CONFIDENTIAL
HKG are ready to pay in early April, in the new financial year,
but would not cover us for this next year. The same amount would
slip out to 94/95 or later and, we reckon, a further £7M because
HKG are putting a cap on the amount they will seek from LEGCO.
In other
The reason is HKG's wish, on political account to have the
current DCA bill decline before the garrison declines.
words to substitute a profile for payments that does not match
the profile for real costs. They wish to honour the DCA but for
reasons of political force majeure to pay later.
We can understand the HKG's dilemma with LEGCO and public
perceptions on Defence, but we can expect to continue to press
them hard on payments in 1993/94. If some public guidance can be
given on the run-down plan soon, maybe we can hope that HKG can
defend DCA costs better to LEGCO.
Another approach is to try to reduce our own costs before 1994 in
order to reduce the DCA bill in 1993/94. This would be no easy
option, I know, but we asked last week for it to be looked at.
Also we believe the HKG are likely to suggest "savings" to us.
Another matter of current DCA discussion with the HKG concerns
payment for redundancy benefits. I won't expand on this now
unless any member wishes to ask me questions on it.
Where does this leave us? Local attitudes to the cost of the
CONFIDENTIAL
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