Memoranda of Understanding for British arms deals with Saudi Arabia

The documents below are all sourced from The National Archives (TNA) in London.    They contain public sector information licensed under the Open Government Licence v2.0.

 

The first Saudi Arabian Air Defence Assistance Project Memorandum of Understanding, 7 May 1973, T, TNA

 

CONFIDENTIAL

 

THIS MEMORANDUM OF UNDERSTANDING IS SIGNED IN TWO COPIES IN THE ENGLISH AND ARABIC LANGUAGES

 

FOR THE GOVERNMENT OF THE KINGDOM OF SAUDI ARABIA

 

BY HIS ROYAL HIGHNESS

PRINCE SULTAN BIN ABDUL AZIZ

MINISTER OF DEFENCE & AVIATION AND INSPECTOR GENERAL

 

DATE:  4-4-1393H CORRESPONDING TO 7-5-1973

 

FOR THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND

 

BY HIS EXCELLENCY

MR. A. K. ROTHNIE, CMG[1]

HER BRITANNIC MAJESTY’S AMBASSADOR TO THE KINGDOM OF

SAUDI ARABIA

 

DATE: 4-4-1393H CORRESPONDING 7-5-1973

 

This Memorandum of Understanding between the Government of the Kingdom of Saudi Arabia (called hereinafter “the Saudi Arabian Government”) signed on its behalf by His Royal Highness Prince Sultan bin Abdul Aziz, Minister of Defence and Aviation and Inspector General, and the Government of the United Kingdom of Great Britain and Northern Ireland (called hereinafter “the United Kingdom Government”) signed on its behalf by His Excellency Mr A. K. Rothnie, CMG, Her Britannic Majesty’s Ambassador to the Kingdom of Saudi Arabia, sets out arrangements entered nto on the FOURTH day of RABI THANI 1393 AH corresponding to the SEVENTH day of MAY 1973 AD.

Since the Saudi Arabian Government wishes to obtain services including study and training at the King Faisal Air Academy and the Technical Training Institute at Dharan and the maintenance of aircraft and equipment of the Royal Saudi Air Force (called hereinafter “the RSAF”), as set forth in the Statements of Work annexed hereto as Appendix 1, in order to enable the Saudi Arabian Government to achieve a greater degree of self sufficiency in the aforementioned services, and since the United Kingdom Government wishes to obtain the provision of these services for the Saudi Arabian Government, the two Governments accept that:-

 

1.1   The United Kingdom Government will place a contract on British Aircraft Corporation Limited (called hereinafter “BAC”), with a view to the provision to the Saudi Arabian Government of all the services specified as the responsibility of the contractor (BAC) in the Statements of Work Numbers 1-10 shown in Appendix 1 attached.

 

1.2   An important provision in the contract with BAC is that Saudi personnel will replace expatriate personnel in accordance with a plan which should be produced in three (3) months from the date of signing and that when such replacements take place there will be commensurate reduction in cost.

 

1.3   The Saudi Arabian Government will select technical personnel from the RSAF to be trained to enable them to become technical instructors and instructor pilots in accordance with plans referred to in the Statements of Work.

 

1.4   The Saudi Arabian Government will deal with BAC directly in all day to day work and technical matters.

 

2.1   This Memorandum of Understanding will operate from the date of signature and subject to the provisions of paragraph 20 hereof will remain in force for a period of five (5) years from the day following expiry of the notice referred to hereinafter at paragraph 2.2.

 

2.2   Following signature of this Memorandum of Understanding the Saudi Arabian Government will give notice to Airwork Services Limited of termination of those tasks presently being performed by that Company under Contract No ASL/5025/66 as extended by letter reference 1859/MS dated 19.8.1392 AH (27.9.1972) which are not already the subject of the notice of termination dated 20.2.1393 AH (25.3.1973).  The RSAF will progressively take over from Airwork Services Ltd and hand over to BAC during the last month of the period of notice the equipment, supplies, buildings and facilities required for the performance of the tasks specified in Statements of Work Numbers 1-10, and BAC will assume full responsibility for those tasks with effect from the date of the day following expiry of the said notice, such date being referred to hereinafter as “the effective date”.

 

2.3   In the event that the Saudi Arabian Government desire the United Kingdom Government to extend this Memorandum of Understanding beyond the five (5) year period provided for, the United Kingdom Government will be so advised not less than one year before expiry of this Memorandum of Understanding and the Governments will consult as to whether there will be an extension and if so to the terms and conditions of any such extension.

