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1988 DCA AND THE FACT THAT THESE ADDITIONAL COSTS WOULD BE INCURRED AS A RESULT OF POLICY DECISIONS MADE BY HMG UNRELATED TO HONG KONG, WE WOULD HAVE TO ANTICIPATE MAJOR POLITICAL DIFFICULTY IN GETTING ADDITIONAL FUNDS APPROVED. THIS WOULD BE PARTICULARLY TRUE IF THE APPROACH HAD TO MADE IN THE RUN UP TO, OR SOON AFTER, THE FIRST DIRECT ELECTIONS TO THE COUNCIL IN SEPTEMBER 1991. INEVITABLY THERE

WOULD BE PRESSING DEMANDS FOR HMG TO PAY THE FULL ADDITIONAL COST.

5. IF YOU WANT TO FLESH OUT ANY OF THE ABOVE YOU COULD CONTACT THE CBF, MAJOR GENERAL PETER DUFFELL, WHO IS NOW IN THE UK. HE CAN BE LOCATED THROUGH LT COL FRASER OF THE LIAISON OFFICE BRIGADE OF GURKHAS (LOBG), TELEPHONE 071-218-4596. HE KNOWS THAT I TALKED TO MINISTERS ON THIS SUBJECT.

WILSON

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