peking and Washington. ...
According to the Americans, Mr.
Huang said the Nationalists could con-
tinue to receive arms at the present
level of sophistication already present
in Taiwan, but that any increase would
lead to a setback in relations.
Moreover, the- Chinese Communists
,.Cootlaoed on Paige 7, Coluuam 1
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Hqig Sees Mafor.'Troubles, ~.
Continued From Page 1
want it. commitment that military sup=
plies to Taiwan will continue only for a
fixed ',period, about five years, and
should diminish in quantity yearly.
Such a demand Is contrary to the Tai-
wan Rotations Act, enacted by Congress
after President Carter extended formal
recognition to the Communists. The act
obliges the United States to supply Tai-
wan with military equipment to meet its
legitimate defensive needs and imposes
no time limit. , - ` ?
The United States is now discussing
the rationalists' request to upgrade
their tighter planes. Taiwan has Ameri-
can F-5E fighters and has expressed in-
terest either In an F-16,.a less advanced
model known as the F-16/79, dr In an im=
proved F-5, known as the IF-5G:
Either plane Is believed to. carry the
possibility of a strong reaction from Pe?
king. Some officials advocate. an' im-
provement In the F-5E, without the need
of going to the next generation.: ?
Mr. Haig said in testimony before the
Rouse Foreign Affairs Committee on
Thursday that no decision, even In prin-
ciple, had been taken.
"It Is an extremely sensitive question
in Peking," he said in that testimony.
THE"NEW YOJUC. TIMES, SUNDAY{ NOVEMBER .IS, 1981 .
"and we have to proceed with utmost re.
spect for that sensitivity. 't
On other Issues today, . Mr.; Haig
seemed to support the idea of an em-
bargo on Libyan oil when he was asked
whether the United States might Impose
a ban on Imports in ,retaliation for
Libya's' actions beyond its borders and
Its reported support for terrorism. ,
He said a study was under way and
the United States had. to be careful that
"we don't shoot ourselves in the foot" by
an embargo as, he said, had been the
case when the Carter Administration
limited grain sales to the Soviet Union In
retaliation for the Russians' military In-
tervention in Afghanistan.' The, curbs
were rescinded this year by the Reagan
Administration.,
But Mr. Haig said. "I do not think that
applies in this particillar case on oil."
He added that; with Libya appearing
to withdraw Its troops from Chad; "we
are in a very dynamic situation," sug
gesting that the. United States did not
want to introduce some new element at
this time. c ..
He noted that Exxon and Mobil had
both announced that they were Stopping
oil activities In Libya, and that Ameri-
can citizens had previously been urged
to leave Libya.
Mr.. Haig attacked Cuba' and the
Soviet Union for their support of the in-
surgents In El: Salyador. He said the
United States. would have extend more
aid to the Sal' adoran Government..
Approved For Release 2007/09/21: CIA-RDP83BOO14OR000100020005-8