which the craft will be designed and built. Before it is consi- dered by officials of the Hong Kong Government the advice of Honourable Members is sought whether the MOD (Navy) con- clusion, that the replacement of the present 5 "Ton" Class patrol vessels should be by way of a design and build tender system for 5 vessels, is acceptable in principle.
The Procurement Programme
12
If Honourable Members advise that, subject to the acceptance of the financial implications by the Finance Committee of the Legislative Council, MOD (Navy) should proceed by way of a design and build tender the likely timetable will be as follows:
NSR approved.
Tender documents ready.
(a)
January 1979
(b)
September 1979
(c)
November 1979
S
Invite tenders.
(d)
February 1980
(e)
May 1980
(f)
August 1982
(g)
December 1983
-
Receive tender replies.
Place order(s).
Accept first ship.
All acceptances complete.
Although the 1976 refit programme for the 5 existing vessels was intended to extend their lives only until 1982, it is currently assessed that they will remain serviceable until the new vessels are available.
Public Relations Aspects
13
It is not proposed to make public at this stage the intention to replace the naval patrol craft, A public announcement will be necessary in due course, The announcement will refer to the facts set out in paragraph 3 and will explain that in accordance with the division of costs of the garrison the Hong Kong Government will be meeting its share of the agreed cost of the replacement vessels.
14
Public reaction will depend particularly on the situation at the time of the announcement. Although there has been only limited public interest recently in the cost of HM Forces in Hong Kong, the Defence Costs Agreement remains potentially an issue of considerable public and press concern. An announcement of capital expenditure of this order, additional to our expenditure under the Agreement, might take the public by surprise and the press might seek to use it to re-open the whole issue of the Defence Costs Agreement. In particular, questions are bound to be asked
CONFIDENTIAL **
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