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HONG KONG PATROL CRAFT
1.
Current arrangements for funding the Patrol Craft are set
out in an Exchange of letters to DCA 81 which states that running
costs will be shared and recovered in accordance with the DCA
current at the time the costs are incurred. On disposal Hong Kong
Government will be credited with 75% of the then current market
value, or in the event of a sale, 75% of the net proceeds.
2.
Current operating costs of the Patrol Craft are assessed to
be about £40M over the period 1.4.92 to 30.6.97. HKG's
contribution, based on a 65% contribution, would be about £26M.
If the craft remain in theatre until 30.6.97 HKG would receive a
credit based on their value at that time. Estimating net book
value the credit might be around £2M per ship.
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3. If the Hong Kong Patrol Craft were to be transferred to HKG
ownership on 31.3.92 HKG would be required to buy out the MOD's
interest in the craft (25%) which, using assessed book value, is
estimated to be about £4M. MOD would formally relinquish
ownership of the craft leaving HKG to man and run the craft. If it
is thought necessary that the ships fly the white ensign this
could be achieved provided the Captain was RN and the crew
subject to normal naval discipline. To assist the HKG to run the
ships HMG would be willing to provide Loan Service Personnel on a
similar basis as personnel are provided to e.g. the Auxiliary Air
Force. Charges would be raised on the basis of capitation rates
e.g. Lt Cdr about £60K per annum, Petty Officer about £38K per
annum.
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