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CONFIDENTIAL

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

25.

BACKGROUND BRIEF: CONSULATE GENERAL

Section XI of Annex I to the Joint Declaration states that establish a Consulate General in Hong Kong after 1 the physical

1.

the UK may

July 1997.

to We have already started

consider

arrangements.

2. The cost of buying an office building in central Hong Kong

for

big enough

residential

that

we

will

with the

necessary

We

estimate

office

for 150

staff

and

for 36

UK based

staff.

The

PUS

purposes together our

accommodation would be prohibitive.

accommodation need

residential accommodation therefore approached the Governor during his visit to Hong Kong in June to establish whether the Hong Kong Government might be on concessionary prepared

suitable building

to

grant US a

terms. The Governor suggested that HMS Tamar, Headquarters of suitable. In our view HMS British Forces in Hong Kong might be Tamar is much too large, and its military/imperial connotations would be unfortunate after 1997.

3.

Legal advice is that

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

pass

1997, and that there is therefore no sure way of acquiring a

secure

title to representational property

Government without the cooperation of

a suitable

building

and

agreed

from the Hong Kong

of the PRC. Once we have

with the

terms

we will need

to

put

the

matter

to the

identified Hong Kong Government Chinese. Because of its present connotations and its future

suitability for

for the mooring of PRC naval vessels, we very much

even

doubt if

the Chinese would agree

if we wanted to.

to our

occupying HMS Tamar,

4.

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

There is no need

course.

need to raise subject with the HKG at this

stage.

CONFIDENTIAL

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