3. In furtherance of the objectives of this Memorandum of Understanding the United Kingdom Government will:-

 

3.1          Provide a Team from the British Ministry of Defence (“the Team”) whose composition will be agreed with the Saudi Ministry of Defence.  The Headquarters of the Team will be in Riyadh.

 

3.1.1      The duties of the Team will be to monitor the progress and performance of BAC’s tasks in Saudi Arabia as well as the manpower and material resources needed to fulfil them and to direct HQ BAC in Saudi Arabia as necessary on aspects of performance, organisation and administration.  In pursuance of these duties the Team will keep HQ RSAF informed of its activities and in co-operation with HQ RSAF and BAC will initiate measures to overcome problems connected with the operation of tasks under this Memorandum of Understanding.

 

3.1.2      Whenever necessary the Team will bring to the notice of the United Kingdom Ministry of Defence any unresolved difficulties which in the Team’s opinion could affect, or are affecting the successful development of the aims of this Memorandum of Understanding.

 

3.1.3      In agreement with the Saudi Ministry of Defence, United Kingdom Government personnel may be co-opted to the Team to provide additional specialist advice as and when required.

 

3.1.4      The Team will prepare, annually, a report on its activities for submission to the two Governments.

 

3.2          Facilitate the making available of such United Kingdom Government personnel to BAC as the Company may require, in agreement with the Saudi Arabian Government, and insofar as the United Kingdom Ministry of Defence can agree to their provision.  Such personnel will form part of the Team subject to the overall size of the Team being limited to a maximum of 70 during the first year from the effective date of this Memorandum of Understanding and to a maximum of 50 thereafter.

 

The status of United Kingdom personnel referred to in sub-paragraphs 3.1 and 3.2 above will be as set out in Appendix 2 hereto, except as otherwise provided for herein.

 

3.3          Set up a project support unit in the United Kingdom Ministry of Defence to co-ordinate the activities of the United Kingdom Ministry of Defence in respect of this Memorandum of Understanding.

 

3.4          Ensure that:-

 

3.4.1      all training is carried out to standards acceptable to the RSAF as specified in the Statements of Work;

 

3.4.2      all technical work is in accordance with the requirements of the RSAF as specified in the Statements of Work and with quality standards acceptable to the United Kingdom Ministry of Defence.

 

3.5          Ensure that all warranty and other similar benefits obtained from suppliers in the event that the United Kingdom Government procures any supplies on behalf of the RSAF, are enjoyed by and passed to the Saudi Arabian Government.

 

4.            The parties to this Memorandum of Understanding –

 

4.1          recognise that there may be changes in requirements caused by variations in quantities of aircraft, the need for temporary deployment of aircraft and other circumstances not presently foreseen.  The procedure to be adopted in dealing with such variations is set out in Appendix 3 hereto.

 

4.2          will set up an Anglo-Saudi Joint Committee, reporting to both Governments, to review progress, to report on achievements and shortfalls by either party or BAC and to make recommendations as appropriate.  The level of representation on this Committee and the place and date of its meetings will be agreed between the two Governments.  The Committee will normally meet once a year; either of the two Governments however may at any time call a meeting of the Committee to discuss any major point of pressing concern.

 

5.            The estimates specified in Appendix 4 hereto are regarded by both the United Kingdom and the Saudi Arabian Governments as ceiling figures.  The United Kingdom Government has made these estimates on a generous basis with the intention that, in the event, the payments based on them will be larger than required and there will therefore be a commensurate repayment to the Saudi Arabian Government.  For its part the Saudi Arabian Government recognises that the United Kingdom will not bear any profit or loss under this Memorandum of Understanding.  In the unlikely event that some action is required to preserve the ceiling nature of these figures the Saudi Arabian Government notwithstanding any of the provisions whatsoever of the Memorandum of Understanding and its Appendices is prepared to take appropriate action in its own best interests.  The United Kingdom Government will to this end give to the Saudi Arabian Government any notice or advice which may be regarded as useful or necessary.

 

6.1          The basis on which the United Kingdom Government is a party to these arrangements is that the United Kingdom Government accepts neither profit nor loss.

 

6.2          The Saudi Arabian Government accepts that the United Kingdom Government’s participation in these arrangements is entirely dependent upon the Saudi Arabian Government effecting payments in advance on account to the United Kingdom Government in Saudi Riyals and Pounds Sterling on the dates and in the amounts shown in Appendix 5.  The schedules of payments on account at Appendix 5 will at the request of the United Kingdom Government be amended to reflect any variation in the estimated total costs or in the incidence of costs.

 

6.3          The purpose of arranging payments in Riyals and Pounds Sterling is to avoid repercussions due to variations in the exchange rates between the two currencies.

