DRAFT

SECRET UK EYES A

be overloaded with items awaiting disposal. As the rate of disposal

accelerates towards 1997, the problems caused by the time delay in

receiving disposal instructions will be exacerbated.

42. BFHK require authority from Directorate of Sales (Disposals) to

dispose of military equipments by exception. Both the HKG and the

Equipment Managers should identify items they wish to utilise. BFHK

can assist this process by providing a list of equipments that will

become surplus to requirements. All items not identified, by a given

date, for use by the HKG or the Equipment Managers, should then be

assumed to be available for disposal in-Theatre. This should be by

means of sale, unless the HKG consider that for security reasons it

would be undesirable to release equipment locally. Gifting would be

very much the exception and would require the prior agreement of HKG.

Where equipment or stores are sold, the HKG will be credited with

their share of the proceeds of the sale in accordance with the DCA.

This proposal would need to be agreed by the HKG before it could be

applied.

FINANCIAL ASPECTS AND THE DCA

43. The baseline for funding changes resulting from the 1993 Review

will be LTC 93. Details of changes from the agreed LTC 93 provision,

for example manpower numbers and equipment disposals, will be costed

and where necessary entered in LTC 94 as Alternative Assumptions (AA).

AAS will be required from budget areas other than Hong Kong HLB, as

26

SECRET UK EYES A

DRAFT

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