By Fax by criginal
(Replaced
ай
布政司署 香港下亞厘畢道
2574
本署檔號 Our Ref:
來函檔號 Your Ref:
Mr Mike Stone
GOVERNMENT SECRETARIAT
LOWER ALBERT ROAD
HONG KONG
HKA 062/2
M. FuRgress Pls pursue.
31 July 1992
Hong Kong Department FCO
Dear
Mike
m
518.
32
This related
to the bus off license
Cin
export
Purchase of Two S70A (Blackhawk) Helicopters
Recovery of US Government Research and Development Recoupment
as
You may be aware that we have agreed to purchase two S70A (Blackhawk) helicopters for the RHKAAF from United Technologies Corporation, Sikorsky Aircraft Division. The negotiated price of the two basic helicopters (US$18,027,784) includes a total of US$460,000
US Government Research and Development recoupment. A recent Presidential Initiative has proposed that this recoupment be no longer charged for defence equipment exported for non-military use (see attached extract from Flight Magazine, dated 1-7 July 1992).
We are obviously anxious that we can benefit from this initiative and obtain а refund from Sikorsky before the final instalment is due in December 1992. In this connection Sikorsky have advised that it may be quicker to obtain a refund of these recoupment fees under the US/NATO agreement, under which we understand these fees are refunded by the US Government to purchasers from NATO Countries. My purpose in writing is to see whether you can investigate this matter possibly through the British Embassy in Washington and to request you to keep us informed on progress on the Presidential Initiative. Hong Kong Department was previously instrumental in the mid-80s in obtaining a reversal of a previous US decision to deny us access to special infra-red equipment. We feel the same channels could be used on this occasion as you can enter the military net more easily than our counterparts in the Hong Kong Economic and Trade Office in Washington.
on
We are
also anxious to obtain a refund on the recoupment for the spare General Electric engine which we have ordered direct from GE.
The recoupment is US$25,450. We believe the S70A recoupment includes the recoupment on the four GE engines the helicopters but would be grateful if you would check that this is so.
For your reference, I will send by bag a copy of the FCai paper on this subject and of the contract HKG has with United Technologies on the sale of the two $70A helicopters.