 

6.4          Within one hundred and twenty (120) days of expiry or termination of these arrangements the United Kingdom Government will present to the Saudi Arabian Government final statements of account detailing the total costs incurred and payments on account received hereunder.  If the payments in advance on account exceed the final total costs the United Kingdom Government will repay the excess to the Saudi Arabian Government, but if such payments in advance on account fall short of the final total costs the Saudi Arabian Government will pay the United Kingdom Government the difference; any such payment or repayment as the case may be will be effected within ninety (90) days of presentation of the said final statements of account.

 

7.            The United Kingdom Government in entering into these arrangements does so with full confidence that the objectives of this Memorandum of Understanding will be achieved and with full confidence in the capability of BAC to fulfil the tasks.  The United Kingdom Government to this end will ensure that its responsibilities specified in the Memorandum of Understanding will be fully carried out.

 

8.            In support of this Memorandum of Understanding, the Saudi Arabian Government will provide the United Kingdom Government, BAC and its sub-contractors, free of charge, the following, within the limits of what is necessary and sufficient to support Statements of Work Nos 1-10 of Appendix 1:-

 

8.1.1      Fuel, oil and lubricants (POL) for aircraft; for RSAF motor transport when operated in direct support of tasks (i.e. not for private or domestic use); for specialist task vehicles and for ground equipment.

 

8.1.2      Storage and testing of all POL so supplied.  Single point refuelling.

 

8.2          Utility supplies (that is water, potable water, electricity, gas and sewage disposal) and, where appropriate, compressed air and fuel for all technical and domestic buildings provided all such buildings are on RSAF land and used by BAC in support of the specified tasks.  Any additional utilities needed to provide or supplement such supplies are specified in Statement of Work No 9.

 

8.3          RSAF air transport in Saudi Arabia for stores and personnel of the Team and BAC provided that such transport is available, the movement is in direct support of this Memorandum of Understanding, and that civil air transport is not available or appropriate.

 

8.4          Security guards.

 

8.5          The use of all buildings, associated services, equipment and other facilities taken over by BAC as set out in Statement of Work No 9 and such new construction under Statement of Work No 9 as is erected in aid of Statements of Work Nos 1-8 and 10.

 

8.6          All land for new construction under Statement of Work No 9.

 

8.7          Vehicles and specialist task vehicles currently available and required in direct support of the Statements of Work Nos 1-10.  The maintenance of all such vehicles will remain the responsibility of the RSAF.

 

8.8          Spares, ground and test equipment, special tools, and those other stores currently supplied by the Saudi Arabian Government for the performance of the tasks.

9.            The Saudi Arabian Government will ensure that:-

 

9.1          The personnel selected by the Saudi Arabian Government for training at the King Faisal Air Academy and Technical Training Institute possess the minimum qualifications deemed necessary by the RSAF for the courses to which they are assigned.

 

9.2          All facilities, services, utilities, stores and equipment specified in paragraph 8 of this Memorandum of Understanding are provided by the Saudi Arabian Government in a timely manner in order that efficient and economic provision of the services and supplies is not impeded.

 

9.3          At all times during the period of this Memorandum of Understanding the United Kingdom Government, BAC and its sub-contractors and their personnel are provided with authorisation and given access to all bases, sites and buildings as required by them in the performance of their authorised duties.

 

9.4          Expeditious customs clearance into Saudi Arabia of all supplies and equipment required for the project is at all times achieved.

 

9.5          Authority is given, in agreement with the appropriate authority of the Saudi Arabian Government, for the movement of any explosives to be used solely in the construction work specified in Statement of Work No 9 of Appendix 1 hereto.

 

9.6          Requirements regarding age and qualifications for BAC or sub-contractor personnel as set out in the Statements of Work in Appendix 1 hereto may be waived, in agreement with the RSAF, in respect of those personnel presently employed by Airwork Services Ltd in Saudi Arabia where such personnel are re-employed by BAC.

 

10.          In order to promote the achievement of the objectives of this Memorandum of Understanding the United Kingdom Government may procure or authorise the procurement of such support, including supplies, as may be specified herein or referred to in the Appendices attached hereto as the responsibility of the Saudi Arabian Government, which the Saudi Arabian Government has not provided.  The United Kingdom Government will consult with the Saudi Arabian Government before taking any such action and will inform the Saudi Arabian Government of the increase, if any, in the estimated cost and of the effect of the schedule of payments on account which will be adjusted accordingly.

 

11.          The Saudi Arabian Government will permit:-

 

11.1.1    BAC to operate a radio communications system internally in Saudi Arabia and the two Governments will permit BAC to operate leased telex facilities between the United Kingdom and Saudi Arabia for use in connection with this Memorandum of Understanding.

