TNAG-2675-FCO40-3872-Hong-Kong-garrison-withdrawal-plan-1993 — Page 48

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SECRET UK EYES A

withdrawal should be made available for gifting, once clearance for

this is granted by MOD GF (Pol)1. Credits and receipts from any

transfer or sale of equipment will be dealt with in accordance with

the DCA.

FUNDING

44. MOD [is discussing with] the HKG the funding of the costs of the

Garrison to June 1997 under the DCA. These discussions will take into

account the financial implications of the conclusions of the 1993

Review. It is hoped that this discussion process will be completed by

the end of 1993, in order that there will be a clear understanding on

the UK and HKG financial liabilities in accordance with the DCA for

the period from FY 94/95 to 30 June 1997. The progress of these

discussions will be reported as necessary, including to the HKSC.

45. There will be no 'through train' for financial matters beyond 30

June 1997. There may be some residual disposal tasks handled by

contractors but it should be assumed for planning purposes that all

major financial business will be completed before 30 June 1997. The

necessary arrangements will need to be settled with the HKG in due

course, in DCA meetings.

46. With regard to the full costs of the Hong Kong presence to 30

June 1997, and the net MOD liability, the baseline for expressing

funding changes resulting from the 1993 Review, and taking into

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SECRET UK EYES A

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