CODE 18-77
SS 8/78
CONFIDENTIAL
Reference
Mr Williamson (Hong Kong & General Department K 242
BBC RELAY STATION: HONG KONG
16
Hiere 306/1 RECEIVED MY MO. 51
* Q JUN 1981
DESK OFFICER INDEX
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PA
دراشه
FORTRY
Action Takea
fas 11?
1. We spoke about Mr Clift's minute of 23 June. I attach a table prepared by the BBC at the end of 1980, giving a breakdown of the estimated costs at the two sites which they have in mind. Although they have not revised their figures in detail to take account of cost escalation since then, they now estimate that the total cost at Tsang Tsai would be about £6.8 million.
7
2. What worries me about these estimates are the low figures for acquisition of the land. The BBC's figures are based only on the cost to the FKG of buying out the existing leaseholders at the rate for agricultural use of the land. The implicit assumption is that the HKG would require no more than to be compensated for this amount. If, however, the HKG decided to lease the land to the BBC at commercial rates, the total estimate for the cost of the project could be several million pounds higher.
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3. Following the meeting which Mr Ridley had with Mr Muggeridge, the Managing Director of the BBC External Services, on 23 June, we shall in due course submit to the Secretary of State a draft letter to the Governor of Hong Kong, which will argue the case for an HKG contribution to the cost of the project. (Such a contribution could of course take the form of provision of the land at less than market rates.)
Consequently, we shall not know whether the BBC's estimate of the likely cost to them of the land is realistic until we have had a response from the HKG.
仍
ARF Burgess
26 June 1981
Information Department
CONFIDENTIAL