 

11.1.2    The Team to instal and operate a secure radio communications system between the United Kingdom and Saudi Arabia for use in connection with this Memorandum of Understanding.

 

11.2        BAC and their sub-contractors to import food for consumption in their homes, if not available locally, in accordance with the regulations of the Saudi Arabian Government.

 

11.3        BAC to construct and operate junior schools for the education of children of its expatriate personnel and those of the Team within the domestic accommodation areas at each base.

 

11.4        BAC and its sub-contractors to employ third-country nationals, subject to approval by the appropriate agency of the Saudi Arabian Government and such approval will not be unreasonably withheld.

 

12.          Should BAC consider that re-allocation of personnel between bases is in the best interests of task performance (where such task performance is the responsibility of BAC within the Statements of Work) then BAC will inform the Base Commanders concerned, in writing, of the reasons for such proposed re-allocation and the agreement of such Commanders will not be unreasonably withheld.  BAC will provide the RSAF with lists containing names of their personnel and the nature of the work which each performs.

 

13.          BAC may, with the agreement of the two Governments, sub-contract any part or parts of the Statements of Work at any time during the period of these arrangements.

 

14.1        It is understood by the Saudi Arabian Government that the United Kingdom Government in participating in these arrangements does so on a non-profit basis for the benefit of the Saudi Arabian Government.  The Saudi Arabian Government will therefore indemnify and hold harmless the United Kingdom Government and its agencies, agents, officers and employees from any and all loss and liability, whether in tort or contract or otherwise howsoever, including losses met by the United Kingdom Government in accordance with United Kingdom service regulations which it might otherwise incur in participating in these arrangements, and further agrees not to sponsor or pursue any claims which it may acquire against the United Kingdom Government, its agencies, agents, officers and employees.

 

The term “agents” as used in the foregoing does not include BAC, its sub-contractors or their employees.

 

14.2        The Saudi Arabian Government agrees:-

 

14.2.1    To waive any or all claims which it has or may have against BAC, its agents, officers or employees for damage, loss, or destruction of property, and for injury to or death of persons, arising out of participation in these arrangements in the absence of such claims being attributable to the negligence, or wilful misconduct of BAC, its agents, officers or employees.

 

14.2.2    To indemnify and hold harmless BAC, its agents, officers and employees against all claims arising, directly or indirectly by reason of injury or to death of persons, or loss of or damage to property, out of participation in these arrangements, in the absence of such claims being attributable to the negligence or wilful misconduct of BAC, its agents, or employees.

 

14.3        United Kingdom Government personnel made available to BAC under the provisions of paragraph 3.2 of this Memorandum of Understanding will be covered by the provisions of sub-paragraph 14.1 above.  BAC will however be financially responsible for the effects of any act of negligence or wilful misconduct by such United Kingdom Government personnel in the course of their duties while under BAC management.

 

14.4        The Saudi Arabian Government will be responsible for, and shall reimburse the United Kingdom Government for loss, or damage to property owned by BAC, its agents, officers, or employees located in Saudi Arabia, where such loss or damage is sustained due to or arising out of acts of war, armed conflict, insurrection, riots, civil strife, confiscation, nationalisation or deprivation of dominion and control by the Saudi Arabian Government.

 

15.1        The members of the Team will enjoy the same tax and customs privileges as are prescribed for members of the Diplomatic Corps in the Kingdom of Saudi Arabia.

 

15.2        BAC and its expatriate sub-contractors will enjoy tax exemptions within the following limits:-

(a)          Exemption from Saudi Arabian Government Income Tax on the profits of BAC and its sub-contractors;

(b)          Exemption from tax on personal income of the employees of BAC and its sub-contractors;

(c)           Exemption from Road Tax and Stamp Duty (Affixing Stamps).

 

15.3        BAC and its sub-contractors will enjoy exemption from Social Security charges in respect of their expatriate personnel.

 

15.4        BAC and its sub-contractors will enjoy exemption from Customs and subsidiary duties on all materials and equipment imported by BAC or its sub-contractors for the implementation of this Memorandum of Understanding.

 

15.5        If the imported materials and equipment exempted under sub-paragraph 15.4 above are sold in Saudi territory or used for purposes other than those of this Memorandum of Understanding they will be subject to the Customs and subsidiary duties imposed at the time of their importation on similar materials, and these duties will be paid by BAC or its sub-contractors as appropriate.

 

15.6        Should the members of the Team, BAC or any of its sub-contractors be called upon, in error, to pay any of the taxes from which exemption has been given in sub-paragraphs 15.1 to 15.4 above, the Saudi Arabian Government will refund to them the whole of the amounts so paid.

