TNAG-2404-FCO40-3491-Hong-Kong-defence-and-public-order-1992 — Page 6

(i)

one spare engine and engine spares

1,616,240

(ii)

avionic spares

(iii)

safety and survival

900,000

5,500

equipment

(iv)

freight plus insurance charges

301,546

Sub-total

Total

2,823,286

26,650,380

Equivalent to HK$206.8 million at an exchange rate of US$1 HK$7.76.

In addition, it is proposed to allow a 2.5% contingency to provide for minor currency fluctuations or other unforeseen requirements, making a total of $212 million. Of this amount, it is envisaged that about $130 million will be payable in 1991-92 with the balance in 1992-93.

16.

As regards paragraph 15(a)(i) above, this covers. the basic costs of two S70A helicopters.

17.

As

regards paragraph 15(a) (ii) above, this is to purchase external rescue hoists for each helicopter to enable them to be used in a supporting role in a major SAR operation; to provide nightsun, a fast-roping capability

and a secure radio.

18.

As

regards paragraph 15(a)(iii) above, this is to provide for the training of pilots and technicians to operate and maintain the helicopters, and the full-time services of a field service representative for three years. The training will be provided in Hong Kong.

19.

As

regards paragraph 15(a) (iv) above, this is to cover the costs of transporting the helicopters from the manufacturing plant in the U.S.A. to Hong Kong.