We do not think the specific issues regarding our teaching operation needs to be referred in your letter, although it can be demonstrated that the Council will not be making any savings. We do need to be very clear that the Council will not be able to meet an economic rent at any time. It is not a temporary situation, and it would be unrealistic to expect much change. The Council is prepared to bear the risk of having to meet a commitment to our present cost levels despite an anticipated downturn in our teaching business, but the Council cannot undertake to consider going above the present cost ceiling.
I hope the amendments can be incorporated, and that you agree that they strengthen the basic argument FCO will be putting to the Treasury.
Romesh Gunesekera
Assistant Regional Director East Asia & Pacific
CC. J N Elam CRD