This is a document containing talking points for Secretary of State Alexander Haig's meeting with Deng Xiaoping. Topics addressed in the document include: Chinese exportation of uranium and heavy water to South Africa and Argentina; the intention to suspend the prohibition of arm sales to China; greater nuclear and security cooperation; the increase in Chinese arm sales to countries dependent on the Soviet Union; and the desire to open a new consulate in Shenyang.

Memo reports that during the period the Carter administration was putting pressure on South Africa to avoid the nuclear weapons route, but the analysts suggested that even if the South Africans signed the NPT and accepted IEAE safeguards they would continue to pursue a “covert program.”

In a statement Horwood said that South Africa's nuclear program was for peaceful purposes, but that if it choose to, the country would make the decision to develop weapons "according to its own needs and it alone would make the decision."

South African Minister of Foreign Affairs "Pik" Botha and President Reagan meet in Washington, DC. South African Ambassador Sole, the note taker, interprets Reagan's friendly opening comments as "the inference clearly being that he had no illusions about democratic rule in Africa." They discuss the situation in Namibia and Angola, and their shared opposition to Soviet and communist influence in the region. Botha also asks Reagan to help South Africa's souring relations with France regarding nuclear cooperation. Botha states that "South Africa was not preparing or intending to explode a nuclear device, but[...] could not afford publicly to surrender this option."

South African Ministry of Foreign Affairs informs its missions in Washington, Paris, London, Bonn about an announcement by F.W. De Klerk, Minister of Mineral and Energy Affairs, that under terms agree with the United States and the IAEA, SAFARI I will be operated on locally manufactured fuel.

South African Ambassador Donald Sole reports on the possible effect of Reagan non-proliferation policy on South African/US nuclear relations.

Alan Berman writes to US Office of Science and Technology Policy senior advisor John Marcum on hydroacoustic evidence on the Vela incident. Based on sounds recorded, it appeared that a large explosion occurred south of Ascension Island.

Forwarded to Ralph Earle, Director of US Arms Control and Disarmament Agency. The Interagency Intelligence Memorandum on the 22 September 1979 explosion, or Vela Incident, concludes that it was a nuclear explosion.