Description of meeting between Indira Gandhi and Soviet representatives. Both sides give similarly critical assessments of Pakistan policy on subcontinent, which both describe as destabilizing to the region. Soviets devote special time to the "dangerous character of military-political partnership between the United States and China," and Indira Gandhi expresses concerns over China's "machinations" against India, and notes the increasing influence of China and America on India's neighboring countries. Gandhi says that Indian-Chinese relations have not improved, due partly to China's position on the India-China border issue.

The People's Republic of China maintains that the Taiwan issue was an internal issue of China, and it was the US who created tension by invading and occupying Taiwan.

Despite the concerns about sharing the ALR-69 radar warning receiver with Pakistan for fear of it falling into Chinese hands, CIA officials argue that failure to meet Pakistani demands would lead to a “serious blow to U.S. worldwide nonproliferation efforts.”

With delivery of U.S. F-16 fighter-bombers imminent, Pakistan threatens to refuse delivery unless the U.S. agrees to include the ALR-69 radar warning receiver for the aircraft. CIA analysts have concerns that including this sensitive radar technology in the delivery of the F-16s would enable China, a close military ally of Pakistan, to obtain and study the device.

The U.S. Embassy in Pakistan reports to the State Department on a meeting between Ambassador General Vernon Walters and President Zia. Walters returned to Islamabad to warn Pakistani officials that U.S. aid was in “grave jeopardy” after a link between the Pakistani program and Chinese technology was discovered. A U.S. military aid package, which included F-16 fighter-bombers, was also discussed.