only because there has been an increase in demand in connection with
initial fumishings.
IR ROPE:
I do not understand the increased world-wide demand. I did
not know there was an increase in diplomatic posts in the last few years.
A. I think: the answer is that there has been a longe inonesse in the number
of post hirings. The proportion of post hirings there fumiture issupplied
by the PSA is about 66 per cent.
C. That has cone up significently?
A. Yes.
CHATIAN: In Athens we om only one residential property, and that is the
nice residence of the Ambassador. Would it have been possible to have
bought more probably in the early 1970s before the escalation of prices?
A. (Ir Houlex) The situation has been examined several times since 1970,
and two visits were carried out by PSA surveyors in the first quarter of
1971, and prices were found to average more than 12 times the rent of the
properties investigated. Subsequently, the position vis-c-vis the 4DR
has deteriorated.
FIR SANDELSON: There is another aspect to this affair which rather worries
me. Bearing in mind the restriction on the outlet of capital for purchase
ofproperty abroad, with continuing inflation in these countries it rust
clearly be worth while to acquire properties rather than pay even increasing
and often extortionate rentals. I would have thought that there should be
a Foreign Office policy for house purchase. On the 20 year rent basis we
are paying an annual rent bill of sone 277,000 in Athens, and on a 20
year purchase the capital involved there is C1 million, and in a 40 year
purchase taking into account the inflated position in Athens, it is a total
of £3 million. Clearly you cannot lay out £3 million in one fell swoop
Surely there must be sone progressive policy over the years of acquiring
properties for the benefit of this country in expensive ospitals so that we
cen house our people in the right way with all that that inplies. I recall
questions that we mut to our staff over there in regard to commercial