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but they would be reluctant to precipitate a similar
request from the Chinese for a prime (and high-profile)
site of their own.
18. On the second option, space can either be bought
or leased in an existing or planned commercial office
building without undue difficulty. There is a temporary
shortage of space in the market at present but this is
expected to ease early in 1988 when a number of buildings
now under construction will be completed. Land and
office space values depend on demand, which in turn
hinges on financial stability.
Continuing growth cannot
be relied upon and, as 1997 draws nearer, it is likely
that there will be a period of uncertainty during which
prices may fall back. Although from a financial point of
view that might be the time for us to strike a deal, it
is essential to press on with our planning in the
meantime.
19.
When our requirements are more firmly established,
suitable buildings can be identified and, again,
agreement perhaps reached with the owners or developers
to incorporate special facilities for us. The economic
advantage at present lies in buying, if tenure through to
2047 can be assured. The best strategy might be to
acquire suitable premises with a substantial
overprovision based on maximum demand forecasts, to move
into them prior to 1997 some of the sections, and
sub-let surplus space to third parties until required by
the Consulate-General.
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