1.73 In light of the Armouries' analysis at the end of 1998 (paragraph 1.65) and its own review of RAI's published accounts early in 1999, both of which identified that RAI was likely to make continuing losses even with the Clarence Dock development and that therefore RAI was unlikely to continue trading in the medium term, the Department in March 1999 formalised the scope of a joint review by the Armouries and RAI of the options for the museum's future, for completion by June 1999.
1.74 The Armouries and RAI agreed that their common objective was to secure the museum's long term future. However they could not reach an agreed solution for achieving this and, as a result, the appraisal that was produced in July 1999 was not an agreed document. The options considered are summarised in Figure 11.
1.75 The appraisal showed that the alternative of persisting with the current situation, with RAI continuing with its existing responsibilities and the Armouries funding RAI's losses from its own grant-in-aid, was the most expensive option. In contrast, those options involving RAI's receivership and the closure of the museum, in full or in part, (Options 2, 3 and 4) had the lowest cost for the Department and the Armouries.