§ Lord Kennetasked Her Majesty's Government:
Whether they will set out the respects in which the system agreed between them and the United States concerning operations and contracts on Diego Garcia in the exchange of letters dated 16th November 1987 differs from that contained in the original exchange of notes of December 1966.
§ Lord GlenarthurThe exchange of notes, signed on 30th December 1966 with the United States of America, set out the arrangements which would apply to the construction of a defence facility on Diego Garcia. In particular it specified that the territory remained under UK sovereignty and that each side should bear its own costs in respect of site preparation, construction, maintenance and operation of any facilities developed on Diego Garcia. On 25th February 1976 another bilateral agreement was made, authorising construction of a United States Navy support facility. These exchanges of notes were published in the treaty series (No. 15 1967 and No. 19 1976).
614WAIn 1981 the US Government agreed to a UK proposal that any consortium bidding for US-funded construction contracts in Diego Garcia should include at least one British contractor. Eight consortia entered bids and the contract was won by Ramond-Brown and Root-Mowlem. In 1987, the USA agreed to extend this concession to service contracts on Diego Garcia. Agreement was reached in October 1987 and set out in the exchange of letters of 16th November (Treaty Series 60/1988).
The agreement was made in 1981, augmented by the exchange of notes of 1987, ensures a substantial UK participation in any US-funded contract in Diego Garcia.