Pages 5-6 from FCO 177-103

The document is a confidential letter from RH Smith, Head of Non-Proliferation and Defence Department, to Stuart Nunn regarding the NSG Working Group on a multilateral regime for nuclear-sensitive dual-use goods. Smith thanks Nunn for the account of the meeting held in Annapolis in October and acknowledges the progress made but notes that there is still work to be done before the NSG meeting in March.

Smith mentions that Nunn's discussions with the Americans in Washington were helpful and anticipates further constructive discussions. Smith shares their views on individual points discussed at the SXWP Nuclear sub-Group meeting. They express concerns about the scope of application, noting the challenge of avoiding self-application if China is included and the need for the guidelines to apply to transfers to non-nuclear weapon states (NNWS). They agree with the need for re-export controls but acknowledge the limitations on prior consultation and tracing items. Smith confirms their support for the Netherlands providing a secretariat.

Smith suggests that resolving outstanding questions on the guidelines and the list during Nunn's informal sessions would accelerate the process. They mention the need for further Whitehall consultation and consideration of presentation before the Interlaken meeting in January. Smith expresses interest in an idea presented in Peter Agrell's paragraph 7(iii).

The letter is marked confidential and is also copied to other relevant individuals involved in non-proliferation and defense departments.