TNAG-2120-FCO40-3026-Hong-Kong-Garrison-future-of-the-Royal-Navy-presence-1990 — Page 163

MINISTRY OF DEFENCE

Main Building, Whitchall, London SWIA 2HB

Telephone (Direct Dialling) 01-218

(Switchboard) 01-218 9000

01-218

Honcurable L M Davies CMG OBE

Secretary for Security Hong Kong Government

Dear Mr Davies

ROYAL NAVY REPLACEMENT PATROL CRAFT FOR HONG KONG - AGREEMENT BETWEEN THE GOVERMENT OF HONG KONG AND THE UK MINISTRY OF DEFENCE (NAVY)

This letter and your reply record the agreement reached between our

Governments concerning

(1) the procurement by the Ministry of Defence (Navy), following

consultation with the Hong Kong Government, of 5 patrol craft to Naval

Staff Requirement 7015 (the vessels) to replace the 5 Ton Class ships

currently deployed in Hong Kong;

(2) the financial contribution to be made by the Hong Kong Government

towards such procurement and the financial arrangements therefore; and

(3) other matters relating thereto.

Te Type Braves

2. The procurement of the vessels and the apportionment of the capital costs

thereof is outwith the Defence Costs Agreement 1981 (DCA) and shall be governed

this exchange of letters. It is acknowledged that, after the introduction of ea

of the vessels into service with the garrison in Hong Kong, the running costs o

each such vessel introduced (which shall include, but without prejudice to the

generality of the foregoing, the costs set out in paragraph 9 hereto), will the

after be shared and recovered in accordance with the DCA current at the time th.

they are incurred by the Ministry of Defence (Navy).

3.

The Ministry of Defence (Navy) will be solely responsible for entering int

contract with a Shipbuilder for the design, build and trials of the vessels and

1