RESTRICTED
RESTRICTED
FM BTC HONG
KONG
TO PRIORITY F C O TELNO 178
OF 27100OZ MAY 91
INFO PRIORITY DTI, MODUK
HKB 175
REGISTRY
MAY 1991
ж
TOP COPY Q DIST?
065210 MDLIAN 3920
SIC
DTI FOR OT2
MODUK FOR ARMD3C,
6
MY TELNO 129: PATROL BOAT ORDER.
SUMMARY
1.
ORDER WILL GO TO AUSTRALIANS. PRICE IS SAID TO BE THE SINGLE MOST IMPORTANT FACTOR. PROSPECT OF EQUIPMENT ORDERS WORTH ABOUT POUNDS 4 MILLION FOR BRITISH COMPANIES FOR ELECTRONIC AND COMMUNICATIONS EQUIPMENT.
DETAIL
2. MARINE DEPARTMENT HAVE INFORMALLY TOLD US THAT THE AUSTRALIAN COMPANY, ASI, WILL BE AWARDED THE CONTRACT FOR SIX PATROL BOATS. THE AWARD WILL BE GAZETTED EITHER THIS WEEK OR NEXT
WHEN THE CONTRACT HAS BEEN SIGNED.
3.
THE SINGLE MOST SIGNIFICANT FACTOR WAS PROBABLY PRICE. THE
ORIGINAL HKG BUDGET PROVIDED FOR EXPENDITURE OF HKD 196.9 MILLION FOR THE SIX PATROL BOATS. THIS BUDGET WAS INCREASED BY HKD 104 MILLION BY THE FINANCE COMMITTEE LATE ON FRIDAY. TAKING ACCOUNT OF HKG'S SURVEY COSTS (THOUGHT TO BE IN EXCESS OF HKD ONE
MILLION) THIS WOULD INDICATE AN AUSTRALIAN BID PRICE IN THE REGION OF POUNDS 22 MILLION AT CURRENT RATES OF EXCHANGE. WHAT IS NOT CLEAR HOWEVER IS WHETHER THE AUSTRALIANS INCLUDED SPARES AND TRAINING IN THEIR BID. IF THEY DID VOSPERS, WITH WHOM WE HAVE BEEN IN TOUCH TODAY, AGREE THAT THIS WAS WELL BELOW THEIR BID.
4. THE BRITISH CONTENT OF THE AUSTRALIAN BID WILL PROBABLY BE ABOUT POUNDS 4 MILLION, FOR ELECTRONIC AND COMMUNICATIONS EQUIPMENT (RACAL DECCA AND GEC ARE OBVIOUS SOURCES OF SUPPLY). THE AUSTRALIAN BOATS WILL BE FITTED WITH USA ENGINES, THOUGHT TO BE CATERPILLAR ALTHOUGH THIS HAS NOT BEEN CONFIRMED.
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