 

16.1        The Saudi Arabian Government will provide all assistance to obtain the timely provision to BAC, its sub-contractors, their personnel and dependants of entry visas, residence and exit permits within the limits of the regulations in force.

 

16.2        BAC, its sub-contractors and their personnel will not divulge to any foreign government or to any unauthorised persons whosoever, any classified information of the Saudi Arabian Government.

 

16.3        Each Government will protect the security of any plans, specifications or information provided by the other in accordance with the indicated security classification.  Neither Government will communicate such classified material to a third party unconnected with this Memorandum of Understanding without the agreement of the other.

 

16.4        The Saudi Arabian Government will be entitled to request the termination of employment in Saudi Arabia of any BAC personnel.  Where no reason is stated for the request, the Saudi Arabian Government will indemnify BAC for any compensation, up to a total of three (3) months emoluments, which BAC may be called upon to pay to the employee.

 

16.5        The Saudi Arabian Government may at no cost to itself request BAC or its sub-contractors not to renew the employment in Saudi Arabia of individual expatriate personnel following the expiry of that individual’s then current contract of employment.  BAC and its sub-contractors will comply with such requests.

 

17.1        All expatriate personnel of BAC and its sub-contractors in Saudi Arabia in connection with this Memorandum of Understanding will respect the laws, customs, rules and regulations of Saudi Arabia and abide by such security regulations as may be promulgated by the Director of Intelligence of the RSAF.  The Saudi Arabian Government will ensure that all new security promulgations are made in writing to the resident Director of BAC and to the Head of the Team.

 

17.2        All non-Saudi personnel of BAC and its sub-contractors in Saudi Arabia who have any connection with this Memorandum of Understanding are entitled to six days annual leave in the Kingdom of Saudi Arabia, as compensation for the official holidays in the United Kingdom.

 

18.          All items purchased by BAC at a unit price greater than RS180/£20 and used in Saudi Arabia for the operation of this Memorandum of Understanding become the property of the Government of Saudi Arabia.  They will be made available to BAC free of charge and without restraint but will be handed over to the Government of Saudi Arabia “as is, where is” upon expiry or termination of the period of this Memorandum of Understanding.  Details of the said items will be provided to the Saudi Arabian Government for record purposes.

 

19.          In the case of the outbreak of war, or of any civil or military conflict that might endanger the safety of foreign employees, the Saudi Arabian Government will be responsible for any additional costs incurred by the United Kingdom Government in retaining or replacing the appropriate employees in the Kingdom of Saudi Arabia, subject to the agreement of the Saudi Arabian Government to those arrangements.  The United Kingdom Government has the right, after consulting the Saudi Arabian Government, to withdraw or replace personnel or to suspend the arrangements provided for in this document.

 

20.          In the event that either Government desires to terminate this Memorandum of Understanding either Government may after this Memorandum of Understanding has been in operation for at least one year give one hundred and eighty (180) days notice in writing of its intention to terminate.  Thereafter the two Governments will consult together with the aim of fixing a mutually acceptable termination date.  If no other date is fixed as a result of such consultation this Memorandum of Understanding will terminate at the end of such period of 180 days.  In the event of termination pursuant to this paragraph it is understood and accepted that this Memorandum of Understanding will continue in force and effect beyond the specified termination date as necessary for the purpose of settling termination or other claims and costs.

 

21.          It is understood between the parties to this Memorandum of Understanding that subject to consultation United Kingdom civilian or military personnel will remain available in Saudi Arabia for preparation, including arming and support, of aircraft during an armed conflict but that under no circumstances will they be permitted or requested or required actually to participate in such a conflict undertaken by the armed forces of Saudi Arabia.

 

22.1        All technical, training and other publications and material whether required to be provided by the Statements of Work or otherwise will be in the English language.

 

22.2        Official correspondence and notices provided for in this document will be in the Arabic, or in both the English and the Arabic languages.

 

23.          The Appendices to this Memorandum of Understanding form part of this Memorandum of Understanding but if there is any inconsistency between any provision of the Appendices and any provision in the body of this document the latter provision will prevail.

 

24.          This Memorandum of Understanding is signed in two copies in the Arabic and English languages, which languages shall be equally valid.

 

25.          If any dispute occurs at any time during the period covered by this document relating to its interpretation, both parties will exert their utmost efforts to reach a friendly settlement.

 

IN WITNESS whereof those presents have been entered into the day and year first above written.

