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centrally located accommodation, but it is all in large blocks, which would almost certainly mean joint accommo- dation with the SAR: clearly, this would not be desirable. The Governor strongly supports the view advanced in the PUS' letter that it would not be to our advantage to locate the Consulate-General in HMS Tamar, currently occupied by British Forces. The Services (and, I believe, other Depart- ments) see particular advantage, however, in retaining the main block in the complex (and would argue that a good deal of its surplus space could be taken up with staff accommo- dation).

(b)

Purchase/lease of an existing building

We could purchase or lease office accommodation in an existing or soon-to-be-built commercial development in a central, or near-central, district. We would have to choose our time carefully or the cost might be prohibitively high. The top floors of a tall building would probably suit us best.

(c)

Purpose-built offices

The extraordinarily high cost of any available site and the relatively small size of the building we would wish to put on it rule out our constructing a new building in central Hong Kong. It might, however, be possible to put up purpose-built offices, amenities and some staff accommodation on land already occupied by HMG. The Governor has pointed to the eastern end of the former Victoria Barracks as a good site (and, privately, he favours this option). Such a development of offices and amenities on a dedicated site would have many advantages.

Residential Accommodation

6.

While this is subject to the same need to clear lines with the Chinese authorities, the problems are relatively easier. The Commander British Forces' house might be suitable for the Consul-General: it is at present held by British Forces under a Memorandum of Appropriation. There are alternative houses available, but should none of them prove feasible, other options would be to obtain land on a long leasehold or to rent in the private sector. Some of the staff accommodation requirements could be met by taking over some HKG quarters.

The Next Move

7.

Before OED can do any further work on exploring these accommodation options, we need guidance on the locational preferences, the space requirements and other operational

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/criteria

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