TNAG-1636-FCO40-2252-Visits-by-FCO-officials-to-Hong-Kong-1987 — Page 43

IN CONFIDENCE

19. Defence Relations. The main element is our joint involvement

in Five Power Defence Arrangement (FPDA), with Malaysia, Australia

and New Zealand. We maintain 2 RAF officers in the Integrated Air

Defence System (IADS) HQ in Butterworth, Malaysia, and participate

in FPDA exercises, normally the annual "Star Fish" naval exercise.

In 1986, in addition to 2 Hong Kong patrol craft, the "Global 86" RN

Task Group, led by HMS Illustrious took part. New Zealand recently

announced the withdrawal of its Singapore-based infantry battalion

in 1989. The Australian Mirage Squadron based at Butterworth will

also be withdrawn in 1988, though it will return regularly for exercises. Neither New Zealand nor Australia have suggested that

the FPDA should be abrogated.

20.

Singapore's defence requirements are considerable. Prospects

do exist for British industry, but they will be hard won. HMG is

discussing with the Singaporeans a MOU supporting Ferranti's bid to

up-date Singapore's Skyhawk aircraft. Colonel Teo, Head of the Air

Force, has indicated on occasion an interest in Hawk (and currently

wishes to fly Tornado). Singapore is in the market for mine counter-measure vessels and for more Rapiers. Land Rover are hoping

for a second major sale.

21. Trade. Singapore is Britain's principal trading partner in

South East Asia, and Britain is the largest equity investor in

Singapore. In 1986, UK exports stood at £547.5m, imports at

£462.9m. Our market share in 1985 dropped slightly to 2.9% (1986 figure not yet available). The numerous public sector contracts

currently being advanced by the Singapore Government as economic

pump primers will continue to provide export opportunities (see Fact

Sheet). UK's principal recent successes include MRT contracts

(Henry Boot International - £90m Trackway Contract; Trafalgar

House/Jardine Matheson £30m Marine Bay MRT Station; Westinghouse

£40m signalling equipment, platform screens and doors): Pulau Seraya

Power Station (NEI Parsons £70m generators): GEC/British Telecom £15m Viewdata/Teletext system: Leyland Bus/Walter Alexander - £10m

100 double-deck buses.

w

-

―

-

IN CONFIDENCE