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DEFENCE SALES HONG KONG

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RESTRICTED COMMERCIAL-IN-CONFIDENCE

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Writ of the Lilley (Di) 19-22/1/91

HKB 175/1

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591

LINE TO TAKE (Patrol Craft)

a.

Pleased to hear that 2 UK companies have tendered for the Hong Kong

Patrol Craft.

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b.

Both firms are acknowledged world-wide as leaders in their type of

boat design and construction and are keen to satisfy the requirements of

the Hong Kong Authorities.

c. We expect both firms to submit competitive proposals for technically

suitable craft and hope that the Hong Kong Government will give favourable

consideration to the British bids.

d. HMG attaches particular importance to this opportunity: it would be a

great pity if Britain did not secure this order especially as the previous

major contract (for helicopters) went to the USA.

BACKGROUND

1. Defence Sales to Hong Kong have been few, principally because the main

requirement for equipment is met though British Army procurement channels.

Nonetheless a few organisations such as the Royal Hong Kong Police (RHKP),

Marine Police (RHKMP) and Auxiliary Air Force (RHKAAF), can make independent

equipment decisions with funds allocated solely by the Hong Kong Government.

However, the procurement of equipment for these organisations is, wherever

possible, carried out by competitive tender, and no favouritism is shown to

British Suppliers.

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