Question of a site is primarily a matter for discussion with Hong Kong Government.

WHY DID HMG NOT MAKE ARRANGEMENTS IN 1984 TO RETAIN (OTHER)

BUILDINGS IN UK GOVERNMENT SERVICE?

HMG does not own any property in Hong Kong.

WHY DOES THE GARRISON NOT OWN THE MILITARY ESTATE?

The arrangements for military estate have been covered by successive Defence Costs Agreements between HMG and the Hong Kong Government.

Under these arrangements, Hong Kong Government makes necessary land available to garrison, at no charge or at a nominal rent.

The land is surrendered to Hong Kong Government when no longer needed by garrison, or when needed by Hong Kong Government for other public purposes.

In such circumstances Hong Kong Government is committed to providing any necessary facilities elsewhere in Hong Kong.

WHY WAS A DECISION TO PURCHASE A SITE NOT TAKEN EARLIER WHEN THE PROPERTY MARKET WAS MORE FAVOURABLE?

Always difficult to judge when is best time to buy.

Markets go up and down, and what might have seemed right three or four years ago might not be right now.

In any event, still considering relative costs/merits involved in buying and leasing. Also considering whether all HMG functions should be in one building or dispersed.

Costs involved in building would be very major expenditure:

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