10
慨
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Our Ref. : C1/89 II (S70A-27)
政府物料供應處處長
香港北角油街12號
DIRECTOR OF GOVERNMENT SUPPLIES 12 OIL STREET, NORTH POINT
HONG KONG
19 November 1992
The Hon. Richard Cheney, Secretary of Defense, Defense Department, U.S.A.
Dear Mr. Secretary,
Sikorsky Blackhawk Utility Helicopters
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R & D Recoupment
I am writing in regard to an agreement entered into in March this year between the Hong Kong Government and the United Technologies Corporation, Sikorsky Aircraft Division, U.S.A. for the purchase of two S70A-27 "Blackhawk" utility helicopters for delivery in December this year.
The aircraft will be used exclusively for non-military purposes in support of police missions such as search and rescue, emergency medical evacuation, and SO forth. The purchase price of US$23,827,094 includes sum of US$460,000 (US$230,000.00 per helicopter) in respect of US Government Research and Development recoupment.
a
It is my understanding that the US Government has recently reviewed its policy on such fees in order to improve the competitiveness of US defense contractors in the global marketplace. Accordingly, the Department of Defense has eliminated recoupment fees on the export of defense equipment for non-military use for all such sales executed "on or after October 7, 1992".
In this case, the contract was signed on March 18, 1992, but we have only made an upfront payment of US$16,678,965 to Sikorsky on that date in accordance with the payment schedule. The balance of US$7,148,129 is to be paid upon full acceptance of the two helicopters, expected to be in mid-December this year. We understand that it was Sikorsky's intention that the R & D recoupment would be paid at the completion of the contract to the US Government i.e. after receipt of full payment from us. As this contract clearly straddles the policy change and the payment has yet to be fully effected, it appears us that this is a legitimate transitional case which we respectfully submit merits your special consideration.
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