TNAG-1941-FCO40-2767-Future-of-Hong-Kong-defence-and-public-order-1989 — Page 67

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

SECRET UK EYES A

Chile, Ecuador, Republic of Korea, Thailand, Venezuela, Egypt

nd the UAE (and possibly in Brazil and Zimbabwe).

83. Sales and Service Support. The demand for support for

sales from the Services has continued at a high level. MDS1 has been involved in supporting sales throughout a high proportion of the free world with emphasis on the Middle and Far East and in

providing on site support in Malaysia and Thailand. The demand for support from MDS2 Training continues to expand as

increasingly defence export contracts are conditional upon the

supply of training, maintenance and service support. MDS3

continues to organise exhibitions (RNEE 89 and BAEE 90) and

inward missions which are estimated to greatly assist our defence

equipment exporters. It is considered that the recently formed OOA Exercises and Deployment Sub-group of the OOACG will prove to be valuable in arranging for selected marketing efforts to be

supported by these exercises and deployments.

REVIEW RESIDUAL MATTERS ARISING FROM CDS 10/83

84. The COS endorsed (CDS 4/89) an objective for the 00ACG in

1989 to review residual matters arising from CDS 10/83 (00A Defence Policy Composition and Management). After careful

study the 00ACG has concluded that the one item from CDS 10/83

which may still be regarded as unresolved is that of training and

assistance charges, a subject which has received much attention

this year as further attempts are made to satisfactorily resolve this difficult problem. CDS 10/83 observed (Paragraph 20) that UK charges for training and assistance overseas should be set at

a level that complements our 00A interests and maximises

strategic influence, rather than trying to maximise revenue:

principle has remained difficult to reconcile. During the year measures to improve the application of training subsidies to

make F&CT more affordable to countries which it is desired to

assist, have continued to be explored and there are signs that a solution to the difficulties is now in sight.

85. The other matter which may be regarded as residual from CDS 10/83 is the role and Terms of Reference (TOR) of the OOACG. Endorsed by the COS in the 1988 OOA Review (CDS 4/89) as an

SECRET UK EYES A

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