From: J. Dromgoole

AUS(GS)

COMPETINGATIAL

\DIE

109

광장

AUS(GS) 161/78

(D/DS6/16/43/2)

MINISTRY OF DEFENCE

Main Building, Whitehall, London SWIA 2HB Telephone (Direct Dialling) o1-218-6476

(Switchboard) o1-218 9000

Аккоса

9 3978

TAY

FA

Action Taken

No

9 May 1978

L.M. Davies, Esq.,

Secretary for Security Government Secretariat Lower Albert Road

Hong Kong, BFPO 1

Dear Bin

вий

REPLACEMENT OF PATROL CRAFT (83,

Thank you for your letter SCR 6/57 dated 13 March;

I am sorry it has taken some time to let you have a reply.

2.

3.

You make three comments on the NST:

a) The Threat. Paragraph 8 of the NST is almost

identical with the version provided by CBF Hong Kong in his letter HK 66060/3 Jt Sec dated 15 October 1977, which, we understood, had been discussed and agreed with the Hong Kong Government. However, I believe we both agree that there is a variety of incidents in or adjacent to Hong Kong waters which could lead to a confrontation with Chinese vessels.

b) Speed. The reason for setting a lower limit of

15 Kts for the study is in order to include vessels with the same top speed as the present patrol craft; and, by widening the study bracket, to provide a more informative comparison of the "cost of speed"

c) Local Construction. The possibility of local

construction has not been overlooked, and is one of the items which we will need to discuss with you. This particular issue is one of those that will need to be discussed at Stage 5 in the progÝMING set out in the Annex to this letter.

You asked whether we could be more precise about what might be described as the compilation of the costs of procurin the replacement craft, and also the likely cost of the individual elements (R & D, design, overseeing etc). These costs are very much dependent upon the type of design (e.g. 'off-thepeg', or e new design and, if the latter, the extent of sophistication and novelty) and we cannot offer anything of real substance quite yet.

Ć F

CONFIDENTIAL TAL

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