In the same letter, my correspondent said that he mentioned this possible Dylan/Knopfler tour to one of his friends, who was a member of a local band. The friend said that Knopfler had been in Bearsville, mixing an "Amnesty" album, and that he had fired all of his band except the bass player.
I'm not sure that this is quite correct. My guess is that the band members were under contract. If so, then they may have been members of the band but were not partners in Dire Straits as a business entity. If Mark had decided not to tour for a while then it is understandable that Dire Straits, the business entity, would no longer wish to pay the band. As employees of that business, their services would no longer be required and they could be "fired". If John Illsley, on the other hand, was a legal partner in the business entity that was Dire Straits, then, along with Mark, he would have been the employer and not an employee and thus could not have been "fired" anyway.
You MK fans probably know the "ins and outs" of all this but that is my reading of the letter.
Does it tie in with my previous post, in terms of the date?