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3 May 1989]
MINUTES OF EVIDENCE TAKEN BEFORE
Sir PATRICK Wright, KCMG, Mr D BLATHERWICK, OBE, Mr D Moss, CMG, Miss C PESTELL, CMG, Mr G GRIFFITHS AND Mr AR PAUL
[Chairman Conid]
the People's Republic of China. Although that is 1997, just as with Moscow it is not too soon to be planning and working out in what buildings that representation will be housed. Given that we understand that discussions are already going on between yourselves and the Department of Trade and Industry and others about that project, can you tell us whether any expenditure on that under- taking is included in these plans at which we are looking now?
(Sir Patrick Wright) Not yet, Mr Chairman, but we are actively looking at this. Indeed, the new senior British trade commissioner, who is just tak- ing up his post this month, has as one of his first remits the task of helping us to look for a suitable site for the future consulate general. We are very conscious of the fact that we need to take a decision
quite soon for a suitable site for what will certainly need to be a prestigious and well sites consular general. The sums of money involved of course may be very large indeed but we need to take decisions, for instance, on whether we should aim for a "Britannia House", including the British Council, and immigration consular sections, or whether it would be more efficient to disperse the offices and have the consulate general in one area and the British Council somewhere else. We need also to consider our strategy in the context of a booming property market and the relative costs involved in buying or leasing. We are looking at this actively at present, as I say, but no decisions have yet been taken.
Mr Taylor
127. Sir Patrick, you have mentioned there is a booming property market at the moment, and that was in evidence when we were there. I wondered why the decision had not been taken almost immediately after the 1984 joint declaration when it was clear that you were progressing towards 1997 and no longer having any property at all at that point?
(Sir Patrick Wright) I do not know that I can really answer that question except to say that of course the property market was probably even higher then.
128. I think the graph would show that there were fairly opportune times to step in, but I am just making the point.
(Sir Patrick Wright) It is a very fair point. It is always difficult when taking decisions on the property market to know whether it will go up of down. However, I think we have certainly reached a point now where we need to take decisions quite quickly.
129. Secondly on this point, to what extent in taking these decisions are you looking to private industry in Hong Kong for financing projects or joint ventures on properties?
(Sir Patrick Wright) Some commercial de- velopers have expressed an interest in coming into a joint venture with us. That is one of the options at which we shall be looking.
Mr Wells
[Continued
130. What I do not understand is why when you signed the agreement in 1984 you did not make arrangements to retain some of the buildings in British Government service?
(Sir Patrick Wright) I think the answer to that question is that it was not an option open to us. Any property that is not being used for other purposes reverts to the Hong Kong Government. What we are looking at now is the acquisition of property for the British Government in London.
Mr Temple-Morris
131. Is there an absolute boundary between Hong Kong Government property and the UK Government in London? Could not the Kong Kong Government have a fit of generosity and perhaps bestow on the British Government in London a site that, to take up the admirable sugges- tion of Mr Taylor, could be developed? Would that be completely out of kilter or could it happen?
(Sir Patrick Wright) I do not think in fact this is likely. Perhaps I may ask Mr Paul, who is head of our Hong Kong department, whether there is anything that he would like to add.
(Mr Paul) We were in close discussions with the Hong Kong Government about sites and the terms on which sites might be made available. The Hong Kong Government for their part would obviously want to ensure that the Hong Kong interests were taken account of
Mr Taylor: The Government of the People's Republic of China also has a long-term interest in this. Given their interests as expressed to us in the economic prosperity and social stability of Hong Kong prior to 1997, I am quite sure that they would not look amiss if we might discuss with them about property, particularly in view of the deal that they apparently did on the Bank of China.
Chairman: The Committee obviously will wish to return to the issue of Hong Kong and specifically the question of the overseas estate in what is after all one of the great cities of the world and will continue to be so, how it has been handled in the past and how it should be handled in the future. We are grateful for your preliminary comments on that issue.
Mr Wells
132. We want to ask you about the general pol- icy of the Foreign Office in its capital projects on its overseas estate. What progress is being made in improving housing for junior diplomatic staff overseas? I ask this particularly in respect to secretaries because I think it is one of the reasons that you are losing quite a number of secretaries?
(Sir Patrick Wright) Mr Chairman, it is impor- tant for operational effectiveness, security, morale and welfare that all staff abroad should be properly housed. We attach special importance to the needs of junior staff. Several of the present projects are intended specifically to improve junior staff accommodation, for instance, in Luanda and Lusaka. From Luanda I have coincidentally received a letter from our ambassador this morning
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