OO HONG KONG
GR 270
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CYPHER CAT A
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301655Z
нкев
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KK02011
Mr
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CONFIDENTIAL
DESKBY 310100Z
TO IMMEDIATE BTC HONG KONG TELNO CREDA 152 OF 30 AUG
FOR MARCH FROM NORMAN CRE4
YOUR CREDA 257
FOLLOWING YOUR LETTER OF 16 AUGUST TO PRISTON COPIED TO FARROW, SBP HAD WRITTEN TO HOVERMARINE ABOUT THE DISCUSSIONS WHICH MR LAU HAD WITH THE MAINLAND AUTHORITIES ABOUT A HONG KONG/CANTON HOVERCRAFT SERVICE. SBP TOLD HOVERMARINE THAT YOU WOULD LIKE BACKGROUND AND WOULD LIKE TO CALL ON MR LAU TO HELP MATTERS ALONG.
SBP SOUGHT HOVERMARINE'S ADVICE ON HOW WE SHOULD RESPOND TO YOUR OFFER OF ASSISTAMCE. HOVERMARINE COPIED TEXT OF LETTER TO MR LAU. IN REPLY MR LAU SAID ONLY HELP WOULD BE FOR HOVERMARINE
TO COMPLETE HM5 AND SEND TO HONG KONG FOR YEARS APPROVAL TRIALS. ALSO SAID THAT HE WAS GOING TO SEATTLE TO SEE BOEING JETFOIL AS ALTERNATIVE. HOVERMARINE SAY SURPRISED AT TONE OF MR LAU'S REPLY. THINK REFERENCE TO JETFOIL RED HERRING. HOVERMARINE WOULD LIKE YOU TO CALL ON MR LAU. HM5 IS UNDER DEVELOPMENT WITH ASSISTANCE FROM NRDC. WORK HAS BEEN SUSPENDED AS HOVERMARINE NEEDS SURPLUS FUNDS TO FINANCE INFLUX OF ORDERS FOR HM2, INCLUDING 4 FOR MR LAU, HM5 IS ABOUT HALF FINISHED AND DISCUSSIONS HAVE BEEN EHLD WITH VIEW TO HOVERMARINE MAKING APPLICATION FOR ASSISTANCE UNDER NEW SCHEME. HOVERMARINE CONSIDER HMS WILL HAVE SIMILAR CHARACTERISTICS TO JETFOIL BUT WILL BE CONSIDERABLY CHEAPER.
ZUNG FU COMPANY'S ENQUIRY PROBABLY RELATES TO HONG KONG REQUIREMENT FOR 5 PATROL CRAFT. MOD HAVE HAD PRELIMINARY DISCUSSIONS WITH BUILDERS ABOUT THESE CRAFT AND HOVERMARINE HAV E SUGGESTED MILITARY VERSION OF HM5 FOR WHICH THEY HAVE DESIGNS. MOD HAVE YET TO FORMULATE THE SPECIFICATION FOR THESE CRAFT AND NO ORDERS ARE LIKELY FOR SOME TIME. CONVEMTIONAL PATROL CRAFT WOULD HAVE THE EDGE.
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