For and on behalf of The Government of The Kingdom of Saudi Arabia

[signed]

SULTAN BIN ABDUL AZIZ

Minister of Defence & Aviation & Inspector General

 

For and on behalf of The Government of UK of Great Britain & Northern Ireland

[signed]

A.K. ROTHNIE, CMG

Her Britannic Majesty’s Ambassador to the Kingdom of Saudi Arabia

Enclosures:         Appendices 1, 2, 3 4 and 5 form a part of this Memorandum of Understanding.

 

[Appendix 1 missing]

 

CONFIDENTIAL

APPENDIX 2

STATUS OF UNITED KINGDOM GOVERNMENT PERSONNEL

STATUS AND JURISDICTION

1. United Kingdom Service Personnel will remain for all purposes members of the Armed Forces of the United Kingdom and under United Kingdom command and will accordingly not be subject to the service regulations of Saudi Arabia or to any arrest or detention thereunder, nor to the jurisdiction of any authority, court or tribunal deriving its constitution or powers under the service regulations of Saudi Arabia.

2. Save as may be otherwise arranged between the United Kingdom Government and the Saudi Arabian Government in any particular case or class of case exclusive jurisdiction with respect to all offences committed by members of the United Kingdom Armed Forces and their dependants and the civilian component of the Team will be exercised by the British Service Authorities; provided that in the case of proceedings involving persons or the property of persons other than United Kingdom Armed Forces personnel or their dependants or the civilian component of the Team, such jurisdiction will be exercised after consultation with the Saudi Arabian Government.

CLAIMS

3. A member of the Team will not be subject to any proceedings for the enforcement of any judgement given against him in the Courts of the Government of Saudi Arabia in a matter which arises in the course of his duty as a member of the Team.

IMPORTS AND EXPORTS

4. The general question of freedom from duties is covered by paragraph 15 of the body of the Memorandum of Understanding document.  In addition goods imported or purchased duty free by United Kingdom Armed Forces personnel or the civilian component of the Team under that paragraph may without payment of duty or tax be sold or otherwise disposed of in Saudi Arabia to another person entitled to the like rights of import as are contained in this Appendix provided that such goods including a private motor vehicle may be sold or otherwise disposed of to any other person subject to the payment of the duty applicable at the time of such sale or disposal.

DRIVING LICENCE

5. The Authorities of Saudi Arabia will accept as valid current United Kingdom or International driving licences (or service driving permits) issued to United Kingdom Government personnel and current United Kingdom or International driving licences issued to their dependants or will issue, on production of such licences or permits, licences valid in Saudi Arabia without test or payment of fee.

FREEDOM OF MOVEMENT

6. No restriction will be placed on the freedom of movement of United Kingdom Government personnel and their dependants into and out of Saudi Arabia.

UNIFORM

7. United Kingdom Armed Forces personnel may wear the appropriate uniform of the United Kingdom Armed Forces.

WITHDRAWAL

8. The United Kingdom Government reserves the right to withdraw individual United Kingdom Government personnel from Saudi Arabia provided that the performance of the tasks is not affected.

CONFIDENTIAL

APPENDIX 3

CHANGES IN REQUIREMENTS

1. Either party to this Memorandum of Understanding may request changes in the requirements specified in the Statements of Work attached as Appendix 1 hereof provided that any additional cost can be contained within the ceiling figures referred to at paragraph 5 of the Memorandum of Understanding.  Any such change agreed upon by the parties will be recorded in the form of a Change Order and signed by duly authorised representatives of the parties hereto.  BAC will be authorised by the United Kingdom Government to agree to such changes and to sign such Change Orders as are specified in sub-paragraphs 2.1 and 2.2 hereof.

2. Changes in requirements will generally fall into the following three categories:-

2.1   Minor changes: for example a minor change in the commencement time of the working day at a particular base.  Such minor changes will be agreed between the RSAF Station Commander and BAC Base Manager and the appropriate Change Order signed by them or their authorised representatives.

2.2   Significant changes: for example the deployment of aircraft between bases.  Such significant changes will be agreed between the Commander RSAF and the resident Director of BAC and the appropriate Change Order signed by them or their authorised representatives.

2.3   Major changes: for example the addition or deletion of a squadron of aircraft from a unit establishment or the addition or deletion of a task or sub-task.  Such major changes will be agreed between the parties to this Memorandum of Understanding and the appropriate Change Order signed by them or their authorised representatives.

Minor changes which cannot be agreed between the parties mentioned in sub-paragraph 2.1 above will be treated as significant changes in accordance with sub-paragraph 2.2 above.  Similarly significant changes which cannot be agreed between the parties mentioned in sub-paragraph 2.2 above will be treated as major changes in accordance with sub-paragraph 2.3 above.

