The Report
of the Iraq Inquiry
63.
An MOD
official advised Mr Watkins on 30 July that in order to
respond to a
Ministerial
decision on operations in Iraq, the MOD would need to submit a
“strategic
estimate”
of additional costs to the Treasury “as soon as practicably
possible”.53
64.
Mr Watkins
forwarded that advice to Mr Hoon with the
comment:
“In
principle, it would be sensible to do more staff work to refine
costs … but,
pending the
PM/Chancellor discussion, it cannot involve financial
commitments.”54
65.
Mr Watkins
replied to the MOD official the following day, confirming that
Mr Hoon
had seen
the advice and reporting:
“The
question of whether funds could be expended in preparation for an
operation
in Iraq is
being considered separately elsewhere. In the meantime, no costs
should
be incurred
… No estimates should be submitted to Treasury officials. I will
minute
further
once the funding position is clearer.”55
66.
The MOD told
the Inquiry that neither Mr Watkins nor any other official
wrote to
provide
further advice on the funding position.56
67.
On 4
September, in advance of a planned meeting between Mr Hoon
and
Mr Brown,
Mr Nye briefed Mr Brown that the MOD officials had done
little work to
refine
their cost estimates for preparing a medium and large‑scale force,
as they were
under no
pressure from Ministers to do so.57
Neither had
the MOD done any work to
assess the
cost of campaign itself. Mr Nye said that it would be useful
for Mr Brown
to
emphasise that the Treasury needed to be involved in some of the
discussions
on military
planning, to enable it “to be kept informed of the context of
financial and
strategic
decisions”.
68.
The Treasury
informed the Inquiry that the meeting between Mr Brown and
Mr Hoon
was
one‑to‑one and no record was taken.58
69.
Mr Watkins
recorded the following day that Mr Hoon had, again, explained
to
Mr Brown
the three options being considered by the UK and alerted him to the
likely
broad order
costs of Package 2.59
53
Minute MOD
[junior official] to PS/Secretary of State [MOD], 30 July 2002,
‘Iraq – Enhancements
Required
for Potential UK Contribution’.
54
Manuscript
comment Watkins to Hoon, 30 July 2002, on Minute MOD
[junior official] to PS/Secretary
of State
[MOD], 30 July 2002, ‘Iraq – Enhancements Required for Potential UK
Contribution’.
55
Minute
Watkins to MOD [junior official], 31 July 2002, ‘Iraq –
Enhancements Required for Possible UK
Contribution’.
56
Email MOD
[junior official] to Iraq Inquiry [junior official], 25 September
2013, ‘Iraq Inquiry: Queries
Relating to
Resourcing – MOD response’.
57
Minute Nye
to Bowman, 4 September 2002, ‘Meeting with Geoff Hoon:
Iraq’.
58
Email
Treasury [junior official] to Iraq Inquiry [junior official], 26
February 2010, [untitled].
59
Minute
Watkins to DG Op Pol, 5 September 2002, ‘Iraq’.
456