is that the DCA in its present form will not survive the first skirmish in
Finance Committee.
6.
That is the reason why that the Governor has advised that asking for
supplementary provision for the DCA is out of the question. It would be
counter-productive to try.
7.
However, neither the Governor nor HKG can legally vote large sums of
public money without the approval of Finance Committee. That is the
reason why I have asked persistently that MOD together with other
arms of UKG involved to treat the tax question seriously. We were not
much forward on this occasion. And time is running out. Those involved
in the DCA talks on the Hong Kong side are well intentioned and stand
ready to help. I strongly advise that it would be in the interests of all
concerned if UKG could gracefully settle the question of UK income tax
in a way that it would help contain the HKG portion of the 1994-95
DCA expenditure, including any overhang, within $1350 million. I must
admit that in offering $1350 million for DCA payments in 1994-95, I
have stuck my neck miles out, given the wide publicity of the over 60%
reduction in garrison strength in 1994-95.
1