TNAG-2120-FCO40-3026-Hong-Kong-Garrison-future-of-the-Royal-Navy-presence-1990 — Page 166

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C

and maintenance.

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In the event that any of the vessels are not introduced into service with

the garrison in Hong Kong, or are permanently withdrawn from Hong Kong, or upor

disposal by sale or otherwise, 75% of the then current market value or, in the

event of sale 75% of the nett proceeds, shall be credited to the Hong Kong

Government.

14.

In the event that the hull, the gun, or any other major item of equipment

not already in service is at any time brought into service elsewhere in the Roya

Navy, costs of Research and Development and design work, and the costs of any

common support equipment (for example, the training gun at HMS CAMBRIDGE) incurr

or to be incurred by the Hong Kong Government will be appropriately abated or

credited to the Hong Kong Government.

15. The Ministry of Defence (Navy) confirms that it has agreed in writing with a

Shipbuilder that the clause relating to labour shortfall in the contract between

the Ministry of Defence (Navy) and the Shipbuilder (Clause 29C) shall not be rel

upon by the Shipbuilder to constitute an admissible claim under the "Force Majeu

clause (Clause 29A).

16.

If any question, dispute or difference arises between the Ministry of Defer

(Navy) and the Hong Kong Government concerning this agreement, early consultatic

will be held with a view to reaching agreement or a mutually acceptable conclusi

or arrangements as soon as is reasonably practicable.

17.

This letter and your confirmation of acceptance of the terms hereof will

form the agreement made between our Governments.

Yours sincerely

Michael Glom

M G POWER

ASSISTANT UNDER SECRETARY OF STATE (NAVAL STAFF)

for and on behalf of the Ministry of Defence (Navy)

29 JUNE 1981

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