[ME 3ADL]

CONFIDENTIAL

MR RENTON'S VISIT TO HONG KONG (27-31 OCTOBER 1985)

25. BACKGROUND BRIEF: CONSULATE GENERAL

1. Section XI of Annex I to the Joint Declaration states that

the UK may establish a Consulate General in Hong Kong after 1

July 1997. We have already started to consider the physical

arrangements.

2.

The cost of buying an office building

office building in central Hong Kong

big enough for Our purposes together with the necessary residential accommodation would be prohibitive. We estimate

that we will need office accommodation for 150 staff and

residential accommodation for 36 UK based staff. The PUS

therefore approached the Governor during his visit to Hong Kong in June to establish whether the Hong Kong Government might be

prepared

grant US

concessionary suitable a

building on

to

terms. The Governor suggested that HMS Tamar, Headquarters of British Forces in Hong Kong might be suitable. In our view HMS Tamar is much too large, and its military/imperial connotations

would be unfortunate after 1997.

3.

property

from

Legal advice is that it is reasonable for the Chinese to expect that the present and reversionary interests of the Crown in land in Hong Kong will pass to the PRC (or SAR) on 1 July

1997, and that there is therefore по sure way of acquiring a

secure title to representational

the Hong Kong

Government without the cooperation of the PRC. Once we have

identified a suitable building and agreed terms with the Hong Kong Government

to matter

Chinese. Because of its present

present connotations and its future

suitability for the mooring of PRC naval

of PRC naval vessels ? we very much

doubt if the Chinese would

we will need to

put the

agree to Our

the

occupying HMS Tamar,

even if we wanted to.

4. The PUS will be writing to the Governor about this in due

course. There is no need to raise subject with the HKG at this

stage.

CONFIDENTIAL

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