3. Each Change Order referred to in this Appendix will state the category of the change as applicable, the effective date of such change, and whether and if so to what extent such change affects any of the following:-

3.1          The cost of any applicable Task or Tasks.

3.2          The performance targets of any applicable Task or Tasks.

3.3          The timescale within which the performance targets at 3.2 hereof are planned to be achieved.

3.4          The manning schedules affected.

3.5          The facilities or other provisions to be made available by the Saudi Arabian Government.

The categories of change will be determined and classified generally in relation to the effect of such change on the factors in sub-paragraphs 3.1. to 3.5 above.

 

[Appendix 4 follows, which sets out in the Cost Estimates Summary the total costs of SADAP broken down by the following, by year:

(1)    Statement of Works 1-8, 9 (Section 1) and 10

(2)    Rentals, Maintenance, etc of Domestic Buildings

(3)    New Construction – Technical, Domestic

(4)    Payments to Airwork

(5)    Departmental Expenses @ 2%

(6)    MOD Team

 

The detailed breakdown by Task, by year, is by the following headings:

 

1.1   Technical Support Lightning

1.2   Technical Support 167’s

1.3   Technical Support Cessna

1.4   3rd Line Servicing Components and Modifications

2.1 K.F.A.A.

2.2 L.C.U. (including Simulator)

3.1 T.T.I. Executive

3.2 T.T.I. English Language

3.3 Academic and Basic

3.4 Speciality Including Maintenance

3.5 Control and Reporting

3.6 Trade Standard and Testing

4.1 O.J.T. Administration

4.2 O.J.T. Specialist Supervisors

4.3 Central Training Aid Establishment – Administration

4.4 Central Training Aid Establishment – Operations

4.5 Technical Publications Military Administration and Operations

5.1 Equipment Supply Support

6.1 Motor Transport Maintenance

7.1 Armament Storage

7.2 Armament Servicing

8.1 Procurement Saudi Arabia

8.2 Procurement – U.K.

9.1 Buildings – Maintenance and Operation

9.2 Erection of Technical Buildings

9.3 Domestic Accommodation (a) Erection (b) Other charges

10 Aeromedical]

 

 

CONFIDENTIAL

 

SCHEDULE OF ADVANCE PAYMENTS ON ACCOUNT

Appendix 5 to Memorandum of Understanding

 

Payments Required

 

In £s Sterling                      plus        In Riyals

 

Within 21 days of signature of

the Memorandum of

Understanding                                              £ 5,000,000                                          75,000,000

 

4 months after the date of

signature of the Memorandum

of Understanding                                         15,000,000                                           225,000,000

 

6              “              “              “                       4,250,000                                             100,000,000

9              “              “              “                       4,250,000                                             100,000,000

12           “              “              “                        4,250,000                                             100,000,000

15           “              “              “                        4,250,000                                             100,000,000

18           “              “              “                        4,000,000                                             80,000,000

21           “              “              “                        4,000,000                                             80,000,000

24           “              “              “                        4,000,000                                             80,000,000

27           “              “              “                        4,000,000                                             80,000,000

30           “              “              “                        4,000,000                                             60,000,000

33           “              “              “                        4,000,000                                             60,000,000

36           “              “              “                        4,000,000                                             60,000,000

39           “              “              “                        4,000,000                                             60,000,000

42           “              “              “                        4,000,000                                             40,000,000

45           “              “              “                        4,000,000                                             40,000,000

48           “              “              “                        4,000,000                                             40,000,000

51           “              “              “                         4,000,000                                             40,000,000

54           “              “              “                         3,000,000                                             30,000,000

57           “              “              “                         3,000,000                                             30,000,000

60           “              “              “                         3,000,000                                             30,000,000

63           “              “              “                          2,228,000                                              12,663,000

                                                                         96,228,000                                        1,552,663,000

 

Note 1:

Irrevocable letters of credit in favour of the United Kingdom Government will be opened by the Saudi Arabian Government with the Bank of England for Sterling funds and with a Bank to be nominated in Riyadh, Saudi Arabia, for Riyal funds.

 

Note 2:

Payments will be made by the Saudi Arabian Government to these letters of credit in the amounts and on the dates specified in this Appendix.

 

Note 3:

The nominated Banks will be authorised in the aforesaid letters of credit to pay to the United Kingdom Government such amounts as the United Kingdom Government judges necessary for the tasks and purposes of the Memorandum of Understanding.

 

Note 4:

All interest accruing on the amounts of the letters of credit will be accredited to the Saudi Arabian Government.

 

Note 5:

Financial reports will be made by the United Kingdom Government at the annual meetings of the Anglo-Saudi Committee.

