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HUD 406/1
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CONFIDENTIAL
198
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Mh. Metoren OR
Mr Bertram (OED)
OED ISSUES: HONG KONG
1.
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From:
WR Tomkys
↓
Date:
7 December 1987
Copy:
Mr McLaren
Si3
8112.
Mr Crabbie (Finance Dept)
LAST
PAPER
44
I was grateful for your departmental briefing on estate issues in Hong Kong. I had plenty of opportunity to see accommodation for the Trade Commission, the Joint Liaison Group (in the St John's Building) and staff housing. Hong Kong is expensive. There is a tendency for the staff to be housed in older apartment blocks which are in accessible areas but lack the amenities provided in more modern blocks and are perhaps relatively dated in style. But nothing more than piecemeal adjustment of the estate is indicated for the present and I see no case at Hong Kong prices to seek aggressively to purchase accommodation. If a really good opportunity offers, eg to buy the Senior Trade Commissioner's present house one might consider it on its merits. The Chief Secretary to the Hong Kong Government told me that there might be some senior official accommodation made available in the coming years and this might be attractive to us.
2.
The real problem is that of office and residential accommodation post 1997. At a rough costing the office accommodation is likely to be £10 million or the equivalent in
At today's prices 30 UK-based staff would cost some £750,000 per annum to house. These are large sums and will be difficult to find within our budget unless we can make a successful bid for more resources.
rent.
3. I looked at two existing properties (from the outside) mentioned to me by Mr McLaren, the old French Mission and Beaconsfield House. I discussed our requirements and the problem with more or less reserve with the Senior Trade Commissioner, the Governor, the Chief Secretary, Mr Nigel Rich at Hong Kong Land and a Chinese entrepreneur, Mr Gordon Wu. I have not become an instant expert on a complex problem but my initial impressions from these contacts may be useful.
4.
On the two existing buildings, I believe the old French Mission (which has considerable period" style) would be useful only if it could house all our Mission after 1997. It might offer some 2,000 sq metres of office space but is no doubt awkwardly arranged. Mr Holloway believes that it does not have the image we should wish to project at that time. From the trade viewpoint he has a
This good argument. Beaconsfield House is due to be re-developed. was confirmed by Mr Ford (the Chief Secretary). The Hong Kong Government would be willing to make it a condition of re-development
/that
CONFIDENTIAL