How are chive
CO CONFIDENTIAL
ANTIAL
Page 2 of AUS(GS)46/78 (D/DS6/7/16/43/2) dated 26 Jan 78
patrol craft will be needed, assumes that craft capable of meeting the requirements (set out in the accompanying Annex) will cost between £3M and £4M each (or a total of between £15M and £20M). We would expect more precise indications of cost to emerge from the Craft Study. Secondly, the way in which costs would be shared between the Hong Kong Government and the Ministry of Defence rests on the correspondence culminating in Robert Andrew's letter AUS(GS) 91/76 of 23 February 1976 to you. Thus 75% of the capital costs of the new vessels (including R&D, design work and overseeing, and of any infrastructure required in Hong Kong for their support) would be paid by the Hong Kong Government irrespective of the financial provisions of a successor to the present DCA which might have come into force before all the vessels had been delivered. In addition, of course, you would also continue to pay 75% of the running and support costs of the Squadron during the life of the present DCA.
5. We will continue to inform you of progress, and look forward to explaining our proposals to you in detail in London in the early part of the summer.
6. I am sending a copy of this letter to CBF.
Yours sincerely.
Jolen
C (CONFIDENTIAL TIAL
No comments yet.
Private notes are available after approval.