 

Note 6:

Any surplus of advances on account in either currency may be applied, in calculating final sums due or at any other time, to reduce or eliminate any deficiency on the other currency at the rate of exchange at which the transfer is effected by the United Kingdom Government.  The Saudi Arabian Government will be informed of the details of all such transfers.

 

 

The first Al Yamamah Memorandum of Understanding, 26 September 1985, PJ 1/39, TNA

 

RSAF SECRET

MEMORANDUM OF UNDERSTANDING

FOR

THE PROVISION OF EQUIPMENT AND SERVICES

FOR THE ROYAL SAUDI AIR FORCE

Formal Understanding and signature

Annex A – Initial Arrangements

Annex B – List of Proposed LOAs

FORMAL UNDERSTANDING

 

The Government of the Kingdom of Saudi Arabia and the Government of the United Kingdom of Great Britain and Northern Ireland,

Having regard to:

The friendly relations between the two countries, in various aspects.

The desire of the Kingdom of Saudi Arabia to continue its co-operation with the United Kingdom over the provision of defence equipment for the Royal Saudi Air Force.

Have reached the following understanding:

The Government of the Kingdom of Saudi Arabia will purchase, and the Government of the United Kingdom will supply 48 Tornado IDS aircraft, 24 Tornado ADV aircraft, 30 Hawk aircraft and 30 PC-9 basic training aircraft together with associated support services, equipment, weapons, ammunition and electronic warfare systems for the use of the Royal Saudi Air Force.  The total costs of the programme will be of the order of three to four billion pounds sterling.

The Government of the United Kingdom, in the interests of continuing its long term association with the Saudi Arabian Government commits itself to the support of these aircraft throughout their service with the Royal Saudi Air Force and to make available future developments of the aircraft, systems and weapons to the Royal Saudi Air Force.

The Government of the United Kingdom undertakes to purchase the Lightning aircraft presently in service with the Royal Saudi Air Force, associated equipment, weapons and spare parts.  The Government of the United Kingdom also undertakes to purchase as many Strikemaster aircraft, presently in service with the Royal Saudi Air Force, equipment and spare parts, as may be offered by the Government of the Kingdom of Saudi Arabia.

The two Governments hereby undertake to elaborate these arrangements in a formal Memorandum of Understanding to cover all aspects of the project.  This, together with its associated Letters of Offer and Acceptance, will be complete by 31 March 1986.  The initial arrangements are listed at Annex A and the proposed Letters of Offer and Acceptance at Annex B.

 

For and on behalf of the                                                            For and on behalf of the

Government of the Kingdom of                                             Government of the United

Saudi Arabia                                                                                   Kingdom of Great Britain

and Northern Ireland

 

His Royal Highness                                                                      The Right Honourable

Prince Sultan Bin Abdul Aziz                                                   Michael Heseltine MP

Second Deputy Prime Minister                                              Secretary of State for

And Minister of Defence and                                                   Defence

Aviation and Inspector General

 

RSAF SECRET

ANNEX A

INITIAL ARRANGEMENTS

1. The Government of the Kingdom of Saudi Arabia having undertaken to purchase, and the Government of the United Kingdom having undertaken to supply, aircraft together with support services, equipment, weapons and electronic warfare systems for the use of the Royal Saudi Air Force, recognise that the Formal Understanding will be followed by a programme of detailed planning, and accordingly instruct the Royal Saudi Air Force and the United Kingdom Ministry of Defence to complete this without delay.

2. The two Governments additionally recognise that, to achieve their common objective of providing the Royal Saudi Air Force with the required capability as soon as possible, production of Tornado aircraft and equipment must commence before detailed planning is complete.  The Government of the Kingdom of Saudi Arabia will therefore provide funding in the manner decided between the two Governments.  This will include adequate interim funding for the period until 31st December 1985 which will be arranged within sixty days of signature of this Formal Understanding.

 

RSAF SECRET

ANNEX B

LIST OF PROPOSED LETTERS OF OFFER AND ACCEPTANCE

 

LOA 1 – Supply of Tornado, Hawk, PC-9 aircraft and role equipment

LOA 2 – Initial spares, ground support equipment and publications

LOA 3 – Training

LOA 4 – In-country facilities

LOA 5 – Contractor maintenance and support services

LOA 6 – Weapons

LOA 7 – Spares and Repairs

LOA 8 – Post Design Services

LOA 9 – Future development

LOA 10 – Buy-back of Lightning and Strikemasters

LOA 11 – UKMOD Team

LOA 12 – Programme Management and Administration


[1] Alan Rothnie.