TNAG-2404-FCO40-3491-Hong-Kong-defence-and-public-order-1992 — Page 64

By Fax

布政司署

香港下亞厘畢道

DIEU

本署檔號 Our Ref.:

來函檔號 Your Ref.:

Mr Mike Stone

Hong Kong Department

FCO

Dear

Mike

GOVERNMENT SECRETARIAT LOWER ALBERT ROAD

M. FURNESS

Pls pursue.

m

518.

HONG KONG

31 July 1992

rifatid

Trout of

Expat

Purchase of Two $70A (Blackhawk) Helicopters

Recovery of US Government Research and Development Recoupment

as

US

You may be aware that we have agreed to purchase two $70A (Blackhawk) helicopters for the RHKAAF from United Technologies Corporation, Sikorsky Aircraft Division. The negotiated price of the two basic helicopters (US$18,027,784) includes a total of US$460,000

Government Research and Development recoupment. A recent Presidential Initiative has proposed that this recoupment be no longer charged for defence equipment exported for non-military use (see attached extract from Flight Magazine, dated 1-7 July 1992).

We are obviously anxious that we can benefit from this initiative and obtain a refund from Sikorsky before the final instalment. is due in December 1992. In this connection Sikorsky have advised that it may be quicker to obtain a refund of these recoupment fees under the- US/NATO agreement, under which we understand these fees are refunded by the US Government to purchasers from NATO Countries. My purpose in writing is to see whether you can investigate this matter possibly through the British Embassy in Washington and to request you to keep us informed on progress on the Presidential Initiative. Hong Kong Department was previously instrumental in the mid-80s in obtaining a reversal of a previous US decision to deny us access to special infra-red equipment. We feel the same channels could be

used on this occasion as you can enter the military net more easily than our counterparts in the Hong Kong Economic and Trade Office in Washington.

We are

also anxious to obtain a refund on the recoupment for the spare General Electric engine which we have ordered direct from GE.

The recoupment is US$25,450. We believe the S70A recoupment includes the recoupment on the four GE engines on the helicopters but would be grateful if you would check that this is so.

For your reference, I will send by bag a copy of the FCai paper on this subject and of the contract HKG has with United Technologies on the sale of the two $70A helicopters.