TNAG-2405-FCO40-3492-Hong-Kong-defence-and-public-order-1992 — Page 38

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In this context, I would also like to draw your attention to the sales potential for such equipment in Hong Kong and the region. Locally, the Hong Kong Government has already purchased eight of Sikorsky's $76 rescue and search helicopters as well as two Beechcraft C-12 fixed wing aircraft. Regionally, past and future purchases of US defense-related equipment by ourselves provide a valuable "showcase" for US firms selling to other Asian customers. Indeed, I understand Malaysia and Japan have already followed our example in acquiring a substantial number of Sikorsky's S76 rescue and search helicopters.

In view of the above, I would be most grateful for your favourable consideration of Our request for a complete waiver of the R & D recoupment charge of US$460,000 in respect of this Sikorsky S70A-27 blackhawk utility helicopter purchase.

I

Due to impending completion of the transaction, would be most appreciative of a reply by, say, 30

November 1992.

I look forward to your favourable response.

Yours sincerely,

(Billy C.L. Lam)

Director of Government Supplies